Change Flashcards
Explain internal change
Change that arises from inside the organisation and relate to the internal functioning of the business
Explain external change
Change form outside the business that affect business performance
Identify types of internal change
Objectives - change as the business grows
Personnel - new employees bring new ideas
Skill levels - become more knowledgeable as they are their for longer
Finances - new procedures, products or legislation may cause investment
Innovation - development of products can cause change
Identify types of external change
Globalisation - the growth of major industrial nations has had implications for businesses
Environment - increasing issues cause change to prevent further damage
Technology - new production methods
Customer base - change in composition such as age or ethnic distribution
Economy - the economic situation and stage of the economic cycle
Competition - businesses need to be aware of actions of competitors
Government - the government and its policies impose change
Explain anticipated change
Change that can be predicted / is expected, which means that businesses can respond in order to minimise the adverse effects
Explain unanticipated / catastrophic/ crisis change
Change that a business has no control over that requires contingency planning for worst case scenarios such as flooding
Explain strategic / tactical / operational change
Any occur as a natural part of the operation of the business, results of this will require operational changes in the way the business is ran day to day
Explain drivers of change
Factors that will cause change
Explain barriers to change
Factors that will cause problems / resistance to change
Explain change management
The approach to overseeing a transitional stage within a business
What’s the importance of managing change effectively
Avoid drivers to change
Avoid employee resistance
Avoid wasting resources attempting to implement a failed change
To ensure change is successfully implemented
Explain lewins 3 step change model
1) unfreeze - this involves trying to remove the forces that are creating interia in the business by putting forward new ideas and persuading people of the need for change
2) change - communicate often, dispel rumours, empower action, involve people in the process
3) refreeze - the business needs to ensure that the new processes are reinforced so that people don’t go back to the old methods
Explain McKinseys 7-S model
The model can help management identify where there is a need for change in the business in any situations. For success, the business needs to make sure that all seven components are aligned
- strategy, skills, structure, style, systems, staff and an overall goal of shared values by using all element together
Explain kotters 8-step change model
Helps managers understand and manage change in a business
1) increase urgency - encourage people to make the changes
2) build the team for change - put in people who have a commitment to change
3) have a vision - of what is to be achieved
4) communicate - to get everyone to accept the change
5) empower action - remove anything that will stop the change happening
6) create short-term wins - don’t expect to do everything immediately, set achieveable goals
7) don’t let up - keep the momentum.
8) make the change stick - don’t let them go back to the old methods
