1. What Causes Change in a Business?
Read the scenario given to you and say what was the cause of change in that case. [10mins]

2. TOPIC: Topic 1: Business Organization and Environment
LESSON TITLE: Change Management
COMPETENCY FOCUS:
Entrepreneurship (S4): To develop your entrepreneurial skills in preparing a realistic proposal for a new business start-up. You will understand the process a business will have to go through when starting up, including the underlying principles of starting a business.  
[IB Learner Profile Development: Reflective]
Learning Objectives
By the end of the lesson, you should be able to…
LO1) To identify the causes of business change 
LO2) To explain using examples the factors causing resistance to change
LO3) To evaluate different strategies for reducing the impact of change and resistance to change.
SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development.
CRITICAL THINKING KEY:
Knowledge Application Analysis Evaluation

3. What Causes Change in a Business?
Developments in technology
Market Changes
Consumer Tastes
Legislation
Changes in the Workforce
Changes in the economy

4. BENEFITS FOR BUSINESSES TO KEEP ON TOP OF CHANGE
Business survival
Quicker response to SLEEPT factors/changes
Competitive advantage (beat your competitors!)
Increased chance of success and making a decent profit
Better able to change as need arises

5. Type of Change
Step Change – A significant change/large-scale change that has a significant effect on the business.
Incremental Change- Smaller scale change, changes occur in smaller steps/stages.
Directive change – One person gives instructions to another person.
Organic Change – Changes that occur naturally within a business. Laissez-faire (leave alone) approach which promotes the workers to drive forward changes in the business.

6. The Effects of Change Shorter Product Life Cycles
More emphasis on market research
More emphasis on R&D Retraining of managers and ‘shop floor’ workers
Businesses must take changes in to account in human resource planning
A business must develop a culture that is responsive to change
Businesses must be aware of competitors’ actions
Changes in equipment needs
Changes in production methods

7. How can a business foresee need for change?
- SLEPT analysis

8. Case Study
Read case study and respond to questions on pg. 522 (Raffo textbook)

9. Resistance to Change
Businesses are likely to face some resistance to change from parts of the workforce:
Workers/managers fear the unknown
Employees/managers fear they wont be able to carry out new tasks
Some workers worry that they may be moved away from ‘friends’ or to do a job they dislike

10. Removing the Resistance to Change
Provide clear objectives
Hold discussions with staff prior to change taking place
Prevention of misinformation/rumours
There must be sufficient resources allocated to achieving the change
Follow company procedures and law
Project Champions
Project Groups

11. Lewin’s Force-Field Analysis

12. Lewin’s Force-Field Analysis
Many factors drive change in a business.  Lewin identified four forces: In Lewin’s model there are forces driving change and forces restraining it. Where there is equilibrium between the two sets of forces there will be no change. In order for change to occur the driving force must exceed the restraining force

13. Lewin’s Force-Field Analysis
Lewin’s analysis can be used to:
Investigate the balance of power involved in an issue
Identify the key stakeholders on the issue
Identify opponents and allies
Identify how to influence the target groups

14. Lewin’s Force-Field Analysis
Forces for change include:
Internal forces for change
External forces for change
A general sense that the business could “do better” Desire to increase profitability Reorganisation to increase efficiency Natural ageing and decline in a business (e.g. machinery, products) Conflict between departments The need for greater flexibility in organisational structures Concerns about ineffective communication, de-motivation or poor business relationships
Increased demands for higher quality and levels of customer service Uncertain economic conditions Greater competition Higher cost of inputs Legislation & taxes Political interests Ethics & social values Technological  change Globalisation Scarcity of natural resources Changing nature and composition of the workforce

15. Exam Practice
Revision Questions pg. 87

16. Reflection
TOK Question, P.g. 87