Causes and Effects of Change

Change in:

• Structure

• Size

• Strategy

• Objectives

Change will create opportunities and threats

Organic growth - diversification, new branches, product development

Inorganic growth - mergers and takeovers

Retrenchment - business is getting smaller

Internal retrenchment - delayering, closing unprofitable elements

External retrenchment (forced) - selling parts of company

If change is happening because of poor business performance employees are more likely to react and be motivated

Considerations:

• Type of culture

• Number of employees

• Geographical spread

• Levels of hierarchy

• Complexity structure