Key Factors in Change
Business: BTEC Level 3 National Extended Diploma, topic 5.3.2
Key Factors in Change
Businesses may face difficulties when implementing change. Businesses must consider several factors which can impact whether any change is successful.
Organisational culture
- The business’ current organisational culture may impact whether any change is successful.
- Business change is likely to be challenging if it involves cultural changes. A business' culture involves all the people and their combinations of values, beliefs, and attitudes. These can be hard to measure and predict.
Size of the organisation
- The size of the organisation may impact whether any change is successful.
- Business change is likely to be challenging if it involves large organisations as these businesses have large workforces and communication can be slower.
Time and speed of change
- The time and speed of change may impact whether any change is successful.
- Business change is likely to be challenging if time is not taken to consult with all business stakeholders and if business leaders rush the process without consulting and considering their different options.
Resistance
- Managing resistance to change is vital for businesses that are implementing change.
- Businesses must try to minimise resistance to change from employees if any change is to be as successful as possible.
- The merger of Fiat and Chrysler is often given as an example of a bad cultural fit between 2 businesses.
Test yourself on Key Factors in Change
When is implementing change likely to be hardest for a business?
In which of the following scenarios will business change be difficult to implement?