Welcome to Accountancy Portal

The Six (6) Change Approaches of Kotter and Schlesinger is a model to prevent, decrease or minimize resistance to change in organizations.

According to Kotter and Schlesinger (1979), there are four reasons that certain people are resisting change:

• Parochial self-interest (some people are concerned with the implication of the change for themselves ad how it may effect their own interests, rather than considering the effects for the success of the business)

• Misunderstanding (communication problems; inadequate information)

• Low tolerance to change (certain people are very keen on security and stability in their work)

• Different assessments of the situation (some employees may disagree on the reasons for the change and on the advantages and disadvantages of the change process)

Kotter and Schlesinger set out the following six (6) change approaches to deal with this resistance to change:

1. Education and Communication - Where there is a lack of information or inaccurate information and analysis. One of the best ways to overcome resistance to change is to educate people about the change effort beforehand. Up-front communication and education helps employees see the logic in the change effort. this reduces unfounded and incorrect rumors concerning the effects of change in the organization.

2. Participation and Involvement - Where the initiators do not have all the information they need to design the change and where others have considerable power to resist. When employees are involved in the change effort they are more likely to buy into change rather than resist it. This approach is likely to lower resistance and those who merely acquiesce to change.

3. Facilitation and Support - Where people are resisting change due to adjustment problems. Managers can head-off potential resistance by being supportive of employees during difficult times. Managerial support helps employees deal with fear and anxiety during a transition period. The basis of resistance to change is likely to be the perception that there some form of detrimental effect occasioned by the change in the organization. This approach is concerned with provision of special training, counseling, time off work.

4. Negotiation and Agreement - Where someone or some group may lose out in a change and where that individual or group has considerable power to resist. Managers can combat resistance by offering incentives to employees not to resist change. This can be done by allowing change resistors to veto elements of change that are threatening, or change resistors can be offered incentives to leave the company through early buyouts or retirements in order to avoid having to experience the change effort. This approach will be appropriate where those resisting change are in a position of power.

5. Manipulation and Co-option - Where other tactics will not work or are too expensive. Kotter and Schlesinger suggest that an effective manipulation technique is to co-opt with resisters. Co-option involves the patronizing gesture in bringing a person into a change management planning group for the sake of appearances rather than their substantive contribution. This often involves selecting leaders of the resisters to participate in the change effort. These leaders can be given a symbolic role in decision making without threatening the change effort. Still, if these leaders feel they are being tricked they are likely to push resistance even further than if they were never included in the change effort leadership.

6. Explicit and Implicit Coercion - Where speed is essential and to be used only as last resort. Managers can explicitly or implicitly force employees into accepting change by making clear that resisting to change can lead to losing jobs, firing, transferring or not promoting employees.

Do you like to see Management Books. Wander around in the store

Do you like to be updated in Accountancy ?

Subscribe to Management Accountant by Email

Or

Subscribe in a reader

You may also like to read

1. Strategic Drift
2. Strategic Development
3. Books of Mintzberg on Amazon
4. Books of Philip Kotler
5. Porter’s Diamond
   

It goes without saying that the international regime has certainly put the cost of audit up and in most cases, the extent of these costs are sometimes irrecoverable – meaning that audit is becoming more of a hindrance to professional firms than a benefit. Invariably, clients will express their dissatisfaction at their fees going up by anymore than the annual rate of inflation and even that can sometimes ‘ruffle feathers’.

So why did the standards change so dramatically, and how can firms at the smaller end of the scale manage the increased costs inherent with the audit process?

Click here Accounting Web - Steve Collings

Do you like to be updated in Accountancy ?

Subscribe to Management Accountant by Email

Or

Subscribe in a reader

You may also like to read

1. Good Bye GAAP
2. Ersnt & Young Applauds the success of IASB
3. Steps to Common Global Standards

Subscribe to Management Accountant by Email

Or

Subscribe in a reader

You may also like to read

1. Good Bye GAAP
2. Ersnt & Young Applauds the success of IASB
3. Steps to Common Global Standards

Spam is the name given to unwanted emails sent to you - electronic junk mail. Some people have lost money through spam that contained bogus offers and fraudulent promotions.

Scammers are very cunning - they know how to make their claims seem legitimate. Some spam messages ask for your business, others invite you to visit a website with a detailed story. Many scam emails will come from America or other countries, and will talk about currencies like US dollars.

These tips can help you avoid spam scams:

• Protect your personal information. Share credit card or other personal information only when you’re buying from a company you know and trust.
• Know who you’re dealing with. Don’t do business with any company that won’t provide its name, street address, and telephone number.
• Take your time. Resist any urge to ‘act now’ despite the offer and the terms. Once you turn over your money, you may never get it back.
• Read the small print. Get all promises in writing and review them carefully before you make a payment or sign a contract.
• Never pay for a ‘free’ gift. Disregard any offer that asks you to pay for a gift or prize. If it’s free or a gift, you shouldn’t have to pay for it - free means free.

Many internet service providers and manufacturers offer filtering software to limit the spam in their users’ email inboxes. In addition, a few ‘filter tips’ can help you save time and money by avoiding common email scams.

Here’s how to spot 10 common spam scams:

1. The ‘Nigerian’ email scam

The bait: scammers claim to be officials, business people or family members of former government officials in Nigeria or another country whose money is somehow tied up for a limited time. They offer to transfer lots of money into your bank account if you will pay a fee or ‘taxes’ to help them access their money. If you respond to the initial offer, you may receive documents that look official. Then they ask you to send money to cover costs for transaction, transfers and legal fees, as well as your bank account numbers or other information. They may even encourage you to travel to Nigeria or a border country to complete the transaction. Some fraudsters have even produced trunks of dyed or stamped money to verify their claims.

The catch: the emails are from crooks trying to steal your money or steal your identity. Inevitably, emergencies come up which will require more of your money and delay the ‘transfer’ of funds to your account. In the end, there aren’t any profits for you, and the scam artist vanishes with your money.

Your safety net: if you receive an email from someone claiming to need your help getting money out of a foreign country, don’t respond.

Read more about foreign money offer scams.

2. Phishing

The bait: email or pop-up messages that claim to be from a business or organisation you may deal with, for example, an internet service provider, bank or online payment service. The message may ask you to ‘update’, ‘validate’, or ‘confirm’ your account information.

The catch: phishing is a scam where internet fraudsters send spam or pop-up messages to get personal and financial information from you. The messages direct you to a website that looks just like a legitimate organisation’s site. But it’s a bogus site that exists simply to trick you into revealing your personal information so the operators can use your identity.

Your safety net: never respond to email or pop-up messages that ask for your personal or financial information, and don’t click on links in the message. Don’t cut and paste a link from the message into your web browser - phishers can make links look like they go to a genuine site, but then actually take you to a look-alike site. If you are concerned about your account, contact the organisation using a phone number you know to be genuine, or open a new internet browser session and type in the company’s correct web address yourself. Using anti-virus software and a firewall, and keeping them up to date, can also help.

Read more about phishing scams.

3. Work-at-home scams

The bait: advertisements that promise a large income for minimal work - such as envelope-stuffing, craft assembly work, or other jobs. The ads make similar claims - fast cash, minimal work, no risk with the advantage of working from home when it’s convenient for you.

The catch: the ads don’t say you might have to work many hours without pay, or pay hidden costs to place newspaper ads, make photocopies, or buy supplies, software, or equipment to do the job. Once you put in your own time and money, your promoters may refuse to pay you, claiming that your work isn’t up to their ‘quality standards’. Or you may find that there is no work on offer, only comission for getting other people to sign up.

Your safety net: legitimate work-at-home business promoters should tell you in writing exactly what is involved in the programme. Before you commit any money, find out

• what tasks you will have to perform
• whether you will be paid a salary or work on commission
• who will pay you
• when you will get your first payment
• the total cost of the program (including supplies, equipment and membership fees)
• what you will get for your money.

Can you verify information from current workers? Be aware of ’shills’, people who are paid to lie and give you every reason to pay for work. Get professional advice from a lawyer, an accountant, a financial adviser, or another expert if you need it, and check out the company with your local Trading Standards Service.

Read more about work at home scams.

4. Weight Loss Claims

The bait: emails promising a revolutionary pill, patch, cream, or other product that will result in weight loss without diet or exercise. Some products claim to block the absorption of fat, carbs, or calories, others guarantee permanent weight loss and some suggest you’ll lose lots of weight at lightning speed.

The catch: these are gimmicks, there’s nothing available through email you can wear or apply to your skin that can cause permanent or even significant weight loss.

Your safety net: experts agree that the best way to lose weight is to eat fewer calories and increase your physical activity so you burn more energy. There are no products that can instantly remove fat.

Read more about health cure scams.

5. Foreign lotteries

The bait: emails boasting enticing odds in foreign lotteries. You may even get a message claiming you’ve already won! You just have to pay to get your prize or collect your winnings.

The catch: most promotions for foreign lotteries are phony. The scammers will keep any money you send for ‘taxes’ or fees. In addition, lottery scammers use victims’ bank account numbers to make unauthorised withdrawals or their credit card numbers to run up additional charges.

Your safety net: skip these offers. Don’t send money now on the promise of a pay-off later.

Read more about lottery scams.

Source : More Angela

6. Cure-all products

The bait: emails claiming that a product is a ‘miracle cure’, a ’scientific breakthrough’, an ‘ancient remedy’ - or a quick and effective cure for a wide variety of ailments or diseases. They generally announce limited availability, and want payment in advance, and offer a no-risk ‘money-back guarantee’. Case histories or testimonials by consumers or doctors claiming amazing results are not uncommon.

The catch: there is no product or dietary supplement available via email that can deliver on claims to shrink tumors, cure insomnia, cure impotency, treat Alzheimer’s disease, and prevent severe memory loss.

Your safety net: be sceptical about health related claims. Consult a health care professional before buying any ‘cure-all’ that claims to treat a wide range of ailments or offers quick cures. Generally speaking, cure all is cure none.

Read more about health cure scams.

7. Cheque overpayment scams

The bait: a response to your ad or online auction posting, offering to pay with a cheque. At the last minute, the so-called buyer (or the buyer’s ‘agent’) comes up with a reason for writing the cheque for more than the purchase price, and asks you to transfer back the difference after you deposit the cheque.

The catch: if you deposit the cheque, you lose. Typically, the cheques are counterfeit, but they’re good enough to fool bank staff - when they bounce, you are liable for the entire amount.

Your Safety Net: don’t accept a cheque for more than your selling price, no matter how tempting the plea or convincing the story. Ask the buyer to write the cheque for the purchase price. If the buyer sends the incorrect amount, return the cheque. Don’t send the goods.

8. Pay-in-advance credit offers

The bait: news that you’ve been ‘pre-qualified’ to get a low-interest loan or credit card, or repair your bad credit even though banks have turned you down. But to take advantage of the offer, you have to pay a processing fee of several hundred pounds.

The catch: a legitimate pre-qualified offer means you’ve been selected to apply. You still have to complete an application and you can still be turned down. If you paid a fee in advance for the promise of a loan or credit card, you’ve been scammed. There may be a list of lenders, but there’s no loan, and the person you’ve paid has taken your money and run.

Your safety net: don’t pay for a promise. Legitimate lenders never ‘guarantee’ a card or loan before you apply. They may require that you pay application, appraisal, or credit report fees, but these fees are not usually asked for before the lender is identified and the application is completed. In addition, the fees generally are paid to the lender, not to the broker or person who arranged the ‘guaranteed’ loan.

9. Debt relief

The bait: emails promise a way you can consolidate your bills into one monthly payment without borrowing and stop credit harassment, repossessions or wipe out your debts.

The catch: these offers can involve bankruptcy proceedings, but rarely say so. While bankruptcy is one way to deal with serious financial problems, it’s generally considered a last resort. This is because it has a long-term negative impact on your creditworthiness. A bankruptcy stays on your credit report, and can make it harder to get credit, a job, insurance, or even a place to live. To top it off, you are likely to be responsible for legal fees for bankruptcy proceedings.

Your safety net: read between the lines when looking at these emails. Before resorting to bankruptcy, talk with your creditors about arranging a modified payment plan, contact a credit counselling service to help you develop a debt repayment plan, or carefully consider a second mortgage or home equity line of credit. One caution - while a home loan may allow you to consolidate your debt, it also requires your home as guarantee. If you can’t make the payments, you could lose your home.

10. Investment schemes

The bait: emails touting ‘investments’ that promise high rates of return with little or no risk. One version seeks investors to help form an offshore bank. Others are vague about the nature of the investment, but promise high rates of return. Promoters hype their high-level financial connections or the fact that they know inside information, or sometimes that they’ll guarantee the investment, or that they’ll buy it back. They sometimes serve up phony statistics, misrepresent the significance of a current event, or stress the unique quality of their offering.

The catch: many unsolicited schemes are a good investment for the promoters, but not for you. Promoters of fraudulent investments operate a particular scam for a short time, close down before they can be detected, and quickly spend the money they take in. Often, they reopen under another name, selling another investment scam.

Your safety net: think carefully about investments - the higher the promised return, the higher the risk. Don’t let a promoter pressure you into committing to an investment before you are certain it’s legitimate. Strongly consider asking an accountant to take a look at any investment offer.

Read more about share investment scams.

Source: Office of Fair Trading, UK

Subscribe to Management Accountant by Email

Or

Subscribe in a reader

You may also like to read

1. Mail from HDFC to protect the customer
2. Identity Theft

Online SAP Store, US

Tags: News Makers
Posted in News Makers | No Comments »