Unit 4 A.O.S. 2: Change management. Flashcards
Explain the ways in which an organisation can respond to pressures.
Organisations can be either proactive or reactive.
It is important that organisations are proactive so that they are foreseeing pressures from the dynamic environment and trying to get ahead of those particular issues. So when change occurs it is not because of something that has happened and had an impact it is due to the organisation foreseeing an issue that could occur and making a change to bypass that.
What are the two categories of change.
Incremental: small ongoing changes like in policy or implementing a new quality management strategy or
Transformational: major changes that happen during an organisational like restructure
List and explain some sources for change from the internal environment.
Sources for change from the INTERNAL ENVIRONMENT can include:
Management:
Managers aim to run a successful business. Poor performances can lead to management reviewing different aspects of the organisation. As a result out of that review can come some change to overcome the poor performance that has occurred.
Employees:
employees can be a source for change in a number of ways. Disgruntled employees can desire higher wages and better working conditions. Employees can also drive change in the organisation though innovation and coming up with new ideas.
Corporate culture:
If culture is preventing an organisation from achieving its strategic objectives it needs to change. Culture can also drive an organisation to embrace new behaviours, an organisation may have a corporate culture that thrives on change and will therefore drive it.
Policies:
Policies are often updated which forces an organisation to change the way it handles different situations. When a problem occurs in the environment of an organisation policies need to be updated obviously changing the way in which the organisation operates in a specific area.
List and explain some sources for change from the operating environment.
Sources for change from the OPERATING ENVIRONMENT can include:
Customers:
customer trends and preferences can force an organisation to change in order to stay competitive.
Competitors:
New competitors entering the market can force change. Current competitors changing their operations, improving quality, implementing new marketing campaigns and increasing market share can all put pressure on an organisation to make changes.
Suppliers:
Suppliers can force change within an organisation if they aren’t able to deliver on time, deliver poor quality products or are found to have unethical practices can all force change.
Interest groups:
Such as the trade union can put pressure on an organisation to alter its wages and working conditions
List and explain some sources for Change from the Macro Environment.
Sources for change from the Macro environment include:
Factors from the macro environment are those that the organisation has no control over but can still put pressure on an organisation to change.
Economic:
The economy can affect the decisions an organisation makes. Consumer confidence, exchange rates, interest rates and global economy can all put pressure on an organisation to change what her it be looking at ways to improve productivity.
Legal and political:
Changes in government and government funding can cause an organisation to change. Legislation changes can also add pressures.
Technology:
Technology is a major force within any industry. New technologies that enter the marker can force the organisation to adopt them in order to stay competitive.
List and explain Kotter’s 8 step theory.
KOTTER’S 8 STEP CHANGE THEORY.
STEP 1: CREATE URGENCY.
- Inspire people to want to change and convince them of the need for change. Develop a sense of urgency around the need for change to help spark the initial motivation needed to get things moving.
Step 2: FORM A POWERFUL COALITION.
- Assemble a group of leaders to lead the organisation through the changes. Get the right people in place with the right emotional commitment to making the change successful. These people must have the required skills to introduce the change.
STEP 3: CREATE A VISION.
- clarify how this vision will be better than what has happened in the past. A vision will help everyone understand what is being asked of them and give the organisation as a whole, a clear objective.
STEP 4: COMMUNICATE THE VISION.
Communicate the essential aspects of the vision with all stakeholders and be open and honest, talking about the vision regularly. Everyone must understand and accept the strategy and work towards achieving the vision.
STEP 5: REMOVE OBSTACLES
Continually check for and dispose of barriers to change. Identify change leaders who can implement the change and reward those who can make the change happen.
STEP 6: CREATE SHORT TERM WINS.
Often a change can take a long time to occur. Due to this it is vital to celebrate short term success along the way. This helps to reinforce that the sacrifices that people within the organisation are making are actually paying off. Rather than waiting till success at the end, creating short term wins can build momentum towards the change.
STEP 7: BUILD ON THE CHANGE.
After every success in the process, analyse what went right and what needs improving. Set goals to continue building on the momentum that has been achieved and encourage continuous improvement.
STEP 8: ANCHOR THE CHANGE IN CORPORATE CULTURE.
This is where the change is institutionalised and becomes a key part of corporate culture. Making continuous effort to ensure the change is seen in all aspects of the organisation is essential in the success of the change.
Explain driving and restraining forces and the relationship between them.
Driving forces:
Are factors that are supporting the change away from the current state.
Restraining forces:
Factors that work against the change. These factors prefer to keep the organisation in its present state.
The idea is to try to remove the restraining forces and increase the driving forces. If the amount of driving and restraining forces are equal the organisation will stay the same and change will not occur. Therefore there needs to be more driving forces than restraining in order to propel the organisation towards change.
What is organisational change?
Organisational change is the adoption of a new behaviour or idea by an organisation. Changes are due to pressures (or foreseeable pressures) from the dynamic business environment.
Explain strategies for change management.
Change can cause resistance from many stakeholders, especially employees. Employees often resist change because they feel isolated, fear, frustration and uncertainty. Managing change effectively is crucial to overcome resistance and restraining forces and ensure the change is successful. Possible strategies for change management fit into the categories of low and high risk
List and explain some low risk strategies for effective change management.
LOW RISK STRATEGIES:
TWO WAY COMMUNICATION:
Being open and honest about the change so that employees fully understand it and its impact to help gain support. A huge part of two way communication is also listening to feedback and answering any questions about the change from stakeholders.
PARTICIPATION:
Involving employees in the change process can help to get them on board with the change. It is more difficult for employees to resist decisions they have been apart of making.
SUPPORT:
Those that are affected by the change need to be supported through the process. This could be training, counselling and support finding new employment. The kind of support that is required depends on the actual scenario.
NEGOTIATION:
Agreements can be struck between management and employees to ensure support for change. Negotiation can employer employees and enhance their support for change.
List and explain some high risk strategies for effective change management.
HIGH RISK STRATEGIES:
MANIPULATION:
Gaining support from employees by selecting the use of facts or deception. This is high risk because it may work, but huge consequences like large resistance, more conflict and industrial action can occur once employees find they have been manipulated. Manipulation essentially involves speaking of the benefits of change but electing not to speak of the negative impacts that may occur as part of the change like job loses.
THREAT:
Forcing employees to embrace the change or receive retribution (payback). Possible threats include retrenchment, loss of promotion, demotion and loss of working conditions. This can force employees to get inline and embrace change but however this will probably just be on the surface and underlying the surface there are probably going to be a lot of negative thoughts which will increase resistance na deli it productivity.
COOPTATION:
Involves the selection of an influential person among the potential resistors to be involved in the development and implementation of the change process. However the role that they play carries very little authority. So yes they are involved but almost just as a symbol to show those resisting change, that someone that also previously resisted change was now on board. The person has no authority and isn’t involved in decision making. This is high risk because if it is found that the selected person has no real input it will lead to even more resistance to change than there originally was and the negative impacts that will follow.
What is the role of leadership in change?
ROLE OF LEADERSHIP IN CHANGE:
- leadership is the ability to influence and motivate individuals to achieve organisational objectives. A leader is able to get employees on the same page and work towards the same goal.
- Change can cause resistance from stakeholders. Leadership can help to overcome this resistance by the manager/ leader looking out for the welfare of employees and still keeping in mind the overall objective.
Name some things that a leader will do during times of change.
- Be able to communicate a clear vision. Important so everyone understands their role and is on the same page.
- listen to employee concerns. As a part of two way communication, not just giving orders but also listening and responding to feedback.
- resolve conflicts that may arise as change is being implemented.
- motivate stakeholders on the benefits of change. Which also helps to persuade those who are currently resisting.
- provide support for those struggling to adapt.
- focus on the needs of employees.
What role does leadership play in reducing resistance to change?
- Be able to communicate a clear vision. Important so everyone understands their role and is on the same page.
- listen to employee concerns. As a part of two way communication, not just giving orders but also listening and responding to feedback.
- resolve conflicts that may arise as change is being implemented.
- motivate stakeholders on the benefits of change. Which also helps to persuade those who are currently resisting.
- provide support for those struggling to adapt.
- focus on the needs of employees.
Impact that change can have on the internal environment (organisational structure)
ORGANISATIONAL STRUCTURE:
Structural changes can occur due to different forces and pressures from the dynamic environments and can result in:
- Flatter structures:
During change the organisation will most likely review the majority of aspects of the internal environment and can often come to the conclusion that there are too many positions in middle management positions resulting in greater responsibility being given to frontline managers and a less hierarchy like structure.
- Outsourcing:
Outsourcing Many of the non-core or even in some cases, core projects to contractors can help keep costs to a minimum and create greater flexibility for the organisation. This will result in some departments and specific functions of the organisation being reduced causing a restructure.
Work teams:
Linked with flatter structures, teamwork allows organisations to be more flexible and responsive. This help raise staff morale through building relationships and in doing so keeps motivation high and generates more creativity.
