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Managers can take either a proactive or a reactive approach to change - VCE - SSCE Business Management - Question 2 - 2019 - Paper 1
Question 2
Managers can take either a proactive or a reactive approach to change. Describe how each of these approaches can be used to manage change.
Worked Solution & Example Answer:Managers can take either a proactive or a reactive approach to change - VCE - SSCE Business Management - Question 2 - 2019 - Paper 1
Step 1
Proactive Approach
Answer
A proactive approach to change involves anticipating potential changes and taking steps to address them before they occur. This method allows managers to adjust strategies, invest in training, and communicate changes ahead of time to employees, thereby minimizing disruption.
For instance, if a company forecasts a shift in market trends, managers can proactively conduct market research and adjust their product offerings to meet future demands. This not only prepares the organization for change but also positions it advantageously in the marketplace, as it can respond to changes faster than competitors.
Step 2
Reactive Approach
Answer
A reactive approach to change occurs when management responds to events after they have taken place. This means that changes are implemented in response to external pressures or unexpected situations, which can lead to a more chaotic environment.
For example, if a competitor launches a new product that captures significant market share, managers may need to react quickly by altering pricing or marketing strategies. While this approach can sometimes lead to quick fixes, it is often less effective in the long run as it can result in a loss of productivity and employee morale due to insufficient foresight and planning.