Understanding and Leading Change

This assignment explores the influence of change on organizational strategy, the drivers of change, and ways to minimize negative impacts of change on organizational behavior.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION 1
TASK 1 1
P1 Comparison between two organization where there is influence of change on strategy 1
M1 Drivers of change and types of organizational change 4
P2 Ways by which internal and external drivers of change affect leadership, team and
individual behaviour 4
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour 5
M2 Apply appropriate theories and models to critically evaluate organisational response to
change 7
D1 Draw conclusions and recommendations with valid justifications for planning effectively
for change and applying change impact analysis 7
TASK 2 8
P4 Explain different barriers for change and determine how they influence leadership decision
making in a given organisational context 8
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making 9
D2 Critically evaluate the use of force field analysis in the context of meeting organisational
objectives 10
TASK 3 10
P5 Apply different leadership approaches to dealing with change in a range of organisational
contexts 10
M4 Evaluate the extent to which leadership approaches can deliver organisational change
effectively applying appropriate models and frameworks. 10
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management. 11

CONCLUSION 12
REFERENCES 13

INTRODUCTION
In order to sustain a strong position within marketplace, every organisation is required to adopt
required changes. For getting desired outcomes, business owners have to understand change and
change management in a proper manner. Change is defined as a phenomenon which leads
towards measurable shifts in business position of an organisation. This measurable shift can
either be advantageous or disadvantageous for an organisation depending upon the type of
change initiated by business (Alavi and Gill, 2017). This assignment is written in context with
ALDI which is a Germany based supermarket chain headquartered in Essen and Mulheim. At
present company is successfully operating at 10,000 stores in more than 20 countries. Company
has a combined turnover of more than 50 billion euros. This report will cover different
organisational examples where change has been carried out in organisational operation and
strategy. Different ways are evaluated in which external and internal drivers of change can
impact leadership, team and individual behaviour. Beside this, measures are discussed that can
reduce negative impact of change. Various barriers for change are discussed along with different
leadership approaches to deal with change in range of organisational contexts.
TASK 1
P1 Comparison between two organization where there is influence of change on strategy
Organisational strategy is defined as a dynamic long term procedure which maps the direction
that will benefits the company in achieving its vision and goals. Basically, it is an expression that
describes the manner in which a company is required to evolve over a time period so that its
expectations and desires can be fulfilled. Change in organisational strategy can benefits ALDI
towards new strategic directions which can help the firm in gaining competitive advantage over
rival companies. Change in strategy can benefit a firm in achieving high growth rates and
customer base due to which high profitability can be attained by company. Change in strategy
can be well defined by comparing different organisational examples. In this regard, ALDI and
TESCO is compared with one another (Alkahtani and et. al., 2011). In case of ALDI, company
prefers to take fast decisions so that control on market can be maintained where as manager in
TESCO prefers to watch out the strategies of rivals before taking a decision so that high
advantage can be enjoyed by company. In this regard, a comparison chart is mentioned below:
ALDI TESCO
Organizational
strategy
Senior
executives in
ALDI do not
prefer to share
data and
information
about company
TESCO believes
that to attain
desired
outcomes, a firm
is required to
sustain a strong
presence in

with media or
other business
personnels so
that no rival an
get advantage
form their
strategies and
planning.
Company
prefer to have
small stores
where every
employee gives
proper
consideration
towards the
needs of
customers. To
cut their
unusual costs,
company sells
only limited
items in their
single store.
Due to this
products and
services of
ALDI are low
priced as
compared to
other rivals like
IKEA and
TESCO.
Because of
these strategies,
workforce of
company also
prefers to
collect limited
stock in their
stores so that
maximum rate
of return can be
achieved. It is
analysed that
international
market. Major
strategy of
TESCO is to
offer those
products to
customers which
are in high
demand.
Company offers
discounts on that
products due to
which customers
prefer to buy
them in large
quantity. Prices
of products
offered by
TESCO are
genuine due to
which sales of
company are
good. In order to
attain more
positive
outcomes,
change initiated
by TESCO in its
organisational
strategy is
adoption of
measures that
will results in
sustainability. In
order to adopt
these change,
company
introduces new
products in
market which
are environment
friendly and do
not impact the
health of
individuals on

company is
getting high
benefits as
policies and
strategies of
company are
changed on a
regular basis in
accordance
with the
situation. Other
change in
strategy carried
out by ALDI is
providing
garden
furniture,
kitchen and
bathroom
accessories at
their stores on
special days. As
these products
are not usually
available on
grocery stores,
sales will
expand
considerably.
their usage
(Anderson,
2016).
Company has
also adopted
market
development as
a strategic
change where
their existing
products will be
sold in new
market place due
to which sales
and customer
base will be
enhanced
considerably.
Operations Products of
ALDI are found
at different
operational
stores where
customers can
buy them either
by cash or
cards.
Distribution
system of
company is
robust where
customers are
provided
required
Operational
processes in
TESCO are
organised but
there are some
issues which are
faced by
company. One
of them is
overflow of
inventory that
results in high
costs of
warehouse. This
problem takes
place because

product on right
place in a
timely manner.
This whole
process is
managed by
company with
the help of MIS
and ERP
software that
helps in storing
all required
information
about
customers. Due
to good
performance of
competitors,
manager in
ALDI has to
change the
operations of
company by
modifying them
according to the
changing
trends. In this
regard,
organisation is
adopting
modern
technology by
updating its
machines and
software so that
raw material
can be
transformed
into final
products in a
simplified
manner.
Company has
adopted six
sigma so that
manager of
company orders
new stock on
customer
demand without
clearing up the
old stock. This
has resulted in
excessive
wastage of
products. To
overcome this
situation,
company has
adopted some
operational
changes such as
adoption of lean
methodology.
This will helps
the company in
reducing their
wastage without
performing any
complex
procedure.
Company is also
enhancing its
presence on
digital media, so
that customers
can get easily
access to
products and
services without
physically
appearing at
stores. In this
regard, company
has formulated
different mobile
applications
which have
different
sections in

defects and
errors in final
product can be
reduced due to
which
satisfaction
level of
customer can be
enhanced.
accordance with
the products
(Bevan Plsek
and Winstanley,
2013).
M1 Drivers of change and types of organizational change
In an organisation, there are two kinds of change which can be widely encountered. These are
internal and external drivers of change. Internal drivers include policies of organisation,
employee law and contracts, working hours etc. External drivers involves societal norms,
fluctuation in current, varied interest rates, change in technology, political implications etc.
Types of organisational changes
Transformational change: In these change, company implement strategy which is in favour of
both company and new change. In case of ALDI, company can terminate its extra workforce so
that new strategies can be implement without facing shortage of money.
Organisational wide change: In this, firm changes its internal process on a large scale in
accordance with the change so that only advantageous policies and strategies can be adopted
(Doppelt, 2017).
P2 Ways by which internal and external drivers of change affect leadership, team and individual
behaviour
Different external and internal drivers of change can considerably impacts the leadership,
individual behaviour and team behaviour in a direct manner. In respect with ALDI, different
internal and external drivers are mentioned below:
Internal drivers:
 Financial management: Capital and funds are vital needs for a company in order to
perform their business operations in a desired manner. Shortage of funds and finance can
impacts the working of individuals and teams in a negative manner as they will not be
able to work in an organised manner. Appropriate financial resources will results in
proper leadership my manager due to which organisational productivity of company will
enhance.

 Resources: They directly impacts the leadership, team and individual behaviour within a
firm. If company have appropriate resources then all the work can be carried out in a
timely and systematic manner due to which workforce will deliver their duties in a proper
way either as a team or individual. If company faces shortage of resources, then it will
became difficult for ALDI to perform its business activities due to which organisational
productivity will reduce that will impacts team and individual behaviour in a negative
manner (Espedal, 2017).
 Culture: It involves belief, faith and values that are followed by people working in a
workplace. Improper culture at ALDI will demotivate employees to perform well as an
individual or team. Also, if culture will not be suitable, leader will not be able to manage
workforce appropriately due to which organisational productivity and profitability will
reduce in a considerable manner.
External drivers:
 Political: Change in political aspects can impact the funds and resources. ALDI is
required to follow different policies and rules that are formulated by government. If these
laws will not be followed then company may have to pay fine and taxes that will results
in reduced brand image of company. This will reduces the individual and team
performance of employees due to which profitability will reduce considerably.
 Economical: These aspects involve customer behaviour, inflation rate, interest rate etc.
that can impacts the leadership, team and individual behaviour. Performance of
individual and team is reduced when purchasing power of consumers in less. Due to
changes in economical conditions, company can cut down its expenses of hiring new
employees.
 Social: These factors impacts the needs and requirements of products in marketplace. As
demands of services & products changes on a considerable basis, due to this leader in a
company is required to change its strategies according to market demand. This will
benefits the company in gaining competitive advantage due to which individual and team
behaviour will improve that will results in improved productivity (Fyke and Buzzanell,
2013).
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
To reduce the influence and impact of change on a firm, there are different measures which can
be adopted by the manager of ALDI. Some measures to decrease the negative impact of change
are specified below:
 Involvement of employees in change process- If staff of ALDI will be included in the
change process, they will feel more value and tries to adopt that change in a more
confident and positive manner. This will builds a strong relation between workforce and
employees due to which negative impact due to change will reduce considerably.
 Expansion of communication channels- If manager in ALDI wishes to implement
change in a proper manner, it is essential for company to expand their communication

and interaction so that employees can discuss with each other if they faces some
difficulty or problem due to the change (Glass and Cook, 2016).
One of the impacts due to organisational change and required measure to reduce the impact are
mentioned below:
Employee turnover: Workers which are working in ALDI from a longer time period will prefer
to work there only as they are well familiar with the work and organisational culture. But due to
new changes, their interest in work can reduce as they will face difficulty in adopting those
changes. This can results in employee turnover which will reduces the performance, productivity
and profitability of ALDI.
For minimising the impact of change on employees, manager in ALDI can offer benefits, bonus,
incentives and rewards to the employees on the basis of their performance and hard work. This
will encourage workforce to work efficiently by adopting new changes. Other than that giving
proper training to workforce to deal with changes will also helps in retaining employees for long
time period.
PCDA model is a framework that can be used by manager in ALDI to reduce the negative impact
of change on the working of an organisation. In context with ALDI, model is defined below:
PCDA model: This model covers four aspects that helps in identifying different problems
associated with change. This model will helps in improving administration of ALDI by assisting
in appropriate and timely decisions.
Planning: In this step, manager in ALDI will identify problem and errors. In accordance with
that required change is carried out which will helps in sustaining a systematic structure at
workplace (Hallinger, 2011).
Do: Here manager formulate and implement the needed solutions so that impact of change can
be managed in a proper manner.
Check: During this step, manager in ALDI is required to confirm the actual result and compare it
with the expected outcomes.
Act: This is the last step where different ideas and solutions are addressed so that problems can
be sorted out in an organised manner.
M2 Apply appropriate theories and models to critically evaluate organisational response to
change
Organisational response to change can be acknowledged with the help of system theory. It is an
effective theory which can be adopted by ALDI in order to overcome the impact of change in a
systematic and organised manner. This theory can benefit ALDI in resolving the issues and
problems which are faced by employees while performing their duties. As per this model, ALDI
needs to relay on governmental and organisational policies so that changes can be carried out in

an expected manner. Also, this theory will focus on solving problem of employees in a
systematic manner. But problem with this theory is that it only focuses on those aspects which
stabilizes the system and this theory supports only slow and steady change but not radical
changes (Kotter, 2012).
D1 Draw conclusions and recommendations with valid justifications for planning effectively for
change and applying change impact analysis
From above mentioned information, it is concluded that there are two drivers of change i.e.
internal and external drivers. These factors plays a considerable impact on the working of ALDI.
Internal drivers will benefits company in managing their funds, resources so that high
profitability can be acquired. External factors such as political, social, technological and
economical will assists in understanding external business environment in a proper manner. With
the help of these drivers company can manage its materials, man power that will results in
improved market shares.
Some recommendations are given below:
 Before carrying out change, a company is required to identify its needs by consulting
with employees. This will allow the employees to feel that they are valuable for company
which will motivate them to deliver their best performance.
 Manager in company is required to forecast post and pre impact of change on
organisation and workforce (Latham, 2013).
TASK 2
P4 Explain different barriers for change and determine how they influence leadership decision
making in a given organisational context
Barrier for change are defined as the constraints which takes place during the change process.
These issues and barriers impacts the working and decision making of organisation in a
considerable manner. In respect with ALDI, these barriers are mentioned below:
Poor employee participation: In order to implement changes in a desired manner, it is essential
for the workforce of a firm to participate in an active and confident manner. Without appropriate
participation, it is not possible for the manager of company to carry out required changes. If
employees will not participate actively, they will feel uninterested that will results in enhanced
employee turnover. If ALDI will offer required information to the workforce then they will be
able to understand the vision of company in a more clear manner. Hence, if employees will be
treated as a valuable asset of company only then they will accept decision of management in a
positive way.

Rules and regulations of government: Different policies and rules which are formulated by the
government also acts as a barrier while implementing change. These barrier reduces the
performance and profitability of company in a considerable manner. In order to gain desired
results by implementing changes, company is required to follow rules which are formed by
government. Following these rules and policies will benefits ALDI in capturing large market.
This barrier has also impact on the decision making process of company as strategies and
policies of ALDI will be changed if government policies will be changed (Nelson‐Brantley and
Ford, 2017).
Improper training and development: This aspect is also a big barrier in implementing change. If
workforce of ALDI is not able to understand about change, then it is not possible for them to
adopt them change in a efficient and systematic manner. Due to which organisational
productivity will reduce. It is essential for the manager in ALDI to provide essential training to
employees so that they can implement new change without facing any difficulties. If employees
will be familiar with changes, they will easily accept the decisions taken by management and
leaders.
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making
(Source: Force Field Analysis, 2018)
Forcefield analysis: According to this analysis, large number of individual faces problem while
adopting change. According to them, adopting change will be of no use. This analysis will
provide appropriate framework to LADI so that change can be carried out in an organised
manner. This analysis benefits the manager in ALDI to take effective decisions by identifying
which forces are in favour and which are against. This model will also specify the requirement of
change in the professional life of employees (Quinn and et. al., 2012). There are two kinds of
forces which are considered in this analysis i.e. driving and restraining force. Restraining forces
are the issues that hinders change. It impacts decision making in a negative manner. Driving
forces assists change and helps leaders in ALDI to take effective decisions by formulating
required strategies.
D2 Critically evaluate the use of force field analysis in the context of meeting organisational
objectives
Force field analysis is a vital tool for companies as it supports employees in attaining a common
goal. This analysis is easy to implement and give quick results against obstacles. But in case of
moral situations, this analysis is not influential as hindering forces increases the stress level
among employees (Salman and Broten, 2017).
TASK 3

P5 Apply different leadership approaches to dealing with change in a range of organisational
contexts
Leadership is very important for any organisation in order to implement the change in the
working style of employees. The leaders should use effective leadership style so that they can
motivate their employees for accomplishing the desired organisational goals. Some of the styles
which can be used by the leaders of Aldi are discussed below:
Democratic Leadership: This style is used by leaders when they have to considered the
suggestions and opinions of their employees for taking the decisions using their active
connections. Through this style, leaders of Aldi can provide their maximum support and efforts
for enhancing the working performance of the employees as their issue and problems can be
reduced using the shared ideas of other employees (Storey, 2016).
Situational Leadership: It is an important style which is used by the leaders for handling the
different challenges and situations. By following this style, leaders of Aldi can adopt suitable
style which can be used for resolving the complex issues or situations that are impacting the
performance of their employees. Through this style, leaders of Aldi can implement the change
properly without any issues as these leaders have the ability to determine and understand the
situations so that the style can be changed accordingly.
M4 Evaluate the extent to which leadership approaches can deliver organisational change
effectively applying appropriate models and frameworks.
Lewin's Change Management Model: This tool is used by the companies such as Aldi when
they have to adapt the change in their organisation with the help of three stages as discussed
below:
(Source: Lewin's Change Management Model, 2018)
 UnFreeze: It is the first stage in which employees are encouraged by management for
adapting the change in their working for getting improved results. Leaders of Aldi are
using transformational leadership approach for motivating the employees to adapt change
so that their performance can be enhanced.
 Change: It is the second stage in which employees adapt to change and modifies their
working style. IN this stage, Leaders of Aldi can use the participative leadership style for
resolving the issue of change by using the ideas from employees.
 Refreeze: It is the last stage in which employees completely adopts the change and
becomes happy in their working. Leaders of Aldi can use supportive leadership style so
that they can support the employees in executing their assigned work (Tang, Lu and
Hallinger, 2014).

D3 Critically evaluate the effectiveness of leadership approaches and models of change
management.
According to Alavi and Gill, (2017) Lewin's Change Management model is essential for the
organisation in maintaining and managing the change in proper manner. By using this model,
firms such as Aldi can motivate their employees for adopting the change in their working so that
the organisational goals can be achieved in predetermined time. BY using this model, employees
of Aldi can perform their work without facing any issues as leaders are supporting them using
the supportive style of leadership.
According to the Anderson, (2016) This model of change is not fruitful for the organisation such
as Aldi in different situations. This model cannot be applied to every situations in adopting the
change due to which it can fail in managing the change.
CONCLUSION
From the discussed report, it can be concluded that changes are essential for every organisation
in order to attain a firm position within market place. Without adopting changes, it is not possible
for an organisation to deal and satisfy the changing needs of customers. There are internal and
external drivers of change that impacts working of employees as a team or individual. Leaders in
a firm can implement, theories like Kotter model of change to manage barriers that takes place
while implementing change. Decisions of management is highly impacted with changes and
organisational strategies and policies are formulated in accordance with those changes.

REFERENCES
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PEST Analysis. 2018. [Online] Available through.
<https://www.visual-paradigm.com/guide/strategic-analysis/what-is-pest-analysis/>./