change Flashcards

(39 cards)

1
Q

causes of rapid change

A
  • introduction to new technology
  • change in competition
  • change in consumer taste
  • new legislation
  • labour markets change
  • change in economic conditions
  • change in ownership
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2
Q

what markets are likely to change often

A
  • tech markets due to innovation
  • fashion due to change in consumer taste
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3
Q

what are internal causes of change

A
  • change in management styles
  • change in business ownership
  • change in business size
  • introduction of new technology
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4
Q

What are external causes of change

A
  • introduction of new technology
  • labour markets
  • change in economic conditions
  • competition
  • change in consumer taste
  • new legislation
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5
Q

What are change in business size

internal causes of change

A
  • if a business grows organically they may expand their product range
  • developing new distribution channels
  • rapid organic growth can happen which can put pressure on liquidity, can also put pressure on staff as they may need to learn new skills
    rationalisation may occur
  • reduction in staff responsibilities
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5
Q

labour market

external causes of change

A
  • minimum wage, living wage, employment protection, increases maternity pay will all push up costs
  • recessions will increases supply of labour and push down costs
  • immigration policies and expansion of EU membership will increases supply of immigrant workers
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5
Q

planned change

A
  • creates internally and is structured and timetabled
  • clear objectives for the changes are established
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6
Q

unplanned changes

A
  • this occurs as a response to a shock to the business and are often unstructured and under resourced
  • usually a response to external changes
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6
Q

what are the effects of change

A
  • shorter product life cycle
  • demised brand loyalty
  • new product needs to be developed
  • production methods will need to be changed
  • retaining in the workforce
  • flexible workforce
  • the need to comply with constantly changing legislation
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7
Q

effects of change

why would products needs shorter product lifecycle

A
  • bring threats and opportunities of retailers and manufactures
  • products must pay a return immediately
  • little incentive for long term investment
  • returns can be improved by seeking new markets for products
  • market development
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8
Q

effects of change

diminished brand loyalty

A
  • new entrants find it easier to grab market share and existing businesses have to fight to maintain sales
  • marketing costs are increases to maintain brands and introduce new products
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9
Q

effects of change

why would production methods will need to be changed

A
  • to match changing consumer demands
  • new products needs continually, spending required on new ideas and improving existing products
  • capital good are likely to be out of date faster and this increase pressure on returns from large scale capital investments. this encourages businesses to contract out manufacturing
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10
Q

effects of change

why would you need to retraining the workforce

A
  • skills mismatch the problems
  • need to adapt to new technologies
  • training and recruitment costs increased
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11
Q

what are strategies for effective change management

A
  • employee preparation
  • increases R&D expenditure
  • additional capital investments
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12
Q

effective change management

employee preparation

A
  • This may involve reskilling to enable employees to carry out new tasks effectively
  • training will make a workforce more flexible and adaptable, enabling them to meet the demands of change.
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13
Q

effective change management

Increased research and development expenditure

A
  • Increased expenditure on R & D is used both in preparation for change, and as a reaction to change
14
Q

effective change management

additional capital investments

A
  • Change can create the need for investment in new technology and new equipment.
  • change is an expensive undertaking
15
Q

Storey’s Four Methods of Implementing Change

A
  • negotiated Total Package
  • Negotiated Piecemeal Initiatives
  • Imposed Piecemeal Initiatives
  • Imposed Total Package
16
Q

Negotiated Total Package

A
  • change implemented will be based on agreement between management and workers
  • Trade unions will be involved
  • more likely to result in a coordinated process of change which is understood, and accepted, by all stakeholders
  • requires a good deal of preparation
    and expenditure, may not always be possible in a highly competitive and difficult business environment
17
Q

Negotiated Piecemeal Initiatives

A
  • changes will happen gradually
  • agreed on change through negotiation and consultation with the workforce
18
Q

Imposed Piecemeal Initiatives

A
  • This saves time and the structure
    of change is in the hands of management who understand the overall objectives
  • imposition of change can be met with resistance from workers who may resent the lack of consultation
  • Each piecemeal change may also be aimed at a different objective, whereas a total package is more likely to be working towards one overall objective
19
Q

Imposed Total Package

A
  • Senior management plan and introduce a major change all at once without consultation with workers
  • This sort of change might occur when negotiated change has failed or because of rapidly changing external factors that need responding to quickly
  • resisted by middle managers and workers and its success depends on the skills of the senior managers in being able to establish new systems whilst minimising disruption.
20
Q

supplier change

A
  • manufacturers who change to a Just in Time (JIT) system may find that some of their suppliers resist having to supply components ‘as and when’ the manufacturer requires. This may well result in an increase in costs as deliveries need to increase in frequency
  • Unfortunately smaller suppliers may have no choice but to accept the situation or lose a valuable customer
  • Manufacturers should involve their suppliers from the outset
21
Q

Owner resistance

A
  • Owners may fear that change will increase risk
  • implementing change may be costly and may involve investment
  • Management will need to explain their plans to the shareholders carefully to convince them that sacrifice now will lead to better profit in the future
22
what are Lewin’s three step process of change
- unfreezing - change or transition - refreezing
23
unfreezing
- involves creating a motivation for change. Creating a realisation amongst employees that change is necessary
24
change or transition
- workers are now moving toward a new way of doing things - need to be given time to understand and adapt to these changes - support is needed, Support can come in the form of training, education, and learning from, and not being criticised for mistakes
25
Refreezing
- final stage in the change process is about establishing stability once the changes have been made - refreezing clearly implies workers must not be forced into continual change, but allowed time to adapt
26
worker resistance
failure to consider the emplyee when making change can result in an expensive failure, with employee reactions ranging from simple misunderstandings (resulting in lost productivity or damage) to outright sabotage and organised industrial action
27
importance of managing change
- reduce resistance - maintain productivity and morale - ensure successful implementation - reduce costs and risks
28
how can management of change be evaluated
- measure against objectives - monitor employee engagement and feedback - assess training effectiveness - monitor business performance metrics - evaluate resistance - conduct a post implementation review
29
advantages of a piecemeal approach
- flexible - lower upfront cost as it can be spread out over time - risk reduction as smaller steps means mistakes are easier to detect - easier implementation - testing and evaluation as each stage can be tested before moving to next stage
30
drawbacks if a piecemeal approach
- lack of coherence - delays and inefficient - short term thinking - higher long term costs - poor communication
31
benefits of a total package change approach
- clear direction - fast results - eliminates outdated systems - consistency - motivates momentum
32
drawbacks of a total package change approach
- high risk failure - resistance to change - costly upfront - limited flexibility - stress and overload
33
benefits of an imposed change approach
- speed and efficiency - clear leadership - useful in a crisis - consistency - overcomes resistance
34
drawbacks of an imposed change approach
- lowers employee morale - high resistance - poor stability - short term compliance only
35
benefits of a negotiated change approach
- higher acceptance - reduced resistance - stronger relationships - tailored solutions - long term sustainability
36
drawbacks of a negotiated change approach
- time consuming - risk of compromise dilution - power imbalance - conflicting interests - complex coordination