The
Management
of Change
Changing
Role of
Management
Change
 This
is the way in which Irish
managers have had to change the
way they deal with their employees.
 They have switched from controlling
managers to facilitator managers.
What
changes have occurred
in the business world over the
last 5/10 years???
Inventions that changed the
world
An ever changing world
Changes in the Business World

Technology - resulting in new products,
jobs and information; methods of selling,
production and communication;
 Competitors - updating their products;
introducing new ways of doing business;
merging with/taking over other business;
moving into other markets
 Rules and regulations are changing such as
national rules; EU laws and world trade
regulations
 Workforce education standards and
expectations of them are changing
 Consumers - trends; income; choice;
expectations
Management need to…
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Be pro – active; never reactive; must predict and
anticipate changes. Must be realistic.
Put people and procedures in place to handle
change. Use initiative.
Train and motivate the workforce by being
charismatic.
Resistance to change is caused by…


Fear of loss of earnings; too much change will cause
too much work; not able to cope
Belief that the change wont work or the organisation
wont benefit from the change.
How to prepare the workforce
for change…
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Use honest and open communication
Be an excellent leader
Ensure the workforce have a participation
in the decision making process
Negotiate due to the new demands the
change could put on the workforce
Provide training
**Strategies for managing
change**
1.
2.
3.
4.
5.
6.
Moving from being a controller to a
facilitator manager
Introduce job
rotation/enlargement/enrichment
Employee empowerment
Quality circles
Team work
Total quality management

What is the difference between a
controller manager and a facilitator
manager???
1. Moving from being a controller to a facilitator
manager
Controller: Creates rigid rules
that have to be obeyed; not
able to deal with change;
Theory X management style
Controller
Facilitator: Recognises
employees talents and
contributions; encourages
employees; Theory Y
management style
Facilitator
Didactic
Positive Atmosphere
Autocratic
Democratic
Unmotivated
Motivated
High Staff Turnover
Low Staff Turnover
Low Productivity
High Productivity
Low Morale
Good Morale
Low Profits
High Profits
Poor Self Esteem
High Self Esteem
High Absenteeism
Low Absenteeism
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Control managers expected employees to do
work without question, assumed he knew it all
and didn’t ask employees for their opinions.
The facilitator manager is like a coach who gives
them the skills to make decisions in the business
by themselves.
The control managers job was to catch
employees when they made a mistake and
show them not to do it again.
The facilitator’s job is to help them when they
make a mistakes such as offering advice, training
etc.
The control manager kept a close eye on
employees and threatened/punished those
who broke the rules.
The facilitator now encourages employees to do
better and rewards them for good work such as
offering greater responsibility.
2. Introduce job
rotation/enlargement/enrichment
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Rotation builds up an employees range of
skills increasing their ability to respond to
change and increases motivation
Enlargement gives employees extra
responsibility to make their job more
challenging and interesting
Enrichment gives employees more
freedom to make their own decisions
3. Employee empowerment
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Employees ‘take ownership’ of their jobs, so they
take a personal interest and better contribute to
the firm’s success.
Given goals, the resources needed to achieve
these goals and deadlines by which to achieve
them; also in order to improve the work they are
they doing, employees are given the authority to
make changes.
E.E. can only be achieved with a facilitator-style
management which provides training, support and
encouragement.
Benefits of E.E.

unlocks hidden talents; increases innovation and
intrapreneurship; enables the firm to respond to
change; increases job satisfaction, motivation, and
loyalty.
 This
means giving employees the power
to make decisions in the business on their
own without needing permission.
 An example of where this is needed is
someone who works in a fast food
restaurant. If a customer asks her for
sweet and sour sauce with the chips, he
will say he cannot as it is only given with
the rice. As the employee cannot make
these type of decisions by themselves it
sends off a very bad image.
4. Quality Circles

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Name given to a group of employees who
meet regularly to discuss ways to improve
product or service quality
People who deal with an issue on a day-today basis are those who’ll see how best to
improve it
Members may be from different levels and
sections of the business
Employee participation means involving
employees more in decision making and
running of the business, sometimes called
industrial democracy. It is achieved in the
following ways:
1. Works Councils
 Groups of employees elected by their fellow workers.
 The group have a say in the business plans and strategy.
 All businesses with more than 1,000 employees must
have one
2. Worker Directors
 Business allows employees to sit on Board of Directors on
election by fellow employees.
3. Share Options
 Employees can buy shares in business at reduced price.
Benefits of Employee Participation
 Employee motivation and esteem increase as they are
satisfied for feeling involved in the business.
 Great intrapreneurship as the employees may offer
useful solutions or suggestions.
 There is more communication between employees and
managers which means better industrial relations.
5. Team Work
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Group of people working co-operatively
towards shared objectives
Team can be a long term part of the
organisational structure or a special team set
up for a short term purpose
To set up a team; decide objectives and
deadlines; give resources; choose members a
allow the team to choose their own leader
who has a positive attitude, good
interpersonal skills, is able to co-ordinate and
is flexible
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Team members must be positive, flexible, be
prepared to put the team first and be responsible
Stages in a team’s development;
* forming * storming
* norming * performing
Benefits; involves everyone, improves motivation,
creates solutions, creates mutual support, increases
job satisfaction
Problems; personalities may clash, hard to get
agreement at times, negative attitudes may hinder
the teams achievements
6. Total Quality Management
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Seeks to involve all the employees in a continuous
process of improving the firm’s products and
services, in order to satisfy customers’ needs more
fully – designed to ensure 100% perfection and
100% satisfaction
Incorporates:
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Team Work
Quality Assurance – ISO certification and continuous
market research and development
Empowerment
TQM contains the following
principles
1. Focus on Customer
 Business makes the customer the most important person to
the business and gives them whatever they want.
 They do this through market research.
2. Employee Empowerment
 Employees are given real responsibility and authority to
make any purchases or changes that they feel are needed
to improve the quality of the product.
3. Teamwork
 Employees are put in trams to motivate them to make
perfect products so as not to let their teammates down.
 Also the business and its suppliers work together as a team
with the business promising to only deal with them in return
for perfect materials.
4. Continuous Improvement
 The business strives for zero defects in their products and
tries each time to make their product better than the last.
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Setting up TQM requires consultation,
training, planning, agreement and setting
up at all levels of the firm
To operate TQM a firm needs Quality
Control, shared responsibility and
constant reviewing
Aims to achieve
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High Quality
Zero Defects
Right first time production
Continuous Improvement
Benefits of Total Quality
Management
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Employees, managers and suppliers work together and the
quality of the products improve as a result which causes
greater sales.
As the products are made perfectly there are lower costs
as the business does not waste money on repairs or refunds.
Employees are motivated and committed to the business as
they feel valued when their recommendations are
accepted and empowerment satisfies their esteem.
An example is Guinness who have the vision to make their
product perfect.
With raw materials they only deal with quality suppliers of
barley and always check the quality before purchasing.
With the manufacture process they use trained testers and
modern technology with their samples getting tested every
day by quality assurance laboratory employees who check
the product at every stage along the way.
In the pubs they have spent over €1 million on developing
the new Guinness tap as well as training over 15,000 bar
staff.
How technology changes the role of managers
1. Marketing
 Managers can use internet to advertise which reduces their printing costs.
 The business can use its website to sell products which enables managers
to run international business without the hassle or expense.
2. Decision-making
 Managers can use ICT to make decisions as they have access to millions
of pages of information.
 An example is downloading prices from different suppliers’ websites
3. Production
 Managers can use CAD to design and test new products instead of
manually.
 Managers can use CAM to control the machines in the factor which
means machines can run 24 hours without making mistakes.
4. Redundancies
 New technology can replace employees which reduces a managers
span of control and frees up their time.
 An example is Ryanair who has replaced its check-in staff with online
booking.
5. Employee Retention and Motivation
 Managers can use technology to motivate employees.
 The internet enables teleworking which means that employees can work
from home.
Impact of Technology on
Employees
1. Changing Nature of Jobs
 New technology makes jobs easier for employees such as
robots taking the danger out of car manufacturing.
 However, some employees need to retrain for jobs e.g.
secretaries changing from typewriters to computers.
2. New Types of Jobs
 Creates new opportunities for employees e.g. computer
programming.
3. Redundancies
 Some technology has replaced a business’ need for
employees e.g. Ryanair check--‐in staff.
4. Teleworking
 It enables employees to work from home and reduces the
costs of hassle and communicating.
Impact of Technology on
Business Costs
1. Increased Costs
 Costs a lot of money to buy the new
hardware and software and maintain it.
 Employees need to be trained to operate the
new technology.
2. Reduced Costs
 New technology such as CAM allow perfect
quality products to be produced which
reduces money spent on refunds, repairs etc.
 Fewer workers are needed as the technology
can do the jobs instead.
Impact of Technology on
Business Opportunities
1. Design
 Can be used to design, test and manufacture new
products more quickly and cheaply e.g. CAM
2. Increased Sales
 Internet allows business to sell their products
anywhere and advertise which means it can
develop into an international business and make
more money.
3. Direct Marketing
 Business can use databases to store information
about customers and send marketing information to
them e.g. loyalty schemes such as Tesco Clubcard.
4. New Products
 New technology gives opportunity to develop new
products e.g. mobile phone ringtones are bigger
business than CD single sales.
Change

All businesses must change. An example of
this is Aer Lingus who had to change to
compete with low-cost Ryanair
Resistance to Change
 Fear of losing jobs-Employees might resist
introduction of new computers.
 Fear of losing power-Gardaí resisted the
introduction of the Garda Reserve.
 Fear of failure-Employees might fear they
cannot cope with changes.
 Laziness-Employees may not want hassle
involved in change.
Strategies of Managing
Change

A business has to change if it is to survive and so the manager must
overcome any resistance shown by the employees through the
following methods:
1. Lead by Example
 Manager must show employees that he is willing to put in extra
effort to cope with change.
 He must also show that the change is important to the business.
2. Communicate with Employees
 Manager must discuss the change with employees, the reasons it is
being brought in etc.
 He must also be open and honest with employees and negotiate
the change with them so as to reduce gossip and rumours.
3. Train Employees
 Employees should be trained in all skills needed to adapt to
change which will reduce their fear of the change.
4. Allow Employees to Participate
 Employees should be asked to give suggestions on how to improve
the change, implement it etc.
 If the employees have a say they are more likely to accept the
change.