Business – Unit 4, Area of Study 2 – Change Management

Any alteration in the internal or external environments.

The adoption of a new idea or behaviour resulting in a difference in the form of operations in a business

– some changes are forced, some are planned.
– ability manage, embrace and adapt change will determine competitive advantage and survival.
– success managers are those who adjust.
– changes must occur at a pace that allows the business to absorb them into operations.

initiate change rather than react to events.

to wait for a change to occur then respond to it.

responding to unplanned changes will require decision-making from management in order to reduce the disruption in an organisation.

changes often come from the desire to develop new and improved ways of doing things.

– changes can be difficult as they are usually formed over years.
– recognizing what culture is required in order to achieve success is crucial if change occurs.

change comes as new policies are developed and implemented.

to ensure profitability, businesses must be responsive to changes in customer tastes and preferences so they can satisfy.

– need to monitor the activities of their competition and determine what effect they could have on the marketplace.
– knowledge of changes enables an organisation to make modifications to existing activities and plan new ones.

should always be on the lookout for new or backup, even when they are being met by their present suppliers.

– some seek to directly influence behaviors in a business.
– alter behaviors surrounding products, marketing techniques and operational procedures.

– Australian economy has cycles of booms and busts.
– after this period they gradually slow until a recession or depression, and eventually pick back up again.

when new laws are passed, organisations must comply with legislative requirements.

– a business that wants to be locally, nationally or globally competitive must adopt appropriate technology.
– if it is slow to adopt technology, they are likely to fail due to competitors striving and gaining more market share.

– operate in world market
– strengthened by globalization.

– Australia location within the Asian-pacific create problems for expanding.
– exporting, requires business to develop strategies to manage overseas transportation, currency flacutations, diverse customer base.

constantly confronted by society change in attitudes and values.

outlines the process of determining which forces drive and which resist a proposed change.

Forces that initiate, encourage and support the change.

those that work against the change, creating resistance.

– some may make hasty decisions which are poorly timed and unclear.
– others may be indecisive and put off making a decision which creates uncertainty.
– situations may eventually cause employees to lose confidence in decision-making abilities of management.

– any change to an organisation and operating procedures will eventually impact on level and type of staffing.
– may also resist due to being worried about not being able to adapt to new procedures which threaten work routines.

– in come situations, not enough time is allowed for people to think about change, accept it, and implement it.
– in other situations, timing is poor.

when the dominate the marketplace, other business may be reluctant to initiate major changes because they fear it will be waste of time and resources.

– when a change is implement is will usually cause some disruption to operating systems and work patterns.
– major changes may result in a complete breakdown of corporate culture.
– fear of reduction is why business resist change.
– the loss of security, feelings of lack of control, fear of the unknown and uncertainty create low productivity.

managements inactivity or lack of response when faced with proposed changes.

– must be complied with.
– when the legislation places restrictions on certain operational practices and procedure creates a restraining force.

– financial costs like:
– new equipment
– redundancy payments
– retraining the workforce.
– reorganizing plant layout.

– a sense of urgency around the need for change needs to be developed which may create motivation to get things moving.

Convincing people its important – takes a strong leadership and visible support from people in the organisation

link concepts to an overall vision that people can understand and remember – helps them to understand why you are asking them to do something.

have it communicated in day-to-day operations within the business – frequently and powerfully.

vision has been accepted – now hopefully employees want to achieve the benefits of the change so that obstacles that may impede progress are removed.

within a short time frame there needs to be results so that employees can see the changes.

the business provides opportunities to build on what went right and identify what can be improved.

Corporate culture often determines what gets done, so the values behind the vision must show day-to-day work.

– to achieve successful change it rely’s on communication, employee involvement, in the change process by using training, support and negotiation.
ADVANTAGES: creates a better workplace that accepts change.
DISADVANTAGES: takes longer

Manipulation – devious exertion of influence over employees to get them to do what you want them to do.
Threat: direct or indirect
ADVANTAGES: quicker
DISADVANTAGES: more risk of unsatisfaction

the process of positively influencing and encouraging individuals to set and achieve objectives.

often results in a complete restructure through the whole organisation

results in minor changes usually involving only a few employees.

OUTSOURCING: contracting of some organisational operations to outside suppliers.
– flat structures
– work teams

– changes in external or internal should be reflected in its culture

– recruitment and selection altered to reflect the needs for knowledge and skills required.
– training (teamwork, problem solving, decision making and change management)
– performance and reward systems (reinforce behaviors)

-take advantage of technology
– new advancements in production technology.
– flexible manufacturing
– emphasis of quality assurance