Certificate in Principles of Business and
Unit CT 185
Principles of supporting change in a
Credit value 1
Unit CT 185
Principles of supporting change in a business
The reasons for change in
working methods, products
or services. The knowledge
needed to support change in
a positive way.
What am I
Why change happens, how
to respond to it and the
purpose of supporting it.
Change happens in a business environment for a number of reasons. Some of these will be outside of the control of the organisation, for instance: Economic and political changes. A downturn in the economy may lead to a major loss of business in sectors such as the provision of luxury goods and services. Similarly, an upturn will lead to opportunities that were not previously available. Political
change may lead to a different emphasis
being placed on areas of government or
local government spending.
Changes in legislation. These may lead to
increased sales of products or services or to
an increase in the red tape which can add to
the administrative burden on the
Other changes will be decided on by the senior management of the organisation. These may include:
Merging the organisation with another, buying new companies or changing the ownership of the organisation. This will usually lead to major changes at the highest level in the short term which will, inevitably, lead to changes throughout the organisation over a period of time
Relocation or the introduction of new strategies to increase sales or reduce costs in order to increase profits
Some changes are introduced as a reaction to:
The introduction of new products and services. This may be in terms of products and services which your organisation is able to provide, increasing sales or which they can use to reduce costs
Loss of revenue. This may result from a
reduction in volume of sales or a reduction in
the selling price
A review of the organisation’s sales. This
may be in response to the loss of revenue
Rising costs. These may be outside of the
organisation’s control such as rent or taxes or controllable such as staff costs or travel expenses
Many of the above will lead to changes in procedures and systems and a review of working methods. The introduction of new technology may also have a major effect on the organisation.
Organisations may need to review the products or services they supply in order to increase profitability or to continually improve their offer. Products and services may also change in response to:
The introduction of new technology
The arrival of new competitors
Loss of sales
It is important that people involved in the changes are motivated and supported during the early stages. Making sure everybody is involved and given the opportunity to contribute to changes, where possible, will help them to take ownership of the change.
Whether individuals can contribute or not, it is essential to communicate information about the change effectively and
obtain feedback as soon as information is available in order to prevent gossip and misinformation spreading. Where
individuals may incur financial loss, such as by needing to
relocate, information on how the organisation will deal
with this needs to be passed on.
Where changes will affect individuals’ roles, the new roles and objectives need to be identified and the reasons for the change explained and agreed. If there are changes to the systems and procedures they carry out, a training needs analysis should be completed; again, this should be done as soon as information is available in order to reassure staff that their...
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