5.7 Low Risk Strategies

What are Low-risk Strategies? (+ 4 List)

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

What is Communication?

two way communication about upcoming changes and employee feedback, decreasing resistance to change

What is Empowerment?

managers delegating and providing employees with increased responsibility during time of change, developing a sense of ownership, trust and motivation

What is Support? (+ 3 examples)

managers providing employees with assistance as they move through changes eg. counselling, training, time

What are incentives? (+ 3 examples)

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 (4)

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

Disadvantages of Low-risk Strategies (3)

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