Change management: technological development at Australia Post

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BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
1

Change management:
technologic
al
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 Management Unit 4
: ‘The
management

of change’
.

This article comprises:

Part A: Key knowledge relating to the management of change

Part B: Technological development as a significant change management
issue

Part C: Research material on the growth of online shopping as a form of
technologic
al change

(significant issue)

Part D: Case study using Australia Post and its response to online shopping

Part E: Assessment task based on Australia Post

Part A: Key knowledge relating to the management of change

Overview of change management

All organisa
tions 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 us
ually 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.

Pressures for change

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 cultu
re, management styles, tasks, policies and processes
,

and management functions.

Pressures for change in the internal environment

Pressures in the internal environment are those that are unique to the
organisation. Pressures
include:

owners/shareholders, b
oard 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 1.

BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
2

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 po
sitive 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. Changes in strategic plans will impact
all the way through the organisation. The b
oard is not involved in the day
-
to
-
day activities of the
organisation and should not

interfere with the management;

however,
it

shou
ld 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.

Em
ployees

Employees want to work in an ethical work place and be treated fairly. Employees will place pressure on
organisations to ensure that the
re are flexible work practices and anti
-
bullying
and equal opportunity
policies. They will also
pressure the or
ganisation to become an ‘employer of choice’.

Employees may also pressure an organisation to introduce or adapt
work
-
related
policies and practices.

Organisational
structure

Many organisations have been downsizing and returning to their core businesses,
often in an effort to
reduce costs. These strategies have
involved

the removal of some

layers of organisation
s.

E
mployees have become increasingly multi
skilled and downsizi
ng has changed the structure of
organisation
s
. Most large organisations are now bas
ed on a less hierarchical functional structure rather
than
on
a bureaucracy.

Corporate
culture

Corporate culture
refers to

the shared values, beliefs and attitudes of
an

organisation. The management
style, policies, structure and practices all impact on c
ulture in either a positive or negative way.

Pressures for change in the external environment

Operating pressures

The operating environment is unique to the organisation’s particular sector of the economy. All
organisations in a p
articular industry, for e
xample

the retail
industry
, have similar challenges and
pressures in this sector of the environment.

Table 2 outlines the main operating pressures on
organisations.










All organisations
need

good working
relatio
nships with reliable suppliers; for
e
xample,
the
car industry
depends
on
a regular
supply of
auto
components.

BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
3

TABLE 2: OPERATING PRESSURES ON ORGANISATIONS

Pressures

Impact on organisation

Customers

Customers 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
,

th
en they may miss opportunities to
increase sales and market share.

Being proactive rather than reactive will assist an organisation to retain and gain customers.

Competitors

Competitors are an important pressure on organisations. They must be monitored a
nd 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 Coles and
Woolworths are a good example of trying to
increase

sa
les in the market. Discount petrol vouchers,
special offers and loyalty cards are part of their marketing campaign
s
.

Suppliers

Suppliers are important
to any

organisation. There is a strong need for good working relationships with
reliable suppliers, par
ticularly 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
. S
ome car manufacturers
have had to

shut down production due to
issue
s

faced by
supplier
s
.

Trade u
nions

Trade unions can
have an
impact on organi
sations and force it to change. For example, u
nions 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.

Lobby/pressure
groups

Special interest groups will attempt to influence the actions of an organisation. Pressure groups may
lobby an organisati
on to change practices and policies
,

such as changes to carbon emissions,
recycling and waste management.

Financial
institutions

The deregulation of the banking and finance industry has allowed businesses to access funds more
freely and has provided oppor
tunities for businesses.

Macro environment

Pressures within the macro
environment

are outside the control of organisation
s, which
must plan
in
an effort to

manage these pressures. This area of the external environment is vital.

Table 3 outlines
the main m
acro pressures on organisations.

TABLE 3: MACRO PRESSURES ON ORGANISATIONS

Pressure

Impact on organisation

Economic forces

The state of the economy is vital and impacts on
an

organisation in a number of ways. Changes in
interest rates, the business cycle,

economic conditions in the rest of the world, government budgets
and the value of the
Australian dollar all impact on

organisation
s
.

Government forces

Federal, state and local governments all impact on organisation
s
. Changes in government policy and
regu
lations
may

cause organisations to respond
to
and change either practices or policies.

Legal forces

Changes in legislation impact on organisations. Laws may include equal opportunity, anti
-
discrimination, employee rel
ations, and occupational health and

sa
fety.

Technological
developments

Changes in technology
,

such as e
-
commerce, email
, the I
nternet and new technologies
,

all impact on
how businesses operate.

Social and cultural
forces

Organisations must be aware of changing

social and cultural

conditions.

Changes can include:

increas
ed participation rates for women; the need for work

life balance;

higher levels of education
;

and changes in
the
expectations of employees.

Environmental
issues

Awareness of the environment and the need to
examine

recycling

pr
actices
,
reduce

carbon
emissions and
improve
waste management have changed the way organisations are managed.

BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
4

Driving and restraining forces for change

Kurt Lewin developed a change model and an approach to change. Part of his theory uses ‘force field
an
alysis’
,

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. Lewin set out driving and
restraining forces for change. Driving forces pressure or push
an

o
rganisation to change.

These forces c
an impact in the following ways:



If driving forces are greater than the restraining forces then the change will be successful.



If restraining forces for change are greater than driving forces then the change will not b
e
successful.



If driving forces and restraining forces are equal then the change will be unsuccessful.

Driving forces include:



a positive corporate culture



participative management style



group decision
-
making



a clear vision



high productivity



clear manageme
nt practices and policies
.

Restraining forces include:



autocratic management styles



poorly communicated vision



low levels of productivity



high levels of workplace accidents



high levels of staff turnover



poor morale
.

Driving and restraining forces can be ex
plained using a car
as an

example. If 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
(restraining force) then the car won’t move forward. If the driver has his/her foot on the bra
ke and the
accelerator at the same time then the car won’t go anywhere (and may stall).

Kotter’s theory of change management

John Kotter developed the eight
-
stage model for implementing and managing change. The main
elements or steps

in the process are:

1

Establish a sense of urgency
.

2

Assemble a group of people
.

3

Create a vision for the organisation
.

4

Communicate the vision
.

5

Empower others
.

6

Plan to achieve short
-
term gains
.

7

Consolidate the changes
.

8

Institutionalise new approaches
.

BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
5

Strategies fo
r effective change management

All organisations must develop strategies to manage change. Many people are reluctant to make
changes due to uncertainty about the future and because it pushes people out of their comfort zone.
Research 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. In order to
successfully implement change
,

then organisations need to examine the strategies they are going

to
use. Strategies

can be either low
-
risk or high
-
risk practices.

High
-
risk practices include:



coercion and threats



m
anipulation, for example

omitting

information



using an autocratic management style
.

Low
-
risk practices include:



participative management s
tyle



two
-
way communication



empowerment of employees



using work teams



support all going through the change
.

Leadership of change

Leaders and managers are important in the successful management of change. Leaders need skills
such as being able to diagnose an
d understand
a situation. They also need to be able to
adapt to new
situations and responses as required
,

and communicate to all stakeholders about
a proposed change,
why it is needed,
and
what stage it is at

in the change process.

Management skills to ass
ist in the change process include communication and interpersonal skills,
visionary skil
ls, delegation skills, decision
-
making skills and pro
blem
-
solving skills.










Effective change management requires
good leadership skills in order to move a
team

smoothly through a change that will
benefit an organisation.



BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
6

Part B: T
echnological development

as a significant change
management issue

Over the past
20

years organisations have been quick to adapt tools such as email, e
-
commerce,
web
sites, computerise
d 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.

Pressures and the impact of change due to technological development

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:

Management

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.

Employees

employees need to develop new skills and chang
e work practices in ord
er to work in
organisations.

Em
ployees also need to become increasingly

multiskilled.

Corporate culture

this may change as a result of new technologies. Cultural shifts may occur when
applicants are recruited with new skills, experie
nces 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.

Customers

now expect organisations to use and develop technology as part of their business.

Trade unions

unions may have concerns about the introduction of new technologies as it may
mean job losses for employees who
se

skills become

redundant.

Competition

organisations will need to introduc
e and continue to improve the
technology
they use
to kee
p ahead of rival organisations.

Social and demographic pressures

there are now a number of different generations in the
workforce. These generations have different expectations
about

work and how organisation
s operate
.
New employees will expect to use tech
nology as part of their job.

Globalisation

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.


Driving and restraining forces fo
r change due to technological development

Table 3 lists the

main d
riving and restraining

forces for change due to technological development
.

TABLE 4: FORCES FOR CHANGE DUE TO TECHNOLOGICAL DEVELOPMENT

Driving forces

Restraining forces

Community use of tec
hnology

Cost of technology

Development of faster ways to complete tasks

Uncertainty re
garding

costs of implementing technology

Multiskilling of employees

provides more flexibility for
organisations

Employee resistance to technology

Large amounts of info
rmation can be processed quickly

Costs associated with training employees

The availability of portable devices means business can be
conducted

at different times.

Issues around maintenance of computer systems


BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
7

Part C:
Research material on the growth of
online shopping as a
form of technological change (significant issue)

Technological developments h
ave impacted on many areas of the management functions of
organisations
.

Operations, finance, research and

development and human resources are all impacted
by

technology. In Australia
,

more consumers are starting to purchase products
using online shopping
websites. I
nformation on the background and rise of online shopping in Australia

is provided on the
following pages
.

Background information

the growth of onli
ne shopping in Austra
lia

The value of online shopping
using

credit card
s

in Australi
a has grown by an average of 15 per cent

per year since 2005. The Reserve Bank has noted that postal flows from overseas suggest that
international online purchases

have al
so increased by an average of 1
0 per cent

per year since 200
5.
This is in contrast to the 1 per cent

average fall in domestic postal deliveries during the same period.
Private sector esti
mates of e
-
commerce growth vary,

with groups like IBISWorld tipping
that
the
industry
in Australia
will grow to $23.4 billion by 2014. IBISworld estimated
that
the overall

e
-
commerce industry was worth $18.6 billion in 2009.

(‘Strong g
rowth in online shopping’,

The
Age
,


4 February 2011
). Another organisation
, Quantium O
nline, run by Simon Smith, the former boss of
eBay in Australia, believes
that
the value of Australian online purchases is rising by 26 per cent a
year. Quantium has also found and h
ighlighted a number of trends.
Some of the main findings

about
online reta
iling include:




Of the top 20 online retailers used by Australians, 11 are dom
estic (
fully online
)

stores, five are
both traditional retailers and online stores
,

a
nd only four are based overseas.



The t
urnover of the top 15 domestic
online retailers is now

greater than the largest
single non
-
food retailer, Big W.



Some 40 per cent of online shoppers are aged over 45, while those under 25 account for just
15 per cent of transactions.



A Commonwealth Bank of Australia (CBA) report
states that over 45s make up 3
5 per cent of
the market and use a different age grouping at the younger end, suggesting

those under 30
account for

28 per cent of the business.

(
Reference: ‘Finally, a clearer picture of online
shopping’,
The
Sydney Morning Herald
, 29 July 2011
)

During Ch
ristmas 2011 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. Most of these orders
were placed with local Australian businesses. Liquor retailer
Dan Murphy’s and toys retailer
Toys‘R‘Us both experienced their larges
t ever online sales in the lead
-
up to Christmas. Some of the
most popular items purchased online from Toys‘R‘Us

were trampolines, pools, swing sets, Monster
High D
o
lls, LEGO and collecti
bles. Figures from Market Blueprint, Quantium’s database of CBA
customers’ transaction data,
highlight the rise of Australian
-
b
ased ‘e
-
tailing’. The likes of
DealsD
irect.com.au
, GraysO
nline.com, domestic eBay sellers and their peers have grabbed this
rapid
ly growing space while the established retailers were still in online denial.

PayPal spokesperson Adrian Christie said

that
about 70 per cent of purchases were made with
Australian retailers and about 30 per cent with overseas ones. ‘Our research shows the
re is definitely
a prefer
ence to buy Australian (goods)’,

he said. Mr 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. He als
o believed that retail stores in Australia would start using
their physical retail spaces for customer service and ret
urns and pick
-
ups for example. (Reference:

‘Biggest ever online shopping spree’,
The
Age
,
11 January 2011
)

In the 12

months since April 20
11
Australians spent more than $11 billion buying goods online.

BUSINESS MANAGEMENT UNIT 4

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© Julie Cain

Published August 2012

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8











The value of online shopping using credit
cards in Australia has grown by an average
of 15 per cent per year since 2005.



The National Australia Bank's latest online

retail sales

index found that I
nternet sales made up 5.1 per
cent of total retail spending in the 12
-
month period, up from 4.9 per cent a year earlier. Nearly three
quarters of the $11.1 billion spent by shoppers was on buying goods from Australian websites.

Online sp
ending was strongest in the ACT and Northern Territory, with those in Queensland and
Victoria the most reluctant to shop online.

(Reference:

‘Aussies’ online shopping bill hits $11b’,
The
Age
,
28 May 2011)

Km
art CEO Guy
Russo believes that online
shopping
does not pose a threat to retailers. He sees
online shopping as based on convenience and
that retailers such as Km
art fo
cus on pricing strategies
as Km
art is able to sell clothing at cheaper prices than online retailers.

There are als
o some issues for ret
ailers as a result of

online shopping. Shop owners and retailers are
concerned abou
t people scoping their stores

only to use information to buy cheaper products online.
Some retailers are starting

to develop strategies to deal with

this and many have start
ed to charge
customers who try on clothing and shoes. Some retailers have then refunded these charges if the
customer buys something from the store.

Australian Retailers Association executive director Russell Zimmerman said retailers were hurting
from high

employment costs, such as weekend penalty rates, expensive rent in shopping malls and
the GST exemption on overseas purchases up to $1000. A brand
-
marketing expert advises against
applying fitting charges as an online countermeasure a
nd argues that retail
ers should be ‘
s
elling the
shopping experience’

an
d ‘building that relationship’
.

It 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 purch
ase. Consumers were using
smartphones to compare prices between rival s
tores and asking retailers to ‘match that’
, a far more
significant threat than online purchases from overseas.

The skill

levels of some sales assistants w
as a concern, Dr Peters said. ‘
Being a retailer is and has
al
ways been a skilled expertise’,

he said. ‘It’s not a matter of having an idea and filling up a store with
stock and waiting for customers to walk in.’ Tony Eades, the creative director of BrandManager, said
retailers should no
t be cutting corners ‘by putting the younger school kids on and not training them
properly’.

Canberra Business Council is running courses through Canberra BusinessPoint, which provide advice
on adjusting to the business cycle, to help retailers adapt to th
e sma
ll but growing online threat.
(Reference: ‘The u
gly side of online shopping’,
The Age
,
11 April 2012)
.

BUSINESS MANAGEMENT UNIT 4

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© Julie Cain

Published August 2012

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9

Online shopping may also mean
that
consumers are buying products from
businesses

that are not as
ethical as consumers may believe they should be.

While online shopping has provided many opportunities for organisations
,

there are a number of
issues related to the rise in this type of business
activity. For example, some onl
ine businesses are
employing relatively unskilled staff who are given difficul
t, if not impossible, quotas and time to carry
out their job. 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
-
p
arty logistics con
tractors that
employ casual warehouse st
aff through labour hire
firms. ‘
They have
no obligation to those workers’, Donnelly says. ‘
They can tell them at a
ny time, “You
are finished”.' (Reference:

‘The dark face of a cheap and easy online shopping habit’,
T
he Age
,
6 April
2012
)

More Australians are starting to complete shopping, such as Christmas shopping, online. In the three
months to Octobe
r 2011, Australia Post saw a 24 per cent

increase in overseas
packages shipped
into Australia;

at the same time the A
ustralian dollar also increased in value.

Purchases bought overseas for le
ss than $1
000 are currently exempt from GST. Many retailers
believe that this is unfair and means
that
retailers cannot remain competitive.

Australians still prefer to purchase onlin
e from Australian organisations rather than those based
overseas. Surveys have found that Australian consumers feel safer dealing with Australian companies
and this provides potential for f
uture growth. (Reference:

‘Winners and losers at the online shoppin
g
mall’,

The Age
,
28 November 2011
)

Part D:
Case study using Australia Post and its response to online
shopping

(R
eference
:
http://auspost.com.au
)


Overview and background

Vision and mission statements

Australia Post
is a government business enterprise

(
GBE). Its vision statement is
:

‘Australia Post is
committed to providing high
-
quality mail and parcel services to all Australians’. Au
stralia Post’s
mission includes:

We will meet our custome
rs' changing needs by provid
ing:



innovative and eas
y
-
to
-
use products and services



friendly

service by knowledgeable staff




consistent on
-
time delivery




value for money



modern, efficient networks.

We will build our people's commitment to these goals by:



promoting job satisfaction



enc
ouraging participation

in the success of the business




recognising o
utstanding 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 ca
n sustain and develop its business.

BUSINESS MANAGEMENT UNIT 4

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Published August 2012

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Australia Post had three elements in
its

strategic plan. These a
re:

a.

r
estore a self
-
sustaining letters business

b.

g
row the full
-
value chain in parcels and win in e
-
commerce

c.

b
uild a trusted multi
-
channe
l
led service
s offer in retail and digital
.

(Source:
Australia Post Annual Report
,
2010

11
)

Customer service charter

Australia Post plays an important role in the Australian community and is required by law to meet
specific performance standards. These are called Commu
nity Service Obligations (CSOs). The
Customer Service Charter aims to communicate these standards to customers.

Corporate g
overnance

Australia Post has clearly set out

corporate governance practices,
which means
that
it focuses on
providing appropriate lev
els of accountability and disclosure. This information is provided to the public
through
its

Annual Report.

In addition, as a GBE, Australia Post is subject to the requirements of the
Australian Postal
Corporation Act
, and the
Commonwealth Authorities and
Companies Act
, as well as the government's

Governance Arrangements for Commonwealth Business Enterprises
.

O
rganisational s
tructure

Within the Australian Government, the Minister for Broadband, Communications and the Digital
Economy has portfolio responsib
ility for Australia Post. Under a dual shareholder model, overall
responsibility is shared with the Minister for Finance and Deregulation.

The organisation was restructured in 2010 into four strategic business units
, namely: Postal Services,
Retail Service
s,

Express Distributor Services
,

and e
-
Services. The focus of these units is on business
efficiency and service quality.









Australia Post is a government business
enterprise (GBE) and consists of four
strategic business units: Postal Services,
Reta
il Services, Express Distributor
Services, and e
-
Services.


BUSINESS MANAGEMENT UNIT 4

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Published August 2012

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11

Board

of d
irectors

The Australia Post Board comprises up to nine directors, eight of whom serve in a non
-
executive
capacity. The Managing Director is the sole executive director. Non
-
executive di
rectors are appointed
by the Governor
-
General on the nomination of the portfolio minister.

The Board is accountable for Australia Post's ov
erall performance. It sets the c
orporation's key
objectives an
d strategies through a rolling three
-
year Corporate Pla
n, which is submitted annually to
the shareholder ministers. Progress against the plan is reported quarterly.

Committees

Two Board c
ommittees assist the Board in the disc
harge of its responsibilities: Audit &

Risk
Committee and Human Resources.

The Audit
&

Risk 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 Human Resources Committee oversees areas such as
:




r
ecruitment, selection and succession planning



remuneration



culture and ethics



learning and development



occupational health and safety



terms and conditions of employment



organisational structure.

Policies

Australia Post has develope
d a range of polic
ies including:




Ethics

Policy



Equal Opportunity Policy



Diversity Policy



Procurement Policy (relates to supply chain management)



Supplier Code of Conduct



Refund P
olicy



Corporate Responsibility Policy



Environmental Policy
.

Corporate social responsibility (C
SR) and business ethics

Australia Post’s primary corporate objective is to build a sustainable business that provides trusted
distribution, communications and transaction services for
all Australians,

wherever they reside.

It has worked on developing a su
stainable business by managing Australia Post in a way that
balances the needs and expectations of the four key st
akeholder groups

people (employees),
customers, the Australian community, and shareholder (the federal government).

At the heart of the approa
ch to corporate responsibility is the notion of ‘balance’. In order to satisfy
stakeholder expectations
,

Australia Post accept
s

that the business must be managed in a way that
balances commercial returns with customer service and community interests.

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The
key objectives of the
Corporate Responsibility Policy

are to:



ensure

that
long
-
term sustainability is founded on
responsible business practices




give meaningful consideration to
community and environmental impacts

and stakeholder
expectations when decisio
ns are made



be
open and accountable

to employees, customers, the Australian community and
shareholder on the decisions made and the impact.

Sponsorship

Australia Post's sponsorship programs seek to achieve a balance between community,
environmental, spo
rting, educational, health and arts/cultural events and activities.

Examples of
Australia Post sponsorship
programs
include:

Australia Post Legends

Australia Post initiated the
Australia Post Australian Legends Award

in 1997 to honour living
Australians w
ho have made a unique 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.

Stawell Gift

Australia Post sponsors the Stawell Gift. It has had the naming rights for the gift for the past 16 years.

Melanoma research

Since 1998, Australia Post has supported the Australia Pos
t Medical Research Fellowship through the
Royal Australasian College of Physicians. This fellowship provides continued support for melanoma
research.

Breast Cancer Network Australia

Australia Post is a major sponsor of Breast Cancer Network Australia's c
ommunity based

Mini
-
Field
of Women


events.
Mini
-
Fields
,

held in over 80 communities across Australia, raises public awareness
and funds for breast cancer.

Australia Post is also providing free delivery of Breast Cancer Network Australia's

(BCNA)

My Jour
ney
K
it
. The kit contains information and resources for women newly diagnosed with breast cancer, plus a
repository for test results and a personal journal. BCNA has developed the content of the kit by
consulting Australian women who have experienced breas
t cancer.

Staff health and wellbeing

Australia Post provides a health and wellbeing program for all employees. As part of this program,
and recognising that men's issues play an important role in employee wellbeing, Post has been a
financial supporter of
Mensline Australia since 2002.
Australia
Post now sponsors a dedicated
Mensline Australia telep
hone counselling line for its

male employees
.


Core business

Australia Post is required by law to provide a universal letter service
that

is reasonably accessib
le to
all Australians and, in addition, to provide a standard letter service at a uniform price (currently 60
cents) from anywhere to anywhere in the country.

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Australia Post also provides a range of
products and services including:



Load and Go

c
ards (the
se can be used as a debit card to purchase good
s

online). 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
ongoin
g costs or interest charges on the card.)



Express Post



Parcel Post



postage p
roducts



stamp collections



Samsung Galaxy p
hones



gift cards



g
ifts



c
oins



My Shop in a Box
,
an all
-
in
-
one e
-
commerce solution that helps small and medium
-
sized

businesses
to
set up th
eir own customised and secure online

shop. Businesses receive:




a unique W
eb address to give to
their

customer
s



a 30
-
day live trial



a
n online catalogue where a picture and description of the product can be uploaded



a simple
-
to
-
use order and customer manage
ment system to manage inventory and sales



u
nlimited local hosting



a

payment gateway through SecurePay as well as PayPal



local support is available via phone or email.



stationery



personalised st
amps
.

Changes at Australia Post

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 tr
aditional letters, the use of B
Pay rather than paying bills at Australia Post outlets
,

and the
increase in the value of the Australian dollar
, which le
d
to Australia Post losing money
delivering all
parcels weighing less than 2

kg.

As a resu
lt of

this change, Australia Post has

further developed its core business. It has introduced a
range of changes to parcel delivery and to the operations man
agement function. These include:



parcel lockers to
allows customers to
pick up good
s

bought online



s
elf
-
service machines for do
mestic parcels and special eBay low
-
cost satchels and boxes



extended hours of operations at some 100 outlets; these are being trialled in some capital cities



access to parcel lockers 24 hours a day to allow peop
le who work long h
ours and full
-
time to
access parcels outside
of Australia Post opening hours



t
he changes will allow Australia Post to cope with the techno
logical changes related to the
I
nternet and digital capabilities
.

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A
ustralia Post estimates that 70 per cent

of its pa
rcel business was generated by online shopping and
generated $1b in revenue. In the future there are moves to upgrade 60 business hubs to focus on
small to medium
-
sized

business activity and the introduction of new technology that will be able to
electroni
cally track products between Australia and the United States. The organisation is also going
to work with Australian retailers with their online ord
ering and payments through its SecureP
ay
business

and the
My Shop in a Box

product. (Reference:
‘Post change
s to cope with online shopping
boom’,
The
Sydney Morning Herald
,
10 October 2011
)

Impact of changes on Australia Post

Changes have been made to the core business of Aust
ralia Post. These have included:



new extended business hours
, such as late opening and
S
aturday mornings



new products for customers and businesses



new technology to track parcels



staff trained in the new products
, such as
Load and Go



s
upport off
ered for some products such as
My Shop in a Box



increased complexity in regard

to parcel delivery
and logistics



i
ncreased number of employees and contractors to deliver

parcels during peak periods, such
as

Christmas



Australia Post iPho
ne app launched in July 2011 has been the number 1 most downloaded free
a
pp in the iTunes business category.

Performanc
e i
ndicators and evaluation of Australia Post’s performance



Increased sales due to online shopping. Christmas 2011 saw record deliverie
s for the
organisation. In 2010

11 by 2

revenue increased.8 per cent

(at the s
ame time costs increased
by 1.2 per cent
).



Level 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 Express, which was criticised o
n

http://www.productreview.com.au
,
said
that
about 98 per cent of its deliveries arrived in time for
Christmas and there were valid reasons for those that did not.



$20m wa
s spent on ‘Future Skills’

training
and employability skills
(staff training in

areas such
as parcels, logistics, retail and digital services

due to the growth in online shopping)
.



Increased profits came from the handling of parcels in some areas while costs associated with
items such as DVD
s were not profit
able. Profits increased in 2010

11 to $332.3m

compared
to
$253.2m in 2009

10 (up by 31.3

per cent from last year).



96 per cent of domestic letters

were delivered on time or early
.



p
ublic donations collected totalled $2.9m



31 per cent

of no
n
-
hazardous waste

was recycled (the target is 70 per cent

by 2016).



Some retailers were critical of Australia Post for delivering items from overseas
,

as it cut into
the earnings of traditional retailers.

(S
ome data sourced from
: ‘Christmas online rush a “
learning process”
: Australia Post’,

The Age

and
Australia Post Annual Report, 2010

11
).

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Published August 2012

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Student tasks


Complete the following four tables in preparation for the assessment task.

TABLE 1: PRESSURES ON AUSTRALIA POST

Pressure

Level of the environment

Expla
nation

Impact on Australia Post

























TABLE 2: EVALUATION OF PERFORMANCE OF AUSTRALIA POST

Performance Indicator

Explanation

Trends/results




















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TABLE 3: IMPACT OF TECHNOLOGICAL DEVELOPMENTS ON AUSTRALIA POST

Internal environment

Impact













































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TABLE 4: AUSTRALIA POST

CHANGES USING KOTTER’S THEORY OF CHANGE
MANAGEMENT

Stage

Explanation

Impact/example at Australia Post

1

Establish a sense of urgency







2

Assembl
e a group of people








3

Create a vision for the organisation







4

Communicate the vision







5

Empower others








6

Plan to achieve short
-
term goals







7

Consolidate all of the changes







8

Institutionalise new approaches







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P
art E: A
ssessment task based on Australia Post

The following

assessment task
is divided into two tasks

a test and a case study analysis.

Your teacher will decide whether the two tasks are

to
be completed separately (50 minutes each part)
or as one larger

task (100 min
utes).

The t
est 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 1 to 4 on
Australia Post,
which
you may

then use
for reference in the case study part of the assessment task.
For ease of use,
your teacher

may
set

the test first, collect it and then hand out the case study part of
the assessment task.

Assessment task details

Name of task

Test and case study analysis
of Australia Post

Unit/area of study

Unit 4: Managing People and Change

Area of Study 2: ‘
The management of change’

Outcome 2

Analyse and evaluate the management of change in a large
-
scale organisation and evaluate the
impact of change on the internal env
ironment of a large
-
scale organisation.

Instructions and conditions

Part A: Test

closed book

Part B: Case study analysis

you may refer to your handwritten copy of the t
ab
les (1 to
4) prepared
as
part of your research (which have

been authenticated by your

teacher)

Answer
all

questions in this answer book. The marks for each question are indicated after each
question.

Time allowed:

100 minutes (including reading time)

Marks allocated:

50 marks (to be adjusted to a mark out of 40)

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Part A: Test

Question 1

E
xplain

the concept of change and provide an example of organisational change.










2

marks

Question 2

Define the following concepts.

a.

organisational inertia





b.

empowerment






2 marks

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© Julie Cain

Published August 2012

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Question 3

Identify
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 (EBA).










4 marks

Question 4

Organisa
tions
can use high
-
ris
k and low
-
risk practices as part of the change process. Define these
concepts, provide
one

example of each and evaluate the effectiveness of each practice.









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6 marks

Question 5

Explain Lewin’s ‘force
-
f
ield analysis’ theory. Identify and explain
one

possible driving force and
one

possible restraining force an organisation might face when introducing change.


















4 marks

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Question 6

Analyse and evaluate the role of leadership i
n the change management process.









2 marks

Question 7

‘All organisations must manage change to try to ensure
that the process is successful.’

Identify and
explain
four

stages of Kotter’s change management theory. Explain why it might be impor
tant for an
organisation to have developed a change management strategy.


















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10 marks

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Published August 2012

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Extra writing space if required. Clearly label the question.






























BUSINESS MANAGEMENT UNIT 4

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Published August 2012

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Part B
:
Case study analysis

Australia Post

Question 1

Explain the issue of technological development and how it has impacted on Australia Post.














3 marks

Question 2

Explain how the following

three

factors a
cted as pressures on Australia Post.

a.

The increased value of the Australia dollar.










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26

b.

Changes in social attitudes and lifestyle
.









c.

Access to technology, such as c
omputers,
the Internet and
e
-
commerce.









3
x 2 marks = 6

marks

Question 3

Identify
one

driving force and
one

restraining force faced by Australia Post.









2 marks

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© Julie Cain

Published August 2012

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Question 4

Describe the impact of technological development
on Australia Post’s internal environment.






















5 marks

BUSINESS MANAGEMENT UNIT 4

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© Julie Cain

Published August 2012

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Question 5

Australia Post has undergone organisational change. Evaluate the performance of the organisation in
relation to the changes introduced. You may use performance indicators (PIs) as part of your
evaluation.













4 marks

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Extra writing space if required. Clearly label the question.































BUSINESS MANAGEMENT UNIT 4

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Published August 2012

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Suggested answers and marking guide

Part D: Case study using Australia Post and its response to online
shoppin
g

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

Use of computers



Macro

Custom
ers and the
population in general are
using computers and email
more often
.

Fewer letters being
delivered;

impact on core
business operations.

Increased use of B
Pay has
impacted on the number of
bills people pay at the post
office.

Increased
participation

in
the workforce and

increased
hours of work


Macro

Many people are working
longer hours, unable to
access retail outlets as
often. More convenient to
shop online
.

Increased number of parcels
posted and Australia Post
has had to develop and
refine its log
istics.

The strong Australian dollar



Macro

The strong dollar has meant
that more people are
purchasing goods from
overseas.

Need to change delivery
modes;

have had to employ
more contractors to deliver
parcels.

TABLE 2: EVALUATION OF PERFORMANCE OF AU
STRALIA POST

Performance indicator

Explanation

Trends/results

Sales revenue

level of sales of postal and ot
her items in a
given period, e.g. one year

Revenue increased by 2.8 per cent in the years 2009

2010
to 2010

2011
.

Profit

the differen
ce between re
venue and expenses


2009

2010

pre
-
tax profit was $253.2m

compared with
$332.3m in 2010

201
1. Profit growth was up by 31.3 per
cent.

Staff satisfaction

a
survey indicating whether employees
are happy an
d motivated in their employment

The new EBA was overwh
elmingly voted for and Australia
Post has spent $20m on training employees to
improve

their
skill levels.

Customer satisfaction

96 per cent

of domestic letters were delivered on time.

Level of waste

31 per cent

of non
-
hazardous waste is recycled currentl
y.
The plan is to reach a target of 70 per cent

by 2016.


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TABLE 3: IMPACT OF TECHNOLOGICAL DEVELOPMENT ON AUSTRALIA POST

Internal environment

Impact

Operations





New systems have had to be put into place to cope with the extra demand for
parcel deli
very.

New logistics systems put into place
.

New extended opening hours for some outlets
.

New range of produ
cts introduced,
e
.g.
My Shop in a Box
,
Load and Go

cards
.

Marketing


Changes in the product range have led to increased marketing campaign
s to
impro
ve customer awareness,
e
.g. t
elevision advertisements for
Load and Go

cards.

Research and i
nnovation


New developm
ents using technology,
e
.
g. being able to track parcels between
Australia and the United States.

Finance



Australia Post has had to develop

new costing structures. Pres
ent binding world
agreements place a limit on

what they can charge for a parcel from overseas
that weighs less than 2kg. Costing Australia Post money,
they
need to look at
other products to boost profit.

Human r
esources

(HR)


More staff are needed, particularly at peak times such as Christmas. This has
led to the employment of more contractors. HR needs to source these
contractors and ensure that they have the skills required.

New training programs have to be introduced for sta
ff with the advent of
new
products. Some, for example
My Shop in a Box
,

require

specialised knowledge
to support customers and small businesses.

Corporate culture

Change management can be stressful for those involved. Australia Post has
introduced
new
pro
grams
to its health and w
ellbeing
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.
Australia Post has restructured its business units and branched into new areas
beyond the traditional postal services.


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TABLE 4: AUSTRALIA POST

CHANGES USING KOTTER’S THEORY OF CHANGE
MANAGEMENT

Stage

Explanation

Impact
/
example at Australia Post

1

Establish a sense of urgency



Inspire and communicate the need to
introduce changes.

Australia Post had to redesign some of
its core business with the decline in the
number of letters posted and the move
to parcel delivery.

2

Assemble a group of people




A group is needed to lead the
organisation through the changes.

Australia Post and its main committees
looked at the business and developed
a new business model based on units.
The senior managers and committees
led this ch
ange.

3

Create 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.

Australia Post had three elements in
its
strategic plan, r
estore a self
-
sustainin
g
letters business
; g
row the full
-
value
chain in parcels and develop

e
-
commerce
; and b
uild a trusted multi
-
channe
l
led services offer in retail and
digital
.

4

Communicate the vision





The vision needs to be made known to
all stakeholders and involve as
many
people as possible in the process.

Australia Post has modified its vision
statement and strategic plan to
incorporate the changes. These have
been communicated to government,
customers, suppliers and employees.

5

Empower others






To achieve the vi
sion and the change
,

any obstacles or blocks need to be
removed so that employees can make
the necessary changes.

A lot of money was invested into
training employees
,

and contractors
were sourced to allow the employees
to bring in the changes required by
s
enior management. Training provides
the skills to carry out the change.
These changes were clearly
communicated to those affected.

6

Plan

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.

Australia Post se
t specific targets in the
short
-
term so that they could measure
the success or otherwise of the
changes.

7

Consolidate all of the changes




At this stage
,

changes that have been
made hav
e to be ingrained into current
practice so that employees don’t slip
back into the old methods prior to the
change.

Australia Post has continued to
consolidate the changes and plans to
introduce more technology and
services
,

e
.g. parcel tracking and 24
-
hou
r access to parcel pick
-
up.

8

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.

Australia

Post 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.

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Published August 2012

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Assessment task

Part A:
Test

Question 1

Explain

the concept o
f change and provide an example of organisational change. (2 marks)

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 wher
e only one
part of the organisation is affected. An example of organisational change is when an organisation
restructures. It 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.

Marking guide: 1
mark for definition,
1

mark for example

Question 2

Define the following concepts.

a.

organisational inertia (1 mark)


Organisat
ional inertia can be defined as the lack of ability of an organisation to react to
pressures for change. If the organisation is inert then change is not likely to occur. A num
ber 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.

b.

empowerment (1 mark)


Empowerment 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.

Marking guide: 1 mark for each definition;

an example is not required b
ut might support the definition

Question 3

Identify
each

type of pre
ssure and
explain

how the pressure might cause change in an
organisation.

a.

The federal government introduces a carbon tax. (2 marks)


The introduction of a carbon

tax
is

a macro pressure as it is outside the control of organisation
s

and will impact on mo
st
,

if not all
,

businesses. A new tax by the government mean
s

that
costs
for
organisations

will increase. This
additional cost
will either be passed on to customers in the
form of higher prices or absorbed b
y 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.

b.

Trade unions are negotiating a new enterprise bargaining agreement (EBA). (2 marks)


If trade unions
are
negotiating a new enterprise bargaining

agreement (EBA)
,

this can be
classed as an operating pressure as it tends to i
nvolve

trade unions from a particular industry
or occupation. The negotiations can have an impact on the organisation. If the
EBA
negotiations are successful,
then the organisat
ion might have to make changes to work
practices or look at production methods to implement changes in working conditions or a pay
rise. If the negotiations are not successful
,

then the organisation might have to deal with strike
action or oth
er forms of i
ndustrial disputes,
which may cause the organisation to lose money.

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Marking guide:
for each pressure,
1 mark for identification of the pressure and 1 mark for a
description of how it might impact on the organisation.

Question 4

Organisations can use high
-
risk and low
-
risk practices as part of the change process. Define
these concepts, provide
one

example of each and evaluate the effectiveness of each practice.
(6 marks)

Low
-
risk practices are those based on a participative appro
ach to implementing change.

Low
-
risk
practices
include approaches based on two
-
way communication, empowerment of employees and
establishing wor
k teams. High
-
risk practices, on the other hand, encompass an auto
cratic approach to
change. High
-
risk practices can include intimidation, c
oercion and threats. Communication is likely to
be one way and the situation or information might be manipulated.

If an organisation
wants

to implement change

successfully it must adopt low
-
risk strategies as these
are more likely t
o 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 str
ategies might work in the
short
-
term but are unlikely to lead to real and sustained changes.

Marking guide: two

x
1 mark for
d
ef
initions of low
-
risk and high
-
risk strategies
; two

x
1 mark for an
example; two

x
1

mark for an evaluation of each type of practice.

Question 5

Explain Lewin’s ‘force
-
field a
nalysis’ theory. Identify and explain
one

possible driving force
and
one

possible
restraining force an organisation might face when introducing change.

(4 marks)

Lewin’s ‘f
orce field analysis’
is

a tool or theory that can be used to understand the effects and
problems associated with implementing change in an organisation. In any given

situation
,

there is a
point where forces and counter forces will either allow or block change. Driving 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 mot
ivate employees. Restraining forces are those that block or
prevent the change from happening. Restraining forces can include apathy, a negative corporate
culture and hostility towards management. If the driving forces are greater than the restraining forc
es
,

then the change will be successful. If the restraining forces are equal to or greater than the driving
forces then the change will be unsuccessful.

Marking guide: 1
mark ea
ch for a definition of driving and restraining forces (2 marks); 1 mark each
for

an example(
s
)

of a
driving and restraining force

(2 marks)

Question 6

Analyse and evaluate the role of leadership in the change management process. (2 marks)

L
eadership is vital in the change management process. Leaders need to be able to drive the change

and keep up the momentum. If there is not skilled and positive leadership at the top of the
organisation then the change is unlikely to occur. Leaders need to be posse
ss a number of skills
including:

being able to communicate their vision with e
mployees a
nd other stakeholders;

the ability

to
be proactive and also to adapt behaviours and other resources to stop any problems
;

and
the ability

to diagnose and analyse the process and then make changes as necessary.

Marking guide: 1
mark for

an

analysis and
1

ma
rk for an e
valuation of the skills needed

BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
35

Question 7

‘All organisations must manage change to try to ensure that the process is

successful.’
Identify and explain
four

stages of Kotter’s change management theory. Explain why it might
be important for an or
ganisation to have developed a change management strategy.

(10 marks)

Suggested plan:

Four of the
following stages are explained:


1

Establish a sense of urgency
.

2

Assemble a group of people
.

3

Create a vision for the organisation
.

4

Communicate the visi
on
.

5

Empower others
.

6

Plan to achieve short
-
term goals
.

7

Consolidate all of the changes
.

8

Institutionalise new approaches
.

Explanation of why it is important for an organisation to

develop a change strategy; for example:
c
ommunicate with stakeholders
;

ov
ercome resistance and hostility;

allow everyone to understand
what the change process entails.

Marking guide:
2 marks per stage of Kotter
identified and explained

(needs to be detailed for full
2
marks); 2
marks for
an explanation
of why a change strateg
y is important.

BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
36

Part B: Case study analysis

Australia Post

Question 1

Explain the issue of technological development and how it has impacted on Australia Post.

(3 marks)

Technological development can cause change in an organisation. Increased use of ICT
for business
operations a
nd 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 th
e 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.

Marking guide:

1

mark for a definition of technology

development as a change issue; an in
-
depth
explanation
o
f one impact or two or three in les
s detail (2 marks
)

Question 2

Explain how the following
three

factors acted as pressures on Australia Post.

a.

The increased value of the Australia dollar. (2 marks)


The increased value of the Australian dollar means tha
t 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.

b.

Changes in social attitudes
and lifestyle. (2 marks)


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. Longer working hours, reduced leisure
time and access to co
mputers and mobile phones

with I
nternet access has meant that people
are staying at home a
nd 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.

c.

Access to technology, suc
h as computers, the Internet and e
-
commerce. (2 marks)


Inc
reased access to technology, such as
computers,
the Internet and
e
-
commerce
,

for
customers and businesses
has

changed the way customers are reached. More people are
likely to use the website of a b
usiness before visiting the premises and businesses are starting
to provide
services for customers via the Internet and their web
site. Australia Post
offers
My
Shop in a Box

for small and medium
-
sized

businesses to take advantage of
the increased use
of te
chnology by customers.

Marking guide: three

x
1

mark for definit
ion/explanation of the pressure; three

x
1

mark for
an
explanation of the
link to Australia Post and the impact on it.

Question 3

Identify
one

driving force and
one

restraining force faced by
Australia Post. (2 marks)

One driving force

faced by Australia Post is the increased take up of

technology and the use of the
I
nternet for online shopping. This has meant that Australia Post has made changes to take advantage
of this
development
. One restr
aining force has been the rapid increase in the volume of parcels that
need to be delivered. Australia Post has had to employ contractors t
o cope with the extra demand, for
example
at Christmas time
,

and there have been issues with parcels not being delive
red in a timely
manner. It has been a restraining force
,

as Australia Post has not had the capacity and time to deal
with the unexpected demand.

BUSINESS MANAGEMENT UNIT 4

VCTA


© Julie Cain

Published August 2012

page
37

Marking guide: 1
mark for each force, must relate

each force

to Australia Post.

Question 4

Describe the
impact

of technological development
on Australia Post’s internal environment.

(5 marks)

Students need to discuss at least
two

changes
i
n some detail.

The impact of each change

could

include one or more of the following;



operations



human resources



marketing



fin
ance



structure



corporate culture



research and

development
.

Marking guide:
see
Table 3

on page 31 for more information; 1
mark for an overview of

the

impact of
the
change
; two

x
2

marks for a detailed
description of two changes (or three

or four in less det
ail).

Question 5

Australia Post has undergone organisational change. Evaluate the performance of the
organisation in relation to the changes introduced. You may use performance indicators (PIs)
as part of your evaluation. (4 marks)

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 2

kg and some increases in
revenue and profit due to the changes made at Austr
alia Post to take advantage of the

n
ew 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 indic
ators. Changes in the way people use the mail
system (a move away from letters to online shopping) has provided Australia Post
with
more
opportunities to expand and develop the postal services offered.

PIs include:



sale
s revenue

increased since 2009

2010



p
rofit

increased by 31.3 per cent in 2010

2011



customer satisfaction

surveys found t
hat 96 per cent

of letters were delivered on time



level of waste

recycling of non
-
hazardous waste is 31 per cent.

Marking guide: 2
marks for an evaluation of how Austra
lia P
ost has managed the change; 2
marks for
information about the
use of PIs to support the evaluation.