Unit 10 Flashcards
Disruptive change
The thought of re-designing at a large scale at a quick timespan. Which may change the organisation and culture of the business which is high risk. Usually occurs with innovation or technological changes.
Incremental change
aimed at small-scale improvements of a business change. will do change which doesn’t affect culture to reduce the risks
What are the values of change
-Flexibility: A business that embraces change will have more motivation to change and will be inclined to new opportunities to give a competitive edge.
-Progress
- Opportunities
- Customer needs: New demands need to be met
-Challenging current practices: Businesses that are more inclined to take risks of making new products will gain the competitive edge
Restructuring
Due to rapid change in the world of business.
Business need to be prepare to adapt their organisational structure to their needs to gain the edge.
Therefore restructuring will allow existing roles internally to be redesigned which alters relationships and components in the organisation to make it more fundamental for the business.
Organic structure
- Decentralised
- Has wider span of control
- Can be more flexible
- Suited to operations that are unstable, dynamic and need to adapt quickly
Mechanistic structure
- Bureaucratic and based on a formal centralised structure
- Narrow spans of control
- Easy to maintain and does not need to be changed in a normal environment
Barriers to change
- Employee resistance: Takes workers out their comfort zone and could potentially lose their job.
-Management behaviour: Sometimes management can be resistant to change and may lack clear objectives
-Inadequate resources: Could be in terms of budget, human resources or physical resources
-Organisational culture: The culture of a business may not embrace change.
Kotter- Parochial and self interest
Where people will feel like they will lose something and are focused on their self-interest
Kotter- Misunderstanding and a lack of trust
This occurs where people don’t fully understand the implications of change and will perceive the change to be a cost rather than a gain.
- Occurs with poor communication and a lack of trust
Kotter-Different assessments
- Occurs when people assess the situation differently from managers differently. And see more costs then a benefit as a whole.
Kotter- Low tolerance of change
Occurs when people feel they will not be able to adapt to the change required of them.
- They may be too much demanded of them
Overcoming change- Education and communication
Handys culture model types
- Task culture
- Role culture
- Person culture
- Power culture
Task culture features
- Provides flexilbity but hard to control
- Job orientated
- Teams are formed to solve the problem together
- Common in a business that has multiple agencies
Role culture features
- Highly defined structure and roles
- Clear delegation authority
- Decison making is slow
- Tall structure
Power culture features
- Found in entrepreneurial organisations
- Power radiates from the centre of the business and only a few have this
- Few rules and little bureuacy
Person culture features
- People are believe they are superior to their boss
- Business depends on keeping key personel
- Common in firms of proffessional
Types of national cultures
- Individual vs collectism
- Power distance
- Indulgence vs restraint
- long term vs short term
- Masculinty vs feminity
- Uncertainty avoidance
Influences on organisational change
- Leadership style
- Objectives of organisation
- nature of the business
- Employees
Reasons for a change in culture
- Existing toxic culture
- Change of leader
- Change of ownership
- Changing market conditions
How to implement strategy effectively
- A clear understanding of the objectives at hand
- Commitment
- The willingness to change
- The abillity to change
The values of leadership when changing strategy
- Commitment to the strategy
- The ablity to motivate others through the implementation
- able to communicate effectively to make it clear what the change is and why
The value of communication in strategic implementation
- Must be vital to devleop a communication plan that identifes the key stakeholders and correct channels of timing and communications.
- Shareholders, the city, the local community and consumers need to know why a new strategy has been done and what it means for the organisation.
- If this can be communicated effectively for key stakeholders and employees then it will be likely to generate enthuasim and more drive for the organisation
Diffilcuties of decison making and implementing strategy
- Overall goals may not be understood by the workforce and perhaps wrong targets have been set.
- A lack of capablity of employees or training that was needed to be successful.
- Leadership may fail to guide correct direction leading to a lack of commitment
- Difficlutioes if change has not been done on the date it would be forecast to finish
