Business QCAA

Redundancy

When a position is no longer required within an organisation. This means the employee performing the positions is dismissed when the role is no longer required.

What are some reasons that an employees role becomes reduant?

Technological change, restructuring or reorganising, business downturn to low sales, production, and merger or acquisition.

Lewin's Force Field Analysis

Driving forces > Change < Restraining Forces

What is a Consultants Services?

A professional who provides expert advice in a particular area to a business.

What is a professional service?

Providers of expert knowledge in a particular field to a business.

What are the strategies for overcoming resistance to change?

Low Risk: Communication, participation, and negotiation.
High Risk: Manipulation and threats.

Performance Management

A process by which management reviews the overall performance of the business and it's employees to determine how goals can be better reached. 1) set objectives 2) measure performance 3) feedback result 4) identify needs

What are the different management styles?

Autocratic, Persuasive, consultative and participative

What is autocratic?

manager that has total control and ensures everything is completed. Makes all the decision about the change.

What is persuasive?

Manager persuades others to follow and maintains control over the change.

What is consultative?

Consultation with stakeholders and some involvement of stakeholders in the change.

What is participative?

Management and employees make decisions together and participation of all stakeholders in the change process

What are the drivers of change?

Corporate culture, management style, organisational structure, competition and legislative compliance

Management style

Management make decisions about the future direction of a business. Operating and managing a business, communication, liasion, advocate, coach and resistance manager

Competition

A business needs to understand and monitor it's competitions. This includes strengths and weakness ( pricing, advertising, product, technology, new business)

Organisational Structure

The hierarchy within an organisation. It is a system with roles and responsibilities and different levels of management. Changes in ownership structure, operational change, business growth, and economic downturn.

Corporate Style

Shared values, attitudes, beliefs that characterise member of an organisation. 1. asses the current culture 2) revisit the strategic vision of the business 3) communicate again and again 4) lead manage

Legislative compliance

Changes to the law can force a business to implement change. A business needs to comply with legislative requirements. When must change in response if the new law requires it rules, standards, policies, regulations and law)

Kotter's 8 step model

1) Create a sense of urgency 2) form a powerful coalition 3) Create a vision for change 4) communciate the vision 5) empower action 6) create quick wins 7) build on the change 8) make it stick

Create a sense of urgency

Make others aware of the need and urgency of change. This requires and honest and open approach that convinces others of the importance.

What are the strategies is used in step 1 of kotters?

examine market trends and competition, provide evidence that the change is needed and create a swot analysis

Form a powerful coalition

Establish a project team to implement the change. The team should be made up of people with authority, recognition and respect within an organistion.

What are strategies used in step 2 of kotters?

Assemble a team with enough power to lead the change effectively. Attract key leaders who demonstrate enthusiasm commitment. Encourage the group to work together as a team.

Create a vision for change

Establish a vision and direction that will allow them to achieve the goal for change.

What are the strategies used in step 3 of kotters?

Create an achievable vision to help direct the change and develop strategies to achieve the vision.

Communicate the vision

The vision should be shared with all those affected by the change. Involve all stakeholders and provide opportunties for the new vision to be accepted.

What are strategies used in step 4 of kotters?

Use a variety of modes of communication to inform and involves as many people as possible.

Empower Action

It is crucial to empower others to act on the vision and try to remove any obstacles that may negatively impact on the change and the new vision.

What are the strategies used in step 5 of kotters?

Remove obstacles to the change and create a situation that will enable constructive feedback and lots of support from leaders.

Create quick wins

Recognition and rewards should be given throughout the change process. This will demonstrate that contributions have been appreciated and will reinforce the positive aspect of embracing the change.

What are the strategies used for step 6 of kotters?

recognise and reward those involved in achieving the change and create some visible successes as soon as possible

Build on the Change

It is important to consolidate all of the changes that have occurred and continue the process of improvement

What are the strategies used for step 7 of kotters?

Be relentless with instituting change until the vision becomes a reality.

make it stick

Anchor the changes and create a new/ culture. There needs to be a clear statement to show the connection between the change and the success of the organisation.

What are the strategies used for step 8 of kotters?

Communicate clearly the link between the change and the success and reinforce the value of successful change through promotion and other recognition.

Is kotters for structural change or cultural change?

structural change

What is Lewin's change theory?

Unfreeze, change and refreeze

Unfreeze

Preparing the employees to accept the change and adopt. Prepare for the change, determine the change and manage the change.

Change

Embrace the change, and implement it in a short time frame. Implement the change, communicate the change and involve the stakeholders.

Refreeze

Change becomes permanent, needs to be a strong leadership to ensure the employees incorporate the change. Solidfy the change, sustain the change and celebrate the change.

Is Lewin's Change theory, structural or cultural change?

Cultural change

What is a leader?

Leaders lead and bring in the change to the business

What is a manger?

Managers manage the change and keep it on track with the business.

What is change management?

A planned and structured approach that moves a business from it's current state to a desired future state.

What are the reasons to resist change?

unknown, fear, communication, trust, timing

What are the External Operating Environment?

customers, suppliers, competitors

What are the Internal Environment Factor?

owners and managers, employees, organisational structure and organisational culture

Customers

Have a direct influence on a business and the way it operates. Business needs to adapt to the customers needs.

Competitors

Business needs to strive to achieve a competitive edge over their competition in order to achieve market dominance. Being the lowest, cost supplier in an industry, innovative, products or services.

Suppliers

Business is reliant or its suppliers to provide the necessary resources for it to function. If a supplier provides a poor-quality product to a business it may impact on the business reputation.

Owners and Managers

Responsible for implementing policies and procedures of a business. Identifying and influencing change.

Employees

Influence the success of a business (productivity, efficiency and commitment)

Human Resources management strategies

Must have the ability to develop proactive strategies when managing employees through change. Improving employees skill and proficiency levels through training, improving communication levels , building a strong corporate culture, promoting the benefits of the clear vision for change

Organisational culture

System of shared values and beliefs. The culture can impact on a business influence the need for change.

Communication

Clear communication is vital when implementing change in a business.

Participation

Leaders need to involve employees in change initvaties

Negotiation

Communicating with others and compromising in order to avoid disputes.

Manipulation

force the change by offering an incentive

Threat

Threats to those who resist change

What are the financial management strategies?

Growth, profitability, selling assets, minisming cost and improving cash flow

What are the marketing management strategies?

Customers and increasing market share product, price, place, promotion and people

What are the operations management strategies?

Productivity or reducing production cost

What are the impacts of internal stakeholders?

management and employees

What are the impacts of external environment?

customers and suppliers

Impact of change

A business needs to examine the impact of change in order to understand and manage.

Low-risk Strategies for overcoming resistance to change

Communication, participation and negotiation

High risk strategies for overcoming resistance to change

Manipulation and threat

internal environment for drivers of change

corporate culture, management style and organizational structure

operating environment drivers for change

competition

macro-environment for drivers of change

legislative compliance

impact of change on internal stakeholders

management and employees

impact of change on external environment

customers and suppliers

Vision for change and the strategic plan

The vision for change is the why is the business implementing the change and the strategic plan is the how is the change going to be implemented.

Vision for change

a desired or future state in which the organisation will be after a change has been implemented (reason, motivation, and unity)

Strategic planning for change

Define the overall purpose and goal of the business and determine how the results will be achieved. (content, process, and people)

What is force field analysis?

the process of determining and understanding which forces drive and which resist a proposed change

Benefits of a Force Field Analysis

- Businesses are able to weigh up the 'for's and against' and whether the change is worth undertaking
- Allows a business to identify and strengthen the driving forces supporting the change and to take action to reduce/eliminate restraining forces.
- creates a plan of action to implement the change
- Can identify obstacles and actions to put in place to avoid restraining forces preventing it.
- Communicating the proposed change to reduce communication barriers.

What are driving forces?

The forces that support a change

What are restraining forces?

the forces that resist a change

Key performance indicators (KPIs)

measurements that define and measure the progress of an organization toward achieving its objectives.(effectiveness and efficiency) ( strategies, measure and Evaluate)

Outcomes of performance management

Redundancy, Retraining, Development

Business Transformation

Is about outcomes, maximising business efficiency and performance and becoming a leader in the industry

What are the management strategies ?

Financial management, marketing management , operations management and Human Resources management.