Unit 4 Outcome 2 Flashcards
Overview of change management.
. All organisations must be able to adopt to a rapidly changing environment by taking a proactive approach to pressures.
. Organisations that do not have strategies to recognise pressures and changes in the environment will be impacted in a negative manner.
. Change is continuous and the only certainty in the businesses environment is that change will occur.
Why is change so important now?
. 20 years ago organisations were operating in stable environments with certainty and little change.
. Change is now rapid unpredictable and will usually impact on all areas of an organisation.
What is organisational change?
This is the process of altering the existing organisation in some way and re-establishing it in a new or modified form. This can occur through modification of corporate culture, implementation of new organisational structures, recruiting employees with new skills or developing different work practices.
Managing and embracing change.
All organisations change. Some changes are forced on an organisation, while others are carefully planned. The ability to manage and in many cases, embrace and adapt to change will increasingly determine an organisation’s competitive advantage and survival.
What are successful managers?
. They are managers which can anticipate and adjust to changing circumstances rather than managers which sweep along passively or get caught unprepared.
. These managers will be proactive rather than reactive.
What is the best way to manage change?
. Manage and embrace it . Successful managers . Be constructive . Evaluate . Predict
What is proactive?
To be proactive is to initiate change rather than simply react to events.
What is reactive?
To be reactive is to wait for a change to occur and then respond to it.
Being constructive to manage change.
Changes must occur at a pave that allow organisation to absorb and integrate them into their operations.
Evaluate change.
. All changes should be evaluates to assess the overall impact. This allows for the organisation to see if there are any negative impacts and therefore allows them to make adjustments if that is the case.
. Poorly managed change usually results in employee resistance, tensions, anxiety, lost productivity and ultimately, unmet objectives.
Managing change through prediction.
. The long-term survival of the organisation depends on the ability if managers to scan the environment, predict future trends and exploit change.
. While change may be the most daunting challenge confronting management, the rewards are great for those who are prepared to accept the challenge.
What are sources if change?
Sources of change refers to where the change comes from. For Large-Scale organisations these pressures can from the internal and external environments.
What are some sources of change from the internal environment?
. Management
. Employees
. Corporate culture
. Policies
Revision of internal environment.
Activities, functions and pressure that occur within an organisation over which it has control.
Explain the following source of change from the internal environment: Management
Management have the responsibility of running a profitable or successful organisation. The poor financial performance of a business would result in management reviewing processes, staff and systems. Management can therefore pressure an organisation to change for example processes in order to be more successful.
Explain the following source of change from the internal environment: Employees
Employees are an integral part of any organisation and will often demand change(eg. initiatives that achieve a work–life balance, such as a flexible and responsive workplace that enables that staff to balance their work and family/personal responsibilities)
Employees working for an organisation expect to be paid fairly, trained properly and treated ethically in return for their vital contribution to production. Employees working in an innovative environment, where ideas are shared and acted on, are likely to recommend changes to policies, production processes or products.
Explain the following source of change from the internal environment: Corporate Culture
Changing corporate culture can be a difficult task given that an organisation’s culture is usually formed over years, through the interaction of employees within the organisation. If corporate culture impedes success, it must be changed. A poor/inappropriate or negative corporate culture can have an adverse effect on productivity and/or competitiveness
Explain the following source of change from the internal environment: Policies
Internal change comes about as new polices are developed and implemented. Policies that are outdated, inappropriate or non-existent are a pressure for change; for example, it is expected that organisations will have an environmental policy
What are some sources of change from the operating environment?
. Customers
. Competitors
. Suppliers
. Interest groups
Revision of operating environment.
This is the environment immediately external to an organisation with which it has close interaction when conducting its business activities.
Explain the following source of change from the operating environment: Customers
To ensure future profitability, an organisation needs to be very responsive to changes in customer tastes and preferences so it can constantly satisfy customers’ needs. The needs and wants of customers/clients change over time, causing them to change their consumer preferences or expectations about an organisation, which pressures an organisation to change accordingly
Explain the following source of change from the operating environment: Competitors
Organisations need to monitor the activities of their competition and determine what effect they may be having in the marketplace. Knowledge of such change enables an organisation to make modifications to its existing business activities and to plan new ones. (Large organisations must keep up with their competitors and change as required in order to remain competitive).
Explain the following source of change from the operating environment: Suppliers
Organisations should constantly be on the lookout for nee or backup suppliers, even when their needs ate being met by their present suppliers. This makes them less vulnerable to supply difficulties.
Factors that affect a supplier’s ability to provide inputs can be a pressure for change for an organisation; for example, industrial action, a price rise or the shortage of a product.
Explain the following source of change from the operating environment: Interest Groups
Some groups seek to directly influence the behaviour of organisations. Trade unions, for example, can bring about change in an organisation, especially in regard to wages and working conditions. Consumer and conversation action groups my attempt to modify an organisation’s behaviour with regard to its products, marketing techniques and operational procedures.