3.6 managing change Flashcards
what are internal causes of change ?
a change in business size
poor performance
new ownership
restructuring
what are external causes of change ?
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what are the effects of change on competitiveness ?
- swift improvements
- pursue a long term competitive strategy
- brings management and employees together
What are the effects of change on productivity?
- reduced as employees need to get used to new processes
- once embedded productivity returns to earlier levels
What are the effects of change on financial performance?
- expensive
- market research
- promotional activity needed
- new strategies needed
What are the effects of change on stakeholders?
- customers may be dissapointed if businesses cant meet demand
- employees may be made redundant
What 4 factors affect business change ?
Organisational culture
Organisation size
Pace of change
Resistance to change
How does organisational culture affect the business?
- employees may be hesistant
- could affect communication
- strong culture can support employee engagement
- affect adaptability
how does the size of the organisation affect change ?
- larger organisations make it harder to make decisions
- more people involved so more delays
- larger businesses will have more resources
how does pace of change affect a businesses?
too fast :
- create resistance
- not properly thought through
- difficult to communicate
too slow :
- lack of adaptability
- delays
- disengagement and disinterest
why are employees resistant to change ?
- job security
- may not understand
- reluctant to learn new ways
why are owners resistant to change ?
- could affect productivity
- personal time and commitment
- mat not have expertise to implement
why are customers resistant to change ?
- uncomfortable or unfamiliar
- fear losing something they value
- used to old products so will not want to buy
why are suppliers resistant to change ?
decrease in quality
additional costs
lack of expertise to implement
how can you manage resistance to change ?
- communication
- involve stakeholders
- provide training and support
- address concerns
- realistic expectations
What is scenario planning?
process of anticipating possible changes in a business’s situation and devising ways of dealing with them
what hazards are commonly covered by business risk assessments?
natural disasters
it systems failure
loss of key staff
what is risk mitigation?
this is where you identify and assess risks then prioritise and plan responses
what is a business continuity plan?
how a business will operate following a serious incident or disaster and how it expects to return to normal as soon as possible
what are the stages in a business continuity plan?
- risk assessment - identify risks
- impact analysis - assessment impacts
- develop strategy - approaches to be taken
- plan development - outline steps
- testing and training - ensures plan is effective
- maintain and review - regular review and updating
what is succession planning?
Succession planning involves identifying and developing current employees who have the potential to move into key roles in the future
what are the stages of succession planning?
identify successors
develop a plan
train and mentor
communicate with stakeholders
review and update the plan
