Unit 1 – Business Organisation & Environment Change and the management of change HL ONLY

Learning Objectives HL – Explain the causes of change and the factors causing resistance to change HL – Examine the use of Lewin’s force-field analysis and the relative importance of driving and restraining forces HL - Evaluate different strategies for reducing the impact of change and the resistance to change

Businesses are dynamic in nature and are always subject to the forces of change Can you think of an example where a business has had to change how it operates?

Two types of change Dramatic change – Dramatic or radical change – Radical alternation in the organisation – Gets it over with quickly – May require some coercion Dramatic change Occurs rapidly

Two types of change Incremental change – Ongoing piecemeal change which takes place as part of an organisation’s evolution and development – Tends to more inclusive Incremental change Change occurs over a period of time in incremental stages

Factors that cause change? External causes of change Incremental OR Dramatic Globalisation Technological advances Macro economic changes Legal changes Competitors’ actions Environmental factors Incremental OR Dramatic Globalisation Technological advances Macro economic changes Legal changes Competitors’ actions Environmental factors Internal causes of change Organisational changes Relocation Cost cutting to improve competitiveness Organisational changes Relocation Cost cutting to improve competitiveness

Using the table below give examples of and strategies for management for each change Nature of ChangeExamplesStrategies for management

Fear of the unknown Fear of failure Losing something of value Different assessment of the situation Lack of trust Inertia Resistance to change

Task You will come up with one dramatic change that you will make to Churchill College You will list at least 3 groups of stakeholders that will resist the change Using the reasons for resistance to change you will explain why the stakeholders don’t want the change Dramatic changes at Churchill College

Using the cards, put the stages of change management in order Key stages in successful change management

1. Where are we now and why is the change necessary? 2. New vision and objectives 3. Ensure resources are in place to enable change to happen 4. Give maximum warning of change 5. Involve staff in the plan for change 6. Communicate 7. Introduce initial changes that bring quick results 8. Focus on training 9. Sell the benefits 10. Always remember the effects on individuals 11. Check on how individuals are coping and support

Lewin’s Force Field Analysis Write your change here Write all the reasons for the change being good here Assign a score Write all the reasons that the change may not be a good idea here Assign a score

Example Total =

1.List the driving forces for change and the restraining forces against change 2.Allocate a weight to each of these forces, from 1 (weak) to 5 (strong) 3.Represent this on a diagram Important If restraining forces are greater than driving forces, it doesn´t mean the change won´t go ahead. However the diagram will show management where the restraining force is and may help when creating ways to deal with resistance Create a Lewin’s force field analysis diagram

Project champions A project champion is an individual who has the authority to use resources within or outside an organisation for completion of a given project A project champion is chosen by the management so as to ensure supervision of a specific project from start to finish

Project champion characteristics Status – mid or senior level manager… who can push through the vision Good people skills Committed to pursuing support for the concept of change, have a passion to push change through

Project manager Project manager – plans organises and carries through the project Very different to the project champion

Project Group A project group will be given a specific task to take the company forward through whatever change they face, following the vision of the project champion who is usually appointed by the BoD & company CEO Links back to: Matrix organisation Empowerment & Enlargement Consultants

How to promote change Have a clear vision – mission statement Appropriate resources – finances – staff – and physical equipment Trained staff – with expertise A clear critical path Have a clear vision – mission statement Appropriate resources – finances – staff – and physical equipment Trained staff – with expertise A clear critical path