Managing Change Flashcards
What are the reasons for change?
Advances in technology-
competitor- Launch of new and improved goods and services.
Changing lifestyles- create the demand for new and innovative products.
As the pace of life increased the desire fortechnology has increased such as
microwaves and personal communication devices.
Shorter product life cycles- requires greater innovation and new product development. Consumers have also shown an increased
preference for ethically produced goods and services. (fair trade)
Job losses business restructuring and diversification have meant that companies
have undergone huge organisational change.
External changes such as interest rates, taxation, oil prices and market deregulation only serve to make markets more unpredictable and dynamic.
Employees - are more educated thus want more varied and challenging
work. Many employees are full time parents and want greater flexibility in the
workplace such as teleworking. Employees want varied financial and non- financial rewards.
How can laws change a business?
New national and EU laws can change the
way businesses operate, e.g. environmental
laws and consumer protection regulations.
How can consumers change a business?
Changing lifestyles- create the demand for new and innovative products.
As the pace of life increased the desire fortechnology has increased such as
microwaves and personal communication devices.
Shorter product life cycles- requires greater innovation and new product development. Consumers have also shown an increased preference for ethically produced goods and services. (fair trade)
How can employees change a business?
Employees - are more educated thus want more varied and challenging
work. Many employees are full time parents and want greater flexibility in the
workplace such as teleworking. Employees want varied financial and non- financial rewards.
How can the economic environment change a business?
External changes such as interest rates,
taxation, oil prices and market deregulation
only serve to make markets more
unpredictable and dynamic.
The global credit crunch and a domestic
banking crisis were major factors in the
decline of the property market in Ireland.
Job losses business restructuring and
diversification have meant that companies
have undergone huge organisational change.
How can competitors change a business?
Launch of new and improved goods and
services.
Methods used by competitors to reduce
costs, eg. Automated helpline.
Growth of competitors through mergers and
acquisitions.
How can technology change a business?
Marketing- the manger can now use the internet to market their products worldwide. This reduces the cost of printing and stationary. They can also conduct market research online
E-Commerce- the manger can now use the internet to sell products worldwide without without the hassle of setting up abroad.
Communication- teleworking, videoconferencing, emailing, internet etc. Have all improved communication sin the workplace and allowed for people to work from all areas of the world while still working for the business.
How does tech changes role
of manager?
Marketing – The manager can now use
the internet to market their products
worldwide. This reduces the cost of
printing and stationary. They can also
conduct market research online.
Decision Making- Managers can use
information technology to help them
make better and faster decisions. They
can download information from the
internet in seconds.
Production – managers are now using
computer programmes such as CAD to design
their products. They can also use CAM for
mass production of products on a 24 hour
basis. EDI will also allow firms to monitor
stock levels. It also gave entrepreneurs the
opportunity to develop new products e.g.
iPhone accessories.
Employee motivation/retention- The
internet allows employees to work from home
which is known as teleworking. This reduces
time and money spent commuting and
therefore is an effective way to retain
employees
Redundancies – The managers span of
control has been reduced as machines
replace employees. E.g.. Tesco managers can
spend more time running other aspects of
the business as several employees have been
replaced with self check outs.
How does new technology impact employees?
Changing nature of the jobs: New
technology has changed the way which
people do their jobs.
New types of jobs: New jobs in
Information Technology have been
created.
Redundancies: Technology has replaced
employees and this has led to
redundancies.
Teleworking: This enables some
employees to work from home with a
computer that is linked to their office.
This suits employees with families.
What is the impact of tech on business opportunities?
New products/services- advances in
technology have led the way to a range
of new products. E.g.. Voice recognition
software in Alexa can open up new
markets.
E-commerce- the business uses
technology such as the firms website to
promote their products and allows
customers to purchase. E.g.. Airbnb an
online accommodation booking service.
Improved decision making- technology
gives the business a large amount of
information, which allows the business to
make more informed decisions.
Faster production- the business can
produce and deliver products to customers
quicker.
What is the impact of tech on business costs?
Increased Business costs
1.Large Capital Costs
Technology such as CAD and CAM is a very large capital cost for a business.
Associated costs include installation, updating and maintenance.
- Employee Training
Employees must receive training to learn how to use new technology.
The business may need to hire external trainers, which increases business costs.
Why may employees resist change?
Loss of job security- they worry that these changes might results in job losses as new tech might replace their job or the business might move to another country to reduce costs.
No obvious reward or benefit- without a clear reward, managers and employees might lack motivation. It is important to inform them how the change could improve productivity and job satisfaction or increase profits.
Fear of the unknown- if change is forced upon employees or announced suddenly it can lead to fear. Staff may feel negatively about it as they are unsure of what is to come, which can lead to worry and frustration in the work force. Ideally, the business should involve employees in the process of change and let them know in advance of change.
Laziness- some employees will resist change as it will require them to make more of an effort to learn new processes or systems in the workplace
fear of failure- employees might fear they do not have the necessary training, skills or knowledge to adapt to challenges, and might feel unable to respond to the demands of a change, resulting in apprehension and resistance.
Inertia- employees who lack ambition or have become very settled in their role in the business may feel that adapting to change would be too difficult for them and they would prefer to maintain the status quo.
What are the strategies for managing chnage?
Communication- the staff must be informed
of the change and the reasons for change.
Managers must be open and honest.
Lead by example – The manager must show
that they are willing to put in extra effort to
deal with change.
Consultation – people must be consulted
about plans and asked for their views and
suggestions.
Training – employees should be trained in all
skills needed to adapt to the change.
Negotiation – This must take place with
workers so that any new changes take place
without an effect on industrial relations.
What is TQM?
Total Quality Management
This is a style of management which tries to create a culture of quality
throughout all parts of an organisation. It is designed to ensure 100%
perfection and 100% customer service.
What are the basic principles of TQM?
Focus on the customer – conduct market
research to see what the customer wants.
Empowerment- employees use their skills
and knowledge and make changes as they
see fit to make the perfect product.
Teamwork-puts employees into teams to do
their work, employees will work harder to
not let team members down.
Continuous improvement- business strives
for zero defects, each product is better than
the first.
