Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1 Comparison of two firms where changes have impacted on organisational strategy and operation......................................................................................................................................1 TASK 2............................................................................................................................................3 P2. Evaluation of ways in which internal and external drivers of change affect leadership, team and individual behaviours..................................................................................................3 P3 Analysis measures and reduce negative effects of changes on organisational behaviour.....5 TASK 3............................................................................................................................................7 P4 Various barriers of changes and examine leadership decision making.................................7 P5 Various dealership approaches conducting with change in range in Sports direct................8 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Organizationalchangesisaprocedurewhereapplychangesinanorganization's approaches, technologies, system and culture. There is analysed the impact of changes in business and according to that take effective steps to get success in business. These changes are important for business and supports to all staff members to increase their learning skills, explore new opportunities and practise with new creativity in order to get ultimate benefits and generate new ideas and increased commitment(Blanchard, 2018).. To continue operate business activities as a leading manner require to apply new effective ideas that help to connect with customer otherwise it shows negative impact on the business. To better understand of the report analysis both case studies of Sports Direct Rescues Jack wills and Fashion Chain. These enterprises offering about 1800 jobs at 169 stores in United Kingdom. They are accepting changes to see impact and use it to attract people to purchase their products and services. This report consist of different drivers of changes that impact on the business, conduct PEST/SWOT analysis to recognise changing drivers. Along with, examine impact of changes on leadership, individuals and team behaviour and reduce application of selected models. Moreover discuss about the leadership approaches which supports to deal with the problems and take effective decision. TASK 1 P1 Comparison of two firms where changes have impacted on organisational strategy and operation Overview of case study Sports Direct rescues jack wills: The owner of this organisation, Mike Ashley which has bought fashion firm Jack Wills out of administration. There are working about 1700 people and open 100 stores in United Kingdom. The company have six franchisee where consist of middle east and offer those products that make happy to people. The company has been applied changes in its business and become part of new division within sports direct that supports to enhance the fashion as well as sports brand and neglect financial travails. There are applied various type of strategies and policies are altered by them to supply best quality goods & services. House of Fraser: It is also operated by Mike Ashley and wants to invest amount in seven of house of fraser plus stores enter into new luxury mini chain. If organisation apply all appropriate changes in operations so become leading company and cover large market. 1
In modern time, business environment change randomly that impact on the business so for this require to prepare for changes. Some changes are increasing operation and efficiency of an organisation to accept all challenges. If any person start business at small level but after apply all positive changes and making efforts to carry out changes in the business entity. As a result it increases productivity and profitability. Sports direct and House of Fraser are accepting changes in their operations, process and strategies which impact on business(Clark and et. Al, 2017). ChangesSports Direct rescues Jack WillsFashion Chain House of Fraser OperationMikeAshleywantstoexpand organisationalactivitiesatbroad mannerinsportsandfashion brand.Forthisapplysuitable changes and smoothly run all the business activities. Toexpandthebusinessthe managementinvestamount£90 millioninAugustthrough categorisedFrasersstockingwith effective designing labels to cover morecustomersattheparticular market place. StrategicStrategies are applied in business accordingtostructureandthese are decidingthe management to apply changes. For this modify the changesinexistingprocessand increase efficiency. As a result it provides higher profits in certain period of time. With the help of effective strategies and approaches concentrate on all thealternativesfrominvestment point of view. For this require to select right strategies that enhance sales of a business. StructuralThisorganisationfollowflat structurethatsupportstoapply positivechangesasperthe requirement(Tirmizi, 2017). It is applied matrix organisational structurethathelpstodealwith variousproblemsandgenerate profitmargin.Suchbusinesshas updated the department stores and utilising IT system in order to cut the warehousing cost effectively. 2
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There are discussed about some changes of two different companies that wants to increase their operational activities and apply changes as per the market trends. These are showing impact that can be analysed by the Bohner and Arnold that is responsible for recognition of future circumstances that linked with changes and forecast with alteration that carried out for changes. TASK 2 P2. Evaluation of ways in which internal and external drivers of change affect leadership, team and individual behaviours Organisational behaviour changes defined as the modification in structure, system, technology or people in a business or behaviour. There are consisting of internal and external factors that impact on the leadership, team and individual behaviour by changing procedure. Hence, it is essential for business entity to concentrate on the production activities effectively. In the context of given case study Sports Direct and jack Wills has created plan to enhance the performance of entity through investment in fashion and merging with Jack will to cover market and attract audiences(Di Costa, 2016). In addition, after accept the these changes require to examine all internal and external drivers of business such as: External Driver There are consisting of all those factors that impact on the business in external manner these are:Political: In this factor consisting of all political activities, government rules and regulations which is essential and adopt by every type of organisation otherwise in negligence face many problems. Such as Sports Direct is leading organisation which is applying changes in business so according to that analysis all the political activities in favourable or not. When government apply any changes so according to that business apply all appropriate changes in business activities.Economical: This factor related with the changes in inflation and interest rate in UK and impact on the expansion on the business. Sports direct wants to set up new market that impact positively on the production as well as on sales. It also supports to enhance brand image and share of market of sports Direct. 3
Social: Every person have own taste and according to that like food, products and any other things. Taste & preferences of people changes according to interest and trends. Such as Sports direct apply new ideas for innovation and fulfil the demand of customer. Therefore, business operations has been increased and linked with the Jack Wills fashion brand(Shaw, 2017).Technological: In present time organisations follow new advanced technology for new innovation which helps to cover large market. These are using to advertise products so this factor impact on the sports direct in good manner. The demand of products has been increased that impact on related things like sales and profitability. Internal Drivers These factors related to internal things and impact on inner activities that related in direct manner. StrengthWeakness Sports direct is famous brand at market place and offer quality food in existing place. Itismergingwiththesamelevel organisation that become strength for company. Apply savvy picture strategy that hits the mark with consumer, therefore help in increment of credibility(Dick and et. Al, 2018). 24hrs.presentonlinedeliverythat provideseffectiveservicesto customers. Sports direct is facing high competition in the market. Slow growth rate and high attrition rate and spend more on training. The company generate low margin that creates doubt about future profitability. It is competitive industry so it is not easy to handle all the challenges to tap into new segment. OpportunitiesThreats InthecontextofEuropeanZoneis rumbling with economic problems but organizationgetopportunityto Increasingcostofrawmaterialcan impactontheprofitmargin,since business conduct at low profit margin. 4
establish store in Eastern and western. Duetofollowassertivestrategyin accomplishing brands crosswise Europe thatofferopportunitytomeetwith differentcustomersegments(Rintoul and Bishop, 2019). Improvementindigitaltechnology become reason of technological issues. Changing policy in tax shows negative impact on the functioning. Effects of strategic management: Strategic management implies that the executive team should guide the efforts of the staff through achieving particular objectives and planning processes. Withouttacticalplanning,thedecisiontakingwillbeincremental,whichcan contribute to wrong decisions. One such function is the strategic effect. As the title implies, strategic effect reflects the extent at which a future project-related risk impacts one some or all of the strategic goals of the organization or priorities. It impact on the Sports direct in positive manner to set effective strategies. Work force planning: Resource planning is the procedure of evaluating, predicting and preparing market dynamics for the workplace, identifying needs and defining integrated talent management strategy to achieve that a company has sufficient people-with the appropriate qualificationin the right spot at the right moment-to meet its mission. P3 Analysis measures and reduce negative effects of changes on organisational behaviour Organisational behaviour is defined by values, culture, beliefs and preferences that increase productivity and profitability of business. It is effected by the several king of changes in positive or negative way. For this apply different measurement strategy by Sports Direct to reduce cost and negative impact of changes in organisation behaviour. In the context of Sports Direct is suffering from the issues due to apply changes and after merger open all policies with new idea. For this company use system theory as well as Burk litwen Model to deduct adverse impact of changes such as: System theory: It is knowledge base theory which is related with the complex system within nature, science and society. System approach applied by organisation to lead and emphasises on basis of outcomes and reduce unwanted cost and expenditure that arise in the business. Such as Sports direct applied this theory to carry out all appropriate changes. With the help of this theory apply all relevant changes and take respond. Therefore, it works to increasing 5
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sales and production in proper framework and reply according to changes(Dickinson, H. and Carey, 2016). Burke Litwen model: This model apply by the business for changes and set up a reason that impact on the relationship. The model derives from two organisational change consultants and introduced in 60's by Warner Burke. Sports Direct apply this model that provide importance of rant. According to this model followed these factors such as:External environment: There are consisting of external things like competition, market, legislation and economy that affects on individual behaviour, organisation as well as team. To expand its business activities, Sports Direct concentrate on regulations and conduct changes in new market which supports to business effectively. Such as critical factors was effecting on Sports Direct in order to connect with the Jack Wills and suffer from challenges like financial crisis.Mission and strategy: The mission and strategy set by organisation according to business structure due to become leading organisation at global level by trucking different products as well as services. According to changes prepare different strategies and apply in the organisation.Leadership: To complete task on time the leaders of Sports direct behave in good manner with all staff members. Therefore, apply changes effectively and present all the activities appropriately.Organisational Culture: The culture of the business change according to changes that shows in positive or negative manner. According to changes company take further steps to create good value for the firm(Ferrari and et. al, 2018).Structure: The company applied flat structure where dealing with every problem that arise in the business and through this structure modify relation in between staff members, managers and others to present all tasks effectively.Management practices:There are consisting of different elements and behaviour that was carried out by administration and set aims to execute all related approaches. Sports direct responsible to connect with new strategies and and assure about the staff members.Work unit climate: Such as Sports direct is working in unity and take suggestions from all staff members regarding to new ideas. Hence, they feel important and accepting changing procedure easily to make profit margin collectively. 6
Task requirements and personal skills: The management of sports direct carry out appropriate changes at greater level to enhance the business activities. According to task improve skills of individual and classifying task to increase production level.Individualneedandvalue:Theselectedcompanyconcentrateoneverypeople requirement and wants so it will work in positive manner and accepting changes to take right decision on right time.Staff member encouragement: It is required to apply changes in the business encourage all staff members and define benefits that achieve by company as well as workers. As a result they are easily accept al the changes. For this leader of Sports cafe play essential role and prepare every one to accept changes to improve production and profit margin (Ghavifekr, Afshari, Siraj and Razak, 2017). Individual & general performance: There are involving various performance levels of a person at organisational level. It is measured by the business through productivity, customer satisfaction, necessities and many other things. TASK 3 P4 Various barriers of changes and examine leadership decision making Change is essential feature which is applying by each business entity in order to attract customers and cover large market with the help of leader and staff members to assure about the services that provided by the business. Such as, Sports direct has been recognised different numbers of aspects that acts as a barrier due to apply changes. There are identifying different barriers that face by the business underneath: Improper communication: It is one of the important strategy that impact on the experience of a business due to bringing out modification within organisational premises. In regard of extensive coordination route map by leader of Sports Direct influence of making out modification within staff members. Many times it is seeing that administration can not be coordinated with staff members. As a result it impact on morale and apply changes that are brought out in day to day activities(Hylton and et. al, 2016). The barriers arise through this strategy that it effect on leader of Sports Direct and dealing with these. For this required to utilise all-inclusive coordinated strategies for transferring 7
data to employees of an entity. It will help to have an edge in regard of changes within strategical & process changes. Lack of employee engagement:When company apply changes without inform any staff member so it create problem for the business. Because workers are and engage with the changes strategies and hence business must face all the information in order to able and apply all the changes in assumption. In the context of Sports Direct, it is recognised that major point of staff members setin limits and according to that applied of planned modification without any direction and observation of a leader. When initiatives are not taking steps for these changes so employees are not involve in the each activity that shows negative impact on the business. This barrier shows impact on the leadership with particular information where all the staff members linked with the changes in Sports Direct. Moreover, the leaders require to supply monetary and non monetary rewards to individual that based on their performance and make effort within application of changes in entity. Additionally, training has to be appointed to their staff members that will enhance knowledge in this perspective. As per the above mentioned barrier to develop a affiliated determinant on modification and decision making of a leader in the context of Sports direct(Paterson, Pill and Bell, 2017). Force field analysis: It is applied by business for change management and activity to acknowledge all the changes in systematic procedure that bring out by firm. These factors are defined in broad manner such as:Facilitating factors: This element defined as facets that linked with the atmosphere of an organisation and provide all facilities for changes. There are consisting of procedure of businessandoutdatedmachinecanreducemoraleofstaffmembers,teamswith preferences of users and different others. Such as Sports Direct to apply changes carry out all the strategical changes within different approaches of an organisation. It will aid within corporate changes with articular policies. Restraining factors: This factor related with the business environment and acts as a barrier as per the application of changes. These are involving all types of modifications within UK government legislation, staff member action etc. In case on Sports direct, it is analysed that restraining factor for both the modification are failure to analysis interactive approaches and staff activity. These are operated by formulating after providing training to staff members and usage of extended interactive methods. 8
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P5 Various dealership approaches conducting with change in range in Sports direct The main perspective of adopting particular leadership style is to significantly carry out the day to day functioning of an organisation. It offers the direction and help to implement plans that motivate personnel in order to execute the task by maintaining better coordination. There are various leadership approaches like Autocratic, Participative and so on(Riley-Reid, 2018). Amongst this the explanation of Situational leadership style in context to Sports direct is determined below: Situational leadership styleencompasses way by which leader adjust or changes its prevailing leadership style on the basis of external situation. Precaution are made in order to choose the style that can suitably fit the circumstances. Most of the successful organisation takes informed decision in order to maintain the relationship with follower by effectively analysing external situation. This style can be adopt by Sport direct company where instead of giving focus to the particular leadership style importance is given on the challenging situation and according strategy and approaches are adopted. Thus, this is the flexible style that helps to contribute in organisational success(Peoples, Wæhrens. and la Cour, 2017).This approach helps to Sports direct to achieve all the success in future and analysis all the activities in appropriate manner. Initiating changes Change management involve the support and skills of the leader as well as employees in terms to successfully adopt the innovative changes in order to cope up with the dynamic situation. Such driving factor probably hjelps to gain the productive outcome that directly leads to the organisational success. During the time of changes leader have more control as they guide the process based on which changes need to bebought up. This helps to exploit the untapped opportunity and can help respective company to gain better position. Kotter’s Change model:To build up changes there exist 8 stages that are explained below: Creates Urgency:Within this stage the organisation realise the necessity to adopt the changes in order to sort out their problem and remain competitive. Form a powerful Coalition:It involve preparation of team that have similar range of expertise and knowledge based on which messages are transmitted in context to changes. Createvision forchange:Organisationgenerallyprepare vision that transmitthe procedure and help in better understanding of roles. 9
Communicate the vision:For better support, the leader and manger communicate the meaning of vision with personnel in order to promote their interest. Remove obstacles:While taking initiatives the objective of overall staff is to mitigate the obstacles and attain success. Create short term wins:It represent the preparation of small target for which rewards are offered in order to maximise the potential of staff. Build changes:The main aim of this stage is to sustain the changes for continuous improvement. Anchor the changes: Changesneed to be the part of an organisation in order to promote the routine activities(Poremski and et. Al, 2016). Lewin’s change management model:This model comprises of the three stages that is Unfreeze, change and Refreeze that help to bring the transition. Under unfreeze the manager of Direct Sports makes the staff understand regarding the significance of change in order to cope up with external dynamic situation. All the redresses of employee are resolve at this stage after which come change where new regimes are followed and the leaders make sure that the personnel does not get back to the normal state within Refreeze stage. This probably helps to improve the business processes. CONCLUSION As per the above discussion it has been concluded that change is important factors that supports any business to stay on top with some terms & condition. To apply changes n the business focus on every factors that related with it and apply different strategies to easily implement changes according to structure of business. When a company merge with other company so according to that apply new legislation and follow all aspects in proper manner. The main reason of these changes drivers are liable for raising in modification within operation by which overall performance can be increased as per the requirement and interest of customer. To implement these changes in infectious way.There are applied Burke lewin model and system theory to analysis changes and their impact. Along with apply Kurt lewin model to deduct Pessimistic impacts. 10
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