Component 3 - Change Flashcards
Explain : The causes of change in business including
- Market changes
- Consumer tastes
- Legislation
Market changes - Such as, demographic change (ageing population), new entrants, or regulatory environment.
Consumer Tastes - Changes in preferences can drive changes in the products and services that businesses offer.
Legislation - Such as, New regulations, Tax laws, or Labour laws.
Explain: The difference between internal and external causes of change
Internal - Those that originate from within the business itself, including;
1 - Organisational Structure
2 - Business processes
3 - Strategy
External - Those that are initiated by external factors outside of the business’s control, including;
1 - Market Changes
2 - Economic conditions,
3 - Regulatory Environment
The key difference is that Internal causes are initiated by the business itself, while external causes are initiated by external factors outside of control.
Explain : The effects of change on business including the need to
1 - Change production methods
2 - need to develop new products
3 - need to meet legal requirements
Change in Production Methods - Changes in market demand can lead to a need to change production methods, Requiring the business to invest in new equipment.
Need to develop new products - Changes in demand may require a business to develop new products or services to stay relevant and meet customer needs.
Need to Meet legal requirements - Changes in legislation or regulation can force a business to make changes to its operations or products.
Explain : Two Reasons why change should be managed effectively.
Improves the Likelihood of Success - Ensures the change is well-planned and executed.
Enhances organizational agility - Organisational Agility means Improvement and innovation is continuous so adaptation can be swifter and more efficient.
Explain : The Four Different approaches to managing change according to J. Storey
The Prescriptive Approach
The emergent Approach
The contingency approach
The normative Re-Educative approach
Explain : The Prescriptive approach to managing change ( J. Storey’s four different approaches)
The Prescriptive Approach - Change can be managed through a linear and predictable process, Involving planning, implementation, and evaluation.
It focuses on project management and risk assessment.
This approach is best suited for situations where the change is well-defined and outcomes are clear.
Explain : The Emergent approach to managing change ( J. Storey’s four different approaches)
The emergent Approach - Change is a complex and unpredictable process that emerges from the interactions of various stakeholders within the organisation.
It emphasizes the importance of communication, collaboration, and learning.
This approach is best suited for situations where the change is unclear, and the organization needs to be flexible and adaptive.
Explain : The Contingency approach to managing change ( J. Storey’s four different approaches)
The Contingency Approach - The best way to manage change depends on the specific context in which the change is taking place.
It emphasizes the need to tailor the change management approach to the specific situation and to be responsive to the unique challenges and opportunities that arise.
This approach is best suited for situations where the change is complex, and the organization needs to be flexible and adaptable.
Explain : The Normative approach to managing change ( J. Storey’s four different approaches)
The Normative Re-Educative approach - This approach assumes that change requires a transformation in the attitudes, values, and beliefs of the individuals within the organization.
It emphasizes the importance of leadership, culture, and communication.
This approach is best suited for situations where the change is cultural or requires a significant shift in the mindset of the organization.
Explain : Why there may be resistance to Change
Change can be difficult to implement in an organization due to various reasons, Such as ;
- Fear of the unknown
- Lack of trust in management
- Fear of job loss
- Changes in job role
Explain : Ways of removing resistance to change, Lewin’s 3 Step Process
Unfreezing stage - The organisation creates awareness about the need for change and the reasons behind it.
Changing stage - The organisation implements the change and provides support and resources to employees.
Refreezing stage, The organisation reinforces the change and makes it a part of the new normal.
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Explain : Ways of removing resistance to change, Changes in Organisational structure
Changes in Organizational Culture - Creating a more innovative and adaptive culture by promoting sincerity, transparency, and recognizing employee contributions, employees are less likely to be resistant to change.
Explain : Ways of removing resistance to change,
The Role of Leadership
The Role of Leadership - Good Leadership can reduce resistance from employees by communicating the vision and objectives of the change, and supporting employee. Leaders can also involve employees , by soliciting their input and feedback.
Explain : How the Management of change can be evaluated
Performance Metrics, These metrics can include;
- Financial performance
- Customer satisfaction
- Employee productivity
- Operational efficiency.
By comparing these metrics before and after the change, organizations can determine whether the change has had a positive or negative impact on the organization.
Explain : How the Management of change can be evaluated - With Cost-Benefit Analysis
Cost-Benefit Analysis - This analysis involves comparing the costs of the change management process to the benefits of the change.
By conducting a cost-benefit analysis, organizations can determine whether the change management process was effective in achieving the desired outcomes
