PPT 1- Change Management Flashcards
What is change?
the process causing a function of practice in business to become different.
An opportunity for a business to evolve and grow.
The ability of a business to respond to change will increasingly determine its competitiveness and survival.
Refers to the continual alteration of strategies, processes or structure in response to internal pressures and external forces such as:
Change in consumer taste
Change in markets or products sold
Change in how employees perform their job
Change in production processes due to automation or emerging technologies
What is change management?
a planned and structured approach that moves a business form its current state to a desired future state.
Requires a structed approach that includes: planning, implementing, controlling and reviewing processes in a business
The goal of any change is to improve performance and remain competitive.
Change can happen because of unexpected circumstances or intentional actions to facilitate growth.
Internal Environmental Factor- Owners and Managers
Influence the direction and development of a business, implement policies and procedures, Formulate strategies which affect the running and profit-making ability of a business, Identify and influence the need for change and must have skills to lead a business through a required change.
Internal Environmental Factor- Employees
most important resource, driving force that operates the business, can influence success through productivity, efficiency and commitment and can exert pressures on a business for change in the areas of working conditions, skill requirements and internal processes.
Internal Environmental Factor- Organisational Culture
System of shared values and beliefs that contribute to the unique environment, how organisations do things and how the people work together, can impact a business and influence the need for change for example if there is a negative impact on effectiveness and efficiency management must intervene and decide how it needs to be changed.
Internal Environmental Factor- Organisational Structure
can be traditional structure which is rigid and hierarchical, have multiple levels of management, could be centralised that delegates from the top down, with a rapid pace of change response needs to be swift, Flattening traditional structures reduces the levels of management providing greater opportunities to respond to change quickly.
External Operating Environmental Factor- Customers
lifeblood of the business and crucial for survival, businesses MUST understand the changing needs of customers and respond swiftly by adapting the way it operates, the rapid evolution of technology ensures customers are better informed and have more options available, businesses need to be customer-focused and customer-centric to stay in tune with customer expectations, focus should be on customer relationship management to collect data on customer behaviors in the marketplace.
External Operating Environmental Factor- Competitors
businesses are influenced by the actions of their competitors, they must respond and change their operations to match or stay ahead of the competition, actions of a competitor could implement changes such as Being the lowest cost supplier in an industry, Offering innovating products or services, Finding a niche in the market, Using different approaches.
External Operating Environmental Factor- Suppliers
Business are reliant on suppliers to provide the necessary resources for it to function, Supply of a poor-quality product may impact the reputation of a business, Slow supply of products impacts the businesses’ ability to meet consumer demand, A business requires suppliers that are reliable and competitively priced to ensure the success of its operation.
External Macro Environmental Factors- Socio-Cultural
Changes such as social attitudes, values and lifestyles, If businesses do not respond to these changes, there may be a detrimental effect on its success, The environment determines which goods and services will sell, A business that is able to respond to changes in a timely manner is more likely to achieve success.
External Macro Environmental Factors- technological
new technologies allow operations to become faster and smarter, Changes in technologies can have a positive impact on a business providing opportunities to: Create new products and services, Improve the quality and range of products and services, Increase efficiency, Improve productivity, Reduce operating costs, Transmit communication rapidly
External Macro Environmental Factor- Economic
Change occurs continuously in both the domestic and international arena, impacting the business environment, can be fluctuation in the economy, Economic changes that influence a business include: Inflation, Interest rates, Industrial relations, Government expenditure, International trade negotiations.
External Macro Environmental Factor- Environmental
Businesses need to consider implementing environmentally sustainable practices, Have a responsibility to support the sustainability of a green planet and respond to consumer demands for environmentally friendly products, An environmental issue leading change in the Australian retail industry is the use of plastic bags.
External Macro Environmental Factor- Political
Australian government regulates business operations and can force change on businesses for example a new government may require a manufacturer to install pollution control devices, A change in government can lead to uncertainty and changes in regulations for industry.
External Macro Environmental Factor- Legal
Changes to legislation, regulations and contracts can affect business operations
