bus man revision

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BUSINESS

MANAGEMENTRevision for Unit 3 and

Unit 4


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UNIT 3 = THREE AREAS OF STUDY1 Large-scale organisations in context

2 Internal environment of large-scale organisations3 The operations management function

UNIT 4 = TWO AREAS OF STUDY1 The human resource management function2 The management of change

ASSESSMENT

Outcomes unit 3 =

Outcomes unit 4 =

Exam =


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UNIT 3 AREA OF STUDY ONE LSOs INCONTEXT

HOW DO WE DEFINE A LSO?Employs more than 200 peopleEarns revenue in the millionsOr has assets or more than $200m

TYPES OF LSOsGovernment departmentsCorporations public companies

private companiesgovernment business enterprises

Not-for-profit organisations

Need to be able to define, or outline the characteristics ofa LSO and distinguish between the different types of LSOs

Each of the different types of LSOs have a different purpose.


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Organisational MISSION or VISION statements are:

For each of the different types of LSOs identify a specific organisationand a possible objective

Organisational Strategies are:

Type of LSO Example Objective


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LSOs are important because they

Contribute to the economy = Provide jobs Pay taxes Contribute to economic growth (GDP) Provide exports

Contribute to research and developmentContribute to infrastructure growth

LSOs are sometimes criticised for making a negativecontribution

Downsizing

Outsourcing

Environmental damage


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ORGANISATIONAL ENVIRONMENTS

Internal environment = refers to conditions and factors within theorganisation, such as policies, processes, staff, resources, etc that the

organisation has control over

External environment = operating environment and macroenvironment, refers to those factors outside the organistion that theorganisation has little control over

OPERATING ENVIRONMENT =

MACRO ENVIRONMENT =

Organisations need to respond to external pressures. Theyshould aim to be proactive, rather than reactive to the


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HOW DO ORGANISATIONS MEASURE THEIR PERFORMANCE?

Differentiate between EFFECTIVENESS AND EFFICIENCY

Effectiveness = to what degree the objectives have been metEfficiency = how well resources have been used to achieve objectives

Use of KEY PERFORMANCE INDICATORS

ProfitabilitySales figuresPercentage of market shareProductivity compares output (in relation to inputs) from one periodof time to to another period of timeCustomer satisfaction

Staff satisfaction/moraleStaff turnoverNumber of workplace accidents

Remember to use specific factors that can be measured when writingabout KPIsNote: staff surveys, or customer surveys, are not KPIs. They are thingsused to measure a KPI


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STAKEHOLDERS

There are many stakeholders in LSOs a stakeholder is

Often stakeholders have conflicting interestsFor example:


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from the 2008 exam. Question 1

Australian Mineral Resources (AMR) and Jerrilderi Mining have been

negotiating a merger with the aim of achieving economies of scale. TheChief Executive Officers (CEOs) of the two mining companies have beenin discussion over the past three months.

The focus of these discussions has been the potential problems of merging two well-established companies

with different cultures the possible structure of the new entity the content of a joint mission statement the adoption of a single planning process at the three levels.

a. Define mission statement. 1 mark

b. i. Define organisational structure.ii. Describe the key features of a matrix organisational

structure. 1 + 2 = 3 marks


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Preparation for the examination

The best responses used specific details to answer the questions asked,

rather than providing prepared answers to questions that had beenasked in past examinations.

Students who had studied all areas of the course were able toprovide relevant and detailed answers.

It was evident that many students had consulted previous assessmentreports and used the advice provided to prepare for the examination. Itis good examination preparation to practise by using past examinationquestions; however, students must also be able to adapt theirknowledge to questions that ask for information in a different way, orwith a different emphasis.

From the 2008 examiners report.


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Question 1a:

The following is an example of a good response.

A written document which outlines an organisations overall reason

for existence. Its strategies and plans are then based on achievingthe objectives in the mission statement. It provides the employeesand organisation with direction eg. to provide our clients with highlevel of service.

Question 1bi:

Organisational structure describes the way that an organisationchooses to divide the labour and coordinate the activities ofindividuals and groups within the organisation.When answering questions that require definitions, students shouldensure that they do not use the same words that are in the question.For example, when asked to define organisational structure,responding with is the structure of theorganisation will not score any marks.


The way in which the roles in a business relate to each other, outliningthe direction of delegation and communication. Outlines the ways in


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Question 1bii:

In the matrix structure, teams are formed for specific projects or tasks.Team members are assigned from their department to perform aspecific role. They are responsible to both their team leader anddepartment manager.

Some students confused the matrix structure with other structures anddid not score any marks.


A matrix structure exists when an employee is a part of a specific groupor team, but remains part of a functional area. Its key features are henceeffective communication both upwards and downwards in theirfunctional area (eg. Human resources) and

across in their team. Employees are hence accountable to both a teamleader and a functional manager. Skills are pooled across theorganisation and it is characterised by synergy within the organisationand flexibility.


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UNIT 3 AREA OF STUDY TWO INTERNALENVIRONMENT

The internal environment of LSOs includes the factors within theorganisation. These factors are often things that the organisation hascontrol over (as opposed to the factors in the external environment,which they may have little control over).

The internal environment includes such factors as:

Management roles

Management structures

Corporate culture

Policy and procedures

Management styles

Management skills

ESM


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MANAGEMENT ROLES

These include PLANNING ORGANISING LEADING and CONTROLLING:

POLC

PLANNING - Three levels:strategic (long-term)tactical (medium- term)operational (short-term) also known as frontline planning

PLANNING is the process of setting objectives and deciding onmethods to achieve them.

A typical PLANNING PROCESS or MODEL IS:

Set objectivesAnalyse current situation (SWOT analysis)Develop alternativesImplement an alternativeMonitor/check feedback

SADIM


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ORGANISING the coordination of resources and tasks to achieveobjectives

Organising includes:

Determining work activitiesClassifying and grouping activitiesAssigning workDelegating authority

LEADING the process of influencing/motivating people to worktowards the achievement of the organisations objectives

Leadership is closely related to the skills of

communication/motivation

Leadership can be transactional or transformationalDifference??


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CONTROLLING the process of evaluating performance and takingcorrective action to ensure that set objectives are being met.

Controlling compares planned or forecasted achievements with actualperformance. Management needs to ask the questions: Did weachieve what we set out to achieve? How can we do things better?

Controlling helps with the development of new policies, procedures

and objectives for the future

Control Process:

Establish standards or benchmarks for performanceSelect ways to measure performance (use KPIs where appropriate)Measure performanceCompare to forecast or planned objectivesTaking corrective action where necessary


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2008 exam question 1c 4 marks

Identify and describe the three levels of planning.

Strategic: Long-term planning for 35 years dealing with the overalldirection of the company and done by top level management. Tactical: Medium-term planning 12 years implements the strategicplan and done by middle management.

Operational: Short-term planning, day to day planning, done bysupervisors or line managers.

In some text books the three levels of planning are identified (inorder) as strategic, operational and frontline the definitions remainthe same.

Students who did not score full marks for this question either did notinclude the level of management involved or did not specify atimeframe for the level of planning.


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The three levels of planning are strategic, tactical and operational

types of planning.

The strategic level of planning is typically conducted by seniormanagers and refers to the development of long term goals andstrategies, which generally take over a 3 5 year timeframe. Astrategic plan for Safeway supermarket could include expanding the

market share by 5% over a 3 year period.

The second level of planning is tactical planning. This is generallyconducted by middle management in order to create objectives andplans for a 1- 2 year period. Tactical planning usually refers to thegoals of each department rather than the overall organisation. A

tactical plan for Safeway could include deciding to renovate a storeof stock a new food product.

The third type of planning is operational planning, which isundertaken generally by frontline managers. Operational planning isfor short-term goals to achieve on a daily or monthly basis.

Operational planning for an organisation such as Safeway can entailsetting daily targets for staff.


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MANAGEMENT STRUCTUREor ORGANISATIONALSTRUCTURE refers to the ways in which an organisation chooses todivide the labour and coordinate the activities of individuals andgroups within the organisation.

Management structure is aboutauthority relationshipsCommunication linesDecision-making authority

Management structures can be centralised (where the decision-making and authority occurs mainlyat the top) These type of structures have a narrow span of controlDecentralised (where the decision-making and authority is spreadthroughout) These type of structures have a broad span of control


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There are three main types of organisational structures

Functional Structure

Divisional StructureMatrix Structure

FUNCTIONAL STRUCTUREThis is structuring the activities and tasks in the organisationaccording to the various functions that happen. Common functions

include (but arent limited to) HR, Accounting/Finance, Operationsand Sales

DIVISIONAL STRUCTUREThis is structuring the activities and tasks in the organisationaccording to areas other than function. Common divisions include

(but arent limited to) Product, Customer Base, Geography,Processes

MATRIX STRUCTUREThis is structuring the activities and tasks in the oganisationaccording to functions, but then extending it (or overlaying it) to

bring together specialists from different functions to work on specificprojects


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You need to be able to:

Identify and explain the characteristics or features of each type of

structure. For example, a divisional structure by product organisesthe tasks/activities of the organisation according to the variousproducts that it produces. Each division would have its ownfunctions (marketing/sales, HR, etc) within it

Identify the strengths(advantages) and

weaknesses(disadvantages) of each structure. For example, aMatrix structure is useful for responding to rapidly changingconditions and promotes team work. A divisional structure maymean that there is a duplication of resources

Acknowledge that most LSOs utilise more than one type of

structure at any given time

Organisations regularly restructure in order to better meetorganisational objectives


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On this page draw an example of each of the three mainorganisational structures.


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KEYFEATURES

ADVANTAGESDISAVANTAGES

FUNCTIONAL

DIVISIONAL

MATRIX


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CORPORATE CULTURE refers to the values, ideas,expectations and beliefs shared by the members of the organisation

There is OFFICIAL corporate culture shown through the companyspolicies, slogans and objectives.

Sometimes the ACTUAL corporate culture is the same as the officialcorporate culture. Sometimes the ACTUAL corporate culture is notalways what management is striving for.

There are also things that demonstrate a more accurate culture thingthat are shown through the behaviours, language used by employees,the management style used, the way employees treat colleagues andcustomers, and to some extent, the dress code.

Each organisation has a unique culture. Organisations often try tochange or develop their culture in an effort to meet objectives morereadily. If organisations want to make their culture more positive, theyneed to work on the ACTUAL culture, as well as the OFFICIAL culture


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PHRASES TO DESCRIBE CORPORATE CULTURE

A positive cultureA negative cultureA culture that values employee participationA culture that rewards loyaltyA culture that encourages and supports creativity and risk takingA culture of intimidation/bullyingA flexible cultureA culture of innovation


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Management has a critical role to play in developing anorganisation's corporate culture

How do organisations change/maintain their culture?

Firstly, establish what the desired culture is, then

Ensure the official culture is entrenched in policies and objectives

Ensure management role model the expected behavioursEnsure staff have training that reflects the values of theorganisation

Reward staff who demonstrate appropriate values

Recruit staff who fit in with the values of the organisation


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2008exam question 1d. Discuss two indicators ofcorporate culture the organisations would haveconsidered. (4 marks)

Indicators include: the prevailing management style attitudes of management to staff and staff to management relations among staff budgets and other statements of priorities

style of dress and language rituals symbols task or people orientation.Students needed to select two indicators and discuss them. Forexample, rituals. These express and reinforce the key values and

can include recognition and award ceremonies, weekly Fridaydrinks, uniforms or identification badges andhow new staff are introduced.

The following is an example of a good response where thestudent has incorporated the case study. Students whoincorporated the case study were able to give a much better

response and, as a result, scored highly.


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Corporate culture is the shared beliefs of an organisation which caneither formally or informally guide employee behaviour.

Staff turnover can indicate corporate culture that its the number ofemployees leaving on organisation in a given time. This is becausethe rate at which people leave an organisation may indicate thelevel of staff satisfaction, which is intrinsically related to corporateculture. If the corporate culture is positive then morale andmotivation of employees is generally high AMR and Jerrilderi Miningmay have noticed that one of the companies had a high staffturnover and the other had a low staff turnover and hence observedthe impact that this may have on the employees when they mergeas a potential problem. Uniforms may also indicate the corporateculture because this is tied to public image, while uniform isgenerally dictated by management, it may reflect the way in whichemployees conduct themselves when dealing with each other orsuppliers. If AMRs culture is reflected in the fact that theiremployees take pride in their uniform then Jerrilderi corporateculture may conflict with this.


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Policy and ProceduresDifference between the two?

Examples:

Policies and procedures assist a LSO achieve its objectives

Policies and procedures need to be reviewed regularlyOrganisations should followpolicy development process


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Management StylesIdentify three characteristics/features of each styleIdentify one advantage/disadvantage of each styleAutocratic

Persuasive

Consultative

Participative

Laissez-faire

Management Skills


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Management SkillsCommunication

Delegation

Negotiation

Teamwork

Problem solving

Decision making

Time management

Stress management

Emotional intelligence


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Ethical and Socially Responsible Management

Ethical Issues Social Responsibility Issues


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UNIT 3 AREA OF STUDY THREE OPERATIONSMANAGEMENTWhat is operations management?

What are the elements of an operations system in a LSO?

What Operations Management Strategies can a LSO use to optimiseoperations?

Identify some ESM issues that affect Operations Managers


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2008 exam Question 3

Classic Cleaners specialises in supplying Australian households with

washing machines and dishwashers. The company is planning toreorganise its operations as it prepares for the introduction of newmodels. The Operations Manager, Connie Lemnos, is investigatinghaving some product parts manufactured in China and shipped to itsAustralian factories.

a. Identify and describe

one quality strategy one materials management strategy one facilities and design layout strategy

that could be employed as a result of the introduction of the new modelsat Classic Cleaners.


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Quality Control, TQM and Quality Assurance: Quality Controlinvolves the use of a series of physical checks at different stagesof the production process to ensure that products and services

meet designated standards anderrors are eliminated post production.

Just In Time Make or Buy, ABC Inventory Analysis: Just In Time iswhere the organisation determines the lead time for each stockitem and orders are placed to allow the new stock to arrive Just In

Time to avoidrunning out of stock.

Functional, Product or Fixed Position: Given that Classic Cleanersare manufacturing white goods, the product layout, which iswhere the components are arranged in progressive steps in a

production line process, would bean obvious choice.

Students were able to give a good response to the quality andmaterials part of this question, but were not able to give a goodresponse to the facilities and design layout part. Students need to

ensure that they answer all components of the question asked.Followin is an exam le of a ood res onse.


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Quality is a standard which meet the needs and wants of the customer.Classic Cleaners could implement quality assurance, which is acertification by an external body which shows that the quality of Classic

Cleaners production process and washing machines and dishwashersmeet a set of predetermined quality standards eg. ISO 9000. This wouldbe necessary for ClassicCleaners so that sales do not suffer as a result ofcustomers hearing that the new parts of the new model are manufacturedin China and hence may not be of equal quality.Materials management is the planning organising and controlling of all

activities relating to the resources required in the production process.Just-in-time materials management should be adopted as a result of thenew models as because theyre new, the business shouldnt have toomany resources on hand in case they end up being unsuccessful and theirproduction is discontinued. Just-in-time means that resources required forproduction are only delivered when they are needed to reduce waste and

costs of storage.Facilities design and layout refers to the way an operations system isorganised. They should adopt a process layout which is required fororganisations which produce a variety of products as they do producedifferent models. Their work stations should be grouped according tofunctions eg. Assembling to be done in one place and sticking of stickers

in another to allow for high levels of productivity and efficient flow of thenew machines throu h the roduction line.


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UNIT 4 AREA OF STUDY ONE HUMAN RESOURCE MANAGEMENT FUNCTION

What is HR?

The connection/relationship between HR and the objectives/strategy oforganisations:

Organisational objectives outline what the organisation wants toachieve and employees are a key resource that help the organisationachieve its objectives. Good HR strategies maximise the capacity ofemployees to carry out their duties and help the organisation meet itsobjectives.

KEY EMPLOYEE EXPECTATIONS


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MOTIVATING EMPLOYEES

How do organisations motivate their employees to get the best out of

them?

Need to provide extrinsic and intrinsic rewards.

Organisations can apply particular MOTIVATION THEORIES to try tomaximise motivation. A motivated employee will be more productive

than an non-motivated employee.

THREE theories you need to be able to write about

MASLOWS HIERARCHY OF NEEDS

HERZBERGS TWO-FACTOR (MOTIVATION-HYGIENE) THEORY

LOCKES GOAL-SETTING THEORY


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MASLOWS HIERARCHY OF NEEDS THEORY

The basic idea of this theory is that employees have needs, and these

needs must be satisfied in a certain order. Employees are mostmotivated when they have their highest level (self-actualisation) needssatisfied:

Self actualisation fulfilment and personal growth

Esteem needs respect and sense of accomplishment

Social needs love, affection, sense of belonging

Safety and security physical and emotional

Physiological needs food, shelter, clothing

HERZBERGS TWO FACTOR (MOTIVATION/HYGIENE) THEORY


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HERZBERGS TWO FACTOR (MOTIVATION/HYGIENE) THEORY

This theory is similar to Maslows, except that it claims that employees havetwo levels of needs hygiene needs and motivation needs

HYGIENE NEEDS refer to the conditions under which the employees work andinclude such things as pay, job security, policies and procedures, interpersonalrelationships.

MOTIVATION NEEDS refer to challenging work, recognition, a sense ofachievement, responsibility and opportunities for advancements.

Satisfying hygiene needs does not lead to motivation, but does lead toemployees not being dissatisfied therefore organisations should addressthem

Satisfying motivation needs does lead to more motivated employees_____________________________________________________________________

LOCKES GOAL SETTING THEORY

The basic idea of this theory is that workers are motivated if they have cleargoals and regular feedback. The goals need to be clear, specific, challenging,but not overwhelming. Feedback needs to be regular, recognise effort andmay modify the goals


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You are likely to get a question that will ask you to apply a motivationaltheory the examiners may specify a particular theorist, to a givensituation.

From the 2008 exam:

Question 2

Country Foods is a food processing company with plants in Bendigo,Ballarat and Geelong. It is a major employer in these regional centres.

Due to the severe drought in Victoria, Country Foods has made abusiness decision to close the Bendigo factory. The Human ResourceManager, Bob Spiteri, is responsible for implementing the closure inrelation to staffing matters. The companys CEO has contacted BobSpiteri as he is concerned about possible industrial relations action thatmight impact on the companys stakeholders.

Bob Spiteri is concerned about the impact of the closure of the Bendigofactory on staff at the Geelong and Ballarat plants.e. Describe how an appropriate motivational theory would assisthim to maintain staff morale. (4 marks)


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Theories could include Maslow, Herzberg, McClelland, Alderfer andMcGregor.In the past, Maslows lower order needs (physiological and safety)

have been met at the Geelong and Ballarat plants.

However, with the closure of the Bendigo plant, job security, which isa safety need, may become significant to the staff at these twoplants. It is therefore important that Bob addresses this by reinforcingthe safety of their jobs as a priority in the immediate future.

Any attempt to motivate staff through social or esteem needs is likelyto be unsuccessful until the safety needs of staff have been satisfied.

Many students gave a rote-learned response about a motivationaltheory and therefore did not answer the question. To obtain full

marks for this question, students needed to relate the motivationaltheory to the case material.

Average mark for this question was 1.8 out of 4.


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Maslows hierarchy of needs outlines a 5 stage theory ranging from

basic needs (food and water) to higher order needs such as selfactualisation. While the employees at the other factories may feelslightly affected by the closure, Bob could motivate themaccording to Maslows theory. According to Maslow, the second highestneed is esteem that is for status, recognition or attention. As a HRManager, Bob could hence conductperformance appraisals with

employers which is where their ability to perform their job is observedand evaluated and then Bob could provide feedback. This would involvesetting goals to improve their performance, employees could bemotivated to work more productively, while the recognition by Bob ofwhat they are doing well would satisfy their esteem needs.Furthermore, to help employees to achieve self actualisation, that is

the highest need which is a desire to reach their full potential andutilise all of their talents and capabilities, Bob could organise for themto participate in workplace training so that they will develop newskills and hence aim to achieve their full potential. According toMaslow, satisfying these needs will ensure that morale is maintained.

Hence, this response was able to include specific HR strategies thatwould enable different levels of Maslows hierarchy to be achieved, thus


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How can a HR Manager apply Maslows hierarchy of needs?

MASLOWS LEVEL HR STRATEGIES

Self Actualisation Performance appraisalJob design

Esteem Needs Clear promotion path, awards, positivefeedback

Social Needs Team work opportunities, social gettogethers

Safety and Security Needs OH&S policies, job security

Physiological Needs Reasonable pay and conditions


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EMPLOYMENT CYCLE:

establishment

maintenance

termination

EMPLOYEE RELATIONS


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EMPLOYEE RELATIONS

What is employee relations?

Centralised system?

Decentralised system?

Advantages and disadvantages of each:

Key terms you need to be familiar with:

Collective agreements, arbitration, Awards, conciliation, enterprisebargaining, industrial action, negotiation, mediation, NES, Fair WorkAustralia


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UNIT FOUR AREA OF STUDY TWO MANAGEMENT OF CHANGE

Change is the new constant

Change means that the organisation alters/changes/modifies itsstructures, culture and/or objectives

Pressure on organisations to change can come from the external or

internal environment

Organisations can bepreparedfor change or reactto change. They

can beproactive or reactive. Obviously, a proactive approach is

INTERNAL PRESSURESFOR CHANGE

EXTERNAL PRESSURESFOR CHANGE(OPERATING)

EXTERNAL PRESSUREFOR CHANGE (MACRO)


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DRIVING AND RESTRAINING FORCES

Driving forces are things thatpush the change along, like thepressures for change on the previous slide.

Restraining forces are things that work against the change, things thatare resisting the change

RESTRAINING FORCES INCLUDE


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So, how do organisations manage change? They need to be proactive(prepared)When they decide to implement change they can use a changemanagement theoryto minimise the resistance to the change and

maximise the success of the change.

Kotters Eight Steps to Successful ChangeSTEP NUMBER: INVOLVES:

1

2

3

4

5

6

7

8


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2006 exam Question 3Joe Johnson owns and runs Slippery Shirt Company. He makes largeprofits by using sweatshops (where pay and conditions are well belowthe industry award) to sew his shirts. Joe is retiring and passing the

business to his son, Jack, who is determined to bring in policies that treathis staff and contractors in a socially responsible manner.

a. Define the following terms.i. policyii. organisational change

1 + 1 = 2 marks

b. Describe an appropriate change management theory SlipperyShirt Company could use to implement the new policies.3 marks

c. Discuss how two elements of the external environment ofSlippery Shirt Company are pressuring the organisation tochange its policies.3 marks

Total 8 marks


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A policy is a written statement of the processes and procedures, rulesand regulations and responsibilities and strategies that an organisationwill follow.

A good student responsePolicy is a written document outlines expectations in an organisation.Policies outline acceptable behaviour and they guide staff actions.Policies are designed to create uniformity and formality in anorganisation.

80% got the 1 mark for this question

Change is the process of taking the existing organisation and altering ortransforming it to establish a new or altered form of the organisation. Itcould be because of internal pressures such as culture changes orexternal pressures such as globalisation.

A good student responseOrganisational change is any alteration to the internal businessenvironment. Organisational change occurs as a response to pressures inthe external/internal environment. Organisational change must occur foran organisation to remain competitive.

Using Kotters model identify actions that may be taken that fit each


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Using Kotter s model, identify actions that may be taken that fit eachstep.

STEP NUMBER: ACTIONS:

1 establish a senseof

necessity/urgency

2 form ateam/group to guidethe change

3 create a

vision/strategy4 communicate thevision

5 empower thepeople to fulfill the

vision6 recognise andrewardachievements

7 consolidateimprovements

8 institutionalise the

Elements of the external environment that would have pressured


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Elements of the external environment that would have pressuredSlippery Shirts to change are social pressures and changes incommunity attitudes. Customers have a much higher awareness oforganisational behaviour and are placing demands on them to behavein a socially responsible manner. Increasingly, customers are basing

their purchasing decisions on factors other than purely financialreasoning.

The legislative environment is another element of the externalenvironment that has placed pressure on Slippery Shirts. Parliamentsare passing many laws relating to industrial relations and businessesare expected to meet those minimum or award conditions for their

employees.Many students used social and political elements to answer thequestion and handled it well. Other elements of the externalenvironment that could be discussed included competitors and lobbygroups. Some students used employees and, as they are not external,these students did not score marks.

A good student responseSocial and legal factors of the macro environment force Slippery Shirtsto change policy. They have no control over these factors and mustchange in order to not be negatively affected by them. Social attitudestowards sweatshops and the general opposition to the perception of

slave labour means that companies must provide adequate conditionsfor workers or face public condemnation. Likewise, legislation involving


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Effectively managing change management

There are lots of things management can do to manage changeeffectively. Not only can they can make use of a change management

theory (Kotter), but they can use a variety of strategies to minimiseresistance to the change. Some of these strategies are low risk andsome are high risk clearly, high risk strategies carry the danger of notworking and actually damaging working relationships.

LOW RISK STRATEGIES may include:

HIGH RISK STRATEGIES may include:


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SIGNIFICANT ISSUES IN CHANGE MANAGEMENT

You are required to have a detailed knowledge and understanding of oneparticular issue in change management. The issue we have examined isGLOBALISATION

Globalisation refers to organisations increasingly competing on a world-wide basis. Advances in technology, communication and distributionhave led to an increase in international competitiveness.

Globalisation provides both opportunities and challenges to AustralianLSOs the potential for more customers, but also increased competition.

ROLE OF LEADERSHIP IN CHANGE MANAGEMENT

Kotters model for managing change effectively is based on three criticalelements: thorough preparation and planning clear communication cooperative participation with all stakeholders

Leadership skill are critical. Empathy, listening, ensuring employeesfears are considered. Managers who do this will experience less


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IMPACT OF CHANGE ON THE INTERNAL ENVIRONMENT

Change will often have significant effect on the internal environment ofa LSO: possible effects include

outsourcing

flatter organisational structures development of work teams

changes in corporate culture

changes in HR processes

changes in Operations Management processes

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