The impact of change on organizational behaviour and strategies

UNDERSTANDING AND LEADING CHANGE Contents INTRODUCTION 3 TASK 1 3 P1 Impact of change in different organization’s strategies and operation 3 TASK 2 6 P2 External and internal drivers of change that can have an effect on leadership, team and individual behavior within organisation 6 P3 Measures to reduce negative impact of change on organizational behavior 8 TASK 3 10 P4 Different barriers for change and how it influence leadership and decision making 10 TASK 4 11 P5 Various leadership approaches to deal

UNDERSTANDING AND
LEADING CHANGE

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Impact of change in different organization’s strategies and operation................................................3
TASK 2.......................................................................................................................................................6
P2 External and internal drivers of change that can have an effect on leadership, team and individual
behavior within organisation...................................................................................................................6
P3 Measures to reduce negative impact of change on organizational behavior.......................................8
TASK 3.....................................................................................................................................................10
P4 Different barriers for change and how it influence leadership and decision making.........................10
TASK 4.....................................................................................................................................................11
P5 Various leadership approaches to deal with the changes..................................................................11
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
In today’s competitive world, due to rapid change in trends and technology, it is
compulsory for every organization to make modifications in their working system and
operations. Managers are needed to formulate new strategies and plans for initiate alterations in
workplaces. But in implementing these changes, they face many problems and issues. Therefore,
managers and leaders coordinate each other for influencing the people at organisation. Along
with this, they are required to possess some effective leadership and management skills through
they can perform in an efficient manner. This process helps them in increasing profitability as
well as productivity of business as well. With this assistance, present report is going to reveal the
role of leaders and managers in leading the changes at organisation. Morrison Company is taken
in this context, which is one of the best retailers in UK. It offers a wide range of products as per
requirement of customers at affordable rate (Anderson, 2016). For attaining competition, it
introduces some modifications in associations, therefore, some internal and external key drivers
of change that discussed in this assignment which affect the entire functions of company. In
addition to this, some effective methods and leadership approaches also presented in brief
through which employers can reduce the impact of changes on firm.
TASK 1
P1 Impact of change in different organization’s strategies and operation
As per present scenario, changes are essential for every organisation whether big or small
to expand their business at economic level. Due to modernization, people demand more and
more new features in commodities, therefore, associations are required to add value in existing
products or create innovative goods at marketplace. Adding value in existing products or
providing new goods helps in acquiring competitive advancement from rivals (Fragouli and
Ibidapo, 2015). As creating alterations is not an easy process, it requires number of steps such as
identification of new trends, number of competitors, strategies used by them for acquiring
marketplace, technologies and more. After measuring requirement of changes, managers are
needed to formulate new policies and strategies through which they can implement modifications
in a required manner. This would help in achievement of business goals and objectives as well.

Since brining changes in workplace is beneficial for a firm in terms of increasing growth
of a business, but it includes many risks also. It impacts on business activities in both positive
and negative manner depends on objectives and goals of organisation. For this process, how
changes have impact on function of Morrisons, a table is given below (Doppelt, 2017). It shows
a comparison also between this firm with its competitor ALDI. Both associations are belong
from retail business having same range of products like clothing, groceries, household
commodities and more.
Changes Morrisons ALDI
Changes in external factor External factor directly
impacts on business
environment of a company in
both positive and negative
way. It includes taxation
policy, economic conditions,
competitors’ expansion and
more. Therefore, due to these
factors, business of Morrisons
has fluctuated. So, its
management has formulated
some new policies and
strategies in operational
activities of organisation. It
has helped in running the
business successfully as well
as gained sustainability at
marketplace.
Business of ALDI also has
impacted a lot due to external
factors. Therefore, it has
incorporated business with all
legal laws through which
management can carry out
operational activities in a
required manner (Hillson and
Murray-Webster, 2017).
.
Structure Change At present, Morrisons has near
about 500 stores in UK as well
as in other locations
worldwide. Along with this, it
has approx 132,000 workers in
As comparison, ALDI has
expanded its business with a
rapid rate. Currently it has
around 10,000 outlets in
around 20 countries. Through

these stores who help in
providing effective customer
service on time. It has a wide
range of products including
Food & Drink, Clothing,
Magazines, Books, CDs and
DVDs etc. Because of
competitors like TESCO,
Sainsbury, ALDI and more, its
business has cut down by
10%.
this, turnover of this company
as measured is approx €50
billion per year. But behind
these as calculated, Morrisons
has gained 7% more than in
profit share.
Emerging Technologies In order to get high revenues,
Morrisons always update its
organisation with latest
technology. It would help in
adding more values in
products as well as providing
effective services to customers
on time.
In context with ALDI,
emerging technologies impact
on its business also.
Implementation of new
technologies in working
system helps in making
innovative products as well as
reducing wastages also.
Therefore, it has examined that change in external environment forces a company to
create modifications in internal activities. So, managers and leaders of Morrisons are required to
initiate and implement new strategies into working system in a systematic order. Along with, for
making modifications, they are needed to consider on some main points also as discussed
below:-
Strategy: To gain sustainability and large share in marketplace, managers should be
focused on building new strategies by keeping an eye on policies of competitors. In addition to
this, for implementation of the same, they should convince stakeholders and other investors of
Morrisons also, who can invest required funds for this company. It would help in carrying out
changes successfully through which this company can expand its business in a proper manner.

Operations: After making plan, managers are needed to execute it in appropriate manner
by using suitable tools and technologies (Gupta, 2011). It would assists in grabbing attention of
customers towards its products or services as well as retaining them for longer period of time.
TASK 2
P2 External and internal drivers of change that can have an effect on leadership, team and
individual behavior within organisation
Change manager is a person who helps the organization in choosing suitable tools that
can be optimized so as to get appropriate results (Fullan, 2014). Thus, technologies that are easy
to handle are introduced so that employees can understand and operate them in an effective
manner. Therefore, through this Morrison will able to generate more and more revenues that
company can use for implementing new and latest products. Changes that come in business can
be sometimes positive or negative what important is to optimize the best resources that can give
better results as per the market situations. Mainly, there are five types of drivers and these are
explained below so as to understand it in an effective manner:
Customer led drivers: In this, the needs and wants of customers are considered and
because of which company tries to manufacture goods according to the choices and preferences.
This enables Morrison in fulfilling all the demands of consumers as per the needs and wants.
Thus, it is necessary that firm accept all the modifications that come in the entire business
operations.
Technology led drivers: As the time passed, new and innovative technologies has
emerged that makes the life easier in context with humans. Therefore, it is helping organization
in manufacturing excellent goods at a very low cost. Thus, time and expenditure has been
minimized and it is the reason why now company is producing a large number of products in
limited time period (Komives, 2016).
Investor led drivers: For getting an effective result it is not possible for most of the
organisaiton that they invest a large amount of money by themselves. Therefore, company look
for investors or stakeholders who can spend some funds for getting an appropriate outcomes.

Thus, slowly and gradually it will enhance the brand image of the firm in front of their
customers.
Competitor led drivers: As per the current market scenario, many new enterprises had
emerged and they are giving tough fight to existing companies. Therefore, it has raise
competition in the market area. Thus, to cope up with these situations managers of Morrison
Company are making appropriate strategies and plan of action for achieving their set goals and
targets.
Government led drivers: This is considered as one of the effective factor without whom
company cannot run their business operations properly. So, all the rules and regulations that are
formulated by the regulatory bodies come under this. Therefore, a sudden change in economic as
well as political policies can hamper the entire process of company proceedings.
The internal and external key factors of Morrisons are discussed as below:
External Factor:
Political: Morrisons has incorporated its business with all legal rules and regulations in
order to carry out business in a smooth manner. These laws are formulated by UK Government
for preventing employees from discrimination. Political factors demand this firm to provide
healthy and nutrition food to people (Jones and Harris, 2014). Therefore, in this context, present
firm concern more on health of people which can be shown by its campaigning i.e. “take good
care of customers, employees and communities.
Economical: Inflation period of economy has impacted its business in a huge way. Along
with this, increasing rate of unemployment and taxation rate has forced Morrisons to reduce its
prices of commodities. Due to these reasons, this firm has failed in keeping the interest of
employees with products of company for a longer period of time.
Social: In UK marketplace, its citizens are facing many health problems due to obesity.
Therefore, people are moving towards organic products more (Komives, 2016). Due to this,
business of Morrisons has goes down at rapid rate.

Technological: Innovations in technologies help all business organizations in
manufacturing as well as providing products on time. In IT sector, invention of new chip and
PIN system help in carrying out various activities in a proper manner.
Internal Factors:
Strengths: Morrisons has largest portfolio in supermarket chain of UK. The main
strength of this firm is its wide range of products as well as technique used in delivering the
commodities as well. This association always incorporated its business with latest technologies
Weaknesses: As compared to other firms like TESCO, ALDI and M&S, this firm has less
number of outlets as well as limited geographical locations. These factors reflect its major
weaknesses in which this organisation needs to make improvements.
Opportunities: Growing business in organic food provides a great opportunity for this
company in grabbing the attention of customers towards its healthy items. Along with this,
launching business at global level also gives a chance to Morrisons to sales its commodities in
international market also (Lloyd, Boer and Voelpel, 2017). These processes will help in
improving the sales performance as well as giving a tough competition to other firms.
Threats: Presence of various competitors at same market place, creates a threat for
business of Morrisons. In addition to this, awareness of health factors also impacts on selling the
food products of this company.
P3 Measures to reduce negative impact of change on organizational behavior
It has been examined that there are ample number of issues that stay present while
adopting or considering changes by an organization (Jones and Harris, 2014). Therefore, it is
required for the company to keep on analyzing all the aspects and then utilize them in an
appropriate manner. With the help of this, enterprises can sustain at marketplace for a longer
period of time. Here, both managers and leaders need to keep on making developing new
strategies and plans that may aid in adopting alterations right on time. By this, firm can give
good rivalry to its competitors. It has been analyzed that employees of an organization can make
or break a firm. Thus, their behavior sets organizational behavior and its reputation as well in

front of society. In order to build a proper and healthy environment within a firm there are some
elements which needs to be considered by managers and leaders which are as follows:
Creation of Pathway: It is very much required for managers and leaders of Morrison's to
convey all the future plans that organization have. With the help of this, firm can maintain their
reputation among employees and other staff members. Along with this, loyalty can also be
improvised of them in short period of time. Away with this, proper guidance should also be
given to workers which may aid them in hitting their own targets in much effective and
appropriate way.
Explain about the Plans: It has been analysed that employees do plays an important role
for Morrison's when it comes to attaining all the desired goals right on time (Lawrence, 2015). It
is very much required for managers to deliver all the information that they have in order to make
employees understand about their own responsibilities.
Conducting meeting and seminars: Training and development programs should rapidly
be given to staff members so that they can deliver proper services to consumers according to
their requirements. With the help of this, employees of different culture get to know about their
perspectives and way of working. Group discussions, suggestion giving and taking process are
some of examples which can be considered as main points under this.
Bruke Litwin Model: This sort of approach is mostly being used by ample number of
organizations that are present at marketplace of UK. It has been located that firm mostly starts
hitting their targets in effective manner through adopting this model and running it (Hillson and
Murray-Webster, 2017). By this model managing of people within an organization can be done
in a proper manner. Some of phases under this model where top most are very important and
then least are being considered as least important and these are given beneath:
External environment: Political, social, environmental, legal, economical, technological
are some sort of elements which can put impact on Morrison's while bringing in changes at
working area. Therefore, it is much required for this organization to consider these elements are
most important and take initiatives to reduce risk that are related to these factors.

TASK 3
P4 Different barriers for change and how it influence leadership and decision making
Different types of functions are performed by an enterprise to better satisfy the needs of its
customers and attain its set business objective. Large number of employees are working in an
enterprise and perform various roles so company can offer featured products to its target market.
Leaders and managers play a big role in success of enterprise as these are the one who guide and
encourage employees to perform well at workplace. These are the one who motivate employees
to accept change (Painter and Clark, 2015). Whenever a firm introduce any kind of change at
workplace then it face various problems and issues and from which cultural barrier is known as
one of the most common barrier and this require to be deal in an effective manner as this create
problem in communication process.
 Perception of self efficiency and resistance to change: Change is assumed to be good
when it provide positive results to entity. It is very essential for an entity to introduce
change at workplace on continuous basis so that negative elements can be deal in an
effective manner and entity can attain desired outcomes. To plan change, it is very
essential to manager to identify the skills of employees so entity can formulate an
effective change plan. This is very costly and time consuming process that’s why various
managers avoid this step and assign roles and responsibilities to employees as per their
knowledge.
 Force field analysis: This is known as one of the most effective theory for change
management. This was given by Kurt Lewin, under this he encourage acceptance of
changes with help of force field model which support leaders in take right decisions and
provide basis to deal with all issues and problems in an effective manner. This model
consists five stages as given in the following points:
Phase 1: This is the first phase, under this the main focus of remain to use right tools and
methods as per the situations exist in market. This helps entity in get maximum benefits of
change and increase sales of company’s product.
Phase 2: Risk is known as an inevitable element of every change and this requires to
effectively examined by entity before launch its product in market. All these help manager in
formulate effective strategy to manage risk and help in maintain a positive image in market.

Phase 3: In this step changes are identified by firm for introduce necessary changes which
increase sales of company’s product.
Phase 4: Under this manager determine the sequence of steps to perform the task in an
effective manner (Van der Voet, Kuipers and Groeneveld, 2015).
Phase 5: This is the last step, strategy adopted by entity is evaluated by manager to find its
suitability and if current strategy is not appropriate then further changes are done by manager.
Situational resistance to change: Firms use this approach to ensure completion of business
activities in time. One of the main benefits of this is that it help in attainment of short term
objectives which contribute in success of entity.
TASK 4
P5 Various leadership approaches to deal with the changes
Leaders play a big role in an enterprise as these monitor employee’s actions and at the same
time provide them direction to work effectively. All this increase effectiveness of business
activities and help firm in get a competitive place at workplace. Various approaches are use by
Morrisons to deal with various type of changes. A model called Hershey Blanchard Model is use
by entity that define four kind of situations for influence change at workplace. Mainly this type
of leadership style is related with relationship and task behavior in this leader guide employees to
perform their roles. With use of this model Morrisons can manage the performance of its workers
and at the same time can achieve desired results.
 Directing: In this style, all roles and responsibilities of employees is define by leader in
front of them. One way communication take place under this approach in which leader
direct employees to complete business operations (Alavi and Gill, 2017). All this enhance
productivity of workers and help in deal with all factors of change in an effective manner.
 Coaching: This is another style of leadership, two ways communication takes place in
this step. Leaders provide proper direction to employees which help them in dealing with
the changes and all this support entity in achieve its end goals.
 Supporting: Under this style of leadership, leader and employees both take part in
decision making process. One of the main benefits of this is that it enhances employee’s
morale to work well.

 Delegating: In this style of leadership, leaders pass role and responsibilities to all
members of team. Every process and method is monitor by leader to ensure effective
completion of business operations.
All these are the major styles of leadership that support Morrisons to respond towards change
in an effective manner and at the same time help in deal with negative factors.
CONCLUSION
From this assignment it has examined that changes are necessary in every aspect of an
organisation. It has helped in expanding business in other locations easily as well as producing
more effective products at marketplace. In addition to this, it has summarized that for
understanding and leading change, managers are required to analyze various components like
key drivers, external and internal factors etc. They are required to evaluate the barriers which
come in implementation of changes in business organisation.

REFERENCES
Books and Journals
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follower responses to complex change. Journal of Leadership & Organizational Studies.
24(2). pp.157-171.
Anderson, D. L., 2016. Organization development: The process of leading organizational
change. Sage Publications.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
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development. International Journal of Information, Business and Management. 7(3).
p.71.
Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Gupta, P., 2011. Leading innovation change-The Kotter way. International Journal of Innovation
Science. 3(3). pp.141-150.
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Change Management. 27(3). pp.473-485.
Komives, S. R., 2016. Leadership for a better world: Understanding the social change model of
leadership development. John Wiley & Sons.
Lawrence, P., 2015. Leading change–Insights into how leaders actually approach the challenge
of complexity. Journal of Change Management. 15(3). pp.231-252.
Lloyd, K. J., Boer, D. and Voelpel, S. C., 2017. From listening to leading: Toward an
understanding of supervisor listening within the framework of leader-member exchange
theory. International Journal of Business Communication, 54(4), pp.431-451.
Painter, S. and Clark, C. M., 2015. Leading change: Faculty development through structured
collaboration. International Journal of Doctoral Studies. 10. pp.187-198.
Van der Voet, J., Kuipers, B. and Groeneveld, S., 2015. Held back and pushed forward: leading
change in a complex public sector environment. Journal of Organizational Change
Management. 28(2). pp.290-300.