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?
1.1Understanding the Nature of Business
1.2Understanding Different Business Forms
1.3External Environments
2Managers, Leadership & Decision Making
2.1Understanding Management
2.2Understanding Management Decision Making
2.3Understanding Stakeholders
3Decision Making to Improve Marketing Performance
3.1Decision Making to Improve Marketing Performance
3.2Understanding Markets & Customers
3.3Market Segmentation, Targeting & Positioning
3.4Marketing Mix
3.4.1Marketing Mix3.4.2Product Decisions3.4.3Pricing Decisions & Price Skimming3.4.4Pricing Decisions & Price Penetration3.4.5A-A* (AO3/4) - Pricing & Competition3.4.6Promotional Decisions3.4.7Promotional Decisions 23.4.8Promotional Decisions 33.4.9Distribution Decisions3.4.10Distribution Decisions 23.4.11Digital Marketing3.4.12Evaluating Digital Marketing3.4.13A-A* (AO3/4) - The Marketing Mix & Promotion
4Decision Making to Improve Operational Performance
4.1Setting Operational Objectives
4.2Analysing Operational Performance
4.3Increasing Efficiency & Productivity
4.4Improving Quality
4.5Managing Inventory & Supply Chains
5Decision Making to Improve Financial Performance
5.1Financial Objectives
5.2Analysing Financial Performance
5.3Sources of Finance
5.4Improving Cash Flow & Profit
6Improving Human Resource Performance
6.1Human Resource Objectives
6.2Analysing Human Resource Performance
6.3Improving Organisational Design
6.4Improving Motivation & Engagement
6.5Improving Employer-Employee Relations
7Analysing the Strategic Position of a Business
7.1Mission, Corporate Objectives, Strategy
7.2Financial Ratio Analysis
7.3Overall Performance
7.4Political & Legal Change
7.5Economic Change
7.6Social & Technological Environment
7.7Competitive Environment
7.8Investment Appraisal
8Choosing Strategic Direction
8.1Choosing Areas of Competition
8.2Choosing How to Compete
9How to Pursue Strategies
9.1Change in Scale
9.2Assessing Innovation
9.3Assessing Internationalisation
9.4Digital Technology
10Managing Strategic Change
10.1Managing Change
10.2Managing Organisational Culture
10.3Managing Strategic Implementation
10.4Problems with Strategy
Jump to other topics
1What is Business?
1.1Understanding the Nature of Business
1.2Understanding Different Business Forms
1.3External Environments
2Managers, Leadership & Decision Making
2.1Understanding Management
2.2Understanding Management Decision Making
2.3Understanding Stakeholders
3Decision Making to Improve Marketing Performance
3.1Decision Making to Improve Marketing Performance
3.2Understanding Markets & Customers
3.3Market Segmentation, Targeting & Positioning
3.4Marketing Mix
3.4.1Marketing Mix3.4.2Product Decisions3.4.3Pricing Decisions & Price Skimming3.4.4Pricing Decisions & Price Penetration3.4.5A-A* (AO3/4) - Pricing & Competition3.4.6Promotional Decisions3.4.7Promotional Decisions 23.4.8Promotional Decisions 33.4.9Distribution Decisions3.4.10Distribution Decisions 23.4.11Digital Marketing3.4.12Evaluating Digital Marketing3.4.13A-A* (AO3/4) - The Marketing Mix & Promotion
4Decision Making to Improve Operational Performance
4.1Setting Operational Objectives
4.2Analysing Operational Performance
4.3Increasing Efficiency & Productivity
4.4Improving Quality
4.5Managing Inventory & Supply Chains
5Decision Making to Improve Financial Performance
5.1Financial Objectives
5.2Analysing Financial Performance
5.3Sources of Finance
5.4Improving Cash Flow & Profit
6Improving Human Resource Performance
6.1Human Resource Objectives
6.2Analysing Human Resource Performance
6.3Improving Organisational Design
6.4Improving Motivation & Engagement
6.5Improving Employer-Employee Relations
7Analysing the Strategic Position of a Business
7.1Mission, Corporate Objectives, Strategy
7.2Financial Ratio Analysis
7.3Overall Performance
7.4Political & Legal Change
7.5Economic Change
7.6Social & Technological Environment
7.7Competitive Environment
7.8Investment Appraisal
8Choosing Strategic Direction
8.1Choosing Areas of Competition
8.2Choosing How to Compete
9How to Pursue Strategies
9.1Change in Scale
9.2Assessing Innovation
9.3Assessing Internationalisation
9.4Digital Technology
10Managing Strategic Change
10.1Managing Change
10.2Managing Organisational Culture
10.3Managing Strategic Implementation
10.4Problems with Strategy
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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