Topic 10.1 - Managing change

Question 1

Internal causes for change

Answer 1

• new growth objectives
• new boss appointed
• decision to open up export markets
• increase shareholder dividends

Question 2

External causes of change

Answer 2

• rising customer demand
• economic boom benefits
• closure of competitor
• new laws
• social trends
• economic conditions
• technological advances

Question 3

Incremental change

Answer 3

Change occurs over a period of time in incremental
Small stages
Little resistance

Question 4

Step change

Answer 4

Significant and occurs rapidly
Dramatic and radical
Strategic drift
Resistance

Question 5

Disruptive change

Answer 5

Step change that arises from changes to the external environment
Impacts market as a whole

Question 6

Value of change

Answer 6

• sustain competitive advantage
• changing customer needs and wants
• take advantage of developing technologies
• stakeholders gain from improved productivity and work environment
• change in organisational structure
• being seen to be leading change rather than following it

Question 7

Lewins force field analysis

Answer 7

• driving forced and restraining forces
• equilibrium means no change
• change to occurs means driving forced must exceed the restraining force

Question 8

Examples of driving forces

Answer 8

• need for higher profits
• poor efficiency
• lack of innovation
• need to change culture
• change of leadership
• customer demand
• competition
• legislation and taxes

Question 9

Resistance to change

Answer 9

Self interest
Misunderstanding
Low tolerance of change
Different assessment of the situation

Question 10

Organic structure

Answer 10

• informal
• flexible and fluid
• verbal communication
• decentralised decision making
• change easier to handle

Question 11

Mechanistic structure

Answer 11

• formal
• bureaucratic
• formal communication
• centralised
• standardised policies and procedures
• little need to change

Question 12

Flexible working

Answer 12

Employees have options in terms of working time, working location and the pattern of working

Question 13

Example of flexible working

Answer 13

• part time working
• term time working
• working from home
• flexitime
• career breaks
• job sharing
• annual hour contracts
• mobile working
• shift swapping

Question 14

Benefits of flexible working

Answer 14

• cost
• higher job satisfaction and morale
• attract more applicants
• better customer service

Question 15

Drawbacks of flexible working

Answer 15

• more complex to manage
• invest in technology
• motivate
• loss of capacity

Question 16

Restructuring

Answer 16

changes to the capital structure of the business

Question 17

Delayering

Answer 17

Removing one or more layers of the organisational hierarchy

• cheaper
• short chain of command

Question 18

Information management

Answer 18

How to best cost effectively collect and sift data a firm needs

Question 19

Knowledge management

Answer 19

Useful information that has been interpreted by others to make it even more valuable

Question 20

The value of managing information and knowledge

Answer 20

• improve efficiency

- enhance competitiveness

Question 21

Resistance to change

Answer 21

• self interest
• different assessment of situation
• low tolerance for change and inertia
• misinformation and misunderstanding

Question 22

Self interest

Answer 22

• job security, status and financial position

- own interests ahead of the company

Question 23

Low tolerance and inertia

Answer 23

• things to stay the way they are
• need security , predictability and stability
• low tolerance of change

Question 24

Different assessment of the situation

Answer 24

• disagreement about the need to change
• disagree change or feel they have a better solution
• disagree what is best for the business

Question 25

Misinformation and misunderstanding

Answer 25

- don't understand why change is needed - no compelling reason for change - may think things are better than they actually are

Question 26

Overcoming resistance to change

Answer 26

- education and communication - participation and involvement - facilitation and support - manipulation and co option - negotiation and bargaining - explicit and implicit coercion

Question 27

Education and communication

Answer 27

- why change is needed - help people see logic - helps address misconceptions

Question 28

Participation and involvement

Answer 28

- involve people in the change process | - leads to commitment not compliance

Question 29

Facilitation and support

Answer 29

- support to cope with change | - training, counselling and mentoring

Question 30

Manipulation and co option

Answer 30

co option - bringing specific individuals into roles that are part of change management manipulation - selective use of information

Question 31

Negotiation and bargaining

Answer 31

- incentive to change - offering financial rewards - rewards for leaving

Question 32

Explicit and implicit coercion

Answer 32

- last resort explicit - told exactly what implications of resisting change will be implicit - suggesting negative consequences of resisting