Unit 10- managing strategic change Flashcards

1
Q

what are some factors managers must consider when managing change?

A
  • internal + external environment

- employee resistance

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2
Q

whats lewin’s force field?

A

lewin’s force field analysis supports managers and leaders in comparing pressures or forces for chnage against the forces resisting change

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3
Q

what are some forces contributing to change?

A
  • poor financial performance

- poor customer satisfaction

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4
Q

what are some factors contributing to resisting change?

A
  • A lack of resources, including finance and labour, may provide resistance to change if a business is unable to provide the resources needed for change.
  • Employee concerns may provide resistance to change if employees are worried about the impact of the change on their job security or working conditions.
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5
Q

what does kotter and schlesinger propose?

A

six strategies which managers and leaders can use to overcome resistance to change

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6
Q

what are the 6 strategies proposed by kotter and schlesinger for overcoming change?

A
1- educating and communicating with staff
2-facilitation and support
3-participation and involvement
4- coercion (co-operate or redundancy)
5- negotiation and rewards 
6- manipulation
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7
Q

how does educating and communicating with staff overcome resistance to change?

A

Educating and communicating with staff can help employees overcome their resistance as discussions can be used to inform staff of the reason behind why the change is required for the business’ ongoing success.

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8
Q

how does facilitating and supporting with staff overcome resistance to change?

A

Facilitation can help employees overcome their resistance through supporting and providing resources so that employees have the tools needed to address and adapt to change.

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9
Q

how does participation and involvement with staff overcome resistance to change?

A

Participation can help employees overcome their resistance by giving them a sense of involvement and ownership so that they feel involved with the process of change.

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10
Q

how does manipulation of staff overcome resistance to change?

A

Manipulation can help employees overcome their resistance through targeting employees likely to offer the most resistance and offering opportunities for these employees to become involved in the change process.

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11
Q

how does negotiation with staff overcome resistance to change?

A

Negotiation can help employees overcome their resistance through offering rewards to employees who agree to co-operate with and support change.

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12
Q

how does coercion with staff overcome resistance to change?

A

Coercion can force employees to overcome their resistance by offering employees the decision to either co-operate or accept redundancy.

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13
Q

what are some factors which may be reasons for resistance?

A
  • Employee self-interest may provide resistance to change as employees value their own values and beliefs above those of the business.
  • Employee misunderstanding may provide resistance to change as employees simply do not understand the change or do not understand how it will affect them.
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14
Q

what are some reasons why resistance may be continued?

A
  • Employees may prefer the current situation (known as the status quo) and therefore see no reason to change, and therefore resist any change proposed.
  • Employees may have made a different assessment to that of the managers and leaders, and may agree that some change is needed, but may disagree about the type of change needed, which can provide resistance.
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15
Q

what does organisational culture refer to?

A

Organisational culture refers to the ethos, values and beliefs of a business and its employees.

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16
Q

what model can you use to study business culture, managers and leader?

A

Handy’s model

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17
Q

what is meant by power culture?

A

Power culture refers to a business that places importance on the authority and decision-making power of a small number of key employees.

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18
Q

what is meant by role culture?

A

Role culture refers to a business which places importance on employees having clear roles within the organisation.

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19
Q

what is meant by task culture?

A

Task culture refers to a business which places importance on employees being associated with tasks and projects within the organisation.

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20
Q

what is meant by person culture?

A

Person culture refers to a business that places importance on employees being valued and operating autonomously within the business.

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21
Q

what does Hofstede’s model state?

A

Hofstede’s model of national culture states that businesses operating internationally will be affected by the cultural influences of the different countries in which they operate:

  • individualism and collectivism
  • uncertainty avoidance
  • power distance
  • masculinity and femininity
  • long- term orientation
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22
Q

what is meant by individualism and collectivism?

A

Individualism and collectivism state that different countries will influence branches of a business in different ways as some countries have societies which value individuals whereas other countries have societies which value team members.

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23
Q

what is meant by power distance?

A

Power distance states that different countries will influence branches of a business in different ways as some countries have societies which value individuals based on age and experience whereas other countries have societies which value individuals based on their skill and ability.

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24
Q

what is meant by long term orientation?

A

Long-term orientation states that different countries will influence branches of a business in different ways as some countries have societies and governments which value short-term approaches whereas other countries have societies and governments which value long-term approaches.

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25
Q

what is meant by uncertainty avoidance?

A

Uncertainty avoidance states that different countries will influence branches of a business in different ways as some countries have high adversity to uncertainty whereas other countries have much lower adversity to uncertainty.

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26
Q

what is meant by masculinity and femininity?

A

Masculinity and femininity state that decision-making approaches may differ between cultures and that masculinity focusses on rewards and discipline whereas femininity focusses instead on relationships and being caring.

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27
Q

what is meant by uncertainty avoidance?

A

Uncertainty avoidance states that different countries will influence branches of a business in different ways as some countries have high adversity to uncertainty whereas other countries have much lower adversity to uncertainty.

28
Q

what is meant by masculinity and femininity?

A

Masculinity and femininity state that decision-making approaches may differ between cultures and that masculinity focusses on rewards and discipline whereas femininity focusses instead on relationships and being caring.

29
Q

what are the 4 different organisational structures that a business can use?

A
  • functional structure
  • product structure
  • matrix structure
  • regional structure
30
Q

what is meant by fuctional structure?

A

A functional structure exists when a business structures itself by the four main business functions of human resources, finance, marketing, and operations.

31
Q

what is meant by matrix structure?

A

A matrix structure exists when a business structures itself around a matrix where each employee may report to two or more supervisors, for example where one supervisor has knowledge of a product or project and another supervisor has knowledge of a business function.

32
Q

what is meant by regional structure?

A

A regional structure exists when a business structures itself around a region, so there will be staff from each function working in a team assigned to each region.

33
Q

what is meant by product structure?

A

A product structure exists when a business structures itself around the products or services it produces, so there will be staff from each function working in a team assigned to each business product.

34
Q

what factors does a business need to take into consideration when choosing organisational structure?

A

When choosing the most appropriate organisational structure, a business must consider a range of different influences including the industry, the actions of competitors and the market conditions in which the business operates.

35
Q

why would a business use network analysis?

A

When implementing a new strategy, managers and leaders can use network analysis to manage and plan the different stages and elements of a project.

-Using network analysis allows managers and leaders to identify activities which can overrun without impacting the finish date of the whole project.

36
Q

what is meant by network analysis?

A

Network analysis is the use of a network analysis diagram to visually display the different elements of a project to identify the quickest way of completing all activities.

37
Q

what are nodes in network analysis diagrams used for?

A

In a network analysis diagram, circles, known as nodes, are used to show the start and end of an individual activity.

38
Q

what does each section in a node represent?

A

left- reference (used for info)

  • upper right- EST ( the next activity can begin based on the previous activity finishing
  • lower right (LFT) the latest finish time (LFT) of the previous activity to not delay the overall project.
39
Q

what is float time in network analysis diagrams?

A

This extra time is known as float time and is the difference between the latest finish time of the previous activity and the earliest start time of the next activity with the activity duration deducted.

40
Q

what are the advantages of network analysis?

A
  • Network analysis allows businesses to calculate float time and identify activities which can be delayed or overrun without affecting the overall project, which allows managers and leaders to move resources if they need to.
  • Network analysis allows businesses to calculate the critical path which is the list of activities which have no float time and cannot be delayed without delaying the overall project, which allows managers to prioritise.
  • Network analysis allows managers and leaders to identify whether different tasks can be done at the same time to minimise the overall duration of project implementation.
41
Q

what is the critical path in network analysis diagrams?

A

-which is the list of activities which have no float time and cannot be delayed without delaying the overall project

42
Q

what are disadvantages of network analysis?

A
  • Network analysis uses forecasted activity durations and these forecasts may be inaccurate.
  • Network analysis does not guarantee successful strategy implementation as the business still needs adequate resources and managerial experience to implement the strategy successfully.
43
Q

how do you calculate float time?

A

(difference between LFT of previous activity and EST of the next activity) - the activity duration deducted

44
Q

what are some factors influencing strategies of a business?

A
  • Businesses consider the internal and external environment when deciding and considering their strategic plans.
  • The leadership of a business can affect its strategic plans and the implementation of a strategy.
45
Q

whats is the impact of implementing a new strategy?

A
  • Implementing a new strategy can mean that the business experiences large cultural changes.
  • Leaders are needed to guide the business through this period of change and ensure that employees are supporting the change and the business’ direction.
46
Q

what is the importance of leaders when implementing new strategies?

A
  • Leaders often understand the process of change and their guidance and expertise can help make sure that any change is successful.
  • Leaders often take responsibility for monitoring and reviewing any strategic changes and ensuring that appropriate actions are taken to address any concerns. Leaders may also delegate these decisions to others within the organisation.
  • Leaders motivate and empower staff and ensure that employees are not resistant.
47
Q

why is communication important when managing strategic implementation?

A
  • The quality of communication within a business can affect its strategic plans and the implementation of a strategy.
  • Communication involves employees and ensures that key stakeholders understand why change is happening. This can reduce employee resistance and support strategic change.
  • Communication between functional areas is vital to ensure that all functions have the resources available to support the strategic change.
  • Communication is vital to enable employees to report on and review the success of the change and relay this information to managers and leaders.
48
Q

what are the 2 types of strategy implementation?

A
  • planned strategies

- emergent strategies

49
Q

what is the difference between planned and emergent strategy implementation?

A
  • Planned strategies are strategies which are planned by managers and leaders and are purposefully implemented.
  • Emergent strategies are strategies which develop overtime but were not planned or implemented purposefully.
50
Q

when does strategic drift occur?

A

Strategic drift occurs when a business fails to respond to changes in the external environment, including customer demands, and therefore no longer offers the products and services demanded by customers.

51
Q

how do businesses try and overcome strategic drift?

A

In some cases, managers and leaders may not respond to changes in the market as they believe that changes will eventually reverse, but often this is not the case and many businesses have battled survival because of strategic drift. Businesses will need to make a transformational change or their failure to respond to market changes may otherwise become fatal.

52
Q

when do strategic problems occur?

A

when ownership and management is separated

53
Q

state the owner and manager un sole traders LTDs and PLCs?

A
  • When businesses operate with sole trader status, the owner and manager is often the same individual.
  • In limited companies, the owners and managers can be separate groups of individuals as owners, or shareholders, appoint a board of directors to manage the company on their behalf, especially in Public Limited Companies (PLC)
54
Q

what is a disadvantage of divorce of ownership and control?

A

Owners, or shareholders, may be focussed on shareholder return and the maximisation of dividends whereas managers and directors may wish to invest profit in the long-term growth of the business; this creates conflict.

55
Q

what is meant by corporate governance?

A

Contingency planning refers to the process of managers and leaders planning for events which, if happened, would have a potentially serious impact on the business’ success.

56
Q

what is meant by contingency planning?

A

Contingency planning refers to the process of managers and leaders planning for events which, if happened, would have a potentially serious impact on the business’ success.

57
Q

what is an advantage of contingency planning?

A

Contingency plans can prepare a business for unlikely but potentially serious events.

58
Q

what is an disadvantage of contingency planning?

A

Contingency plans can waste resources as plans may never be needed but have still been produced.

59
Q

what is meant by external growth?

A

External growth occurs when a business expands by purchasing or taking over other businesses.

60
Q

what is meant by synergies?

A

Synergies occur when two or more businesses combine and are worth greater than the individual sum of each.

61
Q

what is meant by retrenchment?

A

Retrenchment is a term used to describe when a business decides to significantly cut or scale-back its activities.

62
Q

when might retrenchment occur?

A
  • Reduce output & capacity
  • Job losses / redundancy programmes
  • Product / market withdrawal
  • Disposal of business unit
  • Scaling back planned capital investment
63
Q

what are some factors that cause retrenchment? (8)

A

-New leadership (usually a new CEO)
-Excessively-high costs and low profitability (or unsustainable losses)
-Low ROCE
-Excessively high gearing (leading to cash flow problems)
-Loss of market share
-A failed takeover or merger
-Economic downturn
Change of ownership

64
Q

explain the divorce between ownership and control

A

The divorce between ownership and control occurs in limited companies means that most shareholders are not involved in the day-to-day running of the business. Instead, the business is managed by a Board of Directors. If the Board makes decisions that benefit themselves instead of the shareholders (or owners), then this is poor corporate governance.

65
Q

explain the role of non- executive directors

A

Each Board should have a number of Non-executive Directors who are there to represent the views of the wider shareholders. It is their role to question decisions made by the Board and to provide constructive criticism on the strategy of the business. These individuals should be impartial and have no personal or financial ties to anyone else on the Board; this ensures that different views are considered before making a decision.

66
Q

explain aligned incentives

A

Another way to make sure that the Board works in the best interests of the shareholders is to provide incentives that are aligned to both stakeholder groups. Shareholders seek to gain the biggest return in terms of dividends and the value of their shares. Therefore, targets and incentives for the Board should relate to the financial performance, profitability and potentially the share price, which is directly tied to the value created for external shareholders.