3.10: strategic change

• the behaviour of the senior staff (bosses etc) helps clearly show the culture of a business
• some businesses use psychometric tests to help ensure new employees are well suited to the job and will continue the culture
• the cultural differences in countries should be considered so that the target market is satisfied
• a healthy culture is one that meets the real needs of customers, the staff have a 'can do' attitude anjd exists for a force for good
• POWER culture

  • centralised and automatic power that is held by a small number of individuals
• POWER culture

  • possible employee misconduct (ethical issues) when attempting to please the main decision maker
• ROLE culture

  • dependent on an invidiuals job role, and not the personal skills and qualities of the individual.
• ROLE culture

  • this is usually done for staff to avoid mistakes
• ROLE culture

  • suited to a stable enviroment
• TASK culture

  • no single power source
  • projects are allocated to employees in different departments
  • flexible
  • groups are disbanded once projects are completed
• PERSON culture

  • individuals are encourages to build skills and enhance their expertise with employees of a similar background
• PERSON culture

  • usually found in professional roles where staff are knowlegable in complex fields
• What is incremental change?

  Small, gradual adjustments over time
• What is the evaluation of incremental change?

  Low resistance but slow impact
• What is step change?

  Large, sudden shifts in strategy or structure
• What is the evaluation of step change?

  Quick impact but high resistance from employees
• What is disruptive change?

  Innovations that completely reshape industries
• What is the evaluation of disruptive change?

  Creates opportunities but can destroy existing businesses
• What are internal causes of change?

  Factors within the business prompting change
• How can new leadership cause change?

  A new CEO may change the strategy
• What does a culture shift in a business imply?

  Businesses may try to become more ethical
• How does business growth cause change?

  Expansion requires change in structure and operations
• What are external causes of change?

  Factors outside the business prompting change
• How can political factors cause change?

  Government laws and regulations impact business
• What economic factors can cause change?

  Inflation, recession, and consumer confidence
• How do social factors cause change?

  Changing demographics and ethical concerns
• What technological factors can cause change?

  Automation, AI, and e-commerce growth
• How do environmental factors cause change?

  Climate change policies and CSR pressure
• What legislative factors can cause change?

  Minimum wage increases and data protection laws
• How does competition cause change?

  New competitors disrupt the market
• What is Lewin’s Force Field Analysis?

  A model identifying driving and restraining forces
• What are driving forces in Lewin’s Force Field Analysis?

  Forces pushing for change
• What are restraining forces in Lewin’s Force Field Analysis?

  Forces resisting change
• What is the evaluation of Lewin’s Force Field Analysis?

  Helps managers weigh pros and cons of change
• What are Kotter & Schlesinger’s reasons for resistance to change?

  Factors causing employees to resist change
• What is self-interest in resistance to change?

  Fear of job loss or increased workload
• How does misinformation contribute to resistance to change?

  Employees don’t understand the need for change
• What does different assessments mean in resistance to change?

  Some believe the change is unnecessary
• What does low tolerance for change imply?

  People prefer stability over change
• What is the first way to overcome resistance?

  Education & Communication