BUS U4 AOS2 implementing change

change management

is the process of implementing strategies that prepare an organisation to undergo a transformation

leadership in change management

is the ability to positively influence and motivate employees towards achieving business objectives during a transformation

why is it important for managers to demonstrate leadership during change

it is vital as it instills confidence, clarity and feelings of value in employees

staff training

will improve employee knowledge and skills, their motivation and opportunities for career development

staff motivation

refers to the individual, internal process that directs, energises and sustains a person’s behaviour

changes in management styles or skills

a manager may choose to adjust their management style or skills in order to implement change

increased investment in technology

technology strategies include automated production line, robotics, CAD, CAM, AI, and online services

improve quality of production

quality strategies are QA, QM, and, TQM

cost cutting

focuses on reducing expenses without significantly impacting the overall value of the product

lean production

minimises waste while improving the value of the end product for the customer

redeployment of resources

is the transfer of resources from one area of the business to another so they can be used more efficiently and effectively

redeployment of capital resources

involves a business using its financial assets or equipment for different purposes than originally intended

redeployment of natural resources

a business reusing, recycling, or repurposing its raw materials and is often associated with waste minimisation strategies

redeployment of labour resources

transferring employees to other areas of the business

innovation

occurs when something that is already established is improved upon

global sourcing of inputs

involves a business acquiring raw materials and resources from overseas suppliers

overseas manufacture

a business producing goods or services outside of the country where its headquarters are located

global outsourcing

involves transferring specific business activities to an external business in an overseas country

corporate culture

is the values, beliefs, and behaviours shared by those within a business

define and communicate

allows employees to be aware of the expectations placed on them so they can embrace the desired values and beliefs of the business

lead by example

managers must demonstrate their desired values, to encourage others to follow in the same manner

recruit and select

businesses can ensure during the interview process that all new hires share the same values and beliefs as the business

change management styles

businesses who want to develop a collaborative environment would switch from a more controlling style like autocratic to something more like participative

Senge’s learning organisation

is an organisation that facillitates the growth of its members and continously transforms itself to adapt to changing environments

systems thinking

this principle views the business as an interconnected whole rather than isolated parts

mental models

these are existing beliefs and assumptions individuals hold, this principle focuses on challenging these mindsets to promote learning and transformation

shared vision

an clear and inspiring description of what an organisation and its members would like to achieve

personal mastery

this focuses on individual growth and continous learning aligned with personal values and goals

team learning

the collective learning that occurs when teams share their experience, insights, knowledge, and skills to improve practices

communication

involves managers openly and honestly transferring information to employees and listening to their feedback so that employees are fully aware of the reasons for and the impacts of an upcoming change

empowerment

involves managers providing employees with increased responsibility and authority during times of change

support

involves managers providing employees with assistance as they move from current to new practices

incentives

involves managers providing financial or non financial rewards to encourage employees to support change

manipulation

involves the use of covert tactics to influence employees to support a proposed change

threat

involves forcing employees to follow a proposed change by stating that they may or will cause harm to them if they fail to do so

lewin’s three step change model

is a process that can be used by a business to implement change successfully

unfreeze

involves moving a business to a state where stakeholders are prepared to undergo change

change

involves moving a business towards its desired state, it is where change actually takes place and is implemented

refreeze

involves ensuring a change is sustained within a business for the long term

owners

they often initiate and have the final say on transformation, meaning the outcomes of the change can significantly affect them both financially and personally

managers

during transformation managers lead, support, and implement change which can affect them in multiple ways

employees

are often the most affected stakeholder, with their workplace roles and responsibilities potentially changing significantly during transformation

customers

these changes can affect customers in terms of product quality, pricing, and overall experience

suppliers

change can impact suppliers through potential changes to demand, order volume, or required production methods

general community

can be indirectly affected by business decisions and changes

CSR

is the commitment of a business to go above and beyond their legal obligations to address the wellbeing of employees, customers, the community, and the environment

considering employees during business change eg.

managers can support employee wellbeing through social, financial and mental challenges during change (eg. downsizing, labour reallocation)

considering the community during business change

businesses can minimise practices that will harm the wellbeing of the community

considering the environment during business change

businesses must reduce negative environmental impacts to prevent irreversible harm