10.1 Managing Change (AQA A Level Business): Flashcards
Exam code: 7132
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Give two benefits of change for a business.
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Give two benefits of change for a business.
Adapting to market change and continuous improvement (also driving innovation/growth, managing risks and engaging employees).
Define incremental change.
Incremental change is a series of small, gradual improvements rather than a single large overhaul.
Give one benefit of incremental change.
Lower risk (also staff acceptance, cost-effectiveness and cultivating a habit of improvement).
Define disruptive change.
Disruptive change is a radical shift that transforms an industry or market via a new business model, technology or way of operating.
Give an example of disruptive change.
Netflix shifting from mailing DVD rentals to on-demand streaming in 2007.
Give two internal causes of change.
Leadership change and poor performance (also technology upgrades and employee-driven improvement).
Give two external causes of change.
Technological advances and competitive pressure (also economic fluctuations, legal changes, social trends and ethical concerns).
Define Lewin's force field analysis.
Force field analysis involves managers identifying the driving and restraining forces around a change decision to judge whether it should go ahead.
What are driving forces in force field analysis?
Factors that justify or support a strategic change.
What are restraining forces in force field analysis?
Factors that prevent or limit change.
How are the forces weighted in force field analysis?
From 1 to 5 by relative importance (5 = most important, 1 = least).
In force field analysis, when is a change likely to succeed?
When the total weight of driving forces is greater than the total weight of restraining forces.
Driving forces total 9 and restraining forces total 10. What should the business do?
Abandon the change — the restraining forces (10) outweigh the driving forces (9).
Give one strength of force field analysis.
It is simple and visual (also comprehensive, identifies critical factors and aids decision-making and communication).
Give one weakness of force field analysis.
It is subjective and lacks quantitative data (also a snapshot in time that doesn't provide solutions).
In force field analysis, forces are weighted from 1 to by importance.
In force field analysis, forces are weighted from 1 to 5 by importance.
True or False?
If restraining forces outweigh driving forces, a change is likely to succeed.
False.
If restraining forces outweigh driving forces, the change is less likely to succeed and may be abandoned.
True or False?
Incremental change involves small, gradual improvements rather than a single overhaul.
True.
Incremental change is lower-risk and gives staff time to adapt, unlike a single large overhaul.
Define a flexible organisation.
A flexible organisation can quickly change its structure, processes or resources in response to new challenges.
Give two benefits of being a flexible organisation.
Rapid adaptation to change and efficient use of resources (also more innovation and stronger resilience).
Define restructuring.
Restructuring is making significant changes to a business's organisation, operations or finance to improve efficiency, cut costs or adapt.
Give one advantage and one disadvantage of restructuring.
Advantage: improved efficiency and cost reduction; disadvantage: staff uncertainty, up-front expenses and talent loss.
Define delayering.
Delayering is removing one or more tiers of management to create a flatter structure.
Give one advantage of delayering.
Faster decisions (also clearer communication, lower costs and more empowered teams).
Give one disadvantage of delayering.
Manager overload from wider spans of control (also loss of experience, reduced morale and fewer promotion paths).
Define multi-skilling.
Multi-skilling is training workers to fulfil multiple job roles within a business.
Name three ways to develop a flexible workforce.
Multi-skilling, part-time/temporary working and home working (also outsourcing and flexible hours).
Give one advantage of home working for a business.
Smaller or fewer premises reduce costs (also attracting workers from a wide area and possibly higher productivity).
Give one disadvantage of home working for employees.
Staff may feel isolated from colleagues (also higher household costs and a blurred work-home divide).
Define a mechanistic structure.
A mechanistic structure is rigid and hierarchical, with centralised decisions, clearly defined roles and formal communication.
Define an organic structure.
An organic structure is flexible and adaptive, with decentralised decisions, few rules and open communication.
Give an example of a mechanistic versus an organic structure.
Mechanistic: McDonald's (standardised routines); organic: Google (engineers choose projects, informal idea-sharing).
How does knowledge and information management (KIM) support flexibility?
Faster decisions, better collaboration, protecting organisational memory, supporting flexible working and encouraging innovation.
Give one advantage of outsourcing as a flexible working method.
Access to specialised skills not available in-house, and reduced labour costs.
A flexible organisation can quickly change its structure, processes or in response to new challenges.
A flexible organisation can quickly change its structure, processes or resources in response to new challenges.
True or False?
An organic structure has centralised decision-making and strict formal rules.
False.
That describes a mechanistic structure; organic structures are decentralised with few rules and open communication.
True or False?
Delayering removes layers of management to create a flatter structure.
True.
It usually cuts middle-management levels, widening the span of control of remaining managers.
Define resistance to change.
Resistance to change is the unwillingness to adapt to new circumstances or ways of doing things.
Name Kotter & Schlesinger's four reasons for resistance to change.
Self-interest, fear/misunderstanding, different assessments and preferring things as they are.
What does 'self-interest' mean as a reason for resistance?
People worry that change could threaten their job, status or pay.
What do 'different assessments' mean as a reason for resistance?
People genuinely disagree about what the problem is or how best to fix it — not just self-interest.
Name three of Kotter & Schlesinger's six methods of overcoming resistance.
Education/communication, participation/involvement and facilitation/support (also negotiation, manipulation/co-option and coercion).
When is education and communication useful for overcoming resistance?
When people lack facts or hold incorrect views about why the change is needed.
How does participation help overcome resistance?
Involving staff in designing and implementing the change builds ownership and commitment.
What is coercion as a method of overcoming resistance?
Enforcing change through formal orders or implied threats — used only as a last resort.
Name two other barriers to change (beyond staff resistance).
Financial constraints and rigid structures (inertia) — also regulatory and legal limits.
How can financial constraints be a barrier to change?
The business lacks the money or credit for the investments needed — e.g. new equipment, technology or training.
How can facilitation and support overcome resistance?
Providing training, resources and coaching to help employees cope with new ways of working.
Kotter and Schlesinger identified reasons why workers resist change.
Kotter and Schlesinger identified four reasons why workers resist change.
True or False?
Coercion is usually Kotter & Schlesinger's first-choice method for overcoming resistance.
False.
Coercion is a last resort, used only when other methods have failed.
True or False?
'Different assessments' means employees genuinely disagree about the best solution, not just self-interest.
True.
It reflects genuine debate over what is best for the business, distinct from self-interest.
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