Understanding and Leading Change

This report discusses the impact of change on an organization's strategy and operations, drivers for change, and the influence of internal and external factors on leadership and team behavior. It focuses on the examples of Bentley Motors and Rolls Royce in the auto mobile sector, and evaluates the effectiveness of different leadership approaches to managing change.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations....................................................................................1
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected....................................................................................4
D1 Draw conclusions and recommendations with valid justifications for planning effectively
for change and applying change impact analysis.........................................................................4
LO2..................................................................................................................................................4
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation.......................................................................4
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour..............................................................................................................7
M2 Apply appropriate theories and models to critically evaluate organisational response to
change..........................................................................................................................................9
P4 Explain different barriers for change and determine how they influence leadership
decision-making in a given organisational context......................................................................9
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making.........................................................................................................11
D2 Critically evaluate the use of force field analysis in the context of meeting organisational
objectives...................................................................................................................................12
LO4................................................................................................................................................12
P5 Apply different leadership approaches to dealing with change in a range of organisational
contexts......................................................................................................................................12
M4 Evaluate the extent to which leadership approaches can deliver organisational change
effectively applying appropriate models and frameworks.........................................................13
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management...............................................................................................................................13
CONCLUSION..............................................................................................................................14

REFERENCE.................................................................................................................................15

INTRODUCTION
The changes in relation to organisation should be followed which can help to increase
the performance and profitability. A change in environment mostly requires change in
organisation that uses to operate the business regularly. If organisation is bringing changes in
their organisation then it will be considered as opportunity as it can grow their business and
attain the competitive advantages (Drago-Severson and Blum-DeStefano, 2018). A business
concern is required to bring the innovation and changes in their process which can help to
develop the business. To understand about changes and innovation in organisation Bentley
Motors has been chosen that is large size auto mobile sector in UK, manufacturing different
model of cars and attracts the number of customers in changing environment. The management
of organisation bring the changes time to time which supports to introduce new products and
attain the competitive advantages. This report covers different topics such as compare ways in
which changes impacts on company's strategy and operation, evaluation of drivers that states
changes influences organisation behaviour, and barriers to changes that influence leadership
decision making. Moreover, range of leadership approaches to a change initiative.
LO1
P1 Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations.
Overview of organisation:
Bentley Motors is a British manufacturer and marketer of auto mobiles in which different
models of cars being prepares by using new features and capabilities. The organization was
founded in 1919 by W.O. Bentley. The headquarter of company in Crewe, England and serving
products worldwide. The products of Bentley are Flying Spur, Continental GT, Bentayga and
Mulsanne. The management of organisation bring the changes accordingly and increases the
sales of their business which can help to increase the organisational profitability. The number of
employees are more than 3600 who are working effectively and manage their activities properly.
The marketers of company analysis the market and conduct proper research as what customers
wants and how they can be satisfied. Then, new technology has been introduced by marketers
which has implemented by producers for the purpose of providing different model of cars
(Neumann, James and Vince, 2019).
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The changes in organization can be taken in many forms as it involves structure of
company, policies, procedures, strategies, culture and technology. These all are important to
adopt by organization by formulating plans and strategies that can help to bring changes in
organisation and maintain the activities effectively. Changes are very important for any
organisation as it helps to bring the new activities and performance which increases the
productivity (Mackey and et.al., 2018). Changes such as political, social, and environmental
should be focused by organisation that uses to introduce something different attain the
competitive advantages. For example, Bentley Motors is auto mobile company its marketing
manager research the market for the purpose of knowing current trend and wants of their
customers which can help to operate a business regularly and attain the profitability. This
research states how customers making perspectives towards new product and what changes
needs to bring in market. Different strategies and planning should be formulated by top
authorities so that each activity can be performed effectively.
The another example is Rolls Royce that is also dealing in auto mobile sector by
manufacturing different luxury cars which influences the number of customers and maintain the
good performance. The management of organisation bring the changes in their distribution and
promotional strategy for formulating different plans that helps to bring the changes in their
performance and sales. As online marketing, hoardings, digital marketing and T.V and other uses
to influence number of customers (Nadim, and Singh, 2019).
Comparison of organizational changes
Changes Bentley Motors Rolls Royce
Structural changes Organisational structure is
defined as system that outlines
how activities, tasks and
functions will be allocated
between members so that they
can work properly and increases
the organisational performance.
This organisation followed the
Hierarchical structure that is line
structure which helps to work
This is important for organisation
to follow the proper structure of
organisation where all activities
can be maintained effectively that
increases performance. In past
period, the chosen organization has
followed matrix structure that
allows employees to move from
one department whenever needed.
Herein, supervisors have flexibility
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properly but it has created many
problem while working as only
top authorities are able to make
decisions.
After making changes Bentley
Motors bring the use of
Divisional structure that is useful
to operate a business and sharing
the information between
members. Herein, employees
feel good and respect which
helps to increase their working
effectively.
to choose the best employee for
their project but this might be
create the conflicts between rest of
the staff.
The management of organisation
has decided to use network
structure that mainly uses in large
and multinational companies.
Herein, all roles and functions are
distributed between members and
boost their morale which can help
to increase profitability (Scott,
2018).
Strategy Strategy is a general plan which
uses to identify vision and attain
the long term goals of
organisation. Bentley Motors is
following the competitive
strategy that refers as a plan uses
to gain the competitive
advantages. Competitive
strategies comes from by
identifying competition and
formulate the planning such as
low cost strategy, contrast
strategy, focused market and
niche strategy which uses to
operate the business regularly.
If effective strategy is adopting by
organisation then it will be
opportunity for business to grow it
continuously. Rolls Royce is large
size auto mobile company that is
focusing on operating strategy that
maintain uses to operate a business
and increase the profitability. By
using operational strategy, chose
organisation increases their sales
and performance in changing
environment so it can compete in
changing market and develop the
higher profitability.
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M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected.
In the business environment there are many drivers for change which should be cover in
running the business and increase the activities. In Bentley Motors the drivers for change are
human resources, customers technology development, competitors and business growth which
uses to run a business bringing changes continuously. The management of such organisation
understand the needs of their customers and bring the new technology accordingly which helps
to operate a business and attain the higher profitability in competitive auto mobile market. On the
other side, Rolls Royce bringing changes in their structure which helps to work accordingly and
develop the business effectively. The management of organisation also bring the uses of
distribution channel that supports to increase the organisational productivity as well as sales.
D1 Draw conclusions and recommendations with valid justifications for planning effectively for
change and applying change impact analysis.
From the above it has recommended to Bentley Motors formulate the effective planning
and bring the changes in their organisation which influence the number of customers. For
instance, by bringing strategical and structural changes it will be an opportunity for organization
to increase the sales and performance which can help to maintain higher profitability in changing
environment.
LO2
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation
Different types of drivers are uses by organisation to analyse the environment which can
help to operate a business and increase the effectiveness. The external factors is related to
political, economical, social and technological which affects team, leadership and individual
behaviour that are as explained:
PESTLE analysis: It is a framework that enables marketers to evaluate the impact of
external environment on business. In other words, this is an effective macro environmental tool
that can be used to track the environment in which company is operating their business. External
environment plays a significant role in working of any business. As Bentley is operating in
global environment, this analysis enables a firm to forecast upcoming challenges and improve its
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strategic operations which provides competitive advantage to an organization. Political,
Economical, Legal, Technological, Legal and Environmental are factors of PESTLE analysis
which are further discussed below:
Political: Tax policies, trade restrictions, government policies, stability or instability of
government, these are the factors which are included in political analysis. It has huge impact on
working of a firm. Impact of political factors on the working of Bentley is discussed below:
 Positive Impact: Political stability in UK provides competitive advantage to Bentley as
it provides favourable environment for growth. It enables stable rules and regulations
which leads to reduction in political disruptions (Valencia, Cardenas, and Acevedo,
2018).
 Negative Impact: Increased tax rates and changing trade policies due to Brexit affected
the profitability of Bentley in negative way.
Economical: Consumer's disposable income, exchange rates, unemployment rates,
inflation rates, interest rates etc. are considered while evaluating economic factors. In the context
of Bentley , impact of these factors are as follows:
 Positive Impact: Low interest rate in UK provides opportunity to the company to borrow
more funds which can be used to expand the scope of business. It also enables customers
to buy products such as auto mobiles on loan basis which further increases the sale of
company.
 Negative Impact: Increasing unemployment rate leads to reduction in disposal income of
consumers which results in reduction of purchase of auto mobiles of Bentley which
further affects the profitability of firm (Wang, and et.al., 2020).
Social: Cultural trends, lifestyle, age distribution, consciousness regarding health, age
distribution, safety emphasis, and income distribution, these are considerable factors while
analysing about social in PESTLE analysis. While evaluating impact of social factors for Bentley
it can be stated that-
 Positive Impact: Lifestyle of people is changing day by day because of which customer
buying trends are changing which lead to increase in demand of luxury products such as
auto-mobiles.
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 Negative Impact: Coronavirus pandemic has effected financial status of people because
customers are preferring to purchase only those products which are of necessity, hence, it
affected the demand for luxury products (Naqvi and et.al., 2019).
Technological: Innovation or automation level, change or up-gradation in technology,
etc. are included in technological factor. Following are impact of technological factors on
Bentley:
 Positive Impact: Increasing technology provides opportunity for auto-mobile industry to
further expand its scope. For example, increasing demand of electric vehicles serves as a
chance for Bentley to improve its market share (Kumar, and et.al., 2019).
 Negative Impact: Due to constantly changing technology in this fastest growing world,
products frequently becomes obsolete which increases capital expenditure of company
and also its 'research and development cost' which hinders profitability of company.
Internal environment: This states as internal position of company which can help to
operate the business by bring changes. In Bentley Motors , leaders introduces the changes and
get ready team to accept which affected the behaviour positively.
SWOT Analysis: This is a tool which uses by organisation to know the strength and
weakness of business which can help to operate a business regularly. The Swot analysis in
context to Benley Motors are as explained:
Strength Weakness
 The manager of Bentley Motors' has
technological capacity that helps to
give a shape the business operations in
long run.
 Managers has strong knowledge about
financial management that helps to
make decision regarding purchase of
raw material, new assets, fund
distribution and marketing activities.
 High spending on new technology due
to which company faces financial
losses if technology is not adopted
appropriately.
 High wages or scraped while making
parts of cars and other production
process.
Opportunity Threat
 Bentley Motors introduce more  Lack of organization culture that may
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programmes and also provides mental
confidence to employees that attracts
them and increase production.
 Using robotics technology in Auto
mobile that attracts people who wants
to maintain their standard.
negatively affect production of cars in
such company.
 High prices of Cars than other
organization that may reduce sale of
such organization.
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
Changes are the organisational process, tools and techniques which uses to manage the
people in business activities and attaining the desire outcomes. Change management comprises
with process, technologies, and activities that are uses to run and operate the business regularly
so that profitability can be maintain effectively. In other words, change competency is defined as
leader's ability that influences the people by leading changes and managing the task effectively
(Church and Pasmore, 2020). In context to Bentley Motors, changes are introduced by
management that has been created negative impacts on organisational behaviour as employees
does not get ready to accept the changes easily and not to work in changing environment. To
reduce the negative impacts and understand the changes in better way Burke Litwen model has
been used that are as explained below:
External environment: This means some factors which impacts on business negatively
and that should be measure by organization in order to reduce the impacts. For this business
concern analysis the market and identify the problems which is facing by company. After
identifying problems organization should find out the solution that helps to overcome the
negative impacts of changes on organization behaviour. Some element are mentioned below that
helps Bentley motors to reduce the negative impacts of changes on industry behaviour (Coruzzi,
2020).
Individual and organization performance: In this dimension manager of Bentley
Motors consider performance level of both individual and organization and make changes
accordingly. Manager of such organization measure the performance on the basis of productivity
and sale of cars, turnover, quality requirement, efficiency and customer satisfaction that helps
organization to reduce the negative impacts of changes (Burke Letwin change model, 2019).
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Leadership: In Bentley Motors, managers are handling responsible position as they
introduce to new technology and new products then gives proper guidance to employees. This
guidance helps employees to adopt challenges positively that address in the event of change
(Montreuil, 2020).
Organization culture: Bentley Motors consider explicit and implicit rules, regulations,
principles, manners and practices by adopting Clan culture that helps to maintain eco- friendly
environment. This helps to accept the changes by working with team members and employees
that reduces negative impacts of changes.
Management practices: Managers of Bentley Motors behave positively and perform all
business activities effectively while manufacturing new model of cars. Manager of such
organization make strategy and deal with available resources that helps to meet with changes and
reduce the negative impact.
Structure: Bentley Motors are adopting hierarchical structure in which employees
communicate directly with employer and share problems while manufacturing cars and
performing other activities (Ahmadi and et.al., 2020).
System: In Bentley Motors, manager build some policies and procedure which need to
follow by employees and employer in order to accept changes effectively.
Work Unit climate: In Bentley Motors, employees adopts changed work climate that
helps to maintain mutual relations with employer and other employees for accepting changes
efficiently (Silvius, 2018).
Motivation: Manager of Bentley set the goals and communicate with employees for
accepting changes. Managers of such organization evaluate employee's performance and
motivate them by giving appraisals that helps to increase production level more (Burke, 2018).
Task requirement and individual skills: In this dimension manager of selected
company get the need to people in particular departmental with skills required then recruit
employees that helps to meet with changes effectively.
Individual needs and Values: As all employees have some needs and expectation from
organization which is needed to complete. Bentley's manager understands the needs of
employees and give them preference that helps to make feel them confident. Therefore,
employees accept new changes effectively and maximize profits (Olivier and Martins, 2018).
8

Therefore, by using the Burke Litwen changes model, the chosen organization identify
the changes and bring the uses them in their business which can help to increase the productivity
and profitability. The management motivate the employees to accept the challenges and bring
new process of manufacturing and sales that can help to increase sales and profitability.
M2 Apply appropriate theories and models to critically evaluate organisational response to
change.
When changes are introduced by organisation then there is need to focus on model and
theory which can be uses to adopt the changes effectively in organisation. Such as Burke Litwen
changes model is use by Bentley Motors in order to bring changes in their car manufacturing
process which can help to reduce the wastage, improve quality and develop the performance
which can help to increase the sales and performance. This also helps to motivate the employees
by filling their expectation that get them ready to work efficiently by accepting changes properly.
P4 Explain different barriers for change and determine how they influence leadership decision-
making in a given organisational context.
The environment is changing faster, where needs and wants of employees are also
changing. This is suggested to all organisation to bring the changes in their process and activities
which can help to develop the business and maintain the higher profitability. Whenever
management has decided about change then there is need to understanding barriers so that it can
be improved by adopting changes properly. If changes are not adopted properly then it will be
difficult for company to run their business continuously. In context to Bentley Motors, changes
are evaluated by management who analysis the needs and thinks to bring the changes which can
help to operate the business and increase the operational activities. Identifying changes and
implementing them in organisation can be an opportunity for organisation to create a
successfully business and attain the higher profitability. The management of chosen organisation
wants to implement changes continuously as they have belief that change in activities would
bring the significant impacts to the organisation as whole (Al-Ghamdi and et.al., 2020). The
barriers for change in context to chosen organisation are as defined:
Lack of employee engagement: This is major barrier to change management which are
facing by organisation while running their business. In a organisation number of task and
functions are needed to perform where change management process uses to bring the changes
and increase the performance. The big mistake of organization is they get fails to involve
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employees in change management process. This problem is also faces by Bentley Motors as, new
technology and process of manufacturing the cars are introduced by management where they
does not involves staff that has created the problem while implementation and this affected the
business performance. For increasing the sales and performance, management should involve all
employees in organisation changes and activities which can help to operate the business and
increase the profitability (Kezar and Holcombe, 2020).
Organisation complexity: This means organisation starts to develop the complex
process, where in making changes by introducing planning and implementation become more
complex. For any organization it is not easy to accept the changes as it create the many problems
and rigidity in process. Some time, many difficulties arises in business such as arrangement of
funds, changing of business strategy, lack of skills and growth activities etc. that affected the
employees not to work properly. Bentley Motors can face this problem in growing the business.
Therefore, leader of chosen company provide training and increases learning of employees
which helps to tackle the changes and increases the sales (Barriers in relation to change, 2019).
Cultural barriers: The another challenge and barrier is cultural barrier that affects many
people from various groups. The culture and religion of people are different in organisation that
can be create the challenge for business. The Bentley Motors is dispersed geographically where
religion and working environment of people are different as employees does not ready to accept
the changes in relation to organisation. For reducing its negative impacts management of chosen
organisation should be adopt Hofstede cultural model that can help to reduce the negative
impacts and increases the sales and profitability (Simon, 2020).
Therefore, these are barriers which are facing by chosen organisation while running a
business in auto mobile sector might be affected the company and its business. This can create
the problem and affected the profitability.
How changes influences leadership decision making
Leadership is the activity which uses to influence the people by getting the work done
effectively. The leader is a person who have ability and capability to work effectively by
accepting the changes which can help to manage the workings and increase performance. In
chosen organisation leader is responsible to make decision by identifying needs and providing
training to employees so that they can accept the challenges and maintain performance.
10

These all forces are influencing the leadership decision making as whenever management
thinks about change and introduces then shares with leaders so that it can get ready the all
employees to accept and manage the all activities. If leaders are not able to motivate the
employees and providing proper training to staff then it influence decision negatively and
reduction in activities (Westman, 2019).
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making.
The Bentley Motors is using force field analysis as drivers for change and resistance
Force field analysis: This can be defined as basic tool and strategy which uses to take
the right action and increase the organisational performance. This is a technique which can be
used for identifying, discussing and documenting the factors which supports organisation to take
the initiatives. This organisation bring the changes in their process and activities by adopting
change model which helps to increase the sales and profitability.
Driven forces: This means activities and functions that are important to perform and
helps to increase the performance in changing environment. This involves some forces and
aspects which are important to adopt for organisation. The management of Bentley should be
focused on various factors that are important to run a business. Such as customer's demand,
organisation demand, and experience of employees which can help to adopt the changes
effectively and increase the performance. The management of chosen organisation understand
customer's demand and wants in regard of manufacturing different model of cars which helps to
increase the sales. Moreover, management bring the changes in their products as they have
requirements which can help to increase the performance.
Resisting forces: This means barriers and problems which arises while running a
business which has affected the productivity and profitability. Whenever, organisation modify
their existing process and bring the new changes it is required to understand all activities and
functions properly. Bentley Motors is large size organisation that bring the new technology and
process in their auto mobiles where many resisting forces arises such as unskilled and trained
people, different in culture and language of people, lack of motivation, lack of guidance and
training which might be created challenges for organisation and affected the profitability of
company.
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D2 Critically evaluate the use of force field analysis in the context of meeting organisational
objectives.
The critical evaluation of force field analysis is needed in organisation which can help to
meet with organisational goals. Such as the goal of Bentley Motors is to increase their by
influencing number of customers. Thus, it bring the changes in their process and activities which
can be difficult for organisation. The management of chosen organisation uses force field
analysis that uses to know driven force and resisting force for changes. This can used to increase
the performance and profitability.
LO4
P5 Apply different leadership approaches to dealing with change in a range of organisational
contexts
Leadership is the activity of influencing employees in organisation which uses to
introduce the changes and implement in business so that each activity can be perform and
maintain. If there is good and supportive leader then it will be an opportunity for organisation to
increase the productivity and profitability. In context to chosen organisation organisation
different leadership theory and models are uses in relation to change are as defined:
Lewin change model: This is change management model which is uses by company in
relation to bringing the changes and improve their performance in the changing environment.
This model was propounded by Kurt Lewin that states how organization is adopting changes.
Bentley Motors is adopting this model for the purpose of accepting changes that are as
explained:
Unfreezing: This is the first stage in relation to change that covers entire process of
change management. In this, management thinks to bring change by fostering a realization for
moving from comfort zone to transformed situation. In Bentley Motors, management feel the
needs of change in their organisation and improve the motivation level of employees by
maintaining effective communication (Pearce and et.al., 2019).
Change: This stage is related accepting the changes by sharing with all and formulating
strategies which can help to operate the business regularly. In this, people have implemented the
changes in actually which will help to improve the productivity and profitability. The
management of Bentley Motors have decided to develop a new model of cars with safety wings
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and high cubic capacity that will be use in race and sports which will help to increase the number
of customers.
Freeze: This stage is related to moving the people from transition stage which is more
stable can help to improve the performance. After implementing changes and producing a model
of car by Bentley Motors can increase their sales and brand image in global auto mobile market.
This can help to deliver the best quality of services that make happy and satisfied people.
Therefore, Lewin change model is uses by Bentley Motors for identifying the needs and
bring the changes step by step which can help to increase the sales and profitability effectively.
System leadership approach: This approach is related with conditions and systems that
helps individual and team members to work effectively by using advanced skills and their
potential qualities. This approach helps Bentley's manager to predict behaviour of their team at
the times of assigning task. It helps to work in a systematic way towards achieving business
goals. This is effective leadership style that helps Bentley's leader to sustain productivity by
implementing changes and making strategy. The advantage is to improve the performance,
productivity and profitability by adopting system leadership approach. It helps to meet with
objectives by implementing changes (Storlie and et.al., 2019).
M4 Evaluate the extent to which leadership approaches can deliver organisational change
effectively applying appropriate models and frameworks
Leadership approaches are uses to accept the different changes in organisation and bring
the improvements that can help to increase the productivity and profitability. In context to
Bentley Motors, Kottler 8 step change model have been uses by management that covers creating
urgency, creating guide coalition, developing vision, communicate the change vision, removing
barrier to action, accomplish short term goals, building on the change, and institute change which
can help to increase the productivity in manufacturing process by identifying needs and
developing new model of cars that increases the sales and profitability. Other than this, Lewin
change model uses to introduce the new changes and implement them in organisation step by
step that helps to manage the sale and customer attraction.
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management.
From the above discussion it has critically analysed that Bentley Motors should bring the
use of situational leadership approach which can help to identify the changes and get ready all
13

staff which can help to increase the performance and brand image. As this theory is valuable for
organisation which understand what people are facing and how they manages the changes that
deliver best quality of products and services (Storlie and et.al., 2019).
CONCLUSION
From the above report it can be concluded that organisational changes refers as changes
in structure, strategy and activities which can help to operate the business and increase the
profitability. Internal and external environment factor are uses to analyse the business
environment and know how they affect the business. Situational leadership theory and Lewin
change model uses to accept the changes and improve the organisational profitability. Burke
Litwin change model is uses to reduce the negative impacts of changes and run a business
effectively.
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