Business Management - 4. Management And Change

Front 1

What is Organisational Change?

Back 1

Organisation change is the adoption of business's new idea or behaviour in response to internal or external influences.

Successful managers are the ones who anticipate and adjust to changing circumstances.

Front 2

Major (transformational) and minor (incremental) changes

Back 2

Transformational change often results in a complete restructure throughout the whole organisation.

Incremental change results in minor changes, usually involving only a few employees.

Front 3

Impact of Change on Organisational Structure

Back 3

o Outsourcing - minimum full-time staff and use as many people from outside the business as possible

o Flatter Organisational Structures - Fewer formal reporting controls, sharing best practice methods, learning forced on business needs, a supportive learning environment and a focus on continuous improvement.

o Work Teams - Closely linked to flat structures are work teams. Teamwork allows businesses to be more flexible and responsive.

Front 4

Impact of Change on Business Culture

Back 4

Changes in the external or internal environment should be reflected in its business culture.
Different attitudes, values and mindsets will eventually be adopted within the school to satisfy the new demands.

Front 5

Impact of Change on Human Resources

Back 5

o Recruitment and selection must be altered to find suitable employees
o Appropriate termination procedures must be put in place.
o New training must be put in place.
o Performance appraisal and reward systems
o Flexible working arrangements
o The bases of power will shift to collaboration and contribution
o A clear vision needs to be developed

Front 6

Impact of Change on Operations Management

Back 6

Businesses are constantly seeking new ways to speed up production time, shorten development, streamline distribution and serve customers.

Technology - Factories

Front 7

Identifying the Need for Change

Back 7

To better understand what changes need to occur, a manager needs access to accurate and up-to-date information.

Front 8

Business Information Systems

Back 8

A successful business must be able to gather, store, combine and analyse masses of data quickly and efficiently.
A business information system gathers data, organises and summarises them, and then converts them into practical information to be used by manager who use them to make decisions.

Front 9

Setting Achievable Goals

Back 9

For change to be managed effectively it is essential that any new goals be achievable.
Unachievable goals will only cause cynicism among employees and damage relationships between employees and supervisors.
Achievable goals, devised after consultation and employees and communicated clearly be management, have a much greater chance of being realized.

Front 10

Resistance to Change

Back 10

At the same time managers are undertaking change, there will be restraining forces working against them creating resistance.

1. Management – some managers may make hasty decisions and lose the confidence of their employees.
2. Fear of job loss – changes may threaten their job status or security
3. Disruption of routine – worried they cannot adopt to the new procedures
4. Time – not enough time is allowed for people to think about the change.
5. Fear of the unknown – feelings of lack of control, fear of the unknown and uncertainty about the future can lead to anxiety.
6. Inertia – refers to an unenthusiastic response to proposed changes. Some managers and employees resist change because it requires moving outside and away from their ‘comfort zones’.
7. Cost – financial cost of implementation.

Front 11

Management Consultants

Back 11

The main role of management consultants is to help businesses improve their performance and assist with change management.
They investigate existing business problems and develop plans for improvement.