Change Management

Question 1

What is change management

Answer 1

Organisational change is the adoption of a new behaviour or idea by an organisation. Changes are due to pressures or foreseeable pressures from the dynamic business environments. Organisations can either be proactive or reactive and changes can be incremental or transformational.

Question 2

4 common types of organisational change

Answer 2

Restructure
Merger
Change in quality procedures
Change in management style

Question 3

Restructure

Answer 3

A transformational change where the layout of some departments can change or be closed down entirely. Often as a result of lower funding which is a pressure from the businesses internal environment, (shareholders).

Question 4

Merger

Answer 4

A transformational change where two or more separate companies join together. The result of a merger is a new organisation such as Kraft and Heinz merging to become KraftHeinz.

Question 5

Change in quality processes

Answer 5

An incremental change where businesses change aspects of their quality control processes such as implementing technology to improve quality.

Question 6

Change in management style.

Answer 6

An incremental change where manager changed what management style they are using.

Question 7

Managing Change

Answer 7

It is important that change is managed well. If not it can result in employee unrest or even the demise of the organisation.

Question 8

Example of why managing change is important

Answer 8

Kodak was a leader in the camera industry. Improvements in technology which are pressures from the macro environment brought new competitors which are pressures from the external operating environment. Kodak was reactive to these pressures rather than reactive so by the time they began to change, it was too late and they filed for bankruptcy in 2012.