Impact on change

Question 1

Define change management

Answer 1

Is described as a process that ensures a business responds to the environment in which it operates in

Question 2

Why do businesses value change ?

Answer 2

1. External environment is constantly changing
2. Management will have to develop strategies to implement change
3. Employees may be resistance to change

Question 3

Why is change so important to businesses ?

Answer 3

1. Helps them to sustain a competitive advantage
2. Helps them to align business strategies with customer needs and wants
3. Businesses can take advantage of advancements in e.g. technology or the market
4. Stakeholders gain from improved productivity and work environment
5. Allows businesses to improve effectiveness of its communications and decision making

Question 4

Why do businesses feel a need for change ?

Answer 4

1. The business could typically “do better”
2. Desire to increase profitability and performance
3. To increase business efficiency and competitiveness
4. Natural ageing and decline in business
5. Conflict between workforce, poor business relationships
6. Need for greater flexibility in workforce structure
7. Ineffective communication and de-motivation

Question 5

What internal factors influence change in a business ?

Answer 5

1. New leadership
2. New ownership
3. Change in strategic direction or objectives
4. Investment decisions

Question 6

What external factors influence change in a business ?

Answer 6

1. Competitor actions
2. Political, economical, social, technological, legal or environmental factors
3. Globalisation
4. Scarcity of required business resources