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25 Cards in this Set
- Front
- Back
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Major causes of change |
Introduction of new technology Changes in competition Changes in consumer taste New legislation Labour market changes Changes in economic conditions Changes in business ownership |
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Internal causes of change |
Changes in management style- new leaders may wish to implement new strategies which lead to a change in the culture of a business Changes in business ownership Changes in business size Introduction of new technology |
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External causes of change |
Introduction to new technology Labour market Changes in economic conditions Competition Change in consumer tastes New legislation |
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Planned change |
Is created internally and is stricter and timetabled, clear objectives for the change are established, timetables created and resources applied to creating the change |
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Unplanned change |
Occurs in response to a shock to the business and is often unstructured and under- resourced. |
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Effects of change |
Shorter product life cycles Diminished brand loyalty New products need to be developed- because goods are seen as more disposable and consumers are constantly looking for better quality products Production methods will need to be changed Retraining the workforce Flexible workforce The need to comply with constantly changing legislation |
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Effective change management |
Employee preparation- this may involve reskilling to enable employees to carry out new tasks effectively Increased research and development (R&D expenditure)- this type of spending develops new products, new methods of production and new technologies Additional capital investment- can create need for investment in new technology and new equipment, it's an expensive process |
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Implementing change |
Preparing for change is not the same as implementing the required changes. John storey offered four optional methods of implementing change |
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1.) negotiated total package |
Management and workers negotiate on how a major change in the way a business functions will be implemented, therefore all management and workers in involved in the business agree on the change. The workforce is likely to be offered increased reseda and improved conditions. This is likely to be a coordinated process which is understand and accepted by all stakeholders. It requires a good deal of preparation and expenditure. It may not always be possible in a highly competitive and difficult business environment |
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2.) negotiated piecemeal initiative |
Management and workers consult and agree on various changes as they become necessary. ( e.g new shift patterns) there no one agreement or coordinated process that is in place for the negotiated total package. This method by be easier to implement than NTP of change but can cause difficulties due to lack of complete system change. E.g a productivity agreement negotiated in one location but not in others could cause resentment and conflict |
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Impose piecemeal initiatives |
Mangers an and implement changes such as a move to flexitime or the development of quality circles to solve a particular problem. It saves time and the structure of change is in the hands of management who understand overall objectives of the business. However the imposition of change can be met with resistance from workers who may resent lack of consultation. Each piecemeal change may be aimed at a different objective, whereas TP is more likely working towards one overall objective. |
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Imposed total package |
Senior management plan and Introduce a major change all at once without consultation of workers. This change might occur when negotiated changes has failed or because of rapidly changing external factors that need responding to quickly. This is likely to be restricted by middle managers and workers and its success depends on the skills of the senior managers in being able to establish new systems whilst minimising disruption. |
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Resistance to change in business- employees |
Worker resistance - businesses try and implement change without considering how employees who do the work feel about the change. Failure to address employee queries can result in an expensive failure. To avoid resistance business should ensure that employees are motivated to support the change, they should Involve workers from the beginning Clearly explain the reasons for change Have a clear strategy, direction and vision |
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Resistance to change- supplier |
Suppliers maybe reluctant to adapt to changes made by their customers, for example manufacturers who change to a J.I.T system may find that some of their suppliers resist having to supply components 'as and when' the manufacturer requires. This could result in an increase in costs as deliveries need to increase in frequency. Smaller supplies have no choice but to accept the situation or lose a valuable customer. To avoid resistance manufacturers should involve their suppliers from the outset and explain that such change could result in increase orders and that all parties will benefit in the long run |
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Resistance to change- owners |
Owners may fear change will increase risk. Shareholders may need convincing that operating in new markets will not damage their dividends, especially as implementing change may be costly and may involve investment. Management will need to explain their plans to the shareholders carefully to convince them that sacrifice now will lead to better profit in the future |
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Lewin's three step process of change |
Lewin recognised that it was not the difficulty of creating change but of re-enforcing the change that really mattered. He was concerned with ensuring that the change continued into the future and that workers did not slip back into old working methods, he saw three stages of creating and maintaining change: Unfreezing Change or transition Refreezing |
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Stage 1 unfreezing |
This involves creating a motivation for change. Creating realisation amongst employees that change is necessary. They therefore have to 'unfreeze' from current approaches to work and be prepared to adapt to a new method of working. Employees have to be shown that change is necessary and then managers need to create a situation in which employees desire the change |
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Stage 2 change of transition |
Lewin described the period of transition as a potentially difficult time as workers are now moving towards a new way of doing things. They are learning about the changes and need time to understand and adapt. Support from management is important in making the transition period work. Support can come from training, educating and learning from, and not being criticised for mistakes. Allowing workers to develop their own solutions and maintaining clear communication of the objectives and benefits of the change are also important in maintaining the transition. |
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Stage 2 change of transition |
Lewin described the period of transition as a potentially difficult time as workers are now moving towards a new way of doing things. They are learning about the changes and need time to understand and adapt. Support from management is important in making the transition period work. Support can come from training, educating and learning from, and not being criticised for mistakes. Allowing workers to develop their own solutions and maintaining clear communication of the objectives and benefits of the change are also important in maintaining the transition. |
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Stage 3 refreezing |
This final stage in the change process is about establishing stability once the changes have ben made. Workers have accepted the change and new methods have now become the norm. Workers are settled in new structures, methods of communication and are now comfortable in their routines. This refreezing implies workers must not be forced into continual change but allowed time to adapt. New methods need to become completely ingrained before further change occurs, otherwise any gains may be lost |
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Organisational culture and change |
The culture of an organisation is sometimes describes as 'the way we do things around here'. It reflects the beliefs norms and. Skies of a business and often proves to be very difficult thing to change |
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Evaluating change |
Businesses will need to ex some a number of performance indicators in order to establish if its objectives have been achieved. Possible indicators may include Delivery times Production defects Customer satisfaction surveys Market share Sales turnover profit- the bottom line |
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Incremental change |
Means introducing small, gradual changes to a business/ project instead of a few or one big large change. Tends to be more inclusive |
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Incremental change |
Means introducing small, gradual changes to a business/ project instead of a few or one big large change. Tends to be more inclusive |
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Rapid change |
A dramatic or radical change in one go. |
