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Summary AQA A Level business unit 10 managing strategic change
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AQA A Level business unit 10 managing strategic change SUMMARY doc (detailed)
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Managing Strategic Change -Changes can be:
- Rapid and unexpected
- Long term
- Incremental - step by step change
- Disruptive
- Internal vs external
Lewin’s force field analysis supports managers and leaders in comparing pressures /
forces for change against the forces resisting this change
- If pressures / forces for change are greater than the forces resisting change, then
the change will most likely be successful (vice versa)
- Responding to poor financial performance / poor customer satisfaction may
require a business to make changes → acting as a pressure for change
- A lack of resource / finance / 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 / working conditions
Advantages Disadvantages
Requires full participation of all It is subjective → hard to maintain
stakeholders / employees objectivity whilst scoring the forces
It is a professional tool which is used to Only works in a limited setting and in
help understand a situation → managers some complex settings it is less applicable
can make informed decisions
, Change leaders / employees will have Further complicates divisions and
clarity on the desired change and hostility → hard to have consensus on
whether or not it should be implemented scoring the factors
Helps identify supporters of change and
those who oppose it → greater
understanding of different opinions
The value of a flexible organisation
A flexible workforce can adapt and reshape to both internal and external changes - this
can help save time and money.
1. Restructuring
Will be needed if a business expands internationally.
2. Delayering
A business may want to cut costs, this can be done by removing a layer of the
hierarchy. Delayering can help improve efficiency of decision making as there will
be better communication between each level of employees.
3. Flexible employment contracts (zero-contract & part-time)
This allows a business to flexibly move employees around when they are needed,
it can help save costs.
A mechanistic structure is one that is very formal, there are clear rules and procedures
that are expected to be followed. There is close control over activities within the
business. This results in the business performing well as they are being constantly
monitored, ensuring the work gets done.
Organic structures have a more fluid team, these structures tend to involve people based
on their ability to contribute to a task rather than based on their job title or level of
power.
By managing data effectively managers can:
- Identify changes before or as they happen
- Develop suitable strategies to respond to or prepare for change
- Evaluate the effectiveness of the strategies adopted
Kotter and Schlesigner resistance to change:
1. Self interest
2. Preference for the current situation
3. Differing view/assessment of the situation (do not agree)
4. Misunderstanding
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