Table of Contents INTRODUCTION...........................................................................................................................3 LO1.................................................................................................................................................3 P1 Compare different organizational and impact of change on organization's operations & strategy.................................................................................................................................3 LO2.................................................................................................................................................6 P2 Internal & external drivers of change and its effect on Team, individual and leadership behaviours..............................................................................................................................6 External drivers.....................................................................................................................7 P3 Take measures while minimizing negative impact of changes on organizational behaviour. ................................................................................................................................................9 LO3...............................................................................................................................................11 P4 Barriers to change and their influence on leadership and decision making of business.11 LO4...............................................................................................................................................12 P5 Different approaches of leadership to deal with change in a range of organizational context.................................................................................................................................12 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................16
INTRODUCTION Change management is basically discipline which guides organization as how they need toprepare,support&respondinordertosuccessfullyadoptthechangesfordriving organizational success and for achieving long-run goals and objectives. Tesla is predominately the American automotive as well as energy organization being established in 2003 by Martin Eberhard and headquartered in California, U.S. This company mainly deals in manufacturing of the electric cars, solar panels etc and thus has its presence across various countries. It currently operates in more than 15 countries. The main aim of report is to study the concept of change & Tesla respond to wide variety of changes for gaining organizational success. This report gives a brief overview of comparison of impact of change in organizations, internal as well as external drivers in affecting leadership and team behavior, measures for reducing impact of change, barriers to the change and their impact on decision-making and leadership approaches. LO1 P1 Compare different organizational and impact of change on organization's operations & strategy. Changes in an organization effects overall working of business. Changes have a huge impact on employees as well as customers of company. Tesla and General motors both are working effectively for raising their brand presence in market. Changes in their technology and organizational structure effects their business working. Below discussion help to analyze overall impact of those changes on both companies. ChangesTeslaGeneral motors Technological changesChangesinworkingof organizationeffectsoverall developmentof company(Espedal,2017). Teslaisoneoftheleasing General motors is an American multinational company. Due to changesintheirgenerative designsoftwaretechnology which uses AI algorithms help
company in automobile sector. Specializedinmanufacturing electriccars.Duetotheir unique features and technology playsanimportantrolein development of strategies for companies production process. Use of new high performance batterieshelpcompanyto reducetheiroperatingcosts which help to increase overall profitabilityofTesla. Development in software like autopilotmodeintheir vehicles and improved security featureshelptoattract customerseasily.Innovation ofelectrictruckshelpto reduce pollution,it help to preparestrategyonultra efficientandpowerful vehicles. Changes in batteries help to improve ability to drive 500milesonpercharge. Driver less vehicles innovation helptoimprovetheir navigation technology. toimproveandprovide security to vehicles.Help in developmentofstrategyfor advancementingeometric design it help GM to improve productionprocessand increasestrengthoftheir vehicles. Technology help GM to introduce their lightweight vehicles which help company to reduce cost of their vehicles. GMincreasesuseofvirtual toolswhichhelpthemto prepare strategies to lower cost ofvehicles(Rossi,2019). Transformation in working of organization due to technology changesincreaseneedof employees with right skills for developmentofproductfor which GM require to develop strategy to hire employees with required skills. Structural changesTesla organizational structure aim for continuous growth. It helptouseallavailable Organizationalstructureof General motors help them in properarrangementsof
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resourcesofcompanyto improve effectiveness of their vehicles(Yrjöläand et.al.,2019).Companyfocus ontheirmanagerialabilities help them to prepare strategy to expand business at a global level.Teslafocuson improvementoftheir leadership skills that help to implement strategies for future developmentandgrowthof business.Teslamaximizes their abilities to improve their operationalactivitieslike manufacturingnewand effective batteries for electric vehicles.Teslaimplement centralizationintheir organizational structure it help to take important decision and controlworkingof organization.Employeestake timetoadjustwithrapid changesinorganizations structure. componentsinbusiness. Changesinmanagerialteam help them to prepare strategy to reduce cost of their products toattractmorecustomers. Changes in structure help to developstrategytoimprove capabilities and performance in internationalmarket.General motorsbusinessdivision strategyhelpcompanyto maintain every department and work according to requirement ofeverydepartmentin business(Nelson‐Brantleyand Ford,2017).Organizational structureofGMdivisional structurehelptoimprove flexibility and development in regional market. M1 Due to development in Technology organization need to change working and to improve potential of their products & services. Due to increase in pollution from vehicles run with fossil fuels make Tesla to develop electric vehicle technology and improve their high performance
batteries. Tesla and GM both require changes in their organizational structure to maintain effectiveness of organization and to achieve their objectives easily. LO2 P2 Internal & external drivers of change and its effect on Team, individual and leadership behaviours. Internal changes Internal changes are factors that happens inside organization and effects overall running of a business. Some of the internal changes an its effect on company are discussed below. Strengths 1.Technology Leader in market place. 2.Innovative technical Pioneer 3.Effective business models. Weaknesses 1.Single source supplier. 2.Higher product cost Opportunities 1.Growing demand of Electrical cars. 2.PoliticalsupportforElectricalcar manufacturer. Threats 1.High competition in market. 2.Failure of products. 3.SafetyriskinuseofLithiumion batteries. Changes in organization strategy Changes in organization strategy is required for overall expansion of business. Strategy to establish business in a new market or introduction of new product. Leaders prepare plan according to requirement of new strategy. Need to analyze different ways to motivate employees to work effectively(Bohman, 2019). Changes effect overall employee efficiency because they are working on different product with set strategy, sudden changes in manufacturing strategy make them ineffective to cope up with changes they are unable to work in a team due to rise conflicts between members. Changes in staff Whenever a organization hire new staff for development of their business or for production of new product. Leader need to change their strategy because they motivate each and
every employee according to their wants and for that leader need to understand behavior of employees for smooth working of business. Whenever a organization hire a new employee it takes time for an employee to cope up with companies rules and regulation. If effects overall teamwork in organization, other members in team unable to cope up with new member and due to conflicts decision making become tough for development of company. Introduction of new equipment New equipment help company to reduce efforts of employees & help in expansion of business. Leaders require to understand working of a new equipment and machinery. Leaders train employees to work with new technology and equipment. Employees face problem while understanding features of a new equipment. They are unable to work with full of their efficiency. Employees take time to understand and work with new equipment. Employee attitudes. Growth of company largely depends on capabilities of their employees. Changes in employees attitude like if they are demotivated towards organizations rules. Leader understand employees attitude and use it in a positive way for development of company. Due to changes attitude of some employees in business effect all other employees in organization(Iles, 2017). Playing nasty politics in a team reduces efficiency of team to work together or any employee in a team work on their own set of rules it affects overall coordination between team. Workload Increase in workload due to demand of products and services in market effects working of employees. Leaders face problems to manage employees and make them understand work. Due to increase in workload employees in an team are not able to work effectively on their job and unable to attain goals & objectives of company. Changes in employee expectation Employees work according to requirement of organization. If employees expect high from organization they are unable to cope up with organization success. Employees want increase in their sales then it becomes tough for leaders to engage employees with with objective of organization. External drivers Externaldriversarefactorsoutsideorganizationthateffectoverallworkingof organization. Some of external factors are discussed below.
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Political Factors Government interference play a major role in running of a business. Changes in rules and regulations by government on working of organization(Gaspar, 2017). Due to increase in tax ratesandinterestratesbygovernmentorganizationneedtochangetheirworkingfor manufacturing products. Changes in production effect leadership in organization leaders need to develop plans according to requirement of organization. Manage work and motivate employees according to changes. Government interference effect overall employees working they are unable to work with new rules and regulations. Each and every member have their own opinion on rules which increase problem in a team to work together. Economic Factor Changes in economy affects working of organization. Rise in income of customers help to increase sales of company. Instability in economy effects working leader need to analyze requirement of production changes and use those changes in development of new products & services. Due to changes in working condition employees are unable to cope up with those changes. Effects overall teamwork between employees they need to work on different rules and regulations. Social Factors Companies success largely depends on satisfaction level of customers. Organization need to analyze their customers preference. Due to changes in customers choices organization need to develop new products according to requirement(Doppelt, 2017). Production of new product effect overall working of employees in organization. Leader prepare new policies and schedule for working of employees, arrange employees according to their skills for new product. It effect employees because due to change in work environment effect overall working of employees. They are unable to work in a team due to dissatisfaction towards organizations working. Competitor moves Increase in competition affect overall success of organization. Changes in competitors prices and product. Organization need to develop new plans for their development due to changes in competitors working. New plans need to be capable and help organization to achieve goals & objectives. Employees work according to requirement and changes in business and to improvetheirpotentialandabilities(Abernethy,2017). Teamneedto work accordingto requirement and changes in competitors moves for development of organization.
Technological Factor Changing fashion in market require changes and business need to implement those changes for overall growth of business and to Improve their abilities. Leader train employees to work according new fashion and develop products according to market requirement. Employees face problem while managing those changes because there are working on a different product and services in market. It effects team work as each and every employees work on their own rules and regulations in an organization. Environmental Factors The operations of organization are based on concept of low carbon foot print production. This thing is helping organization to maintain their business environmentally sustainable. Due to thesustainableoperations,organizationisgettingbenefitsofpoliciesthataremadeby government to promote environment sustainability in automotive industry. Zero emission is also can promote their business on global level. Legal Factors Some legal regulation and standards are preventing the organization to implement some changes in their products for better cost effectiveness. The employment laws are preventing the Tesla Motors to Implement some policies in organization culture for better production. M2 Internal and external drivers effects overall success of organization. Company need to analyze competency of their products and improve their firm according to requirement of those changes. Changes inside organizational environment effects performance of employees and leaders. Outside environment effects overall working in each and every department of company. P3 Take measures while minimizing negative impact of changes on organizational behaviour. Negativeimpactofchangeeffectoverallworkingoforganization(Peters,2019). Companies develop plans to overcome problems that effect overall success of business and implement strategies according to requirement. Measures that organization can use to minimize negative impacts on organization are as follows. Define change and align it to organizations goals
Companyneedtoanalyzeneedforachanges.Afteranalysisofthosechanges organization need to make their employees understand requirement of those changes. Need to train employees to face those changes in organization to improve their abilities to cope up problems arise in future. Company need to align those changes that need to be achieved with goals of organization. Leadership Managing changes in a organization is one of the tough task. Companies require effective leaders to bring changes in working of their business. Leaders help to implement plans for a new product and motivate employees to work according to organization requirement. Leaders know their employees need and use those needs to make them work effectively for achievement of organizations goals. Set timelines Company set timeline to implement changes in a firm. Setting timeline help them to achieve goals & objectives(Alavi and Gill, 2017). Company analyze their resources and current working environment of business that help them to implement changes. Set timeline help employees to make their work smooth and effective for growth of company at extreme level. Provide training Organization need to train their employees to improve their abilities that help them in expansion of organization at a leading level. Train employees to cope up with changes need to make employees understand to work with a new technology or plan. Train according to skills and abilities required in an individual for success of organization. Set training methods that help to train employees smoothly in an organization. Training to understand working with a new equipment and technology. Develop communication Communication help to develop a strong relation between employee and organization for their success. Communication help to implement strategies and improve potential of organization at a leading level.(Dudar, Scott and Scott, 2017). Communication help to make employees understand working for development of organization. Good communication help to reduce burden over organization. Engage employees in decision making
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Whenever organization going to implement changes they need to understand their employees abilities to know they are able to match up with changes. Increase participation of employees in decision making process of company which help them in overall success of business. It help company to familiarize employees with firms working and they are able to provide their concern and opinion towards effectiveness of organization. Develop positive environment Company need to develop a positive environment for success of business. Positive attitude of employees help to expand and improve potential of organizations goals & objectives. Need to arrange improve efforts of employees. Organization need to look for an opportunity that help them to expand business and help in improvement of organization to achieve their vision. LO3 P4 Barriers to change and their influence on leadership and decision making of business. Changes help organization to develop and implement new technologies for overall success of organization(Wong and et.al.,2019). But large number of barriers effects overall working of organization and become a problem for success of organization. Barriers that effect success of organization are explained below. Lack of employee involvement Employees help in overall success of organization their participation in each and every activity for development of business is important in growth of business at a leading level. Employees in organization fear changes they resist change because they are already working effectively with their current process. If employees are unable to involve with organization working then it effects their overall success at a leading level. Organization need effective leader to motivate employees to increase participation in success of company. Organization need to motivate employees to achieve their personal goals and match them with organization goal. Lack of communication Communication is one of the most important tool to establish relation with employees. If Tesla is unable to maintain good relation with their employees, they feel unfamiliar. Ineffective
communication in company make employees feel they are not important for organization. If company is unable to send their message to their employees properly it effects overall decision making in a company. To reduce barrier of communication Tesla need to increase participation ofemployeesindecisionmakingprocessofbusiness.Shareplanswithemployeesof organization which help them in overall success of organization. Organization complexity When organization planning become complex it effects all department or company. Leaders of Tesla are unable to understand plan and need of change that organization require for overall development. It become complex for employees to implement plan to produce a new product. When employees are unable to understand process it become tough to implement plan for success of organization. Employees are unable to understand new system or equipment's that effects overall growth of business. Tesla need to set clear and simple plan that leaders are able to understand and employees work effectively on basis of plan for success of organization at a leading level. Resistance to change Employees in firm are not ready to implement changes in organization. If employees are unable to cope up with changes in an company(Kroll, Kelly and Rates, 2019).Tesla develop plan after analysis of their customers that help to engage them effectively towards success of business. Insufficient leadership Leaders help organization to manage employees and work effectively for success of business. If leader are unable to understand changes or unable to cope up with new techniques for development of business then it effects working of organization at a dominant level. If leaders are unable to cope up with changes then employees are not able to work adequately for success of organization. Tesla need to train leaders to work with new changes so that they are able to motivate employees to accomplish goals & objectives of organization. Leaders help to increase loyalty of employees towards growth of company. M3 Whenever companies implement changes in their working large number of barriers occur which effect overall working of business at a large scale. Force field analysis is a powerful
method of gaining a comprehensive overview that help to manage change issues in an company. Force field analysis help to prepare plan to satisfy customer want for a new product help to maintain cost of products with introduction of new technology. LO4 P5 Different approaches of leadership to deal with change in a range of organizational context. Leaders help in overall success of organization and require to establish business at a leading level. Leader manage & maintain working of organization. Tesla need effective leaders that help them to attain their goals different leadership approaches that help Tesla to bring changes in their company are as follows. Democratic leaders Tesla going to introduce new technology to produce new products and for development of business employees are one of the most important part for their success. Democratic style of leadership help Tesla to increase participation of employees in decision making so that they are able to provide their opinion on introduction of a new technology. Employees achieve their goals easily and attract employees towards effectiveness of organization at a large scale. It help Tesla to get feedback from employees to implement new technology. Leader develop free flow of ideas in minds of employees that to bring creativity in their work. Leaders of Tesla need to trust their employees that they are able to achieve goals and objectives of organization. Leader need to honest and open minded to understand problem of employees. Transformation leadership To introduce a new equipment to employees. Transformation leadership help Tesla to engage employees with success of organization. In this style leaders inspire other members in a team to improve their performance and develop morale of employees. Leader help to bring innovationofemployeesthathelpinoverallsuccessoforganization.Leadersmotivate employees that they can work with new equipment and technology. Strategic leadership To develop changes in organizational structure by introducing new ways and methods for adapting changes in an organization. Strategic leadership help leader of Tesla to analyze growth opportunity for their business. Leader prepare strategy to maintain stable working condition for
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their employees. This type of leaders help to control employees with different choices and preference. Transactional leadership To motivate customers towards organization success Tesla need to use transactional leadership style that help them to implement success in an organization. Leaders need to reward employees who are able to work adequately with new changes in an organization. Provide bonus and incentives to employees who are able to accomplish goals and objectives of organization & require to maintain competency for success of business and able to manage and improve performance of employees. Lewin's Change Management Model There are three stages are involved in this process which are Unfreezing, Changing and Refreezing. This steps can be used by the organization to successfully implement change in organization. Unfreezing In this stage organization get prepare to implement changes in organization. In this process management of company provide information to the employees and stakeholders of company to reduce the resistance to change.By making them aware of change company can successfully develop environment to implement change in organization. Changing In this process all the prepared changes are implemented in organization. With the implementation of change in organization people may face some challenges on initial level but withcontinuous working employees get familiar with new change and start performing effectively. In this process employees are provided with information of change and benefits like incentives to stay motivated during the process. Refreezing This is post step of implementing change in organization. In this stage all the changes that are implemented in organization are made as part of organization to start operating with new stage. As this changes are permanently implemented in company, management of organization implement continuous improvement process in order to make operations of company more efficient with new change. M4
Leader help in overall success of company to implement new technology to improve potential of organizations products & services and require to establish and attain goals & objectives of organization. Different leadership approaches help organization to analyze overall working. Approaches help to maintain effectiveness of organization and work towards overall success of a business. Help to implement new changes and technologies to maintain growth in an organization. CONCLUSION From the above study it can be concluded that effective changes in organization will leads to the success and expansion of the business in the future and present condition of the market. Companies invest huge amount of money in new and advanced technology which helps to improve the quality of the products & services. The leader of the organization uses the various approaches of the leadership which helps them to encourage and inspire the employees towards the changes in the organization. From the lack of communication between the manager and the employees will creates the barriers of the change which will influence the decision making of the leader in business. The company will changes the products & services of the business as per the need and preference of the customer which increases the sales and profits in the future. Effective training is organize by the company which helps them to improve the skills and ability of the employees so they will easily accept the new changes in the organization.
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