The Management of Change

The Management of Change Changing Role of Management

Change • This is the way in which Irish managers have had to change the way they deal with their employees. • Theyhave 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 Click to play

An ever changing world Click to play

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** • Moving from being a controller to a facilitator manager • Introduce job rotation/enlargement/enrichment • Employee empowerment • Quality circles • Team work • 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: 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 asoffering 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 one 2. 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 principles 1. 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 tapas well as training over 15,000 bar staff.

How technology changes the role of managers 1. 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’ websites 3. 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 ofcontrol 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 Employees 1. 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. Ryanaircheck--‐in staff. 4. Teleworking • It enables employees to work from home and reduces the costs of hassle and communicating.

Impact of Technology on Business Costs 1. 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 Opportunities 1. Design • Can be used to design, test and manufacture new products more quickly and cheaply e.g. CAM 2. 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.

The Management of Change