3.10

Question 1

Internal factors for change

Answer 1

• Changing leadership / management
• Changing performance
• Changes to staff
• Business growth
• Business type

Question 2

External factors for change

Answer 2

• New technology
• Changing consumer tastes and views
• Changing economy
• New laws
• Changes to competition

Question 3

Incremental change

Answer 3

Gradual or small-scale adjustments made to existing processes, products with the intention of improvement without altering the status quo

Question 4

Disruptive change

Answer 4

Radical shifts that significantly alter industry dynamics, business models or market structures, often leading to the displacement of established players

Question 5

Lewin’s force field analysis contents

Answer 5

• Forces for change on the left
• Forces against change on the right
• Scores of their significance (1 to 5)
• The total for both sides

Question 6

Restructuring

Answer 6

A strategic reorganisation of an organisation’s structure, operations or resources

Question 7

Advantages of restructuring

Answer 7

• Maximising efficiency of decision-making, communication and division of tasks
• Reduced costs
• Strategic clarity

Question 8

Delayering

Answer 8

The process of reducing the number of hierarchical levels or management layers

Question 9

Advantages of delayering

Answer 9

• Reduced costs
• Improved communication
• More responsibility at lower levels

Question 10

Disadvantages of delayering

Answer 10

• Job losses
• Overwhelmed managers
• Fewer advancement opportunities

Question 11

Mechanistic structure

Answer 11

An organisational design with centralised decision-making, clear hierarchies, formalised roles and procedures and standardised processes

Question 12

Organic structure

Answer 12

An organisational design with decentralised decision-making, flexible roles and responsibilities and fluid communication channels

Question 13

Knowledge and information management

Answer 13

Collection, organisation, distribution and application of knowledge and information within a business

Question 14

Advantages of knowledge and information management

Answer 14

• Knowledge from ex-employees is still kept
• Staff can share experiences to prevent future problems
• Current position can be assessed quickly meaning flexibility

Question 15

Disadvantages of knowledge and information management

Answer 15

• Data must be maintained and updated
• Large business will need to employ specialists
• Requires time and effort from employees

Question 16

Advantages and disadvantages of flexible employment contracts on managing change

Answer 16

• Flexible when it comes to demand
• Can bring in skilled, capable workers
• Poor communication and teamwork
• May mean less productivity

Question 17

Barriers to change

Answer 17

• Organisational structure
• Resources
• Poor management
• Passive resistance
• Active resistance

Question 18

Kotter and Schlesinger’s four reasons for resistance

Answer 18

• Self-interest
• Misinformation and misunderstanding
• Low tolerance of change
• Different assessment of the situation

Question 19

Kotter and Schlesinger’s six ways of overcoming resistance to change

Answer 19

• Education and communication
• Participation and involvement
• Facilitation and support
• Manipulation and co-option
• Negotiation and bargaining
• Explicit and implicit coercion