Internal Environment - Managing change

Question 2

Implementing changes - Top-down (Costs and Benefits)

Answer 2

Advantages:

• Top-level management have a holistic overview and can make changes in line with business objective.
• This method works best in a crisis as fast decision making is needed
• If change is inevitable, this is an efficient method of implementation, especially when the factor is external

Disadvantages:

• Staff resistance can be high, if they feel they are being overlooked or undervalued
• Employees on the ground with the skills needed but this method does not take that into account
• May result in high levels of staff turnover
• May create a culture of low morale

Question 3

Implementing changes - (Costs and Benefits) Participative

Answer 3

Advantages:
- Change is more likely to be successful as everyone has been involved

• This fosters trust between management and employees
• Reduces staff resistance and improves morale
• Allows for staff skills, knowledge and experience to contribute to the strategy

Disadvantage:
- They are often time consuming, involving lengthy discussions through quality circles and focus groups

• Trust can be easily be damaged, either management retract the empowerment or employees abuse it
• Not effective in emergencies or crisis

Question 4

Implementing changes (Costs and Benefits) Action centred

Answer 4

Advantages:
- Allows a business to try out possible solutions on a small scale before making a permanent change

• Explores different options and therefore contingency strategies are often formed
• Allows employees to have an input and pilot aspects of change leading to better decisions

Disadvantages:

• This doesn’t work when the change is external e.g., government legislation
• Piloting ideas can be a lengthy and expensive process
• Often used as continuous improvement and may not be suitable for large changes

Question 5

Implementing changes (Costs and Benefits) Piecemeal

Answer 5

Advantages:
- Employees become accustomed to the change as it is gradually introduced which can build confidence for the future

• Smaller changes are less likely to result in staff resistance
• Gradual change is easier to manage and control reducing risk

Disadvantage:

• A sense of overall direction may be lost as the change is “bitty”
• Smaller components of the changes may be in conflict with each other
• Decentralised changes may not be fairly rolled out across

Question 6

What are Change Agents

Answer 6

• They are responsible for bringing about change, they can be individuals of, groups of employees, external expertise etc.
• They look for the issues, then manage employee expectations and set realistic goals. They are also able to educate colleagues and ease their concerns
• Also responsible for groups of colleagues if using “negotiated or participative” approach or choosing correct “Pilot” if using actioned centred
• They can also buy in expert consultants then coordinate with management to ensure process is smooth

Question 7

Implementing changes

Answer 7

• Reached through a bargaining process between employees, employers and other stakeholders
• Communication flows both ways with managers making use of employees ideas and opinions
• Trade unions may be involved to ensure all employees are heard

Question 8

Managing Change - Kurt Lewin (Stages)

Answer 8

• Unfreezing
• Transforming
• Refreezing

Question 9

Managing Change - Kurt Lewin (Unfreezing)

Answer 9

• Identify possible changes/problems, poor sales etc.

· Communicating the need for change/vision.

· Idea generation for effective solutions.

· Consultation with stakeholders.

· Requires trust and reassurance – that change is stressful.

· Getting people used to the idea.

· Breaking down beliefs and assumptions - we always did it that way.

· Remain engaged with employee concerns.

Question 10

Managing change - Kurt Lewin (Transforming)

Answer 10

Introduction of new technology, work patterns, products, services, cultures etc.

· Achieving the desired outcomes · Implement change management workshops to display change.

· Empower employees to be involved in decision making.

· Reward staff for changing. · Continue communicating the benefits.

· Be persistent change takes time to embed.

Question 11

Managing change - Kurt Lewin (Refreezing)

Answer 11

• The new becomes the steady-state and familiar.

· Note the danger of becoming rigid. Change should be ongoing.

· Reinforce the change by offering further development.

· Prevent regression into old habits.

· Use evaluation techniques to understand success of change.

· Ensure resources and support are provided to sustain the change.

Question 12

Barriers to an effective Change Agent

Answer 12

• Lack of experience in managing change – internal change agents may not have co-ordinated change in the past but will be familiar with the firm’s policies and practice.

· Degree of skill of the change agent – external change agents are likely to have greater expertise in dealing with change in a variety of situations.

· Degree of respect and charisma of the change agent – external change agents often face greater resistance from staff.

· Organisation culture may be extremely traditional or hard to break.

· Lack of resources such as funding, qualified staff, available staff, technology and ICT etc.