Chapter Seven – The Management of Change

Question 1

Organisational change

Answer 1

Organisational change: is the adoption of a new idea or behaviour by an organisation.

Question 2

Proactive

Answer 2

To be proactive: is to initiate change rather than simply to react to events.

Question 3

Reactive

Answer 3

To be reactive: is to wait for a change to occur and then respond to it.

Question 4

Source of change

Answer 4

Source of change refers to where the change comes from, which includes changes from both the internal and external (operating) environments.

Question 5

Recession

Answer 5

A recession: is a contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow rate of economic growth.

Question 6

Emissions trading scheme

Answer 6

An emissions trading scheme: regulates the buying and selling of permits to emit greenhouse gases. A permit allows emissions up to a prescribed cap or limit. Large emitters either choose to buy extra permits or invest in technologies that control emissions. If limits are exceeded, penalties are imposed.

Question 7

Force field analysis

Answer 7

Force-field analysis: outlines the process of determining which forces drive and which resist a proposed change.

Question 8

Driving forces

Answer 8

Driving forces: are those forces that support the change.

Question 9

Restraining forces

Answer 9

Restraining forces: are those forces that work against the change.

Question 10

Organisational inertia

Answer 10

Organisational inertia: refers to an unenthusiastic response from management to proposed change.

Question 11

Change management process

Answer 11

The change management process: is the sequence of steps that a manager would follow for the successful implementation and adoption of change.

Question 12

Facilitators

Answer 12

A facilitator: is someone who helps people achieve an objective by providing unobtrusive assistance.

Question 13

Change agent

Answer 13

A change agent: is a person or group of people who act as catalysts, assuming responsibility for managing the change process.

Question 14

Manipulation

Answer 14

Manipulation: is the skilful or devious exertion of influence over someone to get them to do what you want.

Question 15

Cooptation

Answer 15

Cooptation: involves the selection of an influential person among the potential resistors to be involved in the development and implementation of the change process.

Question 16

Corporate social responsibility

Answer 16

Corporate social responsibility: involves managing organisational processes in order to produce an overall positive impact on the community.

Question 17

Triple bottom line

Answer 17

Triple bottom line: refers to the social, economic and environmental performance of an organisation.

Question 18

Ecological sustainability

Answer 18

Ecological sustainability: occurs when economic growth meets the needs of the present population without endangering the ability of future generations to meet their needs.

Question 19

Sustainability report

Answer 19

A sustainability report: is a comprehensive report of what a business has done, and is doing, with regard to social issues that affect it.

Question 20

Business ethics

Answer 20

Business ethics: refers to the application of moral standards to organisational behaviour.

Question 21

Corporate code of conduct

Answer 21

A corporate code of conduct: is a set of ethical standards for managers and employees to abide by.

Question 22

Global economy

Answer 22

The global economy: is the world economy and refers to the economic activity going on in the world. It includes the flow of all trade, finance, technology, labour and investment. Consequently, it is the total economic activity within and between countries.

Question 23

Global manager

Answer 23

A global manager: pursues organisational objectives in international settings and, therefore, is required to conduct business in numerous countries with different cultures.

Question 24

Merger

Answer 24

A merger: is a combination of two companies to form a new company.

Question 25

Acquisitions

Answer 25

An acquisition: is the purchase of one company by another with no new company being formed.

Question 26

Privatisation

Answer 26

Privatisation: is the process of transferring the ownership of a government business to the private sector.

Question 27

Leadership

Answer 27

While there is no one precise definition, leadership: is the process of positively influencing and encouraging individuals to set and achieve objectives.

Question 28

Transformational change

Answer 28

Transformational change: often results in a complete restructure throughout the whole organisation.

Question 29

Incremental change

Answer 29

Incremental change: results in minor changes, usually involving only a few employees.

Question 30

Structural change

Answer 30

Structural change: refers to changes in the organisation’s structure — that is, the organisation chart.

Question 31

Outsourcing

Answer 31

Outsourcing: is the contracting of some organisational operations to outside suppliers.

Question 32

Teamwork

Answer 32

Teamwork: involves people who interact regularly and coordinate their work towards a common goal.

Question 33

Flexible manufacturing

Answer 33

Flexible manufacturing: is production by computer controlled machines that can adapt to various versions of the same operation.

Question 34

Change

Answer 34

Change: is any alteration in the internal or external environments.

Question 35

Establish a sense of necessity

Answer 35

1. Examine the current market opportunities and threats and analyse the organisation’s competitive position. This will highlight impending crises or potential opportunities.

Question 36

Form a powerful coalition

Answer 36

2. Establish a team of people to act as facilitators. They should have the relevant authority, recognition and respect within the organisation.

Question 37

Create a vision for change

Answer 37

3. Provide employees with a clear, shared sense of direction that will allow them to achieve a common objective. Without a vision, there can be no cooperation and commitment, which makes adopting change almost impossible.

Question 38

Communicate the vision

Answer 38

4. Share the vision with people who will be affected by the change. Use a wide variety of communication channels to make sure the message is transmitted to as great an audience as possible.

Question 39

Remove obstacles

Answer 39

5. Recognise that personal involvement through participation tends to defuse both rational and irrational fears about change. People who have the opportunity to be actively involved in the change process generally develop a sense of ownership.

Question 40

Create short term wins

Answer 40

6. Recognise that most employees want to feel that their contributions have been worth the effort and are recognised and appreciated. Recognition and reward should be given throughout the change process to encourage further risk taking and reinforce the positive aspects of embracing change.

Question 41

Build on change

Answer 41

7. As the change process proceeds, assemble the benefits attained into the organisation’s operating procedures and systems. Modify existing policies and procedures that no longer match the changed systems. Once this is accomplished, the new structure becomes a foundation to build on.

Question 42

Anchor the change in corporate culture

Answer 42

8. As the final stage in the change process, make a clear statement to show the connections between the new procedures and the success of the organisation. This closes the loop of the change process and provides a positive experience from which further changes can be initiated.

Question 43

Establish a sense of necessity

Answer 43

1. Examine the current market opportunities and threats and analyse the organisation’s competitive position. This will highlight impending crises or potential opportunities.

Question 44

Form a powerful coalition

Answer 44

2. Establish a team of people to act as facilitators. They should have the relevant authority, recognition and respect within the organisation.

Question 45

Create a vision for change

Answer 45

3. Provide employees with a clear, shared sense of direction that will allow them to achieve a common objective. Without a vision, there can be no cooperation and commitment, which makes adopting change almost impossible.

Question 46

Communicate the vision

Answer 46

4. Share the vision with people who will be affected by the change. Use a wide variety of communication channels to make sure the message is transmitted to as great an audience as possible.

Question 47

Remove obstacles

Answer 47

5. Recognise that personal involvement through participation tends to defuse both rational and irrational fears about change. People who have the opportunity to be actively involved in the change process generally develop a sense of ownership.

Question 48

Create short term wins

Answer 48

6. Recognise that most employees want to feel that their contributions have been worth the effort and are recognised and appreciated. Recognition and reward should be given throughout the change process to encourage further risk taking and reinforce the positive aspects of embracing change.

Question 49

Build on change

Answer 49

7. As the change process proceeds, assemble the benefits attained into the organisation’s operating procedures and systems. Modify existing policies and procedures that no longer match the changed systems. Once this is accomplished, the new structure becomes a foundation to build on.

Question 50

Anchor the change in corporate culture

Answer 50

8. As the final stage in the change process, make a clear statement to show the connections between the new procedures and the success of the organisation. This closes the loop of the change process and provides a positive experience from which further changes can be initiated.

Question 51

Dynamic

Answer 51

The environments of LSO’s contains factors that continually change in the internal and external environment