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Managing change is a vital part of ensuring the success of a large-scale organisation - VCE - SSCE Business Management - Question 7 - 2010 - Paper 1
Question 7
Managing change is a vital part of ensuring the success of a large-scale organisation. Analyse possible driving and restraining forces which might cause change in a ... show full transcript
Worked Solution & Example Answer:Managing change is a vital part of ensuring the success of a large-scale organisation - VCE - SSCE Business Management - Question 7 - 2010 - Paper 1
Step 1
Driving and Restraining Forces
Answer
Driving forces are the factors that push an organization towards change. These can include:
- Management Commitment: Leadership that values change fosters a culture that encourages adaptation and responsiveness.
- Technology Advances: New technological advancements can create opportunities for efficiency and innovation.
- Market Competition: Increased competition pressures organizations to evolve and improve services or products.
- Social Trends: Changes in social attitudes can affect consumer preferences, prompting changes in offerings.
- Legislation: New laws and regulations can necessitate adjustments in operations to comply with legal requirements.
Restraining forces are obstacles that hinder change, including:
- Organizational Inertia: A resistance to change stemming from established practices and procedures.
- Employee Resistance: Concern among employees regarding job security can impede necessary transitions.
- Cost of Change: Financial implications can deter organizations from pursuing required modifications.
- Lack of Resources: Insufficient manpower or technology can restrict the ability to implement change effectively.
- Managerial Attitudes: A negative outlook from management can lead to a reluctance in pursuing change initiatives.
Step 2
Illustration with Example
Answer
A relevant example to illustrate these concepts is Cadbury's response to market changes and ethical considerations. In 2009, Cadbury faced demands for greater transparency regarding its cocoa sourcing practices after it was found that they did not fully adhere to Fair Trade standards. This situation exemplifies a driving force, as consumer demand for ethical sourcing pushed Cadbury to adapt its practices.
On the other hand, the company experienced restraining forces, including organizational inertia, as employees were comfortable with established practices and hesitant to embrace new sourcing strategies. Additionally, the cost implications of transitioning to Fair Trade certified sources posed a challenge.
In conclusion, managing the balance of driving and restraining forces is crucial for large-scale organizations like Cadbury, as failure to adapt can result in losing consumer trust and market position.