3.6 Flashcards
Define change management
The process that ensures a business responds to the environment in which it operates
Internal causes of change
-Change in size of business
-Poor performance
-New ownership
-Restructuring
External causes of change
-Changes in the market
-Social change
-Political/Legal change
-Technological change
-Environmental change
Effects of change on competitivness
-Changer as a result of internal factors can be rapid and improve perofrmance
-Change as result of external factors likely to be gradual and involve selecting a long term competitive strategy
-Change has overall positive effect on competivness
Effects of change on producitivty
-In short term while change is implemented productivty likely to reduce
-During external change productivity msy be lower and mist take steps to manage capacity utlisation & costs
What are some effects of embracing change?
-Helps sustain a competitive advantage
-Take advantage of developing technologies
-Improved communication and decision making
-Improved productivity and work environment
Why might employees be resisitant to change?
-Worry change my effect job security or work environment
-May not understand why change is needed
-Reluctant to learn new skills, used to doing things a certain way
Why might owners be resistant to change?
-Fear disruption to productivity
-Reluctant if it involes personal, financial or time commitment
-Not understand benefit and lack expertise to implement change
Why might customers be resitant to change?
-Hesistant to try something new
-Don’t want to make effort to change, used to accessing products in a certain way
Why might suppliers be resiistant to change?
-Reluctant to change processes or systems
-Change may lead to decrease in quality or additional costs
-May lack reources, knowledge and skills to implement new systems and processes.
Ways of overcoming resistance to change?
-Take into account concerns of stakeholders
-Clear communication
-Involve stakeholder in process
-Provide training and support
Define risk management
Identifying and dealing with risk
Scenario planning
Planning for unseen events
Define crisis management
Hadling potentially dangerous events
Different ways of dealing with risk?
-Make scenario plans
-Mitigate risk
-Succession planning
