3.6 Managing Change

Question 1

What are four internal causes of change?

Answer 1

Changes in organisational size.
Poor business performance.
New ownership.
Transformational leadership.

Question 2

What are six external causes of change?

Answer 2

Market changes.
Political change.
Economic change.
Social change.
Technological change.
Environmental change.

Question 3

What are three reasons to change?

Answer 3

Move or keep ahead of competitors.
Customer tastes.
Avoid getting stuck in old ways.

Question 4

What are two reasons not to change?

Answer 4

Traditions and culture of a business can be invaluable.
Some markets change very little.

Question 5

What are the four areas that are affected by change?

Answer 5

Competitiveness
Productivity
Financial performance
Stakeholders

Question 6

What are the four reasons why successful business change is hard to achieve?

Answer 6

What motivates leaders does not motivate most staff.
Leaders can believe they themselves are the change.
Money is the most expensive way to motivate people.
The change process and outcome of the change is not seen as fair.

Question 7

What are the four key factors in change?

Answer 7

Organisational culture.
Size of organisation.
Time/speed of change.
Managing resistance to change.

Question 8

What are five areas that might require scenario planning?

Answer 8

Natural disasters.
IT failures.
Losing staff.
Continuity plans.
Succession plans.

Question 9

What are the two steps involved in scenario planning?

Answer 9

Identifying risks through risk assessment.
Planning for risk mitigation.

Question 10

What are two limitations risk assessments?

Answer 10

Cannot be used to identify all possible risks and risk cannot be eliminated entirely.
The process of identifying risks and continually updating risk assessments can be time consuming, complex and expensive.