Unit 4 Aos 2 Business Management

Change management

The process of implementing strategies that prepare an organisation to undergo a transformation.

Resistance to Change

The natural response of employees to change, often caused by fear, loss of control, or disruption to routines. Management must anticipate this and use strategies like communication, support, and incentives to overcome it.

Leadership in change management

The skill of guiding and motivating employees towards achieving business objectives during periods of transition.

Situational Leadership

The ability of a manager to adapt their management style (e.g., from autocratic to participative) to match the specific needs of the business during different stages of a transition (e.g., using a more directive style in a crisis vs. a consultative style when seeking employee buy-in).

Staff training

The process of improving an employee's skills, knowledge, attitudes, and behaviour to allow them to do their job more efficiently and effectively.

Staff motivation

The drive or desire of employees to perform their work tasks to the best of their ability to achieve business objectives.

Change in management styles or skills

Altering a manager's way of directing staff or their specific competencies to positively impact employee performance and motivation.

Cost cutting

The process of reducing business expenses to improve net profit figures.

Increased investment in technology

The process of allocating business funds toward updated machinery, software, or digital systems to enhance operational precision and productivity.

Improving quality in production

Implementing strategies like quality control or assurance to ensure that a good or service fully meets or exceeds customer expectations.

Initiating lean production techniques

The systematic process of eliminating waste and inefficiencies across the manufacturing or service delivery process to maximise value.

Redeployment of resources

Reallocating natural, labour, or capital resources from one area of the organisation to another to improve overall operational efficiency.

Innovation

The practical implementation of ideas that result in the introduction of new or improved goods or services.

Global sourcing of inputs

A business practice where an organisation acquires its raw materials or operational resources from overseas suppliers.

Overseas manufacture

The process of producing goods or services in a physical location outside of a business's headquarters country.

Global outsourcing

Transferring specific business activities or operational functions to an external, third-party business located in an overseas country.

Corporate culture

The shared values, beliefs, and practices of a business.

Official culture

The values and beliefs that a company is trying to convey to the public, often observed in mission statements, logos, and slogans.

Real culture

The actual values and beliefs present in a company, observable from dress, behaviours, and staff-management interactions.

Leading by example

A strategy to develop real culture where management exemplifies the dress and behaviour expected in the business.

Group training

Delivering company-wide programs so all employees learn expectations and are unified in practising them.

Low-risk strategies

Measured management approaches that gradually encourage employees to accept and participate in a business change.

Communication

A low-risk strategy where managers clearly and respectfully express in advance why and how a business change needs to occur.

Empowerment

A low-risk strategy that involves giving employees the skills, resources, authority, and opportunity to actively participate in the change process.

Support

A broad term for nurturing activities related to understanding employee emotions during a change and providing services to look after them.

Incentives

A low-risk strategy involving offering a financial or non-financial reward if employees demonstrate a desired change behaviour.

High-risk strategies

Autocratic management approaches used to influence employees to quickly accept and follow a business change.

Manipulation

Persuading or coercing an employee to do what you want by withholding the full truth or putting them in a position where they cannot disagree.

Threat

A high-risk strategy involving intimidation where an employer threatens an employee's job or promotion prospects if a change is not carried out.

Three-step Change Model

A systematic process developed by Kurt Lewin that can be used by a business to implement a transition successfully.

Learning Organisation (Senge)

A business that facilitates the learning of its members and continuously transforms itself to be more flexible and adaptive. It relies on five disciplines: Systems thinking, Personal mastery, Mental models, Building shared vision, and Team learning.

Mental models

The assumptions held by individuals and organisations.

Shared Vision

An aspirational description of what an organisation and its members would like to achieve.

Personal Mastery

The discipline of personal growth and learning, aligned with one's values and purpose.

Systems Thinking

The ability to see the "big picture" of the business. It involves understanding that every decision and change has an impact on the entire organisation and its environment, rather than viewing changes as isolated events.

Team Learning

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

Unfreeze step

The first stage of Lewin's model focused on moving a business to a state where stakeholders are prepared to undergo change.

Change step

The second stage of Lewin's model focused on moving a business towards its desired state by introducing new processes or practices.

Refreeze step

The third stage of Lewin's model focused on ensuring a newly implemented change is sustained within a business for the long term.

Stakeholders

Individuals or groups with a vested interest in the operations of a business

Owners

Vested interest in a successful change to increase return on investment

Managers

Vested interest in change to advance their career or expand skills

Employees

Vested interest in change affecting their job security and training

Customers

Vested interest in change modifying product quality or prices

Suppliers

Vested interest in change altering order volumes and contracts

General community

Vested interest in change impacting local employment or the environment

CSR considerations while implementing change

The ethical and sustainable decisions made by a business that go beyond legal obligations to protect stakeholder wellbeing and the environment during a transition

Strengths of CSR during change

Improves corporate reputation which can build brand loyalty and attract high-quality employees who prefer ethical workplaces

Limitations of CSR during change

Can introduce significant financial costs and consume manager time which may delay or complicate the transformation process

Importance of reviewing KPIs after change

Allows a business to measure the success of a transformation and determine if further management strategies are required to achieve objectives