Unit 10 - Managing Change

Question 1

Incremental change

Answer 1

Changes that occurs in gradual changes

Question 2

Disruptive change

Answer 2

Radical change changing affecting the whole business drastically

Question 3

Lewin’s force field analysis

Answer 3

Analyses the driving forces and resisting forces to change

Question 4

Barriers to change

Answer 4

Obstacles that obstruct the implementation to change

Question 5

Theorists who suggested the reasons for resistance to change and how to overcome change

Answer 5

Kotter and Schlesinger

Question 6

Kotter & S resistances to change

Answer 6

Self interest
Different assessments
Low tolerance to change
Misunderstanding

Question 7

Kotter & S overcoming resistances to change

Answer 7

Education
Participation
Facilitation
Negotiation
Manipulation
Coercion

Question 8

Participation (K&S)

Answer 8

Getting people involved in the process to give them a sense of ownership

Question 9

Faciliation (K&)

Answer 9

Supporting employees with the change - overcoming low tolerance to change

Question 10

Coersion (K&S)

Answer 10

Forcing the change through

Question 11

Benefits of successful change

Answer 11

Avoid strategic drift
More effective organisational structure
Sustain a competitive advantage
Productivity gains

Question 12

Centralised organisation

Answer 12

Decision making is made by the highest levels of management

Question 13

Decentralised organisation

Answer 13

Decision making is delegated to lower levels of management, departments or locations

Question 14

Functional organisation structure

Answer 14

Firm is organised by departments - people with similar expertise are working together e.g. HR,finance, operations

Question 15

Product based structure

Answer 15

Organisation divided based on a businesses product range

Question 16

Regional structure

Answer 16

Organisation divided by the geographical area

Question 17

Matrix Structure

Answer 17

Cross-functional teams are created to run a project

Question 18

Delayering

Answer 18

Removing layers in an organisational structure

Question 19

Mechanistic structure

Answer 19

Formal and rigid structures often having centralised decision making and tall structures

Question 20

Organic structure

Answer 20

Flexible structures more able to adapt to change often having decentralised decision making and flat structures

Question 21

Organisational culture

Answer 21

Attitudes, beliefs and values of the business shared by employees

Question 22

strong culture

Answer 22

Employees agree with the corporate values and don’t need to be pushed to comply with them

Question 23

Handy’s model of culture

Answer 23

Suggests four different types of culture a business can adopt

Question 24

4 types of culture handy suggests

Answer 24

power
role
person
task

Question 25

What is power culture

Answer 25

Centralised culture where decisions are made by a group of people - may come under stress as the business grows

Question 26

Role culture

Answer 26

Formalised culture where jobs have clear rules and procedures People know their position in the hierarchy However, silo mentality may occur as departments don't communicate

Question 27

Task Culture

Answer 27

Focuses on specific task and projects where employees are brought together across functions

Question 28

Person Culture

Answer 28

Individuals believe themselves to be better than the business due to skills, expertise and experience e.g. legal or medical practices

Question 29

Strategic implementation

Answer 29

How the business manages the execution of a strategy

Question 30

Network analysis

Answer 30

Using a network diagram to manage various tasks required to complete a project

Question 31

Purpose of Network analysis

Answer 31

To complete a project in the shortest possible time

Question 32

Advantages of network analysis

Answer 32

Considers completing multiple tasks simultaneously - increasing efficiency Critical path helps managers to identify tasks to focus on Saves time and money

Question 33

Disadvantages of network analysis

Answer 33

Timings are estimates and can be wrong Unforeseeable events may occur Too complicated for large projects

Question 34

Reasons for strategy failure

Answer 34

Poor planning, leadership and skills Poor liquidity, cash flow, lack of capital External factors e.g. technology, social and competitive changes

Question 35

Planned strategy

Answer 35

Formulated strategy that is carried out over time Rigid and set in a formal plan

Question 36

Emergent strategy

Answer 36

Flexible strategy that responds to events as they arise Allows a business to adapt to changes in the environment

Question 37

Strategic drift

Answer 37

When the business strategy no longer matches the environment it operates in

Question 38

Phases of strategic drift

Answer 38

Incremental change Strategic drift Flux Death or transformational change

Question 39

What is the flux stage

Answer 39

Management recognises drift and tries to make strategic changes however poor strategies and management lead to increased drift

Question 40

Contingency planning

Answer 40

Pre-designed set of actions designed to mitigate potential problems

Question 41

Types of events a business may plan against

Answer 41

National disasters, loss of data, loss of key personnel, product issues

Question 42

Advantages of contingency planning

Answer 42

Speeds up recovery process Shows ethical concerns Saves money if unexpected happens

Question 43

Drawbacks of contingency planning

Answer 43

Costly and time consuming Opportunity cost - money better spent elsewhere Could be a waste of money

Question 44

Crisis management

Answer 44

How an organisation deals with disruptive and unexpected events that threaten a business

Question 45

Difference between crisis management and contingency planning

Answer 45

Contingency planning happens before a crisis (proactive) Crisis management occurs during and after a crisis (reactive)