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Change Management Flashcards

1
Q

What are the groups that environmental pressure for change can be divided into?

A

General (indirect action) - PEST framework

Task (direct action) - Porter’s Five Forces

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2
Q

What are some examples of external indirect triggers? (PEST)

A

Political/legal

  • changes in government
  • new environmental protection policies
  • new labor laws
  • European directives private/public ptships

Economic

  • growth or recession
  • changes in currency and interest rates
  • local labor costs
  • regional prosperity/opportunities
  • disposable income

Social

  • attitudes to work and leisure
  • environmentalism
  • attitudes to health/education
  • fashion trends
  • changing national/regional culture

Technological

  • growth in internet
  • public use of IT
  • global sourcing/call centers
  • innovations
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3
Q

What are some examples of external direct triggers? (Porter’s five forces)

A

Competitive rivalry - powerful rivals may force the firm to have to adapt to survive, either through innovation, if a differentiator, or cost cutting if a cost leader

Power of customers - powerful customers could trigger a firm to consider forwards vertical integration

Power of suppliers - supplier power could encourage a firm to redesign products in order to reduce the reliance on specialist components and thus facilitate multi-sourcing

Threat of new entrants - New entrants may force incumbent firms to improve quality to maintain market share

Threat of substitutes - New technologies may result in substitutes that render existing product obsolete. This could lead to factory closure and reorganization.

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4
Q

What are the internal triggers for change?

A 
Philosophy
Reorganization
Personnel
Conditions
Technology
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5
Q

What are some examples of internal triggers under Philosophy?

A

New ownership
New CEO
New initiative/management style

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6
Q

What are some examples of internal triggers under reorganization?

A

Takeover/merger
Divisional restructuring
Rationalization/cost reduction

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7
Q

What are some examples of internal triggers under Personnel?

A

Promotions/transfers
Rules/procedures
Training/development

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8
Q

What are some examples of internal triggers under conditions?

A

Location change
Outsourcing
Rosters/flexible working

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9
Q

What are some examples of internal triggers under technology?

A

New procedures/systems
Changing information demands
Integration of roles

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10
Q

What is Evolution?

A

Transformational change implemented gradually through interrelated initiatives; likely to be proactive change undertaken in participation of the need for future change.

Evolution can take a long period of time, but results in a fundamentally different organization once completed. It is normally taken in anticipation of a need for change.

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11
Q

What is Revolution?

A

Transformational change that occurs via simultaneous initiative on many fronts.

More likely to be forced and reactive because of the changing competitive conditions that the organization is facing.

Rapid and likely to affect most, if not all, aspects of what the business does and how it operates.

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12
Q

What is adaptation?

A

Change undertaken to realign the way in which the organization operates; implemented in a series of steps.

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13
Q

What is reconstruction?

A

Change undertaken to realign the way in which the organization operates with many initiative implemented simultaneously.

Often forced and reactive because of changing competitive context

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14
Q

What is transformation?

A

Entails changing an organization’s culture.

A fundamental change that cannot be handled within the existing organizational paradigm.

Likely to be a top down process and is normally driven by major external events.

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15
Q

What is realignment?

A

Does not involve a fundamental reappraisal of the central assumptions and beliefs.

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16
Q

What is culture?

A

The set of values, guiding beliefs, understandings and ways of thinking that are shared by the members of an organization and is taught to new members as correct.

Represents unwritten, feeling part of the organization.

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17
Q

Why is the inherent culture of the organization important?

A

The existing culture can become embedded and hence resistant to change. Overcoming this resistance can be a major challenge.

The existing culture can limit the types of strategy development and change that are considered.

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18
Q

What is the cultural web? (designed by Gerry Johnson)

A

Explain why firms often failed to adjust to environmental change as quickly as they need to. Gerry concluded that firms developed a way of understanding their organization–called a paradigm–and found it difficult to think and act outside this paradigm if it was particularly strong.

Includes symbols, power structure, organizational structure, control structure, routines and rituals, and stories and myths.

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19
Q

What is the McKinsey 7S Model?

A

Looks at corporate culture and the various components that it is made up of.

Seven interconnected elements all beginning with the letter “S”.

The model suggests that all seven elements have to be aligned with each other in order for the organization to operate effectively.

20
Q

What are the 7S’s under McKinsey’s Model?

A 
Structure
Strategy
Systems
Skills
Style
Staff
Shared values
21
Q

What is meant by structure in McKinsey’s 7S Model?

A

The way the organization is structured and who reports to whom.

22
Q

What is meant by strategy in McKinsey’s 7S Model?

A

The ways in which the organization plans to gain competitive advantage or achieve other objectives.

23
Q

What is meant by systems in McKinsey’s 7S Model?

A

Daily activities and procedures followed by staff.

24
Q

What is meant by skills in McKinsey’s 7S Model?

A

The skills, abilities and competencies of the organization’s employees.

25
Q

What is meant by style in McKinsey’s 7S Model?

A

The style of leadership adopted within the organization.

26
Q

What is meant by staff in McKinsey’s 7S Model?

A

The people that make up the organization.

27
Q

What is meant by shared values in McKinsey’s 7S Model?

A

The core values of the organization (i.e. the paradigm)

28
Q

What is resistance?

A

Any attitude or behavior that reflects a person’s unwillingness to make or support a desired change.

29
Q

What are the reasons for resisting change?

A

Job factors
Social factors
Personal factors

30
Q

What are the job factors in reasons for resisting change?

A

Fear of technological unemployment

Fear of changes to working conditions

Fear of demotion or reduced pay

31
Q

What are the social factors in reasons for resisting change?

A

Dislike need to break up current social environment

Personal dislike of people implementing change

Lack of consultation leading to rejection of change

32
Q

What are the personal factors in reasons for resisting change?

A

Implied criticism of current working method

Feel less valued

Work becomes more monotonous

33
Q

According to Kotter and Schlesinger, what are the four reasons that explain why certain people resist change?

A

Parochial self-interest
Misunderstanding
Low tolerance to change
Different assessments of the situations

34
Q

What does Lewin’s three stage model include?

A

Unfreezing
Change behavior/attitude
Refreezing

35
Q

What is unfreezing?

A

Managers make need for change obvious

Convince staff

Identify and exploit existing areas of stress or dissatisfaction

Create or introduce additional forces for change, such as tighter budgets and targets

Increase employee knowledge about markets, competitors and the need for change

36
Q

What is the change behavior/attitude stage itself?

A

Mainly concerned with identifying what the new behavior or norm should be.

Establish new patterns of behavior

Set up new reporting relationships

Create new reward/incentive schemes

Introduce a new style of management

37
Q

What is refreezing?

A

Stabilizing the change

Ensure people do not slip back into old ways

Larger rewards for those employees that have fully embraced the new culture

Publicity of success stories and new heroes i.e. employee of the month

Ensure change is embedded within the organization and its culture.

38
Q

What does Kanter et al argue?

A

Lewin’s three stage model is too simplistic and assumes that organizations are stable and static; change only in one direction

Change is multi-directional and ubiquitous; it happens in all directions simultaneously and is often a continuous process

39
Q

What is Lewin’s Force Field Analysis?

A

Change will only be successful if the driving forces are larger than the restraining forces.

The model encourages us to identify the various forces impinging on the target of change, to consider the relative strengths of these forces and to explore the alternative strategies for modifying the force field.

40
Q

What are examples of restraining forces and driving forces?

A

Anxiety about job security–Fresh challenge in job

Change seems less stimulating–Improved rewards

Fear of loss of power, status–Increased job discretion

41
Q

What is incremental change?

A

Step-by-step changes over time in small steps

42
Q

Why could incremental change be ideal?

A

It is possible for the organization to adapt to the change without having to alter its culture or structures significantly. Employees are able to adapt to the gradual changes, and are not unsettled by them.

43
Q

What is transformational change?

A

A sweeping change that has immediate and widespread effect.

44
Q

What is the effect of transformational change?

A

To alter the structure and culture of the organization, often with major staff redundancies and the recruitment of new staff with new skills

45
Q

Who is a change leader?

A

A key figure within the organization who takes overall responsibility and control for the proposed change within the organization.

46
Q

What is the 8-step process that Kotter suggested when leading change?

A
  1. Establishing a sense of urgency
  2. Creating the guiding coalition
  3. Developing a change vision
  4. Communicating the vision
  5. Empowering road based action
  6. Generating short-term wins
  7. Never letting up
  8. Incorporating changes into the culture

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