unit 10

Question 1

2 type of change

Answer 1

-external
-internal

Question 2

external examples

Answer 2

-economic conditions
-social trends
-laws

Question 3

internal examples

Answer 3

-delayering
-expansion
-new management

Question 4

main types of change

Answer 4

-incremental
-step change
-disruptive

Question 5

incremental change

Answer 5

-changes that happen over a period of time as the business develops.
-happens in small stages
- usually theres little resistence

Question 6

step change

Answer 6

• This is a significant change that occurs rapidly and it likely will encounter resistance
• this change is dramatic and radical
• usually it is required when a business has suffered from strategic drift

Question 7

disruptive change

Answer 7

This is a type of step change and usually arises from change in external environment
e.g technology

Question 8

what is the value of change

Answer 8

it is an essential part of business life

-external environment is constantly changing, which makes change a constant as well

• all successful businesses look to make internal change a part of the way they operate.

Question 9

benefits of embracing change

Answer 9

• helps sustain a competitive advantage.

-It aligns business strategy with changing customer need and wants.

-stakeholders gain from improved productivity and work environment

• Change in organisational structure = better communication and decision making

Question 10

what is lewins force field analysis

Answer 10

force field analysis provides an overview of the balance between forces driving change in a business and the forced resisting change.

Question 11

who is lewin

Answer 11

american social psychologist

• argued that successful businesses tend to be constantly adapting to their environment and changing, rather than being inflexible

Question 12

what does lewins force field analysis look like

Answer 12

Question 13

explanation of the force field analysis

Answer 13

• there are forces driving change and forces restraining it.
• when the driving force and resistance force are in equilibrium there will be no change
• in order for change to occur the driving force must exceed the restraining force

Question 14

internal examples of forces driving change

Answer 14

-need for higher profits
- poor efficiency
-lack of innovation
- need to change culture
- change of leadership

Question 15

external examples of forces driving change

Answer 15

-customer demand
- competition
- legislation and taxes
-political environment
- ethics and social values
- technological change

Question 16

resistance to change.
good or bad

Answer 16

a degree of resistance is normal, change can be disruptive and stressful

• a degree of scepticism can be healthy especially where there are weaknesses in the proposed changes

however resistance will also slow the achievements of organisational objectives

Question 17

why change is resisted

Answer 17

self interest
-individuals are concerned with the implactations for themselves

misunderstanding
- communication problems
-inadequate information

low tolerance of change
-sense of insecurity

different assessment of the situation
- disagreement over the need for change
- disagreement over the advantages and disadvantages

Question 18

what is a flexible organisation

Answer 18

a flexible organisation is one that is able to adapt and respond relatively quickly to changes in its external environment in order to gain advantage and sustain its competitive position

Question 19

how important is organisational structure

Answer 19

the structure of an organisation helps determine how effectively it can identify the need for change and also respond to the necessary change

Question 20

what are the two approaches to organisational structure

Answer 20

• organic structure

-Mechanistic structures

Question 21

organic structure

Answer 21

-informal
-flexible and fluid(easy to change)
-favours verbal communication
-Associated with decentralised decision-making and empowerment
- find change easier to handle

Question 22

mechanistic structure

Answer 22

-formal
-bureaucratic (hard to change)
-formal communication methods
-associated with centralised decision-making and supervision
-favours standardised policies and procedures
-little perceived need to change

Question 23

flexible organisation

Answer 23

-use flexible working
- flat hierarchies
-culture embraces change
-quick decision making

Question 24

what is delayering

Answer 24

removing layers of management from the hierarchy of the organisation

Question 25

why we should understand the organisational structure

Answer 25

-shows the management hierarchy in a business -works from top to bottom -also illustrates span of control line management chain of command

Question 26

levels of hierarchy

Answer 26

the number of layers of management or supervision in the organisational structure

Question 27

why we want to delayer tall organisational structures

Answer 27

-key features of tall = many levels of hierarchy+ narrow span of control -allows tighter control(less delegation) -takes longer for communication to pass through the layers more layers = more staff = higher costs

Question 28

benefits of delayering

Answer 28

-lower labour costs(main benefit) - faster decision-making -shorter communication paths -stimulating employee innovation also associated with -widening spans of control -greater emphasis on teamworking and empowerment

Question 29

drawbacks of delayering

Answer 29

-often significant one-off costs of making managers redundant -increased workloads for managers who remain -impact of redundancies on organisational morale -loss of expertise

Question 30

what is flexible working

Answer 30

working arrangements where employees have options in terms of working time, working location and the pattern of working

Question 31

examples of flexible working

Answer 31

working from home part-time working annual hours contract self employment

Question 32

main benefits of flexible working for a business

Answer 32

-cost-potentially significant savings on fixed costs(e.g less space) - higher job satisfaction and employee morale if employees who want to work flexibly are allowed to do so - may attract more applicants for available jobs - better customer service - e.g ability to offer 24/7 services

Question 33

drawbacks of flexible working (for a business)

Answer 33

-more complex to manage -investement required in technology and other support to make flexible working effective -potential impact on motivation from greater remote working(e.g increased isolaton, work/life balance) -loss of capacity/capability if key employees reduce their hours

Question 34

who come up with the four causes of resistance to change

Answer 34

Kotter and Schlesinger

Question 35

what are Kotter and Schlesingers 4 causes

Answer 35

-self interest -low tolerance for change/ inertia -different assessment of the situation -misinformation and misunderstanding

Question 36

self interest

Answer 36

-self interest is a powerful motivator -arises from a perceived threat to job security, status and financial position. understandable-why would you wat to lose something you believe to be valuable? -individuals often place their own interests ahead of those of their organisation, particularly if they dont feel a strong loyalty to it

Question 37

low tolerance/inertia

Answer 37

-many people suffer from inertia or reluctance to change, preferring things to stay "The way they are" - Many people need security, predictability and stability in their work -if there is low tolerance of change(perhaps arising from past experience) then resistance to change may grow

Question 38

different assessment of the situation

Answer 38

here there is disagreement about the need for change or what that change needs to be some people may simply disagree with the change proposed, or they may feel hey have a better solution This is different from "self-interest" - the resistance here is based on disagreement about what is best for the business

Question 39

misinformation and misunderstanding

Answer 39

people don't understand why change is needed, perhaps because they are misinformed about the position of the business perception may be widespread that there is no compelling reason to change perhaps even an element of people fooling themselves that things are better than they really are

Question 40

what are Kotter and Schlesingers six ways of overcoming resistance

Answer 40

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

Question 41

education and communication

Answer 41

-the starting point for successful change is to communicate effectively the reasons why change is needed. -honest communication about the issues and the proposed action helps people see the logic of change. -Effective education helps address misconceptions about the change, including misinformation or inaccuracies -Education and communication are unlikely to be successful in the short-term. They need to be delivered consistently and over a long-period for maximum impact

Question 42

Participation and involvement

Answer 42

• Involvement in a change programme can be an effective way of bringing "on-board" people who would otherwise resist • Effective participation often leads to commitment, not just compliance • A common issue in any change programme is just how much involvement should be permitted. Delays and obstacles need to be avoided

Question 43

Facilitation and support

Answer 43

• Kotter & Schlesinger identified what they called "adjustment problems" during change • Some people will need support to help cope with change • Might include training, counselling and mentoring as well as simply listening to the concerns of people affected • If fear and anxiety is causing resistance to change, then facilitation and support is particularly important

Question 44

Manipulation and co-option

Answer 44

• Co-option involves bringing specific individuals into roles that are part of change management (perhaps managers who are likely to be otherwise resistant to change) • Manipulation involves the selective use of information to encourage people to behave in a particular way • Whilst the use of manipulation might be seen as unethical, it might be the only option if other methods of overcoming resistance to change prove ineffective

Question 45

Negotiation and bargaining

Answer 45

• The idea here is to give people who resist an incentive to change - or leave • The negotiation and bargaining might involve offering better financial rewards for those who accept the requirements of the change programme • Alternatively, enhanced rewards for leaving might also be offered • This approach is commonly used when a business needs to restructure the organisation (e.g. by delayering)

Question 46

Explicit and implicit coercion

Answer 46

• This approach is very much the "last resort" if other methods of overcoming resistance to change fail • Explicit coercion involves people been told exactly what the implications of resisting change will be • Implicit coercion involves suggesting the likely negative consequences for the business of failing to change, without making explicit threats • The big issue with using coercion is that it almost inevitably damages trust between people in a business and can lead to damaged morale (in the short-term)

Question 47

Handy's Four Classes of Culture Model

Answer 47

Question 48

Power culture

Answer 48

• Control radiates from the centre • Concentrates power among a few • Few rules and little bureaucracy •Swift decisions are possible

Question 49

Role Culture

Answer 49

• People have clearly delegated authorities within a highly defined structure • Hierarchical bureaucracy • Power derives from a person's position • Little scope exists for expert power

Question 50

Task Culture

Answer 50

• Teams are formed to solve particular problems • Power derives from expertise as long as a team requires expertise • No single power source • Matrix organisation • Team may develop own objectives (a risk)

Question 51

Person cultureb

Answer 51

• People believe themselves to be superior to the business • Business full of people with similar training, background & expertise • Common in firms of professionals - e.g. accountants & lawyers • Power lies in each group of individuals

Question 52

Handy's Culture Types and Leadership style?

Answer 52