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Unit 1 – Business Organisation & Environment

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

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Unit 1 – Business Organisation & Environment

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

  2. 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

  3. 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?

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

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

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

  7. Using the table below give examples of and strategies for management for each change TASK

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

  9. Dramatic changes at Churchill College 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

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

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

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

  13. Example Total = Total =

  14. Create a Lewin’s force field analysis diagram • List the driving forces for change and the restraining forces against change • Allocate a weight to each of these forces, from 1 (weak) to 5 (strong) • Represent this on adiagram ImportantIf 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

  15. 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

  16. 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

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

  18. 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

  19. 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

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