Flashcards in 12 BUS Ch 7- Change Management Deck (60)
Any alteration in the internal or external environments
The adoption of a new idea or behaviour by an organisation
To initiate change rather than simply react to events
To wait for change to occur and then respond to it
What can poorly managed change result in?
What does change require?
~ Responsive management structures
~Strong leadership skills
What are the internal sources of change?
3. Corporate culture
How do the internal factors contribute to change?
1. Management- reviewing processes, staff and systems, implementing new agreements and strategies.
2. Employees- sharing ideas, innovating products, requesting better working conditions.
3. Corporate culture- whether it is welcoming to change or repels it.
4. Policies- development and implementation of new polices, or amending old ones.
Sources of change in the Operating environment
4. Interest groups
How can factors in the operating environment influence change?
1. Customers- Their preferences and tastes change.
2. Competitors- their activities can determine where the business is situated in the marketplace.
3. Suppliers- their activities can affect supply availability.
4. Interest groups- influential in regards to the business' products, marketing techniques and operations
A contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow rate of economic growth.
Emissions trading scheme
Regulates the buying and selling of permits to emit greenhouse gasses.
Sources of change in the macro environment
1. Economic factors
2. Political and legal forces
3. Technological forces
4. Global forces
5. Geographic forces
6. Social forces
How do factors in the macro environment influence change?
1. Economic- the cycle of 'booms and busts' in the economy can determine business activity.
2. Political and legal- the creation of new laws.
3. Technological- new technology will make a business more competitive.
4. Global- practices that are implemented to assist globalisation.
5. Geographic- strategies in place to manage exports, currency fluctuations, diverse customer base.
6. Social- society's attitudes and values
Outlines the process of determining which forces drive and which resist a proposed change.
Forces that support the change
Forces that work against the change
An unenthusiastic response from management to proposed change
Which are the main driving forces within a business?
Those usually in the internal environment
What are the restraining forces?
1. Management- hasty decisions, unclear decisions.
2. Employees- worried that they cannot adapt to new procedures, staffing considerations.
3. Time- not enough time, change takes too long and can often be irrelevant to the time once it can be implemented.
4. Competitors- dominant competitors can deter change.
5. Low productivity- change may result in corporate culture disruption, low staff morale, fear of unknown and lack of security.
6. Organisational inertia- staff do not want to move outside their comfort zones, desire a safe and predictable status quo.
7. Legislation- new laws place restrictions on operational practises and procedures.
8. Costs- if they aren't well informed or calculated correctly.
What are the main financial costs of change?
1. Purchasing new equipment.
2. Redundancy payments.
3. Retraining the workforce.
4. Reorganising plant layout.
Change management process
The sequence of steps that a manager would follow for the successful implementation and adoption of change.
Someone who helps people achieve an objective by providing unobtrusive assistance
Kotter's 8 step change management model
1. Create urgency.
2. Form a powerful coalition.
3. Create a vision for change.
4. Communicate the vision.
5. Remove obstacles.
6. Create short-term wins.
7. Build on the change.
8. Anchor the change in corporate culture.
A person or group of people who act as catalysts, assuming responsibility for managing the change process
What do low-risk strategies rely on to be successful?
What are some low-risk strategies for reducing resistance to change?
-Two way, open communication
-Allowing employee involvement
-Articulating the purpose of the change, what it is, positives and negatives.
-Building trust and offering support.
What are the benefits of low risk strategies?
1. Open communication builds trust
2. Support can boost the morale of other staff.
3. Good training programs inspire confidence
4. Encouraging negotiation can empower employees to support the change and can build confidence and trust.
5. Allowing employee participation can establish a positive corporate culture.
Exerting undue influence over an employee that may be deceptive in order to get them to behave a certain way.