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Flashcards in Unit 4 AOS 2 Deck (32)
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1

Leadership in change management

Leadership in change management is the ability to positively influence and motivate employees towards achieving business objectives during transformation.

2

How can managers demonstrate strong leadership in change management?

• Build a shared vision by informing employees of the reasons and benefits of change, as well as the consequences of not changing.

• Provide ongoing communication with clear instructions to employees as they move from current to new practices.

• Provide ongoing support including employee counselling, training, and consultation.

3

Lewins three step model

Lewin’s three step change model is a process which can be used by a business to implement successful change. The three step change model breaks down change into three stages: unfreeze, change, and refreeze. These steps ensure that a business can implement change smoothly and successfully.

4

Lewins three step model. 1. Unfreeze step

The unfreeze step moves a business to a state where stakeholders are prepared to undergo change.

This steps involves challanging beliefs, behaviours and values that currently define the business. A manager should identify the need for change and the inform and persude stakeholders within the business. By explaining the need for change this can then gain stakeholder support for the needed change.

5

Lewins three step model. 2. Change step

The change step moves the business towards the desired state.

This stage is where a business transforms and transitions into the change. Stakeholders such as employees may be fearful of the change where managers must be prepared to support and communicate with employees to successfully grow from this change.

6

Lewins three step model. 3. Refreeze

The refreeze step ensures the change is sustained within the business for the long term.

The refreeze step stops a business from reverting to previous ways of operating. This is
achieved by embedding the change into the business's everyday operations. During this
stage, managers should introduce new policies and job descriptions to establish the new
culture which aligns with the change. Management should also constantly evaluate the
change during this stage through KPI's to ensure that the business is performing as desired.

7

Corporate social responsibility (CSR) when implementing change

When implementing change it is important that businesses act in an ethical and socially responsible manner. To behave in a way that is socially responsible, businesses implementing change should consider these areas:

• Employees: businesses can improve the wellbeing of their employees.

• The general community: businesses can reduce social harm caused by a change and
make a positive impact on society.

• The environment: businesses can contribute to preserving the planet by conducting
the change in an environmentally ethical manner.

8

The advantages and disadvantages of CSR considerations for implementing business change: Business

Advantages:
• Can develop a good brand reputation
which leads to more customers purchasing
goods or services.
• May attract highly skilled employees who
value ethical conduct and are committed
to meeting objectives.

Disadvantages:
• A constant focus on CSR may decrease
productivity levels.

9

The advantages and disadvantages of CSR considerations for implementing buisness change: Employee

Advantages:
• Employees usually prefer to work for
businesses who have ethical practices

Disadvantages:

10

The advantages and disadvantages of CSR considerations for implementing buisness change: Time

Advantages:

Disadvantages:
• It can be time-consuming to address
various CSR considerations.

11

The advantages and disadvantages of CSR considerations for implementing business change: Money

Advantages:
• Customers are willing to pay more for
ethically produced goods or services.

Disadvantages:
• CSR practices can be expensive for a
business to implement.

12

Reviewing KPIs to evaluate the effectiveness of business transformation

It is vital for a business to evaluate performance following a change. Evaluating performance following transformation can identify if the change has been successful or if further changes need to be made. Changes can also be successful but still affect other areas of the business negatively. **redo**

13

Effect of training and related KPI's

Number of customer complaints:
- Improves the quality of a product or service leading to more satisfied customers.

Number of workplace accidents:
- Improves employees’ handling of equipment and promotes safe working practices.

Number of sales:
- Equips employees with the skills needed to communicate the value of products to customers and close sales.

Rate of productivity growth:
- Equips employees with the skills needed to increase efficiency and effectiveness in production

14

Staff training and related KPI's

level of staff turnover:
- Provides staff with a sense of achievement and commitment in fulfilling tasks as their effects are considered as meaningful by the manager.

Rates of staff absenteeism:
- Improves employee willingness to show up to work and complete tasks
as they are given more support, specific goals and rewards

Number of customer complaints:
- Increases employee commitment and willingness to improve quality
of product or service provided to customers.

Rate of productivity growth:
- Improves employee willingness to increase efficiency and effectiveness in production to achieve business objectives.

15

Change in management style or skills and related KPI's

level of staff turnover:
- Less restrictive styles promotes employee involvement in decision
making. Employees then feel more valued and considered in the workplace

Rates of staff absenteeism:
- Less restrictive styles increases employee confidence in completing
tasks. Employees can gain feedback on their performance.

Rate of productivity growth:
- More restrictive styles promotes employees staying on task which
improve business productivity.

Net profit figures:
- More restrictive styles increases the manager’s ability to manage waste, resources and expenses efficiently

16

Increased investment in technology and related KPI's

Number of sales:
- APL, CAD and CAM can improve the quality of products and services and increase consistency.
CAD allows customer involvement in production process. WD provides easier access to business products

Percentage of market share:
-CAD can improve customer willingness to purchase goods due to involvement in the process. WD provides an additional avenue to customers purchasing goods

Rate of productivity growth:
- APL and CAM improves business efficiency and effectiveness within production. WD allows businesses to manage customer demand and reach a larger customer base.

Net profit figures:
- APL, CAM, WD can reduce expenses by reducing labour costs and providing goods and services that match customer demand. CAD can improve sales by designing goods that meet specific customer needs.

17

Improving quality in production and related KPI's

Number of customer complaints:
-Higher quality goods or services increases customer satisfaction.

Number of sales:
-Higher quality goods or services satisfy customers needs and increase
the likelihood of purchases.

Net Profit figures:
- Increased customer satisfaction improves sales.
Reduced expenses due to lower wastage from defective products.


Percentage of market share:
- Increased sales from customers promotes competitive advantage.

18

Initiating lean management techniques and related KPI's

Level of wastage:
- No idle stock as goods are only produced when customer orders are received. Streamlines processes allows for efficient use of outputs.

Percentage of market share:
- The quality and nature of products cater to customer needs and change over time to meet requirements.
Continually aim to maximise product quality and meet customer needs.

Rate of productivity growth:
- Improve efficiency of inputs by producing outputs greater than resources needed.
The steps in production align to reduce any wastage in resources.

Net Profit figures:
- Reduces costs linked to excess inventory. Reduces costs linked to waste as processes are streamlined and effectively used.
Continually aims to improve product quality and reduces costs.

19

Cost cutting and related KPI's

Net profit figures:
- Redeploying resources reduces inefficiencies in the
production process, increasing the net profit margin.

Levels of wastage:
- Reallocating resource for more productive use
reduces the amount of labour, time and goods
wasted during production

Rate of productivity growth:
- Reallocating resources such as labour and capital
will lead to more productive uses of materials

20

Cost cutting

Cost-cutting is the process of reducing business expenses.

21

Redeployment of resources

Redeployment of resources is the reallocation of natural, labour and capital materials to different areas of the business to improve their effectiveness and productivity

22

Redeployment of resources and related KPI's

Net profit figures:
- Redeploying resources reduces ineciencies in the
production process, increasing the net profit margin
as costs are reduced.


Level of wastage:
- Reallocating resource for more productive use
reduces the amount of labour, time and goods
wasted during production

Rate of productivity growth:
- Reallocating resources such as labour and capital
will lead to more productive uses of materials

23

Redeployment of resources and its related KPI's

Net profit figures:
Redeploying resources reduces ineffciencies in the
production process, increasing the net profit margin
as costs are reduced.

Levels of wastage:
Reallocating resource for more productive use
reduces the amount of labour, time and goods
wasted during production

Rate of productivity growth:
Reallocating resources such as labour and capital
will lead to more productive uses of materials

24

Staff training and achieiving KPI's

training employees within the workplace allow the business to operate at a higher performance level which in turns help achieve both business objectives and KPI's

25

Staff motivation and acheiving KPI's

As a buisness aims to achieve KPI's by increasing employee morale and promoting a drive in employees it can then help increase a higher level of focus, increased productivity and overall increased staff morale. This in turn will then be reflected within operations and the achievement of KPI's.

26

Change in management styles or skills and achieving KPI's

As a manager directs and interacts with staff they must adapt those interactions to ensure a produtive workplace. therefore a manager must identify the appropriate styles and skills when interacting with staff. If a manager operates this skills and styles effectively it will aid the achievement of KPIs by ensuring staff morale and motivation is increased and increased performance and productivity.

27

Increased investment in technology and achieving KPI's

Although introducing technology within a business can increase expenses within the short term and affect net profit figures, it can allow a business to increase the efficiency and effectiveness within the workplace. This then allows for the achievement of business KPI's

28

Improving quality in production and achieving KPI's

By increasing the quality of a business products or service it creates an increased sense of value. This inturn can meet customer satisfaction, attract new and loyal customers which in turn can affect business KPI's and the achievement of them.

29

Intiating lean production techniques and achieving KPI's

Initiating lean production techniques (or lean management) is adopting approaches that reduce waste in production while increasing the value of goods to the customer. Lean production techniques can be used by businesses when productivity and business performance is low in order to improve the efficiency and effectiveness of operations.

30

Cost cutting and achieving KPI's

A business will always aim for revenue that is retained as profit to be as large as possible. However, this can be undermined by a large total expense figure. This can lead to poor performance, such as the failure to meet profit benchmarks. To reduce expenses and maximise profitability, managers can implement a cost-cutting strategy.