Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1 Compare different organisational examples where there has been an impact of change on and organisation’s strategy and operations.............................................................................1 TASK 2............................................................................................................................................3 P2 Internal and external drivers of change affect leadership, team and individual behaviour within an organisation............................................................................................................3 P3 Measures that can be taken to minimise negative impact of change on organisational behaviour................................................................................................................................4 TASK 3............................................................................................................................................6 P4 barriers related to change and there influence on leadership decision-making.................6 TASK 4............................................................................................................................................9 P5 Different leadership approach to deal with changes in the organisation...........................9 CONCLUSIONS............................................................................................................................10 REFERENCES................................................................................................................................1
INTRODUCTION The understanding and leading changes is the process in which employees are prepared in advance about the problems and how to take initiative related to change in the organisation. Changes are very necessary to meet with external environment. Introduction of new market led to innovative technology which in turn have put powerful models in the organisation. In order to meetwiththesechallenges,firmshavebecomemorerefinedinthebestpracticesfor organisational change(Burke,2017). The world is changing too fast and with this change, organisation also need to change itself. In this context, Tesco is taken to study as it is one of the large multinational retailer company. Further in this report, comparison of different organisation examples and impact of change on its operation, ways in which external and internal drivers affect the organisation behaviour, determining different barrier that influence the decision of leadership, and applying different leadership to deal with changes in regard with company will be discussed. TASK 1 P1Compare different organisational examples where there has been an impact of change on and organisation’s strategy and operations. It is very essential for the company to implement changes. Different strategies help the organisation to control the changes. It can be in any form like change in structure of organisation, process, operational actives or change in technology. To make employees familiar with the changes strategies are need to be formed.Tesco is a multinational retailer its major concernof deal is with providing best clothing, furnitures, toys , software to its customers. So the first company taken is Tesco and another is Walmart wants to implement some of the changes. Both organisation used here are UK based and are from retail market.Their aim is to implement changes regarding technology advancement.A extra feature which company can add on its website is that customer can resale its used products and can exchange it with new one. The strategies are formed to attract more customers to buy new latest product which will increase profit of the concern. The operational activities are also need to be reframed related to the change (Cameron and Green, 2015). The comparison between the companies strategies and operational changes are discussed below: BASISTESCOWALMART 1
StrategiesTesco always implementchanges in their business process with the helps of advance technology. For this, they also paid maximum attention towards newbusinessideasastheymake strategicplanthroughwhichfirm operatetheiractivitiesforhome based products and services. On the basisofthesekindofalteration, Tescocreatetheirownimagein targetmakebytheirownselling proportion. Walmart also wants to implement some of the change in technology for this they always looking for developing nation in which they canoperatebusinessservices with different strategic practices. As Walmart recently paid their attention towards the analysis of small and developing companies so that they can acquire them and mustcreatetheirownmarket image and value in front of their target customers. OperationalTescohassomechangesin technologysuchasupgraded paymentsystem,artificial intelligenceintotheirproduction processandsoon.Therefore,in context of changes they are hiring newemployeeswhohassome knowledge about how to work with a change. Also, their operations will work little bit faster and also, it can can produce more standard quality products in less time. Astechnologyarebecoming advance day by day so Wallmart haveperformedsome technologicalchanges.Suchas robotswhichhelpsthemto restock their shelves, identifying misplaced goods and tracking the level of inventory. Through this their operation become easier as overstockproductscanbe tracked and also make sure that pricesareupgradedandmany more. 2
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TASK 2 P2 Internal and external drivers of change affect leadership, team and individual behaviour within an organisation It is very important for the organisation to bring change in policies, technologies and procedure with time. There are internal and external factors that affect leadership, team and individual behaviour(de Sousa Jabbour, 2015). Tesco also want to change and for this internal factors and external factors that are mentioned below: Internal drivers:It refers to the things, situation or event that occurs within an organisation.Thesefactorstronglyaffecttheleadership,teamaswellasindividualof organisation and all are going to face problem in an organisation. In case of Tesco its major factors into internal drivers of change are as follows: Organisational culture:Culture of the firm represents the norms, attitudes, behaviours and many more of team as well as individuals in job. Tesco corporate culture is focused towards offering good products to customers. Also, it tends to perform with skilled staff which are supportive towards firm as well as its operations. It is the internal driver that help organisation to modify its operations according to culture. Culture of Respective company has positive impact upon leadership, manager as well as supervisor work together with team to make their product valuable. Moreover, for group behaviour such as forward looking culture of organisation many outcome into growth in harmonyas well as good team work within groups of Tesco. Employees morale:This considered as the level of strength as well as confidence of individuals or workers and it is essential for organisation. In case, staff has low morale or not more concentrated towardswork then it will impact functions and functional activities of the company. In order to obviate this kinds of situations Tesco organise many programmes to inspire its staff. Few activities are training, arranging motivational event and many more. For example: If respective company leaders perform strategic planning for improving workers morale this will maximise their productivity that leads towards effectual team work. Through this firm can capable to attain objectives in proper way. Externaldrivers:Thesearethethings,situationoreventthatareoutsidethe organisationbuttheirchangescanhaveaimpactonorganisation.Theleadership,team 3
individual behaviour also get affected with this external drivers. So, Tesco, external drivers are explained below: Politicalfactors:Thisfactorincludeslegislation,tradepolicies,taxratesand unemployment rate etc(Drago-Severson and Blum-DeStefano, 2018). Tesco have been impacted by Brexit. The effect was evident upon company as due to political instability legislation, policies etc. of country changed wholly. So, it forced selected firm to also change its policies. Regular changing regulation in firm induced stress into organization. Also, manager and leaders have to change the firm system and framework on regular basis which is not an easy task. When country's political situation changed then this will effect selected company because of that they has to make and adapt new policies which will impact upon manager leadership style. So, team and individuals should perform effectively as per the changed policies of the country. Technological factor:It is the factors that effect organisational and the leadership behaviour. With on going changes and enhance demands, Tesco required to bring updated technologiesinordertosatisfytherequirementsoftheclients.Astechnological advancement can prove to be great opportunity for Tesco. By forming website and launching of online payment app more customers can be attracted. It saves both time as well as labour cost. Also, it will impact individuals as well as team behaviour as it many resist this changes. Thus, leadership will aids them to transmute it behaviour into upgraded one and also provide crucial training for adopting technologies. P3 Measures that can be taken to minimise negative impact of change on organisational behaviour. Tesco can reduce the negative impact of change in their organisation. The following are the ways by which impact can be reduced: Providing effective training:With change, It is very important for the employees to receive training to teach them proper skills and knowledge so that they can operate efficiently(Galvin and Clark, 2015). By regular training of employees, negative impact can be minimised. Training can be both on the job or off the job. For example: If Tesco are providing effective training to their employees so in case any changes occurs such as in technology and operation then they can ready to adopt the modifications as well as perform well. 4
Employee engagement: It will help them in understanding the changes which are implemented in an organisation. The organisation must clear all the employees about the change and motivate them to work more efficiently. For example: if the employees of Tesco are participating or engaging into the activities then they should get to know about the changes and also encourage them to perform accordingly.So, with the help of this they can perform effectively as it already have knowledge about it. Motivation:It is foremost responsibility of company to motivate its employees from time to time so that they can boos their morale confidence and are able to perform more efficiently. TescocanalsoapplyLewin'sChangeMangementModelwhichwillhelpthe employees to accept the changes in the organisation. This model was founded by Kurt Lewin in 1940s. His model is known as Unfreeze-Change-Refreeze which refers to three stages that describes the changes. By understanding this model employees are able to understand the need for change and are able to work on awareness of the change. These stages are discussed under. Tesco which is a leading retailer in UK but they are still using traditional technology so in order to bring changes into technology the respective firm have to adopt some new technology such as upgraded payment system. Therefore, with the application of this model they can overcome from the issues that occurs due to the changes these are some stages in this model that are mentioned below: Unfreeze stage:This is the very first stage of this model. In this employees will come to know about the changes are going to happen in their working. In order to make employees comfortable, Tesco has to disclose each and every fact about the change in organisation to its employees. The purpose of change should also be mentioned to the employees so that they don't face any difficulty while implementing the same. Benefits of change should also be discussed as this will help them to adopt new ways of working easily. As per the above mentioned scenario, tesco are facing the problems regarding payment system so they are going to change their payment system which reduce their issues of late or error in payment. Change stage:It refers to the stage in which employees are moving toward new direction (Rothwell, Stavros and Sullivan, 2015). At the starting some of the problems are faced by employees as one is doing for the first time. Management of Tesco must help each 5
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employees in this hard time so that there confidence is maintained. Employees should be told about the benefits and importance of the change so that they may try to work best. For example: If tesco is implementing the upgraded payment system in their firm which assist them to perform the payment process quickly as well as their customers do not have to wait for long time. As a result, due to this consumers and company both can save their time. Refreeze stage:This is the final step of the model in which organisation has made certain changes and employees have accepted the same. In this employees of Tesco have accepted the change and work in that appropriate direction. Proper motivation should be provided to them so that that they do not get confuse while accepting the changes. Fro example: If tesco has adopted the upgraded payment system then they should provide proper training and guidance to its workers so that they can understand as well as adapt it effectively and also try to perform well with the new changes. Through this it can reduce some negative impact late payment. TASK 3 P4 barriers related to change and there influence on leadership decision-making. Therearecertainchangeswhichareveryhardfortheorganisationtofollow. ImplementingchangewasverydifficultforTesco.Changesareverynecessaryforthe organisation to be implemented(Grootenboer, Edwards-Groves and Rönnerman,2015). While implementing any changes, barriers are also in the path. It is very important for the organisation to break such barriers through effective planning. Barrier which affect leadership decisions are: Lack of employees involvement:Employees always have a fear of change whether they will be able to perform with change or not. This will also led to to job complexities as they are not familiar with the task which need to be performed. Due to lack of employees involvement, leaders can not get to know about their issues, abilities an so on which will impact the decision making of leadership in formulating strategies, plans etc.In case of Tesco the leaders plays very major role to engage their employees in positive way by giving various kinds of motivational factors such as appraisal, promotions and many more factors helps to engage consumer base. Legal barrier:While implementing any change, Tesco has to follow the legislation and norms in that consideration which is very lengthy process and will also led to some pressure 6
among the leaders in taking a effective decision. Due to changes in legislation so it will be a barriers for the firmandalso leaders have to make strategies as per the legal modifications which will effects the decision making of the leadership. Also, it has to influence team to work accordingly.In context of Tesco while legal issues comes in organisation in that role of leader rises they give their major decisions such as consulting with legal advisors and find out root cause of the problem and give ultimate decision about the issue. Social barrier:The company has to focus on society as well. Change should be done while keeping society in mind and should not affect any group of people. Here leaders has to go through all the points whether they are affecting thesocietyor not. So it is essential for leader of TESCO to develop strategies and plans according to requirements and demands of the society which isare changing rapidly. By this respective company able to fulfilneed and demand of customers properly.The social barriers are major concern before Tesco because consumers taste and preferences changes rapidly in that case leader give instructions to their subordinates to build products and services according to the consumer choice and preferences. Lack of effective communication:Communication also proves to be the big barrier in the company by which changes are not accepted. Communication should be very clear and in the way that could be easily under stable by the employees. Due to lack of communication both leader and their team are not able to communicate with each other properly because of that it is difficult for the leaders to understand employees and their behaviours which will impact decisions of the leadership in making plans, policies and also guide as well as influence them to perform effectively.Communication is an important tool that helps leader and manager to share knowledge and information to each other. In case of Tesco their communication structure should be determined by leaders and subordinates follow it in proper way so that desirable outcomes should be achieve. The force field model It is an important model to study any change in the management. It provide list of changes that are need to be tackled by the business(Smits and Bowden, 2015). The favourable forces are: Step-1 Plan:Tesco is planning to implement new as well as upgraded technology in their company so that they can produce more standard quality products in minimum time and meet the 7
requirements of the customer.In case of Tesco, while implementing changes leader evaluate each and every attribute and give knowledge to their subordinates about necessity of change. Step- 2 Forces are in favour for change:These forces want the changes to be implemented in the organisation and also have impact on the decision making of leader. Customer wants:The first force which is in the favour of change is customer wants and needs. Customers always want something new which is different from others and they can take advantage for the same(Iles, 2017). The change which Tesco wants to implement is resale of old product and exchange them with new. As customer always want to use the product which is new so they also want company to implement those changes in the organisation. Therefore it is required for leader to take major decision of changes in their firm on the basis of customer's requirement and need so that they can provide them quality services easily. Profitability: If change is implemented more and more customer are attracted towards the same which in turn will led to the profitability of Tesco.Thus, it is required for leader topay their maximum attention those activities that can modified in some small period of time as that help in grabbing customer's attention toward the firm. In that second stage of lewin's changes model leader plays major role to give favourable results and it helps in describe about advantages to these changes in organisation so leader are very much important for an organisation. Step-3 Forces against the change:This are the forces which are against the change in the organisation. The forces include are: Increase in cost:The cost is going to be increase because to implement the change company need to implement new staff or may be require to form a new department and also have to provide training for the same. Changes in website is also need to be done which would be very expensive.Therefore it is a important for leader to take claver decision that must be cost effective in term of hiring of new staff or implementation of positive changes. Lack of participation of staff:Employees are not always ready to accept the change because they are not sure whether they can implement the same in their task or not and 8
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also having the fear of job complexity(Soehner,2015). Thus, for a leader it is required to boost moral of individual and can improve their decision making for enhancing their own participation in business decisions. Step-4 Assign Score:Dueto themajorchangesin technologythefirmcan gain more profitability as well as accomplish their objectives effectively. Also meet the requirements of their clients. But italso, incur more cost and employees do not want to participate because of facing difficulties in job. Step-5 Analyse and Apply:It is analyse that because of changing technology respective firm can accomplish the demands of the consumers as well as earn more profitability. Also, they have to invest more money and influence their employees to participate so that they understand the changes and try to work effectively as per that. Tesco should provide training to its staff about this so that it can work to accomplish objectives. While implementing changes leaders are very much important to give proper education to subordinates and advantages of implementing these changes in proper way so that each individual can give their best at time of implementing changes. TASK 4 P5 Different leadership approach to deal with changes in the organisation To implement changes in Tesco leader uses the different leadership style in different situation. With change in company, leadership style should also be changed so that strategies can be implemented in an effective manner. Leadership style are used to motivate the employees so that they can accept the changes as well as also help organisation in implementing the same. Leadership style which Tesco follows are discussed below: Autocratic leadership style:This is the type of leadership where one member control all the decision. It means decision is centralised towards the top management. Leaders do notconsiderideasorviewsofanyofitsemployeesorsubordinates(Autocratic leadership style.2019).This style is applied by Tesco at the beginning when they want to implement the change but didn't have time to discuss with other co- workers. This leadership is very effective as employees work according to the leader. 9
Democratic leadership style:It is the type of leadership where subordinates are free to take their own decision(Kuipers. And et. al., 2014). This is used basically Tesco want to implement the changes but after concerning all other employees and are having plenty of time to implement. The leader is only having the final responsibility the main decision is in the hand of subordinates. Strategicleadershipstyle:Thistypeofleadershipisnotlimitedtoanytotop managementonly.Itisthepotentialtoinfluencemembersandalsoexecute organisational change. In this decision are taken and changes are implemented which create high performance in team. Charismaticleadershipstyle:Itisthetypeofleadershipwhichtransformsthe behaviourofothermembersbyeffectivecommunication.Tescousethistypeof leadership is used when changes are implemented on the immediate basis . Situational leadership style: It is the type of leadership which is most flexible and has the ability to adapt the changes. Tesco can use this style of leadership as it is best way to implement at any situation Team leadership style: It is the type of leadership which requires corporation among all the team members. The team should be very cooperative and must have a ability to understand each other. Tesco use this style when they need afford and team need to work together so that whatever change is done it can implemented in a correct way. The model use in leadership approach: Leadership with transactional model:Max weber, who was a 20thcentury german sociologist who commence extensive study on styles of leadership and divided it into traditional, charismatic and rational legal or bureaucratic. All these theories and concepts are very much important for an organisation to bring proper leadership styles in an organisation.It is one of the most common model used by people across the world. Certain task were assigned by leader to their employees. It basically focus on improving their employees and team. Tesco use this model when company want to implement the change without transforming their employees. Leadership with transformational model:Transformational Leadership started with James v. Downton and further researched by Bernard M. Bass that gives various ways for successfortransformationalleadershipandthatleadershipdemonstratestowards 10
authentication, strong leadership and idea that gives inspiration.In this type of leadership, leader must be properly educated as well as inspired. If this type of leadership is properly used this will lead to good productivity(Sundberg and et. al., 2017). Tesco use this model when they want their new products to be sold . CONCLUSIONS From the above study it has been concluded that Tesco wants to implement the change in technology in term of selling the old product and exchanging it with new one. This change will help the company in increasing the sales as well as profitability of the company. The SWOT and PESTEL analysis are used to study both internal and external drivers which affect leadership, team and organisation. Through this report, certain measures were also taken by the company to minimise negative impact of change in an organisation by study of Lewin's change management model company is able to know about the forces which are or which are not in the favour of company. Tesco is also going to apply different leadership style and model to study changes in the organisation. 11
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