change Flashcards
1
Q
what causes businesses to change
A
- introduction to new technology
- change in competition
- change in consumer taste
- new legislation
- labour markets change
- change in economic conditions
- change in ownership
2
Q
what markets are likely to change often
A
- tech markets due to innovation
- fashion due to change in consumer taste
3
Q
what are internal causes of change
A
- change in management styles
- change in business ownership
- change in business size
- introduction of new technology
4
Q
What are external causes of change
A
- introduction of new technology
- labour markets
- change in economic conditions
- competition
- change in consumer taste
- new legislation
5
Q
What are change in business size
internal causes of change
A
- if a business grows organically they may expand their product range
- developing new distribution channels
- rapid organic growth can happen which can put pressure on liquidity, can also put pressure on staff as they may need to learn new skills
rationalisation may occur - reduction in staff responsibilities
5
Q
labour market
external causes of change
A
- minimum wage, living wage, employment protection, increases maternity pay will all push up costs
- recessions will increases supply of labour and push down costs
- immigration policies and expansion of EU membership will increases supply of immigrant workers
5
Q
planned change
A
- creates internally and is structured and timetabled
- clear objectives for the changes are established
6
Q
unplanned changes
A
- this occurs as a response to a shock to the business and are often unstructured and under resourced
- usually a response to external changes
6
Q
what arew the effects of change
A
- shorter product life cycle
- demised brand loyalty
- new product needs to be developed
- production methods will need to be changed
- retaining in the workforce
- flexible workforce
- the need to comply with constantly changing legislation
7
Q
effects of change
shorter product life cycle
A
- bring threats and opportunities of retailers and manufactures
- products must pay a return immediately
- little incentive for long term investment
- returns can be improved by seeking new markets for products
- market development
8
Q
effects of change
dimished brand loyalty
A
- new entrants find it easier to grab market share and existing businesses have to fight to maintain sales
- market costa are increases to maintain brands and introduce new products
9
Q
effects of change
new products need to be developed
A
- goods are seen as more disposable ands consumers are constantly looking for better quality products
- businesses need to be aware of possible future consumer tastes and makes sure to prepare to respond to market changes
10
Q
effects of change
production methods will need toe be chnaged
A
- to match changing consumer demands
- this will require spending on R&D and production technology
- new products needs continually, spending required on new ideas and improving existing products
- investment on productivity must be fined
- as a consequence capital good are likely to be out of date faster and this increase pressure on returns from large scale capital investments. this encourages businesses to contract out manufacturing
11
Q
effects of change
retraining the workforce
A
- skills mismatch the problems
- need to adapt to new technologies
- training and recruitment costs increased
12
Q
effects of change
flexible workforce
A
- ability to respond quickly to change
13
Q
effects of chnage
the need to comply with constantly changing legislation
A
- this has the effect of raising the cost of the business
14
Q
what are effective change management
A
- employee preparation
- increases R&D expenditure
- additional capital investments
15
Q
effective chnage management
employee preparation
A
- This may involve reskilling
to enable employees to carry out new tasks effectively - training will make a workforce more flexible and adaptable, enabling them to meet the demands of change.
16
Q
effective chnage management
Increased research and development expenditure
A
- Increased expenditure on R & D is used both in preparation for change, and as a reaction to change
17
Q
effective chnage management
additional capital investments
A
- Change can create the need for investment in new technology and new equipment.
- change is an expensive undertaking
18
Q
Storey’s Four Methods of Implementing Change
A
- negotiated Total Package
- Negotiated Piecemeal Initiatives
- Imposed Piecemeal Initiatives
- Imposed Total Package
19
Q
Negotiated Total Package
A
- change implemented will be based on agreement between management and workers
- Trade unions will be involved
- more likely to result in a coordinated process of change which is understood, and accepted, by all stakeholders
- requires a good deal of preparation
and expenditure, may not always be possible in a highly competitive and difficult business environment
20
Q
Negotiated Piecemeal Initiatives
A
- changes will happen gradually
- agreed on change through negotiation and consultation with the workforce
21
Q
Imposed Piecemeal Initiatives
A
- This saves time and the structure
of change is in the hands of management who understand the overall objectives - imposition of change can be met with resistance from workers who may resent the lack of consultation
- Each piecemeal change may also be aimed at a different objective, whereas a total package is more likely to be working towards one overall objective
22
Imposed Total Package
- Senior management plan and introduce a major change all at once without consultation with workers
- This sort of change might occur when negotiated change has failed or because of rapidly changing external factors that need responding to quickly
- resisted by middle managers and workers and its success depends on the skills of the senior managers in being able to establish new systems whilst minimising disruption.
23
supplier change
- manufacturers who change to a Just in Time (JIT) system may find that some of their suppliers resist having to supply components ‘as and when’ the manufacturer requires. This may well result in an increase in costs as deliveries need to increase in frequency
- Unfortunately smaller suppliers may have no choice but to accept the situation or lose a valuable customer
- Manufacturers should involve their suppliers from the outset
24
Owner resistance
- Owners may fear that change will increase risk
- implementing change may be costly and may involve investment
- Management will need to explain their plans to the shareholders carefully to convince them that sacrifice now will
lead to better profit in the future
25
what are Lewin’s three step process of change
- unfreezing
- change or transition
- refreezing
26
unfreezing
- involves creating a motivation for change. Creating a realisation amongst employees that change is necessary
27
change or transition
- workers are now moving toward a new way of doing things
- need to be given time to understand and adapt to these changes
- support is needed, Support can come in the form of training, education, and learning from, and not being criticised for mistakes
28
Refreezing
- final stage in the change process is about establishing stability once the changes have been made
- refreezing clearly implies workers must not be forced into continual change, but allowed time to adapt
