3 6 managing change

A transformational leader brings extensive changes to a business's aims, objectives, structure, and culture, with a new strategic direction and vision.

Divestment is the process of selling assets or discontinuing investments.

True. Change can have a positive effect on business competitiveness when management and engaged employees coordinate their efforts.

Productivity refers to the efficiency with which inputs, such as labour and capital, are used to produce outputs.

A redundancy payment is compensation paid to employees who are dismissed from their jobs due to factors such as downsizing or restructuring.

True. In the short term, as change is being implemented and employees get used to the change, productivity is likely to be reduced.

False. Seasonal fluctuations or cyclical economic factors can often be planned for as they are capable of being forecasted.

Legal compliance is where a business adheres to laws that regulate business practices.

Competitive edge refers to factors that lead to a business having an advantage over its rivals.

A merger is when two existing but independent companies combine to form a new, singular legal entity.

Organisational culture is the shared values, beliefs, and norms that shape the behaviour and attitudes of employees within a business.

False. Employee resistance to change often occurs.

The pace of change refers to the speed or rate at which changes are implemented within an organisation.

False. An innovative and flexible culture may mean that employees are more receptive to change.

False. In a hierarchical culture, communication may be limited and information may not be easily accessible to all employees.

Resistance to change is the act of opposing or being reluctant to accept and implement changes within an organisation.

True. Large businesses often have more resources available to support the implementation of change, such as financial resources, technology and experienced staff.

True. Employees who are involved in the change process are more likely to embrace the change and feel a sense of ownership over it

Scenario planning is the process of anticipating possible changes in a business's situation and devising ways of dealing with them.

Risk assessment is the process of identifying, evaluating, and prioritising risks and the precautions that may be taken to protect against them.

False. Natural disasters are often unpredictable, but their potential impact is so devastating that they are commonly considered in business risk assessments.

An IT systems failure occurs when a business's information technology systems are unavailable or not functioning properly, which can have a devastating effect on operations.

Malware is any software designed to cause damage or disruption to a computer system, such as viruses, worms, and Trojans.

A data breach is the unauthorised access, theft, or loss of sensitive or confidential data, which can occur due to cyberattacks, human error, or negligence.

False. Losing key staff can cause difficulties for a business, including loss of experience, knowledge, business contacts and relationships with customers and suppliers.

A business continuity plan sets out how a business will operate following a serious incident or disaster and how it expects to return to normal as soon as possible.

Examples of insider threats include:

Succession planning involves identifying and developing current employees who have the potential to move into key roles in the future.

False. In succession planning, businesses may look at family members, key employees, or outside candidates to develop a pool of potential candidates for key roles.

A supply chain disruption is any event that causes a disruption in the production, sale, or distribution of products, e.g. natural disasters, regional conflicts, and pandemics.