Business Management U4 AOS 2

Leadership in change management

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

Management strategies to respond to key performance indicators and/or seek new business opportunities

-Staff training

-Staff Motivation

-Change in management styles/skills

-Increased investment in technology

-Improving qualify in production

-Cost cutting

-Initiating lean production techniques

-Redeployement of resources

-Innovation

-Global sourcing of inputs

-Overseas Manufacturer

-Global outsourcing

cost cutting

The process of reducing business expenses

Redeployment of resources

involves reallocating natural, labour, and capital resources to different areas of the business to improve productivity and effectiveness.

Corporate culture and change

Corporate Culture: Shared values and beliefs of a business and its employees

Official: involves the shared views and values that a business aims to achieve, often outlined in a written format

Real Corporate Culture: involves the shared values and beliefs that develop organically within a business, and are practised daily by its employees

Strategies for developing official corporate culture

Shared objectives: publishing/updating a vision/mission statement

Policies: establishing/amending policies and procedures

Training: developing employee training programs

Symbols: setting biz names, logos and slogans to represent a biz as an entity

Uniform: implementing guidlines and regulatons around employee attire

Strategies for developing Real corporate culture

Type of employees: hiring a range of staff from a variety of backgrounds

Workplace environment: changing office layout to reflect desired ways of working

Business rituals: organising regular celebrations of employee contribution to the business

Mgmt Styles: selecting a mgmt style that reflects the biz's environment and aims

Senge's Learning organisation

An organisation that facilitates the growth of its members and continuously transforms itself to adapt to changing environments.

Systems thinking

a management approach that considers the inter-relationship between the parts of a whole system

Mental Models

are existing assumptions and generalisations that must be challenged so that learning and transformation can occur in an organisation

Shared Vision

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

Team learning

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

Personal Mastery

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

Creating a positive culture for change

Senges theory can contribute positively to a businesses culture when:

- a shared vision exists, and employees are motivated to work towards it

-There is an openess to sharing experiences and new ideas to grow as a team

-employees are encouraged to challenge existing limiting mindsets

Low Risk strategies

are measured management approaches that gradually encourage employees to accept and participate in business change

Communication as a low risk strategy

involves managers openly and honestly transferring information to employees, and listening to their feedback so that employees are fully aware of the reasons for, and impacts of an upcoming change.

Empowerment as a low risk strategy

involves managers providing employees with increased responsibility and authority during times of change.

Support as a low risk strategy

Involves managers providing employees with assistance as they move from current to new practices.

Incentives as a low risk strategy

involves managers providing financial or non-financial rewards to encourage employees to support change.

Low risk strategies (ADS)

-Incentives and empowerment can provide employees with opportunity to advance their careers

-Support and communication can effectively reduce employee fear and stress

-Communication empowerment and support can result in a higher chance of being successful in long term, as increased trust and cohesion

Low risk strategies (DISADS)

-Empowerment may result in tasks being carried out in a way tht management did not intend if employees are inexperienced

-incentives could be seen as bribes if not executed properly

-all low risk strategies are not useful in crisis situations, long time to be effective

High risk strategies

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

Manipulation as a high risk strategy

occurs when a manager selectively leaves out relevant information about a change so that it appears to be more favourable or necessary, or makes a change seem more beneficial than it actually is

Threat as a high risk strategy

involves forcing employees to follow a proposed change by stating that they may or will cause harm to them if they fail to do so.

High risk strategies (ADS)

-change is implemented in a way that the manager desired as their is no employee input

-are effective in crisis situations where change must occur rapidly

-initial implementation of high risk can be relatively inexpensive

High risk strategies (DISADS)

-the relationship between management and employees is compromised

-may be low morale in the workplace and employees are more likely to leave or be absent

-employees may be fearful of losing their job and believe they are easily replaceable

Lewin's Three step change model

is a process that can be used by a business to implement change successfully

Unfreeze step

involves moving a business to a state where stakeholders are prepared to undergo change. A business will challenge the beliefs, behaviours and values that currently exist within the business

Change step

involves moving a business towards its desired state. this transforms the businesses practices to meet its new objectives

Refreeze step

involves ensuring a change is sustained within a business for the long term. this prevents a business from reverting back to previous ways of operating

effect of change on owners (POSITIVE EFFECTS)

-Increased ROI

-change may allow for owners to develop stronger interpersonal relationshios

-business may be percieved more positively by employees if implemented correctly

effect of change on owners (NEGATIVE EFFECTS)

-if unsuccessful, business owner may experience personal and financial impliations

-business owner may become overwhelmed and stressed by increased workload and responsibilities associated with business change

-business owner may be resented if employee roles are made redundant or significantly changed, decreasing corporate culture

effect of change on managers (POSITIVE EFFECTS)

-business change can provide opportunities for a manager to develop new skills or advance career

-business may provide a manager with fincancial and non-financial rewards if successful

-manager may be provided with increased authority and responsibility, increasing skills and employability

effect of change on managers (NEGATIVE EFFECTS)

-increased workload = increased stress

-if biz change is unsuccessful, manager my lose their job and financial security

effect of change on employees (POSITIVE EFFECTS)

-employees may be provided with new responsibilities and opportunities for career advancement

-if a biz change is successful, employees may experience improved job and financial security

-employees that have contributed to the implementation of successful change may recieve financail and non-financial rewards

effect of change on employees (NEGATIVE EFFECTS)

-a biz change may require employees to develop complex skills and learn difficult processes, increasing stress

-if a biz change is expected to result in redundancies, employees may fear their job

-biz may need employees to take an increased responsibilities with in the workplace

effect of change on customers (POSITIVE EFFECTS)

-if a change improves the quality of a biz's good or services, may increase customer satisfaction

-customer satisfaction will increase if biz uses CSR

-satisfaction may oncrease if biz offers lower prices

effect of change on customers (NEGATIVE EFFECTS)

- a biz that sources cheaper inputs to reduce biz cost may compromise its quality. decreasing customer satisfaction

-customers may be disatisfied if the change increases prices

-if a biz disconinues or changes a good or service, customer satisfaction may decrease if it fails to meet their needs

effect of change on suppliers (POSITIVE EFFECTS)

supplier demand may increase if a biz requires greater amount of resources

effect of change on suppliers (NEGATIVE EFFECTS)

-if a biz decides to switch to a different supplier or discontinue a product, supplier sales may decrease due to less orders

-biz change may require its suppliers to involantarily adjust their processes to meet new biz demands

effect of change on general community (POSITIVE EFFECTS)

-biz change can create new job opportunities, increasing overall wellbeing of society

-change that reduces waste can reduce the biz's impact on environment. increasing customer satisfaction

-biz change that involves expanding into a new area can increase customer traffic and sales

effect of change in the general community (NEGATIVE EFFECT)

-a change that results in local redundancies may increase unemployement rates, negatively impacting society social wellbeing

-a change involving store closure or relocation, sales or customer trafic may decrease

- change involving switching to an overseas supplier can have a negative impact on the environment

Considering employees (CSR)

managers should address factors that promote staff wellbeing during change, recognising that job loss or role changes can harm financial, social, and mental wellbeing

Considering employees examples (CSR)

-providing extra training and support to employees so they understand their new roles and responsibilities

-offering counselling to help anxiety and fear

-reallocating employees to different roles in the biz

Considering the general community (CSR)

-choosing local suppliers to improve the local economy

-redeploying employees to other roles in the biz

-sourcing materials from businesses that provide employees with fair pay and working conditions

Considering the environment

-introducing and purchasing tech that reduces number of errors, minimising waste

-changing suppliers to minimise carbon emissions

-building a new facility that creates minimal waste and pollution during construction

CSR (ADS)

-biz can develop positive reputation, leading to customers purchasing goods/services

-employees may prefer to work for a biz that has ethical practices

-customers may be willing to pay higher prices for goods/services that are produced in ethical manner

CSR (DISADS)

constant focus on CSR to benefit society and environment may decrease productivity in levels in the completion of biz tasks

can be time consuming to implement CSR practices

CSR practices can be expensive for a business to implement

Reviewing KPI's to evaluate success of change

-analyzing the size and extent of its change

-identifying whether the change has successfullly achievied its objectives

-identifying whether the change has negatively impacted another area