1
Q
management opportunities
A
businesses seek opportunity to develop their business > this includes investigating or developing opportunities in domestic and global markets
- growth is generally positive for business as it provides opportunity to develop and expand
2
Q
businesses may choose to grow for a number of reasons
A
- responding to strong competition
- to gain higher profit margins
- to attract new customers
- capitalising on business success
- to take advantage of a new opportunity or market
3
Q
growing a business has a number of benefits
A
- new opportunities can mean more customers
- greater sales
- greater profits
- the ability to employ more staff
4
Q
businesses can benefit from exporting by
A
- providing access to a larger pool of customers
- spread the risk of the business across a range of customers
- reduces the dependence on the Australian market
5
Q
domestic and global strategies
A
exporting products and services innovation crowd-funding developing a market niche research and development new and emerging technologies
6
Q
exporting products and services
A
- with the relatively low value of AU dollar and the advances made in tech and communication, many businesses of all sizes are looking to move into the export market
- need to complete market research to see how they are going to organise distribution channels
- need to consider new laws and customs as well as intellectual property restrictions
7
Q
innovation
A
- innovation is about creating and implementing new ideas
- keeps people thinking outside the box
- enhances or extends a business and provides another product or service to the economy
- it can be seen as a way to seek and develop new business opportunities // can be large innovation or lots of small steps
- can be centred on a developed point or can be incremental
- other shareholders may be able to contribute to ideas and improvements
8
Q
innovation strategies include
A
- researching the market to determine trends
- reflecting on the amount of risk
- examining what competitors are doing
- investing in research and development
- learning from failures
- testing new ideas
9
Q
crowd sourcing funding
A
- a financial service where start ups and small businesses raise funds generally from a large number of investors who invest small amounts of money
10
Q
developing a market niche
A
- many businesses can successfully grow and take advantage of opportunities by considering what they are producing, what their competitors are doing and how they can take advantage of the gaps in the market
- businesses need to narrowly define their target market and create a unique product or service
11
Q
research and development
A
- can come up with products and services or innovation
- larger companies are more likely to undertake this and develop products
- small businesses are often able to develop a service or product because of their passion and willingness to take a risk
12
Q
new and emerging technologies
A
- the emergence of online shopping has had a profound impact on businesses
- many retailers have been able to expand their customer base due to a combination of both in-store and online shopping
- other businesses have had to try to change in response to the impact of tech on their business
13
Q
leadership in change management
A
leaders need to focus on building relationships with employees, managers, shareholders and external stakeholders
- by cultivating teamwork and mentoring, encouraging diversity, developing talent and having open communication business transformation is likely to be successful
- small and medium businesses may find this change process even more difficult
14
Q
management and responding to KPIs
A
need to determine what needs to be tracked and removed to allow the business to make the right decisions
- wide range of KPIs needs to be considered
- a measurement information system may be used to ensure the analysis of KPIs is meaningful
- when relevant information is gathered the gathered info should be shared with other members of the team
- a range of strategies need to be developed to address KPIs
15
Q
key strategies to respond to KPIs
A
staff training and development staff motivation management styles and skills increased investment in technology improving quality in production cost cutting lean production techniques redeployment of resources & staff
16
Q
staff training and development
A
- staff are crucial for business success
- if turnover is higher than average for a specific industry or increases overtime this may indicate staff aren’t happy
- if absenteeism is low this may also indicate staff are unhappy
- some businesses are recognised as employees of choice where they have high levels of employee satisfaction
17
Q
strategies to ensure staff are working productively and are satisfied with their job
A
- revisiting job descriptions and specifications
- completing staff surveys
- ensuring access to training and development
- completing regular performance reviews and appraisals to identify training needs
- completing exit interviews
- ensuring employee relations are positive
- developing policies that ensure equal treatment
18
Q
staff motivation
A
- staff who are happy to work and are motivated to complete their tasks contribute to a positive environment
- regular surveys on motivation are invaluable
19
Q
ways to keep staff motivated
A
- employee recognition and rewards (financial or non-financial)
- a formal and systematic performance management or appraisal system
- policies that support a safe workspace also assist in motivation
- reviewing job roles and descriptions, staff may feel under-appreciated and bored if jobs don’t allow for learning new skills or experience variety
20
Q
management styles and skills
A
in most contemporary businesses there is an expectation employees will be involved in the decision making process (the businesses use participative or consultative management)
- when there is a deadline, service indecent or inexperienced workforce managers may use an autocratic or persuasive style
- as a leader a manager must be able to change and have the management skills to get the change completed
- the management style and skills depend on the KPIs and situation
- managers need high levels of emotional intelligence
21
Q
increased investment in technology
A
- technology is a major driver of change in business and can assist the effectiveness and efficiency of production with CAD, CAM and robotics
- can also improve sales by using websites and online stores
- if a business doesn’t keep up they will lose their competitive advantage
22
Q
benefits for investing in technology
A
- improvements in the communication speed and reach
- small businesses can compete with larger ones more easily
- able to store and share info more easily
- e-learning can allow employees to access training
- automation means that some repetitive tasks and jobs become redundant
23
Q
improving quality in production
A
businesses care about quality as it can be clearly linked to profit and success
- quality can be managed at all levels
24
Q
improving quality benefits
A
- reducing costs of wasted resources
- improving productivity by increasing the rate of production efficiency in resource use
- eliminating or reducing the number of faulty products
- reducing inspection and testing time for finished products
- reducing inventory held by a business
- allows for the use of higher profit margins
25
other ways to improve quality include
- using appropriate KPIs to measure production or declining of service
- focusing on processes used in the business
- scheduling regular meetings to discuss any issues in the system
- focusing on the product or service to ensure quality is the best possible
- making sure all teams are aware of their performance
26
cost cutting
may be used to increase effectiveness or profit
27
cost cutting methods
- reducing, reviewing and cutting all non-essential costs
- controlling and monitoring cash flow in a business
- exploring the possibility of incentives for early invoice payments
- selling assets to raise funds
- making employees redundant
- reducing energy costs by using renewable energy
- getting expert advice to look into any product or service issues
28
lean production techniques
relates to a range of measures that aim to reduce costs, waste and increase efficiency in production such as minimising inventory
- KPIs such as market share, sales, profit and productivity growth provide a business data to allow it to look at a situation in different ways to be more competitive
- can allow for businesses to respond to the market faster
29
lean production strategies
- TIM WOOD
30
redeploymenet of resources/staff
- the process of relocating resources such as materials, equipment and labour to different departments, sites and countries in order to improve efficiency, productivity and reduce wastage
- the redeployment of staff relates to moving employees from one area of the business to another > keeps employees & don't have to provide redundancy packages
31
learning organisation - overview
- developed by Peter Senge in 1990
- underpinned by four principles
- he believed these businesses who were flexible, adaptable and productive when implementing change would be successful in periods of rapid change
- business needs to support their staff in times of change
32
the five disciplines
```
systems thinking
personal mastery
mental models
building shared vision
team learning
```
33
systems thinking
- according to the theory we need to look at management as a whole and the interrelationships between all parts
- believes a long term approach should be taken, need to look at what has occurred and gain feedback on what is taking place and why it happened
- need to use system maps that show key elements of system and how they all interact
- this is the overarching discipline
34
disciplines can be focused on as either
practices (what you do)
principles (guiding ideas and insights)
essences? (those with high levels of mastery)
35
personal mastery
- businesses learn through individuals who learn
- can be defined as the discipline of continually clarifying and deepening personal vision
- involves growth
- people who have a high level of personal mastery are in continual learning mode and are aware of what they do know, don't know and what they need to improve
36
mental models
- the deeply entrenched assumptions, generalisations and images of how people understand the world
- if people become self aware of their assumptions and picture of the world they may adjust their mental models
- shared mental models also enable people to carry on meaningful conversations about the organisation
- people need to think outside the box and challenge the way they do things
37
building shared vision
- believes the central idea about leadership is the capacity to hold a shared picture of the future you want
- this can encourage and inspire others to experiment and innovate in the businesses
- needs to come from a range of people otherwise there won't be a level of commitment
- visions spread because they are reinforced as people talk and any enthusiasm is also spread to others
38
team learning
- the process where members of the team develop the team's capacity to create desirable results for all
- teams that are aligned will move in the one direction although individuals will have different skills and knowledge they will work and learn together
39
leading the organisation
- Senge believed that is required a new version of leadership where they were more like teachers or designers and takes responsible for learning in the business
- assumes the business can change to a longer term view however it may be difficult if immediate results are desired for stakeholders
40
three step change model
- Kurt Lewin was a social scientist who was the developer of this model
- also developed the five force analysis
- argued that successful change in a business required three steps: unfreeze, change, refreeze
41
unfreeze
the need for people to 'unlearn' their current behaviour
- prepares the business for change prior to it taking place
- removes resistance and prepares stakeholders
- tell stakeholders why it needs to be changed
- need to anticipate resistance in this change
- need to challenge current beliefs, values and behaviours
- aim to to build strong motivation for change
42
change
assist employees in changing their behaviour
- in this stage new practices or processes are introduced // when this happens there is usually some confusion and fear
- support, counselling and training may need to be implemented
- empower staff to be actively involved
- short term wins can also be celebrated to build on the change process
43
refreeze
put strategies in place to ensure the new behaviour is reinforced
- new policies introduced to reinforce the change
- update job descriptions for the new jobs created
- recognising employees that have made the change and rewarding them
- celebrating success to reinforce changes that have been made
- they won't stay frozen for long however as change is continious
44
strategies to overcome resistence
low risk
| high risk
45
low risk
- participative approach to implementation of change using communication, empowerment, work groups and support for those impacted on
- prefers method of overcoming change as they are likely to lead to the voluntary acceptance of change
46
low risk strategies
- two way communication between managers and employees (everyone is in the loop and employees have the opportunity to ask questions)
- empowerment of employees to make decisions (if employees are involved in the process they are more likely to take ownership of changes)
- support and incentives (support given to employees affected negatively by the change, incentives may be financial or non-financial)
47
high risk
- autocratic approach to implementing the use of force, threats and manipulation of the situation
48
high risk strategies
- threats to employees who don't agree with the change (may involve threats of loss of job, demotion or exclusion)
- manipulation of the situation (leaving some detail out or consequences of the change to push the employee in a certain direction / may make it hard for employees to make a decision)
49
managers and change
- managers are affected by change in the business as they may have to deal for themselves and may also struggle to implement change for their employees
- the management styles should be consultative or participative as employees will be affected positively
- need to implement skills and monitor changes
- senior managers may find themselves in a position of having to support and put in place strategies
50
employees and change
- the changes can be at an individual level or the level of the department or the business as a whole
- employees may find that they are happier with the changes or are stressed and concerned / change can also be daunting
51
communication can support employees by
- making sure they have the information to make decisions
- providing them opportunity to make decisions
- helping levels / managers feel comfortable empowering employees
52
customers and change
- may find their preferred products and services are no longer available or access to goods and services may change
- businesses need to be aware of the impacts on customers
- if a business doesn't adapt they may risk losing a customer or gain negative feedback or reactions from customers
53
suppliers and change
- can be affected substantially by a change in a business as they may no longer want their products or services
- this can be difficult if the supplier is a relatively small business
54
general community and change
- relocation can affect access to the goods and services / may also cause increased traffic or resource requirements or energy
- depending on the size of the business the decisions may also have larger or even international impacts
55
CSR when implementing change
- this includes ethical questions, what the business can do for society and how they will achieve social responsibility
- CSR needs to be integrated into day to day activities
- by being proactive a business shows a stronger commitment to CSR
- consider the triple bottom line
56
suppliers CSR
- includes the rights of outsourced volunteers, ethical sourcing, timely payment, hiring migrant workers and environmental impacts
- suppliers may need to develop a code of conduct
- may have to change where they source ingredients and materials
57
communities CSR
- businesses often take place in communities relations strategies to improve their public image and avoid conflicts with activist groups
- this can promote the business and establish a good reputation
58
reviewing change
- all businesses regardless of their size need to ensure any change that is done is monitored and reviewed
- KPIs provide a way to evaluate change
- businesses should ensure KPIs can be used on multiple levels to evaluate transformation
59
operations management
- core function of the business and likely to be transformed
- if a business has made changes it can evaluate with KPIs this is more effective
- monitoring the KPIs overtime ensures that a business is improving and the changes made an ongoing, lasting impact
60
employees
- can evaluate the performance and effectiveness of changes to employees and staffing
- level of staff turnover and rates of staff absenteeism are lower than similar business this indicates good employee satisfaction
- examining management effectiveness, staff motivation and feedback, complaints etc. can be done in an employee survey
- remaining staff can have pressure with increased workload if others leave the business
- if the survey has a high degree of completion it shows commitment to the business
61
financial performance
- it is important to monitor the financial performance of the business
- all businesses need to monitor net profit figures, number of sales and percentage of market share
- information needs to be broken down to make it easier to analyse
- if net profit figures indicate positively the business can expand its market share
- cash resources are important for tumultuous periods
62
leadership definition
Leadership refers to the ability to motivate a group of people in a business and direct their skills and knowledge towards the achievement of common goals.
63
CSR definition
Corporate social responsibility is when a business goes above and beyond their legal obligations, to consider the impact of their operations on their employees, the community and the environment.
64
CSR - employees
- financial counselling
- outplacement services / external employment agencies (create/update resume, apply for jobs, practice interview skills)
* both relating to when they leave the business
- hiring from the local area (reduces unemployment)
65
KPI definition
KPIs are quantifiable financial and non-financial measures of how well a business is meeting its objectives. In other words, they are used to measure progress towards business goals and are the key to its success.
66
KPIs linked to change
KPIs provide a snapshot of a business’s performance and enable it to determine if it is achieving its objectives, although KPIs must be appropriately matched to the goals they are measuring. KPIs are extremely important tools for evaluating the success of a change management initiative because unless progress can be proven, there is no point to initiating a change.
67
stakeholder definition
A stakeholder is an individual or group with a vested interest in the business and its performance.
