key factors in change Flashcards
Define the term ‘change management’.
Change management means planning and implementation of change in a way that is mindful of those who will be affected by the changes. If a business attempts to force changes on the workforce – problems will arise. Changes must be; realistic, achievable and measureable (RAM).
Explain the two types of change.
Planned change: Refers to change which is planned by the top management of a business This could be: Board of Directors The Owners Senior leadership team
Emergent change:
This is change that happens at any level in the organisation and is the result of an event or need
E.g. Computer back-up system has failed so a new IT system must be installed which will require training for all staff
Explain organisational culture as a key factor in change.
People are social beings who will adhere to cultural norms and values
Successful change is based on redefining those existing norms and values and getting commitment from workers towards new ones
E.g. introducing a uniform
Explain the size of an organisation as a key factor in change.
As a business grows there will be inevitable changes within the organisation
For example as a business grows from ltd to plc so that they can raise more finance by floating share on the stock market this will mean huge changes for the business
Explain time and speed of change as a key factor in change.
One of the main problems with change is to align expectations with reality
Changes that happen too quickly will mean that employees may experience stress
“I didn’t know it would happen so fast”
“I can’t keep up with the all the changes”
“ I haven’t had time to adjust to all the improvements the business has made”
Explain continuous improvement and change.
A business may decide to become a kaizen organisation – adopting the ideal of continuous improvement
This will mean small incremental improvements possibly every day
The management also need a commitment to kaizen and make sure they are using good quality data to make decisions from
What are Dr Kotter’s 8 steps to effective change and business management?
- Create a sense of urgency
- Build a guiding coalition
- Form a strategic vision and initiatives
- Enlist a volunteer army
- Enable action by removing barriers
- Generate short-term wins
- Sustain acceleration
- Institute cange
Explain how change impacted Cadbury.
Businesses operate in dynamic markets and must deal with change – positive and negative on a daily basis
Some change is good for a business, keeps it fresh and moving forwards, e.g. Cadbury no longer produces cocoa essence but has developed new and delicious alternatives
A business will need to adapt to internal changes e.g. the Kraft takeover of Cadbury
A business will need to adapt to external changes e.g. due to a change in tax or interest rates or a recession
Define resistance to change.
behaviour which is intended to protect an individual from the affects real or imagined of change
Where employees try to block the intended change is called resistance to change
Explain resistance to change from the employee’s perspective.
Resistance by employees may just be a defence mechanism caused by frustration and anxiety about the changes
Many employees fear that they will be unable to acquire the new skills (older staff on IT equipment) that will be required after the change
Explain managing resistance to change.
Resistance to change in a business is to be expected
Resistance can be managed by working with employees, listening to their concerns and trying to understand them
Employees worry about; loss of status or power as a result of the change, fear of personal failure, resentment, or perception that change is not necessary
What are some ways to reduce resistance to change?
The business will need to:
Deliver training programs
Focus on the positive aspects
Design flexibility into the change – this will give employees time to adapt
Involve employees effected in the planning of change, adding their ideas
