Business Management Unit 4 AOS2

Leadership

The ability to influence and motivate employees to achieve business objectives

Leadership Characteristics during Change

Communication

Demonstrate the need for change

Provide support for those having difficulty adapting

Staff Training

Equipping employees with the knowledge skill and attributes required to perform job effectively

Staff Motivation

The willingness of employees to expend effort and energy in completing tasks

Change In Management Styles

A manager changes the way they redirect communicate with and involve employees (autocratic, consultative etc.)

Cost Cutting

the process of reducing business expenses

Increased investement in technology

allocating resources towards technology to improve productivity, efficiency, accuracy and quality

Improved Quality in Production

Implementing strategies that ensure goods or services consistently meet customer expectations.

Initiating Lean Production Techniques

focuses on minimising waste while maximising efficiency and value.

Redeployment of Resources

Changing the way natural, labour and capital resources are used within the business.

Innovation

the implementation of ideas that result in new or improved products and services

Global Sourcing of Inputs

Acquiring raw materials or resources from overseas suppliers.

Overseas Manufacture

Producing goods in another country.

Global Outsourcing

Contracting overseas businesses to perform business functions.

Corporate culture

The shared values and beliefs of a business and its employees

Official corporate culture

The shared values and beliefs that a business aims to achieve, often outlined in a written format

Real corporate culture

The shared values and beliefs that develop organically within a business, and are practised on a daily basis by its employees

Why change affects corporate culture

Change (new technologies, different work roles, restructuring) can make employees feel uncertain about job security, impacting the business's culture

Benefit of developing positive corporate culture

Can enhance employee and customer interactions, build a favourable business reputation, and improve financial performance

Official culture strategy: vision statement

highlights a business's aspirations and intentions, acting as an example for employees to follow

Official culture strategy: mission statement

outlines the business's purpose and reason for operations

Official culture strategy: policies and procedures

unifies approaches to work and outlines steps for different circumstances

Official culture strategy: employee code of conduct

the business's expectations of employees

Official culture strategy: training programs

ensures employees have the skills to complete work and achieve business goals

Official culture strategy: symbols

Selecting business names, logos, and slogans acts as a means for quick identification and first impressions

Official culture strategy: uniform

Implementing guidelines around employee attire provides identification with work and upholds professional image

Real culture strategy: hiring criteria

Tailoring hiring criteria to specific business needs develops a standard for the type of people the business seeks to hire

Real culture strategy: diverse hiring

Hiring staff from a variety of backgrounds creates a diverse environment with a broad range of perspectives

Real culture strategy: office layout

Changing office layout to reflect desired ways of working encourages collaboration and interaction

Real culture strategy: business rituals (celebrations)

Organising regular celebrations of employee contributions unifies employees and reinforces high work ethics

Real culture strategy: depersonalised feedback

Discussing areas for improvement in which avoids singling out employees

Real culture strategy: management style

Selecting a management style that reflects the business's environment and aims affects management-employee relationships and trust

Learning organisation (definition)

An organisation that facilitates the growth of its members and continuously transforms itself to adapt to changing environments.

Systems Thinking (definition)

A management approach that views a business as a whole system rather than separate departments or functions.

Mental Models (definition)

The assumptions and beliefs that influence how people think and act.

Shared Vision (definition)

A clear and inspiring description of what the organisation aims to achieve in the future.

Personal Mastery (definition)

The ongoing commitment to learning and self-improvement.

Team Learning (definition)

The collective learning that occurs when team members share their knowledge, skills, experiences and insights.

Benefits of a Positive Culture for Change

Encourages Risk-Taking and Innovation, Develops Employee Skills, Increases Employee Motivation

Benefits of implementing Senge's learning organisation

Systems thinking helps employees understand how their role contributes to overall success. Employees can learn from one another and gain multiple perspectives on workplace challenges.

Potential disadvantages of implementing Senge's learning organisation

Cost

Complexity

time

What is employee resistance?

'An attitude or behaviour that reflects a person's unwillingness to support a desired change.'

Communication (definition)

Involves managers openly sharing information about the proposed change with employees.

Empowerment (definition)

Involves giving employees greater responsibility and authority during change.

Support (definition)

Involves providing employees with assistance as they adapt to new ways of working.

Incentives (definition)

Involve providing financial or non-financial rewards to encourage employee support for change.

Benefits of low-risk strategies

Have the potential to create a positive work environment during a period of change. Employees are more likely to accept and adapt to the change.

Limitations of low-risk strategies

Can be time consuming to implement.

May not be suitable for a period of quick change.

Can be costly with training,counselling and incentives.

High-risk strategies (definition)

Autocratic management approaches used to influence employees to quickly adapt and follow a business change.

Manipulation (definition)

Involves influencing employees to support change by providing incomplete, or misleading information.

Threat (definition)

Involves forcing employees to accept change through intimidation or fear of negative consequences.

Benefits of high-risk strategies

Can be used if a quick response to change is needed. Can be used as a last resort if low-risk strategies are ineffective.

Limitations of high-risk strategies

• Can lead to a loss of trust between management and employees

• Can create a toxic work environment

Three Step Change model

A proccess that contains 3 steps that can be used by a business to implement change successfully

Unfreeze

preparing the business for change prior to the actual change taking place.

Change Step

new processes or practices may be introduced to the business.

Refreeze Step

Ensuring a change is sustained within a business for the long term.

Advantages for the Three Step Change Model

• Structured approach to change

• Assist in removing any residual resistance to the change

Disadvantages for the Three Step Change Model

• Refreezing the change takes time

• The three step process can take too long

Considering employees

Involves managers addressing factors that promote staff wellbeing during periods of business change

Considering the general community

Involves a business reducing or eliminating practices that are detrimental o the wellbeing of society

Considering the environment

Involves a business reducing the negative impacts of its activites on the planet

Advantages of CSR Considerations

• Business can develop a positive reputation

• Customer’s may be more inclined to purchase from socially responsible business’s

Disadvantages of CSR Considerations

• A constant focus on CSR may decrease productivity levels

• Time-consuming to address multiple CSR considerations

The evaluation cycle

Establish objectives
Record a baseline
Apply strategy
Analyse results
Results