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
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Change management

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
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Change management

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
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Change management

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
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Industrial relations

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
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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)
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