Change management

Question 1

Explain concept of change- with example of organisational change

Answer 1

The concept of change can be defined as any alteration to an organisation. The change or alterations may be significant and impact on the whole organisation or may be relatively minor where only one part of the organisation is affected.

An example of organisational change is when an organisation restructures. An organisation such as a motor vehicle manufacturer might decide to change its suppliers and supply chain management, therefore affecting operations.

Question 2

Define high-risk and low-risk practices of the change process

Answer 2

Low-risk practices are those based on a participative approach to implementing change. Low-risk practices include approaches based on two-way communication, empowerment of employees and establishing work teams.

High-risk practices, on the other hand, encompass an autocratic approach to change. High-risk practices can include intimidation, coercion and threats. Communication is likely to be one way and the situation or information might be manipulated.

Question 3

Define Kotter’s theory of change management

Answer 3

Kotter’s change management theory refers to an eight-step theory that helps an organisation to efficiently and effectively implement change by providing the use of low-risk strategies and maximising driving forces.

Question 4

Explain why effective leadership is vital in successful change management.

Answer 4

Effective leadership is vital for successful change within an organisation.

Effective change management requires leaders (change agents) to:

• perform an accurate diagnosis of the current situation and accurately anticipate what is likely to occur in the future (proactive analysis and planning)
• adapt their behaviour to suit the situation at hand (situational approach)
• effectively communicate their expectations and vision to those being led—this includes coaching employees and articulation of the vision. In doing this, managers will develop a positive relationship with different stakeholder groups affected by the change.

In his eight-step model of change management, Kotter stressed that effective management is crucial to successful implementation of change. During a change or period of transition a leader must:

• articulate the organisational vision for the future—which means that this is what the company wants to achieve and includes the actions that will be taken to achieve it.
• motivate and inspire staff to work towards successful change as envisaged. To do this, leaders require strong and effective communication and interpersonal skills
• clearly define strategic plans and strategies that need to be developed.

Question 5

Explain difference between driving and restraining forces for change

Answer 5

Kurt Lewin developed the principle of force-field analysis as a tool for understanding problems and effects of change on an organisation.

A driving force acts to push an organisation towards a change and supports the change occurring, while a restraining force acts to decrease or restrain the change occurring successfully. For successful change to occur, the driving forces need to outweigh the restraining forces.

Examples of Driving forces for change:

• Positive relationship between employees and management
• A positive corporate culture where employees are more likely to take a positive view of change.

Examples of Restraining forces for change:

• Employees feel alienated from the organisation and do not feel appreciated. Therefor, they are less likely to embrace change.
• Employees and management distrust each other. There is a lack of consultation. Change is not accepted or trusted.