Understanding Organizational Changes: Types of Business Organizations, Change Strategies by Kotter and Schlesinger, and Implementation

This report discusses different types of business organizations, their advantages and disadvantages, types of organizational changes, and change strategies given by Kotter and Schlesinger. It also explains how to implement these strategies. The report uses Tesco Company as an example to illustrate the implementation of change strategies.

UNDERSTANGING
ABOUT THE
ORGANSIATIONAL
CHANGES

Contents
INTRODUCTION:..........................................................................................................................3
TASK:..............................................................................................................................................3
DIFFERENT TYPES OF BUSINESS ORGANISATIONS ARE:.......................................3
DIFFERENT TYPE OF ORGANISATIONAL CHANGES ARE:.....................................4
CHANGE STRATEGIES GIVEN BY KOTTER AND SCHLESINGER ARE:...............5
HOW TO USE CHANGE STRATEGIES TO IMPLEMENT THE CHANGE:................6
CONCLUSION:...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION:
Business organisation can be defined as the entities which are basically formed with the purpose
of running any commercial enterprise. The term is however has been divided into three
categories of business structures which can be the sole proprietorship or the sole trader with only
one owner of the organisation and then the general partnership and Limited Liability Company.
Every business chooses one of these structures to operate their businesses. Organisational
changes however refers to the changes or the actions in any business or company which
completely change its activities related to its culture, technologies and infrastructure and many
more (Hamid and et. Al., 2022). In this report of business organisations however, the different
types of business organisations and structures have been discussed with their advantages and
disadvantages. In addition to this the organisation changes and the strategies given by Kotter and
Schlesinger to overcome the changes has also been discussed. Lastly the implementation of these
strategies has also been discussed.
TASK:
DIFFERENT TYPES OF BUSINESS ORGANISATIONS ARE:
SOLE PROPRIETORSHIP: this is the first type of business structure which can be defined as
the business structure which is unincorporated that is it is owned by only one person or there is
only one owner of the organisation. Hence, the payment of taxes and the profit distribution is
only dependent on the sole owner. The liability in this structure is unlimited that means all the
personal assets of the owner can be at high risk if the business gores insolvent.
ADVANTAGES: the profit distribution is not there; all the profits and gains are being
transferred to the sole owner only and the decision making are also not time consuming and easy
as there is only one person to decide.
DISADVANTAGES: the owner have unlimited liability towards the organisation and hence his
personal assets are liable for the solvency and there is also limited funding at the start and in the
middle of the business than any other business structure (Yevu and et. Al., 2022).

GENERAL PARTNERSHIP: this type of structure have two or more than two partners which
come up together with the motive of profit maximisation of the business (Cohen and et. Al.,
2022). The profits and the taxation are being divided into their respective sharing ratios and the
liability is also unlimited for the partners. For the process of the formation, the partners generally
do not require any registration in the eyes of law but partners however do to enjoy some legal
benefits and at the same time to have the highlights of some situation already written in the
agreement like dissolvent of the organisation and the sharing ratios and many more.
ADVANTAGES: there is an ease in switching to any other business structure and in addition to
this there is a pass- through taxation process for the partners of the company.
DISADVANTAGES: there is no transfer of interest and the partners have unlimited liability
towards the organisation hence their personal assets are liable for the insolvency situation.
LIMITED LIABILITY COMPANY: all partners enjoy limited liability and it is also referred
to as hybrid structure as it is a combination of sole trader and general partnership. The Profits
and taxation are being divided into sharing ratios at which they have invested their capitals to
start the business and articles of organisations have also been required for the formation and the
agreement is also made to clear out thing between the partners as to avoid any future fights for
anything.
ADVANTAGES: there is no restriction on the entry of number of partners or owners in the
organisation and they all enjoy limited liability hence their personal assets are not liable for the
solvency situation (Price, and McCool, 2022).
DISADVANTAGES: the formation of this business structure is very expensive than any other
business structure and the ownership is also very complex due to the large number of partners at
the same time and the switching to any business structure is difficult in this.
DIFFERENT TYPE OF ORGANISATIONAL CHANGES ARE:
INCREMENTAL CHNAGE:
This can be defined as the process which helps in modifying or to refine the programs or the
activities of the organisation over the period of time by making small amount of changes or

alterations. This mainly do its changes in small series of steps at a time period. This change in
any organisation is very important as it does not change the basic core of the organisation but at
the same time make some changes which are actually very beneficial for the organisation in the
future. A basic example of this kind of change would be to install new software or hardware to
the existing one just to increase the efficiency of the work but it however doesn’t change the
main purpose of the company (Trivedi and et. Al., 2022).
RADICAL CHANGE: This kind of change in the business can be defined as the important
change or the shift behind the essentials of any company culture, product and the practices it has.
Radically changes however occur only fast and for a long period of time and hence helps in
modifying all the social structures and all the organisational practices that are being performed in
the company. This basically affects majorly on the resources that the company owns and the
norms and the interpretive schemes of both individuals and the group of people. It also adapts the
organisational principles and runs very fast.
DISRUPTIVE CHANGES: this kind of changes can be defined as the fundamental concept
which basically helps to shift the process and the operating activities of any industry or an
organisation. Every business should adapt the disruptive changes for their organisation as it
prevents their businesses from becoming a failure in the existing m market place or between the
competitors. An example would be to reconnecting with ourselves in the middle of work and
accept the silence of at least one minute at the work places.
EMERGENT CHANGES:
This change in the business can be defined as the assumption in the company to change the open
ended- continuous and the unpredictable process of realigning and the alignment of any company
with the changing environment (Nimmon, and Atherley, 2022).
CHANGE STRATEGIES GIVEN BY KOTTER AND SCHLESINGER ARE:
Education and communication: best way to overcome the resistance is by communicating and
educating the people about the changes. It helps the employees to appreciate the effort in change
which decreases the spreading rumours for the company.

Participation and involvement: company should involve its employees more in the process of
change which will help them to accept it rather than resist it. This lowers the resistance who do
not accept the change.
Facilitation and support: the high superiorities of the company can be potential resistance and
can help its employees in their difficult times which help them to overcome the fear of expecting
the changes around them. This will require thing like counselling and proper training for the
employees.
Negotiation and agreement: the managers can offer incentives and bonuses to their employees
and make them understand about the changes and not to resist it. This is mainly for the people in
power and hence is resisting the changes (Hollebeek, and Srivastava, 2022).
Manipulation and co-option: they both suggested that the manipulation is an effective method
to cope up with the resisters. This generally involves selecting some leaders from the resistance
group and asks them to participate in the change effort and make other also believe in it.
Explicit and implicit coercion: when nothing of the above strategies work, company can also
make the resisting people understand that not accepting the change can also them to lose their
jobs, firing, transferring or not get promoted in the company.
HOW TO USE CHANGE STRATEGIES TO IMPLEMENT THE CHANGE:
According to Kotter and Schlesinger, there can be four reasons that make people to resist any
change and they are parochial self- interest, misunderstanding, low tolerance to change and the
different assessments of the situation. To see the implementation, Tesco Company has been
taken into consideration. Hence to make any changes like the radical are and the incremental,
disruptive and the emergent changes, there will always be some group of employees that will
resist to hat and not accept that changes (Pandeli, and Alcadipani, 2022). However, company
can use the strategies given by Kotter and Schlesinger and can try to communicate with their
employees and make them understand the importance of the changes for the company. In
addition to that Tesco can also make big involvement of the resisting people for the changes and
can also support them mentally and financially which can show them that the company actually
cares and the changes are for the good. Negotiation and manipulation are the next two things
which the company can try and also explicit and implicit coercion which is to make employees
fear to lose jobs if they resist to the changes

CONCLUSION:
From this respective report it has been concluded that Business organisation can be defined as
the entities which are basically formed with the purpose of running any commercial enterprise. .
Organisational changes however refers to the changes or the actions in any business or company
which completely change its activities related to its culture, technologies and infrastructure and
many more. In this report of business organisations however, the different types of business
organisations and structures have been discussed with their advantages and disadvantages. In
addition to this the organisation changes and the strategies given by Kotter and Schlesinger to
overcome the changes has also been discussed. Lastly the implementation of these strategies has
also been discussed in this respective report.

REFERENCES
Books and Journals
Hamid and et. Al., 2022. Strategic human resource management. In Research Anthology
on Human Resource Practices for the Modern Workforce (pp. 1-16). IGI Global.
Cohen and et. Al., 2022. Using flow disruptions to understand healthcare system safety: A
systematic review of observational studies. Applied Ergonomics, 98, p.103559.
Price, M.E. and McCool, B.A., 2022. Structural, functional, and behavioral significance of
sex and gonadal hormones in the basolateral amygdala: A review of preclinical
literature. Alcohol, 98, pp.25-41.
Trivedi and et. Al., 2022. Social Determinants of Health in Asthma Through the Life
Course. The Journal of Allergy and Clinical Immunology: In Practice.
Nimmon, L. and Atherley, A., 2022. Qualitative ego networks in health professions
education: Capturing the self in relation to others. Medical Education.
Hollebeek, L.D. and Srivastava, R.K., 2022. Consumer involvement and engagement: From
involvement’s elaboration likelihood to engagement’s investment propensity.
Pandeli, J. and Alcadipani, R., 2022. REMOVING THE ROSE-TINTED
GLASSES. Organizational Ethnography: An Experiential and Practical Guide.
Yevu and et. Al., 2022 Electronic Procurement Systems Adoption in Construction
Procurement: A Global Survey on the Barriers and Strategies from the Developed
and Developing Economies. Journal of Construction Engineering and
Management, 148(1), p.04021186.