U4: AOS2 (Implementing Change)

Question 1

Why is leadership important in change management?

Answer 1

• Motivates/inspires employees
• Acts decisively
• Maintains relationships with stakeholders
• Manages transition into change
• Communicates business intentions

Question 2

1) What is Staff Training?

2) How can it act to respond to KPI’s?

Answer 2

1) Increasing the skills/knowledge of employees (through on-the-job + off-the-job training) in order to increase their efficiency/effectiveness.

2)
Increased skills = Human Resources more effective/efficient = better able to achieve business objectives (eg. sales/profit)

Question 3

1) What is Staff Motivation?

2) How can it act to respond to KPI’s?

Answer 3

1) Providing incentives and facilities in order for employees to feel more valued/satisfied at work, and therefore more inclined to work efficiently/effectively

2)
- Employees motivated (pay/career/support) = more willing to work harder = improved productivity = achievement of KPIs (profit, market share, customer complaints

• Employees motivated = more valued = less staff absenteeism/turnover

Question 4

1) What is change in Management Styles?

2) How can it act to respond to KPI’s?

Answer 4

1) When a manager transitions their current management style to another in order to increase the efficiency/effectiveness of their role and employee involvement.

2)
- High staff absenteeism/turnover = change to participative style = employees feel valued/motivated = more willing to work

• Low productivity level = change to autocratic = employee given clear task = increased productivity

Question 5

1) What is change in Management Skills?

2) How can it act to respond to KPI’s?

Answer 5

1) When a manager extends their management skills in order to increase the efficiency/effectiveness of their role in directing employees.

2)
- High customer complaints = change to delegation = employee given direction = more efficient customer service

• High staff absenteeism/turnover = change to interpersonal = employees motivated = more motivated to work

Question 6

1) What is Increased Investment in Technology?

2) How can it act to respond to KPI’s?

Answer 6

1) Increasing the use of technology such as Computer-Aided Design and Automated Production Lines to increase efficiency/effectiveness.

2)
- Low productivity rate = investment in Automation = quicker rate of production = higher output

• Number of workplace accidents high = replace dangerous tasks with technology = less accidents

Question 7

1) What is Improving Quality in Production?

2) How can it act to respond to KPI’s?

Answer 7

1) Implementing strategies such as TQM, QA, or QC in order to increase the quality of products.

2)
- High customer complaints = increased production quality = less defects = less complaints

• Levels of wastage high = introduce Quality strategies = less wastage

Question 8

1) What is Cost Cutting?

2) How can it act to respond to KPI’s?

Answer 8

1) Implementing strategies to reduce the expenditures of a business in order to maximise profit and achieve objectives.

2)
- Low net profit = terminate/cut employees/processes = less production costs = higher profit

Question 9

1) What is Initiating Lean Production Techniques?

2) How can it act to respond to KPI’s?

Answer 9

1) Systematic process for eliminating waste in production in order to reduce expenditures while also maintaining high product quality.

2)
- Low net profit = eliminate waste = reduce costs = increase profits

• Waste levels high = implement lean management = low waste

Question 10

1) What is Redeployment of Resources?

2) How can it act to respond to KPI’s?

Answer 10

1) Reorganising the distribution of capital, natural and labour resources in order to better achieve objectives.

2)
- Number of accidents = replace labour with capital = reduced accidents

• Low net profit = replace labour with capital = reduced expenses = higher profit

Question 11

1) Why should a business seek new business opportunities?

2) What business opportunities can a business seek?

Answer 11

1)
- Expand profits
- Move out of declining market
- Take advantage of a growing market

2)
- Innovate/develop new products
- Find new market
- Export goods overseas
- Produce goods overseas

Question 12

1) 2 Advantages of Innovating/Developing new products

2) 2 Disadvantages of Innovating/Developing new products

Answer 12

1)

• Can become market leader
• Can generate more sales

2)

• Time/financially consuming
• Risk of product not succeeding

Question 13

1) 2 Advantages of finding new market

2) 2 Disadvantages of finding new market

Answer 13

1)

• Builds brand/customer loyalty
• Allows business to be more unique

2)

• Might lead to influx of competitors
• Idea/product can be stolen/reused

Question 14

1) 2 Advantages of exporting goods/services overseas

2) 2 Disadvantages of exporting goods/services overseas

Answer 14

1)

• Opens a MUCH bigger market to tap into = more consumers/sales increase
• More competitors = can steal ideas, use as motivation

2)

• May have to deal with tariffs/exchange rates/tax
• Language/cultural barriers

Question 15

1) 2 Advantages of producing goods overseas

2) 2 Disadvantages of producing goods overseas

Answer 15

1)

• Offshoring = cut labour costs
• Access to international market

2)

• Difficult to manage operations from Australia
• Producers might have illegal practices

Question 16

According to Senge, what is a Learning Organisation?

Answer 16

Organisation which nurtures new and expansive thinking patterns and team building in order to create the results they desire

Question 17

What are the 5 principles of a Learning Organisation?

Answer 17

1) Mental models
2) Building a shared vision
3) Personal mastery
4) Team learning
5) Systems thinking

Question 18

What does the principle ‘Mental Models’ refer to?

Answer 18

Challenging old assumptions/mindsets (mental models) in order to empower employees to create something new and better than before.

Question 19

What does the principle ‘Building Shared Vision’ refer to?

Answer 19

The development of a common goal to which employees strive toward realising. Motivates employees through creating a focus and providing energy for learning.

Question 20

What does the principle ‘Personal Mastery’ refer to?

Answer 20

Where an individual is committed to self-improvement in order to help achieve a shared vision. Mastered through practice, training and self-reflection.

Question 21

What does the principle ‘Team Learning’ refer to?

Answer 21

Where individuals learn from fellow employees and work toward achieving a shared vision as a group. Encourages open sharing of ideas and increases a businesses’ problem solving capacity.

Question 22

What does the principle ‘Systems Thinking’ refer to?

Answer 22

The integration of separate disciplines/practices into a systematic operation in order for a business to function as a whole rather than in separate parts.

Question 23

1) 2 advantages of Senge’s Learning Organisation

2) 2 disadvantages of Senge’s Learning Organisation

Answer 23

1)

• Encourages employee thinking/participation = increased motivation
• Boosts creativity, innovation = competitive advantage

2)

• Requires significant cultural change = resistance/time consuming
• Large businesses may struggle to share ideas between all members