Change Flashcards
What are ways a business can change?
Internal
External
Planned
Unplanned
Why will new owners make change?
Own vision or mission
Change in corporate objective
Cultural difference
Personal leadership style
Make a difference
What are other causes of change?
Development in technology
Market changes
Consumer tastes
Legislation
Changes in workforce
Changes in the economy
What are the effects of change?
Change production methods and update equipment
Develop new products
Meet new legal requirements
Retrain the workforce
Look for new markets
How to manage change?
Identifying project champion
Establishing project group
Gaining commitment from employees
What is a project champion?
The person responsible for driving a project forward and gaining commitment
What is a project group?
A group of specialists from different backgrounds who are tasked with achieving the desired change
What is Imposed total package?
Top down
No consultation
Senior management present a large scale change
Creates rapid change
May be significant resistance
What is Negotiated total package?
Consultation between senior management and workers about need for change and how to implement it
May slow down or restrict the size of change
Less resistance
What is Imposed piecemeal initiative?
Top down
No consultation
Senior management present change but it is implemented more gradually, a step at a time
Resistance may be reduced
What is Negotiated piecemeal initiative
Consultation
Senior management and workers agree on need for change and how to implement
Change is gradual with workers getting used to one change before another is implemented (slow progress)
What is Kotter and Schlesinger’ 4 reasons for resistance?
self interest
the status quo
Different assessment
Misunderstanding and fear
What is Kotter and Schlesinger’s 6 ways to overcome resistance?
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement
Manipulation and co-option
Explicit and implicit coercion
What is Lewin’s three step process to remove resistance in change?
Unfreeze
Change
Freeze
What are leaders responsible for?
Clearly defining the strategic direction
Setting and sharing clear policies and procedures
Communicating the strategy to everyone to provide a clear vision
Overcoming resistance to change
Allocating resources
Monitoring progress against pre set targets
Taking corrective action if necessary
What is the value of communication
in managing change?
Strategy needs to be shared with all stakeholders
Reduce resistance to change
Gain support from external organisations e.g. investors
Keep trade unions informed
Help everyone to understand their role during the implementation stage
Coordination of all key parties e.g. suppliers and employees
What does culture of a business affects the way in which the business operates?
Decision making
Organisational structure
Communication
Leadership styles
Attitude towards work
Workforce performance
What influences organisational culture?
Mission statement and corporate objectives
Personal attitudes, beliefs and priorities of the leaders
Norms within society
Ownership and size of the organisation
Geographical scope i.e. local, national or global
Competitive environment
What are the reasons for of changing organisational culture?
Change in owners or leaders
Change in corporate objectives
Change in size
Responding to market conditions
What are the reasons of changing organisational culture
Resistance to change
Lack of trust
Period of adjustment
How to evaluate the management of change?
Measured against pre-determined criteria
Employee/employer relations and degree of resistance to change
Actual cost of implementation against budget – variance analysis
Time scale e.g. was the deadline met
Customer and employee attitude surveys
What are the positive impacts of competitiveness?
Closure of less successful competitors.
USP achieved through innovation leading to a competitive advantage.
Favourable economic change to support global competitiveness.
What are the negative impacts of competitiveness?
New entrant into the market.
Change in legislation affecting ability to compete.
Dominant business as a result of a merger or takeover.
What are the positive impacts on productivity?
Increased productivity as a result of process innovation.
Technological advancements.
Shared expertise from a merger or takeover.
Technical economies of scale from growth.
What are the negative impacts on productivity?
Teething problems from new machinery.
Reduced capacity utilisation as a result of poor economic conditions.
What are the positive impacts on financial performance?
Low interest rates
Less competitive environment leading to rising sales.
Economies of scale as a result of changing size.
Increased profitability from greater efficiency
What are the negative impacts on financial performance?
Falling profits as a result of the economic environment
Greater legislation.
Brexit leading to a loss of international competitiveness.
What are the positives to stakeholders?
Improved availability of information to consumers
Greater returns to shareholders from improved profitability
What are the negatives to stakeholders?
Mergers or takeovers leading to less competition, loss of jobs, fall in share value.
Loss of jobs and therefore UK employment following a strategy of moving production abroad.
