3.6 Managing change Flashcards
What are the causes of change in an organization?
- Changes in organisational size
- Poor Business Performance
- New Ownership
- The Market and other external factors (PESTLE)
Each cause has associated issues that businesses may face during the change process.
What issues may arise from changes in organisational size?
- Maintaining company culture
- Motivating staff during the expansion
- Increased labour costs from hiring new staff
- Training new staff
International expansion often leads to these challenges.
What issues may arise from poor business performance?
- Need new objectives and new direction
- Need new strategies to compete
- Need to look at necessary improvements, such as delayering and redundancies
Poor sales, low profit, and slow expansion can trigger these needs.
What issues may arise from new ownership due to mergers or acquisitions?
- Duplicate staff leading to redundancies
- Clash of cultures
- Communication issues between merging businesses
Mergers and acquisitions often complicate organizational dynamics.
What external factors may necessitate organizational change?
- New market entrants
- Changes in market
These factors may require a business to adjust its corporate objectives and R&D budget.
How does organizational change affect competitiveness?
- Benchmarking with similar businesses
- Investing in research and development
- Investigating new and emerging markets
Staying competitive requires proactive strategies in response to change.
How does organizational change affect productivity?
- Investing in new equipment/machinery
- Changing production methods
- Changing quality management methods
Productivity can be enhanced through strategic investments and adjustments.
How does organizational change affect financial performance?
- Budgeting for increased staff/capacity
- Organizational restructuring
- Investment in product development and market research
Financial performance often reflects the costs and benefits of change.
How can stakeholders be affected by organizational change?
- Customers may feel unsure or delighted
- Managers may worry or see opportunities
- Shareholders may be reluctant to invest
- Suppliers may negotiate better contract terms
Stakeholders’ perceptions and responses can significantly influence the change process.
What is organizational culture?
Describes prevailing attitudes and values in a business
It can facilitate or hinder change based on its strength and adaptability.
How does the size of an organization impact change?
- Larger businesses have more resources
- Larger businesses may face communication problems
The scale of an organization can affect its capacity to implement change effectively.
What are the consequences of not changing quickly enough?
- Missed opportunities
- Lack of adaptability and innovation
Timeliness is crucial for capitalizing on market conditions.
What can happen if an organization changes too quickly?
- Resistance from overwhelmed workers
- Poorly executed changes
- Lack of planning
Rapid changes require careful management to avoid negative outcomes.
Who may resist change within an organization?
- Customers
- Employees
- Owners
- Suppliers
Each group may have unique concerns about the impacts of change.
What are some strategies for managing resistance to change?
- Clear communication
- Involving stakeholders
- Providing training and support
- Addressing stakeholder concerns
- Setting realistic expectations
- Celebrating successes/milestones
Effective change management often hinges on stakeholder engagement.
What is scenario planning?
Process of anticipating possible changes and devising ways to deal with them.
It is also known as contingency planning.
What are some key risks identified in risk assessments?
- Natural Disasters
- IT Systems failure
- Loss of Key Staff
Each risk can have significant implications for business operations.
What does risk mitigation involve?
Identifying, assessing, prioritizing, and planning responses to risks.
A proactive approach is essential for effective risk management.
What are the common stages included in Business Continuity Plans?
- Risk assessment
- Impact analysis
- Strategy development
- Plan development
- Testing and training
- Maintenance and review
These stages ensure a business can recover from serious incidents.
What is succession planning?
Identifying and developing current employees for future key roles.
This ensures the long-term viability of the business.
