Chapter 12 The management of change 04/04/2019 Chapter 12 The management of change This is the Title Slide © Edco 2012    It’s the Business R. DELANEY

The management of change 04/04/2019 The management of change The business environment in which modern firms must operate is extremely dynamic, which means it is subject to constant and ongoing change. This is the Title and Content Slide © Edco 2012    It’s the Business R. DELANEY

The major triggers of change for 21st Century business 04/04/2019 The major triggers of change for 21st Century business Technology Competition Consumer demands Economic environment This is the Section Header Slide © Edco 2012    It’s the Business R. DELANEY

04/04/2019 Technology Technological change has a huge impact as it allows development of: New products New business methods Better communication This is a comparison slide © Edco 2012    It’s the Business R. DELANEY

Impact of technology Computer aided design 04/04/2019 Impact of technology Computer aided design Computer aided manufacturing Computer integrated manufacturing Electronic data Interchange Video-conferencing Paypath Impact on HRM and marketing © Edco 2012    It’s the Business R. DELANEY

Information and communications technology (ICT) 04/04/2019 Information and communications technology (ICT) The development of personal computers, mobile communications and the internet have all changed the way in which businesses operate. ICT also provides management with a range of tools to assist them in managing ongoing change in their business. © Edco 2012    It’s the Business R. DELANEY

04/04/2019 Competition Deregulation refers to a situation where barriers to free trade are removed. Global market deregulation has increased levels of competition in the marketplace. In some industries innovation can surpass tradition and businesses need to invest heavily in research and development (R&D). The rapid rise of Nokia serves to illustrate this. © Edco 2012    It’s the Business R. DELANEY

04/04/2019 Consumer demands Changing lifestyles create demand for new and innovative products. For example, microwaves, mobile phones, American fridges. © Edco 2012    It’s the Business R. DELANEY

Economic environment External changes such as: Interest rates Taxation 04/04/2019 Economic environment External changes such as: Interest rates Taxation Oil prices Market deregulation All of the above contribute to the creation of markets which are dynamic and unpredictable. © Edco 2012    It’s the Business R. DELANEY

Strategies for managing the change process 04/04/2019 Strategies for managing the change process Communication and consultation Training and development A ‘facilitator’ management style Employee empowerment Teamwork A commitment to TQM © Edco 2012    It’s the Business R. DELANEY

Empowerment Quality assurance 04/04/2019 Empowerment Quality assurance This is a process which gives employees the power to make decisions about their work to give them responsibility. Companies try to provide consumers with a guarantee that all aspects of their product development and delivery will be of the highest quality. Use of ISO certification and Q-Mark. © Edco 2012    It’s the Business R. DELANEY

Total Quality Management (TQM)) 04/04/2019 Total Quality Management (TQM)) The aim of TQM is to achieve the optimum levels of quality for each and every aspect of a company’s operations. TQM is not just about finished goods: the entire organisation must focus on improved quality. TQM incorporates many dynamic practices including empowerment, teamwork, R&D, benchmarking and quality assurance. © Edco 2012    It’s the Business R. DELANEY

Teamwork – four stages 1. Forming 2. Storming 3. Norming 4. Performing 04/04/2019 Teamwork – four stages 1. Forming 2. Storming 3. Norming 4. Performing © Edco 2012    It’s the Business R. DELANEY