Business Management Exam Revision

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leadership in change management

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1

leadership in change management

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

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2

methods to expand domestically

  • new locations

  • online sales

  • differentiation

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3

types of resources

  • natural

  • labour

  • capital

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4

everyday

managers respond to key performance indicators ________________

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5

long-term

management strategies are?

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6

true

leadership is essential

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7

triple bottom line

social, economic and environmental performance of a business

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8

global strategy

a detailed plan of how a business can be successful across the world

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9

multiple branding

when a business sells multiple brands among the same market

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10

unfreeze step

the most important step in Lewin’s Three-Step Change Model

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11

global strategies

  • exporting

  • partnerships

  • developing a web presence

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12

empowerment

a low-risk strategy that involves employees in the change process

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13

domestic strategies

  • franchising

  • diversifying products

  • partnership

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14

builds momentum towards change

why is leadership important?

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15

staff training

best management strategy to reduce workplace accidents?

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16

both positive and negative

the effects of business change can be both positive and negative to the various stakeholders

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17

types of stakeholders

  • owners

  • managers

  • employees

  • customers

  • suppliers

  • shareholders

  • the general community

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18

countering fear of change

  • Provide ongoing support to employees

  • Offer training to facilitate understanding of new practices

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19

punishment

threat is forcing employees to accept and follow change by stating that they will face __________

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20

deceptive and incomplete

manipulation is convincing employees to accept and follow change by using ___________________ information

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21

negative effect

although these methods lead to rapid business change, they can have a _________ on future business performance

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22

high levels of employee resistance

high-risk strategies can be implemented by businesses to respond to ____________________ during times where rapid acceptance is required

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types of high-risk strategies

  • Manipulation

  • Threat

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rewards

incentives encourage employees to support change by providing them with __________

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25

fear, stress

support reduces employee resistance by overcoming levels of _________ and __________ towards change

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sense of ownwership

empowerment reduces employee resistance by giving them a _________ towards the change

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27

understand

communication reduces employee resistance by ensuring employees ___________ why change is necessary

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28

supportive and transparent

low-risk strategies reduce levels of employee resistance by fostering a _________________ environment during times of change

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29

implementing communication

  • Reasons for the change

  • Benefits of the change

  • Other important information regarding the change

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30

culture of learning, transformation

the five principles outlined in Senge’s theory can all contribute positively to a business’s _____________ and its willingness to pursue _________

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31

goal of Senge’s learning organisation

  • The organisation is viewed as a whole system, and each employee understands how their role interacts with, is affected by, and can affect, other parts of the organisation.

  • Shared vision exists, and employees are motivated to work towards it.

  • Employees are encouraged to challenge existing limiting mindsets.

  • Employees are afforded opportunities to develop themselves personally in a way that is meaningful to them.

  • There is an openness to sharing experiences and new ideas, to grow as a team

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pre-existing assumptions and beliefs

  • current beliefs

  • behaviours

  • values

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Senge’s learning organisation

  • Systems thinking

  • Mental models

  • Shared vision

  • Personal mastery

  • Team learning

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34

trained employees

__________ can contribute to improvements in business productivity, safety, and the quality of goods and services provided

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35

examples of interest groups

  • Trade unions

  • Consumer groups

  • Specific issue groups

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36

directly relates

a manager’s use of skills _____________ to the management style they have adopted

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37

diminish

lack of staff training can _________ business performance

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38

technology

the application of scientific knowledge to invent new devices, tools, systems, or processes

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39

organisational interia

the tendency for a business to maintain established ways of operating

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40

societal attitudes

the collective values, beliefs, and views of the general public

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41

reasons for globalisation

  • Free trade 

  • Economies of scale 

  • Cultural homogenisation

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42

globalisation

the process by which governments, businesses, and people across the globe are becoming more interconnected, allowing for increased international trade and cultural exchange

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43

legislation

the laws and legal regulations that a business must follow

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44

adapt

businesses must always _______ to stay competitive

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45

competitors

other businesses within the same industry that sell similar goods or services to a business

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46

evaluating the response

  • the final stage in the Force Field Analysis and determines whether the change has been successfully implemented

  • finds out if there is a need for further change and the positive and negative impacts of the change

  • if the change was not successful, it needs to be redone and re-evaluated

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implementing a response

  • After ranking the forces, a business should implement a response dependent on whether driving forces or restraining forces are stronger

  • Includes actions that can be taken to strengthen the driving forces, reduce or eliminate the restraining forces, and/or the actual execution of the change

  • During the actual execution of the change, an action plan that details what needs to be done:

    • Who is responsible

    • The resources required

    • Deadlines for task completion

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48

steps of Lewin’s three step change model

  • Unfreeze

  • Change

  • Refreeze

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49

low levels of wastage

  • positive reputation

  • positively affects CSR

  • high levels of performance

  • extremely efficient and cost-effective production process

  • business that values sustainability

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50

high levels of wastage

  • negative reputation

  • poorly affects CSR

  • poor performance

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51

causes of workplace accidents

  • Old or faulty equipment

  • Poorly trained employees

  • Dangerous nature of work tasks

  • Unsafe working practices

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52

low levels of workplace accidents

  • Comfortable, safe and efficient working environment

  • Positive health and wellbeing

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53

high levels of workplace accidents

  • Unsafe environment

  • Impact staff morale and motivation

  • Increase staff absenteeism and turnover

  • Halt production and decrease efficiency and effectiveness

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54

low level of staff turnover

a ________________ means staff are satisfied and the business is considered as an ‘Employer of Choice’

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55

high level of staff turnover

a ________________ means there is a bad business reputation and lack of experience

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56

low rate of staff absenteeism

_______________ means staff are motivated and have high morale

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57

high rate of staff absenteeism

_______________ means staff are unmotivated and dissatisfied

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58

low

_____ number of customer complaints = customer satisfaction

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59

high

_____ number of customer complaints = customer dissatisfaction

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60

low number of sales

customers are dissatisfied with the business’s products, thus there is a ___________________

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61

high number of sales

customers are satisfied with the business’s products, thus there is a ___________________

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62

types of KPIs

  • percentage of market share

  • net profit figures

  • rate of productivity growth

  • number of sales

  • number of customer complaints

  • rates of staff absenteeism

  • level of staff turnover

  • number of workplace accidents

  • level of wastage

  • number of website hits

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63

low percentage of market share

a __________________ shows that a business has a small share of total industry sales

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64

high percentage of market share

a ________________  indicates a large share of total industry sales

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65

areas KPIs can evaluate

  • Financial performance

  • Quality of interactions with customers

  • Ability to meet expectations of its employees

  • Environmental impacts

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66

stronger

business changes can only be implemented successfully when driving forces are _______ than restraining forces

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67

false

the outcomes of business change are always postive

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68

principles of lean management

  • pull

  • one piece flow

  • takt

  • zero defects

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69

employee empowerment

fostering teamwork and employee participation within the business environment so employees are involved in developing solutions to improving quality

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70

continuous improvement

the process of constantly evaluating the way things are done and identifying methods to achieve a higher standard

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71

customer focus

identifying and fulfilling the customers’ exact needs and wants from a business’s goods or services

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72

features of total quality management

  • Customer focus

  • Continuous improvement

  • Employee empowerment

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73

steps for quality control

  1. Standards of quality are established

  2. Inspections are regularly conducted

  3. A good or service is compared against set standards

  4. A good or service is removed if it does not meet the set standards

  5. The cause of the error is fixed to prevent further errors

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74

robotics

programmable machines that can perform specified tasks

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75

similarities between manufacturing and service businesses

  • Both businesses aim to optimise their operations to produce high quality outputs at a low cost of production

  • Both have to deal with suppliers during the process of managing operations

  • Both can utilise forms of technology in their operations systems

  • Both aim to optimise efficiency and effectiveness in their operations

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76

characteristics of service businesses

  • Production processes are labour-intensive

  • Production and consumption occur simultaneously

  • High degree of customer contact during production as production and consumption occur simultaneously

  • The outputs produced by a service business are intangible

  • The outputs produced by a service business are not able to be stored as inventory

  • Not standardised, but tailored to individual customers needs

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77

characteristics of manufacturing businesses

  • Production processes are capital-intensive

  • Production and consumption occur at different times

  • Low degree of customer contact as consumption is separated from production

  • The outputs produced by a manufacturing business are tangible

  • The outputs produced by a manufacturing business are able to be stored as inventory

  • Can be standardised through mass production

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78

examples of global outsourcing

  • Technology support outsourced to IT firms

  • Finance activities outsourced to accounting firms

  • Operations system outsourced to manufacturing factories for cost savings and quality assurance

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examples of processes

  • Mixing

  • Designing

  • Baking

  • Computing

  • Assembling

  • Constructing

  • Interaction for customers (service businesses)

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80

information (inputs)

how to make the product

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81

time

the efficient use and coordinating resources with appropriate ______ frame limits costs and wastage

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capital equipment

the machinery, equipment, factories and properties necessary

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materials

raw components and parts consumed or converted by the processes

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labour resources

employees and people involved in the processes

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types of inputs

  • labour resources

  • materials

  • capital equipment

  • time

  • information

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improving productivity

  1. Establishing reliable supply chains

  2. Minimisation of wastage and defects

  3. Application of training

  4. Appropriate facilities

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ensure waste is recycled during production

possible operations strategy to fulfil a social need

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88

use technology to design new products

possible operations strategy to fulfil a market need

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89

create a website for customers

possible operations strategy to meet shareholder expectations

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90

check products are not faulty

possible operations strategy to increase market share

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implementing technology

possible operations strategy to make a profit

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92

maximise

the core business objective is to make a profit, therefore, businesses need to _______ efficiency and effectively use resources to produce goods or services at the lowest price possible

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true

operations system needs to be aligned with business objectives

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business objective

a goal a business wants to achieve

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95

productive

as a third party, a mediator assists the conversation by ensuring the discussion is productive

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96

court-like

arbitration occurs in a ________ setting

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97

disadvantages of agreements

  • Can increase inequality in wages compared to employees in other businesses

  • Can be time-consuming as everyone is involved in collective bargaining

  • More costly than awards

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98

advantages of agreements

  • Better relationship between employers and employees

  • May be flexible towards the business

  • Can be represented by their union

  • Receives better wages than awards

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99

requirements for FWC approval of agreements

  • Better wages and conditions than relevant award for employees

  • Mutual agreement documented in writing by employer and employees

  • Compliance with national employment standards set by FWC

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100

collective bargaining

the process of establishing an agreement

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