10.1.1
Managing Change
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Managing Change
Managers and leaders of all businesses should constantly monitor their internal and external environment for pressures to change.

Managing change
- When considering pressures for change, managers and leaders must also consider employee resistance to change, known as forces resisting change.

Lewin's force field
- Lewin’s force field analysis supports managers and leaders in comparing pressures or forces for change against the forces resisting this change.

The success of implementing change
- Lewin’s force field analysis states that if pressures and forces for change are greater than the forces resisting change, then such change is likely to be successful.
- Lewin’s force field analysis states that if pressures and forces for change are less than the forces resisting change, then such change is likely to be unsuccessful.

Factors contributing to change
- Responding to poor financial performance may require a business to make changes, therefore acting as a pressure for change.
- Poor customer satisfaction may require a business to make changes, therefore acting as a pressure for change.

Factors contributing to resisting change
- A lack of resources, including finance and labour, may provide resistance to change if a business is unable to provide the resources needed for change.
- Employee concerns may provide resistance to change if employees are worried about the impact of the change on their job security or working conditions.
Strategies to Implement Change
Kotter and Schlesinger propose six strategies which managers and leaders can use to overcome resistance to change:

Methods of overcoming resistance
- Educating and communicating with staff can help employees overcome their resistance as discussions can be used to inform staff of the reason behind why the change is required for the business’ ongoing success.
- Facilitation can help employees overcome their resistance through supporting and providing resources so that employees have the tools needed to address and adapt to change.
- Participation can help employees overcome their resistance by giving them a sense of involvement and ownership so that they feel involved with the process of change.

Methods of overcoming resistance continued
- Coercion can force employees to overcome their resistance by offering employees the decision to either co-operate or accept redundancy.
- Negotiation can help employees overcome their resistance through offering rewards to employees who agree to co-operate with and support change.
- Manipulation can help employees overcome their resistance through targeting employees likely to offer the most resistance and offering opportunities for these employees to become involved in the change process.

Reasons for resistance
- Employee self-interest may provide resistance to change as employees value their own values and beliefs above those of the business.
- Employee misunderstanding may provide resistance to change as employees simply do not understand the change or do not understand how it will affect them.

Reasons for resistance continued
- Employees may prefer the current situation (known as the status quo) and therefore see no reason to change, and therefore resist any change proposed.
- Employees may have made a different assessment to that of the managers and leaders, and may agree that some change is needed, but may disagree about the type of change needed, which can provide resistance.
1What is Business?
1.1Nature & Purpose of Business
1.2Different Business Forms
1.3Businesses Operate Within an External Environment
2Managers, Leadership & Decision Making
2.1Management, Leadership & Decision Making
2.2Management Decision Making
2.3Role & Importance of Stakeholders
3Marketing Management
3.1Setting Marketing Objectives
3.2Understanding Markets & Customers
3.3Segmentation, Targeting, Positioning
3.4Using the Marketing Mix
3.4.1Marketing Mix3.4.2Pricing Decisions & Price Skimming3.4.3Pricing Decisions & Price Penetration3.4.4Promotional Decisions3.4.5Promotional Decisions 23.4.6Promotional Decisions 33.4.7Distribution Decisions3.4.8Distribution Decisions 23.4.9Social Media & Influencers3.4.10Digital Marketing3.4.11Evaluating Digital Marketing3.4.12A-A* (AO3/4) - The Marketing Mix & Promotion3.4.13A-A* (AO3/4) - Pricing & Competition
4Operational Management
4.1Setting Operational Objectives
4.2Analysing Operational Performance
4.3Increasing Efficiency & Productivity
4.4Improving Quality
4.5Managing Inventory & Supply Chains
4.6Business & The External Environment
5Financial Management
5.1Setting Financial Objectives
5.2Analysing Financial Performance
5.3Sources of Finance
5.4Improving Cash Flow & Profits
6Human Resource Management
6.1Setting Human Resource Objectives
6.2Analysing Human Resource Performance
6.3Improving Org Design & Human Resource Flow
6.4Improving Motivation & Engagement
6.5Improving Employer-Employee Relations
7Strategic Position of a Business (A Level Only)
7.1Mission, Objectives, Strategy
7.2Financial Ratio Analysis
7.3Assessing Overall Performance
7.4Assessing Political & Legal Change
7.5Assessing Economic Change
7.6Assessing Social & Technological Change
7.7The Competitive Environment
7.8Investment Appraisal
8Choosing Strategic Direction (A Level Only)
8.1Markets to Compete & Products to Offer
8.2How to Compete
9Pursuing Strategies (A Level Only)
9.1Assessing a Change in Scale
9.2Assessing Innovation
9.3Globalisation & Internationalisation
9.4Greater Use of Digital Technology
10Managing Strategic Change
10.1Managing Change
10.2Managing Organisational Culture
10.3Managing Strategic Implementation
10.4Problems with Strategy & Why They Fail
Jump to other topics
1What is Business?
1.1Nature & Purpose of Business
1.2Different Business Forms
1.3Businesses Operate Within an External Environment
2Managers, Leadership & Decision Making
2.1Management, Leadership & Decision Making
2.2Management Decision Making
2.3Role & Importance of Stakeholders
3Marketing Management
3.1Setting Marketing Objectives
3.2Understanding Markets & Customers
3.3Segmentation, Targeting, Positioning
3.4Using the Marketing Mix
3.4.1Marketing Mix3.4.2Pricing Decisions & Price Skimming3.4.3Pricing Decisions & Price Penetration3.4.4Promotional Decisions3.4.5Promotional Decisions 23.4.6Promotional Decisions 33.4.7Distribution Decisions3.4.8Distribution Decisions 23.4.9Social Media & Influencers3.4.10Digital Marketing3.4.11Evaluating Digital Marketing3.4.12A-A* (AO3/4) - The Marketing Mix & Promotion3.4.13A-A* (AO3/4) - Pricing & Competition
4Operational Management
4.1Setting Operational Objectives
4.2Analysing Operational Performance
4.3Increasing Efficiency & Productivity
4.4Improving Quality
4.5Managing Inventory & Supply Chains
4.6Business & The External Environment
5Financial Management
5.1Setting Financial Objectives
5.2Analysing Financial Performance
5.3Sources of Finance
5.4Improving Cash Flow & Profits
6Human Resource Management
6.1Setting Human Resource Objectives
6.2Analysing Human Resource Performance
6.3Improving Org Design & Human Resource Flow
6.4Improving Motivation & Engagement
6.5Improving Employer-Employee Relations
7Strategic Position of a Business (A Level Only)
7.1Mission, Objectives, Strategy
7.2Financial Ratio Analysis
7.3Assessing Overall Performance
7.4Assessing Political & Legal Change
7.5Assessing Economic Change
7.6Assessing Social & Technological Change
7.7The Competitive Environment
7.8Investment Appraisal
8Choosing Strategic Direction (A Level Only)
8.1Markets to Compete & Products to Offer
8.2How to Compete
9Pursuing Strategies (A Level Only)
9.1Assessing a Change in Scale
9.2Assessing Innovation
9.3Globalisation & Internationalisation
9.4Greater Use of Digital Technology
10Managing Strategic Change
10.1Managing Change
10.2Managing Organisational Culture
10.3Managing Strategic Implementation
10.4Problems with Strategy & Why They Fail
Practice questions on Managing Change
Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.
- 1Factors which contribute to change:Fill in the list
- 2
- 3Six strategies to overcome resistance:Fill in the list
- 4
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