© Cambridge University Press 2012 AREA OF STUDY 2 UNIT 4 MANAGING PEOPLE AND CHANGE CHAPTER 13 MANAGEMENT OF CHANGE THE MANAGEMENT OF CHANGE

© Cambridge University Press 2012 The concept of organisational change In contemporary organisations, change is continuous and sometimes unpredictable.

© Cambridge University Press 2012 The concept of organisational change (cont.) Change is the process of taking the existing organisation, altering it, then establishing a new or altered form.

© Cambridge University Press 2012 Internal pressures as a source of change There are a number of pressures that can influence an organisation, including: internal pressures, such as corporate culture, employees, managers and policies; operating pressures, such as suppliers, competitors and trade unions;….

© Cambridge University Press 2012 Internal pressures as a source of change (cont.) …macro pressures, which are external and include economic, environmental, technological, social and legal pressures;…

© Cambridge University Press 2012 Internal pressures as a source of change (cont.) …economic pressures, including the level of economic activity, interest rates, the rate of inflation, the value of the Australian dollar and the rate of unemployment.

© Cambridge University Press 2012 Driving and restraining forces for change Kurt Lewin has developed a theory of ‘force field’ analysis that is based on the driving and restraining forces for change on organisations.

© Cambridge University Press 2012 The Kotter theory of change management John Kotter introduced an eight step change theory to manage successful change.

© Cambridge University Press 2012 Strategies for effective change management For change to be successful, a number of strategies must be in place.

© Cambridge University Press 2012 Strategies for effective change management These include identifying change strategies, communicating with employees, setting goals for each stage of the implementation, focus on training and development and performance appraisal. Strategies can include both low-risk and highrisk practices.

© Cambridge University Press 2012 The role of leadership in change management Leaders and managers play a vital role in the change process and must possess a number of skills and qualities, including communication, visionary skills, delegation and decision making.

© Cambridge University Press 2012 The possible impact of change on the internal environment Change can impact on the internal environment of an organisation, including structure, activities, operations management and human resource functions