Unit 10 Flashcards
What are the types of change?
- Internal
- External
- Disruptive
- Incremental
What is internal change?
When root cause of change comes from inside the business
What is an example of internal change?
- Changess in leadership may cause a new structure or culture
What is external change?
When root cause of change comes from outside the business
What is an example of external change?
- Changes in economic environment may mean that interest rates rise and need to reduce gearing
What is disruptive change?
Extreme type of change to products or processes that irreversibly alters the industry or market
What is an example of disruptive change?
Online music streaming platforms like spotify that replaced physical cd albums
What is incremental change?
Small but frequent changes over time and must always adapt to external environment to avoid strategic drift
What is Lewis Force Field analysis model?
A change management model that focuses on a point in time and the factors for and against change
What does Lewin’s Force Field analysis model consist of?
Driving forces for the change and restraining forces which are obstacles against the change
In the middle is the present or desired state
What is an example of driving forces towards change in Lewin’s model?
- Net incomes falling
- Higher customer complaints
- Increased number of rivals
What is an example of restraining forces in Lewin’s model?
- Trade unions
- Employee satisfaction
- Local community
What is the positive value of change?
- can create number of opportunties for business like creating new markets
- can revaulate what they do to improve productivity, efficiency, quality and profitability
What is the negative value of change?
- many stakeholders will see change as a threat and if the changes aren’t managed properly it will result in failure
What is a flexible organisation?
An organisation that can adapt to changes in external environment quickly and effectively
What are the advantages of being a flexible organisation?
- Adaptable to meet consumer tastes and changes in demand
- Efficiency increased because less waste and optimised resource usage, reducing costs
What are the disadvantages of being a flexible organisation?
- 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
What is the benefit of restructuring through flexible employment contracts?
- ability to adjust staff levels and reduce expenses
- diff types of people increase diversity
What benefit does restructuring through delayering have?
- Removing layers of manangement to create flatter structure makes communication easier, more delegation and faster decision making
What is the value of knowledge and information?
- technology gives greater insight to changes ahead so can plan and manage
What is a mechanistic structure?
- hierarchal and rigid
- clear lines of authority
- ideal for stable environments
What is an organic structure?
- flexible
- decentralised
- focused on employee empowerment
- ideal for uncertain environments
What are Kotter + Schlesinger’s reasons for resistance to change?
- self interest
- different assesment
- low tolerence for change
- misunderstanding
What is self interest as part of kotter’s model?
employees have narrow outlook and only care about the impact change has on them, not the business
What is different assessment as part of kotter’s model?
stakeholders made different assessment as to whether change is needed or what change is needed and dont agree with managers
What is low tolerance for change as part of kotter’s model?
workers fear they dont have the skills to keep up with changes or are not willing to retrain
What is misunderstanding as part of kotter’s model?
employees dont believe manager or there is lack of communication and information
What are Kotter + Schlesinger’s six ways of overcoming resistance to change?
- education + communication
- participation + involvement
- facilitation + support
- negotiations
- manipulation + coption
- coercion
What is education and communication according to Kotter?
where there is lack of communication or info explain why change is needed
what does education and communication (kotter) depend on?
is there enough time to convince employees?
what is particpation and involvement according to kotter?
where there is different assessment make staff contributions feel valued
what is disadvatange of participation and involvement (kotter)?
could slow process down
what is facilitation and support according to kotter?
provide training where there is low tolerence to change to staff feel secure in their skills and job position
what is a disadvantage of facilitation and support (kotter)?
could be costly and not worth it if facilitation is coming
what is negotiation according to kotter?
be open to staff views and negotiate to come to agreements when there are different assessments
what is manipulation and coption according to kotter?
rewards are offered to influential staff to win them over and keep satisfied
what is coercion according to kotter?
chnage is forced despite potential impacts
what are handy’s cultures?
- power
- task
- role
- people
what is handy’s power culture?
- centralised (decisions made by select few)
- quick decision making but rapid growth may cause communication to break down
what is handy’s task culture?
- 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
what is handy’s role culture?
- hierarchal structure where employee power is determined by role
- stable environment but staff tasks are limited to their role
what is handy’s people culture?
- focus on autonomy where workers have freedom to act independantly based on specialist skills
- can allocate best staff but may have individualist mindset
what is hofstede’s national cultures model?
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
what are hofstede’s six dimensions?
- power distance
- individualism vs collectivism
- masculine vs feminine
- long vs short term orientation
- indulgence
- uncertainty avoidance
what is power distance (hofstede)?
to what extent society believes that power csn be distributed unequally
what do countries with low power distance do (hofstede)?
decentralise
what do countries with high power distance do (hoftsede)?
centralised structure
what is individualism vs collectivism (hofstede)?
extent to which individuals should look after themselves rather than work in a team
what do countries with low individualism do (hofstede)?
team loyalty and non financial methods of motivation
what do countries with high levels of individualism do (hofstede) ?
limited autonomy and financial rewards
what does a more masculine country do (hofstede)?
focus on money
what does a more feminine country do (hofstede)?
have high concern for others and relationships
what is long term orientation (hofstede)?
how society deals with issues and whether they look at impacts in long term or short term
what is indulgence (hofstede)?
the ability to control desire
what is uncertainty avoidance (hofstede)?
the tolerence for ambiguity and the extent they are willing to accept change
what are the key influences on organisational culture?
- founders
- size
- rewards
- industry
- structure
- environment
what are the key reasons for organisational change?
- business performance (eg. sales and labour turnover)
- new leadership
- changes in the external environment
what are the problems of changing organisational culture?
- 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
what should be considered when implementing strategy effectively?
- 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?
what are the different organisational structures?
- functional
- regional
- product
- matrix
what is a functional organisation structure?
organisatiion is split into specialist departments
