Chapter Seven – The Management of Change Flashcards
Organisational change
Organisational change: is the adoption of a new idea or behaviour by an organisation.
Proactive
To be proactive: is to initiate change rather than simply to react to events.
Reactive
To be reactive: is to wait for a change to occur and then respond to it.
Source of change
Source of change refers to where the change comes from, which includes changes from both the internal and external (operating) environments.
Recession
A recession: is a contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow rate of economic growth.
Emissions trading scheme
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.
Force field analysis
Force-field analysis: outlines the process of determining which forces drive and which resist a proposed change.
Driving forces
Driving forces: are those forces that support the change.
Restraining forces
Restraining forces: are those forces that work against the change.
Organisational inertia
Organisational inertia: refers to an unenthusiastic response from management to proposed change.
Change management process
The change management process: is the sequence of steps that a manager would follow for the successful implementation and adoption of change.
Facilitators
A facilitator: is someone who helps people achieve an objective by providing unobtrusive assistance.
Change agent
A change agent: is a person or group of people who act as catalysts, assuming responsibility for managing the change process.
Manipulation
Manipulation: is the skilful or devious exertion of influence over someone to get them to do what you want.
Cooptation
Cooptation: involves the selection of an influential person among the potential resistors to be involved in the development and implementation of the change process.
Corporate social responsibility
Corporate social responsibility: involves managing organisational processes in order to produce an overall positive impact on the community.
Triple bottom line
Triple bottom line: refers to the social, economic and environmental performance of an organisation.
Ecological sustainability
Ecological sustainability: occurs when economic growth meets the needs of the present population without endangering the ability of future generations to meet their needs.
Sustainability report
A sustainability report: is a comprehensive report of what a business has done, and is doing, with regard to social issues that affect it.
Business ethics
Business ethics: refers to the application of moral standards to organisational behaviour.
Corporate code of conduct
A corporate code of conduct: is a set of ethical standards for managers and employees to abide by.
Global economy
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.
Global manager
A global manager: pursues organisational objectives in international settings and, therefore, is required to conduct business in numerous countries with different cultures.
Merger
A merger: is a combination of two companies to form a new company.
Acquisitions
An acquisition: is the purchase of one company by another with no new company being formed.
Privatisation
Privatisation: is the process of transferring the ownership of a government business to the private sector.
Leadership
While there is no one precise definition, leadership: is the process of positively influencing and encouraging individuals to set and achieve objectives.
Transformational change
Transformational change: often results in a complete restructure throughout the whole organisation.
Incremental change
Incremental change: results in minor changes, usually involving only a few employees.
Structural change
Structural change: refers to changes in the organisation’s structure — that is, the organisation chart.
Outsourcing
Outsourcing: is the contracting of some organisational operations to outside suppliers.
Teamwork
Teamwork: involves people who interact regularly and coordinate their work towards a common goal.
Flexible manufacturing
Flexible manufacturing: is production by computer controlled machines that can adapt to various versions of the same operation.
Change
Change: is any alteration in the internal or external environments.
Establish a sense of necessity
- Examine the current market opportunities and threats and analyse the organisation’s competitive position. This will highlight impending crises or potential opportunities.
Form a powerful coalition
- Establish a team of people to act as facilitators. They should have the relevant authority, recognition and respect within the organisation.
Create a vision for change
- 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.
Communicate the vision
- 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.
Remove obstacles
- 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.
Create short term wins
- 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.
Build on change
- 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.
Anchor the change in corporate culture
- 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.
Establish a sense of necessity
- Examine the current market opportunities and threats and analyse the organisation’s competitive position. This will highlight impending crises or potential opportunities.
Form a powerful coalition
- Establish a team of people to act as facilitators. They should have the relevant authority, recognition and respect within the organisation.
Create a vision for change
- 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.
Communicate the vision
- 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.
Remove obstacles
- 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.
Create short term wins
- 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.
Build on change
- 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.
Anchor the change in corporate culture
- 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.
Dynamic
The environments of LSO’s contains factors that continually change in the internal and external environment
