Comstraints On Organisational Change

Question 1

The cost of implementation

Answer 1

Costs can restrict a business from changing
Shareholders may not see a need for change
Fixed costs - increase in salaries
Variable costs - increase in rewards
Sunk costs - training employees (you can’t get this money back)

Question 2

Availability of finance

Answer 2

Change will require finance which may be hard to source
Banks may be unwilling to lend a business money
Difficult to establish link between change and success
The rest urns are also difficult to justify

Question 3

Time required to implement change

Answer 3

ADKAR suggests that this time is necessary
High labour turnover may undermine the success of change
Short term objectives must support overall strategy for change

Question 4

Marketing

Answer 4

Change will affect how the product is perceived
Bad social media and reviews may undermine the moral of employees
The change may cause an aggressive response from competitors