Causes Of Change Unti 10 Flashcards
Lewinsky forcefield analysis
Driving and restraining forecfields 0 look at mock example
Value of change
Keep up with external environment changes - failure to adapt, lead to loss of comp advantage
- trends constant change
- unexpected change
-those who can anticipate change- strategy I planning
Flexible organisation
Anticipate changes quickly
Finance - reserves of cash, liquidity, not being highly geared so hard to borrrow money
Marketing- close to customers in order to anticipate changes in demand and react and plan
Operations - short lead times(fulfil customer orders quickly) JIT or buffer stock, mass customisation practices (personalising) , outsourcing (help be flexible, let someone else do and focus on what good at)
HR-highly skilled workfoce, Able to respond to changes , seasonal, decentralised decisions
But
- opportunity cost fro holding cash
-staying close to customers, costly, market reserach,
How to become flexible
Delayering - tall to flat
Kotter and Schlesinger
Self interest
Misunderstandings and fear
Differing views
Prefer status quo
Overcoming self interest
Overcoming misunderstanding
Education and communication
But time consuming,a dn requires trust
Overcoming differing views
Participations no involvemt
Facilitation and support
Negotiations no agreement
Overcoming preference of status quo
Negaotaiaon and agreement
Manipulation and cohersion
Strong culture
Everyone understands culture
Weak culture
Don’t understand culture, practices done match mission
Handys culture
Role culture
Task
Power
Person
Role culture
Tall structures
Bearocracy
Centralisation power, who delegate jobs further down, they make decisions
-stability and predictability
-consistency
-everyone has place in hierarchal structure
-lack of creativity and innovation
EG- medical market - businesses with high uncertainty avoidance (HOFESTEDE)
-lack of direction, to overcome, but in buerocracy, rules to control
But
-beauracy slows down decision making
Task culture
Power in organisation comes from expertise and abilities to perform certain tasks
- flat structure
-empowerment
-decentralisied
-innovation
-encourage intrapreneurship
-country club leader
-encourage teamwork
-very innovative and creative
MATRIX STRUCTURE
-organic growth, encourages flexibility and adaptability
-autonomy — but as we know, when given autonomy, GREINER, can lead to crisis of CONTROL- need coordination - may develop their own culture
Power culture
Power held by one expert - one person makes all decisions, determine strategic direction
- strong charismatic leader
-quick decisions
-what boys says , goes
-not many rules and people just do what boss says
Ie - Steve Jobs, apple - as 1 person, he is very innovative so doesn’t matter that no autonomy given out.
No innovation unless the person with the power is innovative
Person culture
All individuals have strengths - role of organisation is to enable the employee to demonstrate their abilities
-total freedom - so creativity is encouraged
-join leadership style
-make decisions based on own expertise
-not working together - but all working from same business
- county club
-encourage intrapreneurship
- thinks and act liek one, to create ideas for business, taht lead to comp advantage, and profitability
-
EG- law firms, all qualified, experienced- only works with high skilled
But -loose managerial control and no bond with organisation
High power distance vs Low power distance index
High PD- acceptance of tall structure
- authoritarian leadership style
-management control
Eg- CHINA- 80-high
Low PD- prefers flat structure
-delegation
-consultive leadership
Eg- UK -35-LOW
Individualism / collectivism
High score - individualistic
Eg-UK -76
Low score- collectivist
China -43
Masc /femme
Masc- strong leadership style, based on data
-scientific decision making
Fem- consultive approach, intuition
- hunch decision making
Uncertainty avoidance - risk taking
High - avoid risk
-japan = 95
Low- willing to embrace change and risk
Uk- 35
Difficulties changing culture
- hard to indentify what culture is
-can involve restructuring
Implementing strategy effectively
Clear outline of objectives- mission statement, corperate objectives
-create corporates strategy- long term plan achieving objectives
-consult stakeholders, employees, customers, shareholders, suppliers
-break down strategy into component parts, set deadlines for completion- network analysis
- review and adjust organisational culture
- clearly communicate strategy to each functional area - better communication more likely to take it on board
- -review and
Leaders are vital in implementing strategy
Pivotal, reviewing info, set strategy
- communicate
- role of leaders
-guide, direct, help support, motivate,
- set vision
-asses SWOT
-monitor progress
-reward
-establish brand identity and USP - competitive advantage
-ways to communicate e
- regular meetings
-
Functional structure
Consistency
Realise econ of scale
- hard to communicate and coordinate across departments - diff departments develop diff cultures ie, finance, task culture, whereas marketing, personal culture
Product structure
Improved product design
Different products at different life cycle , so important that each has different strategy
- costs, duplication of roles
Matrix strcuture
Team based
- from all areas of function, for one project
-improves inter-department communication
- but potential conflict
Planned strategy
Original structured plan
Emergent
Adjusted to external environment
Strategic drift
External environment changes when strategy does not
Divorce of ownership of control
Shareholders own PLC
Directors run a PLC
- risk for shareholders, less dividends, limited liability , may loose investment if goes into liquidation
-not interested in the decisiosn, just want short term profits
EG- lead to Patisserie Valerie committing accountancy fraud, manipulated balance sheets - did it fro own reputation, higher bonus
Strategy of plc determined by shareholders
Shareholders invest equity to the business, and get a say on how the business is run in return- may not be experienced to do so
-Shareholders get to select the Board of Directors, and hold them to account on the delivery of the strategy in the AGM (annual general meeting)
- put pressure on profits by wanting short term returns- dividends
It may not be because:
-Many shareholders are small investors / pension funds and do not have the time or expertise to be involved in the day to day running of the business
-The strategy may be determined by the shareholders, but it is the management of the organisation who need to carry it out. The emergent strategy may not be the strategy outlined by the shareholders
Contingency planning
Evaluate threats and weakness - create plan for UNLIKLEY EVENTS
- Covid, flooding,
Ie - airline industry, 9/11, hijack, now they lock cockpits
+reasures customers and staff at safety
+minimise negative Impacts on customers and suppliers
-costly
-time consuming
-constantly need updating
-training
How to improev divorce of ownership and control
Give directors shares, company interest at hearts 0 cust divide between owner and control
