Leading and Managing Change in Organizations: Challenges and Strategies

This document discusses the challenges faced by HR departments in implementing change and the strategic approaches to deal with them. It explores the impact of external factors on business and the role of human resource support in planned or unplanned change.

Leading and Managing
change

Contents
INTRODUCTION.................................................................................................................................3
Changes according to present scenario, need of planned or unplanned approach..............................3
Evaluation of Human resource support planned or unplanned approach of change along with
business strategy and external factors impacting on business............................................................5
Challenges for HR department and strategic approaches to deal with such challenges......................7
CONCLUSION...................................................................................................................................11
REFERNCES......................................................................................................................................12

INTRODUCTION
Change is a part of every organisation and is affecting the functioning and their
management, change is the part of every organsuiation and it has to be handled in the cost
effective manner so that there is not much negative impact on the regular functioning of
organisation. In present case of UK Leaving European union, there are lot of issues and
negative impact that is being faced by organisations (Akka, . and Khaber, 2018). For
supporting this change there is requirement to handle all the uncertainties so that risk can be
minimised. In the present report there is discussion of TESCO as a retail giant that is having
its headquarters in England, UK. It is the third largest retailer across world that is being
measured by the gross revenue. There is discussion of the challenges that are part of the
organisation and various economic factors that are prevailing externally for the organisation
and the role played by the HR department in implementation of such changes with the use of
certain strategies and dealing in with the challenges faced with implementation of such
change in organisation.
Changes according to present scenario, need of planned or unplanned approach
There are many businesses that are willing to make adjustments according to the
external factors that are part of the external environment. Present case of UK leaving the
European Union is a continuous which will involve lot of change in the organisation as the
external environment is full of uncertainty (Boehe, 2016). There is need of and the main role
in this case is played by the Human Resource Department of the organisation. Human
Resource Department has the responsibility of managing overall workforce and for this they
are required to use some of the planned and unplanned approaches according to their
organisation overall feasibility.
Operational changes:
These are the changes that are associated with the changes that take place in the
operations and way operations are being done in a particular organisation. In present case of
there are changes that will occur because of leaving the European Union in form of distance
that has to be used for opening of their outlets. Tesco will like to approach those locations
where there has been presence of this brand (Crowleyand Jordan, 2017). There will be more
focused on the E-commerce website of the brand so that they are able to approach their
customers with the help of online mediums rather than physical store. There are many

businesses that are willing to make adjustments according to the external factors that are part
of the external environment. Present case of UK leaving the European Union is a continuous
which will involve lot of change in the organisation as the external environment is full of
uncertainty. There is need of and the main role in this case is played by the Human Resource
Department of the organisation. Human Resource Department has the responsibility of
managing overall workforce and for this they are required to use some of the planned and
unplanned approaches according to their organisation overall feasibility.
Strategic change:
It is a process that is related with the take place in the mission vision culture process of the
overall organisation and is impacting their internal functioning. In case of Tesco, it is going
to lead towards achievement of their vision apart from the challenges that are been happening
in the external environment. There are certain guidelines that have been set for the new
equality that are more better the changes can be dealt with more preparation by the
organisation. Strategic changes mainly related when the overall changes in structure of the
strategy takes place in the organisation. When there is scenario of UK leaving itself from
European Union then there are going to be a lot of changes to be managed by the
organisation.
Strategic and operational importance of change:
Strategic change is a process that occurs in respect of shifts and changes that happen because
of the culture, mission and vision of a business organisation (Deshler, 2016). On the other
part, operational change is related to the initiates that are related with the way employees are
working and making efforts for implementation of changes. Such as in case of UK leaving
the EU there will be changes that are going to impact the overall internal functioning of
Tesco.
Planned and unplanned changes:
Planned change takes place in an organisation when they have to make some decisions that
are anticipated and to reduce the negative impact there is requirement of forecasting the
opportunities or threats associated with such changes (Gautam, and Sharma, 2017). The

external environment of every business is full of uncertainties and business organisation has
to make adjustments according to such changes so that their revenue and profitability does
not get affected. So, it can be said that there is requirement of lot of planned strategies that
can help in successful implementation of all the changes.
Evaluation of Human resource support planned or unplanned approach of change along with
business strategy and external factors impacting on business
Change is necessary in today’s as it has both positive as well as negative impact on the
performance of the organisation. It is important for an organisation to make changes in the
strategies and processes by considering internal and external factors in a proper manner. in
addition to this, change is important for an organisation in order to gain success and retain in
market for longer time frame. It is analysed that HR management support planned approach
as the company forecast about the changes that take place in UK after the leaving of
European union. For this, it is beneficial for organisation to developed effective strategies and
use planned approach that help in dealing with such consequences in an effective manner.
The business strategy and external factors has influence of business performance and also
assist an entity to gain insight regarding the factors that majorly impact along with the
solution to deal with such changes. In order to gain insight regarding external factors, the
managers of TESCO adopt PESTLE analysis, which is discuss below:
PESTLE Analysis: It is a framework that is adopted by company in order to again
knowledge about macro environmental factors impacting on business performance. This
framework includes six factors that is given below in relation to company:
Political factors: This factor include political instability, economic condition, current
legislation, tax rates, unemployment rate and so on. It is determine that UK is politically
stable, which is beneficial for the company. In relation to company, it is operating in more
than 12 countries including Europe and Asia. It is determine that Europeans reffendrum is a
major risk factor as the British Economy is going through hard times. For instance, Import
duty on products might impact Tesco as it imports raw material from outside United
Kingdom such as East Asia and China as well.
Economic factors: One of the significant economic factor that has high influence on
United Kingdom supermarket is Labor cost. In addition to this, there are also other factors
which impact Tesco performance is Price profits, cost, income level and many more. After
the Brexit, the inflation rate is decline that has directly impact on the buying capacity of

people living in the country. The Purchasing power of people is decline that has negative
influence on profitability and market share of company.
Social factors: It include trends, value, opinions, belief, customs of people living in the
country. In relation to Tesco, its mangers identify market trends and customer requirements
in order to meet with their needs as it help company to enhance their sales as well as
profitability level. For example, the customers are nowadays concerned more about their
health and for this, company is planning to offering organic food in market.
Technological factor: Technology is changing rapidly and impact on the overall
buying behaviour of people. In relation to Tesco, it adopt advanced technology in order to
offer quick and on-time deliver to customers. Change in the technology impact on the overall
profit as it is required to adopt advanced technology in order to gain success at marketplace.
Legal factor: The higher authorities of Tesco follow all the legislation in order to
implement out all the activities in a smooth and effective manner (Shah, Irani and Sharif,
2017). change in the laws and legislation made by the government affecting company as it
occur cost and consume time due to which productivity and profitability might be declined of
Tesco.
Environmental factor: Nowadays, most of the people is using those product and
service that does not harm the environment. With reference to Tesco, it uses bi0degradable
packaging and decline the use of paper for maintain records. It help company to save
environment and develop positive image in mind of customers as well as in market.
Ansoff Matrix
It is a tool that help managers or higher authorities to determine future growth in an
effective manner. Ansoff matrix include four major business strategy that is Market
penetration, diversification, product development and market development as well. All this
strategies is define below in relation to chosen company.
Market penetration: Herein, the existing product of company is offered into the
same market, in which the company deal. The organisation can make use of promotional
tools in order to awrae more number of people within the existing market in order to enhance
their customer base level and profitability.

Product development: In this strategy, the company produce new product and offer
it into the existing market. It include some modifications in the old product or intreoduction
of new produt. This strategy hep company to attract more number of customers and increase
their product performance as well as profitability.
Market development: In this strategy, the company target the new market by its
existing product as it help company to enhance their customer base level. It impact positively
on the profitability but also impact negatively, if the product is getting failed in new market.
Diversification: In this strategy, a company offer new product into the new market
with an aim to enhance their market share and profits as well. It is consider as a risky strategy
as the people are not aware about new product and the organisation did not have more
knowledge about requirements and trends of new market.
From the above discussion, it is determine that one of the best strategy for Tesco is
Market development strategy as it help them to attract more number of customers and
increase profitability. In addition to this, Tesco is planning to bring and offering organic food
in market according to the changes take place in market.
Challenges for HR department and strategic approaches to deal with such challenges.
HR department of every organisation has the overall responsibility of making changes
in the policies and framework that will lead towards management of such changes in for m of
administration and the personnel management of the industry such changes can be related
with lot of challenges that are occurring for the human resource department of the
organisation.
Key areas of Individual and organisational resistance to change
Lewin’s model of organisational change: Lewin’s model of organisational change
that changes are part of the organisation that take place between that is result of the static
States (Harrison, 2018). There are three changes that are discussed in this model that helps
Organisation in implementing and then further offset change in a better manner.
First stage: It is the first or initial position of the organisation where no changes that have

been happened an organisation is running normally (Ivanova, . and Suchkova, ., 2016). So
there is an environment and form of UK leaving the European Union it will lead to new
changes that have to be adopted in the organisation. There is going to be new recruitments
that has to be made or change in the functioning maybe there will be some structural and
functional changes adopted by the organisation in order to deal with the high amount of
workload or strategies have to be formed by the marketing department to promote their brand
in a more creative a unique manner to deal with the high amount of competition that is
resulting out of new start ups that are being bring into the Retail Industry.
Changing stage: This is the stage where actually there has to be the change that has been
decided in the first days has to be finally implemented by the organisation. Such as in there
will be new recruitment for the new vacant positions that have been raised. Performance
Development Plan will be prepared for the existing employees to enhance their present level
of skill and potential so that they can contribute more towards acceptance of change (Shah,
Irani and Sharif, 2017). Whether there will be new strategies form search of alternative that
are part of external market and are present in form of certain attractive opportunities to
persuade the customers. All search strategies will be aimed at action of the risk uncertainty
that is present in the external environment and maximization of the possibilities of
maintaining the present revenue such external uncertain environment.
Freezing stage: This is the stage where the changes that have been plant in the second stage
have to be finally brought in the functioning of organisation and this stage is re freeze so that
there can be no further changes that can be done at this point of time. This is a most important
stage as it is actually the result of the overall plants changes that are positive or negative and
can lead to similar type of impact on the organisation.
Challenges from change:
There are some challenges that can be faced by a organisation by the human resource
department while they are planning to impellent the overall procedure by the process of
change discussed below:
Resistance to change: Each employee who is working in different functional departments is
not willing to adopt some changes (Ramankutty. and Pujar, 2017). There is a very high threat
that is related with the present atmosphere. There is a bog challenges for the human resource

department and for various leaders to deal with the amount of resistance that is shown by the
overall workforce.
Lack of employee reliability: there are some new strategies and plans that are related with
increased pressure on the employees because of increase in the responsibilities. So there must
be adequate efforts made in order to deal with the employee reliability by the human resource
department of Tesco (Managing and communicating change, 2020). Also, techniques such as
employee engagement can be used with this regard in order to deal with the challenges
associated with the employee reliability.
Issues related to salary and compensation: there are many issues that are related with the
issues of compensation that might occur (Phillips, ., 2016). Because are many times issues
such as monetary compensation arise for employees because they might feel that there are
increase in responsibilities and for this they need to be paid more. So, to deal with the
alignment of individual employees objectives with the objectives of the organisation that is to
minimise the cost and maximization of revenue.
Contingency theory of leadership:
Contingency theory of leadership is related to the personality of leader in the organisation
(McGuinness, and Cronin, ., 2016). Such as in case of Tesco, fielder’s theory of contingency
can be used by as discussed below:
There are two major styles of leadership that can be adopted such as
Task motivated style: in this style: of leadership there is use of the overall work and task
that has to be used by the leaders in this the changes that have been done in the overall
responsibility for the employees have to be taken care of in order to motivate them to adopt
the positions with more roles and increased responsibilities. There can be use of techniques
such as monetary or non monetary motivational measures for the purpose of motivating their
workforce.
Relationship motivated model: It is a model that is in relation with the use of interpersonal
relationship as a technique to mage the workforce (Madlock, ., 2018). There can be situations
of high resistance because of large number of changes that are taking place across the
organisation. So, there is a requirement to deal with these challenges in such by use of the

relationship approaches. Here has to be leader and member relations that have to be created to
increase the trust, confidence and loyalty of employees.
Above discussed are some of the aspects of fielder’s contingency theory that can be used by a
organisation for the purpose of reduction of employees resistance in such a way that there is
no impact on the overall contribution made towards performing their responsibilities and
duties (Laine, 2018).
Strategies of human resource department to deal with the challenges:
There are three basic elements that are part of the environment, leaders and overall
subordinates, the most important elements are three components that have to be used for
purpose of use as a strategic approach for management of employees and reduce their higher
level of resistance:
 The main responsibility of the manager and leader is to make adequate efforts for
creating a working environment that makes employees easy to deal with the
challenges and accept such challenges.
 Managers have to identify some potential of their employees so that they can apply
them effectively for the organisation.
 There is requirement of overall workforce for achievement of some laid down
objectives for achievement of objectives with newly implemented changes.

CONCLUSION
From the above report it can be said that changes are a part of every organisation and
that have to be managed in such a manner there are no impact on the achievement of overall
objectives and vision mission of the organisation. Important part and role is played by the
human Resource Department of the organisation to deal with overall challenges that are
associated with such implementation of changes. Resistance to change is one of the major
challenges that are related to adoption of changes and employees have to make efforts deal
with such negative attitude of force and change it into positive so that they are able to the
changes positive opportunities.

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Online
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