4.2 Implementing change

Question 1

Define what is Leadership in change management

Answer 1

is the ability to positively influence, motivate and inspire employees towards achieving business objectives during a transformation

Question 2

why is Leadership essential in change

Answer 2

• Employee’s are more prepared to accept risks involved with change if they feel as though they are listened to and supported

-Effective leader will reduce resistance to change.

Question 3

how can a leader reduce resistance to change.

Answer 3

build a shared vision for the change, to then drive members of a business to work towards successfully initiating the transformation

-Leaders also have the ability to empathise with the situation of others, through interpersonal skills, which will help build positive relationships during this stressful time, in turn reducing resistance to change

Question 4

Leadership in change

What are the 5 management: Skills?

Answer 4

1. Preparation and planning
2. Communication
3. Support
4. Collaboration
5. Accountability

Question 5

Explain Preparation and planning
(leadership skill)

Answer 5

Developing a ‘plan of action’ that outline what the change is, and timelines for implementing the strategies.

helps keep the change on track an allow the leader to easily explain the need for change to stakeholders.

Preparing for change and carrying out planning will involve decision-making, i.e. selecting the best course of action from a range of options.

Question 6

Explain Communication (leadership skill)

Answer 6

All stakeholders will need to be informed about the various challenges facing the business that are acting as forces of change

make use of two-way communication, actively welcoming opinions from stakeholders.

Empathy and good listening skills (interpersonal skill) will assist a leader to address any points of resistance to change.

Question 7

what happens without clear communication?

Answer 7

may be opposition or hesitancy, delaying the change and causing problems for management and other stakeholders.

Question 8

Explain Support
(leadership skill)

Answer 8

provide employees with assistance or services (such as counselling, training or mentoring) to help them cope with the change.

Employees who feel supported and believe that their manager is concerned about their welfare are generally more prepared to accept the risks involved with change.

Question 9

Collaboration (leadership skill)

Answer 9

ensure that a team of people is formed to act as facilitators of change.

Opportunities for other employees should be created to make sure they can also be involved in the change.

People are more likely to accept change when they feel a sense of ownership.

Question 9

Accountability (leadership skill)

Answer 9

a leader will need to be held responsible for when the change is working and when it is not.

Accountability reflects a level of integrity, which should lead to employees trusting management, and vice versa.

Accountability can also drive a commitment and a desire to solve problems so that the business will achieve the best results.

Question 10

management strategies to respond to KPI and/or seek new business opportunities

GLOSS GRIIIC

Answer 10

-global sourcing of inputs

-overseas manufacture

• staff training

-staff motivation

global outsourcing

redeployment of resources (natural, labour and capital)

initiating lean production techniques

-increased investment in technology

• improving quality in production

innovation

• cost cutting

change in management styles or management skills

Question 11

explanation of Staff training

(strategy)

Answer 11

involves employees improving their knowledge and skill set, teaching staff how to do their job efficiently both on and off the job.

Employees who feel that they have access to training are more likely to be motivated and satisfied.

Improve quality of the product/service and thus boost reputation of business.

Question 12

what KPIs does staff training respond to

Answer 12

• Level of staff turnover
• Number of workplace accidents
• Number of customer complaints
• Rate of productivity

Question 13

explanation of Staff motivation

(strategy)

Answer 13

Motivation = what drives employees to apply effort over a sustained period of time

Strategies: support, career advancement, recognition or opportunities for advancement.

Jobs could be redesigned to make work more interesting, or policies could be introduced to support employee motivation.

Committed staff who are enthusiastic and hard-working may support a business in moving into new markets and growing market share.

Question 14

Change in management styles/skills

(strategy)

Answer 14

involves a manager altering the way they direct and communicate with employees. Refers to their behaviour and attitude when making decisions, directing and motivating staff, and implementing plans to achieve business objectives

Styles: autocratic, persuasive, consultative, participative and laissez-faire

Skills: communication, delegation, planning, leadership, decision making, interpersonal

Change = greater employee participation might provide opportunities for a business through improved staff engagement and employee morale. Employees who feel valued and confident in their abilities may support a business in moving into new markets and growing market share.

Question 14

what KPIS Staff motivation responds to

Answer 14

• Level of staff turnover
• Number of customer complaints
• Rate of productivity growth

Question 14

KPIS that change in managment/skills responds to

Answer 14

if change is responding to = net profit figures, number of sales or percentage of market share =autocratic/persuasive style to attempt to quickly rectify the situation.

If change is responding to -staff absenteeism, staff turnover, rate of productivity - may lead to a greater use of styles that provide employees with more freedom and autonomy = consultative/ participative

Question 15

Improving quality in production

Answer 15

implementing processes that increase the perceived value of its good or service.

High quality =product to stand out, appearing different from existing products on the market = increase sales and market share.

Question 16

KPI responded to Improving quality in production

Answer 16

• number of customer complaint
• number of sales
• level of wastage

Question 17

Cost cutting

Answer 17

Cost cutting is the process of reducing business expenses. Managers will utilise cost cutting to decrease unnecessary expenses within a business’s operations, allowing for maximised profits and the achievement of business objectives.

A business will need to examine all of its activities and decide where costs in the production of its good or provision of its service can be cut.
A business may cut costs by reducing direct and indirect costs (or operating at lower cost), using assets more efficiently, or switching suppliers.

Question 18

cost cutting KPI responded to

Answer 18

• net profit figures
• rate of productivity growth
• level of wastage
• number of sales

Question 19

Initiating lean management techniques

Answer 19

Initiating lean production techniques involves a business adopting lean management strategies to systematically reduce waste in all areas of production while also improving customer value (efficiency and effectiveness)

Question 20

Lean principles:

Answer 20

• Pull
• One piece flow
• Takt
• Zero defects

Examples = reducing excess transportation, reducing defects (or errors), avoiding excess motion, avoiding overproduction, avoiding excess inventory, eliminating waiting time and avoiding overprocessing

Question 21

KPIs responded to from initiating lean management

Answer 21

• percentage of market share
• number of sales
• net profit figures
• rate of productivity growth

Question 22

Redeployment of resources

Answer 22

Redeployment of resources involves reallocating natural, labour and capital resources to different areas of the business to improve productivity and effectiveness. - Natural - Labour - Capital

Question 23

KPIs responded to from Redeployment of resources

Answer 23

- level of wastage - rate of productivity growth - level of staff turnover - reduces cost

Question 24

innovation

Answer 24

Innovation is the process of altering and improving or creating new products or procedures. Innovation can be utilised as an opportunity to expand to new markets, meet new customer needs, and improve performance

Question 25

Ways to implement innovation

Answer 25

eliminating waste by streamlining order processing, eliminating bottlenecks in production and reducing machinery and employee idle time developing an innovative workplace by creating a culture where employees initiate new ideas analysing market trends, listening to customers and suppliers, and studying what competitors are doing so that the business can quickly seize opportunities creating an online platform that allows customers to purchase products via the internet

Question 26

inovation KPIs responded to

Answer 26

- percentage of market share - net profit figures - rate of productivity growth - number of sales - level of wastage - number of customer complaints - number of workplace accidents.

Question 27

Global sourcing of inputs

Answer 27

Global sourcing of inputs involves a business acquiring raw materials and resources from overseas suppliers. seeking the most cost-efficient materials and other inputs source inputs from other countries to access resources that are not available domestically

Question 28

Global sourcing of inputs KPI targeted

Answer 28

locate higher quality components or raw materials from other countries - percentage of market share, number of sales, number of customers complaints lower taxes, low trade tariffs - net profit figures

Question 29

Overseas manufacture

Answer 29

Overseas manufacture involves a business producing goods or services outside of the country where its headquarters are located. choose to use this strategy to reduce the costs of labour, while keeping research and development, and design in their country of origin to have control over its operations and maintain quality

Question 30

KPIs overseas manafactoring responds to

Answer 30

reducing costs - net profit figures. higher quality products in higher quantities -percentage of market share, number of sales and number of customer complaints.

Question 31

Global outsourcing

Answer 31

Global outsourcing involves transferring specific business activities to an external business in an overseas country. creates opportunities for the business such as cost savings, improvements to quality and access to operational expertise (an external person or business may have expertise in managing a task or activity that the business does not have)

Question 32

KPIs that global outsourcing responds to

Answer 32

- rate of productivity growth - percentage of market share - number of sales - number of customer complaints

Question 33

what is corporate culture

Answer 33

Corporate culture is the shared values and benefits of a business and its employees. Managers should aim to align a businesses real corporate culture with its official corporate culture.

Question 34

Official corporate culture

Answer 34

Official corporate culture involves the shared views and values that a business aims to achieve, often outlined in a written format.

Question 35

strategy for official corporate culture

Answer 35

Publishing or updating a mission statement. (Shared objectives) Publishing an employee code of conduct. (policies) Implementing guidelines and regulations around employee attire. (uniform)

Question 36

the impact of the strategy Publishing or updating a mission statement. (shared object)

Answer 36

Outlines the business’s purpose and the reason for its operations, showing its aspirations to its employees and the public.

Question 37

inpact of Publishing an employee code of conduct.

Answer 37

Outlines the business’s expectations of its employees as representatives of itself and what it stands for.

Question 38

impact of Implementing guidelines and regulations around employee attire. (uniform)

Answer 38

Provides employees with a means to identify themselves with their work, and upholds the professional image of the business

Question 38

what is Real corporate culture

Answer 38

Real corporate culture involves the shared values and beliefs that develop organically within a business and are practised on a daily basis by its employees

Question 38

what are Strategy for real corporate culture

Answer 38

Hiring a range of staff from a variety of backgrounds. (workplace environment) Changing office layout to reflect the desired ways of working. Tailoring employee hiring criteria to the specific needs of the business. (types of employees)

Question 39

the impacts of the strategy of hiring a range of staff from a variety of backgrounds. (workplace environment)

Answer 39

Creates a diverse business environment with a broad range of perspectives that indicate inclusivity and impartiality.

Question 40

the intact of Changing office layout to reflect the desired ways of working.

Answer 40

Encourages collaboration between employees and greater interaction in the workplace, allowing for positive professional relationships to be formed.

Question 41

the impact of Tailoring employee hiring criteria to the specific needs of the business. (types of employees)

Answer 41

Develops a standard for the type of people that the business seeks to hire to represent itself, such as obtaining employees with appropriate technical skills.

Question 42

An overview of the principles of the learning organisation (SENGE) and the need to create a positive culture for change

Answer 42

A learning organisation is an organisation that facilitates the growth of its members and continuously transforms itself to adapt to changing environments.

Question 43

promotes adaptability of all members through principles of

Answer 43

- systems thinking, mental models, shared vision, team learning, and personal mastery. all five principles or disciplines must be present for a business to be considered a learning organisation.

Question 44

system thinking

Answer 44

systems thinking is the ability to see the big picture, to look beyond what is occurring just within a business.​ - business do not operate in isolation -analyses business as a whole, rather than separate -Managers understand how a change in one area may affect other areas of the business. -recognises that changes outside the business can directly affect its internal operations.

Question 45

mental models

Answer 45

Mental models are ‘deeply ingrained assumptions and generalizations that influence how we understand the world and how we take action Businesses need to be able to examine closely what they do, their systems and processes and then act upon what they learn. - people need to be able to learn new skills and develop new orientations

Question 46

the aim of mental models

Answer 46

move the business in the right direction, which will entail working to go beyond the internal politics that dominate traditional businesses, through openness, honesty and the sharing of responsibility. ​ A business with a more open and positive culture will encourage and promote inquiry and trust, which is likely to support the successful implementation of change.​

Question 47

Building shared vision show the vision/identify it first

Answer 47

shared vision is ‘the capacity to hold a shared picture of the future we seek to create’

Question 48

what will a shared vision foster

Answer 48

genuine commitment and enrolment rather than compliance, leaders must recognise that attempting to dictate the vision may be counterproductive.​ People must come to this shared vision themselves through learning, through a desire to extend themselves and through being innovative.​ The opportunity to talk, share and communicate in a clear and honest manner will reinforce the vision among believers and spread the vision further.​

Question 49

effects of shared vision

Answer 49

- strong and clearly-communicated vision can encourage a unified focus for employees and influence their approach to work activities. -After adopting beliefs of the shared vision, employees become motivated and subsequently align their individual efforts to achieve the business’s vision.

Question 50

personal mastery

Answer 50

Involves the people within a business developing proficiency- the ability to undertake continual learning or development to continually show improvement and movement towards achieving the goal or vision the person has set for themselves.

Question 51

how can personal mastery be achieved

Answer 51

- through training and development, performance management and appraisal, as well as career progression.​

Question 52

how does personal mastery work

Answer 52

as people in the business learn, they will be less resistant to change and may in fact drive change as they feel the change will allow them to further develop their skills and promote the vision they hold for themselves. This will assist the business to change if the vision of the individuals align with the vision of the business.​

Question 53

team learning

Answer 53

the process of aligning and developing the capacities of a team to create the results its members truly desire’ concept builds on the disciplines of personal mastery and shared vision People need to be able to act together. business are able to have a dialogue together, free from bias, then greater learning will occur. Open communication, shared meaning and shared understanding are also much more likely to contribute to a positive and supportive culture that promotes change.

Question 54

strengths of senge’s Learning Organisation​

Answer 54

Being a learning organisation will improve corporate culture, relationships between staff and managers and lead to improved staff motivation​ The business is more likely to improve its competitive edge, especially through achievement of personal mastery​ The business is more likely to successfully implement change, as it can reduce resistance to change and organisational inertia

Question 54

disadvantages of senge’s Learning Organisation​

Answer 54

Costly to implement – eg. staff will need to be trained, meaning they will be taken away from regular duties in the short term​ Time needs to be allocated for team meetings and discussions, which may lower productivity

Question 55

define low risk strategies

Answer 55

they are considered low-risk because their use is likely to generate positive outcomes, both in the short-term and also in the longer-term. Low-risk strategies tend to seek small and incremental changes, and involve employees more in the process of change.

Question 55

what does communication low risk strategy involve

Answer 55

- transferring information about the change to employees -reasons for change and its impact, as well as timelines. -comunication involves their feedback, both positive and negative, to those leading the change.

Question 55

Communication as a low-risk strategy

Answer 55

is a 2 way process of sharing information from managers to employees and vice versa (open line communication)

Question 55

low rick strategies to overcome employee resistance

Answer 55

- communication - empowerment - support - incentives

Question 56

Advantages of communication

Answer 56

employees feel valued​ Harness trust and create positive culture communication provides opportunities for employees to put forward ideas.

Question 57

disadvantages of communication

Answer 57

time consuming - increase the length of change​ must be done in a clear way otherwise confusion might occur

Question 58

define  Empowerment a low risk strategy

Answer 58

empowerment refers to involving employees in the change process, providing them with greater responsibility and decision-making power

Question 59

advantages of empowerment -low risk strategy

Answer 59

Giving all employees the opportunity to participate allows everyone to ‘buy in’ to the process. Create ownership which act as motivator​ Encourage confidence in change

Question 60

disadvantages of empowerment -low risk strategy

Answer 60

Lack of expertise in the decision making may increase business risk​ Not all employees want to participate

Question 61

 Support - low risk strategy

Answer 61

providing employees with assistance in moving from the current state to the new. eg. counselling, training (supporting a change with new learning)

Question 61

advantages of support

Answer 61

management may be able to reduce fear and anxiety. Increase security and therefore morale

Question 61

negatives of support

Answer 61

can be costly (counselling or training) or time consuming​

Question 61

Incentive 

Answer 61

any financial or non-financial rewards provided to employees to encourage them to embrace a change. This strategy could involve: * providing bonuses * offering promotions * opportunities of additional responsibility

Question 62

advantages of incentive

Answer 62

Encourage and help employees to accept the change​

Question 62

disadvantage of incentive

Answer 62

More likely to act as short term motivator only can be expensive

Question 63

define high risk strategies

Answer 63

their failure may generate negative outcomes. They may work effectively in the short term,but run the risk of generating ill feeling between employees and employers over the longer term, which can permanently damage working relationships. Ultimately, any gains made may be outweighed by the instability within the business.​

Question 64

Manipulation - high risk strategy

Answer 64

when a manager selectively leaves out relevant information about a change so that it appears to be more favourable or necessary

Question 65

Threat - high risk startergy

Answer 65

use of power to force change resistors to conform. involves some type of direct or indirect threat. threat is the suggestion that some sort of negative consequence will occur if employees fail to follow a requested change

Question 66

positives/advanatges of threat and manipulation

Answer 66

Enables immediate implementation of change/ensures that change will be implemented rapidly and successfully * Appropriate for critical situations or a time of crisis, when speed is important or where change will be unpopular * Generally involve little financial cost

Question 67

negatives of threat and manipulation

Answer 67

-Likely to foster a negative corporate culture, which breeds mistrust in the longer-term * Can leave employees feeling nervous (particularly about keeping their jobs), undervalued and resentful. This may result in increased staff absenteeism and staff turnover

Question 68

Lewin’s Three-step Change Model

Answer 68

Kurt Lewin, three step change model is a theory of how to implement change that suggested that change can occur at the individual level; that is, that each individual within the business is capable of undergoing change. Lewin suggested that change could occur at a structural or systemic level. The business could undertake change that resulted in a new management structure or new systems that allow the business to operate more efficiently.

Question 69

Lewin’s Three-step Change process — practical steps

Answer 69

1. Unfreeze 2. Change 3. Refreeze

Question 70

Unfreeze steps

Answer 70

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

Question 71

steps for Change

Answer 71

1 Communicate often 2 Dispel rumours 3 Empower action 4 Involve people in the process training

Question 72

setphs for Refreeze

Answer 72

1 Anchor the changes into the culture 2 Develop ways to sustain the change 3 Provide support and training 4 Celebrate success!

Question 73

Step 1 — Unfreeze

Answer 73

- involves preparing the business for change. - Lewin argued that to change effectively, a business needed to ‘unfreeze To unfreeze means to first identify what needs to change; then all relevant aspects of the business need to be ‘put on the table and the need for change needs to be created. Current conditions need to be *communicated* to stakeholders

Question 73

Step 2 — Change

Answer 73

- moving the business from the current situation to its desired state with all processes, policies and practices able to be changed and the necessary support in place — such as training management is now able to move the business to the new position; that is, to change what is occurring. -must be carefully planned and implemented

Question 74

Step 3 — Refreeze

Answer 74

involves putting strategies in place to make sure that the change is stabilised and institutionalised, or made sustainable. reinforcing, solidifying and stabilising the change into the long term (employees won't revert back).

Question 75

Benefits of adopting Lewin’s Three-step Change Model

Answer 75

- allows a business to take a structured approach to any change. -model provides clear steps for proceeding with a change and this can be communicated to all stakeholders. These steps also form a type of checklist so the business will only move on once each step is completed.

Question 76

disadvantages

Answer 76

- time consuming to communicate and maintain - costly to maintain - e.g. new policies, training, rewards, support

Question 77

defne stakeholders

Answer 77

are individuals or groups that interact in some way with the business and have a vested interest in the business performance and activities - Owners - Managers - Employees - Customers - Suppliers - General community

Question 78

owners

Answer 78

-Business owners are often responsible for making major decisions associated with business change and therefore play a crucial role in ensuring its success -Owners may initially suggest the change in the business and will usually have the final say on how the transformation will occur.

Question 79

negative effects on owners

Answer 79

- An owner, particularly a shareholder, may not be comfortable with the change, and sell their share of the business. -move out and away from their comfort zone and may be overwhelmed and stressed by the increased workload and responsibilities -may result in an owner losing their business, or shareholders losing the value of their shares.

Question 79

positive effects on owners

Answer 79

- increased return on their investment and greater financial security. -An owner involved directly in day-to-day operations will have the opportunity to learn new skills.

Question 79

Effect of change on managers

Answer 79

When undertaking transformation, managers are usually required to lead, support, and implement the change within the business

Question 80

positive impact on managers

Answer 80

- provide opportunities for a manager to develop new skills or advance their career.

Question 81

negative inpact on managers

Answer 81

A manager might be uncomfortable using a different management style or new skills, and find the change stressful. Managers may lose their jobs in a restructure or if the business is downsizing. A restructure or downsizing business may result in managers having reduced roles or less responsibility

Question 82

The positive impacts on change for employees

Answer 82

-Employees may be happy about the change and consider that a redeployment or change in work practices presents opportunities. Employees may have the opportunity to learn new skills, which could create longer-term opportunities and job satisfaction. Employees may find that a change results in better employment conditions.

Question 83

negative impacts of change on employees

Answer 83

Employees may lose their jobs Employees may be stressed or concerned about being redeployed undergo retraining may result in employees working longer hours or taking on greater responsibility.

Question 84

positive impacts on change to customers

Answer 84

may result in increases customer satisfaction

Question 85

negative impacts of change on customers

Answer 85

reduce customer satisfaction

Question 86

change advantages on suppliers

Answer 86

may experience increases profit increases opportunities for suppliers

Question 87

change disadvantages on suppliers

Answer 87

suppliers may result in reduce sales may result in a supplier needing to adjust its production processes, which may be unaffordable or difficult to implement.

Question 88

positive impacts of change on the general community

Answer 88

result in the creation of jobs, which improves employment and social wellbeing. A change may involve the use of more renewable resources or may result in a reduction in pollution.

Question 89

negative impacts of change on the general community

Answer 89

result in the loss of jobs, which increases unemployment and impacts negatively on social wellbeing. relocation may result in a fall in customer traffic and other businesses losing sales

Question 90

CSR considerations need to be made for a number of groups include

Answer 90

- employees and managers -environment -customers -general community -suppliers

Question 90

CSR in relation to the environment

Answer 90

goes above and beyond in reducing its impact on pollution, wildlife and the world’s resources. focuses on not creating waste or damaging the environment make sure that the suppliers are environmentally friendly and/or make use of local suppliers to reduce the emissions produced in transportation.

Question 90

define Corporate social responsibility (CSR)

Answer 90

is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

Question 91

CSR Employees and managers

Answer 91

change introduced does not negatively impact on the health and wellbeing of staff. staff may need to be provided with training and support if made redundant Outplacement services should be offered to staff to assist them with finding new jobs, and to reduce stress and anxiety.

Question 92

CSR in relation to Customers

Answer 92

The delivery of the product should occur in a way that treats customers fairly and equitably. Customers who believe that a business has a reputation for being socially responsible are more likely to purchase that business’s.

Question 93

CSR in relation to Suppliers

Answer 93

would be considered socially responsible to source resources and materials from local suppliers. This would ensure that job opportunities are created in the local community and supports the local economy. suppliers uphold the same corporate social responsibility standards as the business. ensure that employees in other countries are not exploited, are paid fairly and have decent working conditions.

Question 94

CSR in relation to General community

Answer 94

mindful of the negative impacts of change on the general community an should be accountable and responsible for their actions - carefully consider the natural environment. - demonstrating support for the community by providing it with employment and a boost to its economy.

Question 94

define business transformation

Answer 94

the new form or structure of a business after a change has been introduced

Question 95

Evaluating transformation

Answer 95

after change a business must review key performance indicators to evaluate the effectiveness of business transformation. It will need to determine if a change was worthwhile and whether further corrective action is necessary.