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Flashcards in Forces for Change 11 Deck (21):

Business change

Business change- any alteration to a business and/or its work environment. Process of altering and establishing a modified form.
Planned change is usually more successful (proactive; initiate innovate embrace change), unplanned change (reactive) is done in haste, not managed well
proactive- in anticipation
reactive- in response to businesses that have already changed


Lewin's Force Field Theory

looks at the driving forces and restraining forces to explain why the business is 'the way it is'
If DF outweigh RF change is likely to be implemented, if they are equal it is unlikely the change will be implemented, if RF outweigh DF the change will unlikely be introduced


Driving force

those forces that push the business and support/encourage proposed change


Restraining force

personal or organisational resistance to change that counteracts driving forces


Managers as a driving force

Influence the business (provide strategic direction)
Initiate and ensure changes are implemented
Critical to the success of change

Example: business proposes to increase market share by differentiation


Employees as a driving force

If they are happy to implement and support the change, the business is likely to find the whole change process a success
Main reason for the success or failure of a change

Example: business implements new technology


Competitors as a driving force

Stay informed on what competitors are doing and how they are performing so your business can respond to those changes to maintain customers and market share

Constant pressure to stay ahead of competitors to gain a competitive edge, respond to pressures in the industry/market first

Example: competition between supermarkets


Legislation as a driving force

Government changes legislation which can impact the business
These forces cannot be ignored and have to be followed (could mean aspects of operations have to change)
Affects taxation, budget on small businesses, permits/licenses/regulations
Could make it easier to drive change (higher budget on small businesses, lower taxation, reduce GST)


Pursuit of profit as a driving force

All businesses will implement changes in a hope to improve products and increase sales and market share. Profit is an incentive for businesses to drive change because profit is needed for the business to grow.
Improving quality or a strategy to cut back on costs/expenses (reducing employees)

Example: Denimsmith durable jeans that are hand-made and physically checked for quality


Reduction in costs as a driving force

Cost-cutting leads to higher net profit
outsourcing, reviewing contracts/insurance/loans for cheaper options, negotiating with suppliers (bulk buying)

Cost reduction strategy can lead to being able to offer products at lower prices, therefore attracting customers

Example: Woolworths increased operational efficiencies to increase profit


Globalisation as a driving force

Globalisation is the breakdown of barriers to trade among countries/nations/consumers, the free movement of goods, capital and people Globalisation can drive change as it increases access to other markets (can get supplies from overseas for cheaper and, maybe, at a superior quality) or outsource (reduces costs) and greater potential for growth (larger market).

Example: 2XU originated in Australia but is now nearly internationally known (America)


Technology as a driving force

Technological advancements have allowed for desired changes such as increasing productivity. Newer/more efficient machinery can now automate dangerous or difficult tasks and mass produce at a faster rate with fewer faults.
Increased technology (computers, applications, software) in the workplace has driven businesses to train employees.

Example: Amazon using robots to automate tasks


Innovation as a driving force

Innovation is the creation of effective procedures/products/processes to increase quality/attributes of products or increase efficiency
Catalyst for growth and success
Can give the business a competitive edge

Example: Henry Ford's production line to deliver cars at a lower price


Societal attitude as a driving force

Societal attitudes refer to the changes in opinion, values, and lifestyle of the community.
Businesses want to appeal to future employees and customers as an organisation that values opinions and values. Businesses need to adapt or else, their reputation is risked.

Example: gender pay gap, equal opportunity in the workplace


Managers as a restraining force

Big influence, can stop change from occurring (refuse to implement, fail to actively support it)
Scared of change, may threaten position/power/role

Example: VW, managers don't want to implement change


Employees as a restraining force

Fear of unknown and of failure
Unsure of where change is leading (out of comfort zone)
Preference of old work procedures



Time as a restraining force

Time is a scarce resource and if a business gets left behind they are unable to respond quickly to pressures from the internal and external environment.
Lack of time adversely affects/hinders the business' ability to implement change


Organisational inertia as a restraining force

Business' lack of ability to react to pressures as the business continues on its current trajectory
Established businesses that have changed little and have long traditions
• Resource rigidity- unwilling to invest
• Routine rigidity- inability to change patterns and logic that underlie investments

Example: General motors, eclipsed by Japanese manufacturers, Ford. loss of productivity


Legislation as a restraining force

Has to be followed, but can be expensive, difficult to implement or cost the business more
Lack of laws or new laws can mean changes to staffing/procedures/policies that add to expenses


Financial considerations as a restraining force

• Lack of access to finance
○ Interest rate
○ Financial institutions or banks resistant to lend money
• Cost of change


Efficiency and Effectiveness

Best of use resources in the production of goods and services, accomplishing task with minimal expenses