3.10.1 Flashcards
the value of change
Change can create a number of opportunities for businesses, such as creating new markets. Change is also
an opportunity for businesses to re-evaluate what they do in order to improve productivity, efficiency, quality and perhaps profitability.
why do stakeholders see change as a threat
If businesses do not foresee some changes, or manage change poorly, this can result in business failure.
internal or external change
change driven by internal factors, such as management and strategic direction, or change driven by external forces, such as economic conditions
what is rapid and unexpected change
in response to a disaster
what is long-term change
steady, planned, and gradual
what is incremental change
broken down into steps, gradual improvements over time
what is disruptive change
adapting to external forces that change the nature of the industry
what is Lewin’s force field analysis
determines forces driving change vs those resisting change
change is deemed necessary but won’t happen if the resisting forces are greater than the driving forces
managers can use Lewin’s force field analysis to identify
resistance and develop strategies to remove them
can be internal or external
examples of forces for change
high number of customer complaints
productivity falling
significant investment in new technology by a leading competitor
examples of forces resisting change
lack of funding
limited understanding or appreciation that change is needed
no strategic direction to drive the change
rigid organisations
find it more difficult to adapt to changing environment or the internal pressures for change
the more agile a business is
the faster and easier it will be able to manage the change process
approaches businesses can add to be more flexible
restructuring
Delayering - remove unnecessary levels of hierarchy.
Flexible contracts and flexible teams (matrix structures).
organic structures -
organisational structure where teams evolve depending on the needs of the task. Teams based around projects not functions.
Information and knowledge management - through technology, vast amounts of information are available to managers.
reasons for resistance to change
self-interest
low tolerance for change and inertia
different assessment of situation
misinformation and misunderstanding
self interest
Individuals may lose out in terms of pay, status or anticipating harder work.
low tolerance for change and inertia
Some employees may be very comfortable with the current situation. Change will take them outside their comfort zone.
different assessment of situation
Some employees may simply disagree and believe that change is not necessary or that a different approach would be more successful.
misunderstanding and misinformation
Employees may not see the need for change or may not understand what the change process will involve
- fear of uncertainty.
change includes what
- new technology
- new ways of working
- new products
- new structures
- new processes and regulations
- new members of staff (leadership).
approaches used to overcome resistance to change
education and communication
facilitate and support
participation and involvement
manipulation and co-option
negotiation and bargaining
explicit/implicit coercion
education and communication
Clearly share the reasons and logic behind the change and provide necessary training in new approaches.
facilitate and support
Give employees what they need to accomplish the change along with encouragement and support.
participation and involvement
Involve employees in the decision making so that they have ownership of the change.
manipulation and co-option
Involve and influence key people. Get individuals with influence on board and use them to drive the change.
negotiation and bargaining
Compromise may involve employees receiving higher wages or better working conditions.
explicit/implicit coercion
Force change through using authority.
Threats may be involved - openly or applied. Long-term success may be more important than short-term agreement.
managing information and knowledge
Businesses have far greater access to information than they have ever had before, through technology such as store/loyalty cards, social media and data mining. The effective use of this information can give a business an insight into likely changes ahead. If businesses use this information wisely they are better placed to foresee and manage change within the organisation. expertise, managed and shared and retained in the business, for example, the experience of managers who have successfully gone through significant
