Understand employer organisations PowerPoint presentation Understand employer organisations Handout 10: Change

Why is change important to business? To keep up with changing customer needs and expectations. To survive in a constantly-evolving market. To keep abreast of competitors. To find more efficient ways of operating. To introduce innovation. To attract more customers and therefore profit.

Reasons changes happen in business mergers acquisition of new companies new ownership of company loss of revenue changes in legislation rising costs new strategies sales reviews new technology economic/political changes relocation introduction of new products/services changes in procedures/systems. There are a number of different types of change that can occur in business and all have an impact on those concerned who will need strategies to cope with it.

Types of change Changes are either internal or external to the organisation. External changes will impact on organisations and force them to make internal changes.

Internal changes may relate to technologies used systems and procedures strategy culture structure staff, teams and leaders. Technologies used, eg the introduction of computerised systems or new programs. Systems and procedures, eg to embrace new legislation, as a result of complaints. Strategy, eg the organisation concentrates on a new area or expands its business. Culture, eg the organisation undergoes a shift in values or ways of working. This is often the case when a new directorate is brought in. Structure – the business needs restructuring to become more efficient or competitive. Staff, teams and leaders may be changed, reduced, redeployed.

External changes may relate to: emerging new technologies the market the economic and political climate new regulations or legislation competitors the environment. The market – consumer choices and habits are influenced by all sorts of factors and as such are apt to change, meaning that sales may rise or fall. The economic and political climate – custom may fall or rise in times of economic recession, depending on the nature of the organisation. New regulations or legislation may mean that organisations have to adapt to accommodate them. Competitors may force the organisation to change its strategy in order to retain its market share. The environment – both environmentally-aware customers and legislation designed to protect it, may mean the organisation has to change the way it operates.

Review working methods, products or services When an organisation reviews its working methods, produces or services, it may impact upon one or more of the following: the business as a whole management structures departments within a business employees in teams individual employees customers competitors. Any of the factors mentioned will mean that an organisation will have to review its working methods, products or services and this is likely to result in a change to the way it operates at some level.

Reasons for reviewing working methods, products or services loss of sales new technology new competitors changing markets economic factors customer feedback increase profitability continuous improvement meeting legislative requirements.