organisation management

Assessment 1 Part A – Cost-Benefit Analysis

Instructions

Analysis for a change project that is being considered reveals that it will cost
$70,000 to establish (in year 0), and that the recurring costs for the next 3
years will be $25,000 (in years 1, 2 & 3). There will be no benefits in year 0, but
there will be $96,000 worth of benefits each year in years 1 through to 3. Using
the formula above, calculate the payback period and the ROI. What is your
recommendation?

Years	Bene ts	Costs
0
1
2
3
TOTAL BENEFITS
TOTAL COSTS

The payback period is _______________________________________ years.
The Return on Investment (ROI) is __________________________%.
Would you recommend it as a good investment? Justify your answer.

Total part A: 10 marks

ADDENDUM | © 2018 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE
BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT | ORGANISATION MANAGEMENT_V2.3

Assessment 1 Part C – Case Study

Scenario

Change at Asia/Pacific Manufacturing (APM)

19

Assessment 1 Part B – Risk Analysis

You are the HR director at a large Australian bank with a bureaucratic
authoritarian culture and a highly unionised workforce. In response to
competitive pressures, the bank aims to become the fastest growing, most
profitable bank in Australia.

They are also looking at expanding their operations in Asia as part of their
growth strategy. You realised that in order to bring the company to reach new
heights, the bank needs to make changes to their organisational culture.

1. How are you going to introduce cultural change in the entire organisation?
   (5 marks)
   
2. What are the risks of introducing a cultural change in a bureaucratic
   authoritarian culture and a highly unionised workforce? For example, if the
   change will require retrenchment, what are the risks involve? What are the
   barriers to change? (5 marks)
   
3. Perform a risk assessment for all the risks you identify including your
   recommended mitigation strategies. Use risk analysis forms similar to the
   one you used in Session 4. (10 marks)
   

The atmosphere in the boardroom was intense. Mon Ey, the nancial director for
APM just concluded his presentation on the current situation of the Australian
manufacturing division of APM. The following conclusions were made based on the
presentation:

• ƒ APM Australian factories not competitive
  
• ƒ Benchmarked against international best practice, production costs of the Australian
  
  manufacturing operations are the highest in the world
  
• ƒ The Australian factories have low productivity and high labour costs
  
• ƒ Must cut losses and expand elsewhere OR make the Australian operations more
  competitive
  
• ƒ At risks of being taken over by another major competitor. If this materialises, all
  Australian operations will be sold o and moved overseas
  
• ƒ Share price dropped 20 percent from the past six months
  
  In view of the current problems of APM, they decided to hire the services of STegic, a
  strategic consultancy rm to make sense of the problem and possibly come up with a
  recommendation as to the best possible course of action.
  
  The study conducted by STegic reveals the following issues:
  

• ƒ If the Australian factories could achieve 90 percent of best practice gures for
  productivity and labour costs, the Australian operations would be among the most
  pro table in the company
  
• ƒ Machines are ok, problem are people performance
  
  ADDENDUM | © 2018 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE
  BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT | ORGANISATION MANAGEMENT_V2.3

Part B total: 20 marks

20

• ƒ Low production gures caused by lack of labour exibility
  
• ƒ Excessive penalty rates makes it uneconomical to operate factories seven days a week
  
• ƒ Workers are not motivated, thus absenteeism is high
  
• ƒ Constant ght with unions over demarcation, workers show more loyalty to unions
  than to the company
  
• ƒ Safety record of the Australian operations are worst in the company
  
• ƒ Pay and conditions of employment are among the best in the world
  
• ƒ Labour turnover is low
  
• ƒ No clearly articulated HR strategy that is linked to the strategic business objectives
  
• ƒ The Industrial Union of Manufacturing Workers (IUMW) is strong and dictates a
  lot of terms, for example: promotes the “last on, rst o ” policy, rewards based on
  seniority not on merit, everyone gets an across-the-board salary irrespective on their
  performance and the company’s pro tability
  
  After reading the case study:

1. Identify change requirements/opportunities at APM (5 marks)
   
2. Develop strategic objectives in the areas of recruitment and selection,
   training and development, and remuneration and benefits (10 marks)
   
3. Identify the major stakeholder’s concern and potential problems that might
   hinder the implementation of your new change strategy. Suggest possible
   ways to overcome these challenges (10 marks)
   
4. Develop a change management project plan for the implementation of
   your proposed change management strategy. Your plan should include the
   following elements:

f Budget
f Resources (people, equipment, and material needed)
f methodology for change program
f objectives/outcomes
f Timetable

(5 marks)
(5 marks)
(5 marks)
(5 marks)
(5 marks)

5. Develop communication/education plan to promote the benefits of the
change to the organisation, to minimise loss and to enable people to accept
change positively, then prepare a report (10 marks)

Part C total: 60 marks
Assessment 1 total: 90 marks

Assessment 2 Part A – Written or Oral Questions

1. How can you encourage participation through your leadership? (6 marks)
   
2. Give an example of a time you have used your communication and
   interpersonal skills to persuade others? (6 marks)
   
3. What are some of the ways to create an innovative organisational culture?