3.6.2 Key Factors In Change

Question 1

what are the 4 key factors in managing change?

Answer 1

1 organisational culture
2 size of organisation
3 time/speed of change
4 resistance to change and how it is managed

Question 2

how does organisational culture influence how change is managed

Answer 2

• organisational culture can either be open or resistant to change
• open culture views change as a way to improve, firms operating in a dynamic market need to be open as they must be adaptable to stay competitive
• the success of mergers and takeovers (type of change- changing organisational size) is dependent on the compatibility of cultures

Question 3

how does organisational size influence how change is managed

Answer 3

• large firms may find it difficult to communicate the need for change and its importance
• this will result in low morale and inconsistencies in business practice
• small firms may find it difficult to implement effective change as they might not have the finances or resources
• but they can be more flexible and make decisions quickly
• HOWEVER this relies on having a dynamic leader who isn’t too dominant and set in their ways

Question 4

how does time/speed of change influence how the change occurs

Answer 4

• incremental change = gradual small changes over time
• disruptive change = sudden large changes
• the speed of change should be appropriate to what the business requires, a business in a dynamic market or one that’s performing badly would need disruptive change WHEREAS a business that is resistant to change may benefit more from incremental change

Question 5

why may stakeholders be resitsant to change

Answer 5

• employees may not understand why the change is necessary or lack the confidence that they will be able to manage the change
• suppliers will be reluctant to change their processes to suit the firm
• customers may be resistant to changes in the product or prices
• shareholders may be resistant to change due to fear of business failure

Question 6

how can resistance to change be managed by the business

Answer 6

• raise awareness of the reasons for the change
• involve the key stakeholders in implementing the change
• support employees through the change with appropriate training
• manipulate the information regarding the change to overemphasize the importance and urgency
• threaten stakeholders that are not willing to comply with the change