Chapter 14 - Managing Change Flashcards
What is change management?
The process used to identify and adapt to change in the business environment
Name 5 reasons for change.
- Technology
- Employees
- Consumers
- Laws
- Competitors
Explain how technology causes change in a business
CAD, CAM, CIM increased speed and quality of products
E- Commerce and Social Media enables firms to promote and sell their goods online
Email and video conferencing increased speed of communication between business and their stakeholders
What does CAD mean?
Computer aided design
What does CIM mean?
Computer integrated manufacturing.
What does CAM mean?
Computer aided manufacturing
Explain how employees causes change in a business
Changes in education and skill level has created a need for:
Greater flexibility in the workplace
More varied rewards
Interesting and challenging work
Explain how consumers causes change in a business
Consumers have more complex demands than consumers in the past. A business needs to be able to react to:
Changes in consumer taste
Demand for greater choice of goods and services
Growth in demand for environmentally friendly and ethical products
Explain how law causes change in a business
New national and eu laws can change the way businesses operate
Explain how competitors causes change in a business
Businesses must monitor changes introduced by competitors including:
Launch of new product
Methods used to reduce costs
Growth of competitors through mergers and acquisitions
What are 5 reasons for resistance to change?
fear of failure redundancy loss of control lack of rewards laziness
What are 5 ways to overcome resistance to change?
open communication employee involvement leading by example rewards training
When changing from a controller manager to a facilitator manager what 5 things to we look at?
authority motivation training and development management supervision decision making
In terms of authority how can a controller manager change to a facilitator manager?
controller manager - gives orders and expects employees to obey without questions
facilitator manager - authority is shared between management and employees. staff are delegated responsibility
In terms of motivation how can a controller manager change to a facilitator manager?
controller - staff are viewed as lazy and unmotivated. money is used to try motivate them
facilitator - employees are offered a range of financial and non financial rewards
In terms of training and development how can a controller manager change to a facilitator manager?
controller - employees are trained only to perform their duties. managers believe employees do not want more responsibility and do not invest in further training and development
facilitator - management invests in training and development to improve the skills and experience of employees
In terms of management supervision how can a controller manager change to a facilitator manager?
controller - managers closely supervise employees
facilitator - delegate tasks to employees, they are trusted to perform their duties without constant supervision
In terms of decision making how can a controller manager change to a facilitator manager?
controller - managers make all decisions and dont consult staff
facilitator - employees are empowered to make decisions on behalf of the firm without needing to consult management
What is employee empowerment?
managers give employees a certain amount of independence and responsibility for decision making in the business
How can managers encourage employee empowerment?
invest in training
reward
trusting employees
control mechanism (be able to identify and fix mistakes quickly)
What are 4 benefits of employee empowerment?
decision making
employee motivation
management time
better customer service
What are 4 risks of employee empowerment?
employee training (may not be adequate)
managerial control (managers unhappy with loss of control)
lower motivation
less managerial supervision (unnecessary risks taken)
What is employee participation?
relates to management encouraging staff to actively take part in running and improving the business
What 3 ways can management encourage employee participation?
employee works council
worker directors
employee share purchase plan
