Unit 1- Change Flashcards
Causes of Change
What is change
This is an ongoing process. Changes can be gradual with small and incremental changes.
Causes of Change
Internal changes
- Introduction of new technology
- A change in management structure of leadership style
- Changes in the size of the business
Causes of Change
External changes
- Developments in technology
- Market changes
- Changes in consumer tastes
- New legislation
- Changes in the workforce
- Changes in the economy
Causes of Change
Planned change
Created internally and is structured there are clear objectives for the change are established, timetables created and resources applied to creating the change
Causes of change
Unplanned change
This occurs when there is a shock to the business and is often unstructred and under resourced. This could be exogenous
Causes of change
Contigency planning
This is a business to minismise the effects of unplanned change. Planning for unlikley events
Effects of change on a business
Shorter product life cycles
This brings threats and oppurtunities to retailers and manufactures. There is little incentive for long term investments
Effects of change on a business
Diminished brand loyalty
New entrants into the market find it easy to find market share and existing business would need to fight to maintain sales
Effects of change on a business
New product development
Strategic planning is required by business to enusre that new products are developed in repsone to changing market conditions
Effects of change on a business
Changing production methods
Production methods will need to be changed to match changing customers demands. This would require spending on research and development and production technology
Effects of change on a business
Retraining the workforce
For businesses exisiting employees may not be able to adapt to new ways of working or new technologies introduced so training and recruitment costs increase
Effective change managemnet
What are the benefits of change management
Allows them to be able
* Assess and understand the need and the impact of change
* Allocate resources such as capital and staffing the business to support the implementation
* Manage and control the costs incurred with change
* Reduce the time needed to implement change
Effective change managemnet
What are the quantitative and qualitiative factors that can be examined
- Delivery times
- Production defects
- Customer satisfaction surveys
- Market share
- Sales turnover
- Profitability
Approaches to managing change
Different approaches to managing change
- Employee preperation
- Increased research and development expenditure
- Additional capital invetsment
Effective change managemnet
John Storey Four Appraches theory
- A total imposed package
- Imposed Peicemeal incentives
- Negotiated total packages
- Negotiated peicemeal packages
Effective change managemnet
Total imposed package
This would be a whole package of changes and would simply be presented to the employees. Restructing would be done accordingly. This ensures a rapid change but if orginisational culture does match approach there may be resistance
Effective change managemnet
Imposed peicemeal initatives
This is a more gradual approach. Change and restructuring of a business is still imposed by senior management but in stages rather than all at once. This gives employees time to adapt and help allievate resistance. May offer incentive payments or non financial rewards
Effective change managemnet
Negotiated total packages
The aim is to agree on the package of change through negotiation and consultation with the workforce. This may signifcantly reduce the level of resistance to change. This method is more popular with trade unions
Effective change management- Resistance
Negotiated peicemeal packages
The gradual implementation of change will be negotiated at each stage. The change may be linked to incentive payments
Effective change management- Resistance
Resistance to change and Kotter & Schlesinger
- Self interest- This arises from the percived threat to job security or maybe suppliers dearing future orders
- Misinformation and Misunderstanding - Stakeholders may not understand why change is needed beacsue they have been misinformed of the strategy of the business
- Different assessment of the situation- This is where there is a disagreement about what change is needed
- Low tolerance and inertia- Many people suffer frrom reluctance to change. Many need security, predictability and stability in their work.
Effective change management- Resistance
Manager Resistance
This may be a result of lack of experience or expertise
Effective change management- Resistance
Worker Resistance
This may be a result of their wish to preserve the existing routines to protect pay and employment and to avoid threat to security and status
Effective change management- Resistance
Supplier Resistance
This may be a result of reluctance of change to their customers
Effective change management- Resistance
Shareholder/Owner Resistance
This may be a reuslt of fear that changes to strategy may increase risk
