Revision: Management of Change
Change can be caused by a huge array of different things and there occurrences depends what different externalities effect the business the most. Changes in trends and fashions have an effect on high end retailers but wont effect paper manufactures to such a great degree. Big trends however can affect all businesses, for example the current trend in cutting carbon emissions and tackling global warming is likely to affect almost every business in some way. Improvement in the quality of competition can also effect changes within a business. The economic situation of a country can mean that a business needs to reduce or increase production depending on whether the economy is reaching a peak or is in a trough. Government legislation banning certain production techniques or the use of certain substances in production can also cause change in a business. Furthermore, it might be a takeover that causes huge changes within a business.
Change affects all aspects of a business. Below is a list detailing what the effects on a variety of different facets.
Products – new technology needs to be incorporated into the product in order for it to remain attractive to customers and it needs to be updated so that it works with the most modern of equipment. Also, customers always want the most high tech products possible so it needs to meet their demands.
Market Research – need to be constantly researching in order to find out what the current trends are and how best to meet them etc. The business needs this otherwise it wont be able to compete.
R+D – needs to research into ways of meeting the demands found in the market research, could be that it needs t become more environmentally friendly or that new products will be more useful, up to date and desirable.
Training – employees need to be trained so that they know how to use the new technology being incorporated into the business and also it needs to constantly change and improve so that customers receive the best service possible.
Workforce – Change often means that the workforce needs expanding so that it can meet the new levels of demand or so that the business can grow as a whole. Conversely change ca also mean that redundancies need to be made in order to downsize the business, for instance in a depression.
Quality – this needs to remain high at all times therefore constantly needs to change and improve so that customers as satisfied. Also it will and needs to improve along with technology.
Employees often resist change. They see it as a negative influence and that it is changing the routines that they have become used to. Also any change often instills in employees the fear that they will lose their jobs and therefore they tend to resent it. Changes to job numbers also demotivate the workforce due to the introduction of new unknown people or through the loss of friends.