Managing Change and Innovation: The Garling Report

Innovate, innovate, innovate. How do you plan to manage change? Look at the following example to draw some inspiration for your future career.

To get cracking…

…revise pages 184-208 of Chapter 7 and really get your head around the theory in the text. Then, read this document (just kidding! Check the summary below for a guide to what you should be looking at, unless you want to read the whole thing!) and respond to the questions below.

How do real changes get managed? 

…A few years ago, a report on NSW Health Services was commissioned delivered: The Garling report.  The report is very long and extensive, and of course you are not expected to read it all (although it is quite interesting!).  This is, however, a good opportunity for you to follow the steps of change management.

One small section of the report, on pages 253-262, refers to the administrative over-burdening of Nurse Unit Managers (NUMs).  The nursing unit manager is basically the manager of a ward in a hospital.  S/he is typically in charge of the nursing staff on the ward, the resources of the ward, and many other duties listed on p. 253, article 8.75, and article 8.78 on page 254.  The report identifies a high burden of non-clinical duties (which, typically, the NUM is not trained for), compared with what a NUM should do: clinical nursing and patient care.

The report does not only point out problems – that is only half the job!  The report suggests solutions (i.e. change) and justifies these suggestions. In this case, the report suggests the creation of a new administrative role, which would be used to support the NUM.  The commissioner defines the role of such assistant very broadly, but places specific timelines for the implementation of this recommendation.

Throughout the report, the commissioner justifies his suggestions and findings by providing real examples from real participants in the study.  Some of the participants are identified by name and workplace, which means that their workplace can be aware of their contribution to the report.  This indicates a high level of confidence in their input.

The Garling report is still debated in public media and among healthcare providers.  Some are more supportive (http://www.asmofnsw.org.au/_webapp_1738025/Final_Report_Card_Issued_on_Implementing_the_Garling_Report) than others (http://www.smh.com.au/national/weve-gone-backwards-x2026-nursing-has-gone-into-the-abyss-20091118-imka.html), very much like in any change initiative.  There is no doubt that leading a change in an organisation requires a great deal of energy, resilience, and thick skin.  Hopefully, you can cope with it well, when it is your turn!

Some issues to notice and pay particular attention to here are…

• Categories of organisational change
• Forces that create a need for change
• Who initiates organisational change?
• The three-step change process
• Process consultation

Consider the following questions for discussion…

1. What sort of organisational change are we looking at here?  Is it a change in structure? In people? In technology?  Consult p. 186 and Figure 7.1 in your textbook.
2. What are the forces that created a need for change in this case?  The answer to this is in the earlier pages of the report:  page 3, article 1.5.  But you may have some ideas of your own.
3. Your textbook talks about change agents.  How does the Commissioner’s role compare with that of a change agent?  Who would answer the description of a change agent in this case?
4. Can you find evidence of each of the three steps described in the three-step change process in the report’s recommendations 23 and 24 on p. 262?
5. What evidence of consultation can you find in the report?  What sort of factors would support productive consultation, and what sort of factors would impede it?

Managing Human Resources

This week, we take a look at the future of ‘the workplace’ and what that means for managing people.

To start with…

…refresh your knowledge of human resource management on pages 154-183 in Chapter 5, then have a look at this article from The Economist.

So, to summarise…

…the columnist provides a prediction of office-life in 2012.  The forecast is rather gloomy, if you like to ENJOY your work life: people will be expected to be serious, work in the office, arrive at predictable hours, and work more than before.  No more flexible off-site work, not as much travel on the company dime, and you will no longer be able to use technology (such as video conferencing) to substitute face-to-face meetings.

The author thinks this will be the driven by high company risk aversion.  Companies would want to keep a closer look on how their money is being spent, and also to increase the strength of company culture.  The silver lining of this article is the return of the office “grapevine”: gossip will be back, big-time.

This is in direct contrast to the recently posed list of the 100 best workplaces. Google leads the charge of the ‘best’ employers, with perks and attributes in direct contrast to these predictions: ample flexibility, plenty of diversion and play, and other flexible features.  Another thing to keep in mind when reading this column is the nationality of the author.  Australians are, in general, far less formal than their counterparts in the USA.

Some issues to notice and pay particular attention to here are…

• Recruitment standards
• Retention and appraisal strategies
• Downsizing and layoffs
• Workforce diversity

Consider the following questions for discussion…

1. How much do you agree with the columnist?  Do you share her view on the future of office work?
2. If the columnist is correct, how would these new expectations affect standards expected of employees during recruitment processes?
3. If the columnist is correct, what will be the effect on retention and appraisal strategies commonly employed by organisations?
4. Would downsizing and lay-offs be a means of controlling and enforcing this “new office culture”?  What are the risks with this strategy?
5. How would these changes accommodate for workforce diversity?  Various ethnic cultures tend to adopt various standards of seriousness.  How could a company justify certain expectations, if they do not accept people from various cultures?

The External Management Environment: Carbon Tax and Housing

Are you ready to face down an angry workforce threatening to stop work? No? Read on, young manager, to see an example in action…

To begin this time…

…refamiliarise yourself with the content of Chapter 5 to arm yourself for this scenario. Then, read this article about strike action at BHP Billiton, and consider the summary and questions below.

So, to summarise…

…the article reports recent intentions to go on strike, by coal terminal employees of BHP Billiton.  The workers are engaged in negotiations over labour agreements, and have not been able to reach a mutually satisfying solution.

The negotiations revolve around several issues: wages, staffing levels, and the inclusion of middle management in the agreements.  Some issues have been resolved (such as wages), but others continue to rub workers the wrong way.

The workers have already proven that they are able and willing to go on strike last year.  When they staged a rolling strike, the company’s output was significantly reduced.  This reduction has a risky effect on the company’s share prices and public image, which can impede their performance in the future.  Therefore, the company would clearly prefer to avoid a strike.  But at the same time, the company cannot afford to grant all of the workers’ wishes: it has to consider the interests of all stake holders: shareholders, managers, customers, and public views.

As a manager, you might be involved in similar negotiations, and you are likely to find yourself considering the views of your employees, and the views of the rest of the company.  For now, let’s just focus on a few issues…

Some issues to notice and pay particular attention to here are…

• Types of power influencing the situation
• Types of power that can influence the situation
• Organisational structure
• Organisational culture

Consider the following questions for discussion…

1. At the moment, the conflict between workers’ unions and the company involves different power bases.  Which power bases would you say it involves?
2. Which power bases can this situation involve and how?  Do you think more power bases would increase or decrease the chances of a resolution?
3. From the article, what can you infer about the structure of the organisation?  Since this is a large organisation, you probably won’t get all of its aspects, but what elements of structure can you identify?
4. The organisational culture plays a big role in shaping the expectations of the workers and their approach to negotiations.  What elements of organisational culture can you identify in the reported article?

Foundations of Planning: Government subsidies in the auto industry

Back to a bit more of a sober tone this week after last time’s gaming excitement.

To begin this time…

…refresh your understanding of the principles of strategic management that are explore on pages 84-100 of the text. Once you’ve done that, read this article, consider the summary below, and then answer the questions at the bottom of this post.

In summary…

…the article covers recent debates following Toyota’s announcement of cutting 350 jobs in Melbourne.  While some (such as Manufacturing Minister Kim Carr) claim that these jobs should not be cut, and should be saved by government support, others (such as Senator Christine Milne) claim that the economic trends that have led to these job cuts are a reality that car manufacturers should adapt to.

The company representative justifies the decision to cut the jobs, and explains that they come as a response to what seems to be a long-term trend.  Therefore, it is clear that the job cuts result from planning activities (p. 98).

The decision to cut the jobs is justified by three factors: global economic problems, a high Australian dollar, and reduced demand for products.  All reasons are external to the company.  Such reasons would be revealed during the strategic planning process (p. 88-89).

Some issues to notice and pay particular attention to here are…

• Types of planning approaches evident in the article
• Company goals that can be inferred from the article
• Elements of strategic planning

Consider the following questions for discussion…

1. Based on the article, what types of planning has Toyota undertaken prior to the elimination of 350 workplaces?
2. What company goals can you identify from this article?  Which are the stated goals and which are the real goals? How can you tell them apart?
3. What elements of strategic planning are evident in the article?  What elements are missing?  Try to look further, to see if you can identify the missing elements on the company’s website and a SWOT analysis.
4. Based on the additional information on Toyota, what do you think of the job cuts?  Are they justified?  How would they serve the company?

Foundations of Decision Making: Backgammon!

Third time’s a charm! Ready to flex those managerial synapses? This time it’s all about games of chance!

Let’s get cracking…

…by reading back over the content on decision making in Chapter 3 of the textbook. Once you’ve done that, get ready to apply some lateral decision-making skills in this game.

For this one, it’s best to read this summary first…

…unless you just want to chillax with a quick game of backgammon! The real purpose here is about developing your decision-making skills, though. Decision-making is one of the most important and commonly-performed function of a manager–in other words, that is why you get the big bucks!  However, with big bucks comes big responsibility.

As you have seen in the textbook, the conditions in which managers make decisions (and also other people in this day and age) are saturated with risk, uncertainty, and inability to foresee important future events.  These conditions make classic rational decision-making, where all conditions are pre-analysed and all possible options are pre-generated and ranked, impossible and ineffective.

Managers are now expected to draw on their intuition in their decision-making, since their logic and reason can no longer be relied upon alone.  Intuition is developed over time, through practice, and through the integration of experiences into our brain.

A good way to practice and experience some intuitive decision-making is playing Backgammon.  The game requires some rational calculation skills, but also includes responding to unexpected events.  The web-link above provides you access to a game of Backgammon, where you can play as an unregistered guest.  The website also offers a tutorial, if you are not familiar with the game.

Try to play the game in two different ways:

(1)    put thought into your next move, and

(2)    empty your thoughts, and act quickly, on impulse, based on your intuition only.

Keep a record your wins and losses when using each strategy.  Also, keep in mind that most managers are not operating as solo-pilots.  They have to report back to their own superiors, and explain their actions and their results.

Some issues to notice and pay particular attention to here are…

• Your own comfort with the decisions that you make
• Your ability to justify or explain your decision
• The results of each way of decision making

Consider the following questions for discussion…

1. How easy was it for you to use each decision making strategy?
2. If you had to explain to someone how and why you got the results that you got in the game, which strategy would be easier for that?  Which strategy would you expect someone to report back to you?
3. Have you noticed a difference in the results you got, using each decision making method?
4. Considering the effort involved in thinking out the next move, were the results worth it?
5. Managers would need to make decisions in similar conditions of uncertainty (not knowing how many orders will come next week, not knowing which employee will resign or retire, not knowing how the market will react…), but much more complex ones: how many products to order, how many staff members to call onto a shift, who to appoint to a task, etc.  How do you think you would feel if you had to put cognitive effort into such complex and uncertain decisions?

The External Management Environment: Carbon Tax and Housing

Welcome back for another round of exciting management case studies!

To begin this time…

…refresh your knowledge of the various factors in the external environment that managers should be aware of as part of their job. Figures 2.1 (p. 27) and 2.2 (p. 33) in your textbook describe these in detail, so you should definitely have a closer look at them before sinking your teeth into this case. Once you’ve done that, explore the information presented in this document from the HIA, consider the summary below, and then answer the questions below.

So, to summarise…

…one of the most controversial recent changes in the Australian business environment has been the introduction of the Carbon Tax.  The tax was introduced with the intention to reduce human impact on the natural and ecological environment; however, many business groups claim that the tax will have a negative effect on their operations.

One of the industries concerned about the tax is the housing industry.  In the document you’ve just read, the Housing Industry Association (HIA) discusses various aspects of the Carbon Tax, and its impact.  The documents explains that the tax will be paid by businesses that emit more than 25,000 tonnes of carbon dioxide (CO₂) per year, and that this will lead to increased consumer costs in areas such as food, electricity, and gas.

The housing industry is concerned about the carbon tax due to the high levels of carbon intensity of many of its raw materials, particularly bricks, tiles, concrete slabs, steel, timber and aluminium.  However, the document mentions many concessions and government support programs, which are designed to reduce the negative impact on businesses.

The document explains the HIA’s position on the tax, but the tax is still being implemented.  If you were the owner and manager of a small housing construction company, this tax would be of great importance to you.

Some issues to notice and pay particular attention to here are…

• The direct effect of the tax on the business
• The indirect effect of the tax on the business, through various external entities: suppliers, customers, and others.
• Managerial responses

Consider the following questions for discussion…

1. The article describes the direct impacts of carbon tax on housing industry businesses.  What are they?
2. What indirect effects can you identify?  The tax will also impact other stakeholders, like customers and suppliers, and others.  How will they be affected, and how does that translate to the effect on your housing business?
3. What could you do, as a manager, to address these issues?  Keep in mind, you will not be the only business facing them!

Managers and Management: The GFC and ACT Business

Thanks for checking in to the first blog post for 2012 for Management: The Essentials. Want to broaden your understanding of Chapter 1: Managers and Management? You’ve come to the right place.

To start with…

…refresh your knowledge of managerial roles on pages 8 to 9 of the text, then check out this article from the Canberra Times on fee rises and costs, and the challenges they present to ACT businesses.

So, to summarise…

…we all hear about the Global Financial Crisis.  Is it really that bad?  Some sectors are obviously more vulnerable than others.  The article presented to you is very short, so this summary is not very long either.  You may find it easier to read the questions below before reading the article, to help give you context for answering them.

As the article shows, the pressures and challenges of rising fees and costs are unique to small businesses in ACT, and Canberra in particular.  The reduction in consumption and in business turnover has hit this section hard, and in combination with other government-issued changes, many jobs are now at risk.

The article you’ve just read provides a broader view of the issue: while small and family businesses in the ACT are losing customer traffic, Australian customers seem to still be spending their money in less-traditional channels.

It may seem like managers in the ACT have no direct control over what their customers do, or over what the government decides to prioritise.  But in fact, being a manager is all about being proactive, and seeking for things that YOU CAN DO in order to make a difference.  So this is your first exercise in responding to some not-uncommon challenges.

Some issues to notice and pay particular attention to here are…

• External pressures / changes
• Managerial roles
• Managerial responses

Consider the following questions for discussion…

1. The article describes several pressures that are experienced by small and family businesses in ACT.  What are they?
2. Now that you have identified the pressures, how do they affect the working environment of employees?
3. What are the challenges that managers now face, due to these pressures?
4. Which managerial role (planning, organising, leading, or controlling) is relevant to the addressing of each challenge that you have listed?

This site goes live in Semester 1, 2012

Hi there! Thanks for stopping by.

You’ve stumbled onto the blog for the dynamic and exciting first-year Australian management text, Management: The Essentials by Robbins, De Cenzo, Coulter, and Woods.

This site will be live from Semester 1, 2012, when we’ll be updating the blog regularly with a post about a topical case from the news, or an innovative company doing something bold or exciting, along with some questions to inspire discussion.