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 average) 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
a. i. policy
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Answer
A policy is a formalized guideline or principle that governs decisions and actions within an organization. It provides a framework for consistent decision-making and helps ensure that the organization's objectives are met while adhering to laws and ethical standards.
Step 2
a. ii. organisational change
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Organisational change refers to the process of making alterations to the internal structure, strategies, or processes of an organization. This change may be motivated by internal factors, such as cultural shifts, or external influences, like market dynamics or regulatory requirements.
Step 3
b. Describe an appropriate change management theory Slippery Shirt Company could use to implement the new policies.
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Slippery Shirt Company could implement Lewin's change management theory, which involves three key steps: 1) Unfreezing, where the company recognizes the need for change and prepares employees for the transition; 2) Changing, where the new policies and practices are implemented effectively; 3) Refreezing, where the changes are stabilized and made part of the organizational culture to ensure adherence.
Step 4
c. Discuss how two elements of the external environment of Slippery Shirt Company are pressuring the organisation to change its policies.
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Economic Pressure: The growing demand for ethically produced clothing is compelling Slippery Shirt Company to rethink its business practices to remain competitive in the market. Consumers are increasingly favoring brands that uphold socially responsible practices.
Regulatory Pressure: Government regulations regarding labor practices and workplace standards are becoming more stringent. This external legal environment pressures the company to adapt and ensure compliance with new and existing laws, which may motivate a change in its policies.