3.10.1 - Managing Change Flashcards
external change
change that happens outside of the business e.g political disputes, economic downturns etc.
internal change
change that happens within a business e.g. disruption to supplies
incremental change
change that happens step by step within a business e.g. gradual improvements to processes over time
disruptive change
significant game changing developments in an industry e.g. use of technology to book taxis (uber)
restructuring
reorganising the organisational structure of a business
delayering
when a business removes a level of a hierarchy from the organisation
mechanic structures
they are formal and have clear levels of hierarchy. there are many levels of hierarchy and tight control over employees
organic structures
they are more informal and tend to have fluid teams that are created for specific projects.
Lewin’s force field analysis
it highlights that at any moment there are forces for and against change
Lewin’s force field analysis
(driving forces)
positive forces for change
Lewin’s force field analysis
(restraining forces)
obstacles to change
Lewin’s force field analysis
(what do driving forces include)
- the need to keep up with competitors
- an increasing number of customer complaints
- new owners wanting higher returns
- poor performance
Lewin’s force field analysis
(what do restraining forces include)
- a lack of finance / investment
- a reluctance on behalf of existing staff to change the way they do things
- resistance from certain stakeholder groups that might be worse off following change
for change to actually occur, the balance of these forces must alter:
- the drivers for change may get stronger
- the forces resisting change may be reduced
risks of change
- staff resistance
- unpredictable
- lose core values / ethics
- damage brand reputation
- customers not happy
- managerial restraints
- loss of market position
- failure
rewards of change
- USP
- increased innovation
- don’t fall behind competitors
- increase market share
- first mover advantage
- employee engagement
- shareholder dividends increase
- improve brand image
- increase employee motivation
- improvement for the better
2 benefits of delayering
- help reduce costs
- help improve communication
2 drawbacks of delayering
- increasing responsibilities
- negative impact on employee motivation
examples of internal changes
- investment in new technology
- offshoring production
- new CEO is recruited
- restructuring the hierarchy
examples of external changes
- new competitor enters the market
- increase in online shopping
- change in legislation
- rise in interest rates
barriers to change - Kotter and Schlesinger’s 4 reasons for resistance to change
- self interest - care about themselves and their jobs so they will resist change
- misunderstanding and fear - if they don’t understand why it is happening, they will resist change
- different views - employees may disagree with the change that is being recommended so they will resist change
- prefers the status quo - they do not like change, they prefer things the way they are
how to overcome barriers to change - Kotter and Schlesinger’s 6 ways to overcoming resistance to change
- education and communication
- participation and involvement
- facilitation and support
- negotiation and agreement
- manipulation and co-option
- explicit and implicit coercion
