Q: 10
CCC is a local authority based in Country M. A local authority (LA) is a public sector Organization
which has administrative responsibilities within a geographical area and is responsible for the
provision of a range of public services within its area including schools, leisure, policing and housing.
The majority of CCC's income comes from central Government funding. In the last four years, the
global economic downturn has resulted in the central Government of Country M having to drastically
cut its funding to all LAs. Six months ago, CCC appointed a new Chief Executive who, since his arrival,
has attempted to make a number of changes to the Organizational culture and structure of CCC. He
has stated that these changes are essential if CCC is to continue to operate effectively within the
current economic environment. The Government of Country M has recently announced that all LA's
must reduce their overall expenditure from current levels by 15% within the next year.
Which of the following types of change is CCC experiencing?
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