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business > topic 10 (managing strategic change) > Flashcards

topic 10 (managing strategic change) Flashcards

1
Q

what are causes for change

A
  • internal change
  • external change
  • inceremetal change
  • disruptive change
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2
Q

internal cause of change

A
  • Staff
  • Culture
  • Leadership
  • Poor performance
  • Growth
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3
Q

external causes for change

A
  • Political
  • Economic
  • Social
  • Technological environmental
  • Legislation
  • Completion
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4
Q

incremental causes for change

A
  • Small changes are made
  • the small changes happening over a period add up to big change
  • This change tends to be more inclusive – people are taken along with the change instead of coping with on big change at a time
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5
Q

Disruptive cause of change

A
  • Managers do not see disruptive change coming therefore can be a shock
  • Future visions may have to change
  • Underlying shift in the industry sector causes disruptive change therefore staying the same will mean the business will struggle to succeed – even if they have been successful in the past
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6
Q

lewins force field analysis identifies?

A
  • What the cause of the change is (driving forces)
  • What will stop the change occurring (restraining forces)
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7
Q

how can manager use lewins analysis to make decisons on change?

A

use the technique to help decide whether there are enough driving forces to make the change occur or if the restraining forces will stop the change happening

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8
Q

advantages of lewins force field anaysis

A
  • Simple to use
  • Quick
  • Can show main reasons for and against an argument
  • Visual
  • Useful tool to aid decisions
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9
Q

disadvantages of lewins force field anaysis

A
  • Manager creates their own values
  • May miss vital forces for changes
  • External factors may be difficult to quantify
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10
Q

kotter and schlesinger’s four key reasons for resistance to chanage

A
  1. Parochial self-interest
  2. Misunderstanding
  3. Low tolerance to change
  4. Different assessments of the situation
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11
Q

Parochial self-interest is (kotter and schlesinger)

A

individuals are only concerned about themselves

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12
Q

Misunderstanding is (kotter and schlesinger)

A

communication problems or inadequate information

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13
Q

Low tolerance to change is (kotter and schlesinger)

A

a sense of insecurity, especially if there has been a lot of change already

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14
Q

Different assessments of the situation is (kotter and schlesinger)

A

there could be disagreements for the need for change or advantages or disadvantages of it.

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15
Q

kotter and schlesinger’s 6 approches to overcome resistance to change?

A
  1. Education and communication
  2. Participation and involvement
  3. Facilitation and support
  4. Negotiation and agreement
  5. Manipulation and co-option
  6. Explicit or implicit coercion
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16
Q

other barriers to change could be

A
  • Habit
  • Economic
  • Fear of unknown
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17
Q

Organisational barriers to change are

A
  • Existing power structures
  • Resistance from work groups
  • Failure of previous change Initiatives
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18
Q

Reasons why change fails are

A
  • Employees do not understand the need for or purpose of change
  • Lack of planning and preparation
  • Poor communication through the organisation
  • Insufficient training
  • Lack of resources
  • Inadequate reward system
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19
Q

Flexible organisations involve

A
  • Restructuring
  • Delayering
  • Flexible employment contracts
  • Organic structure vs mechanistic
  • Knowledge and information management
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20
Q

why does a flexible organisation impact ability to change?

A

beacuse to respond to change businesses need to have a more flexible approach to their organisations.

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21
Q

Restructuring is

A

This is the fundamental internal change to the organisational structure or systems of a business

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22
Q

advantages of Restructuring are

A
  • Operational costs can be reduced
  • Outsourcing can be less expensive
  • Layers of management can be removed
  • New technologies may enable competitive advantage
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23
Q

disadvantages of Restructuring are

A
  • Can lose highly skilled workers
  • Remaining staff may have to be restrained which could add to costs
  • Insecurity and morale issues for remaining staff
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24
Q

delayering is

A

The removal of one or more levels of hierarchy within an organisation

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25
Q

advantages of Delayering are

A
  • Can re-design jobs so that there is greater delegation, empowerment and motivation
  • More authority is given lower down in organisation
  • Improved communications
  • Departmental rivalry reduced
  • Reduced costs and fewer managers
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26
Q

disadvantages of Delayering are

A
  • Not all organisations are suited to flatter organisations.
  • Motivation and security issues with remaining staff
  • There is a period of disruption as employees learn their new roles
  • Wider span of control can reduce communication within the business
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27
Q

advantages of Delayering are

A
  • Can re-design jobs so that there is greater delegation, empowerment and motivation
  • More authority is given lower down in organisation
  • Improved communications
  • Departmental rivalry reduced
  • Reduced costs and fewer managers
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28
Q

Flexible working contracts allow

A

employees a choice over the actual times they are contracted to be at work.

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29
Q

advantages of Flexible working contracts are

A
  • Employees have greater freedom
  • Can reduce commuting time allowing for improved work-life balance for employees
  • Can improve morale and reduce absence and lateness
  • Reduction in overtime costs, late arrivals and long breaks
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30
Q

disadvantges of Flexible working contracts are

A
  • The administration of the scheme has significant costs
  • When premises are open longer there may be increased overheads
  • Employees may not work at certain times and this may not be suitable for the organisation
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31
Q

Organic structure is

A

Organic structures are sometimes called open structures, they ae highly adaptable, flexible forms of organisational structures

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32
Q

organic structures work best in what enviroment ?

A

Work best in a fluid, unpredictable business climate

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33
Q

Organic structure’s are characterised by ?

A
  • Flatness where communications are horizontal
  • Low specialisation where knowledge is used wherever it is needed
  • Decentralised because there is a high degree of formal and informal participation in decision making
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34
Q

Mechanistic structure are

A

are comparatively simpler to use and organise but can be hard to change rapidly. They are a more traditional form of structure but they can be highly inflexible

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35
Q

Mechanistic structure are characterised by:

A
  • Hierarchical and bureaucratic organisational structure
  • Centralised authority with little participation in decision making for employees
  • Procedures and practices are very important.
  • The structure relies on specialised functions
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36
Q

Organisational culture is

A

The behaviour of people within an organisation and the meaning that they attach to those behaviours. Cultures includes the organisation’s visons, values, norms, systems, language assumptions, beliefs and habits

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37
Q

where does culture come from ?

A
  • Founders
  • Senior management
  • Core people
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38
Q

Handy’s 4 different types of culture are?

A
  • Power culture
  • Role culture
  • Task culture
  • Person culture
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39
Q

power culture tends to be what ? (Handy)

A

tends to be test-paced or changeable work but often quite simple or limited to the interests of abilities of major power brokers.

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40
Q

role culture tends to be? (handy)

A

tends to be steadily, relatively unchangeable or patterned work of a predictable nature.

41
Q

task culture tends to be (handy)

A

tends to be high-paced work of a unique or complex nature.

42
Q

person culture tends to be (Handy)

A

tends to be steady/work of a unique nature at micro level

43
Q

Hofstede’s national culture theory says?

A

‘culture is the collective programming of the mind distinguishing the the members of one group or category of people from others’

44
Q

hofstede’s Four groups of national culture are

A
  1. Power distance
  2. Individualism vs collectivism
  3. Masculinity vs femininity
  4. Uncertainty avoidance
45
Q

power distance is (Hostede)

A

refers to the degree of inequity between people with and without power. A high PD score indicates there is an unequal distribution of power. Low PD means that power is shared and well dispersed.

46
Q

Individualism (IDV) (Hostede)

A

This refers to the strength of ties people have with others in the community. high IVD indicates loose connections with the community beyond family. Low IDV would indicate a strong cohesion with loyalty and respect for the community.

47
Q

Masculinity (MAS) (Hostede)

A

This refers to how much society sticks with and values traditional male and female roles. High MAS scores are in countries where men are expected to be ‘tough’, women are in sperate professions to men. Low MAS scores roles are blurred

48
Q

Uncertainty/ avoidance index UAI (Hostede)

A

This refers to the degree of anxiety that society members feel when uncertain or unknown situations. High AUI nationals avoid ambiguous situation, they are governed by rules and order. Low UAI scores indicate a society that enjoy novel events and values differences, they are few rules.

49
Q

reasons to change organisation culture could be ?

A

To improve business performance
To respond to significant change

50
Q

what would cause a need to improve business performance ?

A
  • Declining profits and sales
  • Inadequate returns on investments
  • Low quality or standard of customer services
51
Q

what would be a signifcant change that would require response?

A
  • Market changes (competitors or growth)
  • Political or legal environment
  • Change of ownership
  • Change of leadership
  • economic conditions
52
Q

what are problems with changing organisational culture

A
  • The overuse of power tools
  • Beginning with vision but failing to put management tools
  • Beginning with power tools
53
Q

The overuse of power tools means

A

those of coercion ad underuse of leadership tools: visions, role, modelling. Ect

54
Q

Beginning with vision but failing to put management tools means

A

strategic planning, promotion – in place so that behavioural changes can take place.

55
Q

Beginning with power tools means

A

operating procedures, role definition, even before a clear vision is in place.

56
Q

strategic implementation is

A

The process of allocating resources to support the chosen strategies

57
Q

the three elements to implementing a successful strategy are

A
  • Motivational leadership
  • Turing strategy into action
  • Performance management
58
Q

the three phases to turn strategy into implementation are

A
  1. Have a clear intent
  2. Develop action plans that are time bound
  3. Cascade work plans to the team
59
Q

clear intent is

A

Explaining to workers why the strategy needs implementing is the best way of ensuring that it is carried out successfully.

60
Q

to Develop action plans that are time bound means that

A

The team responsible for ensuring the strategic plan becomes a reality need to know exactly how they are to achieve this.
Each functional area will need to develop their own action plans which have timescales and budgets associated with them.

61
Q

a work plan should be a detailed plan of what ?

A
  • How the project will be led and resourced
  • Who is responsible for which task
  • Possibly individuals work plans will be given as well
62
Q

a review process should … (strategic change)

A

be included to help assess the effectiveness of the strategic change as well as the team

63
Q

An effective performance management system should allow managers to ?

A
  • Communicate strategy
  • Measure the performance
  • Acknowledge and enable ‘emotional contracting’ with staff so that individuals have a commitment to strategy implementation.
64
Q

Emotional contracts are

A

the ‘phycological contract’ it is the link between what the organisation wants to achieve and the motivations, values and aspirations of the workforce.

65
Q

Key performance indicators (KPI) are

A

the key measures that enables of business to know how effectively it is at achieving it objectives.

66
Q

managers need to communcate what (strategic change)

A
  • the objectives of the plan
  • the team’s roles and responsibilities for the plan
  • Evaluate and communicate the performance measures
  • the review of the outcome of the plan
67
Q

team members must understand what about the plan (strategic change)

A
  • The plan’s contents
  • The purpose of the change
  • The objectives of the plan
68
Q

Kotter’s eight steps of change are

A
  • Creating the right environment for the plan to succeed by communicating (1-3)
  • Communicating who should do what work and communicating wins (4-6)
  • For the implementation to be maintained, everybody needs to understand the success of the plan
69
Q

how does the organisational structure of a business effects how successful the implementation of a plan will be

A
  • If the structure is very formal (like traditional functional or product based structures). These structure tend to be more formal with more layers of hierarchy and autocratic styles of leaderships
  • If the structure is less formal (a flatter structure with a wide span of control for managers) this may lead to more innovations and employees having flexible approach to roles.
70
Q

How centralised the decision making is in a business will affect the implementation of strategic plans because

A
  • If a business has a centralised structure where are made by a few top managers and delegated then it may take time for decisions to be made, innovation may be lost and this may causes cost to increase
  • If the business is decentralised then decisions making is dispersed throughout the business. This means more ideas are produced and the managers feel empowered to implement plans in their own way.
71
Q

a generalist structure is

A

the opposite of matrix structure. Managers here will be typically low in specific knowledge- the manger may have to guide team members through tasks

72
Q

fuctional structure

A

consists of activities like coordination, supervision and task allocation

73
Q

product structure

A

build around the product portfolio of a business.

74
Q

regional structure

A

allows the business to organise itself into different regions of a country

75
Q

matrix structure

A

allows for a horizontal flow of skills and expertise to facilitate a project or implement a plan.

76
Q

network analysis is

A

a project management tool to aid the implementation of a strategic plan

77
Q

network analysis shows

A
  • The individual activities that make up the project
  • The order in which activities are to be undertaken
  • If any activities can be done simultaneously – reducing the overall time of the plan
  • Which resources will be needed and when
78
Q

advantages of network analysis

A
  • A visual representation of a project or plan which is simpler to interpret
  • Aids forward planning by considering all resources needed
  • Encourages teamwork and consultation
  • Easier to manage the implementation of plan because it allows financial and cash implications to be identified
  • Identifies activities that can be run simultaneously, making project run more efficiently
79
Q

disadvantages of network analysis

A
  • They are expensive and time consuming
  • A projects complexity can be to difficult to visualise
  • just because the network analysis has been done does not guarantee success of a project
  • The network only considers quantitative data and does not use qualitative data
  • All staff need to understand the method, goal and its uses
80
Q

a float is

A

the measure of spare time within the project

81
Q

the 2 types of float are

A
  • Total float
  • Free float
82
Q

total float is

A

measures the spare time available on a single activity within delayering the project as a whole

83
Q

free flat is

A

the free float measures the spare time available on a single activity, so that there is no delay on the start of the following activity.

84
Q

problems with strategic decisions could be

A
  • The data could be insufficient, inaccurate or invalid
  • The data may be incomplete, decisions may be made based on a world view witch is inaccurate
  • the data may have been relevant at the time of collection but the rate of change now voids it.
85
Q

planned stratey is good in what kind of business?

A

more appropriate in a traditional style business such as large-scale manufacturing

86
Q

an emergent strategy is good in what kind of business?

A

more appropriate in a fast moving industry where customers tastes can change quickly such as e-commerce retailing.

87
Q

Mintzberg suggests that strategies emerge by ?

A
  • Beginning implementing strategies before they clearly define there mission
  • Allowing the strategy implementation to precede the strategy formulation
  • Allocating its resources before it has chosen its strategies.
88
Q

strategic drift is

A

When a strategy is not changed quick enough and there is a distance between where a business should be and where it is.

89
Q

A business should be constantly monitor its external and internal environment in order to assecess whether it is …. (strategic drift)

A
  • Ahead of the change curve
  • In pace with change
  • A laggard behind the change curve
90
Q

Corporate governance is

A

The mechanisms, processes and relations which are used to control and direct a corporation

91
Q

The mechanisms set out (corporate governance)

A

who has rights and responsibilities among the board of directors, managers, shareholders ect

92
Q

poor corporate governance can cause what symptoms to occur?

A
  • Lack of growth in a sustainable way
  • Weak management lurching from one crisis to another
  • Poor financial controls
  • Poor management information systems
  • Unsound policies
  • Over-gearing
  • Over dependence on just one customer
  • Weak change management
  • Poor environment controls
93
Q

In 1980 Michael porter suggested that the strategic plan had four elements they are

A
  • company strengths and weaknesses
  • personal values of the key implementers
  • industry opportunities and threats
  • broad social expectations
94
Q

why should a business do strategic planning

A

beacuse it allows a business to establish where they are now, where they want to get to and how they are going to do it.

95
Q

contingency planning is

A

a plan devised for an unexpected outcome, other than the expected plan. Sometimes called risk management

96
Q

the aim of contingency planning is

A

to minimise the impact of the foreseeable event so that normal operations can resume.

97
Q

The key stages in contingency planning are?

A
  • identifying possible adverse scenarios
  • specify the likely consequences for the business
  • assess the degree of risk of each event
  • determine a way to prevent the crisis or deal with it if it should occur
  • prepare a plan and identify management responsibilities
  • test the plan
98
Q

why should a business use contingency planning

A
  • allows managers to assess the possibilities of foreseeable events and risks
  • the ‘what if’ scenarios can be tested
  • allow a business to avoid strategic drift
  • ensures that businesses are not adversely affected by internal or external issues or events.

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