Chapter 7 Flashcards
(8 cards)
Define organisational change.
Is the adoption of a new idea or behaviour by an organisation. The change could come about from within the organisation or outside the organisation.
List and explain two sources of change from the internal environment.
Policies: policies that are outdated, inappropriate or non-existent are a pressure for change; for example it is expected that organisations will have an environmental policy.
Employees: employees are an integral part of any organisation and will often demand change; for example, initiatives that achieve a work life balance, such as a flexible and responsive workplace that enables there staff to balance their work and family/personal responsibilities.
List and explain two sources of change from the operating environment.
Customers/clients: the needs and wants of customers/clients change over time, causing them to change their consumer preferences or expectations about an organisation, which pressures an organisations to change accordingly.
Suppliers: factors that affect a suppliers ability to provide inputs can be a pressure for change for an organisation; for example, industrial action, a price rise or the shortage of a product.
List and explain two sources of change for the macro environment.
Political pressures: these include current and potential influences from political pressures, such as: policy changes by political parties prior to an election that can affect a business; and pressure on financial institutions by the government to lower bank account fees. Whenever new laws are passed, organisations must comply with the new legislative requirements.
Technological developments: organisations must keep up to date with, and respond to technological developments in order to remain competitive; for example, most organisations use social media to promote their products or services. If an organisation is slow to exploit technology, an organisation is likely to fail, because its competitors will strive to capture greater market share and develop a sustainable competitive advantage.
Define force field analysis.
Outline the process of determining which forces drive and which resist a proposed change. Managers who are trying to implement a change must conduct a force field analysis to identify and balance the driving and restraining forces.
Define driving forces.
Are those forces that support the change. The main driving forces for organisational change are changes in the internal and external environments.
Define restraining forces.
Are those forces that work against the change.
Define organisational inertia.
Refers to an unenthusiastic response from management to proposed change. Some managers resist change because it requires moving outside and away from their ‘comfort zone’.
