Factors Resisting Change Flashcards
What is the definition of organisational change?
Organisations operate in dynamic markets meaning that they constanly have to adapt to the needs of these markets.
What are the four types of change?
Cultural, strategic, procedural and structural.
What are four causes and pressures of change?
- To meet objectives - gain market share and increase shareholder’s worth.
- Respond to external forces - technological advancements, political and legal changes, consumer demand and economic change.
- Respond to internal forces - employee pressures, owner’s power and experience curve.
- Gain competitive advantage - economies of scale and cope and market development.
What is the definition of change?
Change creates opportunities and threats. It shouldn’t be seen as a bad thing, but it must be managed carefully to ensure a business maintains or increases its competitiveness as a result of change.
What are Kotter and Schlesinger’s 4 reasons for resistance to change?
1) Self-interest.
2) Misunderstanding and lack of trust.
3) Low tolerance for change .
4) Different assessment of the need for change.
What does self-interest mean?
Stakeholders fear that change will result in them being personally worse off and therefore want to protect themselves from it.
What does misunderstanding and lack of trust mean?
Stakeholders believe the motives for change are wrong and therefore lose trust in decision-makers.
What does low tolerance for change mean?
Stakeholders are happy with things the way they are and want to keep it the way it is.
What does different assessment of the need for change mean?
Stakeholders believe that the proposed change isn’t the correct course of action and that they could suggest a better solution.
What is cultural organisational change?
Cultural organisational change involves a transformation of thinking within a business. It requires a change in the values and standards shared.
How can cultural organisational change happen successfully?
Leadership will have to create a vision that can be followed by all employees.
Management will have to put a plan in place that allows for job roles to be designated and the use of monitoring and reviewing to see whether the change has been successful.
Positive and negative rewards may have to be used to persuade employees to change.
What is strategic organisational change?
Strategic organisational change requires the business to ask:
- Where are we now? (An audit of where the business currently stands).
- Where do we want to be? (The medium to long-term goals of the business).
- How will we get there? (The strategy the business will undertake).
What is Henry Mintzberg’s strategy for strategic organisational change?
Henry Mintzberg suggested the strategy might be planned with a sequence of steps taken to change the behaviour of the organisation and its employees, or emergent with strategy developing over time in the absence of specific goals.
What is structural organisational change?
Structural organisational change involves redesigning systems within the business. This may occur due to both internal and external factors.
What will structural organisational change impact?
- Levels of hierarchy.
- Chains of command.
- Admin systems.
- Management systems.
Why will major structural change occur?
Mergers and takeovers, changes to leadership, ect.
What is procedural organisational change?
Procedural organisational change involves reengineering processes to increase the efficiency within the organisation.
What will procedural organisational change result in?
- Operations should run more smoothly.
- Increased productivity.
- Increased quality.
- Better reputation - more sales - increased profit.
