Change management - PowerPoint PPT Presentation

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Change management

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Change management THE TIMES 100 – PowerPoint PPT presentation

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Title: Change management


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

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

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

12
Answers to questions
  • 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.

13
  • 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.
  • 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.
  • Effective communication
  • 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
What have you learned?
  • 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

17
End of the case study questions
  • Describe one internal factor and one external
    factor that might cause change in the business
    environment.
  • Internal factors
  • 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

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 organizations 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
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