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change management - introduction

What is change management?

Change management is an aspect of management focusing on ensuring that the firm responds to the environment in which it operates

Four key features of change management:

• Change is the result of dissatisfaction with the present strategies
• It is essential to develop a vision for a better alternative
• It is necessary to develop strategies to implement change
• There will be resistance to the proposals at some stage

Change often arises from:

• The development of new products
• The entry of new competition
• Changes in consumer tastes & preferences
• Changes in the cultural, political, economic, legal and social framework
• Changes in technology leading to technological obsolescence or new product opportunities

Change affects all aspect of people management.  HRM is directly affected be change in:

• Organisational structure
• Personnel of teams
• Process
• Location
• Work load
• Work role
• Work practices
• Supervision
• Work teams

There are many forces for change in business:

• Internal forces
• Desire to increase profitability
• Reorganisation to increase efficiency
• Conflict between departments
• To change organisational culture
• External forces
• Customer demand
• Competition
• Cost of inputs
• Legislation
• Tax changes
• New technology
• Political
• Ethics
• Technological obsolescence

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