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Change Management

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Page 501 Case Study Management of Change Changing the way a business is run is brought about by desires within the company to fulfil their objectives by the most effective and efficient way possible. Through internal forces for change, Optimal Business Solutions may have the motive to increase their profitability, increase their efficiency in their operations or improve their communication problems within the company. As the company is deciding to centralise and opt for a central office in London instead of their four regional offices, this can cause a dramatic change in the hierarchy of the business and result in an adverse effect on employee morale. However certain external factors may have forced the company to change location and culture as greater competition, legislation and taxes and technological changes all impact the business and without the correct implemented change, OBS will struggle financially and pay the price. ...read more.


Furthermore, the introduction of new legislation and taxes may cause the company to change. During a crucial time in the current elections, a different leader would see companies see changes in the economy that they must adapt to or face going under. To implement change, OBS can use one of two strategies in order to prepare the company, both managerially and its employees, for change. Using step change can help the company as all the change occurs rapidly so employees are aware of the change that has been made. However this change could come as a shock for the employees as suddenly their usual routine has been disrupted and they may become unsure of where the company is planning to go. The other option is that of incremental change. This gradual change is brought in a lot slowly and gives the employees more time to adapt to the changes throughout the company without the added shock of a substantial change to employee's roles. ...read more.


to change and by threatening employees with a job loss if they do not accept the change, a company can successful manage change. However these tactics are only guidelines and OBS must choose the correct methods that specifically suit their company's culture in order for change management to be a success. To conclude, there are many ways in which a company such as OBS can promote and implement change on their staff and by choosing the correct methods they are lessening the impact it has on all four functional areas of the business. Although change is inevitable, using certain methods means employees will understand why change is needed, become involved in the change and ultimately, accept the change. However the right strategies and tactics must be implemented for change to be successful. If it is not, absenteeism and labour turnover may increase drastically and therefore production levels decrease, and if new competitors are on the horizon, their market share and profit margins may be in danger. Ollie Ross ...read more.

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