What is a potential outcome of ineffective change management?

Enhance your business proficiency with the Peregrine Global Services Business Exam. Prepare using flashcards and multiple choice questions, complete with explanations and hints!

Ineffective change management can lead to higher turnover rates as employees may feel uncertain, unsupported, or overwhelmed during transitions. When changes within an organization are not managed properly, it can create a lack of clarity regarding roles, responsibilities, and expectations. Employees might perceive the changes as negative or chaotic, leading to frustration and disengagement. This dissatisfaction can result in a desire to seek employment elsewhere, ultimately increasing turnover rates.

Organizations that do not effectively communicate and involve their employees during periods of change can fail to build trust or foster a positive workplace culture. High turnover can have detrimental effects, such as increased recruitment and training costs, loss of institutional knowledge, and decreased morale among remaining staff, further exacerbating the challenges of the original transformation.

In contrast, outcomes such as increased revenue, enhanced employee satisfaction, or improved company reputation are generally associated with effective change management efforts where employees are engaged, informed, and supported throughout the process.

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