Changing Role of Management PDF

Changing Role of Management -in an ever-changing business environment, the role and attitude of management must evolve with the times -management must respond to new situations and react swiftly -businesses need to change to stay competitive -management must respond to new situations to ensure...

Changing Role of Management -in an ever-changing business environment, the role and attitude of management must evolve with the times -management must respond to new situations and react swiftly -businesses need to change to stay competitive -management must respond to new situations to ensure survival of the business Reasons for Changing Role of Management 1. New Technologies (new technologies have forced businesses to mechanise any services in order to compete with larger firms eg developments such as video conferencing, electronic data interchange (EDI), Microsoft Office etc) 2. Globalisation (organisations now face competition on a global scale both online and in store with many multi-national companies now present in Ireland, many markets are now open to foreign competition, in order to compete management in industry has to respond by improving the quality, price and range of goods for consumers) 3. Customer Satisfaction (greater focus on quality and customer satisfaction, businesses must be prepared for changes customer tastes and fashions eg environmentally friendly products, health foods and a desire for a greater knowledge about products, businesses must respond and deliver high quality goods and services that are better than their competitors) 4. Labour Force Changes (employees are now better educated, demand more opportunities and want more flexible working conditions, employees are less willing to accept authority, they want a say in decision making, organisations must respond to such changes and provide opportunities for employees in order to compete effectively and retain staff) 5. Nature of Work Changes (in recent years there has been a shift in employment from traditional labour industries (iron and steel) to knowledge-based industries and services 53 such as education and finance, the physical location of work is also undergoing significant change with many jobs now suited for working-from-home) 6. Government Law (businesses must accept and adapt to new governing laws and regulations as they are adopted eg increase in minimum wage, working-from-home legislation) 7. Economic Changes (global economic changes such as increased inflation, increased interest rates, increased Irish inward migration eg reduced housing availabilities in cities means recruitment shortages thus businesses may have no option but to enable constant working-from-home) 8. Unprecedented Events (unforeseen national and global events can have huge business consequences of which businesses must respond eg Ukraine war, Brexit, right-wing politics) Reasons for Employee Resistance to Change 1. Loss of Job Security (employees worry that changes might result in job losses, new technology might replace their job, or the business might outsource production to another country to reduce costs) 2. No Obvious Benefit (without a clear reward, managers and employees might lack motivation to change, it is important to inform them how change could improve productivity and job satisfaction or increase profits, which could result in better job security, wages or performance-related bonuses) 3. Fear of Unknown (if change is forced upon employees or announced suddenly, it can lead to fear, staff might talk negatively about the change, as they do not fully know what is going on, which can lead to worry and frustration in the workforce, a business needs to prepare for change and inform staff in advance of introducing it. Ideally, the business should include employees in the process of change, so they feel part of it) 4, Fear of Failure (employees might fear that they do not have the necessary training, skills or knowledge to adapt to challenges, and might feel unable to respond to the demands of a change, resulting in apprehension and resistance) 5. Inertia (employees who lack ambition or have become very settled in their role in the business may feel that adapting to change would be too difficult for them and they would prefer to maintain the status quo even if it is not working too well) 54 Change Management Strategies 1. Communication (communication about likely changes within a business and the impact of those changes for everyone should be honest and open, management should explain the need for the changes and the consequences for the survival or development of the company of not taking any action, staff should be consulted on their ideas and opinions before decisions are reached, this will increase staff buy-in, as they will feel they have been listened to and their fears and ideas have been considered, managers can reduce anxiety in workers by keeping them up to date with progress and how employees will be able to adapt, for example, by upskilling) 2. Rewards (if management want to change working conditions, they need to negotiate with staff and reach an agreement over the changes, management might want to shift to a 24-hour production cycle to increase output, which would impact the staff's working hours, they can offer incentives like bonuses, shorter hours, flexi-time, training or higher wages in an effort to encourage employees to embrace the change, if changes are enforced without any clear incentives, it might lead to industrial relations conflict eg members of the teacher trade union ASTI went on strike over changes to the Junior Cycle, which they felt were made without adequate attention to the issue of teachers' pay) 3. Controller to Facilitator (autocratic or controlling managers want to make every decision and feel that they know best, they are more likely to force employees to change without consulting them, very little responsibility for change is given to employees by a controller, which makes staff feel undervalued and not a part of the process, when a manager adopts a facilitator style, they include employees in the process, consulting them and listening to their opinions on changes, resulting in happier staff who are more energised to work, this builds trust and empowers staff to offer solutions, improving their ability to handle a changing environment) 4. Employee Empowerment (if a manager gives their employees the power and freedom to make decisions on their own, it gives them a sense of ownership in the change process, they feel more valued and it encourages them to seek more responsibility in the process, spreading the workload so the manager is not overwhelmed) (Unit 4 Notes page 56) 5. Adequate Resource Provision (business needs to invest in employees so that they can handle change well eg purchase new computers, software or devices, hire new workers 55 who will be able to bring in for workers to use, invest in training courses to up-skill workers, allocate time during the working day for staff to think about and work on future changes, rather than overloading them with day-to-day work) 6. Training and Development (staff might need new training or they might need to be retrained in certain areas to help them adapt to change, eg business could send all its employees on a team-building course to improve how staff work together, a lack of training or poor training courses might leave staff unprepared for the change and more fearful that it will be unsuccessful, this could lower their morale and make them more resistant to the proposed change) 7. Emphasis on Quality (a total quality management (TQM) approach looks at reducing defects and continuously improving, which creates an environment that is open to change, as employees constantly seek improvements, quality assurance maintains a desired level of quality in a service or a product for customers) (Unit 4 Notes page 57) 8. Lead by Example (how a management team approaches the change process is important, as staff look up to management and mirror their actions, a manager needs to show they are committed to the change, that they believe in it and are open to it, if they do not, staff might be confused as to whether they should go along with the change, if managers show staff, for example, by taking a training course, that they are embracing and adapting to change, staff are more likely to accept the changes too) 9. Teamwork (if management uses a matrix structure and teams work on different projects to help manage change, it should lead to greater employee commitment and purpose, can help staff to feel more involved and make them more likely to be open to change and more able to adapt to it) (Unit 4 Notes page 59) 10. Employee Participation (where the management of the organisation actively encourages its staff to take part in the improvement and overall running of the business eg work councils, employee board membership, employee share ownership plans) (Unit 4 Notes page 61) Benefits of Empowerment 1. Quicker Decision Making (employees can decide for themselves rather than having to check with a manager, this means decisions are made more quickly for customers, improving the quality of service) 56 2. Better Solutions (employees develop their skills and problem solve, becoming more responsive to the needs of customers, resulting in more satisfied customers) 3. Increased Job Satisfaction (employees become more motivated, as they feel more trusted and enjoy having the power to act on their own rather than deferring to a manager) 4. Improves Standard of Staff (employees work with extra responsibility and power, which prepares them for higher positions) Risks of Empowerment 1. Workers Unable to Cope (if empowerment is introduced without adequate training, then mistakes are made, employees might be unhappy with the extra responsibility or lack of training so they might find it too stressful) 2. Poor Decision Making (if untrained employees make too many bad decisions without adequate supervision from their managers, it could damage the reputation or service of the business) 3. Loss of Control (some managers might be cautious handing over power and control to workers, and might over-supervise them, causing employees to feel untrusted) Total Quality Management (TQM) -a process that attempts to ensure quality in all aspects of a company's operations, it puts the efforts of the business into meeting the present and future needs of its customers. -a TQM approach continuously strives towards no defects, 100 per cent perfection in production and 100 per cent customer satisfaction -employees are given the responsibility of ensuring that products meet the customer's requirements -TQM is based on a zero defects principle -TQM involves the benchmarking of standards equal at least to that of competitors -quality assurance and teamwork are central to the TQM approach (Unit 4 Notes page 59) TQM Principles 57 1. Customer Focus (customer-oriented business, business conducts market research, using surveys and focus groups to establish what its customers want from a product so they can put their needs at the heart of the process when designing or adapting a range of products) 2. Continuous Improvement (some companies now have feedback terminals to gauge customer satisfaction after each time using the store, constant improvement is important in manufacturing, a business using TQM will strive for 'zero defects' in production, measure against benchmarks for high standards, improving the overall quality for the consumer) 3. Teamwork (the idea that employees' productivity and job satisfaction increases when working in teams, they should also come up with better solutions by working together, and have a shared responsibility for new ideas, increasing the likelihood of them putting forward suggestions. 4. Employee Empowerment (for TQM to work, employees need to be trusted with the power and responsibility to make their own decisions, should lead to them feeling more valued and trusted, and therefore the consumer is dealt with more promptly, making them happier) TQM Benefits -customer focus benefit is that sales will increase as customer satisfaction increases, also prevents a business producing unwanted goods as it will have checked what the consumer wants before production starts -continuous improvement and zero defects benefit is that fewer products will be returned for a refund, reducing costs -teamwork benefits are that staff are more energised and productive, and there should be lower staff turnover -employee empowerment benefits are that staff should be more productive, and there should be lower staff turnover Quality Assurance -a business should pay attention to every stage of the delivery or production process for a product and look to improve the quality of any part of the process 58 -business might try to achieve quality symbols or marks such as the Q Mark, this is awarded to businesses that focus on continuous improvement and deliver high standards in quality and excellence to every consumer Quality Assurance Benefits 1. Increased Customer Loyalty (obtaining a quality mark can help to build brand loyalty eg if a business is awarded the Q Mark, this shows it can be trusted to meet the industry standards required) 2. Competitive Advantage (a quality mark can be a source of competitive advantage for a business, a USP if its competitors do not hold the award) 3. Premium Price (a business can charge more for a product, as it might be seen as being of higher quality, leading to increased sales eg Q Mark is a sign of quality, so with a higher standard of products, the business might be able to increase its selling price or use a premium pricing strategy, as the product is more desirable) 4. Recognised Internationally (some quality marks are recognised globally, marking it easier for a business to break into new markets eg quality symbols like the ISO 9001 are internationally recognised, so achieving an award improves a business's reputation in export markets) 5. Fewer Errors (by focusing on improving the production process, a business should have fewer defective products leaving the warehouse, fewer mistakes will mean fewer wasted raw materials and should reduce customer returns because there are fewer faulty goods to be replaced or refunded) 6. Focuses Business (aiming to achieve an award can be a great focus for a business or department, it can be used to motivate and push staff and management, leading to a sense of satisfaction upon completion) Teamwork -TEAM = together everyone achieves more -developing teams and team spirit at work is one of the best ways in which a HR manager can involve employees in a firm, encourage their commitment to it and give them a sense of purpose, togetherness and fulfil employees’ social needs 59 Team Development Stages 1. Forming (the team is brought together for the first time, individuals seek to make an impression, atmosphere is polite and courteous) 2. Storming (team leader is appointed and key rules are established, conflict may occur at this stage as members argue and quarrel with each other as they try to establish their positions on the team) 3. Norming (group starts to 'click' and accept each other's strengths and abilities, the team leader must ensure that any conflict is resolved so that the team can work towards achieving its objectives) 4. Performing (members start to work together, they act as a unit and not as individuals, responsibilities are delegated to members, tasks are allocated, leadership is established, everyone understands their role and is prepared to contribute) Business Teamwork Benefits 1. Problem Solving (members in a team can brainstorm with each other and come up with creative solutions to problems that individuals wouldn't think of alone, team abilities are often needed to solve difficult problems, there is power ibn numbers) 2. Improved Productivity (members of the team develop a team spirit and do their best to make their team efforts a success, team members do their jobs to the best of their ability which improves business productivity, quality and service) 3. Good Industrial Relations (team members may come from different departments, they mix with each other daily and get to understand each other's roles and job purpose more, this leads to better relationships in the business with increased respect for one another and fewer disputes, this spins off to lead to less labour turnover and reduced absenteeism) 4. Greater Motivation (people enjoy a greater feeling of belonging being part of a team. Morale, motivation and performance can all be improved as people see and appreciate other members' efforts, satisfying the employees social needs motivates them to work harder and stay with the business) 5. Talent Utilisation (as people work in small groups, they are encouraged to use all their skills and talents and may practice the use of those they don’t usually practice at work) 60 Employee Teamwork Benefits 1. Increased Job Satisfaction (employees experience greater job satisfaction as all members’ efforts are considered, working as part of a team allows an employee the chance of being praise by teammates which results in employee satisfaction) 2. Skills Development (as people work in small groups, they are encouraged to use all their skills and talents and may practice the use of those they don’t usually practice at work) 3. Social Needs (an employee is happier working in a team because they are mixing with other people, it satisfies the social needs of employees, it gives them a sense of belonging, teammates provide support and advice) 4. Improved Communication Skills (employees interpersonal skills advance hugely through teamwork and dealing with multiple personalities) 5. Promotion Preparation (teamwork enables employees to experience other aspects of the business within and outside of their department, helps prepare for leadership roles and working with various people and timelines 6. Improved Industrial Relations (team members may come from different departments, they mix with each other daily and get to understand each other's roles and job purpose more, this leads to better relationships in the business with increased respect for one another and fewer disputes, this spins off to lead to less stress for employees this reduced labour turnover and reduced absenteeism) Employee Participation Benefits -staff are more likely to embrace change, as they have more involvement in decision- making -staff have increased time to prepare for change, which should improve outcomes -staff have less stress and uncertainty over the impact of change -staff have a greater sense of control over their own future in the business)