Managing Change

Question 1

Fear for job security is a barrier for change because…

Answer 1

Older employees may feel pressured by younger employees having more energy and different approach to working

Question 2

Barriers to change are…x7

Answer 2

Resource limitations because even though the business want to change it may not have the capital to do so and loans may not be an option due to varying interest rates which create cash flow problems.
Fear for job security because older employees may feel pressured by younger employees having more energy and different approach to working
Fear of uncertainty because employees will feel threatened and businesses are weary about changing in case it backfires
Resistance because employees may dislike change and a business needs to ensure employees are behind the change as they drive it daily
Concern about ability because employees may not be able to keep pace or won’t be able to work new machinery which will make employees concerned and believe it might result in job losses.
Poor communication because employees will not know what’s going on, which means they will fear the unknown.
Not wanting investors because businesses fear that investors will gain control which may result in them wanting to take the business in a different direction

Question 3

Resource limitations is a barrier to change because…

Answer 3

Even though the business want to change it may not have the capital to do so and loans may not be an option due to varying interest rates which create cash flow problems.

Question 4

Fear of uncertainty is a barrier for change because…

Answer 4

Employees will feel threatened and businesses are weary about changing in case it backfires

Question 5

Resistance is a barrier for change because…

Answer 5

Employees may dislike change and a business needs to ensure employees are behind the change as they drive it daily

Question 6

Concern about ability is a barrier to change because…

Answer 6

Employees may not be able to keep pace or won’t be able to work new machinery which will make employees concerned and believe it might result in job losses.

Question 7

Poor communication between management and employees is a barrier to change because…

Answer 7

Employees will not know what’s going on, which means they will fear the unknown.

Question 8

Not wanting investors is a barrier to change because…

Answer 8

Businesses fear that investors will gain control which may result in them wanting to take the business in a different direction

Question 9

The methods of managing change are… x5

Answer 9

Top down
Piecemeal
Action-centred
Negotiated
Participative

Question 10

Advantages to action-centred are… x3

Answer 10

Possible solutions are tested on a small scale before implementing permanent change to reduce risk
Explores many different options and therefore contingency strategies are often formed
Allows employees to have input and pilot aspects of change which leads to better decisions being made

Question 11

Piecemeal is…

Answer 11

Change that’s brought in gradually through a series of small alterations

Question 12

Advantages of piecemeal is… x3

Answer 12

Employees become accustom to the change as its gradually introduced which can build confidence in the future
Gradual change is easier to manage and control which reduces risk
Smaller changes are less likely to result in employee resistance

Question 13

Disadvantages of piecemeal are… x3

Answer 13

Small components of change may conflict each other which can cause confusion among employees
Decentralised changes may not be fairly rolled out across the firm which will upset staff in different departments
Sense of overall direction is lost as change is ‘bitty’

Question 14

Top down is when…

Answer 14

Those at the top of the organisation make decisions about change and implement them

Question 15

Advantages to top down are… x3

Answer 15

Top management have a holistic overview so change can be made in line with the businesses objectives
If change is inevitable, it’s an efficient method of implementation, especially if the drive is an external factor
Works best in crisis as decision making time is short which is useful if the survival of the business is at risk.

Question 16

Disadvantages of top down are… x3

Answer 16

Staff resistance can be high as they feel they have been overlooked and undervalued
Employees working on the ground have knowledge and experience but this method doesn’t take that into account
Low motivation which results in high staff turnover and absenteeism

Question 17

Participative means that…

Answer 17

Employees are invited to contribute to decisions about change and the change incorporates their ideas

Question 18

Negotiated means that…

Answer 18

Changes are a result of a bargaining process between managers and employees often represented by trade union representatives

Question 19

Advantages to P+N are… x3

Answer 19

Reduces staff turnover and improves morale
More likely to be successful as everyone has been involved and staff knowledge will make change more effective and competitive
Fosters trust between managers and employees improving motivation and productivity

Question 20

Disadvantages to P+N are… x3

Answer 20

Both time costing due to lengthy discussions through focus groups and quality circles
Trust can be damaged if staff abuse it or managers retract empowerment
Not effective in urgent scenarios as too many people need to be consulted who have differing views

Question 21

Action-centred means that…

Answer 21

Change is made by running through a list of potential solutions to a problem until the best one is identified

Question 22

Disadvantages to action-centred are… x3

Answer 22

Method doesn’t work when change is driven by external factors such as change in government legislation as that change needs to happen immediately
Piloting ideas can be a lengthy and expensive process
Often part of a continuous implement so may not be suitable for larger changes