Management of change Flashcards
What are some common barriers of change within an organisation 4
Employee fear- it may leave to job losses, due to reasons such as improvements of technology as employees feel like they can’t keep up with the pace
Resource limitations- don’t have the necessary capital to influence the change. Brining in new inversions may not be ideal a they may want to take the business in a different direction and loans may restrict the cash flow
Uncertainty- fear of the unknown, many businesses like to stay in a comfortable zone and be weary to make decisions
Resistance - need to have enough employees behind the change otherwise it wont be successful as they can help push the idea
Identify the approaches of managing change
Top down
Action centred
Participative
Negotiated
Piecemeal
What is the top down method of change 3
- change is implemented quickly
Usually used in big organisations in one off emergencies eg change in legislation - autocratic (managers decide what to do
-little to no attention of idea is given to the employees
-
What is the action centred method of change 4
- pilot based solution
-there’d a lot of solutions to the problem that need changed
- pilot one solution in a targeted Small area, and depending on the success, the idea is either implemented or not
- this method is easy to make changes
Whats the participative method of change
- similar to negotiated
Full input on employees through discussion which reduces resistance
Feedback of information is used for problem solving and so the people who participate will be committed to implementing change
What the negotiated method of change 2
-opposite of top down
Change is implemented through a bargaining process with employees, employers and stakeholders
Trade unions may be involved to ensure all voices of the employees are heard
Whats the piece meal approach to change 3
- small incremental changes to b made over time
Build confidence within the business as taking small steps seem less risky
If the change isn’t working out then it can be reversed before the whole change is completed
Whats the benefit of top-down 3
- top level management has good experience and a has a holistic overview. so can make change inline with business objectives and strategy mission
-works best in a crisis as decision making is short and the survival of the business may be at risk . this is because it is swift with little delays
-if change is inevitable then this is an efficient method of implementation- this is especially true when the main change is an external factor , such as economic changing to the government
Whats the disadvantages to the top down approach of change 3
- staff resistance could increase- feel overlooked and undervalued which can increase staff turnover
- employees on lower level of the hierarchy have skills, knowledge and experience but these views aren’t taken into account, may not get the best decision as only top level managers deals with this change
-it can create motivation to be low and a culture if low morale which may resistance the change and a low staff retention rate
Whats the advantages of negotiated and participated 3
- change is more likely to be successful as everyone is involved, and come out with the best delicious of change as everyone has different ideas
- forsters trust between employees and management, reduces staff resistance and improve moral
-creates an effective and competitive change, allows many skills, knowledge and experience to contribute
Whats the disadvantages of negotiated and participative. Method of change 3
- these methods are time consuming as they involve lengthy discussions through the ice of quality circles, which also may be costly to take staff out of their work
Not effective in situation of urgency or where there is an unnegotiable outcome, this is due to too many people needing consulted and they all may have different views
- trust can be easily damaged if management retract power, made result with trade unions
Whats the benefit of the change approach actioned centred 2
- allows businesses to try out possible solutions on a small scale limited time before making a permanent change, less resistance as intimadating
- all employees have different options from having an input which leads to better decisions and contingency strategies are formed
Whats the disadvantage of being action centred 3
Doesn’t work in urgency, taking to much of a lengthy time due to too many people needing consulted and they all may have different views
-piloting ideas can be a lengthy and expensive process, if you retract the change because its not working
- doesn’t work if driven by and external factor- its part of a continues improvement an not suitable for large changes
What’s the advantages of the piece meal approach for change 3
- it will create certainty for the business, employees will come accustomed to the change which will build confidence for the business
- gradual changes are less likely to result in staff resistance which makes people more comfortable do do gradual change due to it reducing risk
What are the disadvantages for the piece meal approach for change 2
- a sense of overall change may be loss ad the smaller changes may conflict with each other
- some staff may be upset which can cause demotivating- decentralised changes may not be fairly rolled out across the firm