1. BUSINESS AND MANAGEMENT
MODULE 1
BUSINESS ORGANIZATIONS & ENVIRONMENT

2. 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

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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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

14. 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

15. 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?