Innovation and Change II
BSBINN601A :Manage Organisational Change
Assessment Task 1
35% Marks
Due in Week 5
Background Information:
As businesses and organisations grow and evolve changes in direction
inevitably occur. As a prospective business manager across any industry,
you should be aware of what is happening in the local, national and global
market around you, how to read and analyse a Strategic Plan, and how to
communicate changes to a wider audience.
Choose ONE of the following websites:
http://www.powerhousemuseum.com/about/aboutStrategic.asp
http://www.newcastle.edu.au/service/strategic-planning/
http://main.workcover.com/site/workcover/workcover/strategic_plan_and_a
nnual_report.aspx
http://www.austroads.com.au/cms/Strategic%20Plan%202007-2012.pdf
http://www.nla.gov.au/policy/itplan.html
and open the Strategic Plan for that organisation. Develop a report that addresses what direction the organisations are moving in into the future so that you can explain them to your staff (classmates).
Requirements:
1. Identify what the organisation sees as the current and future strategic change requirements and future directions against their existing policies and practices.
2. Identify what they perceive as the external trends that impact on organisational objectives and whether they result from performance gaps, opportunities, threats.
3. Explain how they prioritised the changes and identified any specialist requirements.
Instructions to Follow:
1. Please submit it in Week 5.
2. You can form a group of Max 3. However anybody prefers to submit alone can do so.
3. For each day late submission (including Weekend and Holiday)-there will be 10% penalty from the scored marks (unless you got Doctor’s Certificate to prove you were sick).
4. If you work in Group-make sure that your name is included in the Cover Page of the Assignment. If you fail to make sure that-later on no claim/excuse will be accepted.
SOLUTION
Work Cover SA’s strategic plan 2011-16
The Compensation Scheme or the Scheme and Rehabilitation of the workers in Southern Australia are managed by WorkCoverSA.They, in case of injury caused to the employees or workers at the workplace, providethem protection and rehabilitation.
The mission of Work Cover SA is to accomplish the paramount outcomes for workers who have injuries, the employers and the community of South Australia.
The Work Cover SAtargets to compensate and rehabilitate the workers with injuries due to injury at then workplace, and then return them a workplaces and community that is safer.The workerswith injuries can get well and also get back to the normal life, just the positive attitude and the correct support is required. The key objective of the scheme is to surge the return to work rates of the South Australian workers. This is the responsibility of everyone working in this organisation and they play their role properly.
The organisation manages the South Australian workers’scheme of compensation and rehabilitation in the best interests ofaround 50,000 employers and also around 430,000 employees. There are near about 70 employers who are self-insured, and also the State-run public sector interventions, which under similar laws, manages their claims on their own. The organisation was set up under the WorkCover Corporation Act 1994, and is managed by a Board of Directors that was appointed by the South Australian Governor. Philip Bentley is presently the chairperson of the organisation.
The organisation comes up with strategic plans every five years. Observing the past performance of the strategic plans, it can be expected that the current plan is a good one and it would help the organisation to fulfil its objective of providing compensation and rehabilitation to the workers that are injured in the workplace.
The strategic plan for the period of 2011-16 was published in May 2011 by the Work Cover SA. The plan consisted of four main objectives that would help the organisation to define their success in the future. The goals of the strategic plans are workers who have suffered injuries should continue at work or come back to work according to their supreme capacity, the employers, the workers and the providers should be able to meet up to their obligations and then work together actively to deliver a proper prevention of workplace injury and the management of injury outcomes, and finallya Schemewhich is financially sustainable,specialised, an organisation that is achievement-focused (Australian Government 2011).
The success of the strategic plan would be measured in the following ways. There has to be a gradualincreaseof 3% in the return to work rate every year at the 26th, the 52ndand the 104th weeks. There also needs to be an improved engagement between the worker and the employer, againthere has to be an increase of 5% in self-insurers who would be achieving renewal registration in 3 years and the appropriate actions also have to be undertaken on 95% of section 58B/C. When this is achieved, it can be assumed that the first and the second goals are achieved.
To achieve the third goal there has to be an 80% ratio of scheme funding has to be achieved by the year 2014-15, and then further increase to the range of 90-110% by June 2017.
The final goal of becoming an achievement-focused and professional organisationcan be achieved when the previous goals are fulfilled. Also, there needs to be efficient management of injury and OHS at their workplace that has to be aligned with self-insured standards and application of acombined organisational competence framework by the end of 2013.
The organisation has set up twelve strategies in order to achieve the already set up goals in the years 2011-16 achieve these goals over the next five years, we will focus on delivering the following 12 strategies which consist ofeffective application of the agreed plan from the Walsh report in 2010, implementing a neweremployer premium payment system, information on leverage, technology and communication systems and the capability to support business outcomes, influencing behaviour of high cost and/or risk employers to recover outcomes, improving the skills, services and engagement of people who contribute for the delivery of better outcomes for workers who areinjured in workplace and their employers, providing leverage training prospects and labour market gaps for the advantage of injured workers and their employers, focusing on education and regulation for the employers, workers and providers in meeting their legislative obligations, undertaking a new legal and agent contract process, maintaining a judicious risk-based investment package, ensuring that the employers are registered and pay their appropriate align, levy, develop and enhance Work Cover’s capability of organising and finallycontinuously improving the organisation’s workplace safety, health and well-being systems(Works Cover SA 2011).
Over the past one year, the organisation has been working well to achieve its objectives. It has been able to achieve various aspects of the strategic plan by the end of the previous year. Some of the achievements in the year 2010-11 are funds at the scheme on30 June 2011 was 64.8 per cent, the average rate of levy wouldbe remaining constant at 2.75 per cent in 2011-12, the organisation alsoattained an actuarial release of an amount of $41 million on a contraryof a one-year target which was of $76 million. The actuarial release of $330 million was achieved against the organisation’s three-year cumulative strategic plan target which was of $225 million, the organisation’s outstanding claims liability had beenincreased to $2.66 billion, the organisation’s portfolio of investment also recorded a return on investment of about 10.4 per cent, Work Cover’s unfunded liability reduced to $952 million, after a profit of $30.2 million, there were 18,634 claims incurred from workers employed by registered employer, there were 6,036 income maintenance claims incurred from workers employed by registered employers, 9,350 claims incurred from workers employed by self-insured employers, and there were 2,320 income maintenance claims incurred from workers employed by self-insured employers, also there were 6,380 active income maintenance claims at 30 June 2011, and approximately 77 per cent of injured workers either did not lose time off work or returned to work within two weeks of their injury.
Reference list
Australian Government, 2011, Australian National Preventive Health Agency, Commonwealth of Australia, Strategic Plan 2011-2015.
Works Cover SA, 2011, Government of Australia, Strategic Plan 2008 – 2011.
Works Cover SA, Government of Australia, viewed on 23 May 2012,
<http://main.workcover.com/workcover/workcover/strategic-plan-and-annual-report>
Innovation and Change Manage Organisational Change
Organizational change is an approach which is very structured and which shifts or make transitions in the teams, organizations & individuals from a present state to a desired future state. It is an organizational process which is aimed at helping employees of the organization to accept and adapt to the changes made in their current business environment.
There are number of factors which will have an effect on how we make an approach using a change management consultant – or to determine whether we even should do so.
1.) Objective: What we want to be delivered. What do we really want or desire an answer or solution that a) we can implement or b) we want someone else who can implement it for us.
2.) Organization’s size: The smaller the size of the organization the more we need to maximize the leverage of our appropriation of budget. The problem we have is that we need the knowledge, expertise and skills but we can’t generally afford to pay someone else to do it. The larger the organization the greater the temptation and tendency to take the easy path and pass the problem to external consultants, rather than diagnosing the problem ourselves which is part of what senior management in the hierarchy in the company are paid to do i.e., training our own people and where hiring external support wherever necessary. (Uwah, Ewah, Edu:2009)
3.) Budget of the organization: This is closely related to the size of an organization. Thus larger the size easier it is to throw dollars at the problem with change consultants but circumvent taking the hard steps to resolve the real subject. The smaller we are the grander the tendency to be hesitant to spend any monies at all and to just “mess through”.
4.) Our knowledge base: Do we know anything about change in organization and change in management? Where would we be placed on a change management maturity model?
5.) Organization’s culture: Organization’s culture will have a considerable effect on our confidence and affinity to use any form of exterior help. A positive attitude can make it much more acceptable alternative but increase the probability of it becoming the default setting. A negative attitude may prevent the probability and for the incorrect motives.
Reasons for seeking of external assistance for the Organizational Change
(1) Change for progress with the help of some form of knowledge transmission, teaching or training
(2) Diagnosing: Problem definition, problem identification, meaning and suggested course of action.
(3) Distribution: To execute a solution to a business need so as to realize a business benefit for the organization.
Consultancy’s including change management consultancy’s is the only one source of provision for each of the above reasons for seeking external assistance. There are some other options in addition to or instead of using a change management consultant, which are as follows:
Sources of information from the internet
Training & Development and building in house know-how
Non-executive directorships
Corporate mentoring
Peer group involvement and support through various business forums
Interim management is an excellent option for medium and larger firms with over 500 employees
Contract resource is similar to interim management but it is situation specific rather than functional specific as per interim management.
Two basic objectives: –
1. Changes in an organisation’s level of adaptation to its environment.
2. Changes in the internal behavioral patterns of employees.
First, there is the objective of modification in adaptation level. Organisations are constantly striving to adapt themselves in a better way to their external environmental conditions. As the management is not able to completely control the environmental conditions, it frequently induces internal organizational changes, with a view to cope more effectively with new challenges stemming from outside in the form of enhanced
competition, technological advancements, government legislation and compelling social requirements.
Second, there is the objective of achieving modification in behavioral patterns of employees, which arise when an organisation’s level of adaptation does not improve unless its employees behave in a different way in relationship to each other and their jobs. Organisations do not function through computers, but involve people to make decisions in their own unique way arising from a set of formal and informal behavioral patterns and procedures.(Gupta Sr. 2005)
The planning process involves 7 ways to introduce and facilitate a change program:
First step
Involves creation of the change baseline: Your own assumptions about what motivates people will determine the success or failure of your change program. If your assumptions are incorrect, you may miss a valuable opportunity, that of gaining stakeholder ownership of the change process.
Second: We define Change Strategies
We now have a baseline of the key issues for each stakeholder. The next step is to prioritize, select the ones that you can realistically alter it, and develop targeted strategies to alter them. People won’t change unless they feel safe, secure and in control over the results. You can’t just force people to change by management verdict. You must obtain their buy in order to change their underlying assumptions. You need a credible change plan.
Third we change the Measurements:
Measurements define the culture of an organization. What you quantify is what you manage, and the person that does the measuring is the manager. In order to change the result, we must change what is measured and possibly where what is doing the gauging.
Fourth we Communicate Change Details
Define what needs to change. For instance, you can’t just say, “Salespeople need to be friendlier to customers.” You have to define “friendliness”. You will have to communicate the characteristics of friendly behavior, such as “greet your customers warmly”, “ask about their area of concerns”.
Fifth: We Communicate Successful Changes
Reward those who change and acknowledge their contributions. Focus your attention on people who change and ignore those who do not. This will send the message to others that you value the changes made and, in turn, encourage others to participate in the change program. To derive the greatest benefit, the reward — material or not — must be immediate and public.
Sixth: We Measure Change Progress
Make sure you have a regular method to know where the organization stands with respect to the change program. Is the present dissatisfaction, vision, and first steps level greater than the resistance to change.
Seventh: We Ensure Change Persists
Increasing the values in the change method will help bring about deeds changes. However, it alone will not make them stick. Organizational culture is far more persistent than many people agree for. Change must be an iterative, collaborative, and continuous process.
Reference list
Uwah, E, Ewa, U, Endu, B, 2009, Strategic interventions in change management process: Nigeria, September, pp.2-4
Gupta, S, 2005, Organizational change & Development: February, pp3-4
Bizmanualz, 2012, Ways to introduce and facilitate a change program, viewed on 24th may’2012,http://www.bizmanualz.com/information/2005/03/11/7-ways-to-facilitate-change-within-your-organization.html
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