Unit 4 AOS 2 Flashcards
(14 cards)
Internal sources of change
Corporate culture- a negative corporate culture can have an adverse affect on productivity and competitiveness
Policies- if polices are outdated, inappropriate or non-existed
Management styles- styles that don’t follow maximum productivity and effectiveness
Employees- can demand change if not happy with conditions
Operating sources of change
Costumers- the needs and wants change over time
Suppliers- factors affecting a suppliers ability to provide inputs, price rise, shortage of a product, industrial action
Competitors- must change as required in order to remain competitive
Trade unions- demand change for employees in safety, pay rates and conditions
Macro sources of change
Economic- the state of the economy may force a business to reduce cost, moving production overseas and reduce staff
Legislative pressures- changes in law and government policies
Technological developments- keep up to date to remain competitive
Driving forces
Factors that initiate, encourage and support the change. Driving forces pressure and push the organisation to change
- a positive corporate culture allowing employees to take positive view on change
- participative management style allowing positive relationships
- a clear vision and can plan ahead
- high productivity, can easily modify operations
Retraining forces
Factors that work against change, creating resistance.
- autocratic management style, no trust
- poorly communicated vision, less likely to embrace change
- low levels of productivity affecting profitability
- high levels of workplace accidents
- high levels of staff turnover
- poor morale, change is not accepted or trusted
Organisational inertia
Pace constant, same speed
Kotter’s theory
- Create urgency- inspire people to want to change
- Form a powerful coalition- assemble a group of leaders
- Create a vision for change- clarify how this vision is better then what’s happened in the past
- Communicate the vision- everyone must understand and accept the strategy and work towards achieving the vision
- Remove obstacles- continually check for barriers
- Create short-term wins- have short-term targets motivating staff
- Build on the change- analysis what went right and what needs improving, encourage continuous improvement
- Anchor the change into corporate culture- creating the changed start the norm
Low risk strategies for effective change management
- two-way communication
- participative management style
- use of work teams to implement change
- support for those going through change
- allowing employees to be involved in the change management process
High risk strategies for effective change management
- threatening employees who do not agree or refuse to implement them
- manipulation of a situation
- use of an autocratic management style
The role of leadership
- articulate the organisational vision for the future
- motivate and inspire staff to work towards change
- have effective and clear plans and strategies
- gather the necessary resources
- adapt their behaviour to suit the situation at hand
- communicate their expectations and visions
Organisational change
Organisational change is the adoption of new methods, processes and ideas used within an organisation. Businesses need to be adaptable to new behaviours to be successful. There changes can be caused by internal or external environments.
Technological development
Technological development uses advancements in computer hardware + software, the use of machinery and robotics to increase efficiency + productivity. In many cases businesses use the internet to provide e-commerce as well as programs + apps on devices such as smartphones, iPads and computers within the business, and to connect with customers and suppliers.
Impact of change on the internal environment
Management- managers need to have skills to introduce and develop technology. This include the need to develop training programs, creative thinking skills, and the ability to mange effective teams, introduce changes in polices and re-configure work processes.
Employees- employees need to develop new skills and change work practices in order to work in organisation. Employees also need to become increasingly multi skilled.
Corporate culture- this may change as a result of new technologies. Cultural shifts may occur when applicants are recruited with new skills, experiences and new attitudes that will influence those in the organisation. These new demands may impact on employees and may cause some workers to feel stressed.
Australian post
Pressures for change -communication by email -growth in online shopping -employees -competitors Driving forces -online shopping -digital communication Restraining forces -cost -maintenance of computer systems Performance indicators -number of parcel lockers in Australia -profit, $222 million to $36 million Impact on internal environment -flatter structure -corporate culture -HR management, trained differently -operations management, reducing costs + improving productivity