Understanding and Leading Change in Organisations

This report discusses the importance of change management in organisations, including the impact of change on strategy and operations, drivers of change, ways to minimise negative impacts, and barriers to change. It includes a comparison of different organisational examples, SWOT and PESTLE analysis, and evaluation of leadership approaches. The report also covers measures to minimise negative impacts of change on organisational behaviour and the long-term implications of internal and external drivers of change. Subject: Understanding and Leading Change, Course Code: MBA, College/University: Not mentioned.

Understanding &
Leading Change

Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations....................................................................................1
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected....................................................................................4
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation.......................................................................4
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour..............................................................................................................5
M2 Critically evaluate the long-term implications of internal and external drivers of change
within an organisation..................................................................................................................6
P4 Explain different barriers to change and determine how they influence leadership decision-
making in a given organisational context....................................................................................7
M3 Use force field analysis to analyse both driving and resisting forces to show how they
influence decision-making in a given organisational context......................................................8
P5 Apply different leadership approaches to dealing with change in a range of organizational
contexts........................................................................................................................................9
M4 Evaluate the extent to which leadership approaches can deliver organizational change
effectively applying appropriate models and frameworks.........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Change is very important to occur if an organisation want to be competitive, it will find
itself lagging and not to be competitive without adapting new ways and methods. In order to
accept the new concept of work practices by an organisation the changes have to occur that leads
to organisational changes that may even disturb the working patterns. An organisation must
continuously be evolved and adaptable to meet a variety of challenges i,e., from changes in the
technology to the rise of new competitors or any shift in laws, regulations or even following the
economic trends. The manner in which these changes are systematically processed or managed is
known as change management. It helps the organisation to improve communication, increases
productivity, reduces the stress level and improved decision-making leading to create positive
and healthy environment. This report will include organisation change and important role in
intense process of change management (Mwakisaghu, 2019)
MAIN BODY
P1 Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations.
Change management may impact the organisation in various manner, it may be positive
or it may be negative. It can be said that change management makes people to take an
uncomfortable or unfamiliar new roles. We have taken TESCO and Marks and Spencer into
consideration as they have their own ways to work or to operate and even executing their
processes. This impact of change management can be determined by SWOT as well as PESTLE
analysis :-
SWOT analysis – It stands for Strength, Weakness, Opportunities and Threat. The main motive
of this analysis is to determine the internal (Strength and Weaknesses) as well as an external
factors (Opportunities and Threats) of an organisation. For an effective SWOT Analysis and
better result, person with good knowledge in managerial field should be involved. TESCO is
British multinational groceries and general merchandise retailer (Teoli, and et.al., 2019). The
table below represents the SWOT analysis of TESCO.
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Strength Weakness
 Offering good quality product to the
customers that are basically designed
and produce by the expertise having
knowledge of trending market and its
factors affecting the customers needs
and satisfaction.
 Adapting new technologies by TESCO
PLC enhances to get a better
experience in terms of customers.
 Due to lack of market research, TESCO
may face failures of ventures.
 Increase of debt is the biggest weakness
of TESCO as it is going through huge
financial crises due to growing its
network worldwide.
Opportunities Threats
 TESCO has the best option to enter into
the emerging market and hence has
expanded the area of its operation.
 Adapting the smaller chains and tie-ups
can also boost the growth of TESCO.
 Free delivery strategy is followed by
the competitors that could switch
customers away from Tesco.
 Tesco’s petrol leakage is the major
threat, it must be taken into
consideration and make TESCO more
environment friendly.
PESTLE analysis - It stands for Political, Economical, Social, Technological, Legal and
Environmental factors. This analysis can be used for different range of scenarios and can lead
professional people and senior managers in taking strategic decision-making (López, 2017). It is
determined as below :
1. Political – The government and its policies may leave an impact on an organisation or a
specific industry which may include political policy and stability as well as trade. Since
the political environment of the Britain is very stable which helps the TESCO to become
top retail company. It even must handle the organisational strategies and operations
effectively,
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2. Economical - An economic factor directly affects the economy and its performance, and
at the same time affects in indirectly manner the organisation and its profitability. Tesco
even in Covid was able to stay because of its online shop but even then some of the stores
of TESCO was to be closed.
3. Social - The main focus of Social factors is on social environment and determining their
emerging trend leading to know more about their own customer needs and satisfaction.
Tesco follows the local and social trends of different communities by serving them the
food they need.
4. Technological - Technology is very important in order to grow an organisation and to
retain its position in the market for longer period of time. TESCO has installed
technologies to keep up with competition making its operations smoother.
5. Legal - Legal factors include changes to legislation impacting employment, taxation,
health and safety, equal opportunity, advertising standards, consumer rights and laws,
product labelling and international as well as trade regulation and restrictions
(Whitehead, 2011).
6. Environmental – In current era the environmental factors have gained a lot of
importance. TESCO along with the government have become more conscious about the
factors leading to different types of pollution. It must keep in mind the eco-friendly
practices.
Company Identifying the changes Impact on Strategies Impact on Operations
TESCO Covid-19, technologies,
society,
They had brought their
store online and
changed their working
strategies little.
To keep up with
competitors, it must install
some new technologies
and improve its
operations.
Unilever Marketing campaigns,
technology
Being a global brand, it
must analyse the
effective marketing
strategies as it has
Marketing campaigns
helps the company to
operates its operations
effectively and efficiently
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many competitors. and even the technology
have also being improved
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected.
Companies are require to determine the trends and patterns of their particular sectors and
must cope up with the remedies which helps them in sustaining their operations along with their
vision and mission. With the evolving time the companies face many unexplored issues for
which the companies have young employees which have the calibre and the understanding of
dealing with the issues that are being faced in this time of the economy.
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation.
An internal and external drivers of change may affect the leadership, team and individual
behaviours within an organisation. The ability to compete and respond successfully to the
changes in internal or external shows the organisation's competitiveness. Change can be said to
be very hard on the leaders and even on the team members. Every organisation has its own
organisational culture, diversified work, technology, the values and ethic followed by the
employees and also the resources that are being used by the leaders for the
growth of the company that creates a much bigger impact on the leadership. The above factors
are taken into consideration by the managers as the culture and the working environment plays a
very important role in determining the ways in which the operations can be executed and thus
makes the working environment healthy. A successful organisation is one which has a clear
sense of its ultimate goal and also it knows how the organisation intends to fulfil that purpose
The vision and the mission is only the reason why an organisation exists and try to retain its
brand as well as making it successful organisation, this can be the internal factors which even
may affects the function of the company (Aitken, and von Treuer, 2020). The external factors
also affects the function of the company TESCO basically highlight the sustainability which has
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been the ultimate goal of the company to motivate and encourage the market competitions. And
this this the reason why many companies now a days focus on market competition to make
business processes much more environment friendly. The craze of sustainability have increased
the efforts in making their organisations product or services to be more retainable and of best
quality which has turned up to an opportunity for that organisation. And not only this many
countries have started focusing on the sustainability of companies product resulting of which the
organizations are now required to market and create their products while holding the spirit of
sustainability, which leads to be an opportunity for the organisation as from the very beginning
the company starts focusing on this ultimate goal.
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.
The culture of the company is just like wind although it is invisible but then also it can be
seen or felt by the impacts on the company. If that is in the favour, it facilitates smooth working.
But ever when it blows against, it creates turbulence. Negativity at workplace can manifest,
dividing the teams, spreading to departments and finally affecting the organisations company-
wide. So following are the points that how an organisation can minimise the negative impact of
change on the organisation behaviours (Dawson, 2018).
.
1. Effective Communication : Business organisation must keep in practice the effective
communication within organisation which helps the management basically in developing
the transparency among the employees. TESCO has provided this openness to its
employees to coordinate and corporate in the times of change in organisation and its
management.
2. Adequate Training : Training plays a very important role in an employees working
profile. Adequate training helps an employee to overcome the changes in an organisation
or its management. These changes can't be predictable and for that TESCO give much
more training to its employees in such a way that it helps to create the adequate skills and
knowledge so that in future ever the company makes any changes in its management it
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can be handled by the employee easily and effectively. Other than this, TESCO usually
hires talented candidates who have capabilities to handle the pressurised work.
3. Sufficient time for planning : Planning is the initial stage in the process of success.
While taking any decision regarding the changes in organisational process or its
management, the organisation must not hurry as making decision in hurry can result in
affecting the organisation badly. TESCO do not favour this techniques as organisation is
very clear to its goals and the knows that making any such decision will not only affect
the organisation or its management but also it will affect the employees working there.
An organisation must give its employees enough time to process the change and cover all
the solutions that will help in overcoming from the situations leading in effective
management of the change along with its sustainability in the market of the organisation.
4. Recognising Talent : An organisation must understand the need of recognising the
talents of its employees or even while hiring the candidates. Employees recognised and
promoted for their good work can encourage the morale of that employee and thus lead in
building enough confidence that even can help the organisation to recognise the future
leaders. TESCO is such a big and employment generating company. It uses this technique
so that it can use the best skill in making the growth of the organisation.
M2 Critically evaluate the long-term implications of internal and external drivers of change
within an organisation.
The organisations may face problems due to significant amount of factors that might
require an immediate response, usually because of organisational change. The forces that
includes these changes in an business organisation are internal and external drivers of change
within an organisation which leave long-term implications. The internal drivers of TESCO are
organisational culture, its activities, decision-making and employee behaviour and attitudes
(Delgado, 2018). If TESCO makes any change in leadership style, organisational culture,
organisation's mission or vision can have a very negative impact on the organisation working
culture as well as its management. The external drivers of TESCO are macro factors which have
a long impact on an organisation. It may be customers, competitors, economy, technological,
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political and social condition. The organisation is required to make changes in a much
sustainable manner which will prevent from suffering from any type of drastic transformation.
P4 Explain different barriers to change and determine how they influence leadership decision-
making in a given organisational context.
Managers and the leaders are the person who know that how the changes will affect the
organisation and what will happen to their organisations. The ultimate goal, strategies, resources,
business environment, structure such change can affect the organisation. Thus leader must need
to understand the nature of changes, primary barriers to change and how it might influence the
leadership, decision-making of TESCO company.
The main barriers are organisational culture, poor communication in an organisation and
negotiation mechanism and even non-participatory decision-making. This barriers usually affect
the leadership decision-making (Hayward, 2010). The barriers which influence the change within
an organisation and how it is influencing leadership as well as decision making includes :-
1. Poor or Ineffective Communication – A successful communication among the
employees will leads to successfully adaptation of the organisational change.
Communication must be kept at centre stage in both while planning and implementation
phases of organisational change. While planning any project or new direction
communication should be done before implementing or executing. Lack of
communication may create complexities even in future because organisational changes
are made to make improvement rather than making it more worst. Similarly, TESCO will
also not be able to communicate their message to the customers of such a reputative
brand.
2. Collaborating and negotiation skills – Collaboration and negotiation plays a very
important role in contributing to the growth of the organisation. When any organisation
does not focus on the collaboration and negotiation skills of the employees then they are
generally not able to utilize at the time of emergencies of change. Not only this
collaborating helps the cross functioning teams in taking help from each other and
formulating a solution for the issues which are being the barriers in the functioning of the
organisation. The employees working in the organisation should know the way they are
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required to function and bring plan into reality which can be done collaborating and
negotiating with the team members along with the stakeholders.
3. Monopoly in decision-making – An organisation which makes it decision by its own
and never involve its managers or its employees it results in sin loop holes which arises
with the lack of transparency in the decision formulated. The TESCO company practices
this technique as the ultimate goals of the decision made are directly conveyed to the
employees of that organisation. Thus does not affect the company much. But in case of
other organisation this monopoly in decision-making it turns out to be disadvantageous as
the higher management of that organisations do not involve in the process which prevents
them in giving their input in the decisions.
4. Cultural Barriers – It requires an in-depth understanding of who all are the stakeholders
in a change process and what matter for them the most while overcoming cultural barriers
to change management. Regular communication, representation within a team and
feedback channels are most important tool to manage changes in a way that integrates
instead of diversified groups of the stakeholders within your organisation.
M3 Use force field analysis to analyse both driving and resisting forces to show how they
influence decision-making in a given organisational context.
Force Field Analysis is a systematic framework used to aid business decisions, most basically in
relation of strategic planning, implementation or change management. It helps to identify and
understand the root cause, which determines the actions which must be performed by the
company or organisation (Cronshaw and McCulloch, 2008). The techniques of Force Field
Analysis is generally based on the assumption which make sure that the forces stay in the state of
equilibrium. This analysis allows in these following actions :
 It helps to determine the positive as well as negative view of a circumstances and helps
the team in identifying the intensity of the situations and taking the decisions according to
that.
 This analysis also helps in identifying all the aspects which will directly or indirectly
affects the functioning of the operation and even it represents the overall view of the
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changes and various ways that will be impacting the aftermath which eases out the
pressure upon the employees.
P5 Apply different leadership approaches to dealing with change in a range of organizational
contexts.
The process of influencing employees to work towards the achievement of organisational
objectives defines the leadership and in addition to that, leadership theory explains the reasons
that what makes specified individuals become a leader. It is one of the complex processes
because an individual tries to analyse various factors that will result to drive out of it (Mackenzie
and Barnes,2007). The decision-making process of the organisation generally depends on a
particular individual that how he is taking decision regarding the operations of the organisation
and thus making any project successful. There are various kinds of leadership approaches which
helps in determining the management of change within an organisational strategy as well as
operation (Oshagbemi and Ocholi, 2006).
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1. Transformation Leadership: This leadership approaches places emphasis on the change
and the transformation. Leaders in an organisation adapting this approach seek to inspire
their employees or subordinates to achieve more than what they never have thought of
being possible. Thus, this approach helps in improving the performance of each and
every employees and the manner they use to deal with the drastic situations and taking
quick actions. This approach helps TESCO in developing the critical thinking skills
which is very important from organisational point of view as it helps in many ways such
as taking right decision in critical situations.
2. Value – Based Leadership: In this type of approach, leader in an organisation seeks to
encourage others to act in a manner while keeping the core value of the organisation in
mind. It creates positive change among the employees by emphasizing the organisational
mission and vision along with the ultimate goal. TESCO have clearly defined the
organisational vision and mission to the employees and in return the employees follow
the leader and focus on organisation's goal which help the company to keep sustainability
in the brand value as employees are sticking to the core values.
3. Situational Leadership: The situational leadership approach states that leadership is a
function of a social situations which is interacted between the leader as well as the
subordinates. This helps the leaders in realizing the nature and behaviour of the
employees within an organisational operations and tries to implement their leadership
style on the employees they wish to influence. This leadership approach helps TESCO in
determining the performance and the working speed of an individual to complete a task.
M4 Evaluate the extent to which leadership approaches can deliver organizational change
effectively applying appropriate models and frameworks.
Change is something that is constant and that is certain to happen, to cope up with that an
organisation uses various frameworks and determine the theories to overcome from this impact
on an organisation, to evaluate the efficiency with the change management of an organisation.
The most and best model used for determining the change management of an organisation is as
follows:
McKinsey 7's Model: This model is a change framework based on the organizational design and
behaves like a tool for future success of a company (Dezdar and Haghighi, 2014.).
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1. Strategy: The change management relies on the strategies developed by the TESCO
company and thus they need to pay attention.
2. Structure: TESCO follows well establish organizational structure that help TESCO
majorly in change management.
3. System: System can be referred as the process through which the structure of an
organization is followed to achieve the ultimate goal.
4. shared values: TESCO have its own values and ethic that is also followed by the
employees working there.
5. Style: The style of TESCO company can be seen by its strategies and functionalities that
leads to success of the company.
6. Staff: The TESCO company have great human resource team that determines the
recruiting the right person at right position, hiring talent is the most acceptable.
7. Skills: The skills of an employees of TESCO plays an important role in effectively
managing the situations.
CONCLUSION
In this report we have included the overview of TESCO and its change management that has
affected the strategies and the operations of that organisation. This report also contains the
overview of all internal as well as external factors that do impact the process, procedures and
structure of the change management along with various impacts due to change management on
company's operations are also included in this report. In other sections of the report we have
included the analysis of internal and external factors that are affecting the organisation while
they try to manage the changes and with the help of Force Field Analysis we concluded the
change framework of the organisation that helps in minimising the negative impact of the
operations followed by long term implications of both internal and external drivers. This report
also included the effect of leadership approaches and their styles followed by the organisation.
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REFERENCES
Books and Journals:
Aitken, K. and von Treuer, K., 2020. Leadership behaviours that foster organisational
identification during change. Journal of Organizational Change Management.
Cronshaw, and et.al., 2008. Reinstating the Lewinian vision: From force field analysis to
organization field assessment. Organization Development Journal, 26(4).
Dawson, T., 2018. How to minimise negative impact…. Dental Nursing, 14(2), pp.76-77.
Delgado, M., 2018. Firms in context: Internal and external drivers of success. In The new Oxford
handbook of economic geography (pp. 324-344). Oxford: Oxford University Press.
Dezdar, M. and Haghighi, M., 2014. Feasibility of implementing enterprise resource planning
(ERP) in the exploitation of oil and gas company of Gachsaran based on McKinsey 7s
model. Advances in Environmental Biology, pp.223-231.
Hayward, S., 2010. Engaging employees through whole leadership. Strategic HR Review.
López López, N., 2017. Different ways to assure the continuity of the business.
Mackenzie, K.D. and Barnes, F.B., 2007. The unstated consensus of leadership approaches.
International Journal of Organizational Analysis.
Mwakisaghu, J.K., 2019. Strategic management change. International Journal of Advanced
Research in Management and Social Sciences, 8(5), pp.8-22.
Oshagbemi, and et.al., 2006. Leadership styles and behaviour profiles of managers. Journal of
Management Development.
Teoli, and et.al., 2019. SWOT analysis.
Whitehead, J., 2011. What you need to know about strategy. John Wiley & Sons.
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