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
* Misunderstandings occur because the purpose of change has not been communicated properly * Different Assessments of the Situation occur when management and staff disagree on the advantages and disadvantages of change * Low Tolerance of Change because people prefer familiarity rather than disruptions and uncertainties 4. Distinguish between ‘driving’ and ‘restraining’ forces. Driving forces push for change whereas restraining forces act against a proposal for change. The relative strength of the forces will determine whether the change takes place. It is due to all these conflicting forces that change must be managed within organisations if they are to move forward and remain competitive 5. What are the advantages of Lewin’s force field analysis in assessing the management of change? Force field analysis can help to work out how to improve a project’s chances of success. Managers can investigate how the driving forces can be strengthened and how restraining forces can be reduced or eliminated. This model does not solve the problems of change management, but it helps managers to assess the forces more clearly. Lewin argued that improvements in business organisations are not the result of one-off changes but that a small adjustment to the forces can result in many small changes and improvements 6. What are the limitations of Lewin’s force field analysis? The main disadvantages in using force field analysis are:
* Weighing attached to the forces may be subjective rather than referring to facts or evidence * Not all relevant forces may be considered, perhaps to deliberately over-emphasise the need for change 7. Outline the management of change theories of Kruger, Kotter, Kanter and Storey. Kruger’s Iceberg model of change argues that there are two levels of change but that managers often only concentrate their efforts on the top level of the iceberg: * Top level: Cost, Quality and Time
* Bottom level: PEOPLE: Attitudes, Beliefs, Perceptions, Acceptances and...
Please join StudyMode to read the full document