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AQA Business > Unit 10 > Flashcards

Unit 10 Flashcards

1
Q

What are the types of change?

A
  • Internal
  • External
  • Disruptive
  • Incremental
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2
Q

What is internal change?

A

When root cause of change comes from inside the business

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3
Q

What is an example of internal change?

A
  • Changess in leadership may cause a new structure or culture
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4
Q

What is external change?

A

When root cause of change comes from outside the business

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5
Q

What is an example of external change?

A
  • Changes in economic environment may mean that interest rates rise and need to reduce gearing
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6
Q

What is disruptive change?

A

Extreme type of change to products or processes that irreversibly alters the industry or market

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7
Q

What is an example of disruptive change?

A

Online music streaming platforms like spotify that replaced physical cd albums

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8
Q

What is incremental change?

A

Small but frequent changes over time and must always adapt to external environment to avoid strategic drift

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9
Q

What is Lewis Force Field analysis model?

A

A change management model that focuses on a point in time and the factors for and against change

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10
Q

What does Lewin’s Force Field analysis model consist of?

A

Driving forces for the change and restraining forces which are obstacles against the change

In the middle is the present or desired state

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11
Q

What is an example of driving forces towards change in Lewin’s model?

A
  • Net incomes falling
  • Higher customer complaints
  • Increased number of rivals
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12
Q

What is an example of restraining forces in Lewin’s model?

A
  • Trade unions
  • Employee satisfaction
  • Local community
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13
Q

What is the positive value of change?

A
  • can create number of opportunties for business like creating new markets
  • can revaulate what they do to improve productivity, efficiency, quality and profitability
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14
Q

What is the negative value of change?

A
  • many stakeholders will see change as a threat and if the changes aren’t managed properly it will result in failure
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15
Q

What is a flexible organisation?

A

An organisation that can adapt to changes in external environment quickly and effectively

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16
Q

What are the advantages of being a flexible organisation?

A
  • Adaptable to meet consumer tastes and changes in demand
  • Efficiency increased because less waste and optimised resource usage, reducing costs
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17
Q

What are the disadvantages of being a flexible organisation?

A
  • can cause resistance to change from employees bc they may think job is at risk
  • coordination issues
  • have to act quickly and work harder so more employee burnout and high labour turnover
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18
Q

What is the benefit of restructuring through flexible employment contracts?

A
  • ability to adjust staff levels and reduce expenses
  • diff types of people increase diversity
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19
Q

What benefit does restructuring through delayering have?

A
  • Removing layers of manangement to create flatter structure makes communication easier, more delegation and faster decision making
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20
Q

What is the value of knowledge and information?

A
  • technology gives greater insight to changes ahead so can plan and manage
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21
Q

What is a mechanistic structure?

A
  • hierarchal and rigid
  • clear lines of authority
  • ideal for stable environments
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22
Q

What is an organic structure?

A
  • flexible
  • decentralised
  • focused on employee empowerment
  • ideal for uncertain environments
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23
Q

What are Kotter + Schlesinger’s reasons for resistance to change?

A
  • self interest
  • different assesment
  • low tolerence for change
  • misunderstanding
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24
Q

What is self interest as part of kotter’s model?

A

employees have narrow outlook and only care about the impact change has on them, not the business

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25
Q

What is different assessment as part of kotter’s model?

A

stakeholders made different assessment as to whether change is needed or what change is needed and dont agree with managers

26
Q

What is low tolerance for change as part of kotter’s model?

A

workers fear they dont have the skills to keep up with changes or are not willing to retrain

27
Q

What is misunderstanding as part of kotter’s model?

A

employees dont believe manager or there is lack of communication and information

28
Q

What are Kotter + Schlesinger’s six ways of overcoming resistance to change?

A
  • education + communication
  • participation + involvement
  • facilitation + support
  • negotiations
  • manipulation + coption
  • coercion
29
Q

What is education and communication according to Kotter?

A

where there is lack of communication or info explain why change is needed

30
Q

what does education and communication (kotter) depend on?

A

is there enough time to convince employees?

31
Q

what is particpation and involvement according to kotter?

A

where there is different assessment make staff contributions feel valued

32
Q

what is disadvatange of participation and involvement (kotter)?

A

could slow process down

33
Q

what is facilitation and support according to kotter?

A

provide training where there is low tolerence to change to staff feel secure in their skills and job position

34
Q

what is a disadvantage of facilitation and support (kotter)?

A

could be costly and not worth it if facilitation is coming

35
Q

what is negotiation according to kotter?

A

be open to staff views and negotiate to come to agreements when there are different assessments

36
Q

what is manipulation and coption according to kotter?

A

rewards are offered to influential staff to win them over and keep satisfied

37
Q

what is coercion according to kotter?

A

chnage is forced despite potential impacts

38
Q

what are handy’s cultures?

A
  • power
  • task
  • role
  • people
39
Q

what is handy’s power culture?

A
  • centralised (decisions made by select few)
  • quick decision making but rapid growth may cause communication to break down
40
Q

what is handy’s task culture?

A
  • matrix structure with focus on specific task or project
  • individuals brought in from different departments to work on tasks
  • cross function communication but can lead to confusion due to multiple managers
41
Q

what is handy’s role culture?

A
  • hierarchal structure where employee power is determined by role
  • stable environment but staff tasks are limited to their role
42
Q

what is handy’s people culture?

A
  • focus on autonomy where workers have freedom to act independantly based on specialist skills
  • can allocate best staff but may have individualist mindset
43
Q

what is hofstede’s national cultures model?

A

based around the idea that business culture is different in all countries based on 6 dimensions that are rated on a scale out of 10

44
Q

what are hofstede’s six dimensions?

A
  • power distance
  • individualism vs collectivism
  • masculine vs feminine
  • long vs short term orientation
  • indulgence
  • uncertainty avoidance
45
Q

what is power distance (hofstede)?

A

to what extent society believes that power csn be distributed unequally

46
Q

what do countries with low power distance do (hofstede)?

A

decentralise

47
Q

what do countries with high power distance do (hoftsede)?

A

centralised structure

48
Q

what is individualism vs collectivism (hofstede)?

A

extent to which individuals should look after themselves rather than work in a team

49
Q

what do countries with low individualism do (hofstede)?

A

team loyalty and non financial methods of motivation

50
Q

what do countries with high levels of individualism do (hofstede) ?

A

limited autonomy and financial rewards

51
Q

what does a more masculine country do (hofstede)?

A

focus on money

52
Q

what does a more feminine country do (hofstede)?

A

have high concern for others and relationships

53
Q

what is long term orientation (hofstede)?

A

how society deals with issues and whether they look at impacts in long term or short term

54
Q

what is indulgence (hofstede)?

A

the ability to control desire

55
Q

what is uncertainty avoidance (hofstede)?

A

the tolerence for ambiguity and the extent they are willing to accept change

56
Q

what are the key influences on organisational culture?

A
  • founders
  • size
  • rewards
  • industry
  • structure
  • environment
57
Q

what are the key reasons for organisational change?

A
  • business performance (eg. sales and labour turnover)
  • new leadership
  • changes in the external environment
58
Q

what are the problems of changing organisational culture?

A
  • resistance to change
  • requires time and effort to do effectively
  • harder to make changes in larger well established organisations

-MNCs need to consider cultural differences

59
Q

what should be considered when implementing strategy effectively?

A
  • how effectively has it been communicated?
  • has leadership been effective in implementation phase?
  • is the correct organisational structure being used?
  • will network analysis be used?
60
Q

what are the different organisational structures?

A
  • functional
  • regional
  • product
  • matrix
61
Q

what is a functional organisation structure?

A

organisatiion is split into specialist departments

62
Q
A

AQA Business (2 decks)

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