Section C Change Flashcards
What internal triggers are there of changes in objectives of an organization?
- Change of leadership
- HR philosophy, structure or staff change for other reasons
- Organizational structure or location changes
- Product or whole product line changes
- Access to finance changes
CSR as internal or external factor of change
-Concept that a business has an obligation to operate in a way that will have a positive impact on society.
-The CSR policy is based on the companies intention to be a good ‘corporate citizen’, setting standard for others
- More likely to be a sustainable business model
-Pressure may come from external expectations
-Pressure may come from internal philosophy/code of behaviour/vision statement/mission statement
7 external triggers of change
The STEEPLE
1. Social factors change (education levels, philosophy etc)
2. Technological changes
3. Economic
4. Ethics (particularly, the values which are not regulated by legal tools)
5. Political
6. Legal
7. Ecological (sustainability)
What changes may be triggered by ethical considerations?
Ethics is about expectations about of a given society in a given place at a given time period
1. Developing positive /motivating work environment (as expected from workers) may involve changes in culture, payment schemes etc
2. Ethical behaviour sets higher standards than law. In such a way, promotion of ethical behaviour reduces risks to be sued in court by partners or customers, or to be sanctioned by government.
3. Meeting customers growing expectations requires changes
4. Meeting partners (suppliers, alliance etc) growing expectations requires changes
Between vision and mission statements, aims and objectives, which are prone to change?
All except Vision statement
Which SWOT related strategy implies most intensive change management?
Re-orientation strategy - a long-term strategy addressing weaknesses (in organizational structure, processes, product line, segment etc) to benefit from opportunities, available in the market
What does a Challenging Objective mean, with regard to change?
An effort will be needed to change some features of the company in order to arrive where needed.
Which BCG strategy may involve most effort with regard to a change?
We may argue, it could be a building strategy for question marks and particularly, if decided so, for dogs
Which type of extension strategy involves change?
Any:
New markets/regions/locations/export
New markets/segment
New uses
New packaging
New promotional strategies
Which stage of life cycle involves intensive changes?
At each next stage of live-cycle there may be some changes needed in all 4 P strategies (as well in profit estimates, Investment level and cash flow).
What changes are expected with regard to financial performance of a company?
Growth.
Which is the riskiest change according to Ansoff strategy and why?
Diversification, I involves the change of markets, products, marketing strategies and possibly even company culture, depending on requirements of new, unknown, local markets
Which stakeholders may influence the change in the company the most?
Those who have more power as well as interest in the business. According the stakeholder mapping tool, these are called Key players.
What is the names a company being among the first few to adapt to some change and what is its advantage?
Early adaptor having first mover advantage
Reasons for sectoral change?
Innovation and cultural changes may make some business models (for businesses) or professions/skills (for people) obsolete. The businesses or people may change the sectors of the economy that they are operating in
What sectoral changes are observed in developed nations?
Shift form primary sector to others, particularly in tertiary quaternary (focused on knowledge and IT)
Is `good working conditions’ a constant value?
What is considered `good’ is already controversial and different theories explain it differently. The difference becomes even more wide-ranging for different places/regions/nations/cultures and times/eras.
Consequences of changes in the production method?
Once a business has a particular production method in place, it is not easy to change it, because of the high opportunity costs involved (However, it may be possible and suitable to combine different methods). Possible results:
For HR: Workers dismissed, trained etc
For Marketing the image and distribution channels may be affected
For Finance: stock control, cash flow may be affected,
Change vs one particular approach to production?
The continuous improvement method of lean production Involves continuous change, as opposed to occasional changes.
Change vs culture? or how to understand cultural attitude towards change?
May be measured buy Hofstede’s index Uncertainty avoidance or Individualism, or even Power distance
Change as a potential source of conflict between employees and employer?
Resisting the change. the reasons:
● Mistrust
● Poor communication
● Job insecurity
● Loss of power of a skilled worker (if other skills needed)
● poor timing etc.
After change occurred:
● Workers may be unwilling to continue on the same wages, after they go through trainings and feel themselves as skilled and needed.
● Change of the management and its style may be as well a source. e.g after merger.
May result in strike, slow-down, lock-out etc
Management of change. The plan
- Develop a vision of the change process and outcomes
- Forecast and allocate resources
- Involve employees in the earlier stages
- Communicate to stakeholders regularly (reporting problems or implementation dips are encouraged)
- Trainings
- Clear communication of the first benefits of change
- Support employees throughout the change
Research and change
Research methods have changed considerably. Considerable part of research is conducted through online surveys, which definitely are:
● faster,
● often better quality (larger sample, possibly more representative if targeted well, more time allowed to consider questions etc), and
● cheaper than ever.
Changes in strategies vs globalization vs culture?
Markets are dynamic and change all the time, even more on the international level.
So the strategies need to recognize and adapt to changes
note the authors - Hamel &Prahalad
Objective?
Any objective involves a change, Medium or short-term goals
3 types of objectives
Strategic (medium to long-term)
Tactical (medium to short-term)
Operational (day-to-day)
Aim?
Long-term goal
Any aim involves a change, a state which we have not reached yet.
Mission statement?
Focuses on the immediate steps to implement some changes, is Action-oriented and
It often includes a general description of the objectives.
A mission statement describes what is now as opposed to what a company aspires to be (which is a vision)
Vision statement?
A good vision statement will never change but it involves changes within the organisation to come closer to the vision
A vision statement describes what a company aspires to be, as opposed to what it is now (which would be a mission).
