10.1 Managing change Flashcards

1
Q

What should managers and leaders constantly monitor for pressures to change

A

Internal and external environment

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2
Q

What should managers and leaders also consider when considering pressures for change

A

Employee resistance to change, known as forces resisting change

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3
Q

What is Lewin’s force field analysis

A

Supports managers and leaders in comparing pressures or forces for change against the forces resisting this change

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4
Q

What is chain management

A

The process that ensures a business responds to the environment in which it operates

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5
Q

What is radical change

A

(Step one)
- dramatic or radical change in one fell swoop
- often involves significant alteration in the business
- gets it over quickly / decisively
- may require some coercion to overcome resistance

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6
Q

What is incremental change

A
  • usually involves little resistance
  • many small changes which take place as a business develops and responds to subtle changes in the external environment
  • arises as strategy develops
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7
Q

What is disruptive change

A
  • A form of step change arising from changes in the external environment
  • impacts the market as a whole, challenging the established “business model” (how products / services are sold)
  • rapid improvements in technology are the main driver of this change since technological innovation provides new ways of delivering goods and services as well as reducing barriers to entry
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8
Q

Industries that suffered disruptive change due to technology change

A
  • media streaming (Spotify, Netflix, YouTube)
  • grocery retailing (Morrisons, Asda, Amazon)
  • travel & accommodation ( Airbnb, Trivago)
  • fashion retail (Asos, Boohoo, Missguided)
  • consumer file storage (Dropbox, iCloud, OneDrive)
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9
Q

Internal causes of change

A
  • new leadership
  • change in strategic direction & corporate objectives
  • significant investment decisions
  • changes to scope of business activities
  • adjusting the organisational structure (e.g delayering)
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10
Q

External causes of change

A
  • competition (e.g new products, takeovers)
  • political & legal changes (e.g deregulation or takeovers)
  • changes in economic environment (post Brexit for UK firms)
  • longer-term changes in society (e.g lifestyles, demographics)
  • technological change (e.g rapid growth or mobile device usage)
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11
Q

The value of change

A
  • whilst change is often viewed with concern by those affected, it is an essential part of the business life
  • the external environment is constantly changing, which makes change a constant too
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12
Q

Benefits of change

A
  • helps sustain a competitive advantage
  • aligns business strategy with evolving nature of customer needs & wants
  • can take advantage of developing technologies
  • stakeholders gain from improved productivity and work environment
  • enables a business to improve the effectiveness of its communication and decision-making
  • being perceived as a business that leads change rather than follows it may bring market benefits
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13
Q

What are the 4 Kotter and Schlesinger’s reasons for resisting change

A
  • self-interest
  • different assessment of the situation
  • low tolerance for change & inertia
  • misinformation & misunderstanding
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14
Q

What are the 6 Kotter and Schlesinger’s overcoming barriers to change

A
  • education & communication
  • participation & involvement
  • facilitation & support
  • manipulation & co-option
  • negotiation & bargaining
  • explicit & implicit coercion
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15
Q

Why is self-interest a reason for resisting change

A
  • powerful motivator
  • arises from perceived threat to job security, status and financial position
  • understandable -why would you want to lose something you believe to be valuable
  • individuals often place their own interests ahead of those of their organisation, particularly if they don’t feel a strong loyalty to it
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16
Q

Why is misinformation and misunderstanding a reason for resisting change

A
  • people don’t understand why change is needed, perhaps because they are motivated about the real strategic position of the business
  • perception may be widespread that there is no compelling reason for change
  • perhaps even an element of people fooling themselves that things are better than they really are
17
Q

Why is different assessment of the situation a reason for resisting change

A
  • there is disagreement about the need for change or what the change needs to be
  • some people may simply disagree with the change proposed, or they may feel they have a better solution
  • this is different from “self-interest” the resistance here is based on disagreement about what is best for the business
18
Q

Why is low tolerance & inertia a reason for resisting change

A
  • many people suffer from inertia or reluctance to change, preferring things things to stay “the way they are”
  • many people need security, predictability & stability in their work
  • if there is low tolerance of change (perhaps arising from past experience) then resistance to change ay grow
19
Q

Why is education & communication a way of overcoming resistance to change

A
  • the starting point for successful change is to communicate effectively the reasons why change is needed
  • honest communication about the issues and the proposed action helps people see the logic of change
  • effective education helps address misinformation or inaccuracies
  • education and communications are unlikely to achieve very short term effect. They need to be delivered consistently and over a long-period for maximum impact
20
Q

Why is participation & involvement a way of overcoming resistance to change

A
  • involvement in a change programme can be an effective way of bringing “on-board” people who would otherwise resist
  • participation often leads to commitment, not just compliance
  • a common issue in any change programme is just how much involvement should be permitted. Delays and obstac.es need to be avoided
21
Q

Why is facilitation & support a way of overcoming resistance to change

A
  • K&S identified what they called “adjustment problems” during change programmes
  • most people (though not all) will ned support to help them cope with change
  • key elements of facilitation and support might include additional training, counselling and mentoring as well as simply listening to the concerns of people affected
  • if fear and anxiety is at the heart of the resistance to change then facilitation and support become particularly important
22
Q

Why is manipulation & co-option a way of overcoming resistance to change

A
  • co-option involves bringing specific individuals into roles that are part of change management (perhaps managers who are likely to be otherwise resistant to change)
  • manipulation involves the selective use of information to encourage people to behave in a particular way
  • whilst the use of manipulation might be seen unethical, it might be the only option if the other methods of overcoming resistance to change prove ineffective
23
Q

Why is negotiation & bargaining a way of overcoming resistance to change

A
  • the idea is to give people who resist an incentive to change - or leave
  • the negotiation and bargaining might involve offering better financial rewards for those who accept the requirements of the change programme
  • enhanced rewards for leaving might also be offered
  • commonly used when there is need to restructure (delayering)
24
Q

Why is explicit & implicit coercion a way of overcoming resistance to change

A
  • the “last resort” if other methods fail
  • people being told exactly what the implication of resisting change will be
  • implicit coercion involves suggesting the likely negative consequences for the business of failing to change, without making explicit threats
  • the big issue with coercion is it almost damages trust between people in a business and can lead to damaged morale (in the short term)