Ib 1.8 - Change and the Management of Change
Review Questions 1.8 1. What is meant by ‘change management’?
Change management refers to processes and techniques used to plan, implement and evaluate changes in business operations in order to achieve a required objective 2. List four factors that cause change within the organisation.
There are six main factors that will influence change: * Customers demand better quality products at competitive prices. Customers may also change their habits and tastes, such as the desire to purchase more economically friendly products * Competitors will try to provide better products and services, perhaps through new product development and other marketing strategies. Hence, to stay competitive and maintain market share, the business will need to change its practices * Management will need to stay abreast of market trends to ensure that the business remains competitive. They must ask, for example, whether better customer services can be achieved and how it might be achieved due to higher levels of customer expectations * Technological Progress such as the microchip revolution, communications technology, the internet and e-commerce have forced firms to change the way they conduct their business * Government changes in legislation, such as employment laws, can have a profound impact on businesses * External Factors including changes in fashion, the state of the economy (such as a recession) and globalisation will create change in an organisation. Some external factors may disrupt businesses so much that there is a need for Crisis Management, such as an oil crisis or terrorist attacks 3. List four reasons for resistance to change within an organisation.
One of the major barriers to effective change management is the resistance to change from the workforce. According to Professor John Kotter, there are four main reasons why people tend to be resistant to change: * Self-Interest takes priority over corporate objectives *
Change management refers to processes and techniques used to plan, implement and evaluate changes in business operations in order to achieve a required objective 2. List four factors that cause change within the organisation.
There are six main factors that will influence change: * Customers demand better quality products at competitive prices. Customers may also change their habits and tastes, such as the desire to purchase more economically friendly products * Competitors will try to provide better products and services, perhaps through new product development and other marketing strategies. Hence, to stay competitive and maintain market share, the business will need to change its practices * Management will need to stay abreast of market trends to ensure that the business remains competitive. They must ask, for example, whether better customer services can be achieved and how it might be achieved due to higher levels of customer expectations * Technological Progress such as the microchip revolution, communications technology, the internet and e-commerce have forced firms to change the way they conduct their business * Government changes in legislation, such as employment laws, can have a profound impact on businesses * External Factors including changes in fashion, the state of the economy (such as a recession) and globalisation will create change in an organisation. Some external factors may disrupt businesses so much that there is a need for Crisis Management, such as an oil crisis or terrorist attacks 3. List four reasons for resistance to change within an organisation.
One of the major barriers to effective change management is the resistance to change from the workforce. According to Professor John Kotter, there are four main reasons why people tend to be resistant to change: * Self-Interest takes priority over corporate objectives *