U4 Ch.14 Managing Change Flashcards
(33 cards)
Reasons for Change in a Business
- Technology
- Employees (need for flexibility)
- Consumers (changing demands)
- Laws (New EU / national)
- Competitors (changes by them)
Change Management
Process to identify and adapt to changes in the business environment
Reasons for employee resistance to change
- Fear of failure (not able to cope with changes)
- Redundancy (machines replacing)
- Loss of control
- Lack of rewards (feel they should be rewarded)
- Laziness
Overcoming Resistance to change
- Open Communication (honest + outline reasons + consequences of not changing)
- Employee Involvement (express opinions + sense of ownership)
- Leading by Example (show belief in benefits of change)
- Rewards
- Training
Controller Manager
Associated w/ autocratic and theory X.
Gives orders, expects obedience. Staff viewed as lazy and use money as motivator to work harder. Train employees only for their duties and no further development as employees don’t want more responsibility. Close supervision and all decisions without consulting staff
Facilitator Manager
Associated w/ democratic and theory Y.
Helps business to accept and embrace changes.
Staff are delegated responsibility for tasks. Both non-/financial rewards. Further training to prepare employes for managerial vacancies in future. Employees trusted to not need constant supervision and empowered to make decisions without consulting management.
Employee Empowerment
Management gives employees a certain amount of independence and responsibility for decision-making in the business. Enables employees to make decisions on behalf of business without needing permission from management
Methods to encourage Empowerment
- Training (have skills to make decisions)
- Rewards (both non-financial)
- Trust (culture of trust)
- Control Mechanism (monitor empowered staff to ensure mistakes identified and corrected)
Benefits of Empowerment
- Faster and better decisions
- Motivation
- Saves time (less supervision)
- Customer service (encouraged to solve issues quickly)
Risks of Empowerment
- Training not adequate (make decisions that damage reputation)
- Management Conflict (managers may not want to give power leading to IR problems)
- Unwanted Responsibilities (employee stress)
- Less supervision (poor decisions)
Employee Participation
Management encouraging staff to actively take part in running and improving the business
Ways to encourage Employee Participation
- Employee Work Councils
- Worker Directors (employees elected by colleagues to sit on board of directors)
- ESPP
Work Councils
EU directive gives employees in business with at least 1,000 staff the right to set up a works council. Representatives elected by employees and gives staff a direct line of communication with senior management. Allows employees to form a common response to any new plans in business.
Importance of Employee Participation
- Motivation
- Improved IR
- Improved Decisions (w/ employee suggestions)
Team definition
Group of people who work together to achieve a common goal or complete a task. Members possess skills, knowledge and experience that help team to achieve their goal
Stages in formation of team
- Forming
- Storming
- Norming
- Performing
- (Adjourning)
- Forming
Team members come together for the first time. Lack of trust can exist. Team leader attempts to build relationships outlines overall objectives
- Storming
Team members test relationships and conflicts frequently arise. Members try to establish their position on the team and act as individuals, resisting other views. Team leader must work hard to manage conflict.
- Norming
When rules have been established for how the team will behave and standards expected. Conflicts have been overcome and trust has developed between members. Roles have been established
- Performing
Team focus on achieving their objectives. They trust each other and work hard to make decisions and solve problems quickly and effectively
Benefits of Teamwork
- Motivation (part of team. Contribute best effort to achieve objectives)
- Less Absenteeism (recognise others depend on them)
- Communication (develop greater interpersonal skills. Ideas shared. Improved Efficiencies)
- Decision-making (knowledge + experience shared)
- Fast task completion (assigned roles)
Quality Assurance (part of TQM)
System put in place by senior management that guarantees detailed systems are in place to govern quality at every stage of production from design to sales
Benefits of TQM
- Sales (focus on consumer needs leads to satisfaction. Business gets reputation for high quality g + s)
- Less Costs (strive for zero defects. Less wastage + refunds)
- Motivation (empowered and trusted to improve quality)
- Teamwork (employees work in teams. Increases productivity and satisfaction making business attractive place to work)
Risks of TQM
- Slow (develop processes)
- Pressure on staff
- High Costs
- Staff resistance (extra effort)
