3.6 Flashcards
internal causes of change in bus
-the intro of new tech
-a change in management structure or leadership style
-change in size of bus through organic growth or external growth
-response to poor performance
external causes of change in bus
-development in tech
-market changes (comp, new markets, globalisation)
-change in consumer tastes
-new legislation
-changes in workforce
-changes in economy
changes in organisational size
This happens as a bus expands
Issues the bus faces:
-maintaining the company culture
-motivating staff during the expansion
-increasing labour costs with hiring of new staff
-training new staff
poor business performance
As a result of poor sales, low profits or slow expansion
Issues:
-the bus will need new objectives and a new direction
the bus will need new strategies to complete (ansoffs)
-the bus will need to look at what is necessary to improve performance this may mean delaying or redundancies
new ownership
if the bus has been bought or merged with another bus or their has been management buyout
Issues:
-there may be significant role duplication so there may be redundancies
-may clash of culture
-may be issues of communications between the 2 business as they change or merger
transformational leadership
New is brought into the organisation that seeks to change it
Issues:
-the bus will need to reinvest itself to achieve comp ad
-a new bus culture which challenges managers to develop new ways of thinking
-the bus encourages the development of new ideas
external factors
may happen if there have been new entrants to the marker (porters 5 forces) or due to EU expansion or changes in market (e.g. energy deregulation)
Issues:
-the bus may need to reposed by increasing their research and development budget to introduce more innovative products to their portfolio
-may need to change compare objectives
3 factors that influence how successful change can be
-size of the organisation
-the time and sped of the change
-the resistance to change
the size of the organisation
The larger the bus the more difficult significant change can be:
-changes may not be flexible or efficient
-the communication process can be deelay cha ge
-‘global’ approach
-change in ownership as bus grows (ltd, plc, multinational)
-large organisations are less flexible to change
-adaptations to structure becoming more decentralised so local decisions can be made which addresses local needs
-larger bus are less responsive and take longer to change due to longer chain of command
the time/speed of the change
-Bus operate in dynamic markets and must deal with change
-change can keep bus fresh and moving froward
-short term can mean crisis e.g. stress, conflict, demotivation
-bus need to adapt to internal (e.g. merger) and external (e.,g. interest rates) changes
-change needs to be proactive nor reactive
-rapid change may have to take place due to market conditions
-organic change may be most accepted
-slow change may hinder competitiveness and cost the bus
-position of the bus can determine the speed of change
the resistance to change
-self interest
-habit
-misunderstanding
-low tolerance to change
-different assessments of the situation
-economic implications
-fear of unknown
strategies bus can take to reduce resistance
-explain need for change
-provide info
-offer support or training
-involve staff in process
-build trust and job security
-build employee relations
-action planning
-appointing change agents
-negotiate
-cross functional teams
what is scenario planning
scenario planning is looking ahead and thinking about what might happen and start planning for what you do if a particular scenario happens
what does scenario planning include
-contingency plan
-comparing probability’s with potential financial impacts (decision trees)
-risk assessment
why use scenario planning
-clarifying future uncertainty in bus
-identifying risks and opportunities
-preparing for eventualities
-teaching managers how event transpire, develop, and affect the bus
-understanding the causes and effects of change
-identifying and analysing how to manage the change
