Bm 6 2012 Unit4 Change Management

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BUSINESS MANAGEMENT UNIT 4
Change management: technological
development at Australia Post
Julie Cain
Lalor Secondary College
This article outlines a comprehensive five-part approach to the teaching and
assessment of Area of Study 2 in VCE Business anagement !nit ": #The
management of change$%
This article comprises:
Part A: &ey 'no(ledge relating to the management of change
Part B: Technological development as a significant change management
issue
Part C: )esearch material on the gro(th of online shopping as a form of
technological change *significant issue+
Part ,: Case study using Australia Post and its response to online shopping
Part E: Assessment tas' -ased on Australia Post
Part A: Key knowledge relating to te !anage!ent o" #ange
$%er%iew o" #ange !anage!ent
All organisations must be able to adapt to a rapidly changing environment by taking a proactive
approach to pressures. Twenty years ago organisations were operating in stable environments with
little change and certainty. Change is now rapid, unpredictable and will usually impact on all areas of
an organisation. Organisations that do not have strategies to recognise pressures and changes in the
environment will be impacted in a negative manner. Change is continuous and the only certainty in
the business environment is that change will occur.
Pre&&ure& "or #ange
Change impacts on all areas of an organisation. Pressures for change can come from the internal and
external environment. Change can impact on the internal environment in areas such as structure,
corporate culture, management styles, tasks, policies and processes, and management functions.
Pre&&ure& "or #ange in te internal en%iron!ent
Pressures in the internal environment are those that are uniue to the organisation. Pressures
include! owners"shareholders, board of directors and management, employees, organisational
structure and corporate culture. These pressures can impact on the organisation in a positive or
negative way. Types of pressures and how they can impact on an organisation are listed in Table #.
VCTA $ %ulie Cain Published August &'#& page #
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TABLE 1: TYPES OF INTERNAL PRESSURES AND HOW THEY IMPACT ON ORGANISATIONS
Pressure Impact on organisation
Owners/
shareholders
Individuals or companies with a substantial shareholding may be able to exert influence over the
organisation to bring about positive change.
Shareholders can also influence the organisation and push for increased dividends. This may cause the
organisation to look at ways of reducing costs and increasing profit margins.
Board of
directors/
management
The board will influence the strategic direction of the organisation. hanges in strategic plans will impact
all the way through the organisation. The board is not involved in the day!to!day activities of the
organisation and should not interfere with the management" however# it should ensure that it does not
$rubber stamp% policies and that it is accountable if there are ethical issues involved.
The management style adopted by managers and the skills they have# also impact on the organisation
and the relationships with employees.
&mployees &mployees want to work in an ethical work place and be treated fairly. &mployees will place pressure on
organisations to ensure that there are flexible work practices and anti!bullying and e'ual opportunity
policies. They will also pressure the organisation to become an $employer of choice%.
&mployees may also pressure an organisation to introduce or adapt work!related policies and practices.
Organisational
structure
(any organisations have been downsi)ing and returning to their core businesses# often in an effort to
reduce costs. These strategies have involved the removal of some layers of organisations.
&mployees have become increasingly multiskilled and downsi)ing has changed the structure of
organisations. (ost large organisations are now based on a less hierarchical functional structure rather
than on a bureaucracy.
orporate
culture
orporate culture refers to the shared values# beliefs and attitudes of an organisation. The management
style# policies# structure and practices all impact on culture in either a positive or negative way.
Pre&&ure& "or #ange in te e'ternal en%iron!ent
$(erating (re&&ure&
The operating environment is uniue to the organisation(s particular sector of the economy. All
organisations in a particular industry, for example the retail industry, have similar challenges and
pressures in this sector of the environment. Table & outlines the main operating pressures on
organisations.
All organisations need good working
relationships with reliable suppliers; for
example, the car industry depends on a regular
supply of auto components.
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TABLE 2: OPERATING PRESSURES ON ORGANISATIONS
Pressures Impact on organisation
ustomers ustomers pose an opportunity for organisations and also a risk. Organisations must ensure that they
understand the needs and concerns of their customers if they are to keep them. Organisations should
make sure that the $customer comes first% if they are to remain competitive.
If organisations are not adaptive to the needs of their customers# then they may miss opportunities to
increase sales and market share.
Being proactive rather than reactive will assist an organisation to retain and gain customers.
ompetitors ompetitors are an important pressure on organisations. They must be monitored and the
organisation needs to ensure that it stays ahead of its competitors rather than simply follow and
respond to their initiatives and strategies. The campaigns and marketing strategies of oles and
*oolworths are a good example of trying to increase sales in the market. +iscount petrol vouchers#
special offers and loyalty cards are part of their marketing campaigns.
Suppliers Suppliers are important to any organisation. There is a strong need for good working relationships with
reliable suppliers# particularly in manufacturing organisations. The car industry# for example# needs to
ensure that it has reliable suppliers# as any disputes or issues facing a supplier of components can
have a dramatic impact on the production process of a car manufacturer. Some car manufacturers
have had to shut down production due to issues faced by suppliers.
Trade unions Trade unions can have an impact on organisations and force it to change. ,or example# unions may
take action in the pursuit of better pay and conditions on behalf of their members.
This may cause the organisation to change practices or may disrupt their business.
-obby/pressure
groups
Special interest groups will attempt to influence the actions of an organisation. .ressure groups may
lobby an organisation to change practices and policies# such as changes to carbon emissions#
recycling and waste management.
,inancial
institutions
The deregulation of the banking and finance industry has allowed businesses to access funds more
freely and has provided opportunities for businesses.
Ma#ro en%iron!ent
Pressures within the macro environment are outside the control of organisations, which must plan in
an effort to manage these pressures. This area of the external environment is vital. Table ) outlines
the main macro pressures on organisations.
TABLE 3: MACRO PRESSURES ON ORGANISATIONS
Pressure Impact on organisation
&conomic forces The state of the economy is vital and impacts on an organisation in a number of ways. hanges in
interest rates# the business cycle# economic conditions in the rest of the world# government budgets
and the value of the /ustralian dollar all impact on organisations.
0overnment forces ,ederal# state and local governments all impact on organisations. hanges in government policy and
regulations may cause organisations to respond to and change either practices or policies.
-egal forces hanges in legislation impact on organisations. -aws may include e'ual opportunity# anti!
discrimination# employee relations# and occupational health and safety.
Technological
developments
hanges in technology# such as e!commerce# email# the Internet and new technologies# all impact on
how businesses operate.
Social and cultural
forces
Organisations must be aware of changing social and cultural conditions. hanges can include1
increased participation rates for women" the need for work2life balance" higher levels of education"
and changes in the expectations of employees.
&nvironmental
issues
/wareness of the environment and the need to examine recycling practices# reduce carbon
emissions and improve waste management have changed the way organisations are managed.
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)ri%ing and re&training "or#e& "or #ange
*urt +ewin developed a change model and an approach to change. Part of his theory uses ,force field
analysis(, which is based on the physical sciences. The theory provides a tool for organisations to
understand change and the impact it can have on an organisation. +ewin set out driving and
restraining forces for change. -riving forces pressure or push an organisation to change.
These forces can impact in the following ways!
• .f driving forces are greater than the restraining forces then the change will be successful.
• .f restraining forces for change are greater than driving forces then the change will not be
successful.
• .f driving forces and restraining forces are eual then the change will be unsuccessful.
-riving forces include!
• a positive corporate culture
• participative management style
• group decision/making
• a clear vision
• high productivity
• clear management practices and policies.
0estraining forces include!
• autocratic management styles
• poorly communicated vision
• low levels of productivity
• high levels of workplace accidents
• high levels of staff turnover
• poor morale.
-riving and restraining forces can be explained using a car as an example. .f the driver has his or her
foot on the accelerator then the car will go forward, if the driver has his"her foot on the brake
1restraining force2 then the car won(t move forward. .f the driver has his"her foot on the brake and the
accelerator at the same time then the car won(t go anywhere 1and may stall2.
Kotter*& teory o" #ange !anage!ent
%ohn *otter developed the eight/stage model for implementing and managing change. The main
elements or steps in the process are!
# 3stablish a sense of urgency.
& Assemble a group of people.
) Create a vision for the organisation.
4 Communicate the vision.
5 3mpower others.
6 Plan to achieve short/term gains.
7 Consolidate the changes.
8 .nstitutionalise new approaches.
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Strategie& "or e""e#ti%e #ange !anage!ent
All organisations must develop strategies to manage change. 9any people are reluctant to make
changes due to uncertainty about the future and because it pushes people out of their comfort :one.
0esearch has also shown that an individual(s first reaction to change or stress is to move to the
negative. Organisations must find ways to successfully manage the change process. .n order to
successfully implement change, then organisations need to examine the strategies they are going to
use. ;trategies can be either low/risk or high/risk practices.
<igh/risk practices include!
• coercion and threats
• manipulation, for example omitting information
• using an autocratic management style.
+ow/risk practices include!
• participative management style
• two/way communication
• empowerment of employees
• using work teams
• support all going through the change.
+eader&i( o" #ange
+eaders and managers are important in the successful management of change. +eaders need skills
such as being able to diagnose and understand a situation. They also need to be able to adapt to new
situations and responses as reuired, and communicate to all stakeholders about a proposed change,
why it is needed, and what stage it is at in the change process.
9anagement skills to assist in the change process include communication and interpersonal skills,
visionary skills, delegation skills, decision/making skills and problem/solving skills.
Effectie change management re!uires
good leadership skills in order to moe a
team smoothly through a change that will
benefit an organisation.
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Part B: Te#nologi#al de%elo(!ent a& a &igni"i#ant #ange
!anage!ent i&&ue
Over the past &' years organisations have been uick to adapt tools such as email, e/commerce,
websites, computerised records and mobile technology. Australians have high rates of ownership and
use of technology such as mobile phones and personal computers, and use it for work and personal
applications.
Pre&&ure& and te i!(a#t o" #ange due to te#nologi#al de%elo(!ent
Technological development is a significant change issue and impacts on all stakeholders in an
organisation and creates a range of pressures for organisations, as outlined below!
Managemen=managers need to have skills to introduce and develop technology. This can include
the need to be able to develop training programs, creative thinking skills, and the ability to manage
effective teams, introduce changes in policies, and re/configure work processes.
Em!"#$ee%=employees need to develop new skills and change work practices in order to work in
organisations. 3mployees also need to become increasingly multiskilled.
C#&!#&ae '("(&e=this may change as a result of new technologies. Cultural shifts may occur when
applicants are recruited with new skills, experiences and new attitudes that will in turn influence those
in the organisation. These new demands may impact on employees and may cause some workers to
feel stressed.
C(%#me&%=now expect organisations to use and develop technology as part of their business.
T&a)e (n*#n%=unions may have concerns about the introduction of new technologies as it may
mean >ob losses for employees whose skills become redundant.
C#m!e**#n=organisations will need to introduce and continue to improve the technology they use
to keep ahead of rival organisations.
S#'*a" an) )em#g&a!+*' !&e%%(&e%=there are now a number of different generations in the
workforce. These generations have different expectations about work and how organisations operate.
?ew employees will expect to use technology as part of their >ob.
G"#,a"*%a*#n=the world economy means that many countries and organisations are now linked via
technology. Organisations can now operate globally and use technology to develop a customer base.
)ri%ing and re&training "or#e& "or #ange due to te#nologi#al de%elo(!ent
Table ) lists the main driving and restraining forces for change due to technological development.
TABLE -: FORCES FOR CHANGE DUE TO TECHNOLOGICAL DEVELOPMENT
Driving forces Restraining forces
ommunity use of technology ost of technology
+evelopment of faster ways to complete tasks 3ncertainty regarding costs of implementing technology
(ultiskilling of employees4provides more flexibility for
organisations
&mployee resistance to technology
-arge amounts of information can be processed 'uickly osts associated with training employees
The availability of portable devices means business can be
conducted at different times.
Issues around maintenance of computer systems
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Part C: ,e&ear# !aterial on te growt o" online &o((ing a& a
"or! o" te#nologi#al #ange -&igni"i#ant i&&ue.
Technological developments have impacted on many areas of the management functions of
organisations. Operations, finance, research and development and human resources are all impacted
by technology. .n Australia, more consumers are starting to purchase products using online shopping
websites. .nformation on the background and rise of online shopping in Australia is provided on the
following pages.
Ba#kground in"or!ation/te growt o" online &o((ing in Au&tralia
The value of online shopping using credit cards in Australia has grown by an average of #5 per cent
per year since &''5. The 0eserve @ank has noted that postal flows from overseas suggest that
international online purchases have also increased by an average of #' per cent per year since &''5.
This is in contrast to the # per cent average fall in domestic postal deliveries during the same period.
Private sector estimates of e/commerce growth vary, with groups like .@.;Aorld tipping that the
industry in Australia will grow to B&).4 billion by &'#4. .@.;world estimated that the overall
e/commerce industry was worth B#8.6 billion in &''C. 1,;trong growth in online shopping(, "he Age,
4 Debruary &'##2. Another organisation, Euantium Online, run by ;imon ;mith, the former boss of
e@ay in Australia, believes that the value of Australian online purchases is rising by &6 per cent a
year. Euantium has also found and highlighted a number of trends. ;ome of the main findings about
online retailing include!
• Of the top &' online retailers used by Australians, ## are domestic 1fully online2 stores, five are
both traditional retailers and online stores, and only four are based overseas.
• The turnover of the top #5 domestic online retailers is now greater than the largest single non/
food retailer, @ig A.
• ;ome 4' per cent of online shoppers are aged over 45, while those under &5 account for >ust
#5 per cent of transactions.
• A Commonwealth @ank of Australia 1C@A2 report states that over 45s make up )5 per cent of
the market and use a different age grouping at the younger end, suggesting those under )'
account for &8 per cent of the business. 10eference! ,Dinally, a clearer picture of online
shopping(, "he Sydney #orning $erald, &C %uly &'##2
-uring Christmas &'## Australia had its busiest period of online shopping. At the top of the shopping
list were electronic goods, toys sporting goods, clothes and in/store vouchers. 9ost of these orders
were placed with local Australian businesses. +iuor retailer -an 9urphy(s and toys retailer Toys,0,Fs
both experienced their largest ever online sales in the lead/up to Christmas. ;ome of the most
popular items purchased online from Toys,0,Fs were trampolines, pools, swing sets, 9onster <igh
-olls, +3GO and collectibles. Digures from 9arket @lueprint, Euantium(s database of C@A customers(
transaction data, highlight the rise of Australian/based ,e/tailing(. The likes of -eals-irect.com.au,
GraysOnline.com, domestic e@ay sellers and their peers have grabbed this rapidly growing space
while the established retailers were still in online denial.
PayPal spokesperson Adrian Christie said that about 7' per cent of purchases were made with
Australian retailers and about )' per cent with overseas ones. ,Our research shows there is definitely
a preference to buy Australian 1goods2(, he said. 9r Christie said customers went to overseas
websites not only to take advantage of the high value of the Australian dollar but also because many
items were simply not available here. <e also believed that retail stores in Australia would start using
their physical retail spaces for customer service and returns and pick/ups for example. 10eference!
,@iggest ever online shopping spree(, "he Age, ## %anuary &'##2
.n the #& months since April &'## Australians spent more than B## billion buying goods online.
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"he alue of online shopping using
credit cards in Australia has grown by
an aerage of %& per cent per year since
'((&.
The ?ational Australia @ankHs latest online retail sales index found that .nternet sales made up 5.# per
cent of total retail spending in the #&/month period, up from 4.C per cent a year earlier. ?early three
uarters of the B##.# billion spent by shoppers was on buying goods from Australian websites.
Online spending was strongest in the ACT and ?orthern Territory, with those in Eueensland and
Iictoria the most reluctant to shop online. 10eference! ,Aussies( online shopping bill hits B##b(, "he
Age, &8 9ay &'##2
*mart C3O Guy 0usso believes that online shopping does not pose a threat to retailers. <e sees
online shopping as based on convenience and that retailers such as *mart focus on pricing strategies
as *mart is able to sell clothing at cheaper prices than online retailers.
There are also some issues for retailers as a result of online shopping. ;hop owners and retailers are
concerned about people scoping their stores=only to use information to buy cheaper products online.
;ome retailers are starting to develop strategies to deal with this and many have started to charge
customers who try on clothing and shoes. ;ome retailers have then refunded these charges if the
customer buys something from the store.
Australian 0etailers Association executive director 0ussell Jimmerman said retailers were hurting
from high employment costs, such as weekend penalty rates, expensive rent in shopping malls and
the G;T exemption on overseas purchases up to B#'''. A brand/marketing expert advises against
applying fitting charges as an online countermeasure and argues that retailers should be ,selling the
shopping experience( and ,building that relationship(.
.t is argued that too many discount sales also hurt traditional retailers and they should be offering
value to customers through two/for/one deals or a free gift with a purchase. Consumers were using
smartphones to compare prices between rival stores and asking retailers to ,match that(, a far more
significant threat than online purchases from overseas.
The skill levels of some sales assistants was a concern, -r Peters said. ,@eing a retailer is and has
always been a skilled expertise(, he said. ,.t(s not a matter of having an idea and filling up a store with
stock and waiting for customers to walk in.( Tony 3ades, the creative director of @rand9anager, said
retailers should not be cutting corners ,by putting the younger school kids on and not training them
properly(.
Canberra @usiness Council is running courses through Canberra @usinessPoint, which provide advice
on ad>usting to the business cycle, to help retailers adapt to the small but growing online threat.
10eference! ,The ugly side of online shopping(, "he Age, ## April &'#&2.
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Online shopping may also mean that consumers are buying products from businesses that are not as
ethical as consumers may believe they should be.
Ahile online shopping has provided many opportunities for organisations, there are a number of
issues related to the rise in this type of business activity. Dor example, some online businesses are
employing relatively unskilled staff who are given difficult, if not impossible, uotas and time to carry
out their >ob. This has led to exploitation of more vulnerable employees.
There has been a trend here, as in America, for some companies to replace full/time distribution
workers with third/party logistics contractors that employ casual warehouse staff through labour hire
firms. ,They have no obligation to those workers(, -onnelly says. ,They can tell them at any time, KLou
are finishedM.H 10eference! ,The dark face of a cheap and easy online shopping habit(, "he Age, 6 April
&'#&2
9ore Australians are starting to complete shopping, such as Christmas shopping, online. .n the three
months to October &'##, Australia Post saw a &4 per cent increase in overseas packages shipped
into AustraliaN at the same time the Australian dollar also increased in value.
Purchases bought overseas for less than B#''' are currently exempt from G;T. 9any retailers
believe that this is unfair and means that retailers cannot remain competitive.
Australians still prefer to purchase online from Australian organisations rather than those based
overseas. ;urveys have found that Australian consumers feel safer dealing with Australian companies
and this provides potential for future growth. 10eference! ,Ainners and losers at the online shopping
mall(, "he Age, &8 ?ovember &'##2
Part ): Ca&e &tudy u&ing Au&tralia Po&t and it& re&(on&e to online
&o((ing
10eference! http!""auspost.com.au2
$%er%iew and 0a#kground
1i&ion and !i&&ion &tate!ent&
Australia Post is a government business enterprise 1G@32. .ts vision statement is! ,Australia Post is
committed to providing high/uality mail and parcel services to all Australians(. Australia Post(s
mission includes!
Ae will meet our customersH changing needs by providing!
• innovative and easy/to/use products and services
• friendly service by knowledgeable staff
• consistent on/time delivery
• value for money
• modern, efficient networks.
Ae will build our peopleHs commitment to these goals by!
• promoting >ob satisfaction
• encouraging participation in the success of the business
• recognising outstanding service to customers
• rewarding outstanding performance.
As a progressive commercial corporation, Australia Post makes the best use of its assets and earns
profits so that it can sustain and develop its business.
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Australia Post had three elements in its strategic plan. These are!
a. restore a self/sustaining letters business
b. grow the full/value chain in parcels and win in e/commerce
c. build a trusted multi/channelled services offer in retail and digital.
1;ource! Australia )ost Annual *eport, '(%(+%%2
Cu&to!er &er%i#e #arter
Australia Post plays an important role in the Australian community and is reuired by law to meet
specific performance standards. These are called Community ;ervice Obligations 1C;Os2. The
Customer ;ervice Charter aims to communicate these standards to customers.
Cor(orate go%ernan#e
Australia Post has clearly set out corporate governance practices, which means that it focuses on
providing appropriate levels of accountability and disclosure. This information is provided to the public
through its Annual 0eport.
.n addition, as a G@3, Australia Post is sub>ect to the reuirements of the Australian )ostal
Corporation Act, and the Commonwealth Authorities and Companies Act, as well as the governmentHs
,oernance Arrangements for Commonwealth -usiness Enterprises.
$rgani&ational &tru#ture
Aithin the Australian Government, the 9inister for @roadband, Communications and the -igital
3conomy has portfolio responsibility for Australia Post. Fnder a dual shareholder model, overall
responsibility is shared with the 9inister for Dinance and -eregulation.
The organisation was restructured in &'#' into four strategic business units, namely! Postal ;ervices,
0etail ;ervices, 3xpress -istributor ;ervices, and e/;ervices. The focus of these units is on business
efficiency and service uality.
Australia )ost is a goernment business
enterprise .,-E/ and consists of four
strategic business units0 )ostal Serices,
*etail Serices, Express 1istributor
Serices, and e2Serices.
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Board o" dire#tor&
The Australia Post @oard comprises up to nine directors, eight of whom serve in a non/executive
capacity. The 9anaging -irector is the sole executive director. ?on/executive directors are appointed
by the Governor/General on the nomination of the portfolio minister.
The @oard is accountable for Australia PostHs overall performance. .t sets the corporationHs key
ob>ectives and strategies through a rolling three/year Corporate Plan, which is submitted annually to
the shareholder ministers. Progress against the plan is reported uarterly.
Co!!ittee&
Two @oard committees assist the @oard in the discharge of its responsibilities! Audit O 0isk
Committee and <uman 0esources.
The Audit O 0isk Committee focuses on the areas of financial reporting, risk management and internal
controls, and reviews items such as the annual financial statements, financial policies and legal
compliance.
The <uman 0esources Committee oversees areas such as!
• recruitment, selection and succession planning
• remuneration
• culture and ethics
• learning and development
• occupational health and safety
• terms and conditions of employment
• organisational structure.
Poli#ie&
Australia Post has developed a range of policies including!
• 3thics Policy
• 3ual Opportunity Policy
• -iversity Policy
• Procurement Policy 1relates to supply chain management2
• ;upplier Code of Conduct
• 0efund Policy
• Corporate 0esponsibility Policy
• 3nvironmental Policy.
Cor(orate &o#ial re&(on&i0ility -CS,. and 0u&ine&& eti#&
Australia Post(s primary corporate ob>ective is to build a sustainable business that provides trusted
distribution, communications and transaction services for all Australians, wherever they reside.
.t has worked on developing a sustainable business by managing Australia Post in a way that
balances the needs and expectations of the four key stakeholder groups=people 1employees2,
customers, the Australian community, and shareholder 1the federal government2.
At the heart of the approach to corporate responsibility is the notion of ,balance(. .n order to satisfy
stakeholder expectations, Australia Post accepts that the business must be managed in a way that
balances commercial returns with customer service and community interests.
VCTA $ %ulie Cain Published August &'#& page ##
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The key ob>ectives of the Corporate 0esponsibility Policy are to!
• ensure that long/term sustainability is founded on responsible business practices
• give meaningful consideration to community and enironmental impacts and stakeholder
expectations when decisions are made
• be open and accountable to employees, customers, the Australian community and
shareholder on the decisions made and the impact.
S(on&or&i(
Australia PostHs sponsorship programs seek to achieve a balance between community,
environmental, sporting, educational, health and arts"cultural events and activities. 3xamples of
Australia Post sponsorship programs include!
A(%&a"*a P#% Legen)%
Australia Post initiated the Australia Post Australian +egends Award in #CC7 to honour living
Australians who have made a uniue contribution to our way of life, inspired the community and
influenced the way Australians think about themselves and their country.
These are people whose achievements have inspired and enriched lives and people who are
motivated by the achievement of excellence and the education of others.
Sa.e"" G*/
Australia Post sponsors the ;tawell Gift. .t has had the naming rights for the gift for the past #6 years.
Me"an#ma &e%ea&'+
;ince #CC8, Australia Post has supported the Australia Post 9edical 0esearch Dellowship through the
0oyal Australasian College of Physicians. This fellowship provides continued support for melanoma
research.
B&ea% Can'e& Ne.#&0 A(%&a"*a
Australia Post is a ma>or sponsor of @reast Cancer ?etwork AustraliaHs community based ,9ini/Dield
of Aomen( events. 9ini/Dields, held in over 8' communities across Australia, raises public awareness
and funds for breast cancer.
Australia Post is also providing free delivery of @reast Cancer ?etwork AustraliaHs 1@C?A2 #y
3ourney 4it. The kit contains information and resources for women newly diagnosed with breast
cancer, plus a repository for test results and a personal >ournal. @C?A has developed the content of
the kit by consulting Australian women who have experienced breast cancer.
Sa// +ea"+ an) .e"",e*ng
Australia Post provides a health and wellbeing program for all employees. As part of this program,
and recognising that menHs issues play an important role in employee wellbeing, Post has been a
financial supporter of 9ensline Australia since &''&. Australia Post now sponsors a dedicated
9ensline Australia telephone counselling line for its male employees.
Core 0u&ine&&
Australia Post is reuired by law to provide a universal letter service that is reasonably accessible to
all Australians and, in addition, to provide a standard letter service at a uniform price 1currently 6'
cents2 from anywhere to anywhere in the country.
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Australia Post also provides a range of products and services including!
• Load and ,o cards 1these can be used as a debit card to purchase goods online2. Customers
can purchase these from Australia Post and use them to shop. The advantage is that they are
not linked to a credit card or bank accounts and provide extra security, and there are no
ongoing costs or interest charges on the card.2
• 3xpress Post
• Parcel Post
• postage products
• stamp collections
• ;amsung Galaxy phones
• gift cards
• gifts
• coins
• #y Shop in a -ox, an all/in/one e/commerce solution that helps small and medium/si:ed
businesses to set up their own customised and secure online shop. @usinesses receive!
− a uniue Aeb address to give to their customers
− a )'/day live trial
− an online catalogue where a picture and description of the product can be uploaded
− a simple/to/use order and customer management system to manage inventory and
sales
− unlimited local hosting
− a payment gateway through ;ecurePay as well as PayPal
− local support is available via phone or email.
• stationery
• personalised stamps.
Cange& at Au&tralia Po&t
The increase in the number of Australians using online shopping has led to a change at Australia
Post. The increased number of sales online has meant that customers need to have these purchases
delivered. There were a number of pressures on the organisation, including the use of email rather
than traditional letters, the use of @Pay rather than paying bills at Australia Post outlets, and the
increase in the value of the Australian dollar, which led to Australia Post losing money delivering all
parcels weighing less than & kg.
As a result of this change, Australia Post has further developed its core business. .t has introduced a
range of changes to parcel delivery and to the operations management function. These include!
• parcel lockers to allows customers to pick up goods bought online
• self/service machines for domestic parcels and special e@ay low/cost satchels and boxes
• extended hours of operations at some #'' outletsN these are being trialled in some capital cities
• access to parcel lockers &4 hours a day to allow people who work long hours and full/time to
access parcels outside of Australia Post opening hours
• the changes will allow Australia Post to cope with the technological changes related to the
.nternet and digital capabilities.
VCTA $ %ulie Cain Published August &'#& page #)
BUSINESS MANAGEMENT UNIT 4
Australia Post estimates that 7' per cent of its parcel business was generated by online shopping and
generated B#b in revenue. .n the future there are moves to upgrade 6' business hubs to focus on
small to medium/si:ed business activity and the introduction of new technology that will be able to
electronically track products between Australia and the Fnited ;tates. The organisation is also going
to work with Australian retailers with their online ordering and payments through its ;ecurePay
business and the #y Shop in a -ox product. 10eference! ,Post changes to cope with online shopping
boom(, "he Sydney #orning $erald, #' October &'##2
I!(a#t o" #ange& on Au&tralia Po&t
Changes have been made to the core business of Australia Post. These have included!
• new extended business hours, such as late opening and ;aturday mornings
• new products for customers and businesses
• new technology to track parcels
• staff trained in the new products, such as Load and ,o
• support offered for some products such as #y Shop in a -ox
• increased complexity in regard to parcel delivery and logistics
• increased number of employees and contractors to deliver parcels during peak periods, such as
Christmas
• Australia Post iPhone app launched in %uly &'## has been the number # most downloaded free
app in the iTunes business category.
Per"or!an#e indi#ator& and e%aluation o" Au&tralia Po&t*& (er"or!an#e
• .ncreased sales due to online shopping. Christmas &'## saw record deliveries for the
organisation. .n &'#'P## by & revenue increased.8 per cent 1at the same time costs increased
by #.& per cent2.
• +evel of customer complaints, such as delays in parcels being delivered, cards being left when
customers were at home rather than delivering the parcel. The managing director of the courier
and express freight company Allied 3xpress, which was criticised on
http!""www.productreview.com.au, said that about C8 per cent of its deliveries arrived in time for
Christmas and there were valid reasons for those that did not.
• B&'m was spent on ,Duture ;kills(=training and employability skills 1staff training in areas such
as parcels, logistics, retail and digital services due to the growth in online shopping2.
• .ncreased profits came from the handling of parcels in some areas while costs associated with
items such as -I-s were not profitable. Profits increased in &'#'P## to B))&.)m compared to
B&5).&m in &''CP#' 1up by )#.) per cent from last year2.
• C6 per cent of domestic letters were delivered on time or early.
• public donations collected totalled B&.Cm
• )# per cent of non/ha:ardous waste was recycled 1the target is 7' per cent by &'#62.
• ;ome retailers were critical of Australia Post for delivering items from overseas, as it cut into
the earnings of traditional retailers.
1;ome data sourced from! ,Christmas online rush a Klearning processM! Australia Post(, "he Age and
Australia )ost Annual *eport, '(%(+%%2.
VCTA $ %ulie Cain Published August &'#& page #4
BUSINESS MANAGEMENT UNIT 4
Student tasks

Complete the following four tables in preparation for the assessment task.
TABLE 1: PRESSURES ON AUSTRALIA POST
Pressure Level of the environment Explanation Impact on Australia Post
TABLE 2: EVALUATION OF PERFORMANCE OF AUSTRALIA POST
Performance Indicator
Explanation Trends/results
VCTA $ %ulie Cain Published August &'#& page #5
BUSINESS MANAGEMENT UNIT 4
TABLE 3: IMPACT OF TECHNOLOGICAL DEVELOPMENTS ON AUSTRALIA POST
Internal environment Impact
VCTA $ %ulie Cain Published August &'#& page #6
BUSINESS MANAGEMENT UNIT 4
TABLE -: AUSTRALIA POST1CHANGES USING 2OTTER3S THEORY OF CHANGE
MANAGEMENT
Stage Explanation Impact/example at Australia Post
5 &stablish a sense of urgency
6 /ssemble a group of people
7 reate a vision for the organisation
8 ommunicate the vision
9 &mpower others
: .lan to achieve short!term goals
; onsolidate all of the changes
< Institutionalise new approaches
VCTA $ %ulie Cain Published August &'#& page #7
BUSINESS MANAGEMENT UNIT 4
Part E: A&&e&&!ent ta&k 0a&ed on Au&tralia Po&t
The following assessment task is divided into two tasks=a test and a case study analysis.
Lour teacher will decide whether the two tasks are to be completed separately 15' minutes each part2
or as one larger task 1#'' minutes2.
The test will be undertaken under closed/book conditions. Prior to undertaking the case study part of
the assessment task, your teacher will authenticate your handwritten copy of Tables # to 4 on
Australia Post, which you may then use for reference in the case study part of the assessment task.
Dor ease of use, your teacher may set the test first, collect it and then hand out the case study part of
the assessment task.
A&&e&&!ent ta&k detail&
Na!e o" ta&k
Test and case study analysis of Australia Post
Unit2area o" &tudy
Fnit 4! 9anaging People and Change
Area of ;tudy &! ,The management of change(
$ut#o!e 3
Analyse and ealuate the management of change in a large2scale organisation and ealuate the
impact of change on the internal enironment of a large2scale organisation.
In&tru#tion& and #ondition&
Part A! Test=closed book
Part @! Case study analysis=you may refer to your handwritten copy of the tables 1# to 42 prepared
as part of your research 1which have been authenticated by your teacher2
Answer a"" uestions in this answer book. The marks for each uestion are indicated after each
uestion.
T*me a""#.e): #'' minutes 1including reading time2
Ma&0% a""#'ae): 5' marks 1to be ad>usted to a mark out of 4'2
VCTA $ %ulie Cain Published August &'#& page #8
BUSINESS MANAGEMENT UNIT 4
.art /1 Test
4ue&tion 5
3xplain the concept of change and provide an example of organisational change.
& marks
4ue&tion 3
-efine the following concepts.
a. organisational inertia
b. empowerment
& marks
VCTA $ %ulie Cain Published August &'#& page #C
BUSINESS MANAGEMENT UNIT 4
4ue&tion 6
.dentify each type of pressure and explain how the pressure might cause change in an organisation.
a. The federal government introduces a carbon tax.
b. Trade unions are negotiating a new enterprise bargaining agreement 13@A2.
4 marks
4ue&tion 4
Organisations can use high/risk and low/risk practices as part of the change process. -efine these
concepts, provide #ne example of each and evaluate the effectiveness of each practice.
VCTA $ %ulie Cain Published August &'#& page &'
BUSINESS MANAGEMENT UNIT 4
6 marks
4ue&tion 7
3xplain +ewin(s ,force/field analysis( theory. .dentify and explain #ne possible driving force and #ne
possible restraining force an organisation might face when introducing change.
4 marks
VCTA $ %ulie Cain Published August &'#& page &#
BUSINESS MANAGEMENT UNIT 4
4ue&tion 8
Analyse and evaluate the role of leadership in the change management process.
& marks
4ue&tion 9
,All organisations must manage change to try to ensure that the process is successful.( .dentify and
explain /#(& stages of *otter(s change management theory. 3xplain why it might be important for an
organisation to have developed a change management strategy.
VCTA $ %ulie Cain Published August &'#& page &&
BUSINESS MANAGEMENT UNIT 4
#' marks
VCTA $ %ulie Cain Published August &'#& page &)
BUSINESS MANAGEMENT UNIT 4
E4&a .&**ng %!a'e */ &e5(*&e)6 C"ea&"$ "a,e" +e 5(e%*#n6
VCTA $ %ulie Cain Published August &'#& page &4
BUSINESS MANAGEMENT UNIT 4
.art B1 ase study analysis4/ustralia .ost
4ue&tion 5
3xplain the issue of technological development and how it has impacted on Australia Post.
) marks
4ue&tion 3
3xplain how the following +&ee factors acted as pressures on Australia Post.
a. The increased value of the Australia dollar.
VCTA $ %ulie Cain Published August &'#& page &5
BUSINESS MANAGEMENT UNIT 4
b. Changes in social attitudes and lifestyle.
c. Access to technology, such as computers, the .nternet and e/commerce.
) x & marks Q 6 marks
4ue&tion 6
.dentify #ne driving force and #ne restraining force faced by Australia Post.
& marks
VCTA $ %ulie Cain Published August &'#& page &6
BUSINESS MANAGEMENT UNIT 4
4ue&tion 4
-escribe the impact of technological development on Australia Post(s internal environment.
5 marks
VCTA $ %ulie Cain Published August &'#& page &7
BUSINESS MANAGEMENT UNIT 4
4ue&tion 7
Australia Post has undergone organisational change. 3valuate the performance of the organisation in
relation to the changes introduced. Lou may use performance indicators 1P.s2 as part of your
evaluation.
4 marks
VCTA $ %ulie Cain Published August &'#& page &8
BUSINESS MANAGEMENT UNIT 4
E4&a .&**ng %!a'e */ &e5(*&e)6 C"ea&"$ "a,e" +e 5(e%*#n6
VCTA $ %ulie Cain Published August &'#& page &C
BUSINESS MANAGEMENT UNIT 4
Suggested answers and marking guide
Part ): Ca&e &tudy u&ing Au&tralia Po&t and it& re&(on&e to online
&o((ing
The following completed tables contain suggested answers only, as other issues and concepts could
be discussed.
TABLE 1: PRESSURES ON AUSTRALIA POST
Pressure Level of the environment Explanation Impact on Australia Post
3se of computers (acro ustomers and the
population in general are
using computers and email
more often.
,ewer letters being
delivered" impact on core
business operations.
Increased use of B.ay has
impacted on the number of
bills people pay at the post
office.
Increased participation in
the workforce and increased
hours of work
(acro (any people are working
longer hours# unable to
access retail outlets as
often. (ore convenient to
shop online.
Increased number of parcels
posted and /ustralia .ost
has had to develop and
refine its logistics.
The strong /ustralian dollar (acro The strong dollar has meant
that more people are
purchasing goods from
overseas.
=eed to change delivery
modes" have had to employ
more contractors to deliver
parcels.
TABLE 2: EVALUATION OF PERFORMANCE OF AUSTRALIA POST
Performance indicator
Explanation Trends/results
Sales revenue4level of sales of postal and other items in a
given period# e.g. one year
>evenue increased by 6.< per cent in the years 6??@26?5?
to 6?5?26?55.
.rofit4the difference between revenue and expenses 6??@26?5?4pre!tax profit was A697.6m compared with
A776.7m in 6?5?26?55. .rofit growth was up by 75.7 per
cent.
Staff satisfaction4a survey indicating whether employees
are happy and motivated in their employment
The new &B/ was overwhelmingly voted for and /ustralia
.ost has spent A6?m on training employees to improve their
skill levels.
ustomer satisfaction @: per cent of domestic letters were delivered on time.
-evel of waste 75 per cent of non!ha)ardous waste is recycled currently.
The plan is to reach a target of ;? per cent by 6?5:.
VCTA $ %ulie Cain Published August &'#& page )'
BUSINESS MANAGEMENT UNIT 4
TABLE 3: IMPACT OF TECHNOLOGICAL DEVELOPMENT ON AUSTRALIA POST
Internal environment Impact
Operations =ew systems have had to be put into place to cope with the extra demand for
parcel delivery.
=ew logistics systems put into place.
=ew extended opening hours for some outlets.
=ew range of products introduced# e.g. My Shop in a Box# Load and Go cards.
(arketing hanges in the product range have led to increased marketing campaigns to
improve customer awareness# e.g. television advertisements for Load and Go
cards.
>esearch and innovation =ew developments using technology# e.g. being able to track parcels between
/ustralia and the 3nited States.
,inance /ustralia .ost has had to develop new costing structures. .resent binding world
agreements place a limit on what they can charge for a parcel from overseas
that weighs less than 6kg. osting /ustralia .ost money# they need to look at
other products to boost profit.
Buman resources CB>D (ore staff are needed# particularly at peak times such as hristmas. This has
led to the employment of more contractors. B> needs to source these
contractors and ensure that they have the skills re'uired.
=ew training programs have to be introduced for staff with the advent of new
products. Some# for example My Shop in a Box# re'uire specialised knowledge
to support customers and small businesses.
orporate culture hange management can be stressful for those involved. /ustralia .ost has
introduced new programs to its health and wellbeing program area to support
employees and has provided money to improve employability skills" such
measures usually lead to improved corporate culture and staff satisfaction.
Structure Organisational structure changes due to changes in the needs of customers.
/ustralia .ost has restructured its business units and branched into new areas
beyond the traditional postal services.
VCTA $ %ulie Cain Published August &'#& page )#
BUSINESS MANAGEMENT UNIT 4
TABLE -: AUSTRALIA POST1CHANGES USING 2OTTER3S THEORY OF CHANGE
MANAGEMENT
Stage Explanation Impact/example at Australia Post
5 &stablish a sense of urgency Inspire and communicate the need to
introduce changes.
/ustralia .ost had to redesign some of
its core business with the decline in the
number of letters posted and the move
to parcel delivery.
6 /ssemble a group of people / group is needed to lead the
organisation through the changes.
/ustralia .ost and its main committees
looked at the business and developed
a new business model based on units.
The senior managers and committees
led this change.
7 reate a vision for the organisation The team leading the change need to
develop a vision and be clear about
what strategies are needed to carry out
this vision.
/ustralia .ost had three elements in its
strategic plan# restore a self!sustaining
letters business" grow the full!value
chain in parcels and develop
e!commerce" and build a trusted multi!
channelled services offer in retail and
digital.
8 ommunicate the vision The vision needs to be made known to
all stakeholders and involve as many
people as possible in the process.
/ustralia .ost has modified its vision
statement and strategic plan to
incorporate the changes. These have
been communicated to government#
customers# suppliers and employees.
9 &mpower others To achieve the vision and the change#
any obstacles or blocks need to be
removed so that employees can make
the necessary changes.
/ lot of money was invested into
training employees# and contractors
were sourced to allow the employees
to bring in the changes re'uired by
senior management. Training provides
the skills to carry out the change.
These changes were clearly
communicated to those affected.
: .lan to achieve short!term goals If short!term gains and wins are
established and celebrated# then those
involved in the change process can
see some progress being made.
/ustralia .ost set specific targets in the
short!term so that they could measure
the success or otherwise of the
changes.
; onsolidate all of the changes /t this stage# changes that have been
made have to be ingrained into current
practice so that employees don%t slip
back into the old methods prior to the
change.
/ustralia .ost has continued to
consolidate the changes and plans to
introduce more technology and
services# e.g. parcel tracking and 68!
hour access to parcel pick!up.
< Institutionalise new approaches Once the changes have been made#
they need to be reinforced so that the
change becomes the norm. The
change needs to be monitored to
ensure that it has been implemented
correctly.
/ustralia .ost has made a number of
changes to its structure# business units
and products. The changes have been
successful so far# as profit and revenue
have both increased as a result of the
changes.
VCTA $ %ulie Cain Published August &'#& page )&
BUSINESS MANAGEMENT UNIT 4
A&&e&&!ent ta&k
Part A: Te&t
4ue&tion 5
E4!"a*n +e '#n'e! #/ '+ange an) !&#7*)e an e4am!"e #/ #&gan*%a*#na" '+ange6 82 ma&0%9
The concept of change can be defined as any alteration to an organisation. The change or alterations
may be significant and impact on the whole organisation or may be relatively minor where only one
part of the organisation is affected. An example of organisational change is when an organisation
restructures. .t may change one or more of its management functions to ensure that it remains
competitive. An organisation such as a motor vehicle manufacturer might decide to change its
suppliers and supply chain management, therefore affecting operations.
#arking guide0 % mark for definition, % mark for example
4ue&tion 3
De/*ne +e /#""#.*ng '#n'e!%6
a6 #&gan*%a*#na" *ne&*a 81 ma&09
Organisational inertia can be defined as the lack of ability of an organisation to react to
pressures for change. .f the organisation is inert then change is not likely to occur. A number of
factors could cause this, for example a negative corporate culture, which means that
employees resist change or if an organisation has a powerful tradition and is conservative then
change is less likely to occur.
,6 em!#.e&men 81 ma&09
3mpowerment is when employees are given the power or authority to make decisions. There is
likely to be less resistance if employees have the authority to introduce the changes and make
their own decisions.
#arking guide0 % mark for each definition; an example is not re!uired but might support the definition
4ue&tion 6
I)en*/$ ea'+ $!e #/ !&e%%(&e an) e4!"a*n +#. +e !&e%%(&e m*g+ 'a(%e '+ange *n an
#&gan*%a*#n6
a6 T+e /e)e&a" g#7e&nmen *n&#)('e% a 'a&,#n a46 82 ma&0%9
The introduction of a carbon tax is a macro pressure as it is outside the control of organisations
and will impact on most, if not all, businesses. A new tax by the government means that costs
for organisations will increase. This additional cost will either be passed on to customers in the
form of higher prices or absorbed by the organisation, which may mean less profit if the higher
costs cannot be offset with savings from other areas or the achievement of greater efficiencies.
,6 T&a)e (n*#n% a&e neg#*a*ng a ne. ene&!&*%e ,a&ga*n*ng ag&eemen 8EBA96 82 ma&0%9
.f trade unions are negotiating a new enterprise bargaining agreement 13@A2, this can be
classed as an operating pressure as it tends to involve trade unions from a particular industry or
occupation. The negotiations can have an impact on the organisation. .f the 3@A negotiations
are successful, then the organisation might have to make changes to work practices or look at
production methods to implement changes in working conditions or a pay rise. .f the
negotiations are not successful, then the organisation might have to deal with strike action or
other forms of industrial disputes, which may cause the organisation to lose money.
VCTA $ %ulie Cain Published August &'#& page ))
BUSINESS MANAGEMENT UNIT 4
#arking guide0 for each pressure, % mark for identification of the pressure and % mark for a
description of how it might impact on the organisation.
4ue&tion 4
O&gan*%a*#n% 'an (%e +*g+:&*%0 an) "#.:&*%0 !&a'*'e% a% !a& #/ +e '+ange !&#'e%%6 De/*ne
+e%e '#n'e!%; !&#7*)e one e4am!"e #/ ea'+ an) e7a"(ae +e e//e'*7ene%% #/ ea'+ !&a'*'e6
8< ma&0%9
+ow/risk practices are those based on a participative approach to implementing change. +ow/risk
practices include approaches based on two/way communication, empowerment of employees and
establishing work teams. <igh/risk practices, on the other hand, encompass an autocratic approach to
change. <igh/risk practices can include intimidation, coercion and threats. Communication is likely to
be one way and the situation or information might be manipulated.
.f an organisation wants to implement change successfully it must adopt low/risk strategies as these
are more likely to be successful, and in the long/term the change is more likely to be made, as
stakeholders are involved in the change process. The use of high/risk strategies might work in the
short/term but are unlikely to lead to real and sustained changes.
#arking guide0 two x % mark for definitions of low2risk and high2risk strategies; two x % mark for an
example; two x % mark for an ealuation of each type of practice.
4ue&tion 7
E4!"a*n Le.*n3% =/#&'e:/*e") ana"$%*%3 +e#&$6 I)en*/$ an) e4!"a*n one !#%%*,"e )&*7*ng /#&'e
an) one !#%%*,"e &e%&a*n*ng /#&'e an #&gan*%a*#n m*g+ /a'e .+en *n&#)('*ng '+ange6
8- ma&0%9
+ewin(s ,force field analysis( is a tool or theory that can be used to understand the effects and
problems associated with implementing change in an organisation. .n any given situation, there is a
point where forces and counter forces will either allow or block change. -riving forces are those
forces that help push the change through. The driving force may be a positive corporate culture or
incentives offered as a means to motivate employees. 0estraining forces are those that block or
prevent the change from happening. 0estraining forces can include apathy, a negative corporate
culture and hostility towards management. .f the driving forces are greater than the restraining forces,
then the change will be successful. .f the restraining forces are eual to or greater than the driving
forces then the change will be unsuccessful.
#arking guide0 % mark each for a definition of driing and restraining forces .' marks/; % mark each
for an example.s/ of a driing and restraining force .' marks/
4ue&tion 8
Ana"$%e an) e7a"(ae +e &#"e #/ "ea)e&%+*! *n +e '+ange managemen !&#'e%%6 82 ma&0%9
+eadership is vital in the change management process. +eaders need to be able to drive the change
and keep up the momentum. .f there is not skilled and positive leadership at the top of the
organisation then the change is unlikely to occur. +eaders need to be possess a number of skills
including! being able to communicate their vision with employees and other stakeholdersN the ability to
be proactive and also to adapt behaviours and other resources to stop any problemsN and the ability to
diagnose and analyse the process and then make changes as necessary.
#arking guide0 % mark for an analysis and % mark for an ealuation of the skills needed
VCTA $ %ulie Cain Published August &'#& page )4
BUSINESS MANAGEMENT UNIT 4
4ue&tion 9
=A"" #&gan*%a*#n% m(% manage '+ange # &$ # en%(&e +a +e !&#'e%% *% %(''e%%/("63
I)en*/$ an) e4!"a*n four %age% #/ 2#e&3% '+ange managemen +e#&$6 E4!"a*n .+$ * m*g+
,e *m!#&an /#& an #&gan*%a*#n # +a7e )e7e"#!e) a '+ange managemen %&aeg$6
81> ma&0%9
Suggested plan0
Dour of the following stages are explained!
# 3stablish a sense of urgency.
& Assemble a group of people.
) Create a vision for the organisation.
4 Communicate the vision.
5 3mpower others.
6 Plan to achieve short/term goals.
7 Consolidate all of the changes.
8 .nstitutionalise new approaches.
3xplanation of why it is important for an organisation to develop a change strategyN for example!
communicate with stakeholdersN overcome resistance and hostilityN allow everyone to understand
what the change process entails.
#arking guide0 ' marks per stage of 4otter identified and explained .needs to be detailed for full '
marks/; ' marks for an explanation of why a change strategy is important.
VCTA $ %ulie Cain Published August &'#& page )5
BUSINESS MANAGEMENT UNIT 4
Part B: Ca&e &tudy analy&i&/Au&tralia Po&t
4ue&tion 5
E4!"a*n +e *%%(e #/ e'+n#"#g*'a" )e7e"#!men an) +#. * +a% *m!a'e) #n A(%&a"*a P#%6
83 ma&0%9
Technological development can cause change in an organisation. .ncreased use of .CT for business
operations and communication has been a far/reaching change and has impacted on many
organisations. Australia Post has been affected by change in a number of ways due to technological
development. These include changes in the way people use the postal service. The increased use of
email has led to a decrease in the amount of mail delivered. On the other hand, the rise of
e/commerce and online shopping has meant that Australia Post has had to change to deal with the
increased volume of parcels now being delivered. A further change due to technological development
is changes in the types of products and services offered by Australia Post.
#arking guide0 % mark for a definition of technology deelopment as a change issue; an in2depth
explanation of one impact or two or three in less detail .' marks2
4ue&tion 3
E4!"a*n +#. +e /#""#.*ng three /a'#&% a'e) a% !&e%%(&e% #n A(%&a"*a P#%6
a6 T+e *n'&ea%e) 7a"(e #/ +e A(%&a"*a )#""a&6 82 ma&0%9
The increased value of the Australian dollar means that it is more attractive for Australian
consumers to purchase overseas as they are able to obtain products at a cheaper price. This
has led to an increase in the number of parcels that have to be delivered by Australia Post.
,6 C+ange% *n %#'*a" a*()e% an) "*/e%$"e6 82 ma&0%9
Changes in social attitudes and lifestyle have led to changes in the way people shop and the
methods used by businesses to reach their customers. +onger working hours, reduced leisure
time and access to computers and mobile phones with .nternet access has meant that people
are staying at home and shopping online. As a result, Australia Post has to deliver these
parcels and has also developed software to assist small businesses in selling online as well.
'6 A''e%% # e'+n#"#g$; %('+ a% '#m!(e&%; +e Ine&ne an) e:'#mme&'e6 82 ma&0%9
.ncreased access to technology, such as computers, the .nternet and e/commerce, for
customers and businesses has changed the way customers are reached. 9ore people are
likely to use the website of a business before visiting the premises and businesses are starting
to provide services for customers via the .nternet and their website. Australia Post offers #y
Shop in a -ox for small and medium/si:ed businesses to take advantage of the increased use
of technology by customers.
#arking guide0 three x % mark for definition5explanation of the pressure; three x % mark for an
explanation of the link to Australia )ost and the impact on it.
4ue&tion 6
I)en*/$ one )&*7*ng /#&'e an) one &e%&a*n*ng /#&'e /a'e) ,$ A(%&a"*a P#%6 82 ma&0%9
One driving force faced by Australia Post is the increased take up of technology and the use of the
.nternet for online shopping. This has meant that Australia Post has made changes to take advantage
of this development. One restraining force has been the rapid increase in the volume of parcels that
need to be delivered. Australia Post has had to employ contractors to cope with the extra demand, for
example at Christmas time, and there have been issues with parcels not being delivered in a timely
manner. .t has been a restraining force, as Australia Post has not had the capacity and time to deal
with the unexpected demand.
VCTA $ %ulie Cain Published August &'#& page )6
BUSINESS MANAGEMENT UNIT 4
#arking guide0 % mark for each force, must relate each force to Australia )ost.
4ue&tion 4
De%'&*,e +e *m!a' #/ e'+n#"#g*'a" )e7e"#!men #n A(%&a"*a P#%3% *ne&na" en7*&#nmen6
8? ma&0%9
;tudents need to discuss at least two changes in some detail.
The impact of each change could include one or more of the followingN
• operations
• human resources
• marketing
• finance
• structure
• corporate culture
• research and development.
#arking guide0 see "able 6 on page 6% for more information; % mark for an oeriew of the impact of
the change; two x ' marks for a detailed description of two changes .or three or four in less detail/.
4ue&tion 7
A(%&a"*a P#% +a% (n)e&g#ne #&gan*%a*#na" '+ange6 E7a"(ae +e !e&/#&man'e #/ +e
#&gan*%a*#n *n &e"a*#n # +e '+ange% *n&#)('e)6 Y#( ma$ (%e !e&/#&man'e *n)*'a#&% 8PI%9
a% !a& #/ $#(& e7a"(a*#n6 8- ma&0%9
Australia Post has been impacted by technological development. Performance has been mixed, with
some increases in costs due to the cost of parcels weighing less than & kg and some increases in
revenue and profit due to the changes made at Australia Post to take advantage of the new situation.
Operations have changed as external pressures and technological development have brought about
changes in the way customers shop. Australia Post has generally been successful in meeting these
challenges as indicated by their performance indicators. Changes in the way people use the mail
system 1a move away from letters to online shopping2 has provided Australia Post with more
opportunities to expand and develop the postal services offered.
P.s include!
• sales revenue=increased since &''CP&'#'
• profit=increased by )#.) per cent in &'#'P&'##
• customer satisfaction=surveys found that C6 per cent of letters were delivered on time
• level of waste=recycling of non/ha:ardous waste is )# per cent.
#arking guide0 ' marks for an ealuation of how Australia )ost has managed the change; ' marks for
information about the use of )7s to support the ealuation.
VCTA $ %ulie Cain Published August &'#& page )7

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