Change (U4) Flashcards
What are the causes of change in a business
Developments in technology – e.g changes in communication
Market Changes – new competition e.g price matches
Consumer tastes – people are more environmentally conscious
Legislation – government law changes
Changes in the workforce – population of the workforce
Changes in the economy – Periods of booms and recession.
How do businesses act due to a change
Increased market research due to a change in the market.
Increase in the development of R & D this will be essential where changes are always taking place
Retraining managers and shop floor workers to help work the new system change for example.
Businesses must be more aware of competitors actions and be ready to react to them
What are the types of change
Planned and unplanned – two types of change that can occur with in an organisation.
External and internal factors can cause both types of changes within a company.
Describe planned & unplanned change
Planned change – occurs when deliberate decisions are made in an organisation.
Unplanned change – is a result of unforeseen occurrences.
Define internal and external forces of change
Internal forces of change – occurs from inside the influence of the organisation .
External forces of change – occurs from outside the influence of the organisation
What are the internal forces of change
Desire to increase profitability
Reorganisation to increase efficiency
Conflict between departments
Change organisational culture
What are the external forces of change
Customer demand
Competition
Cost of inputs
Taxes and legislation
Technological change
Describe step change
Step change – occurs rapidly
Dramatic change in one swoop
Radical altercation in the business
Gets it over quickly
Describe incremental change
Incremental change – Changes occurs over a period of time in stages.
Tends to be more inclusive
Ongoing piecemeal change which takes place as part of an organisation’s evolution and development.
Why do businesses manage change?
The management of change in business has grown in importance due to factors such as increased pressure from competitors, higher costs and challenging economic conditions.
Why do businesses gain resistance to change
Workers and certain levels of management sometimes fear the unknown and they feel safe with the current practices in place.
Individual workers might be concerned that they will no longer be able to work with friends or move to something they dislike.
Owners are also resistant to change as they may fear operating in the unknown markets and conditions, not want the cost of changes
Customers and suppliers also have resistance to change as they might not like the change the business Is going through.
Describe the 3 step change method
Kurt Lewin - three step change method
Unfreeze – preparing for the desired change
Change – Implementing the desired change
Refreeze – Solidifying the desired change
What are the J storeys 4 approaches to remove resistance to change
Negotiated Total Package
Negotiated Piecemeal Initiatives
Imposed Piecemeal Initiatives
Imposed Total Package
What is Negotiated Total Package
Negotiated Total Package - Management and employees negotiate on how a major change in the way a business functions will be implemented.
The change implemented will be based on agreement between management and employees in all locations from which the business operates.
What is Negotiated Piecemeal Initiatives
Negotiated Piecemeal Initiatives - Management and employees will consult and agree on various changes as they become necessary done in stages
