sac 2b

Question 1

kurt Lewin believed..

Answer 1

• that change takes place at many levels within a business. He has suggested that change should take place at a structural or systemic level
• In order for change to take place it has to go through these three steps

Question 2

kurt Lewin 3 step change model

Answer 2

1. unfreeze
2. change
3. refreeze

Question 3

Step 1. Unfreeze

Answer 3

• in order to identify what needs to change, a business needs to identify what types of things need to change and more so employees need to know that support from management is always readily available.
• involves removing resistance to change and motivating and preparing stakeholders to embark on the change
• strong support from upper management

Question 4

Step 2. Change

Answer 4

• Lewin was aware that change is not an event, but rather a process, and he called that process a “transition”
• lines of communication are open so that employees are able to seek guidance on what is taking place as they may be fearful of the change
• Some support, counselling and training systems may need to be implemented to assist with the smooth transition.

Question 5

Step 3. Refreeze

Answer 5

• is about returning the business to a new sense of stability
• It is important that the business consolidates the changes into the culture of the business.
• can be done by rewriting policies, celebrating achievements and more importantly maintaining support and encouragement for all staff as this will eliminate all possible resistance to change.

Question 6

The effect of change on stakeholders

Answer 6

• Stakeholders have an interest in the activities in the business.
• If the activities in the business change then the interest of those stakeholders also change

Question 7

1. Mangers
   Effects
   Change of management style

Answer 7

• A change may require managers to change their management style
• If redundancy results from the change, managers may need to be more consultative in dealing with employees who are facing redundancy

Question 8

1. Mangers
   Effects
   Change of processes

Answer 8

• Change may stem from new technology being introduced into the industry/business
• require managers to alter their recruitment and selection processes

Question 9

1. Mangers
   Effects
   Change of structure

Answer 9

• may necessitate a change in the management structure of the business
• New divisions or departments may open up opportunities for a new manager and new teams

Question 10

1. Mangers
   Effects
   Change of employment

Answer 10

• may result in the downsizing of the business or outsourcing
• result : managers being made redundant as well as employees

Question 11

2. Employees

Answer 11

Often the ones most affected by change

Question 12

2. Employees
   Effects
   Introduction of new technology

Answer 12

Employees will need to undergo retraining or redeployment into other areas of the business

Question 13

2. Employees
   Effects
   Business is taken over by or merges with another business

Answer 13

• The culture and structure of - The business may change
  New uniform, new vision statements, new values, new employees/team members may all come into play as the new entry develops its own identity

Question 14

3. Customers
   Effects
   Customers on board with change

Answer 14

• Customers may not like the change, hoping that the business will revert back to what it was
• Others will embrace the change and may even promote the change to others

Question 15

3. Customers
   Effects
   Backlash from customers

Answer 15

It sometimes takes time for customers to accept the change and recognise there is no doing back

Question 16

4. Suppliers

Answer 16

• Change can bring new methods of production new training programs for employees and hence new suppliers for a business
• this creates opportunities as they gain additional customers for their product/service
• other hand outsourcing may decrease the need for local suppliers

Question 17

5. General community

Answer 17

• businesses are either down sizing or moving overseas

- this is effecting the local community as employees are losing income, reducing their spending

Question 18

6. Shareholders
   Effects
   Effect on Share price

Answer 18

• If a business is affected in a negative manner then the shareholder dividends will go down and they may decide not to invest in the businesses anymore
• however if a business makes positive changes such as reducing expenses and increasing profit the shareholders may benefit from it.

Question 19

CSR Definition:

Answer 19

Involves managing business processes in order to produce an overall positive impact on the community

• offering back to the community
• Should be considered in all policies and procedures

Question 20

Corporate Social Responsibility considerations

Change of supplier

Answer 20

• If supplies are sourced overseas, ensure workers are not exploited, are paid fairly and have decent working conditions
• Ensure suppliers uphold the same social responsibility standards

Question 21

Corporate Social Responsibility considerations

Introducing new technology

Answer 21

• Ensure technology does not add to pollution or create additional waste
• Ensure workers are given the opportunity to retrain and operate technology

Question 22

Corporate Social Responsibility considerations

Downsizing

Answer 22

Employees are kept informed of changes and processes for redundancies (if needed)

Question 23

Corporate Social Responsibility considerations

Merger or takeover

Answer 23

Existing employees are treated appropriately by the new management team and all legal obligations are honoured

Question 24

The impact of CSR on stakeholders

Employees and mangers

Answer 24

• May find that the task and jobs are modified.
• Need to up skill qualifications
• Managers may need to make long and short term decisions

Question 25

The impact of CSR on stakeholders Shareholders and owners

Answer 25

- Development of policies that are socially responsible | - Financial support through initiatives to improve the community

Question 26

The impact of CSR on stakeholders Customers

Answer 26

- May find that they prefer purchasing goods and services from a business that have a CSR outlook - Customer may purchase products where profits are passed on to charities

Question 27

The impact of CSR on stakeholders Suppliers

Answer 27

- Some suppliers may have to change their policies and processes to ensure they can meet the demands of the business - May have to source from elsewhere so that they can meet the businesses CSR priorities

Question 28

The impact of CSR on stakeholders Community

Answer 28

- If the business have a poor record in terms of impact on the environment and do not contribute beyond their core business will find that their reputation will decline and communities won't support them - business will have to work hard to ensure community is aware of the businesses positive doings

Question 29

Advantages and disadvantages of CSR

Answer 29

Advantages - Better business reputation - Benefits society health & welfare - Impact on sustainable future Disadvantages - Financial cost - Diverted time away from core business

Question 30

By reviewing our initial KPIs a business can

Answer 30

- Analyse the size and extent of any transformation - can identify the areas they had the most success in and the ones which require additional effort or time to be achieved - Consider an alternative management strategy if they didn’t achieve the results they were looking for

Question 31

All aspects and functions of a business can be evaluated. These include: Operations management

Answer 31

- If the business has made changes, then it can evaluate these using KPIs such as the rate of productivity growth, level of wastage and efficiency - Reducing waste within a business is also important and can be measured to judge whether a program or initiative has been successful

Question 32

All aspects and functions of a business can be evaluated. These include: Employees

Answer 32

improve the performance of employees, can be measured and assess using KPIs - the number of training days per employee - the level of staff turnover - the rate of absenteeism which will give an indication of the level of staff commitment and motivation to the business

Question 33

All aspects and functions of a business can be evaluated. These include: Financial performance

Answer 33

- Financial KPIs include profit, sales or revenue, and the percentage of market share. - All businesses need to monitor these and for many small businesses the lack of review of financial information is a major problem