PPT 5- Drivers of Change

Question 1

Corporate Culture

Answer 1

The shared values, attitudes and beliefs that characterise members of an organisation and guide its practice
Changing corporate culture can be extremely difficult – it requires clear strategic vision, effective leadership and management and clear communication
Driving corporate culture change requires a business to consider the following actions:
1. Assess the current culture of the business
Know what employees value – this will provide information about how to implement change
2. Revisit the strategic vision of the business
The strategic vision is closely connected with the corporate culture
3. Communicate again and again
Send a clear and structured message to employees about the change frequently
4. Lead and manage
Management need to harness the corporate culture of a business to build momentum and create change

Question 2

Management Style

Answer 2

Make decisions about the future direction of a business
Responsibility of operating and managing a business and its people
Their role is to influence and motivate all stakeholders during the change process.
The style of management is an important element in managing change – an effective leader of change needs to adopt a management style that includes:
* Communicator: to set a clear direction and vision for the change
* Liaison: to manage and consult during the change
* Advocate: to promote and support the change
* Coach: to engage and motivate stakeholders through the change
* Resistance manager: to identify and manage resistance to the change

Question 3

4 types of management styles

Answer 3

Autocratic- Manager has total control and ensure everything is completed
Makes all the decisions about change
Persuasive- Manager persuades other to follow
Maintains control over the change
Consultative- Consultation with stakeholders
Some involvement of stakeholders in the change
Participative- Management and employees make decisions together
Participation of all stakeholders in change process

Question 4

Organisational Structure

Answer 4

Refers to the hierarchy within the organisation
System that outlines the roles and responsibilities and the different levels of management
A business’s organisational structure would need to be changed with:
* Changes in ownership structure – acquiring, or merging with, another company
* Operational changes – reorganising internal functions to improve business operations
* Business growth – expanding to an international market
* Economic downturn – downsizing a business due to the economic environment

Question 5

Competition

Answer 5

A business needs to understand and monitor its competitors, including:
* Strengths and weakness of the competition
* Monitoring industry changes
* Understanding customer needs
Competition can have a direct impact on a business and can be a driver for change:
* Pricing – the pricing policy used by a competitor can influence change in a business, if a competitor is selling the same product at a lower price, this may lead a business to change its pricing policy, too.
* Advertising – the promotional material or advertising campaign used bay a business can trigger a change, especially if its marketing is more engaging
* Product – a change in product quality or production method can drive a competitor to change its product or processes
* Technology – the use of new technology can have a significant impact on business operations and influence change,. It can increase the speed of production, improve communication or change operational process in a business
* New business – new competitors that will compete with an existing business may result in changes; The existing business may need to change to keep competitive

Question 6

Legislative Compliance

Answer 6

When new laws are passed may need to change in response to the new laws passed
Legislation can change at federal, state or local level

Rules, Standards, Regulations, Policies, Law