Summary Change

Change

Change is an on-going process.

Change can be anticipated or unanticipated. It can be within the control of the business or outside
the business’s control.

Internal change causes:

 Changes in management.
 Changes in business ownership.
 Changes in business size.
 Introduction of new technology.

External change causes:

 Introduction of new technology.
 Changes in labour market.
 Changes in economic conditions.
 Changes in competition.
 Changes in consumer taste.
 Changes in legislation.

Planned change is created internally and is structed and timetabled. Clear objectives for the change
are established, timelines created and resources are applied.

Unplanned change occurs in response to a shock to the business and is often unstructured and
under resourced. A shock could be internal or external.

Effects of change:

 Shorter product life cycles – changing fashion and trends, investing in R&D is costly.
 Diminished brand loyalty – competitors, technology, price.
 New products need to be developed – changing fashion – increased costs.
 Production methods needs changing – new technology.
 Workforce needs training – new technology.
 Flexible workforce may be needed – may cause pressure on staff – changing fashion and
trends.
 Need to comply with new legislation – increase costs for business.
 Bank loans – new technology, may need to be purchased.



Change management:

 Employee commitment – re-assurance, inform them.
 Increased R&D expenditure to adapt to new changes.
 Increased HRM expenditure – training to adapt to new changes.
 Capital investment.

No change could mean:

 Staff get bored.
 No new products are made.