3.6.2 Key Factors In Change Flashcards
What is change management?
Change management means planning and implementation of change in a way that is mindful of those who will be affected by the changes.
-Changes must be realistic, achievable measurable (RAM).
What are the two types of change?
1.) Planned change
2.) Emergent change
1.) Planned change; What is it?
-Refers to change which is planned by the top management of a business.
-This could be: Directors, Owners + Senior leadership team.
2.) Emergent change; What is it?
-Change that happens at any level in the organisation + is the result of an event or need.
-E.g. Computer back-up system has failed so a new IT system must be installed which will require training for all staff.
Key factor in change; organisational culture
-People are social beings who will adhere to cultural norms + values.
-Successful change is based on redefining those existing norms and values and getting commitment from workers towards new ones.
Key factor in change; Size of organisation
-As a business grows there will be inevitable changes within the organisation.
-For example, as a business grows from ltd to plc so they can raise more finance by floating shares on the stock market = huge changes.
Key factor in change; Time/speed of change
-One of the main problems with change is to align expectations with reality.
-Changes that happen too quickly = employee stress.
Change - continuous improvement
-A business may decide to become a kaizen organisation (continuous improvement)
-This will mean small incremental improvements.
-The management also need a commitment to kaizen + use quality data to make decisions.
DR Kotter’s 8 steps to effective change + management
1.) Create
2.) Build
3.) Form
4.) Enlist
5.) Enable
6.) Generate
7.) Sustain
8.) Institute
Change; Cadbury
-Businesses operate in dynamic markets + must deal with change.
-Some change is good for a business, keeps it fresh + moving forward, e.g. Cadbury no longer produces cocoa essence but has developed new + delicious alternatives.
-A business will need to adapt to internal changes.
What is resistance to change?
Behaviour which is intended to protect an individual from the affects real or imagined of change.
Resistance to change: employee perspective
-Resistance by employees may just be a defence mechanism caused by frustration + anxiety about changes.
-Many employees fear that they will be unable to acquire the new skills that will be required after the change.
Managing resistance to change
-Resistance to change in a business is to be expected.
-Resistance can be managed by working with employees, listening to concerns + trying to understand them.
-Employees worry about; loss of status or power as a result of the change, fear of personal failure, resentment, or perception that change is not necessary.
What are the ways to reduce resistance to change?
-Deliver training programmes.
-Focus on the positive aspects.
-Design flexibility into the change.
-Involve employees affected in the planning of change.
