he company continues to audit all operations and processes.

312 TOPIC 2
Business management 8. Predict the possible impact of each of the changes in
direction of Magnatech Industries. Use the following headings to prepare your
answer. New markets New products Diversification. 9. (a) Assess the degree of
control and influence Magnatech Industries has over factors in the external
environment. (b) Determine what are some of the circumstances that will affect the
degree of control. 10. Determine how the internal and external stakeholders are
likely to benefit by Magnatech Industries promoting socially just and ecologically
sustainable change. Summarise your ideas using a table like the following one.
Benefits for internal stakeholders Benefits for external stakeholders New and better
products New technology Employee training programs Improved working
environment Summary At the same time as managers are undertaking driving
change for the best of reasons, there will be restraining forces working against
the change, creating resistance. The main reasons for resistance to change
include: management (may make hasty decisions or be indecisive) fear of job
loss (fearful of changes that threaten job security or require new work routines)
disruption to routine (worried that they cannot adapt to the new procedures that
threaten established work routines) time (either poor timing, or lack of time) fear
of the unknown (feelings of lack of control and anxiety) inertia (prefer to stay with
the safe and predictable status quo) cost (financial cost of implementing major
changes can be substantial). Driving forces are those forces that initiate,
encourage and support the change. Restraining forces are those that work against
the change, creating resistance. Resistance to change is common among
managers and employees. Two strategies for overcoming resistance to change
include: creating a culture of change (encouraging teamwork) providing positive
leadership (sharing the vision). The main role of management consultants is to
help businesses improve their performance and assist with change management.
Revision 1 Outline why management and employees commonly resist change. 2
Explain how you would feel if your classroom was