Managing Change

Question 1

What are the causes of change in a business?

Answer 1

• changes in organisational size
• poor business performance
• new ownership
• transformational leadership
• the market and other external factors (pestle)

Question 2

What will issues will a business face due to a change in organisations size?

Answer 2

• maintains company culture
• motivating staff during the expansion
• increased labour costs
• training new stsff

Question 3

What will issues will a business face due to poor business performance?

Answer 3

• need of new objectives and direction
• need new strategies to compete
• need to look at what’s needed to improve performance (redundancy)

Question 4

What will issues will a business face due to new ownership?

Answer 4

• significant duplicates of roles
• clash of cultures
• issue of communication between the two businesses

Question 5

What will issues will a business face due to transformational leadership?

Answer 5

• business will need to reinvent itself to achieve competitive advantage
• new business culture

Question 6

What will issues will a business face due to the market and external factors?

Answer 6

• need of increased RnD
• may need to change the corporate objectives

Question 7

What are the effects of change?

Answer 7

1. Competitiveness
2. Productivity
3. Financial performance
4. Stakeholder

Question 8

What is scenario planning?

Answer 8

A process of anticipating possible changes in a business’s situation and devising ways of dealing with them

Question 9

What are the key risks a business may have to identify?

Answer 9

1. Natural disasters
2. IT system failure
3. Loss of key staff

Question 10

Degrees of risk mitigation?

Answer 10

1. Risk acceptance
2. Risk avoidance
3. Risk limitation
4. Risk transference

Question 11

What is risk acceptance?

Answer 11

when a business acknowledges that the potential loss from a risk is not great enough to warrant spending money to avoid it

Question 12

What is risk avoidance?

Answer 12

The em limitation of hazards, activities and exposures that can negatively affect an organisations assets

Question 13

What is risk limitation?

Answer 13

Risks which are identifiable but are also manageable such as whaling what is said to reduce the possibility of being sued

Question 14

What is risk transference?

Answer 14

Moving the risk onto others through some sort of insurance

Question 15

What are the ways a business can plan for risk mitigation?

Answer 15

1. Business continuity
2. Succession planning

Question 16

What is business continuity?

Answer 16

The capability of the business to continue delivery of products or services at acceptable levels following a disruptive incident

Question 17

What is succession planning?

Answer 17

the capability of the business to continue delivery of products or services at acceptable levels following a disruptive incident

Question 18

What are the two types of change?

Answer 18

Panned and emergent

Question 19

What is planned change?

Answer 19

Refers to change which is planned by the top management of a business

Question 20

What is emergent change?

Answer 20

change that happens at any level in the organisation and is the result of an event or need