Leading and Managing Change

LEADING AND
MANAGING CHANGE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Change is basically the process which eventually results in the change of various
processes, systems, practices etc within an organization and thus impacts its operations in great
way. This change in the organization usually occurs as the result of some internal as well as
external factors. TESCO is predominately the multinational groceries as well as general
merchandise which is being established in 1919 by Jack Cohen and headquartered in England,
UK. It primarily deals in superstores, banks, petrol stations, club cards etc.
This report gives a brief about extent to which organization should change according to
current economic climate, Selection of planned or unplanned approach for going forward, Ways
in which HR support planned change approach, Major challenges for HR and strategic
approaches for HR to handle change.
MAIN BODY
Extent to which organization should change according to current economic climate
Due to the impact of Brexit, there has been the drastic change in the economic conditions
of UK which has led to the decline in various activities. The economic growth of UK has slowed
down since its departure from European Union and thus has resulted in dramatically change in
various factors. The transformation has affected the overall society but the deepest impact has
been on organizations. TESCO is one of the well known organizations which have been affected
to a large due to these changing conditions. TESCO needs to adapt their operations and activities
according to this current change in order to survive and establish its name in wider geographies.
Due to the impact of Brexit, the corporation tax rate in UK has fallen down to 17% and thus has
likely impacted the custom duty as well as value added tax. TESCO would need to alter their
trading system in accordance with this change. TESCO should change the import and export of
their products and services across the world and thus adapt to the new tax policy as this would
eventually reduce their rate at which they pay taxes (Doppel, 2017).
Besides this, since the emergence of Brexit, the unemployment rate in UK has increased
to more than 41.2% which means there are high numbers of people which are still unemployed.

In context to this, TESCO must need to change their policies of recruitment and selection. They
should focus more on outsourcing the talented employees from different countries and states.
Thus they must change their practices and thus also should focus on retaining the older
employees in their organization for maintain its position. One more impact which Brexit has
projected on the economic conditions of UK is the rise in interest rate. Because of the prevalence
of uncertainty of Brexit, the interest rate has raised to more than 0.75%. TESCO should in order
to gain the competitive advantage and survive in this cut-throat competition should adapt to this
change and thus should look for various way for dealing with it. As due to high interest rate,
TESCO would need to pay high amount of their earning for paying the interest thus this would
eventually reduce their profit. Thus, TESCO must find alternatives from where they can arrange
necessary money when needed (Rothaermel, 2017). The company should find various other
borrowers like angel investors who will provide them fund at low cost. Besides this, company
should invest their excess money in the banks in interest-bearing accounts so that during the high
interest rates period, they will get better return and thus can earn a huge amount. Thus, in this
way TESCO should adapt to these changes which are prevailing in UK as this would help them
to reduce uncertainty in future.
Selection of planned or unplanned approach for going forward
There are basically two types of changes which exist in the organizations and thus affect
them in some or the other way. Planned changes are generally the process in which leaders and
managers prior to the occurrence of change devise various strategies, systems and methods to
cope up with the changes which will affect them in negative way. Unplanned changes on the
other hand, occur suddenly within the organization and thus require the members and employees
to react proactively for overcoming these. In order o succeed and expand across the world,
TESCO would need to take planned approach towards the various changes (Rossi, 2019). There
are various planned changes like technological changes, organizational structure changes,
management changes etc. This planned approach would help the organization to prepare in
advance for the inconsistencies. The well-known model for having the planned approach of
change is Kurt lewin model which will help TESCO to design various strategies and will help in
the overall change process.