Strategic Leadership: Tesco's Organizational Changes and Managing Resistance

This report explores the strategic leadership strategies adopted by Tesco to manage organizational changes and overcome resistance. It discusses the use of models such as Lewin's change model and Force Field analysis. It also highlights the importance of corporate governance and ethical leadership in achieving organizational goals.

STRATEGIC
LEADERSHIP

TABLE OF CONTENTS
ILLUSTRATION INDEX...............................................................................................................3
INTRODUCTION...........................................................................................................................4
Company Background............................................................................................................4
Tesco's Organizational Changes......................................................................................................4
Leaderships and Managing Changes...............................................................................................5
Resistance and Defeating Resistance...............................................................................................6
Corporate Governance and Ethical Leadership.............................................................................10
CONCLUSION & RECOMMENDATION..................................................................................11
REFERENCES..............................................................................................................................12

ILLUSTRATION INDEX
Illustration 1: Change Management Model · Lewin........................................................................5
Illustration 2: Triple Bottom Line....................................................................................................9

INTRODUCTION
Strategic leadership basically deals with the strategies adopted by the manager for
accomplishment of certain short-term and long-term goals and objectives of the organization and
also to motivate the employees so that they work efficiently to gain the vision. This report shows
the study of Tesco's organizational changes, its leadership process. Further it will show some
applications of various models, such as Lewin's change model for dealing with the changes
coming in Tesco. Force Field Analysis and its steps which will help in accepting the new things
and rejecting the old practices.
Moreover, The Change Grid Model is also explained so that the employees can positively
and amicably accept the changes which will help them to overcome the resistance among the
employees. By following the principles of corporate governance and leadership in an ethical
manner, they can accomplish pre determined goals.(McGrath 2017).
Company Background
Tesco has its headquarters in Welwyn Garden City, Hertfordshire, England, UK, and it is
a grocery and a merchandise retailer of multinational level. It has diversified itself into various
areas like clothing, books and stationery retailing, furniture, electronics, internet and finance
related services, etc. and still expanding its business through changing its opportunities into
reality and through launching new and innovative products through technological
advancement(Burnes, 2004).
Tesco's Organizational Changes
Organizational changes are the modifications in the environment and are inevitable, they
must be accepted for better development and progress of the organization. Tesco has adopted
Artificial Intelligence(AI) and moving towards digitization in its stores to interact with the
customers directly and to to satisfy them and serve them better experience. It has launched an
app, which is an on call app which helps customer in finding out where the product is for which
they are searching. And, also it is planning on using robots in the stores for scanning the shelves
and re-stocking the short items and changing the price tags whenever required (Burnes, 2009).

Leaderships and Managing Changes
Leadership helps to provide constancy and a vision to overcome the instability cause by
the changes. Therefore, there should be a balance and co-ordination between the management
change and leadership for better development of Tesco (McGrath, 2017).
Lewin's change model
Kurt Lewin evolved the model 'Unfreeze-Change-Refreeze' in 1950, which can be used
by the organization and manage the changes taking place and for proper handling of the
resistance by employee arising due to changes Tesco can use this Model.(Lewin 2019).
Illustration 1: Change Management Model · Lewin
(Source: Lewin's Change Model, 2019)

Unfreeze Stage: At this stage the employees sense the change and become impatient, so
by adopting effective communication by Tesco with their employees will create positivity which
will result in increasing willingness within them and accepting the change with constructive
approach.
Change Stage: Change should be adopted come into force in a shorter time span, as the
more time the time taken for change process, the more the employee will be inclined to relapse in
to their old rituals. Therefore, fastening in the process by Tesco will lead awareness among its
employees in regard to importance of change. Through this they will actively participate and deal
with it in order to achieve the goals of the organization (Burnes, 2004).
Refreeze Stage: In this stage, refreeze the change is stabilizing the new plan and the
employees will understand that there is no turning back to the old situation and accept and move
ahead with the new Artificial Intelligence set up by Tesco.
This process can be successful only if Tesco will openly communicate the needs of robots
and Artificial Intelligence in its store with the employees, as when they will be aware of the
changes then only they will act in accordance to that and realize the advantages of the same.
Resistance and Defeating Resistance
Changes are irresistible, different employee respond to them differently, but accepting the
change and working with the flow of management programs will help employees of Tesco in
doing their work more efficiently and effectively(Burnes, 2009).
Stakeholders and their importance in managing resistance of change
Tesco being a leading retail brand has many stakeholders and all they have different
interest in the business. Stakeholders of Tesco are described as below:
 Employees: Workers are the major stakeholder of Tesco, they are the actual persons those
who perform task and supports in improving performance of organization. They accept
changes and implement these modifications at their working pattern which supports the
firm in managing resistance of change.
 Managers: They are another stakeholder of Tesco, they provide necessary training to staff
members ad make them familiar with ne changed condition which is the biggest supports
to firm in managing resistance of change.

Government: this stakeholder makes laws that are essential to be followed by each organization.
If government is forcing the industry to follow specific rule or make particular change then
employees are forced to agree that change hence it helps in managing resistance effectively
Investors have high interest in business and they provide fund for further expansion which helps
in implementing changes effectively.
Stakeholder mapping
Government Inventors Employees Managers
Level of interest Low High High High
Power High Moderate High High
Employees and managers have high interest in Tesco. At the time of changes company faces
problem of high staff turnover and decreasing operational effectively. In such condition
managers of Tesco train staff members and provide them rewards so that they feel motivated and
support the firm in this situation. This helps in creating positive atmosphere and dealing with
staff turnover issue effectively. On other hand employees are the major player or stakeholder in
firm, they put hard efforts to get more incentives hence they accept changes and motivate others
as well to work hard in order to get reward which helps the firm in improving operational
efficiency to great extent.
The Grief Model
When it comes to organisational change, this model suggests four steps for positively
responding to the changes and if at the initial level the employees accept the fact that the change
will be proved to be very beneficial for them, then in that case they can directly jump to the
fourth stage after first one.
STAGES INTERPRETATION
Denial At this stage, the employees will not accept the
creative thought of bringing of robots into the
store, as they will replace most of the human
workforce, therefore, this is a denial stage. It is
called the most critical stage because
employers have to make changes in its
strategies due to denial and resistance of
employees for accepting changes. Hence

employee work hard in new condition
forgetting more rewards which helps in
resolving issue effectively. Managers give
training to staff so that they can understand
new things and can work better in new
atmosphere.
Resistance Employees has to resist the change and
understand the benefits of the new advanced
technology through moving forward from their
old status quo, and they will need to give up.
(Bowhill, 2008). At initial stage of changes
they show anger, bitterness and opposing
changes that the company wants to make. In
this stage also, organization face several
problems like absenteeism, labour turnover etc.
Managers motivate people and build a strong
team where all people share their views. This
thing encourage others and create friendly
environment in Tesco that helps in resolving
issue of anger etc.
Exploration Through positivity among the managers they
can motivate the employees and bring back
them to the tracks so that they can work with
dedication and explore the involvement of
change in Tesco. Mangers encourage workers
and become friend of them which crats healthy
workplace culture and people are given
authority to take their decision to perform well
this helps in managing issues of changes in
Tesco.

Commitment And promptly employee will start paying
attention as they will get committed towards
the new future goals(McGrath, 2017).
Managers enhances loyalty of workers and
employees become more committed towards
their job which helps in dealing with changing
issues effectively.
 .
Force Field Analysis
The Force Field analysis gives the purview of problems arising due to changes and the
forces applied to effectively remove them(Lewin's Force Field Model (Change Management),
2018). Through this analysis, the organization can do early predictions about what will be the
results or resistance of changes. Ans also it will let Tesco know about the different factors which
can have impact and can influence the changes. These can include negative attitudes and habits,
lack of skills and practical knowledge which can have a direct impact on the departments,
employees and whole of the organization.
According to this model Tesco needs to follow three steps for accomplishment of the
goals and objectives through a change in its structure:
 It has to unfreeze the forces which holds Tesco in a position of Quasi-equilibrium, such
as driving & restraining forces.
 By increasing the driving forces and lowering down the restraints or both can bring the
balance between the forces when change is at initial level(McGrath, 2017).
 By refreezing the forces, when the change is complete, the forces can again become
Quasi-equilibrium.
Adoption of this analysis will help Tesco moving its employees from change,
interpretation of the pressure on the employees regarding the acceptance or rejection of new
technology and also help reaching to end result of decision making accordingly through proper
monitoring(Bowhill, 2008).

Corporate Governance and Ethical Leadership
This concept focuses on the overall business assessment and its performance on the basis
of the fiduciary responsibility and corporate ethics towards its society and environment followed
by the Company(McGrath, 2017).
Triple Bottom Line
The Triple Bottom Line generally known as TBL consists of three factors such as social,
environmental and financial. This framework helps in measuring the aspects and positive
negative impacts of of finance, environment and social performance of the company along with
fulfilling its objectives over a certain period of time. Also it helps in increasing the value of
business by evaluation of performance of Tesco in a broader sense(Bowhill, 2008).
Profit: It can be identified from the statements of profit and loss over the financial period
and is known to the mangers of Tesco who keeps a record of overall operations and management
functions.
Planet: Tesco has to follow its strategy by also complying with the standards of
environment protection by using sustainable inputs and fulfilling the corporate social
responsibility(Ellington’s 2017).
People: It can contribute socially through organizing seminars and campaigns so that it
can create awareness among the targeted customers. And through this, report in a consistent
manner accordingly which will be beneficial for attaining the growth for Tesco.
By adopting this framework, Tesco will be able to gain potential benefits and productive
results. This will ultimately help them in measuring the performance in relation to reporting of
CSR, encouraging the employee to work more efficiently and also keeping a check on the
environment sustainability(Bowhill, 2008).

Stakeholders Mapping
It is the analysis of stakeholders which can help in their identification, evaluation, of each
one who has interest in the organization and can influence the working(Ellington’s 2017). It also
helps in effectiveness and efficiency in regard to the plans and strategies adopted by Tesco. It
can be done at the initial stage of the project or in between with regular intervals to keep a check
on the engagement.
SATISFY MANAGE
These stakeholders includes those with High
Influential power but at the same time with
Minimal interest. They are the legislatures,
administrators, regulators such as tax, FDA,
etc.
These include the main stakeholders with
High Influence and High Interests. Engaging
them and involving them at all the stages of
operations and decision making. They
involves Trade Unions, Politicians,
investors, etc.
MONITOR INFORM
Illustration 2: Triple Bottom Line
(Source: Elkington's Triple Bottom Line (CSR), 2017)

These have Least Influence and Interest in
the organization and includes the one who
provides help and complimentary services,
therefore, they are monitored on the regular
basis(Bowhill, 2008).
These stakeholders have Low Influence but
High Interest and includes media outlets and
community members, anticipation of their
needs on regular basis and seeking advice in
the field of their interest will improve the
success.
CONCLUSION & RECOMMENDATION
This can be concluded from the above study that for facing the issues and accepting the
organizational changes by the employees, Tesco needs to apply various models such as Force
Field Model and Lewin's Change Model so that they can overcome the problems coming from
changes through finding more opportunities from the environment. By working efficiently
towards the short-term and long-term goals by accepting the changes positively. As by resistance
to changes they will not be able to develop as a whole. Therefore, by the efforts of employer and
employee and also the leader to guide in a proper planned direction Tesco will be able to develop
globally. Also, the fulfillment of corporate governance responsibility for smoothly growing of
the business and gaining competitive advantage is also being mentioned.

REFERENCES
Books & Journals
B,Bowhill.(2008)Business Planning and Control: Integrating Accounting, Strategy, and
People.1st edn.London: John Wiley & Sons
B,Burnes.(2009)Managing Change: A Strategic Approach to Organisational Dynamics.1st edn.
London: Pearsons
B.Burnes.(2004)Kurt Lewin and the Planned Approach to Change: A Re‐appraisal. 1st edn.
London:Wiley
J,McGrath.(2017)The Little Book of Big Management Theories: ... and how to use
them.2ndEdn.Uk:Pearson
Online
Elkington's Triple Bottom Line (CSR).(2017) [Online] Available
Through:<https://www.tutor2u.net/business/reference/csr-elkingtons-triple-bottom-
line>.
Lewin's Change Model.(2019) [Online] Available Through:<https://www.toolshero.com/change-
management/lewin-change-model/>.
Lewin's Force Field Model (Change Management). (2018)[Online] Available
Through:<https://www.tutor2u.net/business/reference/models-of-change-management-
lewins-force-field-model>.
Scott And Jaffe: The Change Grid And How We Respond To Change. (2015) [Online] Available
Through:<https://www.pocketbook.co.uk/blog/2013/12/03/scott-and-jaffe-the-change-
grid-and-how-we-respond-to-change/>.