Managing change

Question 1

What are the causes of change?

Answer 1

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

Question 2

What are the key factors in change?

Answer 2

• The organisational culture
• the size of the organisation
• the speed of change
• Managing the resistance to change

Question 3

How might a business manage resistance to change?

Answer 3

By scenario planning

Question 4

What is scenario planning?

Answer 4

The process of identifying uncertainties that may affect the future of the business and putting in place procedures to deal with these events if they occur

Question 5

What is risk mitigation?

Answer 5

Actions taken by a business to minimise or eliminate risk through a process of identifying, assessing and prioritising

Question 6

What are the forms of risk mitigation?

Answer 6

• Business continuity (operate during times of uncertainty)
• Succession planning (plan for loss of key member of staff)
• Contingency planning (prepare for unexpected and potentially disastrous events by developing alternate strategies)

Question 7

What are the four degrees of mitigation?

Answer 7

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