Doug is a Manager at ABC Ltd. The company is struggling financially and needs to make several changes to its operating procedures to maintain its position in the marketplace. The changes involve letting 10% of staff go and moving 70% of staff to remote online working instead of being office-based. The staff at ABC have, in general, not taken well to the changes, and motivation has decreased. In order to push through with the changes, Doug has stated that staff who volunteer to work online will receive an additional day of annual leave, and if staff refuse to move to the online system, this will have repercussions on their ability to be promoted within the company. Because of this, all remaining staff have now embraced the changes.
Which two types of influence were used in managing this change process?
The additional day of annual leave offered to employees who volunteer for online work is a form of reward, while the consequence of not being promoted for those who refuse to move online is an example of coercion. Coercion uses threats or negative consequences to drive compliance, while rewards offer incentives to encourage participation. This aligns with influencing strategies in change management. (Reference: p.203 of the study guide).
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