Unit 17– Understanding and Leading Change Assignment

ID
Unit Number and Title Unit 17– Understanding and Leading Change
Project Title
A comparative analysis and impact statement report on organisational
change in a large multinational organisation.
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Table of Contents
INTRODUCTION..............................................................................................................3
TASK 1 ............................................................................................................................ 3
P1: Comparison of impact of change in organisation strategy and operations........3
M1 : Drivers and types of organisational change in case of above organisation.....5
TASK 2.............................................................................................................................5
P2 : Internal and External drivers of change that affect leadership, team and
individual behaviour.................................................................................................5
P3 : Measures that can be taken to minimise negative impact of change...............8
M2 : Theories and models to critically evaluate organisational change...................9
D1 : Conclusions and recommendations for effective planning for change.............9
TASK 3.............................................................................................................................9
P4 Explain the barriers of change and their impacts on leadership decision making...9
M3 Apply forcefield model and analyse with organization context.........................11
D2 Critically evaluation of using forcefield model...................................................11
TASK 4........................................................................................................................... 12
P5 : Different leadership approaches to deal with change ....................................12
M4 : Evaluation of leadership approaches that can deliver change effectively .....13
D3 : Critical Evaluation of Effectiveness of leadership approaches.......................13
CONCLUSION............................................................................................................... 13
REFERENCES.................................................................................................................1
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INTRODUCTION
For an organisation it is important to identify the changes taking place and their
impact on the operations. This creates a pressure on the organisation to understand
such change and develop the adaptability to change to ensure survival and
competitiveness. Organisational changes alter the structural relationships, roles of
people, processes etc. These changes can be because of drivers of change which be
external or internal and thus the reasons behind the change could be emerging
technology, change in market situation, deficiencies in the organisation and many
more. This report is concerned with understanding the impact of change on the
organisation structures and policies. Case studies of Golden Wonders and Agfa is
taken into consideration for analysing the impact on strategy and operations, evaluation
of measures that can be taken to reduce the negative impact. Also, this report includes
different barriers for change and influence of leadership on decision making. Various
models and approaches of leadership are taken into consideration that facilitate
implementation of change and helps in analysis of their impact.
Report 1
1.Comparison of impact of change in organisation strategy and operations
Change in organisation refers to a process that changes operational methods,
technologies, structure of the organisation, strategies they follow which can be due to
external or internal pressures. The impact of change on the organisation can be
negative and positive both. They affect the entire organisation consider it resources,
management, employees due to which resistance is very often as the adjustment with
the change may not be that comfortable for the people in the organisation(Aslan and
Reigeluth, 2013).
Change management is an approach that help in implementing the change in the
organisation. For comparing the impact two organisation are considered to understand
the impact of change on their businesses.
Drivers of change for Golden Wonder:
To develop the company, it is necessary for them to understand and learn the changes.
It will help them to expand their capacity. This can be done by the organisation as they
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can anticipate changes by spiting the trends and thus by adopting the business model
which can make implementation easy(Doppelt, 2017). These changes also have
influence on the leaderships, team and the individual behaviour. The types of drivers of
change are :
Internal Drivers of change for Golden Wonder : These are those drivers
which the organisation or in the industry. The organisation have control over these
changes. Various internal drivers that can bring change in the organisation are :
 Organisational culture : Organisational culture constitute of the behaviour and
the attitude of the employees. Whenever any change take place in the
organisation the leaders have to contribute to make people of the company
comfortable with such change. As in Golden Wonders the sales teams of the
organisation got influenced as they changed the distribution channel, but they
were motivated by the leaders.
 Change in Managerial personnel : When managerial person introduce new
changes in the organisation as done in Golden Wonders, due to which the
behaviour of individual persons have influence. Such changes brings changes to
the strategies due to which their roles and responsibilities get affected which may
demotivate them and also the changes in the strategies may make the
procedure complex due to which the performance of the employees will degrade
(Fullan, 2014).
Impact of changes in Golden Wonders :
Changes that took
place in the
organisation
They have introduced new products in their range and for which
they reduced the number of agencies who were operating for
them to distribute their goods, advertising through their own social
media channels, innovative and efficient processes. They also
have changed their packing for some of their products.
Drivers that forced
change
Drivers that forced the change was technological advancement,
change in taste and preference of the consumers, growing
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concern for healthy food and also due to change in managerial
personal.
Drivers of change for AGFA:
 Deficiencies in existing structure : if the structure of the organisation is not
efficient enough to achieve the goals and meet up with the vision, mission of the
organisation then it becomes mandatory for them to bring change in their
structure. Such deficiencies can be of lack of coordination, uniformity in decision
making etc. When AGFA will face such change, it will affect the leadership style
that is being followed because change in existing structures will affect the
organisational culture due to which leaders will have to calmly and patiently make
people of AGFA comfortable with change.
Impact of changes in Agfa
Changes that took
place in the
organisation
The major change that took place in Agfa is of group
transformation. Due to this, it split into two Agfa Healthcare and
Agfa within the group.
Drivers that forced
change
The drivers that forced these changes are technological factors,
global competition, accumulated loses of the organisation and
inefficiency due to conflicts in internal management(Bristol,
2015).
M1 : Drivers and types of organisational change in case of above organisation
The drivers that shapes change in the organisation can be internal i.e., within the
organisation or external i.e., from the external environment. The internal drivers can be
missions and vision of the organisation, leaderships, organisational culture etc. whereas
some external drivers are political, economic environment, market situation etc. The
drivers that brought changes in the above mentioned organisation are technology,
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internal conflicts, change in social and demographic factors and many more. The
change they bring can be of different type such as planned or unplanned change,
transformational or transactional change, developmental change etc. in case of Agfa the
type of change undertaken was strategic and structural while the type of change
undertaken in Golden Wonders is planned and developmental due to which their
processes are changed.
2.An overview of the organisation case studies.
AGFA:
Overview of the case : Agfa was facing various internal issues due to which the group
is being separated into two Healthcare and Agfa so that their performance can be
improved. They have faced changes in their strategies and structure which is why
change is resisted by their employees.
Golden Wonder:
Overview of the case : Golden wonder is a snack manufacture which has been
facing changes due to change in taste and preference of the consumer. They are
more health conscious which is why they even prefer snacks instead of avoiding
food but prefer healthy one which is why they have to introduce new healthy
products in their product range with technological advancement.
3.A PEST/SWOT analysis to be undertaken for each case study to identify drivers
of change.
SWOT for the Golden Wonder.
Strength Opportunities
The changes they introduced such as
innovative packaging, healthy products
As people are getting more conscious of
their health this is an opportunity to
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etc. will help them to increase their market
share because they already have a large
market share this depicts that customers
prefer their products.
continue the change and introduce more of
such goods like nuts etc.
Weaknesses Threats
The changes so taken by then were so
very frequently due to which the funds
requirement is high.
As they have changed their strategies and
distribution channel so this may affect their
supply. Also the customer may not get
attracted towards the packaging or not.
SWOT for Agfa :
Strength Opportunities
As the group has split into two parts, this
made their structure simpler which makes
them more focused towards their core
business and easy decision making.
The opportunities they have after the
changes is of increasing the market size
and growth potential.
Weaknesses Threats
The weaknesses they have to face is of
their poor financial statement before the
group got separated.
Threats that have been observed with this
change is of competition and technology.
Comparison: The change has taken place in both the organisation, but Agfa has
faced a major change as their entire structure whereas in case of Golden Wonders they
have introduces new products which are reactive changes that take place to make the
organisation competitive and ensure their survival and profitability.
External Drivers : these are those changes which are easy to manage by the
company. They can adversely affect the organisation as meeting up with such changes
can leads to major challenges in front of the organisation. Various external drivers are :
 Technological : Due to changing and emerging technology, the business has to
adapt it to make their business competitive. This has impact on the teams of
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organisation as they may not be that capable to adapt such changes. In Golden
Wonders they focussed on social media advertising, but their teams were not
capable enough to adapt such change.
 Competition : Due to competition the organisation has to bring changes in their
process and the strategies. Such as in Golden Wonders they changed their
advertising strategies and distribution strategies which help them to meet up with
the competition, but it has influence on the individual behaviour and teams as
they will be lack of skills to adapt such changes(Glass and Cook, 2016).
Impact of external drivers can be analysed by conducting
PEST for the Golden Wonders .
POLITICAL ECONOMICAL
Various Political decision such as Brexit
affect the business. Golden Wonders also
got affected and due to which they have to
change their distribution channel by
reduces their interdependence on
suppliers across borders.
As every organisation work for profits, so
they necessary steps to reduce its impact.
Due to Brexit the free trade agreements
were no more available due to which their
advertising cost increased. To meet up
with it they changed their process to in-
house social media advertising.
SOCIAL TECHNOLOGICAL
Due to change in taste and preferences of
the consumer, Golden Wonders has to
brought change in the products they
offered. They added nuts in their product
line with innovating and safe packaging
with is a rising demand of the consumers.
To be competitive, the organisation has to
adapt the emerging technology. As people
are more often uses social media, so
Golden Wonders has to start advertising
using that medium (Hillson and Murray-
Webster, 2017).
4.Analysis for each organisation on the impact of change and the effects it has
upon the organisation’s strategy and operations.
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Impact of change for AGFA
Impact on the
Strategies
Coalition of strategies took place due to which their existing
strategies are no more useful for the organisation. Both the
segments i.e., Healthcare and Agfa now operates separately
due to which they have their different management which
formulate strategies for them, also their divisional structure is
also separated.
Impact on the
Operations
Their operations are changed as now their distribution channels
are changed and are in China which eliminated the various
steps in supply chain. This saved a lot of cost for both the
company. Also due to alliances their manufacturing, technology
has separated which has severe impact on the employees of
the organisation.
Impact of change for Golden Wonder:
Impact on the
Strategies
Strategies guides the management in decision making but due to
changes taking place in Golden Wonders, they faced a major
impact of these changes on their strategies. All their advertising
plans are modified, financing sources were identified as their
requirement for funds increased suddenly. Their pricing strategies
were changed to pricing penetration where they now are
providing good quality at lower prices. Their focus has shifted to
market penetration and product development.
Impact on the
Operations
Operations are always influenced with the changes taking place
within the organisation. In Golden Wonders , the pressure on
production department increased to manage the new packaging
along with production in right quantity and quality. Marketing
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teams have to be more active as distribution channels are
modified and advertising plans are changed (Berman and
Korsten, 2014).
5.Evaluation of how change will have affected leadership, individuals and team
behaviour.
Impact of change on Golden Wonder Leadership:
As they have introduced new products in their product range and reduced the number of
agencies, this has increased the pressure on the staff. To make them comfortable with
the changes in structure thus in culture leadership plays a crucial role as they will
motivate them by reflecting the benefits from the changes.
Advantages: The advantages of leadership in Golden Wonders is they make employees
comfortable with the changes in the organisational culture.
Disadvantages: The disadvantages that they faced is of more of informal
communication in the organisation which adversely the culture.
Impact of change on Golden Wonder individuals:
Due to changes in Golden Wonder the individuals got affected as their roles and
responsibilities changed due to change in structure and strategies.
Advantages: This will make their employees more confident and compatible as they will
have more responsibilities and authority.
Disadvantages: The problem that was faced by them was of competence in context of
skills and ability that they poses.
Impact of change on Golden Wonder teamwork:
Due to reduction in number of agencies the pressure on sales team increased due to
which they have to be more conscious of customers reactions which were earlier
analysed by their agency managers.
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Advantages: Dependency on third party is reduced which increased the profit margin for
the company.
Disadvantages: The team felt demotivated as their responsibilities increased. This
affected their performance.
6. Measures that can be taken to minimise negative impact of change
Business has to undertake various activities to make their business efficient and
profitable. To make business effective as per the changing needs of the business the
changes need to be implemented by the organisation. The important thing that the
management need to consider is the impact associated with such change which can be
negative and positive both. If these changes are negative, then the measures to
minimise such impact has to be determined by the organisation. Some measures that
can be taken are:
 Establish proper communication channels with the employees : If
employees are involved in the process of change it will motivate them to adapt
the change. It will help the leader to implement the formulated strategies and
plans to the introduce the change in the organisation. Golden Wonders had
successfully implemented such change effectively as they have discussed it with
their employees well in advance(Komives, 2016).
 Leadership : One of the best measures to minimise the impact of change in the
organisation is effective leadership as they set example before employees which
motivates them to adapt change. Leaders provide the vision to the employees
and help them to understand the benefits and the opportunities they will get from
change. Leaders of Golden Wonders make their sales team aware of the growth
opportunities they can avail now and in future.
 Understanding of the factors that influence the organisational culture i.e.,
psychological impact : To make employee comfortable with the change the
company should know those factors which has major influence. Flexible, friendly
environment with decentralisation of authorities keep employees motivated.
Golden Wonders followed the same methodology to make employees adapt the
change(John and Kulkarni, 2014).
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Appropriate models to process change efficiently.
Organisation uses various models and theories to implement the change
efficiently and successfully. Golden Wonders used Bruke-Litwin Model for implementing
all the changes they made. HR managers used this performance and change model
which help them to understand the cause and effect relationship by considering 12
elements in the organisation due to which change incurred in the organisation. This
helps in determining organisational and environmental factors which help to adapt
change successfully by creating a balance between all the factors. The model also
suggest that effectiveness of change depends upon how well 12 elements have been
identified. Golden Wonders successfully implemented the change as identifies all these
elements along with cause and effect relationship.
D1 : Conclusions and recommendations for effective planning for change
The importance of change is identified above that for being competitive and
successful organisation has to adapt change . But to implement such change
identification of various internal and external drivers is important which is effectively
done by KP Snacks. Various theories and model helps in effective implementation as
they have used Bruke-Litwin model. It is recommended that they could also have used
Lewin's change model that would have facilitated in implementing change in stages by
Unfreezing existing policies , bring change and they refreeze it. Few more
recommendations for Golden Wonders are they should implement changes one by one
as it will help the employees to be more effective and to focus on their core
competencies as it will help them to increase their profitability.
Report 2
1.Introduction to the Golden Wonder:
Overview of the case : Golden wonder is a snack manufacture which has been
facing changes due to change in taste and preference of the consumer. They are
more health conscious which is why they even prefer snacks instead of avoiding
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food but prefer healthy one which is why they have to introduce new healthy
products in their product range with technological advancement.
2.Apply force field model and analyse with organization context.
Force field model was created by Kurt Lewin in 1940's and is an important
contribution in the several fields like psychology, social science, communication,
organizational development as well as process and change management. It provides a
framework for examining the factors which influence the business situations. The main
purpose of that model is that conditions are kept by an equilibrium between forces that
drive changes and others that resist changes. Apply this analysis in Golden Wonders
are discussed below :
Define problems: In the first step of this the manager of Golden Wonders have
to prepare a list of all situations and conditions. All situations are needs to be separated
for the purpose of determining them which are to be modified and which are managing
well.
Define the change objectives: The manager of a company focuses on the
change objectives which is related to the internal and external that can influence the
alterations.
Identify the driving forces: Management of company's needs to examine the
driving forces along with their benefits and drawbacks and develop the inter-relation
among the driving forces. This factor are in terms of political, cultural, technological, etc.
Identifying the restraining forces: In this step, manager of Golden Wonders
identify the factors of resist changes in order to determining the advantages and
disadvantages. This will help in implementing the effective changes and make
interrelationship among all factors.
Develop a change strategy: At last manager analyse the all informations and
above factors making effective strategies which helps in adopting changes and gives
benefited to the company(Salmela, Eriksson and Fagerström, 2012).
D2 Critically evaluation of using forcefield model.
Forcefield model impacts on the Golden Wonder changes in a positive as well as
negative. This will beneficial for the Golden Wonders while dealing with the complex
situations in an appropriate manner. Although, it is very simple and easy method to
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analyse the initiate and apply the changes. In addition, it will be less impactful in motive
conditions of resisting forces because it increase the stress among employees
regarding the changes.
3. Explain the barriers of change and their impacts on leadership decision
making.
There are various issues and barriers that are faced by a Golden Wonder at a
time of adopting changes as well as it impacts on the leadership decision making in a
considerable manner. The company has only two option either accept change or remain
same, fully changes are not easy to form. So most of the companies innovate and
modified in their existing one and barriers helps businesses to create successful
strategies for fruitful implementation of change.
The Golden Wonders identifies some barriers which are as follows:
Lack of employee engagement: Employees are not easily adopting and accept
the changes in their working performance related to the technologies, processes,
strategies etc. This will impact on the poor engagement and involvement of employees
towards the achievement of organizational objectives. In the context of Golden Wonders
, if a company wants to develop the changes in a positive way then they focused on
their employees as well as treated them as an asset of an organization. When workers
are not satisfying or accept the changes then it will create a negative impacts on the
overall company's performance as well as on the leadership decisions for implementing
the appropriate styles( MacKian and Simons, 2013). So, a company needs to facilitate
the full knowledge about the changes and engaged them in several activities.
complexity at workplace: If changes are complex in nature then it creates
complexity at their workplace because the planning and implementing process is also
more complex. It includes the processes, products, services, systems etc. contributes to
change barriers because it is difficult for the employees to understand. To break the
barrier, Golden Wonders adopting diligent, and highly effective change management. If
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there is lack of maturity to handle any complex changes then do not want to introduce
any changes by the company. If culture is highly effected, then leaders faces problem
regarding the taking decisions of approaches to manage the changes.
Government policies and regulations: Changes in the rules and policies of the
government deals as a barrier while initiate and implement the changes. This will affects
the company's profits and employees potentiality. In the context of Golden Wonders,
manager of the company needs to follow strategies with accordance of the changes in
political changes that helps in capturing the large market area. Suffering from this
problem an organizational decisions and strategies are affected in appreciable manner
through the leaders as well as managers. Leaders plays a important role in decision
making by examining the drawbacks and alteration in rules of governments because
they are liable for taking an effective and efficient decisions for implementing successful
changes in an organization(McCalman and Potter, 2015).
Lack of proper communication channel: Many organizations have in-effective
communication strategy for declaring the changes in their workplace. For implementing
the effective changes, a company and leaders needs to cooperate with their employees
till the successfully completion of specific tasks. Workers don't want to know about the
only changes, they needs to proper guidance for adopting in an appropriate way along
with changes procedure and its impacts on organization. This will affected by using in-
appropriate leadership approaches for handling the effective change and manages
them efficiently as well as effectively. Changes are not resisting forcefully, it can be
delivered in a proper and appreciable manner(Mukherjee and et. al., 2012).
Impact of change on leadership and decision making at Golden Wonder:
In the context of Golden Wonders , if a company wants to develop the changes in
a positive way then they focused on their employees as well as treated them as an
asset of an organization. When workers are not satisfying or accept the changes then it
will create a negative impacts on the overall company's performance as well as on the
leadership decisions for implementing the appropriate styles( MacKian and Simons,
2013). Changes are not resisting forcefully, it can be delivered in a proper and
appreciable manner. Leaders plays a important role in decision making by examining
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the drawbacks and alteration in rules of governments because they are liable for taking
an effective and efficient decisions for implementing successful changes in an
organization. If culture is highly effected, then leaders faces problem regarding the
taking decisions of approaches to manage the changes.
4.How was the change accomplished at Golden Wonder, and how successful was
it?
In order to make improvement in the overall working of the organisation, the use
of different models has been done so as to make proper implementation of changes in
organisation has been done with the application of change models such as Force Field
Analysis. With the application of this model, the change has been implemented
successfully to much extent in the organisation and made employees to deal good with
changes implemented in Golden Wonder.
5. Different leadership approaches to deal with change
Leadership is important for every organisation while implementing change as
leaders have the ability to influence and convince the people. They helps the
organisation in stimulating and support the change which an organisation wants to
implement. Leaders of Golden Wonders posse’s various leadership approaches which
helped them in making all the changes successful(Tombetti and Mason, 2018).
 Directing : This is a approach were leader communicate all the roles and
responsibilities of the individuals which is possible only by way of one way
communication. Although they welcome all the suggestions from their people but
here, they direct them the task and duties. This approach help the leaders of
Golden Wonders in clearing the task and activities that they have to perform
which ensure completion of activities on time.
Advantages: It clearly defines the roles and responsibilities of the individuals
which reduces the chances of chaos and confusion.
Disadvantages: As the communication is one way the employees may not get
opportunity to put their opinion before management.
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 Delegating : The leaders carefully observe the people and then delegates the
responsibilities and roles. This provides the authority to take decision so that the
procedure is not delayed. This helped the leaders of Golden Wonders in
implementing so many changes simultaneously as they allocated the powers to
the responsible people which may not be possible for management to do as
leaders are in direct contact with the people.
Advantages: This type of leadership style saves time and build trust among the
employees and the management.
Disadvantages: It may increase the risk of failure and misuse of the authority
that has been delegated.
 Coaching : The leaders provides guidance to the employees to perform various
tasks, information which can be used by the employees in performing their task.
Through this leadership style they leaders to identify the requirement of training
and they provide so to their employees. Golden Wonders uses this style of
leadership to provide guidance to their employee (Stanleigh, M., 2013).
Advantages: This type of leadership style create a positive environment and
improves the competence of the employees. As proper guidance is been
provided to the employees.
Disadvantages: It is time consuming process and demands for skilled
leaders also it mat always be right approach.
 Supporting : This leadership style was used by the leaders of Golden Wonders
as the roles and responsibilities were shared by the workers with their teams.
This develops the supportive behaviour in the employees which help leaders to
maintain and manage the organisational culture.
 Also, leadership styles such as transformational and transactional are also
beneficial for the Golden Wonder while implementing change.
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 A transactional is a style that consider formal structure and motivates their
employees through rewards and recognition while transformational leadership is
a style which focuses on motivating through inspiring, encouraging the
employees.
 Both of these styles could be used by Golden Wonders to make the change
successful (Understanding and leading change. 2018).
Examples of various leadership approaches applied at Golden Wonder:
During change Golden Wonder applied situational leadership approach and applied
transformational leadership approach to deal with change happening in the organisation
Apply one model on Golden Wonder
The model that can be used by the leaders of Golden wonders to understand the
change and responses of the people at different stages is Kotter's Eight Step model.
This helps them to understand various situations and issues that can arise before
organisation while implementing and planning to implement the change. The eight
stages includes creating urgency, building the team, creating vision, communicating the
vision, focusing on the short term goals, not to give up and incorporation of changes. All
these help the leaders to also make employees understand that how such change will
be beneficial for them in context of their development.
M4 : Evaluation of leadership approaches that can deliver change effectively
The model that is used by the Golden Wonders is Bruke-Litwins model of change
which helps them to implement change. They also used various leadership approaches
which help to understand the culture well. As mentioned above they can use Kotter's
model. Also various approaches such as coaching, delegation and directive will help
the leaders to deliver the changes effectively (Painter and Clark, 2015).
D3 : Critical Evaluation of Effectiveness of leadership approaches
Leadership always plays a crucial role in an organisation as they create vision
and make it a vision of the employees too. They themselves work hard to keep their
employees motivated by setting examples in front of them. Five force model helps in
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decision making and analysing the performance which help them to further delegate the
authorities. But it may compromise in some cases where leaders are bias because this
adversely affect the organisational culture.
CONCLUSION
This project deals with changes taking place in organisations. Changes are inherited
part of every company which cannot be avoided and to survive in long term it is also
essential to bring changes. In this report, Impact of changes on organisations is
discussed, then drivers of such changes and various measures to minimize the effects
of such changes are referred. Further, some theories are analysed, and models are
developed to evaluate change, critical evaluation has also done using field force model,
after this barriers of such changes and its impact on leadership is noted. Lastly,
leadership approaches used by leaders in the company are evaluated and it
effectiveness is critically evaluated to draw relevant conclusions.
Recommendations:
The recommendations that has been provided to the company is that they should
use effective leadership approach such ad delegation and coaching which will help their
employee to motivate and accept the change. The model that they can use to
implement the change is Kotter's model of change and Bruke-Litwin model. This help
the management to understand the requirement and implement change effectively.
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