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

Candidate name:
IH Sydney Training Services Pty Ltd
RTO Code: 91109 CRICOS Code: 02623G
 Candidate ID

Trainer’s Name:

Date Submitted:

Candidate declaration: I declare that:

 I have read and understood all the information provided in relation to
the assessment requirements to complete this unit, the instructions and
the purpose and processes of undertaking this assessment task
 This assessment is my own work and where other’s works or ideas have
been used, I have appropriately referenced or acknowledged them
 I understand that plagiarism is a serious offence that may lead to
disciplinary action.
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 Task 1: Knowledge Questions

Question 1 Explain how external environment or trends can impact on change strategies.
(Approx. 100 words)
The external environment are those factors that occur outside of the company that cause
change inside organisations and are, for the most part, beyond the control of the company.
Customers, competition, the economy, technology, political and social conditions, and resources
are common external factors that influence the organisation. Even though the external
environment occurs outside of an organisation, it can have a significant influence on its current
operations, growth, and long-term sustainability. Ignoring external forces can be a detrimental
mistake for managers to make. As such, it is imperative that managers continually monitor and
adapt to the external environment, working to make proactive changes earlier on rather than
having to take a reactive approach, which can lead to a vastly different outcome.

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: following are the kotter’s 8 step change model:
Step One: Create Urgency
The idea of a change being necessary for the success of the organisation can be very powerful. If
you can create an environment where individuals are aware of an existing problem and can see a
possible solution it is likely support for the change will rise. Generating conversation about what
is happening and what direction the organisation could go in will help to achieve this. One way
to kick-start this is to create a forum where issues and potential solutions are raised and
discussed. This step is all about preparation and Kotter estimates that roughly 75% of a
company’s management needs to be behind a change for it to be successful. This emphasises his
point that it is important to prepare well before jumping into the change process. This step
creates the 'need' for change, rather than just a 'want' for change. The difference is very
important when it comes to the likely support and eventual success of the change.
Step Two: Form a Powerful Coalition
It will be very hard to lead the whole change process on your own, and therefore it is important
to build a coalition to help you direct others. The coalition you build should be made up of a
range of skills, a range of experience and people who come from different areas of the business,
to maximise its effectiveness. The coalition can help you to spread messages throughout the
organisation, delegate tasks and ensure there is support for the change organisation-wide. Team
members that collaborate, complement each other and can drive each other to work harder will
make your life easier and the change more likely to be successful.
Step Three: Create a Vision for Change
A change initiative is likely to be very complicated and can often be hard to understand, in
particular for employees at the lower end of the hierarchy. For this reason, creating a vision that
is easy to understand and encapsulates the overall aim is a useful way of generating support
from the whole organisation. While this vision should be simple and understandable, it also
needs to be inspirational to have maximum effect.
Step Four: Communicate the Vision
Creating the vision is not enough to generate support for it, it then needs to be communicated
throughout the organisation. This is an excellent opportunity to utilise the coalition you have
built up, as between them they are likely to have networks in every area of the business. It is

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important to continuously communicate this message as it is likely that competing messages are
also being spread.
Step Five: Remove Obstacles
The first four steps are essential in building the strength of your change initiative, but it is also
important to look for what is likely to reduce its chances for success. Whether its individuals,
traditions, legislations or physical obstacles, it is likely there will be a few barriers blocking your
change’s path. Identify these as early as possible and rely on available resources to break them
down, without disrupting any other areas of the business.
Step Six: Create Short-Term Wins
Change processes often take a while to reap any rewards and this can cause support to fall if
individuals think their effort has been wasted. For this reason, it is important to demonstrate the
advantages of the new process by creating some short-term wins. Shorter term targets are also
useful tools for motivation and direction. Using these wins to justify investment and effort can
help to re-motivate staff to continue backing the change.
Step Seven: Build on the Change
Many change processes fail as complacency creeps in towards the end and project are not
finished properly. Therefore, Kotter argues it is important to sustain and cement the change for
long after it has been accomplished. Keep setting goals and analysing what could be done better
for continued improvement.
Step Eight: Anchor the Changes in Corporate Culture
Simply changing the habits and processes of employees is not always enough to instil a culture
change across the organisation. The changes should become part of the core of your
organisation to have a lasting effect. Keeping senior stakeholders on board, encouraging new
employees to adopt the changes and celebrating individuals who adopt the change will all help
to promote the change to the core of your organisation.

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:
A cost-benefit analysis is a systematic process that businesses use to analyse which decisions to
make and which to forgo. The cost benefit analyst sums the potential rewards expected from a
situation or action and then subtracts the total costs associated with taking that action. Some
consultants or analysts also build models to assign a dollar value on intangible items, such as the
benefits and costs associated with living in a certain town.

 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
result of the decision to pursue a project.
 A CBA can also include intangible benefits and costs or effects from a decision such
as employee morale and customer satisfaction.

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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.

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Answer: following are the four (4) common risk factors that may be associated with
workplace change.
1. Work demands

Everyone has a given capacity for work and if a person’s capacity is exceeded the person may
experience work- related stress.

Some common work demands that may increase stress include:

 time pressure including inadequate 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
prolonged periods of concentration
 work that is monotonous and dull or does not utilise a worker’s range of skills or previous
training
 high emotional task demands, including work that is emotionally disturbing or requires
high emotional involvement
 working long hours or overtime, working through breaks or taking work home
 shift rosters that are unpredictable and/or affect amount and quality of sleep, or make it
difficult to balance work and family life

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 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.

A person’s tasks should ideally be meaningful, varied and allow for an appropriate degree of
autonomy. It is possible for everyone in a business or undertaking (not just those in senior
positions), to feel they have input into their work simply by the communication and consultation
strategies that are utilised in the work team.
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. The way workers are supported is key to reducing or moderating work-related stress.
For instance, support may be provided through practical assistance in performing tasks or
through the provision of information. It can also come in the form of emotional support, which
refers to non-tangible assistance such as talking over a problem with a worker, providing positive
feedback/encouragement or informally congratulating a member of a team for a job well done.

Support provided by peers and supervisors can ‘cushion’ the stress responses people might
otherwise experience where their jobs are demanding and they feel that they are not in control.
This gives them greater coping resources in times of high work demand.
4. Lack of role clarity

Role confusion arises when workers do not have clarity regarding their work objectives and key
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accountabilities, their co-workers’ expectations of them and the overall scope and
responsibilities of their job. A wide range of situations 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.

Role conflict occurs when a worker is required to perform a role that conflicts with their values
or when they are torn between incompatible job demands. The greater the role conflict, the
higher the likelihood of a worker experiencing work-related stress.

Following are three (3) methods of analysing risk associated with workplace change:

After identifying and classifying the risks, we are going to proceed with their analysis, that is, the
possibility and the consequences of each risk factor are examined in order to establish the level
of risk of our project.
There are three kinds of methods used for determining the level of risk of our business. The
methods can be: Qualitative Methods – Quantitative Methods – Semi-quantitative Methods.
1. Qualitative Methods:This is the kind of risk analysis method most often used for decision
making in business projects; entrepreneurs base themselves on their judgment,
experience and intuition for decision making.These methods can be used when the level
of risk is low and does not warrant the time and resources necessary for making a full
analysis. These methods are also used when the numerical data available are not
adequate for a more quantitative analysis that would serve as the basis for a subsequent
and more detailed analysis of the entrepreneur’s global risk.
The qualitative methods include:
 Brainstorming
 Questionnaire and structured interviews
 Evaluation for multidisciplinary groups
 Judgements of specialist and experts (Delphi techniques)

2. Semi-Quantitative Methods: Word classifications are used, such as high, medium or low,
or more detailed descriptions of likelihood and consequences. These classifications are
shown in relation to an appropriate scale for calculating the level of risk. We need to give
careful attention to the scale used in order to avoid misunderstandings or
misinterpretations of the results of the calculation.
3. Quantitative methods: Quantitative methods are considered to be those that enable us
to assign values of occurrence to the various risks identified, that is, to calculate the level
of risk of the project.
Los quantitative methods include:
 Analysis of likelihood
 Analysis of consequences
 Computer simulation

Question 5 List two potential barriers to organisational change and explain possible
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 strategies to address barriers. (Approx. 100 words)
Answer: following are the two potential barriers to organisational change.
1. Seeing change as a threat instead of an opportunity: Resistance is one of the
greatest barriers to organisational change. The first step to mitigating resistance is to
identify the cause.Often, the issue that belies resistance is a failure to understand why
change is necessary. When the benefits of a proposed change are not clear, employees
are more likely to believe it will impose undue stress in their workflow or threaten their
productivity.In some cases, the need for change is evident. For example, if a
department’s performance has declined, most people will agree some sort of course-
correction is in order. But in other scenarios, it’s more difficult for staff to recognise the
need to change. Perhaps they don’t notice that a long-held process is actually hindering
efficiency, or a policy has become outdated. In these situations, employees might see
change as unnecessary and burdensome. Change managers can avoid resistance by
clearly explaining how the change will benefit employees.

Strategies: Be specific — humans are self-serving creatures. They want to know how a
change will benefit the company, they also how it will make their individual jobs easier.
As soon as employees see a proposed change as an opportunity to succeed, they will not
only stop resisting, they will become advocates.

2. Lack of transparency and poor communication from leadership: Communication is

always an essential leadership trait, but it’s even more critical for motivating employees
to embrace change. An opaque leadership style and poor communication are serious
barriers to organisational change. Although the need for reform might be clear to the
CEO and other department heads, the rest of the organisation may not have access to
the information and data that justifies the given change. Leaders will have a hard time
rallying support if they aren’t transparent.

Strategies: While a change is still in the planning stages, leaders should carefully
articulate:

 why it’s necessary

 the main goals
 who will be affected
 the timeline for implementation
 how progress will be assessed

Providing answers to these questions will foster greater trust between employees and
leadership, and make the overall transition period smoother.

Name five (5) of the key principles that should be incorporated into a
Question 6
communication and education strategy during a change process?

Answer: Change communication is the informational component of the change management

strategy that helps stakeholders understand what is changing and why, and how it will
specifically affect them. It delivers timely messages and materials aligned with key milestones,
ensures stakeholders receive consistent information about what is important to them, and
provides a mechanism to share feedback and ask questions. Whether you are changing

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technology, business practices, leadership or a combination of things, change management
communication is essential to helping people move from where they are today to the desired
“future state.” Creating a change management communication plan starts with a deep
understanding of the organisation, stakeholders and change impacts. The goal is to support the
business objective by helping stakeholders understand the change, how they will need to adapt
their day-to-day responsibilities and what is expected of them.By ensuring a consistent flow of
information, engaging stakeholders and continually managing feedback, change communication
helps people feel more comfortable as they move to the future state and adopt new ways of
working.

Following are the principles that incorporated into a communication during a change process.

1. Know your employee audience and who will be most affected – You need details of the
changes happening to each audience and when to be able to plan appropriate
customised communication.
2. Understand what’s changing and why and document the case for change – The “what”
and “why” of the change are key components of your messaging to all audiences
3. Define the vision for the future and how it aligns with the business plan – The
organisation has a reason for making the change and the vision explains this in terms
employees will understand.
4. Identify the “pain points” that the change plan addresses – The difference between how
people operate today vs. the “future state” should be reflected in your messaging to help
people understand areas that will change the most.
5. Identify communications channels needed to reach the audiences – Keep in mind that
any touch-points stakeholders may have with their leaders or the organisation, including
face-to-face huddles and operational meetings, can be used to deliver and reinforce key
messages.

Question 7 Explain two strategies that can be used to effectively communicate and embed
change during an organisational change process. (Approx. 50 words)

Answer: When you receive input and approval on your change communications plan and
messages, it’s time to take action. Be sure to brief key communication contacts (such as internal
communications editors, intranet managers and video resources) about your plans so they are
ready to provide support when needed. Also give a heads up to anyone who will be tapped to
deliver messages to employees, so they know their role, what’s coming and when.

Because of the nature of change programs, expect to evolve your plans and adapt your materials
to the changing needs of the projects and stakeholders. Your efforts are more likely to be
successful if you follow the below mentioned strategies:

 Be consistent and purposeful about messaging – Ensure everyone receives

the same core messages and understands the importance of using them. Reflect
the same information in internal communications materials, graphics and intranet
content.
 Listen carefully and respond religiously – Monitor feedback channels and ask

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 employees what they’re thinking to uncover questions and concerns to address in
communication. Set a standard for responding to employee questions or feedback
within 48 hours, even if it’s just to let them know their input was received and you
are working on finding an answer. Guidance and talking points for handling
feedback should be provided to leaders and change agents as well

Question 8 Explain two aspects of organisational behaviours that can impact on

organisational change. (Approx. 50 words)
Answer:
Organisational behaviour helps us to develop an understanding of the attitude and
performance of employees and the organisation as a whole. There are a variety of factors
that can influence organisational behaviour, including the company culture, policies, and
structure. These aspects can have an impact on employee's productivity and their
commitment to the organisation.

1. Organisational Culture: Organisational culture consists of values and motives that

contribute to the environment within an organisation. It influences the way people
work and interact with each other. Employees become more responsible when they
feel respected and become an integral part of the team. Based on a study of 20,000
employees conducted by HBR and Christine Porath, results show that employees are
more engaged with work when they are treated with respect. They will feel more
committed to their work and align their goals with the company.

2. Incentive System: Employees tend to feel more motivated when there is a solid
reward system. Once this effective system is established, it is necessary to reward
employees who perform well. They should be consistently applied within the
company. A study from the Human Resource Journal proposes that there are three
types of contingent pay: performance-related pay, profit-related pay and share
ownership. Through interviews conducted in 1,293 private-sector workplaces across
the United Kingdom, only performance-related pay was associated positively with
job satisfaction, commitment, and loyalty among employees. Organisational
behaviour proposes that incentives are motivational factors that are crucial for
employees to perform well.

3. Decision Making: Organisational behaviour changes the way people make decisions.
Businesses that are able to encourage risks in decision making within the company
culture can enhance innovation and creativity. Effective communication allows
managers and employees to understand the business context and provides the
opportunity for employees to get involved.

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 Describe five components that may be included a part of a change
Question 9
management plan. (Approx. 50 words)
Answer: following are the five components that included a part of a change management plan.
1. Company needs to assess the readiness of the employees.
2. Company needs to make plan how they will communicate to others about the change.
3. If the change is any types of technology based, then need to arrange training session.
4. If any resistant comes how the company manage it.
5. How the company collect data, way of analysing it and lastly within how many days they
will take corrective measures.

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