Change

7 reasons why communication is important

• Shared busines culture
• Shared goal- working together
• Coordination- staff understand their delegated role and objective
• Consultation- aware of issues
• Change management- need for change is explained and understood
• Conflict avoidance or resolution
• Motivation

List 5 barriers to effective communication

• Poor staff communication skills (tone of voice)
• Workplace (diffferent buildings)
• Information overload
• Organisational structure
• Business culture

List 5 causes of change

• A change in ownership (takeover or merger)
• A change in the scale of operation (growth or downsizing)
• Adverse trading conditions (recession)
• Competitor activity (launch of new products)
• Technological advances (new processes and products)
• Changes in external enviornment (consumer preference and tastes)

Identify 7 factors effective change management requires

• Securing agreement on the necessity and urgency for change
• Identifying and sharing a vision for the type of change required
• Developing and communicating a strategy for change
• Winning the support of key stakeholders
• Securing the human and financial resources to achieve change
• Monitoring progress and taking corrective action 
• Anchoring change in business culture

Why can change be resisted?

• Change is disruptive and affects the interest of stakeholders who may fear loss of control, income or the unknown
• Failure to explain the benefits of change or consult is likely to increase stakeholder resistance

List 2 ways resistance to change can be overcome

• Negotiation: effective communication, consultation and negotiation. Compromise corporate objectives to meet stakeholder objectives and secure cooperation
• Confrontation: threatened force- alienates stakeholders

List 4 types of business culture

• Power culture- centralised decision making
• Role culture- power derives from a persons position
• Task culture- power derives from an individuals expertise
• Person culture- force is on individuals and not organisational structure

What is a contingency plan?

Identifying expected responses to predictable crises

How are contingency plans drawn up?

• Potential risks and steps that can be taken to avoid it happening
• Steps to minimise impact and return business activities to normality
• The specific role and responsibilities of staff in a given crisis
• Contingency plans are tested in practice situations to assess effectiveness

Identify 3 factors affecting employer-employee relations

• Management style: theory Y orientated managers usually enjoy better relations
• Performance management arrangements: trust requires regular open two-way feedback
• Consultation- to which employees are invovled in decision making

What are trade unions?

Organisations of workers who negotiate with employers and government on behalf of their members

Define industrial dispute

A conflict between management and employees

Explain outsourcing

Process of subcontracting work to another organisation that could be done in-house

Why outsource?

• Lack of capacity/greater efficiency

Why is location a key strategic decision?

• Affects a long-term business performance
• Rent and wages in cities and urban location offers access to a large potential workforce and local market

List 4 quantitative factors affecting location

• Distribution: manufacturers and firms using bulky materials locate near raw materials or markets
• Infrastructure: social capital- road networks
• Labour costs: access to skilled workers
• Rent: land costs and the extent of local government planning restrictions

Qualitative factors affecting location

• Local infrastructure (schools, broadband and traffic congestion)

Why do businesses relocate?

• The need to change the business size (lower unti costs/improved access)