QUESTION 4 SEPTEMBER 2010 PREPARED BY: YEOH ZHI YEE PREEYASHINI A/P THANENTHIRAN222840

INTRODUCTION

YEOH ZHI YEE Initially JALL : independent office products retailer; 50 staff; €7mil revenue; 2,000 products; 3 branches Staff : low turnover, good morale, receive bonus yearly Managers : know all the staff and major customers, listen to suggestion & complaints Customers : reasonable prices, high quality service Suppliers : satisfied, efficient procurement procedures, paid timely Changes JALL is to be sold to LNR Clearance sale Suppliers not getting paid timely Managers not always present Staff were told that they might be made redundant Effects Staff : worried about their future, low morale Suppliers : considering changing the credit terms and future trading with JALL Customers : unsure about the future and switch to other retailers JALL : revenue decreases hugely, little inventory displayed in shops

NOTES TO REVISE (PART 1)

RESISTANCE TO CHANGE WHY??? Incomplete understanding Feeling threatened Lack of trust Differing assessments YEOH ZHI YEE

APPROACHES TO DEALING WITH RESISTANCE YEOH ZHI YEE KOTTER AND SCHLESINGER (1979)

APPROACHES TO DEALING WITH RESISTANCE

ANSWERS TO QUESTIONS

REQUIREMENT (A)(I) : WHY ENCOUNTER RESISTANCE JALL did not properly prepare for the change in ownership Fear of the unknown Dislike of uncertainty Potential loss of power Potential loss of reward Potential lack of or loss of skills Incomplete understanding of the change Threaten personal interest Differing assessment of the cost and benefits of the change by different stakeholders Lack of trust in those initiating the change YEOH ZHI YEE

EXAMINER’S COMMENT Requiring candidates to analyse the scenario material identify and explain the reasons why the staff, customers and suppliers of JALL would resist the change in ownership Required a good degree of application of knowledge to the scenario information This question was well answered. Many candidates demonstrated a sound knowledge and understanding of the reasons for possible resistance to change and most applied this well to JALL.

REQUIREMENT (A)(II) : HOW TO OVERCOME RESISTANCE YEOH ZHI YEE Participation & involvement Kotter & Schlesinger Education & communication Facilitation & support Negotiation & agreement Explicit & implicit coercion Manipulation & ‘co-optation’

EXAMINER’S COMMENT Discuss the most appropriate method of change management for JALL in overcoming the resistance to change. suitable change management model such as Lewin’s unfreeze/ change/ re-freeze model identified the processes and activities that management should undertake, such as communication, participation, facilitation and involvement. Not just to provide a theoretical answer to this question but apply the chosen model or process to JALL. Common Errors Description of the methods with limited application to JALL Description of Lewin's model with limited application

NOTES TO REVISE ( PART 2)

WHAT IS BSC?????????? it's a management system that enables your organization to set, track, and achieve its key business strategies and objectives.

many companies tended to manage their businesses based solely on financial measures. they can only report what has happened in the past — where a business has been, but not where it is headed.

TARGET SETTING Setting target goals and action plans is a process. It takes the efforts of teams to understand the baseline and the vision and to determine the most effective set of performance improvement measures (PIMs) for achieving the target goalsteams

ANSWERS TO QUESTION

REQUIREMENT (B)(I) The new management of JALL also has to ensure its continued success within the national chain. As success for any organisation is a multi-dimensional concept, JALL’s performance needs to be measured by a multi-dimensional model and the Balanced Scorecard enables All of the four perspectives could include both qualitative and quantitative measures which could be reported upon periodically. The measures chosen for the reporting would be those most crucial for the delivery of JALL’s vision and strategy. These should be reviewed regularly and other ones substituted if they have more relevance.

REQUIREMENT (B)(I) Measures and targets will be result from discussion and negotiation with those staffs who are held responsible for JALL’s performance Participative management culture Measures and targets will be result would be imposed upon those who are held responsible for their achievement Top-down culture ( autocratic)

Whatever the process by which the targets have been established, these could then be integrated into a reward system for staff. This could be done by means of performance related pay. A manager could agree (in a participative organisation) or be told (in an autocratic one) targets or objectives for a future period. If the manager achieves these objectives he/she would be rewarded. Usually this would be with extra pay but the reward can take other forms: for example, promotion and fringe benefits. Similarly, staff could be given (autocratic) or agree (participative) targets for the future which, if met, would help JALL achieve its vision and strategy. Performance against these targets could be rewarded in a way similar to those for the managers. The important link with the Balanced Scorecard is that the manager’s objectives should reflect the control measures that have been identified within the Balanced Scorecard to help achieve the organisation's vision and strategy

THE END