The Management of Change

Changing Role of Management

ChangeThis is the way in which Irish

managers have had to change the way they deal with their employees.

They have switched from controlling managers to facilitator managers.

What changes have occurred in the business world over the last 5/10 years???

Inventions that changed the world

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An ever changing world

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Changes in the Business World Technology - resulting in new products, jobs

and information; methods of selling, production and communication;

Competitors - updating their products; introducing new ways of doing business; merging with/taking over other business; moving into other markets

Rules and regulations are changing such as national rules; EU laws and world trade regulations

Workforce education standards and expectations of them are changing

Consumers - trends; income; choice; expectations

Management need to… Be pro – active; never reactive; must predict and

anticipate changes. Must be realistic. Put people and procedures in place to handle

change. Use initiative. Train and motivate the workforce by being

charismatic.

Resistance to change is caused by… Fear of loss of earnings; too much change will cause

too much work; not able to cope Belief that the change wont work or the organisation

wont benefit from the change.

How to prepare the workforce for change… Use honest and open communication Be an excellent leader Ensure the workforce have a

participation in the decision making process

Negotiate due to the new demands the change could put on the workforce

Provide training

**Strategies for managing change**1. Moving from being a controller to a

facilitator manager2. Introduce job

rotation/enlargement/enrichment3. Employee empowerment4. Quality circles5. Team work6. Total quality management

What is the difference between a controller manager and a facilitator manager???

1. Moving from being a controller to a facilitator manager

Controller FacilitatorDidactic Positive AtmosphereAutocratic DemocraticUnmotivated MotivatedHigh Staff Turnover Low Staff TurnoverLow Productivity High ProductivityLow Morale Good MoraleLow Profits High ProfitsPoor Self Esteem High Self EsteemHigh Absenteeism Low Absenteeism

Controller: Creates rigid rules that have to be obeyed; not able to deal with change; Theory X management style

Facilitator: Recognises employees talents and contributions; encourages employees; Theory Y management style

Control managers expected employees to do work without question, assumed he knew it all and didn’t ask employees for their opinions.

The facilitator manager is like a coach who gives them the skills to make decisions in the business by themselves.

The control managers job was to catch employees when they made a mistake and show them not to do it again.

The facilitator’s job is to help them when they make a mistakes such as offering advice, training etc.

The control manager kept a close eye on employees and threatened/punished those who broke the rules.

The facilitator now encourages employees to do better and rewards them for good work such as offering greater responsibility.

2. Introduce job rotation/enlargement/enrichment Rotation builds up an employees range

of skills increasing their ability to respond to change and increases motivation

Enlargement gives employees extra responsibility to make their job more challenging and interesting

Enrichment gives employees more freedom to make their own decisions

3. Employee empowerment Employees ‘take ownership’ of their jobs, so they

take a personal interest and better contribute to the firm’s success.

Given goals, the resources needed to achieve these goals and deadlines by which to achieve them; also in order to improve the work they are they doing, employees are given the authority to make changes.

E.E. can only be achieved with a facilitator-style management which provides training, support and encouragement.

Benefits of E.E. unlocks hidden talents; increases innovation and

intrapreneurship; enables the firm to respond to change; increases job satisfaction, motivation, and loyalty.

This means giving employees the power to make decisions in the business on their own without needing permission.

An example of where this is needed is someone who works in a fast food restaurant. If a customer asks her for sweet and sour sauce with the chips, he will say he cannot as it is only given with the rice. As the employee cannot make these type of decisions by themselves it sends off a very bad image.

4. Quality Circles Name given to a group of employees who meet

regularly to discuss ways to improve product or service quality

People who deal with an issue on a day-to-day basis are those who’ll see how best to improve it

Members may be from different levels and sections of the business

Employee participation means involving employees more in decision making and running of the business, sometimes called industrial democracy. It is achieved in the following ways:

1. Works Councils Groups of employees elected by their fellow workers. The group have a say in the business plans and

strategy. All businesses with more than 1,000 employees must

have one2. Worker Directors Business allows employees to sit on Board of

Directors on election by fellow employees.3. Share Options Employees can buy shares in business at reduced

price.

Benefits of Employee Participation Employee motivation and esteem increase as

they are satisfied for feeling involved in the business. Great intrapreneurship as the employees may

offer useful solutions or suggestions. There is more communication between employees

and managers which means better industrial relations.

5. Team Work Group of people working co-operatively

towards shared objectives Team can be a long term part of the

organisational structure or a special team set up for a short term purpose

To set up a team; decide objectives and deadlines; give resources; choose members a allow the team to choose their own leader who has a positive attitude, good interpersonal skills, is able to co-ordinate and is flexible

Team members must be positive, flexible, be prepared to put the team first and be responsible

Stages in a team’s development;* forming * storming * norming * performing

Benefits; involves everyone, improves motivation, creates solutions, creates mutual support, increases job satisfaction

Problems; personalities may clash, hard to get agreement at times, negative attitudes may hinder the teams achievements

6. Total Quality Management Seeks to involve all the employees in a

continuous process of improving the firm’s products and services, in order to satisfy customers’ needs more fully – designed to ensure 100% perfection and 100% satisfaction

Incorporates: Team Work Quality Assurance – ISO certification and continuous

market research and development Empowerment

TQM contains the following principles1. Focus on Customer Business makes the customer the most important person to the

business and gives them whatever they want. They do this through market research.2. Employee Empowerment Employees are given real responsibility and authority to make any

purchases or changes that they feel are needed to improve the quality of the product.

3. Teamwork Employees are put in trams to motivate them to make perfect

products so as not to let their teammates down. Also the business and its suppliers work together as a team with the

business promising to only deal with them in return for perfect materials.

4. Continuous Improvement The business strives for zero defects in their products and tries each

time to make their product better than the last.

Setting up TQM requires consultation, training, planning, agreement and setting up at all levels of the firm

To operate TQM a firm needs Quality Control, shared responsibility and constant reviewing

Aims to achieve High Quality Zero Defects Right first time production Continuous Improvement

Benefits of Total Quality Management Employees, managers and suppliers work together and the

quality of the products improve as a result which causes greater sales.

As the products are made perfectly there are lower costs as the business does not waste money on repairs or refunds.

Employees are motivated and committed to the business as they feel valued when their recommendations are accepted and empowerment satisfies their esteem.

An example is Guinness who have the vision to make their product perfect.

With raw materials they only deal with quality suppliers of barley and always check the quality before purchasing.

With the manufacture process they use trained testers and modern technology with their samples getting tested every day by quality assurance laboratory employees who check the product at every stage along the way.

In the pubs they have spent over €1 million on developing the new Guinness tap as well as training over 15,000 bar staff.

How technology changes the role of managers1. Marketing Managers can use internet to advertise which reduces their printing costs. The business can use its website to sell products which enables managers to

run international business without the hassle or expense.2. Decision- making Managers can use ICT to make decisions as they have access to millions of

pages of information. An example is downloading prices from different suppliers’ websites3. Production Managers can use CAD to design and test new products instead of manually. Managers can use CAM to control the machines in the factor which means

machines can run 24 hours without making mistakes.4. Redundancies New technology can replace employees which reduces a managers span of

control and frees up their time. An example is Ryanair who has replaced its check- in staff with online booking.5. Employee Retention and Motivation Managers can use technology to motivate employees. The internet enables teleworking which means that employees can work from

home.

Impact of Technology on Employees1. Changing Nature of Jobs New technology makes jobs easier for employees such as robots

taking the danger out of car manufacturing. However, some employees need to retrain for jobs e.g. secretaries

changing from typewriters to computers.2. New Types of Jobs Creates new opportunities for employees e.g. computer

programming.3. Redundancies Some technology has replaced a business’ need for employees

e.g. Ryanair check--‐in staff.4. Teleworking It enables employees to work from home and reduces the costs of

hassle and communicating.

Impact of Technology on Business Costs1. Increased Costs Costs a lot of money to buy the new hardware and

software and maintain it. Employees need to be trained to operate the new

technology.2. Reduced Costs New technology such as CAM allow perfect quality

products to be produced which reduces money spent on refunds, repairs etc.

Fewer workers are needed as the technology can do the jobs instead.

Impact of Technology on Business Opportunities1. Design Can be used to design, test and manufacture new

products more quickly and cheaply e.g. CAM2. Increased Sales Internet allows business to sell their products anywhere

and advertise which means it can develop into an international business and make more money.

3. Direct Marketing Business can use databases to store information about

customers and send marketing information to them e.g. loyalty schemes such as Tesco Clubcard.

4. New Products New technology gives opportunity to develop new

products e.g. mobile phone ringtones are bigger business than CD single sales.

Change All businesses must change. An example of

this is Aer Lingus who had to change to compete with low- cost Ryanair

Resistance to Change Fear of losing jobs- Employees might resist

introduction of new computers. Fear of losing power- Gardaí resisted the

introduction of the Garda Reserve. Fear of failure- Employees might fear they cannot

cope with changes. Laziness- Employees may not want hassle

involved in change.

Strategies of Managing Change A business has to change if it is to survive and so the manager

must overcome any resistance shown by the employees through the following methods:

1. Lead by Example Manager must show employees that he is willing to put in extra effort

to cope with change. He must also show that the change is important to the business.2. Communicate with Employees Manager must discuss the change with employees, the reasons it is

being brought in etc. He must also be open and honest with employees and negotiate the

change with them so as to reduce gossip and rumours.3. Train Employees Employees should be trained in all skills needed to adapt to change

which will reduce their fear of the change.4. Allow Employees to Participate Employees should be asked to give suggestions on how to improve the

change, implement it etc. If the employees have a say they are more likely to accept the change.