Understanding and Leading Change: Part 2 - Impact of Change on Organisational Strategy and Behaviour

This report discusses the impact of change on organisational strategy and behaviour, with a focus on Unilever. It covers the comparison of ways in which change impacts on an organisation’s strategy and operations, evaluation of the influences that drivers of change have on organisational behaviour, and the application of a range of leadership approaches to a change initiative. The report also provides recommendations for managers of Unilever company to perform better and achieve organisational goals.

Understanding and
Leading change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
LO1 Compare ways in which change impacts on an organisation’s strategy and operations3
TASK 2............................................................................................................................................4
LO2 Evaluate the influences that drivers of change have on organisational behaviour........4
Internal Driving Forces......................................................................................................4
TASK 3............................................................................................................................................9
LO3 Determine how barriers to change influence leadership decision-making....................9
TASK 4..........................................................................................................................................11
LO4 Apply a range of leadership approaches to a change initiative....................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Each and every business enterprises required to focuses on changes in their organisational,
thus timely changes are too essential for their effective system. In this, leaders of business
organization, play an important role in business, which focusing on directing their followers
effectively and efficiently by using appropriate strategies and approaches in organization.
Management refers to a single group or individual person who is facing issues and challenges so
that goals and objectives can be accomplished (Galli, 2018). Unilever is a public limited
company founded in 1929. The report examines, change process in organisation, drivers of
change such as, PEST and SWOT analysis is discussed. Evaluation of drivers and impact of
change on organisation. Evaluation of how change has impact on leadership, individual and team
behaviour. Evaluation of impact of change was minimised and application of appropriate models
to plan for and implications of change for effective planning. In operations and management,
leaders play different roles of leadership which play a vital role for effective functioning and
leads to make a profitable decision for business organization (Bradac, Xu, and Aharonovich,
2021). The leaders have ability for making proper and profitable decision for better environment
of business and handling changes of current scenario of situation of business, leaders. Along with
this, it includes various changing behaviour of candidates as well as leadership styles with their
obstruction & barriers, which is affecting their leadership on making decision effectively. In last,
this report considering various approaches of leadership in a proper way.
TASK 1
LO1 Compare ways in which change impacts on an organisation’s strategy and operations
Unilever is a public limited company which was founded in the year 1929. It’s headquarter
is situated in London, England. It is providing product all over the world and satisfying need of
people. This helps in generating more profit and creating good image in market. Unilever is one
of the fastest growing company and making new products so that need of customers can be
satisfied and it helps in earning profit. Unilever was founded by Lever brothers. Company is
providing different products to customers like, food, ice cream, minerals and supplements,

coffee, beauty care products, personal care products. Managers are managing all the work and
handling all issues so that goals and objectives can be accomplished (Dzwigol and et.al., 2019).
Change management process is the process of requesting, determining attainability,
planning, implementing and evaluating of changes in system of organisation. Managers are
responsible for solving problems and making plans which is beneficial for company and helps in
achieving goals and objectives. Change management process includes, five steps i.e., prepare
organisation for change, make a vision and plan for change, implement the changes, company
culture and practices are changed and last is to review & analyse results. Managers of Unilever
company are, making plans and strategies to make changes so that targets can be accomplished.
They are creating vision and communicating change within the organisation. Managers are
making change in the process after analysing market situation so that better services can be
provided to customers and it helps in achieving targets (Rosenbaum, More and Steane, 2018). It
is essential to make changes in process like, leadership style, structure for communication and
working style of members so that they can perform better than others and more profit can be
earned.
TASK 2
LO2 Evaluate the influences that drivers of change have on organisational behaviour.
Internal and external drivers of change
Internal and external factors are affecting performance of organisation and managers are
responsible for making plans to control these factors so that goals and objectives can be
accomplished. Internal factors are present within the organisation and it can be control by
managers. Internal factors include, SWOT analysis i.e., to identify strength, weakness,
opportunity and threats. It is essential to make plans and strategies after analysing market
situation so that targets can be accomplished and it helps in gaining competitive advantage.
Managers of Unilever company are determining positive and negative points of firm and growth
opportunities before making any plan (GURL, 2017). This is beneficial for growth of firm as
when strength and weakness are determined then it becomes easy for managers to make plans.
Internal Driving Forces
 Organisational Culture - Organisational behaviour might be termed as an arranged
framework of the position and aspects of both teams as individual in the management.

Business who have an effective criteria to accomplish the spirit will always hold the
variations and focuses on consumers and as well as staff faculty who are followed to be
looking forward.
External Driving Forces
 Economic and Political Influence - There is a close dealing among the managerial
culture and economic & political situations.
SWOT Analysis
It means to identify strengths, weakness, opportunity and threats so that plans and
strategies can be made accordingly. This helps in gaining competitive advantage and more profit
can be generated. Strength- it means positive points of a company which helps in achieving targets.
Strength of Unilever company is it operates in nearly 190 countries around the world and
satisfy need of customers. Research and development initiatives are managed to bring
new and innovative product in the market. Unilever has a distinct competitive advantage
in market as they are providing good quality products at reasonable prices. Weakness – it means to identify negative or weak points of company so that
improvement can be made and it helps in achieving goals and objectives. Weakness of
Unilever company is it operates in the market where there are strong competitors and it is
difficult to attract customers. Other weakness of company is that its products are easily
replaces as many close substitutes goods are available in market. So, managers should
focus on improving weak points and make better plans so that targets can be achieved
(Teoli, Sanvictores and An, 2019). Opportunity- it means to identify growth opportunity in market like, in this globalised
world, choice of customer is changing and it is important to identify choice of people and
make plans accordingly so that profit can be earned. Unilever has a good track record of
social and environment responsibility which helps in creating good image in market and
attracting people. Managers of Unilever company should make plans to expand their
business in other countries and provide innovative products so that customers can be
attracted and it helps in achieving targets.
 Threat- it means competitors that can affect performance of company as they are
providing good products. Nowadays, competition is increasing and this is a threat for

Unilever company because there are applying new techniques or satisfying need of
people. Another threat for company is entry of Asian multinationals into global arena. So,
competition is one of the biggest threat for organisation because it affects sales of
company.
PEST Analysis
PEST analysis is done to identify external factors. It includes, political, economic, social
and technological factor. This helps in making better plans and does not affect performance of
organisation. It is essential to determine external factors so that business can run smoothly and
profit can be generated. Political factor- it includes factors such as, tax policy, tariff barriers, trade restrictions
etc. These are decided by government and it can be changed anytime. This factor affect
Unilever company as rules and regulations are different in different countries. While
doing trade, company faces problem as there were many restrictions and it is difficult to
do trading of goods and services (Perera, 2017). Economic factor- it includes, interest rate, economic rate etc. which affect performance
of company. Consumers want good quality products at less prices and demand for
products at cheaper rate. Consumers directly affect products which is provided by
Unilever company and this is affecting profit of company. Social factor- people are from different background and their choice is different so,
managers should make products after analysing market situation. Products of Unilever
company focus on personal care and well- being. This attracts people but sometimes,
people did not like the way marketing is done. Technological factor- technology is changing rapidly and it is important to apply new
techniques so that people can be attracted. Nowadays, marketing is done with the help of
social networking sites so that customers get information and it helps in achieving goals
and objectives (Christodoulou and Cullinane, 2019). Managers face problem in applying
new techniques as it requires investment.
Evaluation of drivers and impact on organisational strategy
There are two types of factors that can affect performance of an organisation i.e., internal
and external factor. Internal factors are present within the organisation, managers have to
identify elements and find solutions so that they can perform better than others. Managers are

responsible for handling and managing all the activities so that work can be completed on time
and better products can be provided to customers. For analysing internal factors, swot analysis
should be done because it helps in determining strengths, weakness, opportunity and threats. It is
essential to focus on satisfying need of people (Hassan, Nordin and Azamin, 2021). When
positive and negative elements are identified then it becomes easy for managers to make plans
and strategies which is beneficial for growth of firm. Swot analysis helps in making better plans
so that firm can perform efficiently and gain competitive advantage in market.
External factors are present outside the organisation and affects performance of company.
Managers are not able to control external elements but they can make plans so that firm does not
have to suffer loss. It is essential to identify external elements like, political, economic, social
and technological. These factor affects performance of firm as it is not controllable. Managers
should determine these factors and make plans accordingly so that targets can be accomplished.
Technology is changing rapidly and it is essential to apply new techniques so that goals and
objectives can be accomplished (Morais and Franco, 2019).
Evaluation of change on leadership, individual and team behaviour
Change can affect leadership, individual and team behaviour. In an organisation managers
are making plans and strategies so that goals and objectives can be accomplished. Impact of
change on leadership is that it affects company’s goals and objectives directly in positive and
negative way. It is essential to implement change for growth and development of organisation.
When change is made by managers in policies and procedures, rules and regulations, leadership
style etc. then it affects performance of company because employees are not able to complete
work.
When changes are made then it is difficult for leaders to manage work and focus on
achieving targets. Individual and team behaviour is also affected by change as they are not able
to work properly and they need time to understand how to do work. When new technology is
applied then it becomes difficult for employees to work (Jayatilleke and Lai, 2018). Change
affect behaviour of individual person and team also. When work is given in teams and leadership
style is changed then members need time to adopt new style and this has negative impact on
performance of employees. Changes are made by managers in communication structure,
leadership style or apply new technology so that goals and objectives can be accomplished. It is
essential to make changes to gain competitive advantage and to earn more profit. In Unilever

company, autocratic leadership style is applied in which leaders are giving instruction to
members and they have to work accordingly. managers are changing this and apply democratic
style in which members are having right to share their views and give suggestions or new ideas
so that goals and objectives can be accomplished.
Impact of change can be minimised
Impact of change on organisation is loss of benefits, goals and objectives of company is
not achieved, reduce employee’s efficiency, overall productivity of company can be decreased.
To minimise impact of change, managers of Unilever company should apply proper strategies
and make plans after analysing market situation so that goals and objectives can be
accomplished. Leadership style should be used properly and make changes after determining all
the factors. This helps in achieving targets and profit can be earned. Proper structure should be
applied in which roles and responsibilities of every member is defined clearly. This helps in
reducing confusion and misunderstanding (Matthews and et.al., 2018). Managers should set
timelines for every employee and distribute work as per their specialisation so that they can work
efficiently and complete work within the given time period.
When timelines are set then it reduces chances of delay and work can be completed on
time. managers should identify market situation and make plans accordingly so that goals can be
achieved. Managers should discuss with employees before making change because they can
suggest better ideas which is beneficial for growth of company. Don’t keep people in dark
because members should know about changes that are made by managers so that work can be
completed accordingly. to minimise impact of change, managers of Unilever company should
apply some strategies and make plans properly so that work can be completed within the given
time period.
Recommendations
Some recommendation which can be applied by managers of Unilever company so that
they can perform better than others and goals of organisation can be accomplished. Managers
can use Porter’s five forces for analysing external factors as it includes, competitive rivalry,
buying power of consumer and supplier, threat to substitute goods and new entrants. Democratic
leadership style should be applied because in this members are having right to share their views
and better plans can be made for growth of organisation. Before making change, market survey

should be done so that good plans and strategies can be made and it helps in achieving goals and
objectives of firm.
TASK 3
LO3 Determine how barriers to change influence leadership decision-making.
Different barriers related with change and their influence on the leadership decision-making
Force-field analysis is used to formulate or develop an effective framework which helps
for analyse the variances between the restraining as well as driving forces. From the perspective
of respective organisation this is understand that manager assess and introduce all those forces
which are important to make effective and appropriate decisions for business. Along with this the
main objective to induce the five-force field analysis is to decide whether, management continue
with company strategy or they have to introduce changes within business that give more strength
to the individual goals (Broughton, 2021). Some of the changes which is related with adoption of
five-force field analysis are mention as follow:
 Change in the substances- The first objective is to define and understand all changes
which is related with changing substances. This also helps for analyse the company
situations through which existing perspectives of environment is match and understand
with analyse of all tools and techniques that helps management for achieve the expected
results. Also, manager understand and analyse all environmental factors that helps to
implement and adopt changes in minimum time-period.
 Identify of the changing forces- This ascertain about the driving forces and it helps to
restraining all those situations which work in favour as well as against the changes. It
results that Unilever's workforce identify that both forces perform an important role
which aids to implement changes in an easy manner and also to adopt right forces for
organisation.
 Identify of force against alterations- With eliminate of all forces and by select the
appropriate one this is easy for management to select right and appropriate results
because selected approach aids to complete all task in an effective manner. Unilever's
authorities make effective changes through select right alterations.
 Score Assigning- According to this step, manager assign scores related with each force
which is based on their impact (Dagiliene, Varaniute, and Banioniene, 2021). At the

initial level management define that by giving rating to each factor this is easy for
management to decide the appropriate plans which generate effective plans for business.
 Evaluation and Execution- The focus of this step is to induce all those forces as well as
plans which aids management to generate desired outputs from business. Moreover, by
evaluation of all forces this is easy to induce all those sections that are more effective and
also better for the workforce for make right and appropriate decisions for business.
 Lack of Effective Communication: In today's competitive market, ample numbers of
companies are available, which are not focusing on their effective communication
strategies. The management of Unilever's management do not using effective strategies
for communication in their business. By ineffective and improper communication,
management & leaders of Unilever's management are unable to communicate effectively
and properly with their employees (Du, and et.al., 2021). For coming up with this
barriers, top level management of Unilever's management company should adopt and
focuses on developing and implement effective and appropriate approaches and
techniques for adopting profitable changes within business organization.
 Organization Complexity: The barrier in organization complexity occur due to
improper management in business. In other words, barriers arise when top level
management and leaders develops typical and complex process for their business. This
leads to leadership decision-making and it is hard and complex to manage process which
helps in developing and implementation changes for planning for business. This become
barrier because it become tangled process and system, which creates complexity and
difficulties for understanding modified changes effectively and efficiently.
 Lack of Employee Involvement: In change management of business organization that is
Jack's management, the employees are most important barriers for adopting change. In
order to this, employees have lack of information about change and lack of involvement
decision-making of effective functioning & operations of business organization
(Hallencreutz, and Parmler, 2021). From all employees some of resist to change,
accordant to them changes can not adopted easily and it leads to barrier for leadership
decision making for adopting this change in business. In addition to this, staff of
Unilever's management inbuilt fear in them, of replacing position with other candidate
and they can be terminated from company. Although, changes affects overall function,

operations as well as leadership decisions regarding effective working in business
organization. Along with this, it also affects productivity and performance of employee
and employers as well as company.
Barrier related with changes
Low and poor communication skills- Communication gap generate major barriers and
due to this it is complex for business to perform their work. Example- Indirect communication
between the management and workforce results that this is difficult for the Unilever's to achieve
their goals and objectives. On the other side, when the engaged workforce identify the ineffective
communication with the team-mates or colleagues than this is complex for them to perform the
work with the mutual approach. This impacts on the decision-making of Unilever's because due
to no communication this is complex for leaders to influence workforce for follow the selected
decisions.
Negative attitude of workforce- When changes are induced within the organisation than
workforce or engaged employees learn new ways and methods to complete work. But sometimes
changes creates difficulties for the individuals (Henry, 2021). Therefore, this is important for the
Unilever's to participate among all those factors that is used for accomplish high success in
organisation. It impacts on decision-making because negative attitude towards adoption of
change delay in organisation functions. This results that it is difficult for the business to start
operations with new strategies.
TASK 4
LO4 Apply a range of leadership approaches to a change initiative.
Leadership approaches to deal with the organisation context
Change take place within the organisation with different methods and this includes
almost all those steps that introduce new functions and operations in business. In the present
scenario, due to Covid-19 conditions this is difficult for the management to perform their work
with same practices and policies. Therefore, the manager of Unilever's apply new and different
leadership style that focus on company practices which are effective for current market scenario
(Mauder, 2021). The changes introduce by management considered towards the adoption of new
methodologies, modify work-style of workforce, introduce new management systems and this
leads towards complete of all work with changes. Lewin's change management model is

implemented by the management of Unilever's and with engage or use of all three steps which
are unfreeze, change and refreeze. This is easy for organisation to adopt the changes that
introduce new methods which helps to improve overall productivity of business.
Type of change Current impact on the company Desired Impact
Implement of new
methodologies
The current practices is not designed
according to the pandemic conditions. So
Unilever's manager introduce new
business practices which helps to
overcome from current situations. This
impacts on all systems of business due to
which this is difficult for manager to
adopt sudden changes within the business
(Mwatela, 2021).
The existing impact related
with business factors consists
of all those systems which are
used to improve the current
performance and this also
helps to achieve the desired
impact which is to introduce
new policies and
methodologies for performing
all work in a manner that helps
for overcome from pandemic
conditions in an easy manner.
To improve the
work mode of
workforce
With the analyses of current market
scenario, this is understand that
employees are demotivated to perform
their task and this is because Covid-19
impact on health of the individuals (Ryan,
and Horan, 2021). So they afraid to work
in the open environment.
The current informative
aspects helps to induce skilled
and capable workforce who is
able to complete the task in an
organised manner. Also, this
helps to introduce new skills in
work-premises that maximise
company productivity.
Improve
Leadership
authorities
With analyses of the current situation
especially, pandemic this is understand
that authorities perform an important role
to minimise the problems for workforce.
This impact on company productivity as
this enhance organisation workforce
Desired impact of the
leadership authorities consists
all those perspectives which
increase company productivity.
On the other side, this increase
overall performance which

performance. aids towards complete of all
work with new practices.
Participative leadership- One of the most effective leadership style of an individual is
participative leadership style. This consists to participate among all factors that helps for engage
the all ideas and thoughts for improve overall work-performance (Weeks, and Gil de Zúñiga,
2021). The major perspectives related with business aids towards satisfy of engaged employees
needs because this helps to perform work according to decided goals and objectives.
Advantages- This help the individual for build collaboration that helps to perform work with
better team-behaviour and spirit. Moreover, this helps to motivate the persons by engage of the
skilled workforce.
Disadvantages- The major drawback of participate leadership consists of all those factors that is
used for bring creativity among business. Lack of communication skill is one of the barrier and
disadvantage of organisation.
CONCLUSION
From the above discussion it can be concluded that, management plays a crucial role in
an organisation so that targets can be achieved. Change process of company has been described.
Internal and external analysis i.e., SWOT and PEST analysis has been described. Further,
evaluation of impact of change on organisation has been discussed. Impact of change on
leadership, individual and team behaviour has been described. Evaluation of how impact of
change has been minimised like, set timelines, share all the information with employees and
apply leadership style has been discussed. Along with this internal-external drivers of change and
their impact on the team and individual helps to understand all those perspectives through which
company performance is improved through perform work according to decided goals. In the last,
Lewin's change management model is implemented because this helps to induce and
implemented new approaches and methods to perform work with new methodologies. In
addition, it is also noticed that, changes give vast impact on functioning and strategies and
business. As the leadership style with their roles & responsibility of different leaders can be
changes according to situation of business effectively and efficiently.

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