Theme 3 Topic 16 - Managing Change Flashcards
What are five causes of change?
Organisational size, Poor business performance, New ownership, Transformational leadership, PESTLE
Define Transformational Leadership
A new leader is appointed as a result of poor business performance
What is a transformational leader expected to do?
Transform the performance of the business by implementing a new vision or strategic decision for the business
What four things can be affected by change?
Competitiveness, Productivity, Financial performance, Stakeholders
Define Managing Change
The process of organising and introducing new methods of working in a business
What three factors need to be considered when managing change?
Organisational culture, Size of the organisation, Speed of change
What are four reasons stakeholders may resist change?
Disagreement with the reason for change, Fear of the impact, Lack of understanding, Lack of involvement
Define Scenario Planning
The process of anticipating possible changes in a businesses situation and devising ways of dealing with them
Define Risk Assessment
Identifies the key risks that a business may face
Define Risk Mitigation
Taking actions that will reduce the negative impact of any unexpected events
What are four methods of mitigating risk?
Risk Acceptance, Risk Avoidance, Risk Limitation, Risk Transference
Define Risk Acceptance
Where the full cost of mitigation is greater than the cost itself, often the case for small businesses
Define Risk Avoidance
The opposite of risk acceptance, involves trying to eliminate the potential risk e.g. withdrawing from a politically unstable country
Define Risk Limitation
The business recognises the potential danger of a risk and has a back up plan to deal with it, most common
Define Risk Transference
Handing risk to another business e.g. outsourcing for security
