Unit 10 - Managing Change Flashcards
(76 cards)
1
Q
Change management
A
Involves the process that ensures a business responds to the environment in which it operates (about survival)
2
Q
Internal causes of change
A
Arise from factors within the control of the business e.g. decisions taken by business management (strengths and weaknesses - SWOT)
3
Q
External causes of change
A
Arise from factors outside the control of the business e.g. PESTELE
4
Q
Examples of internal change
A
- new leadership
- change in strategic directions
- significant investment decisions
- adjusting organisational structure
5
Q
Examples of external change
A
- significant competitor actions
- political and legal changes
- long term changes in society
- technology
6
Q
Step change
A
Change that is significant and occurs rapidly
(May required some coercion to overcome resistance)
7
Q
Incremental change
A
Change occurs of a period of time in incremental and small changes
(Responding to subtle changes in environment and arises as strategy develops)
8
Q
Benefits of embracing change
A
- sustain competitive advantage
- aligns business strategy with evolving nature of customer needs
- take advantage of developing technologies
- stakeholder gain
- improve effectiveness of communication and decision making
- leading change rather than following it may bring about market benefits
9
Q
Disruptive change
A
- Form of step change that arises from changes in external environment
- impacts the market as a whole
- challenges the established business model
- improvements of tech = main driver of this change
10
Q
Why might incremental change be better than step change
A
- less resistance
- more time to plan change
11
Q
Lewins force field analysis
A
An overview of the balance between forces driving change in a business and the forces resisting change
12
Q
Examples of internal forces driving change
A
- need for higher profits
- poor efficiency
- lack of innovation
- need to change culture
- chance of leadership
13
Q
Examples of external forces driving change
A
- customer demand
- competition
- legislation and tax
- ethics and social values
- technological change
14
Q
Kotter and Schlesinger - 4 reasons to resist change
A
- parochial (limited/ narrow outlook) self interest
- different assessment of the situation (disagreement)
- low tolerance for change and inertia (like to do things the way we do them)
- misinformation and misunderstanding
15
Q
How can we overcome resistance to change?
A
- educate and communicate
- participation and involvement
- facilitation and support
- manipulation and co-option
- negotiation and bargaining
- explicit and implicit coercion
16
Q
Charles Handy (1990) - the flexible firm
A
1) core workforce
2) flexible workers (part time)
3) freelance contractors
17
Q
Financial flexibility
A
- pay can quickly represent the demand Ian’s supply of labour in the external economy
- differences between pay of different type of employees (skilled/unskilled)
- performance related pay
18
Q
Numerical flexibility
A
- headcount if employees can be changed quickly and efficiently
- fire and hire policies can be implemented quickly
- looser contracts
19
Q
Functional flexibility
A
- redeploy staff quickly and efficiently between tasks and activities
- movement of staff between direct and indirect production tasks
- complete change in career /skills
20
Q
How has flexibility changed since the pandemic?
A
- more working from home
- sabbaticals
- zero hour working
- remote working
- job sharing
- shift swapping
21
Q
How many times a year can you request flexible working
A
Twice a year
22
Q
Flexibility in flat structures
A
- informal
- fluid to change
- favours verbal comms
- decentralised decisions so empowerment
- change easier to handle
23
Q
Flexibility in a hierarchal (mechanic) structure
A
- formal and bureaucratic
- centralised and supervised
- formal comms
- standard policies and procedures
- little perceived need to change
24
Q
Flexible labour markets
A
- involve a minimum of government regulators
- wastes and conditions should be decided by marker forces, not government
- more effective and competitive
- globalisation to remain competitive
25
Benefits of flexible labour
- increased trade
- greater choice of jobs
- increased labour market participation rates
- may encourage inward foreign direct investment (FDI)
- lower rates of unemployment
- stabilises economic cycle
26
Arguments against flexible labour
- lack of training (low skilled people never get training as they never get job stability)
- low productivity
- job insecurity and stress
- risking inequality (big gap between ppl with secure jobs vs others on contracts)
- high search costs for workers needing to find new jobs
27
Social cost of flexibility
- easier to hire and fire workers
- limited regulations (high job insecurity, low costs)
- downward pressure on wages
- greater variety of job contracts
- poor productivity growth
28
Barriers to implementing flexible working
- operational restrictions
- potential for lower customer service
- attitudes towards flexible work
- senior management may suffer from inertia
- monitoring and controlling performance can be harder
- firm may not like the culture change
- HR workload may be too much
29
Organisational culture
The way we do things
30
Importance on organisational culture
- fosters collaboration
- drives innovation
- builds trust
- influencing employee engagement
- influences customer perception
- express creativity
- preserving community
31
Organisational culture impact on employees
- sets expectations
- shapes attitude and cakes m
- define acceptable norms
- shapes how employees interact with each other
- shapes their perception of their role
32
Organisational culture impact on customers
- good culture with emphasis on customer satisfaction so good loyalty and retention
- consistency in service and products
- brand perception
- better culture so more innovative ideas so better products that meet customers needs
- culture focused on problem solving can solve customer issues quickly and effectively
33
Organisational culture impact on business
- positive culture = increased motivation = increased productivity
- increased innovation = firm stays competitive
- supportive culture = employees feel valued to increased labour retention, low turnover
- collaborative or top down culture influences decision making which impacts business strategy
- flexible culture = business adapts to changes in market
- strong culture = improves financial performance
34
What makes a good organisational culture and how can this be built
- clear vision and goals and values
- open communication
- respect and inclusion
- collaboration
- employee empowerment
- recognition and appreciation
- work life balance
- continuous learning
35
What can create a toxic organisational culture
- lack of communication
- authoritarian leadership can lessen morale
- lack of recognition
- discrimination
- lack of support
- resistance to change
- inconsistent values
- toxic competition within organisation
36
Handy model of culture - power culture (Zeus)
- autocratic leadership
- decisions made quickly
- managers are judged on results
- hierarchal structure
- motivation usually focusses on financial rewards
37
Handys model of culture - role culture (Apollo)
- clearly defined job titles and role
- bureaucratic organisations (government)
- structure of the organisation is clearly defined and clear delegated authority
- power comes from a persons position
- decision making can be slow
- risk taking are frowned upon
- tall hierarchal organisation structure
38
Handy model of culture - task culture (Athena)
- groups are formed to solve problems
- communication may follow a matrix structure
- decentralised
- creative and problem solving spirit
- very motivating environment that meets workers instinct needs
- paternalistic / democratic leadership
39
Handys model of culture - person culture (Dionysus)
- the most creative type of culture
- no emphasis on teamwork
- people who thrive may find it difficult to work in a structured environment
- democratic leadership
40
Handys model of culture - entrepreneurial culture (new later edition)
- encourages management and workers to take risks and encourages new ideas and business ventures
- success is rewarded but failure isn’t automatically criticised
- motivation can be high among people who like challenge and risk taking
41
Examples of successful culture changes
- Netflix = shifted from hierarchal to one more agile and innovative by giving employees more responsibility and freedom
- Microsoft = competitive to collaborative and customer focused culture
42
Examples of failed culture changes
- uber = controversies due to toxic and aggressive culture so attempted to reform with a new CEO but struggled to overcome deep rooted cultural problems
- Sears = tried to change culture from traditional and centralised to more entrepreneurial but faced conflict, dysfunction, distrust and neglected its core competencies
43
Why might a business see a change in culture?
- change in leadership
- change in organisational structure
- retrenchment
- need for greater innovation
- legal impacts
- competitive markets
44
Barriers to cultural change - tradition and set ways
- loyalty to existing relationships
- failure to accept the need for change
- insecurity
- preference for existing arrangement
- different person ambition
45
Barriers to cultural change - fear of…
- loss of power
- loss of skill
- loss of income
- the unknown
- inability to perform as well as currently
46
Lewins model of organisational change
If we want to change the culture, we need to get over the resisting forces to change
- unfreeze = get employees willing to change, challenge values and nature of exiting culture
- move = organisation implants new changes - there will be employee resistance so change management techniques and leadership styles
- refreeze = as employees begging to accept the change and but into it, resistance will deplete and equilibrium will set in
47
Sergio Marchionne - Chrysler
- made it from hierarchal to more flat
- made office next to car manufacturers
- 26 managers would report directly to him
- improved image with collaboration with Eminem
48
Armin Trost
- theory A = create and communicate new values to employees instead of telling them to change
- theory B = if you want to change the culture, change the structure
49
Advantages of critical path
- calculate which activities are critical to the the success of the project based on time management
- quantitative data = quicker and definite
- calculate how long a project is going to take
- helps manage risks
- allocate resources to tasks that are critical
50
Disadvantages of critical paths
- ignores external factors and risks
- based on an estimate so could be wrong
- doesn’t guarantee project success
51
Strategic implementation
The process of turning plans into action to reach a desired outcome. The art of getting stuff done
52
Why is implementation of strategy important?
If we understand the factors that have the greatest impact on our strategy, we can quickly change and adapt it to allow it to be successful
53
Internal factors of strategic implementation
- leadership styles
- culture
- resources
- timing
- communication
- planning tools like critical path (network analysis)
- monitoring
- review and evaluation
54
External factors of strategic implementation
- PESTLE
- competition
55
Tools to facilitate strategic implementation
- consultation
- focus groups
- action working groups/project team
56
Evaluation of strategic planning
- in a fast moving and changing industry, planning is less needed as business needs to quickly adapt and react to changes in consumer tastes and pricing and promotion
- planning needed in larger firms to motivate employees to get behind values and goals
- some tasks need a plan such as growth strategies due to significant impacts if it goes wrong, others like redecorating the office can be left to one person
57
How to implement and strategy
- identify goals
- carry out SWOT and PESTLE analysis
- design strategy
- implement
- evaluate whether it’s working
58
Why do strategies fail?
- problems with the plan itself
- some stratgies cannot be controlled
59
Problems with the strategy itself leading it to fail
- problems with leaders and their decisions
- insufficient or incorrect information being provided to public
- data analysed poorly
- ignorance
- inability to achieve original goals so plan changes
60
Who proposed the deliberate strategy and what is it
Porter - strategy is a planned process, should be controlled, if you see something wrong then take action and correct it
61
Who proposed the emergent strategy and what is it
Mintzberg - strategy is an emergent process, firms need to react and evolve to environment by reacting to changes in marker, competitors and legislation. Future is unforeseen so don’t make rational decisions with limited data
62
When to choose an emergent strategy
- future of company is uncertain
- unclear long term strategy
- early stages of company
- industry competitive landscape is undergoing significant changes
63
When to choose a deliberate strategy
- path to strategic goals is clearly defined
- company is relatively stable and mature
- company is ready to move away from survival to growth
64
65
Strategic drift
When a business fails to keep up with the demands of changing external environment so the business becomes less effective and starts to decline
66
Phase one - incremental change
- likely to use an emergent strategy
- slow and steady changes and improvements
- business in line with environment
- e.g. a retail stores slowly improves online services
67
Phase 2 - strategic drift
- business starts to fails to keep up with the demand of the changing external environment
- strategy becomes less effective but company doesn’t react quick enough
- e.g. blockbuster continuing to sell DVDs whilst customer changed to Netflix for online streaming
68
Phase 3 - flux
- confusion
- managers don’t agree
- performance begins to drop quickly
69
Phase 4 - transformational change or demise
- involves step change (fast)
- business must change quickly by making a new strategy or go out of business
- e.g. Nokia didn’t react quick enough to change of smartphones leading to them losing their market
70
Divorce of ownership and control
Where managers want to pursue and achieve one objectives but employees are incentivised to pursue their own
71
Risk management
Identifying and dealing with the risks threatening the business
72
Contingency planning
Planning for and minimising the impact of unforeseen and unexpected events as well as predictable and quantifiable problems
73
What is risk in business
- the possibility of loss or business damage
- a threat may prevent or hinder ability to achieve business objectives
- the chance that a hoped for outcome will not occur (e.g. customers not responding well to a new product launch like Google Glass, expensive high tech smart glasses)
74
75
How contingency planning is part of risk management
- identity what and how things can or might go wrong
- understanding potential effects if things go wrong
- devise plans to cope with threat
- putting in place strategies to deals with risk before they happen
76
Evaluate the need for contingency planning
- risk varies in terms of significance to business and its likelihood
- contingency planning isn’t required for every eventuality
- risks of strategic significance cannot be ignored
- depends of size and nature of business (high risk industries need more)
- important for online services (crashes), tight supply chains and sensitive customers
- should be balanced with cost and reviewed regularly to see if effective
