Change Flashcards
(13 cards)
Types of Change
Internal change
Change that happens from within the business e.g. change of leadership or strategy or realignment of values
External change
Change that happens from outside of the business e.g. PESTLE environment or the competitive environment
Planned or incremental change
Change that is implemented over time with a number of small changes being made on a regular basis to achieve ongoing improvements
Unplanned or disruptive change
Change that is rapid and unexpected having a dramatic affect on the way in which an industry or businesses operate
The effects of Change- positive effect
Better communication – tech developments – innovation through tech – enabled improved comms
New ideas being brought in – this may impact efficiency as a result
Improved productivity – tech developments – production method
Made redundancies – laid off ineffective staff – leads to greater productivity
the effects of change0 negative effect
Staff could loose – jobs – redundancy packages – increase our short term costs
Culture clashes – may be difficult following takeover/mergers to effectively bring two teams together
Legislation changes – may need to rewrite policies (time) – we may need to pay additional fees/tariffs
Loss of customers/market share as result of change being implemented
J. Storey’s four different approaches to managing change
Total imposed package
:Top down
No consultation
Senior management present a large-scale change
Creates rapid change
May be significant resistance
Negotiated total package
Consultation between senior management and workers about need for change and how to implement it
May slow down or restrict the size of change
Less resistance
Imposed piecemeal initiative:
Top down
No consultation
Senior management present change but it is implemented more gradually, a step at a time
Resistance may be reduced
Negotiated piecemeal initiative
Consultation
Senior management and workers agree on need for change and how to implement
Change is gradual with workers getting used to one change before another is implemented (slow progress)
Types of Resistance of changes
supplier resistance
Owner resistance
lack of finance
employee resistance
lack of management expertise
Kotter and Schlesinger’s model
Kotter and Schlesinger’s model shows 4 reasons for resistance to change:
Self interest
Stakeholders fear that change will result in them being personally worse off and therefore want to protect themselves against this
Prefer the status quo
Stakeholders are happy with the way things are and therefore just want to keep it as it is
Different assessment
Stakeholders believe that the proposed change is not the correct course of action and that they could suggest a better solution
Misunderstanding and fear
Stakeholders believe that the motives for change are wrong and they therefore mistrust the decision makers
Lewin’s 3 step-process for managing resistance for change
Unfreeze this is where the discussion, groups the dissemination of the possible change and clear objectives to take place to overcome resistance
Change: All internal stakeholders to gradually adopt the new mindset and accept the change and the change occurs
Refreeze - set the change in place making sure that the change is embedded in all organisational structure of the business
the role of leaders in managing change
Effective leadership is essential throughout the process of change
Leaders will be responsible for:
Clearly defining the strategic direction
Setting and sharing clear policies and procedures
Communicating the strategy to everyone to provide a clear vision
Overcoming resistance to change
Allocating resources
Monitoring progress against preset targets
Taking corrective action if necessary
Evaluating the management of change
This depends upon…
Whether the impact is measured against pre-determined criteria or not e.g. investment criteria
What are the extent of the employee/employer relations and is there a degree of resistance to change?
What are the actual costs of implementation against budget – variance analysis
What is the time scale e.g. was the deadline met?
What do the customer and employee attitude surveys say?
What is organisational culture? (corporate culture)
A great way to describe business or corporate culture is:
“The way we do things around here”
Culture consists of factors such as:
The shared values of a business
The beliefs and norms that affect every aspect of work life
The behaviours typical of day-to-day behaviour
The strength of a culture determines how difficult or easy it is to know how to behave in the business
How can Culture be observed
The culture of a business is reflected in many ways – including the following:
How employees are recruited – the cultural factors that make one applicant more suitable than another
The way that visitors and guests are looked after
How the working space is organised
The degree of delegation & individual responsibility
How long new employees stay in a business
How contracts are negotiated and agreed
The personality and style of the sales force
The responsiveness of communication
The methods used for communication
How staff call each other (e.g. first name)
The nature and style of marketing materials
The speed with which decisions are taken
The number of layers in the management hierarchy
Strong v Weak Culture
signs of a strong organisational culture include:
Staff understand and respond to culture
Little need for policies and procedures
Consistent behaviour
Culture is embedded
Evidence that points to a weak organisational culture include:
Little alignment with business values
Inconsistent behaviour
A need for extensive bureaucracy & procedures
Example of strong culture:
Environmental responsibility at the core: Patagonia’s commitment to the planet is more than words. From using responsible sourcing practices to public land protection, they consistently prioritise environmental well-being
A bold commitment: In 2022, founder Yvon Chouinard took a revolutionary step— transferring ownership to a trust and non-profit dedicated to fighting climate change. This ensures future profits directly support environmental causes, solidifying Patagonia’s environmental commitment
Thriving workplace: Patagonia understands a happy workforce is key to success. They’ve been pioneers in offering employees flexible schedules and generous paid time off, cultivating a culture of well-being long before it became common practice
Employee well-being in action: During the COVID-19 pandemic, Patagonia prioritised employees by retaining staff and continuing pay despite store closures, demonstrating their commitment to unforeseen circumstances. In 2022, CEO Ryan Gellert closed all North American stores, warehouses, and offices for the week between Christmas and New Year’s, gifting employees a surprise paid vacation
