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32 Cards in this Set

  • Front
  • Back

The Goal of Change

To bring about some desired behaviour or structuralmodifications aimed at improving organisation performance.

The Management of Change

The process of taking an existing organisation altering or transforming it and establishing a new or altered form of the organisation.

The two Types of Change

-Transformational


-Incremental

Transformational Change

A complete restructure throughout the wholeorganisation

Incremental Change

Minor changes involving a few employees at atimeall

Sources of Change

The dynamic and ever changing nature of the environments of LSOs provide sources of change.

Internal Environment

Employees: may pressure changes to occur.Technology ect.


Management: through their roles can exert pressure for change.

External Environment

a) Operating pressures for change can come from customers- who may demand changes be made to a product.


b) Macro environment pressures can arise through technology

Driving Forces for Change

- Management


- Costs


- Time


- Employees


- Competitors


- Low Productivity


- Legislation

Why is Management a driving force for change?

Management, particularly byeffectively employing the role of leadership can drive the change. Theinterpersonal qualities of management can assist the employees to trust itsleadership, thus helping to promote the change.

Why is Cost a driving force for change?

An organisation which can afford to finance the change will be more likely to be able to support and encourage the change

Why is Time a driving force for change?

An organisation which has the time to plan ahead, and to put in place strategies to introduce the change will be more likely to support the change.

Why are Employees a driving force for change?

If the employees have a positive culture- one which supports and embraces change- the change process will be more likely to be effectively promoted and supported.

Why are Competitors a driving force for change?

The need to be able to keep up with, or to stay ahead of competitors will encourage organisations to change.

Why is Low Productivity a driving force for change?

Low productivity is a significant cost of a business. Organisations experiencing low rates of productivity will be encouraged to make changes to improve rates of productivity.

Why is Legislation a driving force for change?

New laws or regulations from Government can act as driving force for change. Eg Federation University had to respond to changed concerning funding arrangements for the tertiary sector.

What are some restraining forces of change?

- Organisationalinertia


- Employees


- Competitors


- Legislation


- Cost


- Productivity

What is Organisational inertia and why is it a restraining force for change?

This occurs when management is not open or receptive to change.

Why are Employees a restraining force for change?

May resist change because they are worried that they cannot adapt to the new procedures, which threaten established work routines.

Why are Competitors a restraining force for change?

When a competitor dominates the market, Organisations may be reluctant to initiate major changes because they fear it will be a waste of time and resources.

Why is Legislation a restraining force for change?

This occurs when the legislation places restrictions on certain operation practices and procedures.

Why is Cost a restraining force for change?

An organisation contemplating change must weigh up the costs and benefits of the change.

Why is Productivity a restraining force for change?

When change is implemented it will usually cause some disruption to the existing operating systems and work patterns.

Strategies for change are:

Change can be difficult to achieve. Studies generally revealthat “people resistance” is the major cause of failure in achieving change.

Low Risk tactics are

Are those that don’t have negative outcomesif they are not successful.

Low Risk tactics include:

•Two-way communication between management andemployees


•Empowerment of employees to make decisions•Establishment of work teams to implementchanges.


•Low risk tactics involve a participativeapproach to the implementation of change

Strengths of Low Risk tactics

- Encourages greater acceptance and support of the change, thus lowering resistance to change.


- Helps to empower employees and to increase their levels of motivation and satisfaction. - Employee input in the process can provide management with suggestions to how best introduce and manage the change process.

Weaknesses of Low Risk tactics

Even with consultation with management, if the objectives of the change are not achievable, employees will not react positively.

High Risk Tactics are:

because their failure will result innegative outcomes, particularly permanently damaging staff and managementrelationships.

Strengths of High Risk Tactics

- May result in the speedier introduction of change……why? Management is able to direct the organisation in the direction which they want.


- May add to certainty and consistency in the organisation.

High Risk Tactics include:

• Threats to employees who do not agree with thechange


• Manipulation by managers e.g managers distortingthe situation


• High risk tactics involve an autocratic approachto the implementation of change

Weaknesses of High Risk tactics include:

- Tactics such as manipulation and threats may be regarded as unethical Can lead to resentment from staff, thus can significantly slow down the change process.


- Staff may not conform to the changes.


- May damage staff and management relationships. Can thus, negatively impact on the corporate culture of the organisation.