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Effective Change Management - Coggle Diagram
Effective Change Management
One of the most difficult tasks of leadership is encouraging and managing organisational change.
To prepare for change and to be in a position to react effectively to change, managers need to put in place a number of key strategies.
These consist of
Increased research and development (R & D) expenditure
Increased expenditure on R & D is used both in preparation for change, and as a reaction to change.
This type of spending develops new products, new methods of production and new technologies.
Additional capital investment
Change can create the need for investment in new technology and new equipment.
Change is often an expensive undertaking. For example, relocation can be very costly. If a business does not have access to sufficient finance
Investing in the future is essential
Employee preparation
The first stage in effective change management is preparing employees for change.
Such training will make a workforce more flexible and adaptable, enabling them to meet the demands of change.
There may be need for recruitment so that the business has workers with new skills or managers who can force the pace of change.
This may involve reskilling to enable employees to carry out new tasks effectively.
Implementing change
Preparing for change is not the same as implementing the required changes.
To help solve the problem of implementation, management theorists have presented a range of approaches for implementing change.
John Storey offered four optional methods of implementing change. This is called the Storey’s Four Methods of Implementing Change
Negotiated Piecemeal Initiatives
Management and workers will consult and agree on various changes as they become necessary; for example, new shift patterns or productivity agreements.
There is no overall agreement or coordinated process that is in place.
This method may be easier to implement than a total package of change but can result in difficulties because of a lack of a complete system change.
For example, a productivity agreement negotiated in one location but not in others could cause resentment and conflict.
Imposed Piecemeal Initiatives
Managers plan and implement changes such as a move to flexitime or the development of new products or services in order to solve particular problems.
This saves time and the structure of change is in the hands of management who understand the overall objectives of the business.
However, the imposition of change can be met with resistance from workers who may resent the lack of consultation.
Each piecemeal change may also be aimed at a different objective, whereas a total package is more likely to be working towards one overall objective.
Negotiated Total Package
Management and workers negotiate on how a major change in the way a business functions will be implemented.
The change implemented will be based on agreement between management and workers in all locations from which the business operates.
Trade unions will be very much involved and increased rewards and improved conditions are likely to be offered to the workforce.
This is more likely to result in a coordinated process of change which is understood, and accepted, by all stakeholders.
This is likely to be the most effective method of undertaking a process of change but requires a good deal of preparation and expenditure.
In reality, this may not always be possible in a highly competitive and difficult business environment.
Imposed Total Package
Senior management plan and introduce a major change all at once without consultation with workers.
This sort of change might occur when negotiated change has failed or because of rapidly changing external factors that need responding to quickly.
Of course, this sort of change is likely to be resisted by managers and workers and its success depends on the skills of the senior managers in being able to establish new systems whilst minimising disruption.
Half of all change initiatives fail