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