1. Change management
THE TIMES 100

2. Agenda Learning goals Management of change short PPT lesson
Compare your answer with a partner
Take up the answer as a class
Agenda

3. Learning goals What is organizational change?
Give examples of positive and negative internal drivers for change
Be able to explain the two types of decision made by managers: strategic and tactical.
Give examples of external drivers for change
Give examples of barriers to change
How can managers and organizations plan for change?
Analyse why effective communication is so important in managing change
Learning goals

4. Organisational change
Change is inevitable in organisations
It may be anticipated or unanticipated
Firms may need to change their:
Culture
Size
Product range
Production processes
Leadership styles
Target markets
Structure

5. Internal drivers for change
Positive factors:
Increase in size of the organisation through acquisition (buying another company) or increased sales
New owners
Investment in technology
Negative factors
Disappointing business performance
Demotivated workforce
Lack of innovation

6. External drivers for change
Changes in the economy e.g. moving into recovery in the business cycle
Legal and political changes e.g. the introduction CRTC about cable bundles.
Social change e.g. the ageing population
Technological change e.g. growth of the internet
Changes in the market e.g. increasing competition or changing consumer tastes

7. Barriers to change Costs The culture of an organisation
A lack of communication
Managers feeling threatened
A lack of understanding of the reasons for change
Resistance of employees:
Fear of the unknown
Job security in question
Loss of status for some workers

8. Planning for change There are three main questions to answer
when planning change:
Where are we now?
Where do we want to be?
How do we get there?
The process will involve:
Planning
Implementation
Review

9. Effective change management
Effective change management will require:
Clear objectives
Careful planning
Effective communication with stakeholders
Participation of workers in the change process
Positive leadership
Guidance and training
Building a change culture

10. Evaluating change A review of the change will discover if...
The change has been successful, compared to its objectives
Further change is required
Without constant review firms run the risk
of losing competitive advantage

11. Compare your answers with a partner and see if you have the same answer.
Case study questions

12. Identify two things that might occur in the external environment which will require an organisation to make changes.
Examples include:
 the introduction of new legislation
 the development of new technology
 changes in the economy
 market fluctuations.
Answers to questions

13. 2. Describe the two types of decisions that may need to be made
2. Describe the two types of decisions that may need to be made. The two types of decisions are: Strategic – these usually affect the whole organisation and are generally made by senior managers. Strategic decisions have long term implications. Tactical – these usually short to medium term decisions made on a department bases

14. 3. Explain some potential barriers to change
3. Explain some potential barriers to change. Barriers to change include: • the culture of an organisation resisting the power structure • managers feeling threatened by the process of change • resistance from employees • a lack of understanding about why change is to take place • a lack of communication or trust • employees fearing the unknown.

15. 4. Analyse why effective communication is so important in managing change.
reaches the correct stakeholders
lets stakeholders know the reasons for change
allows stakeholders to ask questions
encourages stakeholders to be involved in the change process
helps to avoid rumours.

16. 1. Some workers will resist change - TRUE 2
1. Some workers will resist change - TRUE 2. Good communication with employees will help to make the process more effective - TRUE 3. Change occurs very rarely - FALSE 4. Improving technology can be a driver for change - TRUE 5. It is better if employees are not involved in the change process - FALSE 6. Change is usually quick and inexpensive - FALSE
What have you learned?

17. End of the case study questions
Increase in size of the organisation through acquisition (buying another company) or increased sales
Describe one internal factor and one external factor that might cause change in the business environment.
New owners
Investment in technology
Negative factors
Disappointing business performance
Internal factors
Positive factors:
Demotivated workforce
Lack of innovation
End of the case study questions

18. External factors
Changes in the economy e.g. moving into recovery in the business cycle
Legal and political changes e.g. the introduction CRTC about cable bundles.
Social change e.g. the ageing population
Technological change e.g. growth of the internet
Changes in the market e.g. increasing competition or changing consumer tastes

19. 2. Explain two benefits of having well trained managers when managing change
Well trained managers will be able to anticipate the change and better plan and prepare for it, this minimizes the impact of change and ensures continuous and productive business (keep change under control).
Well trained managers support change and allow a business to meet their business object and maintain or gain a competitive advantage.

20. 3. Using an example, analyse why individual employees might resist the process of change.
An organization’s culture might not be conducive to change a lot of workers like to keep things the way they were.
Manager might feel threatened by the process of change and might feel that they jobs are at risk.

21. Employees might resist change because they do not understand why it is happening. Communication between management of all levels and employees might not be clear, which leads to mistrust. Most of the time people think that change brings job lose which causes fear due to job security.

22. 4. Evaluate why an organisation might want to create a culture of change
It may support the process of Total Quality Management (TQM). It also encourages employees to look forward to the process of change as the benefits have been made clear. Employees become involved and supportive, helping a company reach its objectives, increase profitability and competitiveness.

23. Helps to reduce cost, when employees and managers are aware of the benefits of change they are not afraid and do not become demotivated. There is low turnover and company spends less money training new employees. Moreover existing employee become more proficient at their job and in-turn become efficient and productive