Ch14 Managing Change

Question 1

State 5 reasons for change in a business.

Answer 1

Technology, Employees, Consumers, Laws, Competitors

Question 2

Explain change in Technology, Employees, Consumers and Competitors.

Answer 2

Technology:
- CAD, CAM, CIM aiding in quality and speed of production
-E-commerce and social media enable firm to promote and sell goods to wider market
-Email and conferencing online reducing costs and increasing speed of communication.

Employees:
-Change in education and skill levels of employees requiring more flexibility in the workplace
-More varied rewards
-More challenging work

Consumers:
-Complex and dynamic demands
-Increase in demand has to be met to stay profitable
-Changes in consumer tastes
-Demand for specific products like vegan and GF.

Competitors:
Monitor and react to changes introduced by competitors like
-New and improved goods
-New processes to reduce costs
-Competitors growth through expansion

Question 3

State 5 reasons for resistance to change.

Answer 3

•Fear of failure
•Redundancy
•Loss of control
•Lack of rewards
•Laziness

Question 4

How can managers overcome resistance to change?

Answer 4

Open communication:
-Be open with employees about why the change is happening and the consequences of not making the change (Eg, redundancies)

Employee involvement:
-Encourage employees to express opinions on change.
-Gives them sense of ownership

Leading by example:
-Management show staff that they believe in the benefit of the change.

Rewards:
-Give rewards for cooperating with the change. Eg, bonus payment.

Training:
-Ensure employees receive adequate training to adapt to new processes or technology.
-Provide them with skills needed and reduce anxiety around and resistance to change.

Question 5

What is a controller manager?

Answer 5

Management style associated with autocratic leadership and motivational approach of McGregor’s Theory X

Question 6

What is facilitator management

Answer 6

Management style associated with democratic leadership and motivational approach of McGregor’s Theory Y. Used to accept and embrace change in business.

Question 7

DEFINE Employee Empowerment

Answer 7

Management gives employees a certain amount of independence and responsibility for decision making in the business. This enables employees to make decisions on behalf of the business without needing to get permission from management.

Question 8

How can management encourage empowerment?

Answer 8

Investment in training: Ensure that employees have the adequate training and skills to make decisions on behalf of the business.

Rewards: Offer financial and non financial rewards to encourage employees to take on more responsibility.

Trusting employees: Create a culture of trust
where management believes in the abilities and skills of staff.

Control mechanism: Management must be able to monitor empowered staff to ensure that mistakes are identified and corrected quickly.