4.2 managing change Flashcards
Reasons for change in a business
Tech, Employees, Consumers, Legislation, Competitors
Impact of Technology on Business
E-commerce & social media allow businesses to promote & engage with customers worldwide. Increased efficiency in the firm, with systems such as EDI - faster.
Employee needs for change
Employees may require flexibility, e.g., Flexitime or working from home. More varied financial & non-financial rewards.
Changes in consumer tastes
Trends.
Demand for greater choice of goods & services.
Growth in demand for environmentally sustainable products.
Legislation impact on business
Laws such as sugar tax can increase prices for consumers & deter them from buying, leading to more sugar-free drinks. Strict ban on vapes to under 18s may push businesses to target other products.
Competitors’ influence on business
Monitor competitors’ new products, pricing strategies, and marketing tactics.
Reasons employees may resist change
Fear of failure, fear of redundancy, loss of control, low effort, lack of rewards.
Methods to overcome resistance to change
Open communication, provide rewards, provide training, involve employees.
Facilitator and Controller in management
Facilitator = Theory Y - coach staff and empower them to make change, staff are more energised and trusted, Controller = Theory X - one person knows best, staff feel undervalued
Definition of employee empowerment
Freedom to make decisions without consulting management. They can use their skills and knowledge and take ownership of the change process
Methods of empowering employees
Provide training, provide rewards, trust employees, encourage teamwork.
Benefits of employee empowerment
Faster decision making, increased employee motivation- more trust which benefits the esteem needs, increased management time, preparation for promotion
Drawbacks of employee empowerment
Increased errors, reduced control, management resentment, low employee motivation (if they ar unhappy with extra responsibility).
Definition of teamwork
A group of people who work together to achieve a common goal.
Stages in the formation of a team
Forming, Storming, Norming, Performing.
Forming stage of team development
Team members come together for the first time, attempt at building relationships, there is a lack of trust
Storming stage of team development
Conflict may arise as members have different opinions; the team leader must resolve conflicts.
Norming stage of team development
Constructive relationships and ways of working emerge, focus on task
Performing stage of team development
Unity and togetherness, awareness of members strengths
Benefits of teamwork
Employees enjoy work as they are motivated by interdependence - social needs
Improves communication skills which prepares for leadership
Better decision making as there is mutual support and protection
Fewer conflicts
Definition of TQM
Continuously improving quality in all aspects of operations, striving for 100% quality with no defects.
Principles and Benefits of TQM
- Focus on customer, eg through market research - increased sales and customer satisfaction
- Employee empowerment - increased motivation and job satisfaction
- Continuously improving, 0 defects - less wastage and less refunds
- Teamwork - increased creativity and productivity
(FECT)
Drawbacks of TQM
Slow process, high cost, high staff stress.
Impact of technology on business
New products, e-commerce, improved decision making, improved customer service.
