BUSman Unit 4 AOS 1

Change

Any alteration in internal or external environments; for example, change in consumer tastes or change in employee expectations. It could also be a change to the way things are perceived, or a new way of dealing with problems.

Proactive approach to change- initiating change rather than simply reacting to events

Refers to the situation where a change is planned and occurs before a business is affected by pressures in their environment.

A reactive approach to change- waiting for a change to occur and then responding to it

Occurs when a change is unplanned, and takes place after the business has been affected by the pressures from its environment.

How change affects businesses

• To be constructive, changes must occur at a pace that allows businesses to absorb and integrate them into their operations. All changes should also be evaluated thoroughly to assess their overall impact. Poorly managed changes normally result in employee resistance, tension, anxiety, lost productivity and ultimately, unmet objectives.

• Change entails risk and requires sound leadership skills and responsive management structures. The long-term survival of any business depends on the ability of its managers to scan the environment, predict future trends and exploit change. While change may be the most daunting challenge confronting management, the rewards are great for those who are prepared to accept the challenge.