5A - Leadership In change management

restraining forces?

are factors that resist a business change or actively try to stop it.

What are the features of restraining forces?

- If restraining forces exceed driving forces, a business change is unlikely to be successful.

- For a business change to be successful, businesses have to implement strategies to overcome the relevant restraining forces.

Managers

are individuals who oversee and coordinate a business's employees and lead its operations to ultimately achieve the business's objectives.

Managers being a driving and restraining force

- Managers (owners, leaders, upper management) often initiate business change and act as a driving force. However, managers can also be a restraining force if they do not support the change.

Why would managers act as a restraining force?

- Doubts about the benefits of the change for business performance.

- Fear that the change threatens their position or authority.

How can businesses overcome managers as a restraining force?

negotiations reach compromises, therefore, gains manager support.

Modify change the change proposal by addressing concerns, therefore, increases manager acceptance.

Employees

are individuals who are hired by a business to complete work tasks and support the achievement of its objectives.

Why would employees act as a restraining force?

- Uncertainty about outcomes.

- Fear of inability to adapt.

- Concerns about job security or disrupted work routines.

- Lack of understanding or belief in the need for change.

What can employees acting as a restraining force lead to?

Resistance can escalate to industrial action (e.g., strikes).

How can businesses overcome employees as a restraining force?

Communication - explains the change.

Training - builds employee skills.

Motivation - encourages support.

Support - reduces resistance.

Legislation

is the laws and legal regulations that a business has to follow.

how does legislation act as restraining force?

- Compliance with laws is essential to avoid fines, suspensions, or closure.

- Legislation may restrict or delay certain changes.

- may become more expensive due to new training or equipment costs.

- can halt operations affecting efficiency

how can a business overcome legislation?

Apply for licenses or permits or Modify contracts and agreements.

- Adjust the change so it meets legal requirements.

What laws affect competitors?

- Competition and Consumer Act.

- Intellectual property laws.

What laws affect customers?

- Warranties and refunds.

- Privacy laws.

What laws affect employees?

- Occupational Health and Safety.

- Anti-bullying and harassment.

- Unfair dismissal laws.

What laws affect the environment?

Environmental licenses and permits.

What laws affect suppliers?

- Contracts.

- Importing and exporting laws.

Organisational Interia

is the tendency for a business to maintain established ways of operating.

Why is organisational inertia a restraining force?

businesses are comfortable with their existing culture, systems and routines. Employees and managers may resist changing familiar ways of working, making change more difficult and time-consuming to implement.

How can businesses overcome organisational inertia?

- Changing leadership.

- Restructuring the business.

- Creating work environments that encourage innovation and new directions.

why is time a restraining force?

- Business change often must be completed within specific time frames.

- when a business is rushed for time, they might make mistakes or fail to plan properly.

examples of time restrictions on businesses

- Restraining forces like legislation deadlines or financial pressures.

- Driving forces such as competitor actions or societal expectations.

How can businesses overcome time as a restraining force?

Planning the change carefully - creates a realistic timeline and deadlines.

Allocating sufficient resources - ensures enough staff, money and equipment are available.

Setting priorities - focuses on the most important changes first.

Why are financial considerations a restraining force?

Financial considerations are a restraining force because business change can be expensive, and a business may lack the funds needed to implement the change, causing it to be delayed or prevented.

What can businesses do if funds are insufficient?

Prepare a budget - helps plan and control the costs of implementing change.

Obtain additional finance (e.g. a loan or investment) - provides the funds needed to implement the change.

Implement the change in stages - spreads costs over time, making the change more affordable.

summary of each restraining force

Managers → Don't support the change.

Employees → Fear the change.

Legislation → Follow the law.

Organisational inertia → Stuck in old ways.

Time → Not enough time.

Financial considerations → Not enough money.