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Flashcards in U4 AOS2 T2 Deck (70):

what are the objectives of the employees 5

earn an income
good conditions and empowerment
job security
develop skills and knowledge
career advancements


change brings feelings of



the feelings that change brings can lead to 7

Low productivity
Stress and need for counselling
Workers seeking to undermine managers decisions
Work avoidance – increasing absenteeism rates
Levels of staff turnover increasing etc.


4 low risk strategies



why is communication essential for changing organisations 2

By clearly and respectfully expressing in advance, why and how change needs to occur, managers can overcome employee resistance.

The greater the sharing of information during the change process, the greater the level of trust between management and employees.


a consideration for a manager with communication

As communication is a two-way process, leaders and managers also need to ensure that they provide all employees with the means to communicate their feedback, both positive and negative, to those leading the change


how should communication be done 3

Personably and with respect


what is empowerment

Empowerment is management practice of sharing information, rewards, and power with employees so that they can take initiative and make decisions to solve problems and improve service and performance.


how can empowerment assist with change

it gives employees skills, resources, authority, opportunity, motivation, as well holding them responsible and accountable for outcomes of their actions, therefore it will contribute to their performance and satisfaction


why is empowerment better than top-down direction

Top-down direction can lead to mistrust and lack of confidence in this process. Encouraging negotiation processes can empower employees and enhance the support they show and give for the direction of the change.


what is support

Support is a very broad term for all the nurturing activities related to understanding the emotions the employees will feel during the change and providing services to look after them through this period.


examples of support 5

inter-personal skills
Discussion forums


why may support be necessary in change

Business change may result in some positions being terminated, so those likely to have their employment terminated need to be given appropriate support.


what is an incentive in change

This is concerned with giving a reward if the desired change behaviour is demonstrated by the employee. This knowledge that a reward will be generated when an employee performs as requested creates the motivation in the employee to embrace the change.


how to use incentives in change

The trick is in ensuring that the reward is sufficiently closely tied to the change in performance you are desiring and that ways to circumvent the behaviour and still get the reward can’t be found.


examples of incentives 7

Performance incentives
Pay bonuses
Gift Cards
Promotional opportunities
Free vacations
On site health and wellbeing programs
Ensuring managers say thank you- verbal recognition and reward
Employee of the month


what is a change agent

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


advantages of low risk strategies 4

Preserves employee morale
Maintains commitment to business
Maintains motivation
Reduces resistance


disadvantages of low risk strategies

Slower to initiate change
May require additional cost and time to supply; support, counselling etc.


what is manipulation

Manipulation is the form or persuasion or coercion that forces an employee to do what you want them to do against their will. There is a “real art” to manipulating people to do what you want them to do


examples of manipulation 6

Asking people to do tasks in front of others so they have less chance to get out of it- peer pressure
Telling people what they are gaining but disguise what they are losing
Mimic peoples body language to get them to like you when delivering the message
Speak quickly to overwhelm someone into agreeing with you
Chose a time when people are worn down and more likely to agree i.e. at the end of the day
Scare people by exaggerating the truth


threats may involve 4

Threats may involve loss of promotion, transfer, overtime or ultimately, termination


threats can be:

unethical, immoral if not illegal if it forms part of an unfair dismissal claim, but to say that it isn’t sometimes employed discretely would be naive


management style related to threat



advantages of high risk strategies 2

Ensures change is implemented quickly and matches exactly what the manager required
Useful in crisis situations


disadvantages of high risk strategies 4

Potential for fear, resentment, reaction
Motivation falls
Manager distrust builds
Can actually lead to greater resistance –staff turnover, strike


what is kurt lewin's three step model

Kurt Lewin developed a seminal theory on the best approach for a business to manage change. Lewin believed that change occurs at many levels within a business, be it a large-scale or a small business.


what does kurt suggest in the three step model

He suggested that change can occur at the individual level; that is, that each individual within the business is capable of undergoing change.


what are the three steps names



what is unfreezing

Unfreezing the business changes the status quo — the conditions in which the business is currently operating.


the key tasks to be completed in unfreezing are

Survey the business = understand what needs to change
Gain strong support from senior management
Making stakeholders understand why the change = beneficial
challenge current beliefs, values and behaviours = stable future
Remove any obstacles that will impede change


how does unfreezing link with Lewin's force field analysis

for if the driving forces for change outweigh the restraining forces there should be sufficient motivation to embark on a successful change process.


what is the main goal in the unfreezing stage

For a business this stage involves removing resistance to change and motivating and preparing stakeholders to embark on the change.


what is the main objective of the stage of change

With the business in this unfrozen state, with all processes, policies, practices able to be changed and the necessary support in place, management is now able to move the business to the new position; that is, to change what is occurring.


what happens in the stage of change and what are the employees reactions to thus

In this stage new processes or practices may be introduced to the business and it is expected that this will typically be a period of confusion and some natural fear may be evident in the employees.


to counter issues the the stage of change what is needed to be done 3

Some support, counselling and training systems may need to be implemented to assist with the smooth transition.
Try and empower staff to be actively involved
Short term wins may also be celebrated to build on the change process


what is refreezing

the stage where the business cements their new objectives and culture in the workplace


what is refreezing about

This stage is about returning the business to a new sense of stability.


what may refreezing require 4

New policies introduced = reinforce the new culture,
Develop new job descriptions for the new jobs created
Recognising/rewarding employees that have made the change
Celebrating success to reinforce the changes and to help people find “closure” on the change itself.


4 things needed to be done during unfreeze stage

1  Determine what needs to change
2  get support from upper management
3  Create the need for change
4  Manage and understand the doubts and concerns


4 things needed to be done during change stage

1 Communication
2 get rid of rumours
3 Empower action
4 Involve people in the process


4 things needed to be done during refreeze stage

1 carry changes into culture
2 sustain the change
3 support and training
4 Celebrate success!


change effects on a manager 4

change of management styles
change of processes
change of structure
change of employment


4 positives of change for a manager

If the business change =good there will be celebration and accolade
= success linked to financial reward this may also lead to a bonus for them
reevaluation of the management styles and skills they have and have needed to display
The change may have led to new opportunities for them


4 negatives of change for a manager

Substantial business change can come at the expense of high stress
In the wake of change some stakeholders may also have been left worse off and may resent the changes
If the change process wasn’t smooth, long simmering resentment and distrust can reside with the employees
The change may have led to a diminished role or responsibilities for them


eg of change effects for employees 3

introduction of new technology
merges and other businesses
new competitors


5 positives of change for employees

new opportunities and responsibilities
The change may removed boredom and repetitive tasks from their duties
The change may have led to a more successful business = long term job security for the employee
The new positions may require additional training which boosts promotional and employment opportunities
The changes may have led to better employment conditions or bonuses linked to productivity e.g. performance related pay which could make employees better off.


2 negatives of change for employees

The change could have potentially reduced the need for employees or even replaced them completely and led to redundancy, loss of job, loss of income and loss of esteem through technology changes, outsourcing or overseas manufacture etc.
The skills and demands of their new positions may cause some fear and angst requiring support, counselling or re-training


eg of change effects on employees

new product
new location


4 positives of change for customers

As one of the main driving forces for change, customers will hopefully benefit with better goods and services, better focused on their needs
Customers may experience higher quality products
Customers may experience lower prices e.g. air fare wars, oil price wars
Customers may feel happier that corporate social responsibility behaviour has been practiced and there is less wastage, less environmental damage and better conditions for employees from the goods and services they are buying


2 negatives of change for customers

Customers may sometimes feel quality has been sacrificed for price, or visa versa and no longer have the same connection with the new good or service
Customers may feel their brand loyalty has been taken advantage of and change their buying preferences e.g. Victoria Bitter


eg of change in suppliers



1 positive of change for suppliers

• Suppliers may gain additional contracts or volume orders from the host business as they become more successful


3 negatives of change for suppliers

If the change process went badly or the market has changed, the supplier business may feel vulnerable as their fortunes may be tied to the host business e.g. car manufacture in Australia post 2017, and car component manufacturers
Suppliers may have less predictable and more spontaneous reactive orders which they need to respond to e.g. as a result of JIT programs
Big successful businesses may dominate a market and the supplier may feel vulnerable to their demands e.g. milk farmers and supply to major retailers


4 positives of change for the general community

Successful businesses are more likely to employ more workers, reducing the unemployment rates, boosting social wellbeing.
Successful businesses generate more company tax which the government can spend on broader benefits to the community; schools, hospitals, public transport etc.
As businesses become more visible through social media etc. to their change behaviour, businesses are hopefully becoming more socially responsible, leading to less environmental damage, less wastage, less monopoly behaviour
Successful businesses are more likely to make charitable donations to society and broader causes e.g. McDonalds homes for sick families


1 negative of change for general public

Business change can lead to redundancy, damaging unemployment levels, supplier closures, lower community incomes, job prospects and social wellbeing in a community e.g. Geelong area post car manufacturing withdrawal


what is CSR

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


CSR behaviour is today:

CSR behaviour is today an expectation rather than a noble exception During the process of implementing change Corporate Social responsibility should be considered throughout the process.


why is CSR a driving force

CSR = Driving force due to: The desire to be seen as a socially responsible business will often drive businesses to undertake change to improve their profit, but at the same time to do so without further damaging the environment, mistreating employees, suppliers or customers, as well as giving back to the community in which they operate.


ways woolies incorporate CSR management in the environment 3

sustainability goals toward zero waste going to land fill
increasing the recyclability on home brand products
reducing carbon emissions by 10% from 2015's number


ways to incorporate CSR management in Society’s health and welfare 6

woolies earn and learn program, helps getting equipment for schools


ways to incorporate CSR management in the Concern for workforce and families 4

Providing a flexible work atmosphere for its employees
Lessening noise pollution from a factory
Allowing employees to volunteer their time for other non-profit organisations
Employing local workers


what is the triple bottom line

The social, economic and environmental performance of a business.


A triple bottom line measures the company’s:

• economic value

• ‘people account’, which measures the company’s degree of social responsibility

• ‘planet account’, which measures the company’s environmental responsibility.


what is ecological sustainability

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


what is business ethics

The application of moral standards to business behaviour.


why are business ethics important

Businesses want to be seen as responsible corporate citizens, conscious of the high ethical standards expected of them by their customers and society at large.


what is a sustainability report

a comprehensive report of what a business has done, and is doing, with regard to social issues that affect it.


By reviewing our initial KPIs we can

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


importance of KPIs

Review KPI’s to evaluate effectiveness of business transformation
Assess sources of data KPI’s
Consider driving and restraining forces, strategic position and new opportunities
Consider management strategies to respond to KPI’s
Implement management strategy considering Lewin’s Three step change model