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