Responding to Internal and External Influences

Impact of Change Initiatives:

Organisational Structure:

The hierarchy of a firm can be altered as a result of change, impacting the roles within the firm. This can come about through:

• Outsourcing: using external providers in replacement of internal business functions.

• Flatter structures and work teams: reducing levels of bureaucracy in a firm, distributing responsibility and allowing for creativity / flexibility. 

Human Resources Management:

Organisational change can impact the actions of the HR department in terms of:

• Recruitment: new skills / talents needed in the firm

• Training: new processes need to be learnt

• Maintenance: new measurement of worker performance and rewards schemes

• Termination: closure of divisions / roles

Business Culture:

Business culture refers to the broader values, opinions, attitudes and rituals of a firm. Change within a firm can disrupt the culture of a firm by:

• Management introducing change without consideration for business culture;

• Creation of new mindsets / rituals / attitudes to respond to new situations;

Impact varies in response to type of change (transformational / incremental) and methods of implementation (how change is undertaken).

Operations Management:

Change in a firm impacts the processes through which a firm produces goods and services.

This requires operations to:

• Reorganise layout of operations

• Find new suppliers

• Use new technologies

• Use new systems to manage inventories

• Train staff to use new processes (HR)