Change management

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Change management

• THE TIMES 100

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Agenda

• Learning goals
• Management of change short PPT lesson
• Compare your answer with a partner
• Take up the answer as a class

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Learning goals

• What is organizational change?
• Give examples of positive and negative internal
  drivers for change
• Be able to explain the two types of decision made
  by managers strategic and tactical.
• Give examples of external drivers for change
• Give examples of barriers to change
• How can managers and organizations plan for
  change?
• Analyse why effective communication is so
  important in managing change

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Organisational change

• Change is inevitable in organisations
• It may be anticipated or unanticipated
• Firms may need to change their
• Culture
• Size
• Product range
• Production processes
• Leadership styles
• Target markets
• Structure

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Internal drivers for change

• Positive factors
• Increase in size of the organisation through
  acquisition (buying another company) or increased
  sales
• New owners
• Investment in technology
• Negative factors
• Disappointing business performance
• Demotivated workforce
• Lack of innovation

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External drivers for change

• Changes in the economy e.g. moving into recovery
  in the business cycle
• Legal and political changes e.g. the introduction
  CRTC about cable bundles.
• Social change e.g. the ageing population
• Technological change e.g. growth of the internet
• Changes in the market e.g. increasing competition
  or changing consumer tastes

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Barriers to change

• Costs
• The culture of an organisation
• A lack of communication
• Managers feeling threatened
• A lack of understanding of the reasons for change
• Resistance of employees
• Fear of the unknown
• Job security in question
• Loss of status for some workers

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Planning for change

• There are three main questions to answer
• when planning change
• Where are we now?
• Where do we want to be?
• How do we get there?
• The process will involve
• Planning
• Implementation
• Review

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Effective change management

• Effective change management will require
• Clear objectives
• Careful planning
• Effective communication with stakeholders
• Participation of workers in the change process
• Positive leadership
• Guidance and training
• Building a change culture

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Evaluating change

• A review of the change will discover if...
• The change has been successful, compared to its
  objectives
• Further change is required
• Without constant review firms run the risk
• of losing competitive advantage

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Case study questions

• Compare your answers with a partner and see if
  you have the same answer.

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Answers to questions

• Identify two things that might occur in the
  external environment which will require an
  organisation to make changes.
• Examples include
• ? the introduction of new legislation
• ? the development of new technology
• ? changes in the economy
• ? market fluctuations.

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• 2. Describe the two types of decisions that may
  need to be made.
• The two types of decisions are
• Strategic these usually affect the whole
  organisation and are generally made by senior
  managers. Strategic decisions have long term
  implications.
• Tactical these usually short to medium term
  decisions made on a department bases

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• 3. Explain some potential barriers to change.
• Barriers to change include
• the culture of an organisation resisting the
  power structure
• managers feeling threatened by the process of
  change
• resistance from employees
• a lack of understanding about why change is to
  take place
• a lack of communication or trust
• employees fearing the unknown.

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• 4. Analyse why effective communication is so
  important in managing change.
• Effective communication
• reaches the correct stakeholders
• lets stakeholders know the reasons for change
• allows stakeholders to ask questions
• encourages stakeholders to be involved in the
  change process
• helps to avoid rumours.

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What have you learned?

• 1. Some workers will resist change - TRUE
• 2. Good communication with employees will help to
  make the process more effective - TRUE
• 3. Change occurs very rarely - FALSE
• 4. Improving technology can be a driver for
  change - TRUE
• 5. It is better if employees are not involved in
  the change process - FALSE
• 6. Change is usually quick and inexpensive -
  FALSE

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End of the case study questions

• Describe one internal factor and one external
  factor that might cause change in the business
  environment.
• Internal factors
• Positive factors
• Increase in size of the organisation through
  acquisition (buying another company) or increased
  sales
• New owners
• Investment in technology
• Negative factors
• Disappointing business performance
• Demotivated workforce
• Lack of innovation

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• External factors
• Changes in the economy e.g. moving into recovery
  in the business cycle
• Legal and political changes e.g. the introduction
  CRTC about cable bundles.
• Social change e.g. the ageing population
• Technological change e.g. growth of the internet
• Changes in the market e.g. increasing competition
  or changing consumer tastes

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• 2. Explain two benefits of having well trained
  managers when managing change
• Well trained managers will be able to anticipate
  the change and better plan and prepare for it,
  this minimizes the impact of change and ensures
  continuous and productive business (keep change
  under control).
• Well trained managers support change and allow a
  business to meet their business object and
  maintain or gain a competitive advantage.

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• 3. Using an example, analyse why individual
  employees might resist the process of change.
• An organizations culture might not be conducive
  to change a lot of workers like to keep things
  the way they were.
•  
• Manager might feel threatened by the process of
  change and might feel that they jobs are at risk.
  
•  

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• Employees might resist change because they do not
  understand why it is happening. Communication
  between management of all levels and employees
  might not be clear, which leads to mistrust. Most
  of the time people think that change brings job
  lose which causes fear due to job security.

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• 4. Evaluate why an organisation might want to
  create a culture of change
• It may support the process of Total Quality
  Management (TQM). It also encourages employees to
  look forward to the process of change as the
  benefits have been made clear. Employees become
  involved and supportive, helping a company reach
  its objectives, increase profitability and
  competitiveness.
•  

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• Helps to reduce cost, when employees and managers
  are aware of the benefits of change they are not
  afraid and do not become demotivated. There is
  low turnover and company spends less money
  training new employees. Moreover existing
  employee become more proficient at their job and
  in-turn become efficient and productive