AOS 2 U4

Question 1

Define Leadership

Answer 1

the ability to influence or motivate people to work towards the achievement of business objectives

Question 2

Define Preparation and planning

Answer 2

a leadership strategy that involves a business developing a ‘plan of action’ that describes the change, and the strategies required to implement it

Question 3

Define Communication

Answer 3

the ability to transfer information clearly from one person to another, and to listen to feedback

Question 4

Define support as a leadership strategy

Answer 4

refers to a business providing assistance, resources, and encouragement to employees during change

Question 5

Define collaboration

Answer 5

the involvement of employees and stakeholders in the process of change

Question 6

Define accountability

Answer 6

individuals and teams take responsibility for their roles in implementing change

Question 7

Define + types of staff training

Answer 7

the process of improving an employee’s skills and knowledge to increase their ability to perform current or future tasks more efficiently and effectively

Name the types of staff training:
on-the-job training:
Occurs when employees learn a specific set of skills to perform particular tasks within the workplace. This training usually occurs in the working environment, and uses the equipment, machinery and documents that are present in that workplace

Off-the-job training:
Occurs when employees learn skills in a location away from the workplace. It usually involves sending individuals or groups of employees to a particular specialised training institution (such as a university or TAFE college).

Question 8

Discuss Staff Training

Answer 8

Adv
1. Reduces workplace accidents: Well-trained employees are less likely to cause harm to themselves or others
2. Improves productivity: Trained employees are more efficient and make fewer mistakes, directly improving operational performance.
3. Boosts morale and motivation: Employees value professional development, leading to improved job satisfaction, and productivity

Disadv
1. High financial cost: Training programs, facilitators, and materials can be expensive, especially for large organisations.
2. Risk of turnover: Employees with new skills may be more attractive to competitors and choose to leave.
3. Reduced productivity: Productivity may temporarily decrease while staff attend training sessions spending more time away from work

Question 9

Define Staff motivation

Answer 9

Staff motivation refers to the internal and external processes that drive employees to give their best performance, particularly during or after a period of change.

Question 10

What are the 5 motivation strategies

Answer 10

Performance-related pay:
The monetary compensation provided to employees relative to how their performance is assessed according to set standards
Examples: Bonuses, increased salary

Career advancement:
The assignment of more authority or promotion of employees to positions that bring rewards, such as increased salary, responsibilities
Examples: Promotion of position, resulting in increased salary, responsibility

Investment in training:
The direction of finances, or resources such as time, into the teaching of skills to employees
Examples: Extra skills training, giving access to higher skilled jobs in future

Support:
refers to a business providing assistance, resources, and encouragement to employees to help them feel valued and therefore improve their motivation to help a business achieve its objectives
Examples: counselling and mentoring

Sanction:
A form of penalty or discipline imposed on an employee for poor performance
Examples: Demotion, reduction in salary, termination

Question 11

Discuss Staff motivation

Answer 11

3 Advantages
1. Improves productivity: Motivated staff are more focused, efficient, and committed to business objectives.
2. Reduces absenteeism and turnover: Motivated employees are more likely to remain loyal and reliable to the business
3. Supports the implementation change: Motivated staff are more likely to support and engage with change initiatives.

3 Disadvantages
1. Expensive: Monetary motivators such as bonuses or performance-based pay can increase operating expenses
2. Difficult to personalise: Not all employees are motivated by the same factors, making the strategy complex to implement
3. Short-term impact: Motivation strategies may need to be frequently updated to remain effective, otherwise they only serve as a short term motivator

Question 12

Define Changes in management styles

Answer 12

Involves managers altering how they lead and make decisions in response to business needs

Question 13

5 management styles

Answer 13

autocratic management style:
Where the manager makes decisions alone, without consulting employees, using one-way communication. This means the manager maintains full control and expects employees to follow orders.

Persuasive management style:
Where the manager makes decisions alone but explains the reasons to employees to gain their support.

Consultative management style
Where the manager seeks employee input before making decisions, while retaining final authority.

Participative management style:
Where decision-making is shared between the manager and employees, with two-way communication

Laissez-faire management style:
Where employees are given full decision-making power in their work, with minimal manager involvement.

Question 14

Discuss changing Managment Styles

Answer 14

3 Advantages
1. Improves the liklihood of successful change implementation: Managers can select the most suitable style for the situation (e.g., autocratic in a crisis, consultative in long-term planning).
2.Reduces resistance to change: boosts employee morale and motivation as shifting from autocratic/persuasive to consultative/participative makes employees feel valued
3. Improved Productivity : Inclusive management styles promote teamwork and collaboration which improves efficiency and productivity

3 Disadvantages
1. Resistance from leadership: Managers accustomed to a particular style may find it difficult to change.
2. Slower decision-making: Participative styles take longer, especially during time-sensitive changes.
3. Inconsistency: Poorly implemented changes in style may confuse staff or weaken authority.

Question 15

Define Changes in management skills

Answer 15

refers to the development or adjustment of key management skills—such as communication, delegation to better manage change.

Question 16

6 management Skills

Answer 16

communication:
the ability to transfer information from a sender to a receiver, and to listen to feedback

delegation:
the ability to transfer authority and responsibility from a manager to an employee to carry out specific activities

planning:
the ability to define business objectives and decide on the methods or strategies to achieve them

leadership:
the ability to influence or motivate people to work towards the achievement of business objectives

decision-making:
the ability of a manager to choose a specific course of action from the alternatives, that will help the business achive its objectives

interpersonal skills:
the ability to deal with people and build positive relationships with staff

Question 17

Discuss changes Managment skills

Answer 17

3 Advantages
1. Reduces resistance: Adjusting skills to suit the situation reduces resistance and helps staff accept change
e.g., stronger communication during a merger

2. Supports smoother change process: Good planning and decision-making skills reduce uncertainty and confusion.
3. Stronger leadership: Well-developed skills enable managers to support and guide employees confidently.

3 Disadvantages
1. Time-consuming: Shifting to more consultative or interpersonal skills can slow down urgent decisions.
2. Resistance from managers themselves: Some may resist learning new skills, especially if they feel their old methods worked.
3. Employee confusion: If a manager changes style and skill use too often, staff may be uncertain about expectations.

Question 18

Define Increased investment in technology

Answer 18

a management strategy where a business devotes more finances and resources such as time towards upgrading or adopting new technologies to improve its performance, productivity, and competitiveness.

Question 19

6 examples of Technology investment

Answer 19

computer-aided design (CAD):
a computerised design tool that allows a business to create product possibilities from a series of input parameters

computer-aided manufacturing (CAM):
the use of software to direct and control manufacturing processes

artificial intelligent:
computerised systems to simulate human intelligence and mimic human behaviour

online services:
assistance that are provided via the internet

automated production line:
machinery and equipment arranged in a sequence with components added to a good as it proceeds through each step, with the process controlled by computers

robotics:
highly specialised form of technology capable of complex tasks

Question 20

Discuss increased investment in technology

Answer 20

3 Advantages
1. Increases efficiency: Automation reduces time and human error in processes.
2. Enhances quality: Advanced technologies offer precision and consistency in production.
3. Supports innovation: Technology can open new avenues for product or service offerings.

3 Disadvantages
1. High upfront costs: Implementation and system integration may require large capital costs
2. Training requirements: Staff may need retraining, delaying productivity, and increasing business expenses
3. Job displacement: Automation can lead to redundancies, affecting staff morale.

Question 21

Define Improving quality in production

Answer 21

a management strategy that focuses on enhancing the standard of goods or services produced by a business. It involves implementing systems or processes to ensure that products meet or exceed customer expectations, and have minimal defects

Question 22

3 methods to improve quality

Answer 22

quality control:
the use of inspections at various points in the production process to check for problems and defects

quality assurance:
the use of a system so that a business achieves set standards in production

Total Quality Management:
an ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operations

Question 23

discuss improving quality in production

Answer 23

3 Advantages
1. Boosts customer satisfaction: Higher-quality outputs increase trust and loyalty, and allow a premium price point.
2. Reduces defects and waste: Fewer errors save money and resources, increasing the efficiency and productivity of operations
3. Enables premium pricing: Superior quality can justify higher price points.

3 Disadvantages
1. High costs: Investment in equipment, audits, or certifications can be significant.
2. Disruption to operations: Implementation may require downtime or workflow changes, reducing the efficiency and productivity of operations
3. Resistance from staff: Employees may push back against stricter standards.

Question 24

Define Cost cutting

Answer 24

Cost cutting is a management strategy where a business deliberately reduces its expenses in order to improve its profitability or efficiency, often in response to issues identified through key performance indicators (KPIs)

Question 25

Cost cutting strategy

Answer 25

Lower Cost Strategies is a business approach where a company aims to become the lowest-cost producer in its industry, allowing it to offer goods or services at a lower price than competitors and gain a competitive advantage

Question 26

Discuss cost cutting

Answer 26

3 Advantages 1. Increased Market Share: Lower prices can attract more price-sensitive customers, helping the business gain a larger share of the market. 2. Increased Profits: Profit made per unit can be increased as products are produced at lower costs 3. Competitive Advantage: Being able to offer the lowest prices gives the business an edge over competitors who may not be able to match them 3 Disadvantages 1. Reduced Product Quality: Cutting costs too aggressively may lead to lower quality products or services, affecting customer satisfaction 2. Difficult to Sustain Long-Term: Competitors may eventually find ways to cut their own costs, making it harder to maintain the lowest price position over time 3. Lack of Product Differentiation: Focusing on low costs may mean the product lacks unique features or innovations, making it less attractive to customers seeking quality or variety

Question 27

Define Initiating lean production techniques

Answer 27

refer to a set of strategies and principles used in operations management to maximize customer value while minimizing waste. The aim is to create more value for customers using fewer resources.

Question 28

4 lean principles

Answer 28

Pull - a lean management principle where a business allows customer demand to dictate the rate at which products are produced One piece flow - a lean management principle that refers to a production process where one product is completed at a time, moving through each stage of production without interruption Takt - a lean management principle that refers to the rate at which a business must produce a product to meet customer demand Zero defects a lean management principle that focuses on continuous improvement by aiming to eliminate errors in the production process

Question 29

Discuss Initiaing lean production techniques

Answer 29

3 Advantages 1. Reduces Costs Over Time: As there are fewer defects and less waste 2. Increased customer satisfactions: By improving product quality and price, whilst reducing the number of defects 3. Increases efficiency: By reducing energy and resource consumption 3 Disadvantages 1. Costly to Implement: As it requires a significant initial financial Investment 2. Increase in workplace stress due to constant focus on improvement and elimination of waste 3. Requires committed and experienced employees, who are skilled enough to implement lean production

Question 30

Define redeploment of resources

Answer 30

refers to moving resources from one area in a business to another area of the business, to improve the efficiency of operations

Question 31

Types of resources

Answer 31

Natural resources Raw materials that occur in nature and are used in the production of goods and services, such as land and water. Capital resources Man-made items used in the production process to create goods and services, such as machinery, equipment, tools and buildings. Labour resources The human effort, skills and knowledge used in the production of goods and services

Question 32

Discuss redeployment of resources

Answer 32

3 Advantages 1. Improved Efficiency: Redeploying resources to where they are most needed allows a business to use them in a more efficient manner 2. Reduces Waste: Unused resources are utilised instead of being thrown away improving efficiency 3. Supports Business Growth: By redeploying resources, a business can get more staff or equipment to an area the business wants to grow 3 Disadvantages 1. Expensive: Moving resources involves significant expenses such as training (labour) or relocation (natural or capital) 2. Staff Resistance: Staff may feel unmotivated if they have to move jobs, which can greatly impact productivity and efficiency 3. Loss of Specialised Staff: By redeploying staff, a business may weaken important operation as skilled staff have been removed

Question 33

Define innovation

Answer 33

a process that occurs when already established tools, systems or products are improved upon

Question 34

Discuss innovation

Answer 34

3 Advantages 1. Competitive Advantage: Innovation allows a business to offer new products or services which other businesses do not 2. Improves Market Share: By offering a unique or superior product a business can fulfill a gap in the market and increase 3. Improves Business Reputation: As a business is recognised as a market leader, trust is built in business improving customer loyalty. 3 Disadvantages 1. Expensive: Innovation requires a significant investment in research and development 2. High Risk: Some innovation may be unsuccessful, resulting in a waste of resources impacting efficiency and effectiveness of operations 3. Resistance from Employees: Some employees may resist change due to the fear of losing their job, decreasing the productivity of operations

Question 35

Define Global sourcing of inputs

Answer 35

the practice of seeking the most cost-efficient materials and other inputs, including from countries overseas

Question 36

Discuss Global sourcing of inputs

Answer 36

3 Advantages 1. Reduces Costs: Due to greater access to a variety of inputs 2. Greater Access to Resources: As resources are globally sourced businesses can access inputs that are domestically unavailable 3. Allows for Expansions: Provides an opportunity to learn how to do business in a potential market, allowing for easier expansion if a business decides to 3 Disadvantages 1. Difficult to monitor quality of inputs: As inputs are being produced in different factories 2. Decreased Productivity: Increased delivery times of manufactured goods due to global sourcing can disrupt business productivity 3. Potential for Delays: Potential for delays in delivery’s due to ports/ borders shutting down

Question 37

Define overseas manfuacture

Answer 37

the production of a good in a country that is different to the location of the business’s headquarters

Question 38

Discuss overseas manufacture

Answer 38

3 Advantages 1. Lower Production Costs: Overseas manufacture allows for access to cheaper labour and lower material costs, resulting in cheaper production costs 2. Improved Product Quality: Overseas manufacture allows for greater access to higher quality materials and more skilled employees which are not domestically available 3. Access to wider customer base Through overseas manufacturing a business has a greater access to international customers as facilities are closer 3 Disadvantages 1. Negative Business Reputation: Due to overseas manufacture there is a loss of local jobs which can impact a businesses reputation 2. Difficult to monitor quality of products and services : As production is occurring overseas it is difficult for a business to monitor the quality of all products 3. Potential for Delays: Potential for delays in the delivery of products due to ports/ borders shutting down

Question 39

Define global outsourcing

Answer 39

the contracting of a specific business operation to an external person or business in another country

Question 40

Discuss global outsourcing

Answer 40

3 Advantages 1. Improved quality: Due to access to expert knowledge and high quality service 2. Reduced costs: Due to access to more cost efficient labour and operating facilities 3. Business is able to focus on its core activities, allowing it to grow and gain a competitive advantage 3 Disadvantages 1. Difficult to maintain quality: As management has less control over production process as tasks are being outsourced 2. Impact on Culture: Loss of local jobs and career growth, may reduce loyalty of employees 3. Communication Barriers: Differences in language, culture and time zones may result in errors, reducing quality of customer service and operations productivity

Question 41

Net Profit Figures and management strategies

Answer 41

refers to the amount of income remaining once operating costs have all been subtracted from its total revenues Reduce Costs through: - Changing suppliers - Reducing wage costs (often through downsizing or replacing labour with technology) Investment in technology:  Can be used to reduce costs, increase revenue, and thereby improve profit. Lean production techniques:  Increase efficiency and reduce other costs, improving profit. Innovation o Global sourcing of inputs, overseas manufacture and global outsourcing

Question 42

percentage of market share and management strategies

Answer 42

KPI that refers to a measure of the business’s share of the total industry sales for a particular good or service, expressed as a percentage Management strategies to improve market share: o Improving quality in production o Cost cutting o Lean production techniques

Question 43

Rate of productivity growth and relevant management strategies

Answer 43

KPI that refers to the change in productivity in a specific time period compared to the previous time period Ways to improve productivity: Improving production methods:  Increasing the speed of production will allow greater output to be produced per hour/day.  This can be achieved through the use of new and/or improved technology.  It can also be achieved through reducing waste as a result of improved production methods. Minimising wastage:  Improving the quality of inputs so less waste occurs during production reduces costs, as well as increasing the output of a business. Staff training:  For some businesses, one method of improving productivity is through staff training.  Improving the skills of employees can lead to improvements in productivity as they become more efficient at their jobs and make fewer errors, further reducing waste. Improving staff motivation:  Employees are more likely to work harder when motivated. Redeploying resources:  This can allow for improved efficiency

Question 44

number of sales and ways to increase sales

Answer 44

KPI that refers to the total quantity of products or services sold over a specific time period Price: o Lean production o Changing suppliers Quality: * Quality control * Quality assurance * Total Quality Management. o Global sourcing of inputs, - Overseas manufacture - Global outsourcing Customer service: -Staff Training

Question 45

level of wastage and management strategies

Answer 45

KPI that refers to the amount of unwanted or unusable material created by the production process of a business To respond to this key performance indicator, a business could: 1. Introduce a quality management system such as quality control: o By determining if a product is meeting pre-determined standards, problems in production that are resulting in defects can be identified and rectified, reducing future wastage issues. 2. Implement lean production: o This is a business-wide integrated series of systems that is designed to eliminate waste and inefficiencies in all aspects of production. 3. Increase investment in technology: o New technology can improve efficiencies and reduce waste 4. Redeploy resources: o This can allow for improved efficiency - Introduce a quality management system such as quality control: - Implement lean production: - Increase investment in technology: - Redeploy resources:

Question 46

rate of staff absenteeism and ways to improve

Answer 46

KPI that refers to the number of workers who do not turn up for work when they are scheduled to do so Ways to improve o Providing training and support to employees: o Changing the style of management used:  Could lead to staff becoming more creative or responsible, so that employees become less disillusioned with the workplace. o Management skills:  Such as open communication, delegation and interpersonal skills may be used to improve morale and motivation. o Motivation strategies:  Such as providing teamwork, introducing a workplace uniform, developing a new vision statement or holding social events for staff.

Question 47

Staff turnover and ways to reduce it

Answer 47

KPI that refers to the rate at which employees leave a business and must be replaced over a specific time period Level of Staff Turnover can be reduced through: o Introducing motivation strategies:  Such as performance-related pay, teamwork, responsibility or recognition o Redeployment of resources:  Redeploying labour to another part of the business to provide staff with more interesting or challenging work o Changing the management style or skills o Increased staff training to improve motivation

Question 48

number of customer complaints + how to reduce customer complaints

Answer 48

KPI that refers to the number of customers expressing their dissatisfaction with the business, products and services in either spoken or written form Enrol staff in training programs: o These programs can better equip them for their role and/or improve their skills in dealing with customers Improve the quality of the products produced or provided: o Concerns may then focus only on price or service o Quality can be achieved through the introduction of a quality management system, be it quality control, quality assurance or Total Quality Management. o Global sourcing of inputs, overseas manufacture and global outsourcing can also result in an improvement in quality. - Reduce the price of the product: o This can be done by reducing costs in the production of a good or service provision and passing these savings on to customers

Question 49

number of workplace accidents + way to reduce

Answer 49

KPI that refers to the recorded number of incidents that result in injury or harm to employees while at work To reduce workplace accidents: A business should ensure it is complying with all workplace laws, consulting staff about improvements to facilities, and scheduling regular maintenance of equipment and audits of the workplace.

Question 50

Number of Website hits + ways to increase

Answer 50

KPI that refers to the total number of times users visit a business’s website. - Increased investment in technology: o Such as a social media campaign could raise awareness of the business’s products, prompting more website searches - Improving quality in production: o Raise interest in the business’s products, prompting consumers to seek out the business’s website.

Question 51

Define corporate culture + 2 types

Answer 51

the values, ideas, expectations and beliefs shared by members of the business Real corporate culture: the actual values and behaviours that are observed within a business shown through staff uniform, language and how the business operates Official corporate culture: refers to the stated or documented values, beliefs, and expectations of a business, shown through policies, slogans and logos.

Question 52

3 Benefits of a Positive Corporate Culture

Answer 52

1. Increased Productivity: as employees will have high morale and a positive attitude toward the business 2. Reduced level of staff turnover: as employees will become more loyal to the business 2. A business with a positive reputation, will be more attractive to talented and skilled employees.

Question 53

7 Strategies to develop corporate culture

Answer 53

**Senior managers, and the ‘heroes’ of the business, acting as role models:** The people who embody and represent the values of the business, acting as role models for employees with their behaviour helping reinforce the desired corporate culture **Communicating desired values to staff:**Actively and consistently informing employees of the values the business wants to promote through written and verbal communication, training, policies, and leadership behaviour **Hiring staff who fit in with the values of the business:** Recruiting individuals whose attitudes, beliefs, and behaviours align with the business’s desired culture and values **Rewarding employees who exemplify appropriate values:** Recognising and rewarding staff members who consistently demonstrate behaviours that align with the business’s desired culture and values ******Establishing appropriate rituals, rites and celebrations:** Which refers to establishing routine behavioural patterns in a business’s everyday life. These may include regular social gatherings or formal organisational ceremonies, which can be used to acknowledge and reinforce the values of the business **Changing the prevailing management style: ** - Modifying the way that managers interact with staff and make decisions in order to better align with the desired culture and support the change process. **Ensuring that staff members are given sufficient training to reflect the values of the business:** - By gaining skills and knowledge, employees are more developed, both professionally and personally, and are likely to feel valued by the business and empowered to do their best, having a positive influence on corporate culture

Question 54

Define Senge Learning Organisation:

Answer 54

Is a business that facilitates the learning of its members and continuously transforms itself by encouraging adaptability, innovation, and growth.

Question 55

5 Disciplines of Senge Learning Organisation

Answer 55

Team Learning: the process where individuals within a group develop and align their knowledge and skills together, creating a team that thinks, learns and collaborates to achieve results. Systems Thinking A holistic approach to analysing how all parts of a business are interconnected. It involves understanding that changes in one area will impact others Personal Mastery: Refers to the practice of individuals undertaking personal growth and learning to become more proficient, and in doing so improving the productivity of business operations. Mental Models: The personal beliefs, assumptions, and habits people have about how things work in the world — including how a business should operate. Building Shared Vision: The development of a common goal that provides focus, commitment and direction across the entire organisation

Question 56

Discuss Senge Learning organisation

Answer 56

3 Advantages 1. Improves Corporate Culture: Being a learning organisation will improve relationships between staff and managers and lead to improved staff motivation 2. Supports the implementation of change: Business is more likely to successfully introduce change as it can reduce resistance to change and organisational inertia 3. Improved Productivity: Due to employees being more motivated and knowledgeable 3 Disadvantages 1.Time Consuming: Time needs to be allocated for team meetings, discussions and staff training , which may lower productivity 2. Costly to Implement: Staff will need to be trained which can be expensive 3. Difficult to Apply: to businesses where work is repetitive and involves employees with low levels of skills – eg. a supermarket, fast food outlet

Question 57

Define Low risk strategies

Answer 57

actions taken by a business that are likely to generate positive outcomes in the short term and longer term

Question 58

Discuss Low risk strategies

Answer 58

3 Advantages 1. Positive Employee Morale: Due to collaborative strategies like support and communication employees feel valued, making them more motivated, and less resistant to change 2. Employee Involvement: Two way communication provides opportunity for employees to put ideas forward, and understand why change is taking place 3. Supports the succesful implementation of change: As employees feel valued, motivated and have a greater understanding to why change is taking place there will be less resistance 3 Disadvantages 1. Time consuming: Extensive consultation, communication, and training can slow down the implementation of change process. 2. Expensive: Strategies such as support and incentives can be expensive 3. Not suitable for Urgent Change: If immediate change is required, low risk strategies may take too long

Question 59

Low Risk Strategy of communication + discuss

Answer 59

the ability to transfer information clearly from one person to another, and to listen to feedback 2 Advantages 1. Employees feel valued and therefore motivated and loyal 2. Builds trust and reduces uncertainty surrounding change 2 Disadvantages 1. Time-consuming to share information widely. 2. Potential for confusion if not done clearly

Question 60

Define + discuss Low Risk Strategy of empowerment

Answer 60

refers to involving employees in the change process, providing them with greater responsibility and decision-making power 2 Advantages 1. Employees feel valued and therefore motivated and loyal 2. Builds trust and reduces uncertainty surrounding change 2 Disadvantages 1. Time-consuming as it slows decision making down due to greater number of inputs 2. Not all employees want to participate/ have extra responsibility

Question 61

Define + discuss Low Risk Strategy of Support

Answer 61

refers to a business providing assistance, resources, and encouragement to employees to help them adapt to and embrace organisational change 2 Advantages 1. Employees feel valued and therefore motivated and loyal 2. Builds employee confidence, reducing resistant to change and increasing productivity 2 Disadvantages 1. Counselling and training can be costly for the business to provide 2. Time consuming to implement support strategies

Question 62

Define + discuss Low Risk Strategy of Incentives

Answer 62

refers to any financial or non-financial rewards provided to employees to encourage them to embrace a change 2 Advantages 1. Motivates employees to accept change 2. Quickly boosts employee productivity 2 Disadvantages 3. Incentives can be costly for the business to provide 4. Only acts as a short term motivator

Question 63

Define + discuss high risk strategie

Answer 63

actions taken by a business that may succeed in the short term but run the risk of generating negative outcomes in the longer term 3 Advantages 1. Little financial Cost 2. Fast: Enables immediate implementation of change 3. Suitable for times of crisis/ critical situations: As strategies are quick change can be implemented immediately, which is suitable when speed is important or change is unpopular 3 Disadvantages 1. Damages employee trust : employees will feel nervous, undervalued and resentful. Which may result in increased staff absentees and turnover 2. Creates a poor employee- employer relationship: Resulting in a lack of employee motivation and resentment towards change 3. Develops a negative corporate culture: Building mistrust in the future and a resentment to management which can reduce productivity

Question 64

Define + discuss high risk strategies of manipulation

Answer 64

is the use of influence over someone to get them to behave a certain way, often by selectively presenting information or withholding key details to shape their understanding of a change' 2 Advantages 1. Quickly overcome resistance and gain employee support 2. Effective in crisis requiring immediate change. 2 Disadvantages 1. Harms employee morale and business culture 2. Creates fear and resentment towards management increasing resistance to change in the long term, and lowering productivity

Question 65

Define + discuss high risk strategy Threat

Answer 65

involves using intimidation or the possibility of negative consequences to force employees to accept a change 2 Advantages 1. Quickly overcome resistance and gain employee support 2. Effective in crisis requiring immediate change 2 Disadvantages 1. Harms employee morale and business culture 2. Creates fear and resentment towards management increasing resistance to change in the long term, and lowering productivity

Question 66

Define + discuss Three Step Change Model

Answer 66

Lewin’s Three-Step Change Model is a process businesses use to implement change in three stages: preparing the business (unfreeze), implementing the change (change), and embedding the change into culture (refreeze).” 3 Advantages 1. Reduces Resistance: Helps remove and minimise any resistance to change 2. Easy to Implement: The model provides clear and simple steps for continuing with a change and can be communicated to all stakeholders, making it easy for managers and employees to follow and implement 3. Encourages collaboration: Helps employees feel part of process, reducing resistance and improving the productivity of employees 3 Disadvantages 1. Time consuming: The process requires planning, implementation, and reinforcement, which can delay implementation of change 2. Resource-intensive: Implementing the model effectively often requires significant resources (training, communication, support systems), which may increase costs. 3. Not suitable to rapidly changing environments: In industries which require constant adaptation (e.g. tech), the model may be to rigid

Question 67

Define the three steps of the model

Answer 67

Unfreeze: The stage whrer the business prepares for change by recognising the need for it, challenging current practices, and motivating employees to accept that change is necessary. Change: The stage where the business implements the change by introducing new policies, processes or behaviours, and providing support such as training and communication. Refreeze: The stage where the change is embedded into the business’s culture, policies and practices so that it becomes the new normal and employees do not revert to old ways

Question 68

Define + discuss owners

Answer 68

The individuals or groups who legally possess a business and therefore have a direct financial interest in its success. 2 Positive Effects 1. Successful change implementation will improve employee perception of owners, therefore improve trust and loyalty 2. Change can provide opportunities for owners to use leadership skills and develop stronger relationships with employees, improving corporate culture 2 Negative Effects 1. Unsuccessful change will cause owner to experience personal and financial implications 2. Implementation of change may result in a business owner becoming overwhelmed and stressed by the increased workload

Question 69

Define and discuss employees

Answer 69

the people who work for the business and expect to be paid fairly, trained properly and treated ethically in return for their contribution to production 2 Positive Effects 1. If a business change is successful, employees may experience improved job and financial security 2. If change is implemented successfully and employees have contributed to the implementation they may be provided with financial and non-financial rewards 2 Negative Effects 1. Employees may fear for their job or financial security if business change is expected to result in redundancies 2. Business change may increase the responsibility of employees within the workplace, and if not prepared for this it may negatively impact their performance

Question 70

Define and discuss customers

Answer 70

the people who purchase goods and services from the business, expecting high quality at competitive prices 2 Positive Effects 1. If change improves the quality of a business’s goods and services, customers may experience increased satisfaction. 2. Customers may experience greater satisfaction from a business that implements new strategies to demonstrate corporate social responsibility 2 Negative Effects 1. If the business change increases the price of its products customers may be dissatisfied 2. If a business discontinues or changes a good or service, customer satisfaction may decrease if the new product fails to meet their needs.

Question 71

Define and discuss suppliers

Answer 71

businesses or individuals who provide materials and other resources to a business so that it can conduct its operations 2 Positive Effects 1. Supplier demand may increase if a business requires a greater amount of resources to meet its production needs. 2. Successful business change (like growth or expansion) can create stable supply agreements, giving suppliers financial security. 2 Negative Effects 1. A business change may require its suppliers to involuntarily adjust their processes to meet the new demands of the business 2. If a business decides to switch to a different supplier or discontinue a product, a supplier’s sales may decrease due to a lower volume of orders from the business.

Question 72

Define and discuss managers

Answer 72

individuals responsible for overseeing parts of the business and making strategic decisions to help achieve business objectives 2 Positive Effects 1. Change can provide opportunities for managers to develop new skills or advance their career 2. If the change is successfully implemented a business may provide a manager with financial and non-financial rewards 2 Negative Effects 1. If change is unsuccessful, a manager may lose their job and financial security 2. Implementation of change may result in a business managers becoming overwhelmed and stressed by the increased workload

Question 73

Define and discuss general community

Answer 73

the people surrounding a business and its environment 2 Positive Effects 1. Business change that involves reducing waste can reduce the business’s environmental impact and improve overall living standards for the general community 2. When a business change is successful, a business has a greater ability to contribute to local social causes. 2 Negative Effects 1. If a business change involves switching to an overseas supplier, transporting inputs from another country can have a negative impact on the environment, and result in a loss of local jobs 2. A business change that results in redundancies may increase local unemployment rates therefore negatively impacting societal wellbeing

Question 74

Importance of Leadership in Change Management

Answer 74

Leadership is essential because it guides, motivates, and supports employees through the uncertainty of change. Effective leaders use communication, support, and a shared vision to reduce resistance and increase commitment to the change.

Question 75

Define CSR + areas to consider

Answer 75

the beyond legal obligations and responsibilities a business has to the wellbeing of employees and customers, shareholders and the community, as well as the environment -The environment -Employees and managers - Customers -Suppliers -General Community

Question 76

Define KPI

Answer 76

specific criteria used to measure the efficiency and/or effectiveness of a business’s performance

Question 77

Management strategies to respond to key performance indicators and/or seek new business opportunities in relation to Woolworths

Answer 77

**Increased investment in technology – Moorebank Automated Distribution Centres (2023–24) ** - KPI - Rate of Productivity: were decreasing due to rising online demand and supply chain errors - Strategy (Response) - Increased investment in technology: Woolworths invested in robotics and automation at Moorebank DCs to improve stock accuracy and speed. - Outcome: Improved productivity growth and cost efficiency KPIs through fewer supply chain errors and faster order fulfilment. **Improving quality / customer value – Unit pricing labels (May 2024) ** - KPI – Number of Customer Complaints: showed dissatisfaction with unclear value comparisons on shelf labels. - Strategy (Response): Introduced larger, clearer unit pricing labels in stores. - Outcome: Reduced customer complaints KPI and lifted customer satisfaction by showing responsiveness to feedback. **Staff training** - KPI – Level of Staff Turnover: New digital tools (Scan & Go, automated DCs) risked higher staff turnover if employees weren’t supported. - Strategy (Response) – Staff Training: Provided staff training to adapt to robotics, mobile checkouts, and customer service expectations - Outcome: Stabilised staff turnover KPI and maintained customer satisfaction KPI

Question 78

Woolworths Corporate culture and strategies for its development

Answer 78

**Communicated desired values to staff ** Context: - In June 2022, Woolworths phased out single-use plastic bags and replaced them with paper bags made from at least 70% recycled material. o This required not just operational changes but a clear communication strategy - Internal communication: o Team briefings, online training modules reinforced that this decision aligned with Woolworths’ cultural of “Customer 1st” by addressing customer demand for sustainable shopping - External communication: o Campaigns across stores, websites, and social media helped staff connect customer interactions back to Woolworths’ values. Culture link: - By linking the bag change to environmental responsibility, Woolworths ensured staff understood and could explain why the change mattered, embedding the values of sustainability and customer focus directly into staff behaviour. **Reward employees who exemplify appropriate values ** Context: - In 2023, Woolworths expanded recognition programs such as Store of the Year and introduced new benefits like the Everyday Rewards Plus membership for team members o Reinforced the “Team 1st” culture by showing employees that their contribution to delivering excellent service and company values would be acknowledged and rewarded. Culture link: o When employees see that behaviours reflecting “Customer 1st, Team 1st” are rewarded, it reinforces those values as daily norms, and motivates performance

Question 79

Learning Organisation (Senge) Woolworths

Answer 79

Systems Thinking * Principle: Viewing the business as an interconnected system rather than separate * Example: Digital tools like Scan & Go generate customer data, which is linked to the expanding Everyday Rewards ecosystem. * This data is then supported by supply chain upgrades and allowed for the implementation of “scan and Go: trolley by ensuring product availability * Each initiative feeds the others, showing Woolworths’ ability to see connections and adapt the system as a whole. Personal Mastery * Principle: Individuals continually improving their skills and aligning with organisational vision. * Example: Employees in pilot stores were required to learn new roles such as helping customers use Scan & Go technology and adapt to responsibilities across multiple store formats (Supermarkets, Metro, private label). This upskilling reflects Woolworths’ commitment to building individual capability in line with its innovation goals.

Question 80

Learning Organisation (Senge) Woolworths MM, SV, TL

Answer 80

Mental Models * Principle: Challenging entrenched ways of thinking and encouraging openness to new ideas. * Example: Woolworths redefined its loyalty program from being just a discount tool to a lifestyle ecosystem. * By partnering with Accor Hotels, Petstock, and major airlines in 2024, the organisation broke away from the traditional “points-for-groceries” mindset and reshaped customer expectations of supermarket rewards. Shared Vision * Principle: Building commitment around a common organisational goal. * Example: * Through the innovation of the Smart Trolley in Aug 2024 in combination with the expansion of the loyalty program in May 2024, Woolworths was reshaping the business to be a more connected, innovative and customer focused business Team Learning * Principle: Teams working together, reflecting, and learning from successes and challenges. * Example: Collaboration became critical as supply chain improvements (Primary Connect distribution centres) supported the introduction of the Scan & Go trolley, while insights from loyalty partnerships were shared across teams to improve customer engagement, allowed Woolworths to become a single Retail Division.

Question 81

Low-risk strategies Woolworths

Answer 81

**Communication ** Context: - In June 2022, Woolworths announced the nationwide phase-out of reusable plastic shopping bags. - This was a high-visibility change that risked resistance both from staff (who had to manage customer reactions) and from customers. Action: - Woolworths rolled out a national communication campaign that included: o In-store signage and posters explaining the reason for the change (environmental impact). o Digital communication via Woolworths’ website, app, and emails to Everyday Rewards members. o Internal briefings and manager toolkits to help frontline employees explain the change confidently to customers. Effect: - Clear messaging helped reduce confusion and resistance. - Staff were prepared to handle customer questions, while customers perceived the change as aligned with community expectations. **Support & incentives ** Context: - Removing plastic bags could have caused frustration for both staff and customers if no alternative was provided. Action: - Woolworths introduced paper bags (70% recycled) and encouraged customers to bring reusable bags, which were sold at low cost. - To support staff motivation more broadly, Woolworths launched Everyday Rewards Plus (2023) for employees, providing discounts, bonus points, and recognition benefits. Effect: - Alternatives reduced resistance by offering solutions, not just restrictions. Incentives such as benefits reinforced that Woolworths valued its staff, building buy-in for ongoing changes

Question 82

high risk strategy Woolworths

Answer 82

- In June 2022, Elon Musk issued the “return-to-office ultimatum” at Tesla, requiring employees to work a minimum of 40 hours per week in person or be forced to resigned. This threat based approach resulted thousands of staff choosing to leave Tesla.

Question 83

three Step Change Woolworths

Answer 83

**Soft Plastic Recycling (2022–25)** - Unfreeze: o REDcycle collapse created urgency as stockpiles of plastics built up and customers lost trust in recycling systems. o CEO Brad Banducci publicly communicated “Australia had been let down,” signalling the need for change. o Staff and customers began shifting their mindset towards alternative recycling systems. - Change: o Woolworths joined the Soft Plastics Taskforce with Coles, Aldi and AFGC. o A 2024 Melbourne pilot introduced in-store bins, with staff trained in contamination checks, customer communication, and safety procedures o Resources were invested into bin infrastructure, signage, and communication campaigns. - Refreeze: o By mid-2025, the program expanded to 500+ stores nationally o Recycling bins became part of standard store operations, and customer education reinforced new behaviour. o The initiative was embedded in Woolworths’ Sustainability Plan 2025, cementing CSR as a long-term strategic commitment. **Scan & Go Trolleys (2024–25)** - Unfreeze: o Long checkout times and customer demand for convenience highlighted the need for innovation. o Staff initially resisted due to fears of job loss, and unfamiliar technology, however were reassured by manager via briefings, which stated the change was not a replacement - Change: o In August 2024, Woolworths launched Scan & Go trolleys in NSW pilot stores. o Employees were trained to assist customers and troubleshoot technology. o By 2025, pilots expanded to 35 stores across NSW, VIC, and QLD. - Refreeze: o Scan & Go became part of employee training for new hires, reducing future resistance. o Staff routines stabilised, rotating between manned checkouts, floor support, and Scan & Go assistance. o Customer habits adjusted, with some families adopting the system for convenience, embedding the change as a standard option.

Question 84

The effect of change on stakeholder Woolworths

Answer 84

**Customers** Context of change: * Woolworths announced in June 2022 it would phase out its 15¢ reusable plastic bags, replacing them with paper and fabric options. * In May 2024, it introduced larger unit pricing labels to support transparency during cost-of-living pressures. * In Aug 2024, it trialled Scan-and-Go trolleys to speed up shopping. Effects: * Positive: Customers gained clearer value comparisons (unit pricing) and greater convenience (Scan-and-Go). These improved trust and satisfaction. * Negative: Some frustration arose over the removal of plastic bags and the cost of buying paper or fabric alternatives. **Employees ** Context of change: * New technologies such as Scan-and-Go and the Moorebank automated Distribution Centres (2023–24) required training and new workflows. * Enterprise bargaining in 2024 delivered wage increases and new benefits. Effects: * Positive: Employees accessed new career opportunities in tech-enabled service and customer support. Wage rises and benefits increased motivation and engagement. * Negative: Automation created fears of job displacement in logistics. **Suppliers ** Context of change: * In July 2022, Woolworths’ media arm Cartology acquired Shopper Media, increasing control of in-store advertising. Effects: * Positive: Suppliers gained new opportunities to reach customers through expanded retail media channels. * Negative: Suppliers faced pressure to adapt packaging and sustainability practices quickly, with less negotiating flexibility under Woolworths’ stronger media control.

Question 85

Woolworths CSR

Answer 85

* Bag phase-out (Jun 2022): Woolworths removed reusable plastic bags nationwide, replacing them with recycled paper bags to reduce plastic waste. * Woolworths Foundation (Jun 2024): Launched to fund food relief, disaster aid, and environmental programs, reinforcing community support.

Question 86

Woolworths response to KPI

Answer 86

**Context of change: ** - Closure of MyDeal (Jun 2025) set a forecast of $20m in annual losses, to protect profitability. Change: - Profit improved after Woolworths consolidated resources and cut loss-making operations. KPI results: - Before: In FY22 Woolworths’ net profit was $1.51bn. - After: In FY23 profit rose to $1.62bn (+4.6%) despite inflationary pressures. **Level of Wastage KPI ** Context of change: - A growing consumer base of customers who were expecting environmentally responsible practice Change: - Plastic bag phase-out (Jun 2022 → early 2023) and packaging reduction strategies targeting minimising plastic use. KPI results: - Before: In FY18 baseline, Woolworths’ packaging was higher in virgin plastic. - After: By FY23, Woolworths reduced virgin plastic packaging by 26% and committed to removing 12,000 tonnes of plastic.