5.7 low risk strategies

what are low risk strategies + what are they? x 4

management approaches that gradually encourage employees to accept and participate in business change and are likely to generate positive outcomes both in the short and the long term. communication, empowerment, support and incentives

what is communication?

refers to management transferring information about the change to employees.managers should allow two way communication, the greater the sharing of information the greater the level of trust between management and employees

what is empowerment?

refers to involving the employees in the change process, providing them with greater responsibility and decision making power, this develops a sense of ownership, trust and motivation

what is support?

providing employees with assistance in moving from the current state to the new. eg. counselling, training and time. by doing so management can reduce fear and anxiety

what are incentives?

managers providing financial or non financial rewards to encourage employees to support change as they will personally gain from it. eg bonuses, promotions, career advancement opportunities

advantages of low risk strategies

increased trust in business, staff turnover decreases as employees feel valued, two way communication allows more ideas to be put forward, fear and anxiety are more likely to be reduced

disadvantages of low risk

time consuming as all employees are involved, support and incentives can be expensive, not useful in crisis situations