12 BUS Ch 7- Change Management

Question 1

Change

Answer 1

Any alteration in the internal or external environments

Question 2

Organisational change

Answer 2

The adoption of a new idea or behaviour by an organisation

Question 3

Proactive

Answer 3

To initiate change rather than simply react to events

Question 4

Reactive

Answer 4

To wait for change to occur and then respond to it

Question 5

What can poorly managed change result in?

Answer 5

~Employee resistance 
~Tension
~Anxiety
~Lost productivity 
~Unmet objectives

Question 6

What does change require?

Answer 6

~ Responsive management structures

~Strong leadership skills

Question 7

What are the internal sources of change?

Answer 7

1. Management
2. Employees
3. Corporate culture
4. Policies

Question 8

How do the internal factors contribute to change?

Answer 8

1. Management- reviewing processes, staff and systems, implementing new agreements and strategies.
2. Employees- sharing ideas, innovating products, requesting better working conditions.
3. Corporate culture- whether it is welcoming to change or repels it.
4. Policies- development and implementation of new polices, or amending old ones.

Question 9

Sources of change in the Operating environment

Answer 9

1. Customers
2. Competitors
3. Suppliers
4. Interest groups

Question 10

How can factors in the operating environment influence change?

Answer 10

1. Customers- Their preferences and tastes change.
2. Competitors- their activities can determine where the business is situated in the marketplace.
3. Suppliers- their activities can affect supply availability.
4. Interest groups- influential in regards to the business’ products, marketing techniques and operations

Question 11

Recession

Answer 11

A contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow rate of economic growth.

Question 12

Emissions trading scheme

Answer 12

Regulates the buying and selling of permits to emit greenhouse gasses.

Question 13

Sources of change in the macro environment

Answer 13

1. Economic factors
2. Political and legal forces
3. Technological forces
4. Global forces
5. Geographic forces
6. Social forces

Question 14

How do factors in the macro environment influence change?

Answer 14

1. Economic- the cycle of ‘booms and busts’ in the economy can determine business activity.
2. Political and legal- the creation of new laws.
3. Technological- new technology will make a business more competitive.
4. Global- practices that are implemented to assist globalisation.
5. Geographic- strategies in place to manage exports, currency fluctuations, diverse customer base.
6. Social- society’s attitudes and values

Question 15

Force-field analysis

Answer 15

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

Question 16

Driving forces

Answer 16

Forces that support the change

Question 17

Restraining forces

Answer 17

Forces that work against the change

Question 18

Organisational inertia

Answer 18

An unenthusiastic response from management to proposed change

Question 19

Which are the main driving forces within a business?

Answer 19

Those usually in the internal environment

Question 20

What are the restraining forces?

Answer 20

1. Management- hasty decisions, unclear decisions.
2. Employees- worried that they cannot adapt to new procedures, staffing considerations.
3. Time- not enough time, change takes too long and can often be irrelevant to the time once it can be implemented.
4. Competitors- dominant competitors can deter change.
5. Low productivity- change may result in corporate culture disruption, low staff morale, fear of unknown and lack of security.
6. Organisational inertia- staff do not want to move outside their comfort zones, desire a safe and predictable status quo.
7. Legislation- new laws place restrictions on operational practises and procedures.
8. Costs- if they aren’t well informed or calculated correctly.

Question 21

What are the main financial costs of change?

Answer 21

1. Purchasing new equipment.
2. Redundancy payments.
3. Retraining the workforce.
4. Reorganising plant layout.

Question 22

Change management process

Answer 22

The sequence of steps that a manager would follow for the successful implementation and adoption of change.

Question 23

Facilitator

Answer 23

Someone who helps people achieve an objective by providing unobtrusive assistance

Question 24

Kotter’s 8 step change management model

Answer 24

1. Create urgency.
2. Form a powerful coalition.
3. Create a vision for change.
4. Communicate the vision.
5. Remove obstacles.
6. Create short-term wins.
7. Build on the change.
8. Anchor the change in corporate culture.

Question 25

Change agent

Answer 25

A person or group of people who act as catalysts, assuming responsibility for managing the change process

Question 26

What do low-risk strategies rely on to be successful?

Answer 26

``` ~Communication ~Support ~Training ~Negotiation ~Teamwork ```

Question 27

What are some low-risk strategies for reducing resistance to change?

Answer 27

- Providing feedback - Two way, open communication - Allowing employee involvement - Articulating the purpose of the change, what it is, positives and negatives. - Building trust and offering support.

Question 28

What are the benefits of low risk strategies?

Answer 28

1. Open communication builds trust 2. Support can boost the morale of other staff. 3. Good training programs inspire confidence 4. Encouraging negotiation can empower employees to support the change and can build confidence and trust. 5. Allowing employee participation can establish a positive corporate culture.

Question 29

Manipulation

Answer 29

Exerting undue influence over an employee that may be deceptive in order to get them to behave a certain way.

Question 30

Cooptation

Answer 30

The selection of an influential person among the potential resistors to be involved in the development and implementation of the change process.

Question 31

Threat

Answer 31

The use of power to force change resistors to conform by giving them an ultimatum

Question 32

What are the negative effects of using manipulation, cooptation and threat?

Answer 32

It may cause the recipients to submit but may cause more resentment which can lead to future: - industrial dispute - complaints - grievance claims

Question 33

Corporate social responsibility

Answer 33

Managing organisational processes in order to produce an overall positive impact on the community

Question 34

Triple, bottom line

Answer 34

The social, economic and environmental performance of an organisation

Question 35

Ecological sustainability

Answer 35

When economic growth meets the needs of the present population without endangering the ability of future generations to meet their needs

Question 36

Sustainability report

Answer 36

A comprehensive report of what a business had done, and is doing in regard to social issues that affect it

Question 37

Business ethics

Answer 37

The application of moral standards to organisational behaviour

Question 38

Corporate code of conduct

Answer 38

A set of ethical standards for managers and employees to abide by

Question 39

What change management strategies can be put in place in terms of corporate social responsibility?

Answer 39

~Adopting policies of conservation (recycling etc) ~Preparing a sustainability report ~Modifying production processes so that they are ecologically sustainable

Question 40

What change management strategies can be implemented in terms of business ethics?

Answer 40

~encourage honesty and integrity ~Stakeholders dealt with honestly and fairly ~Avoid using misleading or deceptive product descriptions ~Ensure a safe working environment and build trust in employees ~Implement a corporate code of conduct

Question 41

What are some change management strategies in response to technological development?

Answer 41

~Analysis of the effects of new technology ~Offer training and development for employees that need to learn new skills. ~Recruit new employees with necessary skills ~Offer support and manage employees of may be made redundant

Question 42

Leadership

Answer 42

The process of positively influencing and encouraging individuals to set and achieve objectives.

Question 43

What skills should a good leader have?

Answer 43

``` ~Empathy ~Listening skills ~Faith and confidence in employees' abilities ~Cooperation ~Persuasion ~Ability to resolve conflict ~Open mindedness ~Articulation ```

Question 44

Why would employees be more willing to accept change if good leadership is shown?

Answer 44

- They may feel that they can trust their manager. - They may feel supported. - They may feel as if their welfare is being looked after. - Morale and confidence is boosted. - Fears of change are diminished

Question 45

Transformational change

Answer 45

Results in a complete restructure throughout the whole organisation.

Question 46

Incremental change

Answer 46

Minor changes, usually involving only a few employees

Question 47

Structural change

Answer 47

Changes in the organisation's structure

Question 48

Outsourcing

Answer 48

Contracting of some organisational operations to outside suppliers

Question 49

Teamwork

Answer 49

Involves people who interact regularly and coordinate their work towards a common goal.

Question 50

Flexible manufacturing

Answer 50

Production by computer controlled machines that can adapt to various versions of the same operation

Question 51

What are the main structural changes?

Answer 51

1. Outsourcing 2. Flatter organisational structures 3. Work teams

Question 52

Why may an organisation outsource its operations?

Answer 52

~To contain costs | ~Survive in a global marketplace

Question 53

Benefits of outsourcing?

Answer 53

~Lower costs | ~Able to produce goods and services more efficiently and effectively.

Question 54

Limitations of outsourcing?

Answer 54

~Job losses may occur ~New jobs need to be created ~Costly -Redundancy payments, hiring new employees, training new employees

Question 55

Why may an organisation move towards a flatter structure?

Answer 55

~To create a more positive, participative corporate culture. ~To share ideas in a more timely manner. ~To create a more supportive environment. ~To facilitate the means for continuous improvement

Question 56

What are the benefits of an organisation developing work teams?

Answer 56

~Allows organisation to be more flexible and responsive. ~Encourages participation and communication. ~Opportunities to share ideas and be creative. ~Motivates employees to contribute to the organisation.

Question 57

What aspects of an organisation can teamwork change?

Answer 57

~Corporate cultures ~Practises ~Operations ~Productivity levels

Question 58

How can corporate culture be impacted by change?

Answer 58

~Different attitudes, values and mindsets may need to be adopted to satisfy the demands of a change

Question 59

How can change impact Human Resource Management?

Answer 59

~Recruitment and selection processes ~Termination procedures if redundancy occurs ~Training offered ~Performance appraisals and reward programs to reinforce new behaviours. ~Changes to communication methods to facilitate more autonomous and empowered employees. ~Flexible working arrangements to be introduced to attract and maintain skilled employees. ~Clear vision and benefits of change to be communicated

Question 60

What is the impact of change on operations management?

Answer 60

~Refit and reorganised factories and work spaces ~Introduction of flexible manufacturing or other changes to production processes. ~Emphasis on quality assurance within the operations sector. ~improvements in human relations