10 - Managing Change

Question 1

What Are Causes & Pressures For Change?
(4 Points)

Answer 1

~ To meet objectives.

~ Respond to external forces.

~ Respond to internal forces.

~ Gain a competitive advantage.

Question 2

What Are The Types Of Change?
(4 Points)

Answer 2

~ Internal change.

~ External change.

~ Incremental change.

~ Disruptive change.

Question 3

Describe Internal Change
(3 Points)

Answer 3

~ Change happens from within the business.

~ E.g. Change in leadership and management and staff levels.

~ E.g. Changes from expansion.

Question 4

Describe External Change
(2 Points)

Answer 4

~ Change happens from outside of the business.

~ E.g. PESTLE changes.

Question 5

Describe Incremental Change
(3 Points)

Answer 5

~ Small but frequent changes over a long period of time.

~ To continually adapt to external environment to avoid strategic drift.

~ E.g. Helps to have less resistance for the change.

Question 6

Describe Disruptive Change

Answer 6

Change that is rapid and unexpected, having a dramatic effect on the way in which an industry or business operates.

Question 7

What Is The Value Of Change For A Business?
(4 Points)

Answer 7

~ Able to embrace change and stay ahead of competitors.

~ Engage more employees.

~ Ability to take advantage of opportunities.

~ Ability to react to changing wants and needs, within society.

Question 8

Describe Lewin’s Force Field Analysis
(4 Points)

Answer 8

~ Change management model, looks at a point in time, where there are forces that are for and against change.

~ Helps make a decison, on whether the change is worth it.

~ There are driving forces of change -> people who are in favour of change and are pushing for it to happen.

~ There are resisting forces of change -> people who are against change and are fighting against it happening.

Question 9

Describe ‘The Value Of Flexible Organisations’
(5 Points)

Answer 9

~ Is an organisation that can adapt quickly and effectively to changes in its external environment.

Ways To Become A Flexible Organisation:
~ Restructuring through delayering.

~ Restructuring through flexible employment contracts.

~ Restructuring through organic structures.

~ More use of knowledge and information management.

Question 10

What Are The Advantages Of Being A Flexible Organisation?
(4 Points)

Answer 10

~ More adaptable to changes.

~ More innovative.

~ Increases efficiency.

~ Reduces costs.

Question 11

What Are The Drawbacks Of Being A Flexible Organisation?
(2 Points)

Answer 11

~ Changing towards a flexible organisation, may lead to resistance.

~ Can cause rises in labour turnover.

Question 12

Describe ‘Restructuring Through Delayering’
(3 Points)

Answer 12

~ Removing layers of management, by moving from a taller to flatter hierarchal structure with wider spans of control.

~ Benefits from improving communication, decision making and reducing costs.

~ Can cause job losses, skills losses and experience losses.

Question 13

Describe ‘Restructuring Through Flexible Employment Contracts’
(3 Points)

Answer 13

~ More use of ZHR, job sharing or part time contracts.

~ Ability to adjust staff levels quickly, allowing a company to be more lean.

~ Can result in poor communication and teamwork,
making it harder to manage change.

Question 14

Describe ‘Restructuring Organic Structures’
(3 Points)

Answer 14

~ Moving away from centralised / mechanistic structures to a decentralised / organic structure.

~ Meaning a business is more responsive in a rapidly changing market.

~ Roles are more adaptable, due to more communication.

Question 15

Describe Organic Structures
(4 Points)

Answer 15

~ Flexible, decentralised decision making.

~ Flat structures, wider spans of control.

~ More focused on teams and collaborative work.

~ Better able to manage change, due to improved decision making and communication.

Question 16

Describe Mechanistic Structures
(3 Points)

Answer 16

~ Rigid, centralised decision making.

~ Tall structures, clear chain of command, narrow spans of control.

~ Well defined job roles, allows specialisation.

Question 17

Describe ‘More Use Of Knowledge & Information Management’
(3 Points)

Answer 17

~ Ensuring data within the business, is easy to access and use for decision making.

~ Allowing more effective, faster decision to made.

~ Better able to manage change.

Question 18

What Are Kotter + Schlesinger’s Reasons For Resistance To Change?
(4 Points)

Answer 18

~ Parochial self interest -> only care about the impact on themselves not on the business.

~ Trust issues or misunderstanding -> don’t believe what managers are telling them, due to poor communication.

~ Different assessment -> do not agree with the managers assessment of the change, thinking there a better ways around it

~ Low tolerance for change -> workers fear they do not have the skills to cope with the change, unwilling to reskill.

Question 19

What Are Kotter + Schlesinger’s Solution To Overcoming Resistance To Change?
(6 Points)

Answer 19

~ Education and communication -> help them understand reason for the change.

~ Participation and involvement -> provide a sense of ownership, so they feel part of the whole change process.

~ Facilitation and support -> provide skills and resources to help them feel more confident.

~ Negotiation and agreement -> bargain to win the agreement, can lead to compromises.

~ Manipulation and co-option -> offer rewards to win over key influencers in the business, to get others to agree.

~ Explicit and implicit coercion -> pushing change through, despite resistance.