BUSINESS AND MANAGEMENT MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT

Management of Change Change management refers to the process and techniques used to plan, implement and evaluate changes in business operations in order to achieve a required objective Without change a business becomes complacent and no progress can be made

Factors Causing Change Six main factors that cause change: Customers Competitors Management Technological Progress Government External Factors

Resistance to Change Prof John Kotter proposed 4 reasons that people may be resistant to change: Self Interest Misunderstanding Different assessments of situation Low tolerance of change There is also the possibility of ambivalence which could underestimate the actual resistance to change

Kotter’s 6 Change Approaches Education and Communication Usually done beforehand Participation and Involvement Usually a key motivator among employees Facilitation and Support Averting potential resistance (paternalistic) Negotiation and Agreement The carrot approach; designing incentives Manipulation and Co-option Bring those resistant to change into the change process Explicit and Implicit Coercion Last resort; involves threats

Change should only be pursued if there is a clear set of goals Planning Change Change should only be pursued if there is a clear set of goals A Force Field analysis can be used to determine the relative strengths of the change involved List the encouraging forces Allocate weight to each force Show the forces graphically Show the relative effect of each force

Change Models Implementing and controlling change often proves to be difficult largely because of the resistance to change; and because of managements attitudes towards change Iceberg Model Change Phases Change Masters Storey’s Change Model Stakeholder Analysis

Iceberg Two levels of change; but management tend to focus on the levels that can be seen (top level) The bottom level often is bigger and presents greater obstacles Top level Cost, quality, and time Bottom level Attitudes, perceptions, acceptance, behaviour

Change Phases There are 8 reasons why change management fails: Allow too much complexity Fail to win support from staff Do not have a clear vision Failure to communicate Allow obstructions to the vision Do not focus on small continuous changes Ignore corporate culture Declare success to soon

Change Masters People who react quickly to change People who push to the limit with limited resources People who come up with new ideas to improve the business Have a vision Good communicators Trust and tolerance Collaboration Listen and inquire

Storey’s Change Model 4 approaches to managing the change process Total imposed package An executive decision; no negotiation Imposed piecemeal initiative Change is imposed in pieces; allows for training Negotiated total packages Involves employee groups; resistance is minimized Negotiated piecemeal packages Gradual implementation through negotiation

Stakeholder Analysis Identifies which stakeholders need to be involved in the change Looks at level of influence and reaction Appropriate communication and involvement of each stakeholder group High Level of Influence Medium Low No commitment On the fence Committed Reaction to change

Question Recommend how a business proposing to relocate its operations overseas should manage the change process to reduce potential conflict

Business Strategy Vital in today’s fast-paced global environment Resistance is a sign of discontent or uncertainty Managers need to solve the resistance before implementing change Managing planned change is easier than managing unexpected changes ie crisis situation

Case - School Uniforms The School Board is proposing school uniforms be worn by all high school students starting next September. Identify the driving forces and resistance forces What type of change style is being implemented? Could this change be implemented slowly? What are your thoughts?