Connors business study Flashcards
(45 cards)
1
Q
Internal Drivers of Change
A
- Owners/ Managers: responsible for future direction of business and implementation of strats
- Employees: their productivity, efficiency, skill level influence performance
- Structure: employees may find structure too rigid, depressing innovation
- Culture: contribute to work environment and perception/ USP
2
Q
External Drivers of Change
A
- Customers: need to respond to consumer needs
- Competitors: reduced competitiveness = reduced revenue as customers shop elsewhere
- Suppliers: must be reliable and provide quality
- Interest groups: pressure from interest groups may prompt change (stakeholder satisfaction)
3
Q
4 Steps of Change management
A
- Planning
- Implementing
- Controlling
- Reviewing
4
Q
Change Management Definition
A
Alteration of strategies, processes or structures in response to internal/ external drivers of change
5
Q
Aim of Change Management
A
To avoid a state of decline by enhancing performance and competitiveness
6
Q
Vision for change (The WHY)
A
- desired future state of business following change
- Explains reason/ need for change
- Motivates by providing a goal
- A common goal provides unity between business functions
- Without vision the business perishes
7
Q
Strategic Planning (The HOW) how will results be achieved?
A
- Content: What needs to change?
- Process: How to achieve the change?
- People: Who will be impacted?
8
Q
Strategic Planning (The HOW) Where can you get input from?
A
- Consultants: offer advice to ensure change is efficient, effective, competitive and satisfies stakeholders. Their advice considers the entire business
- Professional Service Providers (PSP): External specialists who are more accountable for actions. E.g. Lawyers and accountants
9
Q
Lewins Change Management Model (First step)
A
- Unfreeze: Loosen entrenched practices and gather support for change by providing convincing rationale, empowering participation= less resistance
10
Q
Lewins Change Management Model (Second Step)
A
Change: change should be incremental but occur over short time to avoid relapse. strong leadership and communication is essential to manage change and support employees
11
Q
Lewins Change Management Model (Third Step)
A
Refreeze: New ways are solidified, embraced. Review and celebrate the success of the change. sustain it.
12
Q
Force Field Analysis
A
- Equilibrium between driving forces and restraining forces= maintenance of status quo
- Change = driving forces are stronger than restraining forces
- Can be used to evaluate te necessity of change and te forces that need to be overcome
13
Q
Kotters 8 Step model
A
Create a climate for change
1) Create a sense of urgency
2) Form a powerful coalition
3) Create a vision for change
Engage and enable the organisation
4) Communicate the vision
5) Empower action
6) Create quick wins
Implement the change
7) build on the change
8) Make it stick
14
Q
Drivers of change
A
- Corporate culture
- Management styles
- Organisational structures
- Competition
- Legislative compliance
15
Q
Corporate Culture (driver of change)
A
- Culture informs vision for change, as it crystallises what employees/ consumers value
- When implementing change, implications on culture must be considered
16
Q
Management Styles (Driver of Change)
A
Effective management will:
- Communicate
- Liaise
- Advocate
- Coach
- Manage Resistance
Four management styles:
- Autocratic
- Persuasive
- Consultative
- Participative
17
Q
Organisational Structures (Driver of Change)
A
May include changes to employee positions, chain of command or management framework
- Necessitated by expansion or mergers/ acquisitions… must eliminate duplicate roles
18
Q
Competition (Driver of Change)
A
- Competitor changes pricing, advertising, product mix, technology (business must react)
- New entrants raise industry competition
19
Q
Legislative Compliance (Driver of Change)
A
- Consequences of non-compliance- bad PR…
- E.G. change to Fair Work Act
20
Q
Reasons for Resistance to Change and implication
A
- Misunderstanding
- Fear
- Trust
- Poor communication
- Timing
If there is a high resistance, the business will experience a reduction in output.
21
Q
Communication Continuum
A
- Awareness: Make employees conscious of the change
- Understanding: Help them understand the reason for change
- Acceptance: Use negotiation and participation to ensure they agree to the change
- Alignment: Make employees aware management will support them through change
- Communicate: Employees take ownership over implementation of change
22
Q
Managing Resistance to Change (Low Risk)
A
- Communication
- Participation
- Negotiation
23
Q
Managing Resistance to Change (High Risk)
A
- Manipulation
- Threat
24
Q
Communication Advantages+ Disadvantages
A
Advantages:
- Establishing a collaborative environment
- Leaders can motivate the workforce and garner support
Disadvantages:
- Viewed as a one-off or unilateral process
25
Participation Advantages + Disadvantages
Advantage
- When employees can contribute their opinions and their opinions are heard, tey feel empowered, valued
- Improves culture and employee satisfaction
Disadvantages
- Challenging for leaders to involve employees in the change process
- Employees may feel upset if their ideas are not implemented -> this can be mitigates with good communication
26
Negotiation Advantages + Disadvantages
Advantages:
- Relatively easy way to avoid major resistance
Disadvantages:
- Can be an expensive method of avoiding resistance
- Implementing starts can be challenging
- Need to develop the power of persuasion to deal with difficult people
- Could mean dealing with discomfort and tension that comes with change
27
Manipulation Advantages + Disadvantages
Advantage:
- Can be used to quickly overcome resistance
Disadvantage:
- A leader may manipulate change and gain support by only communicating the benefits of a change and not identifying negatives
- Harms morals and corporate culture
- Costly if using incentives to influence people
28
Threat Advantages + Disadvantages
Advantage:
- Leader might resort to threats to overcome resistance when they can't invest time or effort using other tactics
Disadvantage:
- Uses fear
- Stokes resentment even if employees are compliant
- Can impact on corporate culture by harming relationships
- can lead to further resistance and issues such as complaints, grievances and industrial disputes
29
How does Change Impact Managers
- Management style: change may necessitate a more consultative style
- Processes: recruitment process, introduction of technologies
- Structure: New divisions/ Departments within the business= new managers+ job profile
- Employment: redundancy if business downsizes/ outsources
30
How Does Change Impact Employees
- Technology: Employees may need to undergo retraining or redeployment
- Merger or acquisition: culture change and structural change
- New competitors: management may adopt new processes
- Employment: redundancy if business downsizes/ outsources
31
How Does Change Impact Consumers?
Often takes time for consumers to accept change
32
How Does Change Impact Suppliers?
Outsourcing may result in local suppliers losing income and staff
33
The types of stakeholders
- Shareholders/ Owners
- Customers
- Suppliers
- Government
- Media groups
- The public
- Managers
- Interest groups
note: when using Power Interest Grid, identify blockers/ critics and advocates/ supporters in analysis
34
Performance Management Stage 1: Set Objectives
- Connect the employee performance to the change objectives
- Clarify duties and responsibilities associated with the change
- Provide clear direction that links the objectives with the change
35
Performance Management Stage 2: Measure Performance
- Use performance appraisal to measure performance during change
- Use performance appraisal to provide feedback to individuals on their progress
- Assess achievements, strengths and weaknesses of managing change
36
Performance Management Stage 3: Feedback Results
- Link the objectives of the change to the performance results of an employee
- Provide feedback and incentives on the results achieved and show the link to the change objective
- Reward behaviours required for the change to be achieved
37
Performance Management Stage 4: Identify Needs
- Identify the training needed to implement the change
- Identify career development potentials that have resulted due to the change
- Link training and development needs to the objectives of the change
38
Key Performance Indicators (KPIs)
Are quantifiable measurements of success factors. Measurement can assist by:
- Motivating
- Providing guidance towards goal
- Alerting management to risk of resistance
39
Outcomes of Performance Management: Redundancy
- Can occur due to technological change, restructuring, downturn, merger.
- Payouts must be made for departing employees based on employment duration
40
Outcomes of Performance Management: Retraining and Development
Retraining:
- Investment in upskilling to facilitate transformation
- Having more highly skilled employees increases productivity
- Can create positive attitudes towards change
Development:
- Satisfy an employee's need for growth
41
Outcomes of Performance Management: Role of HR Managers
- Provide opportunities for career development
- Discussions with employees about things like: current position, gaps, future, career plan
42
Management Strategies: Finance
Profitability:
- Budget for additional expenses during change
- Industry benchmarks used to set new targets+ forecasts
- periodic revision of plans
Growth:
- Business requirements could change due to new markets
- Strategies to be implemented include: selling assets that are no longer used, inproving cash flow, increasing prices, reducing expenses
43
Management Strategies: HR
The HR manager must dev proactive strats during the change, long term approach taken
44
Management Strategies: Marketing
- Business needs to ensure they r maintaining their competitive advantage during change
- Marketing aims to maximise scale and profits
- 4P's: Product, Place, Price, People
45
Management Strategies: Operations
- During transformation, a business may need to implement strats to ensure operational efficiency.
- May look at following areas of concern: production (new products or services), process (developments in tech to improve operations), quality controls (measuring and improving quality of products and services)
