Q11: Methods that managers can use to implement changes (Costs and benefits) Flashcards
Implementing changes - Top-down (Costs and Benefits)
Advantages:
- Top-level management have a holistic overview and can make changes in line with business objective.
- This method works best in a crisis as fast decision making is needed
- If change is inevitable, this is an efficient method of implementation, especially when the factor is external
Disadvantages:
- Staff resistance can be high, if they feel they are being overlooked or undervalued
- Employees on the ground with the skills needed but this method does not take that into account
- May result in high levels of staff turnover
- May create a culture of low morale
Implementing changes - (Costs and Benefits) Participative
Advantages:
- Change is more likely to be successful as everyone has been involved
- This fosters trust between management and employees
- Reduces staff resistance and improves morale
- Allows for staff skills, knowledge and experience to contribute to the strategy
Disadvantage:
- They are often time consuming, involving lengthy discussions through quality circles and focus groups
- Trust can be easily be damaged, either management retract the empowerment or employees abuse it
- Not effective in emergencies or crisis
Implementing changes (Costs and Benefits) Action centred
Advantages:
- Allows a business to try out possible solutions on a small scale before making a permanent change
- Explores different options and therefore contingency strategies are often formed
- Allows employees to have an input and pilot aspects of change leading to better decisions
Disadvantages:
- This doesn’t work when the change is external e.g., government legislation
- Piloting ideas can be a lengthy and expensive process
- Often used as continuous improvement and may not be suitable for large changes
Implementing changes (Costs and Benefits) Piecemeal
Advantages:
- Employees become accustomed to the change as it is gradually introduced which can build confidence for the future
- Smaller changes are less likely to result in staff resistance
- Gradual change is easier to manage and control reducing risk
Disadvantage:
- A sense of overall direction may be lost as the change is “bitty”
- Smaller components of the changes may be in conflict with each other
- Decentralised changes may not be fairly rolled out across
What are Change Agents
- They are responsible for bringing about change, they can be individuals of, groups of employees, external expertise etc.
- They look for the issues, then manage employee expectations and set realistic goals. They are also able to educate colleagues and ease their concerns
- Also responsible for groups of colleagues if using “negotiated or participative” approach or choosing correct “Pilot” if using actioned centred
- They can also buy in expert consultants then coordinate with management to ensure process is smooth