Change

Question 1

Define MANAGING CHANGE

Answer 1

Managing change is the combination of activities involved in planning for, implementing, and monitoring the process of change.

Question 2

What are the causes of internal change?

Answer 2

• Change in organisational size
• Poor business performance
• New leadership
• New ownership
• Transformational leadership
• Change in strategic direction and corporate objectives
• Significant investment decisions
• Changes to the scope of business activities
• Changes to the organisational structure

Question 3

What are the causes of external change?

Answer 3

• Significant competitors actions
• Political and legal changes
• Significant economic changes
• Long term changes in society
• Technological changes

Question 4

What are the 6 main causes of change?

Answer 4

1. Organisational size - businesses can both grow and contract depending on their objectives
2. Poor business performance in terms of customer numbers, sales, profits, and reputation
3. New ownership - could be internal (e.g. growth from sole trader to Ltd. to PLC), external (through a merger or takeover) or a management buyout (managers buying the company from shareholders).
4. Transformational leadership - new CEO or leadership team come with their own vision and objectives, bringing new ideas, new strategic direction and possibly a change in culture.
5. P.E.S.T.L.E - the external environment activities.
6. Changes in the market - may be imposed from outside (gov. regulations,. lack of supplies) or due to an existing competitor or a whole new entrant.

Question 5

What are the factors influencing how organisations respond to change?

Answer 5

1. Speed of change - this will affect the control a business has and how quickly they will need to respond. It can be incremental or step.
2. Size of the organisation - large businesses are generally less adaptable, but this is not a blanket rule as it depends on the number of employees, organisational structure, geographical spread , organisational culture and leadership.
3. Organisational culture - this will influence how willing the business is to respond to change, how they respond to change, leadership style, attitudes to risk and ability to innovate.

Question 6

Define INCREMENTAL CHANGE

Answer 6

Incremental change is where change occurs over a period of time incremental, small stages.

Question 7

Define STEP CHANGE

Answer 7

Step change is the opposite of incremental change and is where change occurs significantly and rapidly. Sometimes, step change is required in response to very poor business performance.

Question 8

When may the culture of a business need changing?

Answer 8

• There is a deterioration in HR data
• Processes become more bureaucratic
• Declining quality and customer service.
• Innovation is no longer valued
• Leadership decision making becomes inconsistent.

Question 9

Why may employees be resistant to change?

Answer 9

• Self - interest and wanting to put their own needs first.
• Different assessment of the situation and different viewpoints.
• Low tolerance to change/inertia
• Misinformation or misunderstanding

Question 10

What are the 6 ways of overcoming resistance to change?

Answer 10

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

Question 11

What can change effect?

Answer 11

• Competitiveness
• Productivity
• Financial performance
• Stakeholders