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Management in a large-scale organisation is faced with the challenge of managing change effectively - VCE - SSCE Business Management - Question 5 - 2014 - Paper 1
Question 5
Management in a large-scale organisation is faced with the challenge of managing change effectively. Describe two possible effects that change may have on the inter... show full transcript
Worked Solution & Example Answer:Management in a large-scale organisation is faced with the challenge of managing change effectively - VCE - SSCE Business Management - Question 5 - 2014 - Paper 1
Step 1
Describe two possible effects that change may have on the internal environment
Answer
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Employee Morale and Productivity: Change initiatives often lead to uncertainty among employees. A significant change, such as a shift to a new operational process, can cause anxiety and affect morale. High levels of uncertainty can lead to decreased productivity as employees may feel overwhelmed by new expectations and fear of job loss.
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Organizational Culture: An significant change such as a merger can significantly alter an organization's culture. Merging two distinct cultures can create confusion and resistance among employees. Cultures may clash, potentially leading to friction and challenges in team collaboration.
In relation to a significant change issue studied this year, the merger of Company A and Company B was a prime example. The impact on employee morale was notable as many employees struggled to adapt to a new corporate culture, which led to initial productivity declines.