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Joe Johnson owns and runs Slippery Shirt Company - VCE - SSCE Business Management - Question 3 - 2006 - Paper 1
Question 3
Joe Johnson owns and runs Slippery Shirt Company. He makes large profits by using 'sweatshops' (where pay and conditions are well below the industry standard) to sew... show full transcript
Worked Solution & Example Answer:Joe Johnson owns and runs Slippery Shirt Company - VCE - SSCE Business Management - Question 3 - 2006 - Paper 1
Step 1
Define the following terms. policy
Answer
A policy is a formal statement that outlines the guiding principles and rules that govern an organization’s decisions and actions. It serves as a framework for consistent decision-making and helps ensure that actions align with the organization's objectives and values.
Step 2
Define the following terms. organisational change
Answer
Organisational change is the process of making alterations to an organization’s structure, culture, or operations. This includes adapting to internal factors such as leadership changes and external pressures like market demands or regulatory shifts, enabling the organization to remain competitive and responsive.
Step 3
Describe an appropriate change management theory Slippery Shirt Company could use to implement the new policies.
Answer
Lewin's change management theory is suitable for Slippery Shirt Company. The first step is 'unfreezing' the current state by addressing old patterns and preparing the staff for change. This involves communicating the need for new policies to improve working conditions.
The second step is 'movement', where the organization implements the new policies and training programs to facilitate the transition. Employees are engaged in the process, fostering acceptance of changes.
Finally, 'refreezing' stabilizes the organization at the new state by establishing new norms and practices that support the recently implemented changes.
Step 4
Discuss how two elements of the external environment of Slippery Shirt Company are pressuring the organisation to change its policies.
Answer
One element is economic pressure; as consumers increasingly demand ethical sourcing and fair labor practices, Slippery Shirt Company faces a competitive disadvantage if it continues its current practices.
Another element is regulatory pressure; governments and organizations globally are imposing stricter labor laws and ethical guidelines. Compliance with these regulations is crucial for the company to avoid penalties and maintain its license to operate.