Unit 4 AoS 2

Question 1

The importance of leadership in change management

Answer 1

Leadership is the ability to influence and motivate individuals to achieve business objectives. Leadership is important during times of change as it helps stakeholders during this transition and overcome resistance.

Question 2

Leadership qualities

Answer 2

• motivation
• inspiration
• responding to feedback
• supporting or organising training
• coaching, mentoring
• clear communication

Question 3

Management strategies to respond to key performance indicators

Answer 3

• Staff training
• Staff motivation
• Change management styles or management skills
• Increase investment in technology
• Improve quality in production
• Cost cutting
• Initiate lean production techniques
• Redeployment of resources

Question 4

Staff training

Answer 4

Training is focussed on an employees current job and is aimed at improving employees skills, knowledge, attitudes and behaviour to allow employees to do there jobs more efficiently and effectively than before.

• on the job
• off the job

Question 5

Staff training: Impact on KPI’s

Answer 5

• improved productivity
• improved sales
• less workplace accidents
• decreased staff absenteeism and staff turnover (increased satisfaction)

Question 6

Staff motivation

Answer 6

Motivation is concerned with the desire to do things. In a business the manager clearly wants the employees to do the things that will achieve “their” objectives

Question 7

Staff motivation: Impact on KPI’s

Answer 7

• improved productivity growth
• lowered staff absenteeism
• lowered staff turnover rate
• reduced customer complaints

Question 8

Change in management styles or management skills

Answer 8

Management styles
- autocratic
- persuasive
- consultative 
- participative 
- laissez faire
Management skills
- communicating 
- delegating 
- planning
- leading 
- decision-making 
- interpersonal

Question 9

Change in management styles or management skills: Impact on KPI’s

Answer 9

• decreasing the rate of staff turnover
• decreasing the rate of stuff absenteeism
• lower number of customer complaints

Question 10

Increased investment in technology

Answer 10

Technology can be used in numerous ways to improve the business:

• automated production lines
• computer aided design (CAD)
• computer aided manufacture (CAM)
• website development

Question 11

Increased investment in technology: Impact on KPI’s including

Answer 11

• improving the productivity growth
• reduce he level of wastage
• increase net profit (by reducing operating costs)

Question 12

Improving quality in production

Answer 12

Quality relates to goods or services that fully meet customer expectations. Therefore if your product or service has better quality than a rival then you will have a competitive advantage over them.

• quality control
• quality assurance
• total quality management

Question 13

Improving quality in production: Impact on KPI’s including

Answer 13

• increased percentage of market share
• increase the number of sales
• reduces the number of customer complaint
• reduce level of wastage

Question 14

Cost cutting

Answer 14

These are management strategies that focus on reducing expenses. The biggest business expenses are employees, factory expenses, raw materials.

Question 15

Cost cutting: Impact on KPI’s including

Answer 15

• increased net profit
• reduces wastage
• improved productivity growth
• increased sales (if cost savings are passed on to the consumers)

Question 16

Initiating lean production techniques

Answer 16

Lean management involves a systematic process for eliminating waste so the end customer gets the most value from their perspective with fewer resources.

Question 17

Initiating lean production techniques: Impact on KPI’s including

Answer 17

• reduced level of wastage
• increased net profit
• improved products growth
• increased sales and market share

Question 18

Redeployment of resources (natural, labour and capital)

Answer 18

Redeployment is the transfer of resources from one place in the business to another.

1. Natural (timber, water, solar etc) this may involve using existing resources for different purposes
2. Labour (employees) this may involve moving employees off a dangerous production line to be replaces by robots and then moving the employee into a product design department
3. Capital (machinery, buildings) - may involve moving production machinery overseas to take advantage of cheaper labour rates

Question 19

Redeployment of resources: Impact on KPI’s including

Answer 19

• improved productivity growth
• reduced staff turnover
• improved level of wastage

Question 20

Domestic opportunities for business opportunities

Answer 20

Domestic opportunities are where the business is looking to gain more business within their current country of operating.

• multiple branding
• franchising
• developing new products

Question 21

Global opportunities for business opportunities

Answer 21

Global opportunities are where the business is looking to gain more business outside their current country of operations

• exporting goods and services overseas
• developing an online presence
• innovation

Question 22

Multiple branding

Answer 22

Multiple branding is where the business sells multiple brands in the same market

Pros:
- allows customer to have a choice in a wide variety of products
- allows a business to hold larger shelf space
Cons:
- business may receive backlash and customers may feel the business is only after profits.

Question 23

Franchising

Answer 23

Franchising is where a business grants someone the rights to carry out commercial activities using the brand of the business

Pros:
- enables the business to expand while using other peoples money
Cons:
- There is some loss of control and profits are shared between the franchisee and head company

Question 24

Developing new products

Answer 24

Pros:
- increase or capture new sales and market share
Cons:
- time consuming
- financially expensive
- high risk as product may be unsuccessful

Question 25

Exporting overseas

Answer 25

Exporting is where a business sends their goods or services to another country for sale. Pros: - This can open up new markets and greatly increase sales Cons: - There can be extra red tape or taxes involved

Question 26

Developing an online presence

Answer 26

Putting a business online can allow the business to attract new customers in new locations domestically or globally. This can be achieved through building a website to through social media ``` Pros: - This can open up new markets - Sell to a global market Cons: - Can be costly to set up - Need to find new distribution channels ```

Question 27

The learning organisation: Peter Senge Theory

Answer 27

- This theory is associated with businesses that continuously transform themselves by allowing the member of that business to continuously learn from their experiences. - He found that businesses that are more flexible, adaptive and productive will excel during times of rapid change. - It aims to have a culture where people work together at their best and continually learn to work together at their best.

Question 28

Principles of the Learning Organisation (Senge)

Answer 28

1. Mental models 2. Shared vision 3. Personal mastery 4. Systems thinking 5. Team learning

Question 29

Mental models

Answer 29

- are the deeply ingrained assumptions, generalisations and images of how people understand the world. - Employees are encouraged to challenge assumptions and mindsets in order to feels empowered to create something new and better than before

Question 30

Shared vision

Answer 30

- is being able to develop a vision that the people within the business believe in - It is important in motivating the employees to learn as it creates a common goal that provides focus and energy for learning. - When there is genuine vision people excel and learn, not because they are told to, but because they want to.

Question 31

Personal mastery

Answer 31

- where people within the business undertake continual learning. - Individuals are committee to self improvement and becomes a life-long learner - Individual learning is acquired through staff training, development and self reflection.

Question 32

Systems thinking

Answer 32

- the ability to see the big picture rather than see things in isolation - thinking to evaluate business performance as a whole rather than seperate units

Question 33

Team learning

Answer 33

- the process of aligning and developing the capacities of a team to create the results it’s members truly desire. - It places emphasis on the team rather than the individual and the idea that individuals earn from each other and as a group together.

Question 34

Low-risk strategies

Answer 34

- communication - empowerment - incentives - support

Question 35

Communication

Answer 35

being open and honest about the change so that employees fully understand the direction of the business and it’s impact.

Question 36

Empowerment

Answer 36

involving employees in the change process can help get them on board with the change.

Question 37

Support

Answer 37

those that are effected by the change need to be supported through the process

Question 38

Incentives

Answer 38

providing something that encourages employees to embrace the change such as rewarding them if they embrace the desired change.

Question 39

Low- risk strategies advantages and disadvantages

Answer 39

``` Advantages - Preserves employee morale - Maintains commitment to business - Maintains motivation - Reduces resistance Disadvantages - Slower to initiate change - May require additional cost and time to supply support, counselling ect. ```

Question 40

High-risk strategies

Answer 40

- manipulation | - threat

Question 41

Manipulation

Answer 41

Manipulation is the form or persuasion or coercion that forces and employee to do what you want them to do against their will.

Question 42

Threat

Answer 42

forcing employees to embrace the change or receive retribution. It includes threatening their job or promotion prospects if a certain change isn’t carried out.

Question 43

High-risk strategies advantages and disadvantages

Answer 43

Advantages - Ensures change is implemented quickly and matches exactly what the manager required - Useful in crisis situations Disadvantages - Potential for fear, resentment, reaction - Motivation falls - Manager distrust builds - Can actually lead to greater resistance - staff turnover, strike

Question 44

Key principles of the Three Step Change Model (Lewin)

Answer 44

1. Unfreezing: getting people and resources ready and prepared for the business change 2. Changing: Implementing the change 3. Refreezing: Ensuring the change remains for the long term

Question 45

Unfreeze

Answer 45

This first stage is about preparing the business for change before the actual change takes place. For a business this involves removing resistant to change and motivating and preparing stakeholders to embark on the change.

Question 46

Change

Answer 46

In this stage new processes or practices are 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.

Question 47

Refreeze

Answer 47

This stage is about returning the business to a new sense of stability.This may involve anchoring the change and developing ways to sustain the change so that it can remain for the long term.

Question 48

Stakeholders effected by change

Answer 48

- managers - employees - customers - suppliers - general community - shareholders

Question 49

Managers

Answer 49

Managers are those that make decisions on the direction of the business and the strategies used to achieve those objectives.

Question 50

Effect of change on managers

Answer 50

- Change of management style - Change of process that managers need to carry out - Increase/decrease of roles - Loss of employment

Question 51

Employees

Answer 51

Employees are those that work in the business and are often the ones affected the most

Question 52

Effect of change on employees

Answer 52

- loss of employment through downsizing - changes such as new technology can: * alter an employee’s job * improve safety * improve productivity

Question 53

Customers

Answer 53

Customers are those that purchase goods and services from the business

Question 54

Effect of change on customers

Answer 54

+ improved quality or lowered price - stop producing a product - change the product - change how the product is accessed

Question 55

Suppliers

Answer 55

Supplies are businesses that provide resources to a business.

Question 56

Effect of change on suppliers

Answer 56

- a business may decide to operate in a more socially responsible manner, impacting the types of suppliers they deal with - a business may decide to move their operations overseas, and use a different supplier

Question 57

General community

Answer 57

The general community can be impacted, directly and indirectly, by the changes within a business.

Question 58

Effect of change on the general community

Answer 58

- Businesses may decide to take part of their business offshore to reduce costs, which could result in increased unemployment in the local community + Businesses can also have a positive impact if they expand into a new location, and stimulate the local economy in the community

Question 59

Corporate Social Responsibility

Answer 59

refers to the business demonstrating their commitment to the community and the environment when making business decisions. For example businesses demonstrating themselves as good corporate citizens by the means of local fundraising. - takes into account an approach that is both ethical and socially responsible - expresses concern for how practices effect the environment and societies health and welfare - ethical concern for its workforce and their families

Question 60

CSR considerations when making change

Answer 60

- considering the environment - considering the community - considering the workforce

Question 61

Environmental CSR examples

Answer 61

- recycling paper use - using renewable energy - ensuring the supply chain is also behaving in an CSR approach - waste management - reducing a business’s carbon footprint

Question 62

Societies health and welfare CSR examples

Answer 62

- giving non-profit organisations a portion of a business’ proceeds - supporting community education through philanthropic donation of money or equipment - using only fair trade ingredients - making donations of time or money to charities - ensuring the supply chain is also behaving in an CSR approach - sponsoring local events

Question 63

Concern for it’s workforce and their families CSR examples

Answer 63

- providing a flexible work atmosphere for it;s employees - lessening noise pollution form a factory - allowing employees to volunteer their time for other non-profit organisations - implying local workers

Question 64

Applying CSR to a business

Answer 64

- restructuring/downsizing - suppliers - change in technology - impact on the environment

Question 65

Considerations of CSR: restructuring/ downsizing

Answer 65

- When restructuring a business you need to consider the impact on the employees and the community - As much as possible try reducing the amount of job losses Implement strategies to find new employment for the employees who did loose their jobs

Question 66

Considerations of CSR: Suppliers

Answer 66

- Purchasing supplies from local suppliers - They should consider the working conditions of employees in overseas suppliers - They should look to support their suppliers to ensure their ongoing success

Question 67

Considerations of CSR: Change in technology

Answer 67

- support and training should be considered to ensure employees feel confident using the technology - considering employment levels - considering the impact of the technology on the environment

Question 68

Considerations of CSR: impact on the environment

Answer 68

- considering how to minimise pollutants or harming wildlife habitats when making change - implementing change that improves the impact on the environment.

Question 69

The importance of reviewing KPI data

Answer 69

- After any business transformation is important to know whether or not the strategies implemented have been successful - Reviewing KPI data to see the impact the changes have had allows the business to continue on the same path or make adjustments/corrections.

Question 70

Reviewing out KPI's we can;

Answer 70

1. Analyse the size and extent of any transformation 2. 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 3. Consider an alternative management strategy if we didn’t achieve the results we were looking for

Question 71

KPI's

Answer 71

- percentage of market share - net profit figures - rate of productivity growth - number of sales - rates of staff absenteeism - level of staff turnover - level of wastage - number of customer complaints - number of workplace accidents