Management Strategies
Define 'redeployment of resources' as a management strategy.
The reallocation of natural, labour and capital materials to different areas of the business to improve their effectiveness and efficiency.
State the five principles of Senge's Learning Organisation.
1. Systems thinking
2. Mental models
3. Shared vision
4. Personal mastery
5. Team learning
"Gradual management approaches that encourage employees to accept and participate in business change" best describes...
Low-risk strategies.
State the three steps in the Three Step Change Model.
1. Unfreeze
2. Change
3. Refreeze
Why is leadership important in change?
- Helps build momentum towards successful change
- Reduces resistance to change
- Gets stakeholders working towards a common goal
Name three domestic business opportunities, and explain one.
- Multiple branding
- Franchising
- Government programs
- Online presence
Define 'the Learning Organisation'.
A business that facilitates the growth of its members and continuously transforms itself to adapt to changing environments.
State the two examples of high-risk strategies, and define one.
Manipulation: Influencing employees to follow a proposed change by providing incomplete and deceptive information about the proposed change.
Threat: Managers forcing employees to follow a proposed change by stating that they may or will cause harm to them if they fail to follow the change.
Define the 'unfreeze step'.
Moves a business to a state where stakeholders are prepared to undergo change.
Business C is looking to introduce new technology.
State a positive impact this would have one of the business's stakeholders.
Managers: financial reward for successful change.
Employees: develop experience operating new machinery.
Customers: better quality products.
Suppliers: increased demand for supplies as business becomes more efficient.
General community: potentially decreased waste due improve effectiveness of technology.
Business A has reported a decrease in the rate of productivity and an increase in staff turnover.
Which strategy should the business implement (to address both KPIs) and why?
- Staff training
- Staff motivation
- Change in management style
- Redeployment of resources
MRC encourages its teachers to attend internal and external professional development in order to develop great practitioners.
Which principle does this align with?
Personal mastery.
Explain what is meant by 'empowerment' and provide one benefit of this strategy.
Empowerment is a low-risk strategy where managers providing employees with increased responsibility and authority during times of change.
- Employees may feel valued and therefore drive the change.
- Can improve relationships between management and employees.
What happens during the 'refreeze step'?
1.Changes are reinforced and stabilised
2.Integrate changes into the normal way of doing things
3.Develop ways to sustain the change
4.Celebrate success
How could a business implement CSR measures to address employee needs during store closures?
- Offering outplacement services to help employees find alternative employment
- Offering counselling services
Business B has reported an increase in the levels of wastage. It has decided to initiate lean production techniques.
Provide one advantage and one disadvantage of lean management.
Advantages include: improved reputation, improved quality, faster rate of production, reduced materials mean reduced costs.
Disadvantages include: production may halt if suppliers are delayed, change in culture may be required, employees may feel overwhelmed, time consuming and costly to train staff.
Business A shares its mission and vision statements on its websites and posts them around the workplace for all employees to see.
Which principle does this align with?
Shared vision.
Outline two advantages of high-risk strategies.
- Ensures that change is implemented the way that the manager intended due to no employee input
- Useful in crisis situations
- Little-to-no financial costs to implement high-risk strategies
Who came up with the Three Step Change Model?
Lewin.
State one benefit of reviewing KPIs.
- Can identify a new need for change
- The results of the KPIs can drive businesses to transform (or implement changes)
- To measure the success of the transformation, it is important that they review the KPI data so the business knows if it is on the right path or if it needs to make corrections or adjustments
Business C has reported an increase in customer complaints around the quality of goods. In addition to this, the number of workplace accidents have doubled in the past month.
Which management strategy could be used to address both of these at once? Justify your response.
Define 'mental models' and provide an example of how a business has adopted this principle.
Mental models refers to challenging the pre-existing assumptions and beliefs that people have about a business and its practices.
Possible examples: McDonalds introducing health foods, K-Mart rebranding (more homeware), Colette (from handbags to handbags and jewellery), etc.
Similarities include:
- both assist in promoting change to the business
- either strategy is only effective under certain circumstances
- both aim to address employee resistance.
Differences include:
- low-risk are time consuming while high-risk can result in quick results
- unlike low-risk, high-risk strategies are effective in a crisis
- low-risk strategies are beneficial in the long-term while high-risk are short-term solutions
- prolonged use pf low-risk can improve corporate culture, unlike high-risk strategies
In the case study we looked at as a class, how could Big W implement the Three Step Change Model?
Unfreeze: prepare stakeholders for store closures and communicate the reasons.
Change: close the stores and redeploy employees.
Refreeze: introduce new policies and procedures, seek feedback, and reinforce new culture.
What are the four characteristics of a strong leader?
- Build a shared vision
- Provide ongoing communication
- Provide ongoing support
- Resolve any conflicts that may arise