Managing Change Flashcards
What are the causes of change in a business?
- changes in organisational size
- poor business performance
- new ownership
- transformational leadership
- the market and other external factors (pestle)
What will issues will a business face due to a change in organisations size?
- maintains company culture
- motivating staff during the expansion
- increased labour costs
- training new stsff
What will issues will a business face due to poor business performance?
- need of new objectives and direction
- need new strategies to compete
- need to look at what’s needed to improve performance (redundancy)
What will issues will a business face due to new ownership?
- significant duplicates of roles
- clash of cultures
- issue of communication between the two businesses
What will issues will a business face due to transformational leadership?
- business will need to reinvent itself to achieve competitive advantage
- new business culture
What will issues will a business face due to the market and external factors?
- need of increased RnD
- may need to change the corporate objectives
What are the effects of change?
- Competitiveness
- Productivity
- Financial performance
- Stakeholder
What is scenario planning?
A process of anticipating possible changes in a business’s situation and devising ways of dealing with them
What are the key risks a business may have to identify?
- Natural disasters
- IT system failure
- Loss of key staff
Degrees of risk mitigation?
- Risk acceptance
- Risk avoidance
- Risk limitation
- Risk transference
What is risk acceptance?
when a business acknowledges that the potential loss from a risk is not great enough to warrant spending money to avoid it
What is risk avoidance?
The em limitation of hazards, activities and exposures that can negatively affect an organisations assets
What is risk limitation?
Risks which are identifiable but are also manageable such as whaling what is said to reduce the possibility of being sued
What is risk transference?
Moving the risk onto others through some sort of insurance
What are the ways a business can plan for risk mitigation?
- Business continuity
- Succession planning