Flashcards in 12 BUS Ch 7- Change Management Deck (60):
Any alteration in the internal or external environments
The adoption of a new idea or behaviour by an organisation
To initiate change rather than simply react to events
To wait for change to occur and then respond to it
What can poorly managed change result in?
What does change require?
~ Responsive management structures
~Strong leadership skills
What are the internal sources of change?
3. Corporate culture
How do the internal factors contribute to change?
1. Management- reviewing processes, staff and systems, implementing new agreements and strategies.
2. Employees- sharing ideas, innovating products, requesting better working conditions.
3. Corporate culture- whether it is welcoming to change or repels it.
4. Policies- development and implementation of new polices, or amending old ones.
Sources of change in the Operating environment
4. Interest groups
How can factors in the operating environment influence change?
1. Customers- Their preferences and tastes change.
2. Competitors- their activities can determine where the business is situated in the marketplace.
3. Suppliers- their activities can affect supply availability.
4. Interest groups- influential in regards to the business' products, marketing techniques and operations
A contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow rate of economic growth.
Emissions trading scheme
Regulates the buying and selling of permits to emit greenhouse gasses.
Sources of change in the macro environment
1. Economic factors
2. Political and legal forces
3. Technological forces
4. Global forces
5. Geographic forces
6. Social forces
How do factors in the macro environment influence change?
1. Economic- the cycle of 'booms and busts' in the economy can determine business activity.
2. Political and legal- the creation of new laws.
3. Technological- new technology will make a business more competitive.
4. Global- practices that are implemented to assist globalisation.
5. Geographic- strategies in place to manage exports, currency fluctuations, diverse customer base.
6. Social- society's attitudes and values
Outlines the process of determining which forces drive and which resist a proposed change.
Forces that support the change
Forces that work against the change
An unenthusiastic response from management to proposed change
Which are the main driving forces within a business?
Those usually in the internal environment
What are the restraining forces?
1. Management- hasty decisions, unclear decisions.
2. Employees- worried that they cannot adapt to new procedures, staffing considerations.
3. Time- not enough time, change takes too long and can often be irrelevant to the time once it can be implemented.
4. Competitors- dominant competitors can deter change.
5. Low productivity- change may result in corporate culture disruption, low staff morale, fear of unknown and lack of security.
6. Organisational inertia- staff do not want to move outside their comfort zones, desire a safe and predictable status quo.
7. Legislation- new laws place restrictions on operational practises and procedures.
8. Costs- if they aren't well informed or calculated correctly.
What are the main financial costs of change?
1. Purchasing new equipment.
2. Redundancy payments.
3. Retraining the workforce.
4. Reorganising plant layout.
Change management process
The sequence of steps that a manager would follow for the successful implementation and adoption of change.
Someone who helps people achieve an objective by providing unobtrusive assistance
Kotter's 8 step change management model
1. Create urgency.
2. Form a powerful coalition.
3. Create a vision for change.
4. Communicate the vision.
5. Remove obstacles.
6. Create short-term wins.
7. Build on the change.
8. Anchor the change in corporate culture.
A person or group of people who act as catalysts, assuming responsibility for managing the change process
What do low-risk strategies rely on to be successful?
What are some low-risk strategies for reducing resistance to change?
-Two way, open communication
-Allowing employee involvement
-Articulating the purpose of the change, what it is, positives and negatives.
-Building trust and offering support.
What are the benefits of low risk strategies?
1. Open communication builds trust
2. Support can boost the morale of other staff.
3. Good training programs inspire confidence
4. Encouraging negotiation can empower employees to support the change and can build confidence and trust.
5. Allowing employee participation can establish a positive corporate culture.
Exerting undue influence over an employee that may be deceptive in order to get them to behave a certain way.
The selection of an influential person among the potential resistors to be involved in the development and implementation of the change process.
The use of power to force change resistors to conform by giving them an ultimatum
What are the negative effects of using manipulation, cooptation and threat?
It may cause the recipients to submit but may cause more resentment which can lead to future:
Corporate social responsibility
Managing organisational processes in order to produce an overall positive impact on the community
Triple, bottom line
The social, economic and environmental performance of an organisation
When economic growth meets the needs of the present population without endangering the ability of future generations to meet their needs
A comprehensive report of what a business had done, and is doing in regard to social issues that affect it
The application of moral standards to organisational behaviour
Corporate code of conduct
A set of ethical standards for managers and employees to abide by
What change management strategies can be put in place in terms of corporate social responsibility?
~Adopting policies of conservation (recycling etc)
~Preparing a sustainability report
~Modifying production processes so that they are ecologically sustainable
What change management strategies can be implemented in terms of business ethics?
~encourage honesty and integrity
~Stakeholders dealt with honestly and fairly
~Avoid using misleading or deceptive product descriptions
~Ensure a safe working environment and build trust in employees
~Implement a corporate code of conduct
What are some change management strategies in response to technological development?
~Analysis of the effects of new technology
~Offer training and development for employees that need to learn new skills.
~Recruit new employees with necessary skills
~Offer support and manage employees of may be made redundant
The process of positively influencing and encouraging individuals to set and achieve objectives.
What skills should a good leader have?
~Faith and confidence in employees' abilities
~Ability to resolve conflict
Why would employees be more willing to accept change if good leadership is shown?
-They may feel that they can trust their manager.
-They may feel supported.
-They may feel as if their welfare is being looked after.
-Morale and confidence is boosted.
-Fears of change are diminished
Results in a complete restructure throughout the whole organisation.
Minor changes, usually involving only a few employees
Changes in the organisation's structure
Contracting of some organisational operations to outside suppliers
Involves people who interact regularly and coordinate their work towards a common goal.
Production by computer controlled machines that can adapt to various versions of the same operation
What are the main structural changes?
2. Flatter organisational structures
3. Work teams
Why may an organisation outsource its operations?
~To contain costs
~Survive in a global marketplace
Benefits of outsourcing?
~Able to produce goods and services more efficiently and effectively.
Limitations of outsourcing?
~Job losses may occur
~New jobs need to be created
-Redundancy payments, hiring new employees, training new employees
Why may an organisation move towards a flatter structure?
~To create a more positive, participative corporate culture.
~To share ideas in a more timely manner.
~To create a more supportive environment.
~To facilitate the means for continuous improvement
What are the benefits of an organisation developing work teams?
~Allows organisation to be more flexible and responsive.
~Encourages participation and communication.
~Opportunities to share ideas and be creative.
~Motivates employees to contribute to the organisation.
What aspects of an organisation can teamwork change?
How can corporate culture be impacted by change?
~Different attitudes, values and mindsets may need to be adopted to satisfy the demands of a change
How can change impact Human Resource Management?
~Recruitment and selection processes
~Termination procedures if redundancy occurs
~Performance appraisals and reward programs to reinforce new behaviours.
~Changes to communication methods to facilitate more autonomous and empowered employees.
~Flexible working arrangements to be introduced to attract and maintain skilled employees.
~Clear vision and benefits of change to be communicated