Leaving Cert Business. Change Revision Notes. irevise.com Leaving Cert Business Change
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1 Leaving Cert Business Change Revision Notes irevise.com Leaving Cert Business Change
2 irevise.com All revision notes have been produced by mockness ltd for irevise.com. Copyrighted material. All rights reserved; no part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, reprinting, or otherwise without either the prior written permission of irevise.com or a license permitting copying in the United Kingdom issued by the copyright licensing Agency. 2 Leaving Cert Business Change
3 Contents Change from Controller to Facilitator... 4 Employee Empowerment... 5 Benefits... 5 Employee Participation... 6 Benefits... 6 TQM: Total Quality Management... 6 The Main Principles of TQM... 6 What are the Benefits of TQM?... 7 Technology... 8 How does Technology Change the Roles of Managers?... 8 What is the Impact of Technology on Employees?... 8 What is the Impact of Technology on Business Costs?... 8 What is the Impact of Technology on Business Opportunities?... 9 Why are Employees Resistant to Change?... 9 Strategies for Managing Change Leaving Cert Business Change
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5 Change from Controller to Facilitator PREVIOUSLY The Controller Manager was the boss - assumed he/she knew everything. Did not ask employees for their opinions. Made all the decisions. The Controller Manager would try to catch out employees. Told them where they were going wrong and how not to make the same mistake. Threatened and punished employees who broke the rules. MODERN DAY The manager is more of a coach who trains/ develops employees. Gives them skills so they can solve problems in the business themselves. Enables employees to make a much more useful contribution to the business. The Facilitator Manager helps employees if they make a mistake. They give the employees the tools to do their work better through technology, training, equipment. Encourages employees to do better and rewards them for work well done by giving them extra responsibility. Employee Empowerment This is giving employees power to make decisions on their own without having to ask the manager s permission. Employees are given freedom to decide what to do and when to do it. Benefits Better Service to Customers: if the customer has a query or complaint the employee has the power to solve the problem and does not have to wait for the manager to do so. Employee Morale Increases: as employees have more responsible jobs to do this satisfies their esteem needs. As a result they will be motivated and happier in their job. Business Effectively Utilises Employee s Skills/ Talents: the employees will not just be used for simple, mindless tasks. Their analytical and decision making skills will be used to solve problems. Managers can Concentrate on Important Matters: employees are given the power to make decisions. As a result they will have to consult the manager less and they will have more time for more important tasks arising in the business. 5 Leaving Cert Business Change
6 Employee Participation This is involving employees to a greater extent in decision making and in the running of the business. The employees, not just the managers have a say in the running of the business. How this can be achieved Work Councils: groups of employees are elected by fellow employees to a Work Council. They are allowed to have a say in business plans and strategies and help with decision making. 2. Work Directors: the business allows employees seats on the Board of Directors. The employees elect their representatives who ensure the employees of the company have an input into decision making at the highest level. 3. Share Options: the employees buy shares in the company at a reduced price. As owners of the business they have a vote in the AGM and this will incentivise them to work harder. Benefits Employee Motivation Increases: esteem needs are satisfied as the employees feel more important when they are involved in the business. Intrapreneurship: The employee may offer useful solutions to problems and how to make the company better. Better Communication: employees and managers communicate better and as a result there are less industrial disputes. TQM: Total Quality Management Aim: deliver top quality products to customers- 100% perfection and 100% customer satisfaction. Every person in the business is responsible for delivering quality to the customer. The Main Principles of TQM 1) Focus on the Customer: the customer is the most important person in the business, the function of the business is to serve the customer. Market research is conducted to see what customers want. 2) Employee Empowerment: employees are given real power, responsibility and authority. They use their skills and knowledge to make decisions needed and improve the quality of the product. Need to be carefully managed. 3) Teamwork: employees are placed in teams, this motivates them as they don t want to let their teammates down. Suppliers and the company work together as the perfect materials will help achieve the perfect product. 6 Leaving Cert Business Change
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