Cima E2 Exam Question No 70

Question No 70:

Approaches to managing the change process

1. Lewin's three stage model
*Unfreeze (existing behavior)
*Changing behaviour
*Refreeze (new behavior)
2. Lewin's force field analysis
*Driving forces - Factors encouraging & facilitating the change.
*Restraining Forces- factors that hinder change.
3.Beer & Norris - Theory E and Theory O
*Theory E will tend to ignore feelings and attitudes. Based on measures where share holder value is main concern.( incentives,layoffs,downsizing,restructuring)
Theory O will often fail to take the tough decision that may be need. these are softer approaches to change, often involves in cultural adjustments.( obtaining feedback, reflecting and then making future changes)

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Cima E2 Exam Question No 69

Question No 69:

M is a business that sells custom made computer-based information systems. Each customer order is for a unique system, which will involve experts from many functional areas within M. Each customer expects a high level of individual attention. Some systems take only four to six months to design and produce and cost less than €50,000, whereas other systems cost several million Euros and can take up to three years to complete. Projects are continually being completed and started.
A Management Consultant's review of M's organisational effectiveness has concluded that the matrix structure is the most appropriate for M.

Required:
Identify the characteristics of the organisation that make it appropriate for M to have a matrix structure.


The characteristics of M that are appropriate to it adopting a matrix organisational structure are as follows:

• The business of M consists of a series of projects which are custom made, which are complex and require staff from a number of different functional areas;
• The projects undertaken by M have different start and end dates, so the organisation is continually reassigning resources from project to project as one ends and another begins;
• The projects undertaken by M are complex so the staff benefit from also being assigned to a technical function (such as finance or procurement) where they can share knowledge and experience with colleagues in their functional teams;
• The projects undertaken by M are often expensive, so having resources controlled by functional heads should lead to improved utilisation and reduced duplication across the different projects;
• The projects undertaken by M are customer facing and customers expect a high level of customer focus. Therefore, the customer will require a single point of contact (the project manager) to deal with customer requests and problems.