What are the types of change?
- Internal
- External
- Disruptive
- Incremental
What is internal change?
When root cause of change comes from inside the business
What is an example of internal change?
- Changess in leadership may cause a new structure or culture
What is external change?
When root cause of change comes from outside the business
What is an example of external change?
- Changes in economic environment may mean that interest rates rise and need to reduce gearing
What is disruptive change?
Extreme type of change to products or processes that irreversibly alters the industry or market
What is an example of disruptive change?
Online music streaming platforms like spotify that replaced physical cd albums
What is incremental change?
Small but frequent changes over time and must always adapt to external environment to avoid strategic drift
What is Lewis Force Field analysis model?
A change management model that focuses on a point in time and the factors for and against change
What does Lewin’s Force Field analysis model consist of?
Driving forces for the change and restraining forces which are obstacles against the change
In the middle is the present or desired state
What is an example of driving forces towards change in Lewin’s model?
- Net incomes falling
- Higher customer complaints
- Increased number of rivals
What is an example of restraining forces in Lewin’s model?
- Trade unions
- Employee satisfaction
- Local community
What is the positive value of change?
- can create number of opportunties for business like creating new markets
- can revaulate what they do to improve productivity, efficiency, quality and profitability
What is the negative value of change?
- many stakeholders will see change as a threat and if the changes aren’t managed properly it will result in failure
What is a flexible organisation?
An organisation that can adapt to changes in external environment quickly and effectively
What are the advantages of being a flexible organisation?
- Adaptable to meet consumer tastes and changes in demand
- Efficiency increased because less waste and optimised resource usage, reducing costs
What are the disadvantages of being a flexible organisation?
- can cause resistance to change from employees bc they may think job is at risk
- coordination issues
- have to act quickly and work harder so more employee burnout and high labour turnover
What is the benefit of restructuring through flexible employment contracts?
- ability to adjust staff levels and reduce expenses
- diff types of people increase diversity
What benefit does restructuring through delayering have?
- Removing layers of manangement to create flatter structure makes communication easier, more delegation and faster decision making
What is the value of knowledge and information?
- technology gives greater insight to changes ahead so can plan and manage
What is a mechanistic structure?
- hierarchal and rigid
- clear lines of authority
- ideal for stable environments
What is an organic structure?
- flexible
- decentralised
- focused on employee empowerment
- ideal for uncertain environments
What are Kotter + Schlesinger’s reasons for resistance to change?
- self interest
- different assesment
- low tolerence for change
- misunderstanding
What is self interest as part of kotter’s model?
employees have narrow outlook and only care about the impact change has on them, not the business
