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Business Theme 3 > 3.6 > Flashcards

3.6 Flashcards

1
Q

What is change management?

A

Involves the process that ensures a business responds to the environment in which it operates

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2
Q

What is step change?

A

Significant and occurs rapidly

  • dramatic or radical change
  • required when a business has suffered from strategic drift
  • gets it over with quickly/ decisively
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3
Q

What is incremental change?

A

Many small and frequent change

- many small changes which take place as a business develops and responds to subtle changes in external environment

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4
Q

What is disruptive change?

A

From of step change that arises from changes in the external environment which impact the market as a whole

  • impacts the market as a whole, challenging the established “business model”
  • rapid improvements in technology are the main driver of disruptive change- new ways of delivering goods and services as well as reducing barriers to entry
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5
Q

Internal change vs external change

A

Internal- within the control of business

External- outside of the control of the business but which still need to be addressed

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6
Q

Internal causes of change examples

A
  • new leadership
  • change in strategic direction and corporate objectives
  • significant investment decisions
  • changes to scope of business activities
  • adjusting the organisational structure
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7
Q

External causes of change examples

A
  • significant competitor actions (e.g new products, takeovers)
  • political and legal changes
  • significant changes in economic environment
  • changes in society
  • technological change
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8
Q

Benefits of effective change

A
  • may help sustain competitive advantage (respond to competitor changes)
  • aligns business strategy with evolving nature of customer needs and wants
  • change in organisational structure improves communication and decision making
  • stakeholders gain from improved productivity and work environment
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9
Q

Why organisational change needs to change:

A

Help improve business performance

  • declining profits and sales
  • inadequate returns on investment
  • low quality customer service

Make the business more responsive to external change

  • market changes
  • change of ownership
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10
Q

Symptoms that an organisational structure needs to change

A
  • internal fighting
  • high levels of staff turnover
  • absenteeism rising
  • innovation is no longer valued
  • declining customer service and
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11
Q

4 reasons why change is resisted

A

Self interest
Different assessment of the situation
Low tolerance for change and inertia
Misinformation of misunderstanding

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12
Q

Resisting change: self interest

A
  • powerful motivator

- arises from a perceived threat to job security, status and financial position

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13
Q

Resisting change: misinformation and misunderstanding

A
  • people don’t understand why change is needed- misinformed about real strategic position
  • perception may be widespread that there is no compelling reason for chance
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14
Q

Resisting change: different assessment of the situation

A
  • disagreement about the need for change or what that change needs to be
  • some people may disagree with the change proposed
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15
Q

Resisting change: low tolerance and inertia

A
  • many people suffer from inertia or reluctance to change, preferring things to stay “they way they are”
  • many people need security, predictability and stability in their work
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16
Q

Approaches to overcoming change

A 
Education and communication 
Participation and involvement 
Facilitating and support 
Manipulation and co option
Negotiating and bargaining 
Explicit and implicit coercion
17
Q

Overcoming change: education and communication

A
  • communicate effectively the reasons why change is needed
  • honest communication about the issues ( see logic of change)
  • education- address misconceptions about the change
18
Q

Overcoming change: participation and involvement

A
  • effective way of bringing “on board” people who would otherwise resist
  • participation leads to commitment
19
Q

Overcoming change: facilitation and support

A
  • need support to help cope with change

- includes additional training, counselling and mentoring

20
Q

Overcoming change: co option and manipulation

A
  • C: involves bringing specific individuals into roles that are part of change management
  • M: involves the selective use of info to encourage people to behave in a particular way
21
Q

Overcoming change: negotiation and bargaining

A
  • idea here is to give people who resist an incentive to change
  • involve offering better financial rewards for those who accept the requirements of the change programme
22
Q

Overcoming change: explicit and implicit coercion

A
  • E: involves people been told exactly what the implications of resisting change will be
  • I: involves suggesting the likely negative consequences for the business of failing to change, without making explicit threats
23
Q

What is scenario planning?

A

Process of preparing for predictable and quantifiable problems and preparing for unexpected and unwelcome events

24
Q

What is succession planning?

A

Planning for the orderly replacement of key management and employees

25
Q

What does scenario planning involve?

A
  • preparing for predictable and quantifiable problems

- preparing for unexpected and unwelcome events

26
Q

Aim of scenario planning

A

Minimise the impact of a significant foreseeable event and to plan for how the business will resume normal operations after the event

27
Q

Difference between

  • risk management
  • scenario planning
  • crisis management
A

R: identifying and dealing with ricks threatening a business
S: planning for unforeseen events
C: handling potentially dangerous events for a business

28
Q

What can risk be in a business?

A
  • possibility of loss or business damage
  • a threat may prevent the ability to achieve business objectives
  • change a holes-for outcome will not occur
29
Q

How to respond to risk?

A
  • ignore it (wait and see)
  • share/deflect the risk
  • make scenario plans
  • embrace risk as an opportunity
30
Q

Process of scenario planning

A
  • identifying what and how things can and might go wrong
  • understanding the potential effects if things go wrong
  • devising plans to cope with the threats
  • putting in place strategies to deal with the risks before they happen

Business Theme 3 (7 decks)

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