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Business change management (Solutions (Use project champions (The person…
Business change management
Reasons for change
External factors
Environmental
Political legislations
Globalisation = Larger markets, growth possibilities, competition
Changes in tastes and preferences = customer needs and wants
Competition = new product, lower price etc.
Internal factors
Technological changes = cause delayering
Development and innovation
Cost-cutting to improve competitiveness
Relocation
Reasons for resistance
Self-interest
An employee identifies their own interests above those of the firm
Workers could lose status or job security
Fear of failure
Humans like ORDER and STABILITY
Change entails new methods and strategies = adaptation required
Fearful - instead of being seen as an opportunity for growth it is seen as an unpredictable, dangerous situation = the unknown
Misinformation
If the reasons for the change are not clearly communicated, employees will feel uncomfortable or untrusted.
They may think there is thus, no good reason for the change and hence act against it
Lack of trust
Due to past experiences, the employee may not believe the reasons given to them for change or the reassurances from managers
Misunderstandings can arise
Solutions
Explain the reasoning
Keeping employees constantly informed
Involve employees in decision-making processes
Use project champions
The person will be appointed by senior management to help drive and assist a programme of change within the business
Like 'cheerleaders' they will smooth the path and remove as many obstacles as possible
Plan the timing of the change
Ensure resources are in place to ensure it happening
Check on how individuals are coping and support them
Change management
"Planning, implementing, controlling and reviewing the movement of an organisation from its current state to a new one"
Questions to ask when evaluating change
Is the change anticipated or unanticipated?
Is the change incremental or dramatic?
What are the best solutions to prevent cultural clashes?
Have managers planned for change?
To what extent can management control the change process?