BSBLDR601 Lead and manage organisational change

Task 1 – Knowledge Questions

Task summary
 This is an open book knowledge test, to be completed in your own time.
 You need to answer all the written questions correctly.

Required
 Access to textbooks/other learning materials.
 Access to a computer and Microsoft Office.
 Access to the internet.

Timing
 Your assessor will advise you of the due date of this assessment via Canvas.

Submit onto Canvas

 This completed workbook

Assessment criteria
 All questions must be answered correctly for you to be assessed as having completed the task
satisfactorily.

Re-submission opportunities
 You will be provided feedback on your performance by the Assessor via Canvas. The feedback will
indicate if you have satisfactorily addressed the requirements of each part of this task.

 If any parts of the task are not satisfactorily completed, the assessor will provide you written
feedback along with guidance on what you must undertake to demonstrate satisfactory
performance. Re-assessment attempt(s) will be arranged at a later time and date.

 You have the right to appeal the outcome of assessment decisions if you feel that you have been
dealt with unfairly or have other appropriate grounds for an appeal.

 You are encouraged to consult with the assessor prior to attempting this task if you do not
understand any part of this task or if you have any learning issues or needs that may hinder you
when attempting any part of the assessment.

Assessment Cover Sheet

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 I have read and understood all the information provided in relation to
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 Task 1: Knowledge Questions

Explain how external environment or trends can impact on change strategies.

Question 1 (Approx. 100 words)
Answer:
Businesses do not function in a vacuum, and they are influenced by forces beyond their control.
We can organize the external forces that affect business into the six categories:
1. Economic environment
2. Legal environment
3. Competitive environment
4. Technological environment
5. Social environment
6. Global environment
Businesses operate in all of these environments simultaneously, and factors in one environment
can affect or complicate factors in another environment.

Question 2 Discuss the purpose of Kotter’s 8-step change model and the steps involved.
Explain each of the steps involved. (Approx. 200 words)
Answer:
We live in a world where "business as usual" is change. New initiatives, project-based working,
technology improvements, staying ahead of the competition these things come together to
drive ongoing variations to the way we work.
Step 1: Create Urgency:
For change to happen, it helps if the whole company really wants it. Develop a sense of urgency
around the need for change. This may help us spark the initial motivation to get things moving.
Step 2: Form a Powerful Coalition:
We can find effective change leaders throughout our organization they don't necessarily follow
the traditional company hierarchy. To lead change, we need to bring together a coalition, or
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team, of influential people whose power comes from a variety of sources, including job title,
status, expertise, and political importance.
Step 3: Create a Vision for Change:
A clear vision can help everyone understand why we're asking them to do something. When
people see for themselves what we're trying to achieve, then the directives they're given tend
to make more sense.
Step 4: Communicate the Vision:
Don't just call special meetings to communicate our vision. Instead, talk about it every chance
we get. Use the vision daily to make decisions and solve problems. When we keep it fresh on
everyone's minds, they'll remember it and respond to it.
Step 5: Remove Obstacles:
Put in place the structure for change, and continually check for barriers to it. Removing
obstacles can empower the people we need to execute our vision, and it can help the change
move forward.
Step 6: Create Short-Term Wins:
Create short-term targets not just one long-term goal. We want each smaller target to be
achievable, with little room for failure. Our change team may have to work very hard to come
up with these targets, but each "win" that we produce can further motivate the entire staff.

Choose as many of the options below that apply.

Cost benefit analysis should be considered in the change process because:
a) it provides a standardised way of considering the options associated
with change
Question 3
b) it shows which changes are viable
c) most people have negative feelings about change
d) it will make your change initiatives easier to sell to stakeholders

Answer:
KEY TAKEAWAYS
A cost-benefit analysis (CBA) is the process used to measure the benefits of a decision or taking
action minus the costs associated with taking that action.
A CBA involves measurable financial metrics such as revenue earned or costs saved as a
outcome of the decision to pursue a project.
A CBA can also include intangible benefits and costs or effects from a decision such as
employees morale and customer satisfaction.
 Direct costs would be direct labor involved in manufacturing, inventory, raw materials,
manufacturing costs.
 Indirect costs might include electricity, overhead costs from management, rent, utilities.
 Intangible costs of a decision, such as the impact on customers, employees, or delivery
times.
 Opportunity costs such as alternative investments, or buying a plant versus building one.
 Cost of potential risks such as regulatory risks, competition, and environmental impacts.

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 a) List four (4) common risk factors that may be associated with workplace
change.
Question 4
b) Name three (3) methods of analysing risk associated with workplace
change.
Answer:
1. Work demands:
Some common work demands that may increase stress include:
 Time pressure including insufficient time and resources to complete jobs satisfactorily,
working too hard or too fast and difficult targets
 high mental task demands such as work that requires high-level decision making or long
periods of concentration
 work that is monotonous and dull or does not utilize a worker’s range of skills or
previous training
2. Low levels of control:
The risk factor of ‘control’ refers to how much influence a person has in how they meet their
task demands and how they perform their work in general (also known as autonomy).
Unnecessary levels of high supervision and surveillance, excessive responsibility but little
authority or decision making and little or no say in how work is done may all lead to a stress
response.
3. Poor support from supervisors and/or co-workers:
This important risk factor covers aspects such as whether workers feel they are given
constructive feedback, whether they can talk to their supervisor and peers about work
problems, whether their supervisor helps fix work problems, whether peers help out when
things are tough and whether it is possible to talk to, and form relationships with, work
colleagues.
4. Lack of role clarity:
Role confusion arises when workers do not have clarity regarding their work purposes and key
accountabilities, their co-workers’ expectations of them and the overall scope and
responsibilities of their job. A wide range of circumstances can create confusion, for instance
beginning a new job or starting in a new PCBU, a transfer, a new supervisor or manager or a
change in the structure of a work unit.
Risk Assessment:
Risk assessment is the name for the three-part process that includes:
 Risk identification: Risk identification is the process of finding and describing risks that
might help or prevent an organization achieve its objectives.
 Risk analysis: A risk analysis will be more accurate if we're using high-quality, accurate,
and complete information. Remember we may have to go outside our organization to
get some of this information.
 Risk evaluation: During risk evaluation, we'll compare the results we came up with during
our risk analysis and compare those to our organization's existing risk criteria to
determine if we'll need to do more to treat the risk(s) we're assessing.

List two potential barriers to organisational change and explain possible

Question 5
strategies to address barriers. (Approx. 100 words)
Answer:
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1-INDIVIDUAL CHANGE RESISTANCE:
Most people don’t enjoy change. The status quo tends to be more convenient and comfortable,
so our resistance to a new process, strategy or organizational structure (no matter how logical
or promising) is almost inevitable. Part of our human nature involves us being very sensitive to
certain kinds of perceived threats around us or in our social environment, which by extension
includes our workplace.
2-LACK OF COMMUNICATION:
Communication should take centre stage in both the planning and implementation phases of
change management. Whenever a project or new direction is planned, communication should
begin before its actual implementation or execution. Set clear expectations, communicate
potential timelines, and report organizational progress to plan at regular intervals. During
unplanned or crisis-driven change, keeping everyone on the same page is just as critical.

Name five (5) of the key principles that should be incorporated into a
Question 6
communication and education strategy during a change process?
Answer:
Organizational change refers broadly to the actions a business takes to change or adjust a
significant component of its organization. This may include company culture, internal processes,
underlying technology or infrastructure, corporate hierarchy, or another serious aspect.
1. Prepare the Organization for Change:
In the preparation phase, the manager is focused on helping employees
recognize and understand the need for change. They raise awareness of the
numerous challenges or problems facing the organization that are acting as
forces of change and generating dissatisfaction with the status quo.
2. Craft a Vision and Plan for Change:
The plan should account for any unknowns or roadblocks that could
arise during the implementation process and would require agility and
flexibility to overcome. Once the organization is ready to embrace
change, managers must develop a thorough and realistic plan for bringing
it about.
3. Implement the Changes:
During the implementation process, change managers essentially must be
focused on empowering their employees to take the necessary steps to achieve
the goals of the initiative. They should also do their best to anticipate roadblocks
and prevent, remove, or mitigate them once identified.
4. Embed Changes Within Company Culture and Practices:
By embedding changes within the company’s culture and practices, it becomes
more difficult for backsliding to happen. New organizational structures, controls,
and reward systems should all be considered as tools to help change stick.
5. Review Progress and Analyse Results:
Just because a change initiative is complete, doesn’t mean it was successful.
Conducting analysis and review, or a “project post mortem,” can help business
leaders understand better whether a change initiative was a success, failure, or
mixed result. It can also offer valuable insights and lessons that can be leveraged
in future change efforts.
Explain two strategies that can be used to effectively communicate and embed
Question 7 change during an organisational change process. (Approx. 50 words)
Answer:
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In order for change to be successful, Kotter suggests that 75% of a company's management
needs to support it. Getting this support is the first step towards implementing the effective
change. Always encourage people who our proposed change resonates with, and make them
part of the leadership team for the process, if they aren’t already.

Explain two aspects of organisational behaviours that can impact on

Question 8 organisational change. (Approx. 50 words)
Answer:
 Company Culture and Attitudes:
Organizations should encourage a strong culture and adopt the values necessary for
success in the business and development of all employees.
 Physical Organizational Structure:
A flat structure has only a few layers and tends to be more organic. Lean establishments
like these reduce waste and increase efficiency whenever possible.

Describe five components that may be included a part of a change

Question 9
management plan. (Approx. 50 words)
Answer:
 Stakeholder Engagement: is an enabler for change and should be maintained
throughout.
 Communication: is key. Identify available communications channels and initiate the
processes.
 Change Impact and Readiness: is about how much of an impact the change has on
stakeholders and how ready they are to make the change.
 Training: is required to enable adoption and embedding.
 Organisation Design: might not be owned by the project, but it is a dependency,
therefore activity needs to occur in tandem with the main project.

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