Small Business-Management of Change

The management of change is a key skill and fundamental to successful growth of the company. The management of change is important for two reasons:1. Flexibility and the ability to respond quickly to changing conditions are the key areas of advantage for the smaller company.2. Today’s business world is rapidly changing and uncertain. It is against this background that the company must grow.Changes can be of two major types:A. Internal changes: Internal changes may be company ideas, new ideas and methods, Procedures, skills and physical environment.B. External changes: External changes include Political changes such as government legislation, economic changes such as inflation, interest rates, new technology and market.Managing changeThe management must create the environment for change in order to introduce the change within the organization. Two important skills which are involved in change management are;a. Management style: An open managerial style, where the employees believe they are involved in and kept informed of the company’s activities, allows the development of a culture in which change is readily accepted.b. Setting clear objectives:This allows the employees to understand the direction of the company and can help management to explain the need for change in terms of achieving these objectives.Identifying areas of changeAreas for change will be identified if a systematic approach to company development is undertaken. This identification can also be done by the analysis of the business and its environment.Implementation of changeImplementation of change must involve the following:1. Comprehensive analysis of the nature of the change.2. Providing assistance which involves understanding the staff’s suspicion of change and providing support for them.3. Involving employees in the change process.4. Proper communication of information to their employees about what is happening is important.5. Accentuating the positive is a management tool which involves minimizing the negatives and maximizing the positives to make change desirable.Conclusion:These steps for the management of change reflect geed management practice and should be part of the everyday management of the company. The most crucial step in success is proper planning for the future. But total lack of planning or inadequate planning is the major problem of small business. This means that there is no systematic, analytical investigation of the business, its environment and options available to it in determining the way ahead. Thus its essential for a growing company to learn the tactics of managing change for proper growth.