This report covers the impact of changes on the operations and activities of Vodafone, a UK based telecommunication business organisation, and the comparison between various organisations in the context of the impact of changes on their structure and operations.
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Understanding and Leading Change
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Table of Contents INTRODUCTION...........................................................................................................................1 LO1..................................................................................................................................................1 P1. Comparison between enterprises in context of impact of changes..................................1 M1) Different drivers of change and type of organisational change they have affected.......4 LO 2.................................................................................................................................................4 P2) Evaluationof affect of internal and external drivers of changes on leadership, team and individual behaviours.............................................................................................................4 P3) Measures to minimize negative impacts of change on organisational behaviour............7 M2) Critical evaluation of theories.........................................................................................8 D1) Conclusion and recommendation...................................................................................8 TASK 3............................................................................................................................................8 P4. Barriers for Change.........................................................................................................8 M3. Force field analysis.........................................................................................................9 D2) Critical evaluation of force field analysis...................................................................10 LO 4.............................................................................................................................................11 P5) Different leadership approach.......................................................................................11 M4) Evaluation of leadership approach..............................................................................12 D3) Critical evaluation of effectiveness of leadership style.................................................12 CONCLUSION.............................................................................................................................12 REFERENCES..............................................................................................................................14
INTRODUCTION Changes are elaborated as a process under which a thing is done in a completely different manner. Changes such as political, operational, structural and technical changes can affect an organisation for a long run and it may have some negative or positive impact upon the overall functioning of a business organisation. For effective and smooth running of an organisation, an enterprise have to cope itself with changes that are existing in an organisation(Al Barwani, Flores and Imig, 2018). This report is based upon Vodafone, which is a UK based telecommunication business organisation and it provides IT and telecom services to people in around 150 countries. This report covers the way in which changes prevailing in market has affected the operations and activities of this enterprise and the way in which this enterprise had deal with these changes. Further, it covers comparison between various organisational in context of impact of changes upon their structure and operations. It also covers evaluation of different manners in which external and internal forces affect a business and measures that can be taken to minimise its negative impact. Further, it covers different barriers of change and its influence upon leadership decision making. At the end, it covers various approaches of leadership that an enterprise can use in order to face these changes. LO1 P1. Comparison between enterprises in context of impact of changes Organisational changes is determined as any kind of alteration which occurs in the total working environment and it is recognised as one of the most common characteristic of a business entity(Bastin, 2019). A business enterprise have to develop its adaptability towards the changes or else it will left behind or it will completely swept away due to heavy forces of changes. There are certainchangessuch as structuralchanges, technicalchanges, changesin tastesand preferences of customers an many other such things. It is important for a business enterprise to cope itself with these changes for a long run in market. Here, the comparison between two organisations is donein order to identify the impact of changes upon strategies and its operations. The first enterprise is UK based telecommunication company, Vodafone and second is US based AT&T which also deals with telecom services. ChangesVodafoneAT&T 1
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Technological Changes Need-Withrapidachievementin technology customers desires to get a much faster network thus, it become necessary for Vodafone to come with new and fast network with better speed andefficiency.Therefore,Vodafone idea is preparing for coming up with 5G technology with better and new techdevelopmentinorganisations. The main reason behind this change is providing better user experience to its client. Strategy adopted- For providing this faster network, strategies are adopted by Vodafone for building additional capabilities through the integration of IT and network. This integration also providebettertransformingof provisioningandbilling.Massive investmentsarealsomadeby Vodafone in its network to provide a largescaledevelopmentofmassive mimo (Vodafone Idea preparing for 5G,2019). Impact on operation- this change has createdsignificantimpacton operations of Vodafone is it merging two networks thus, it has planed to exit more than 90000 sites to reduce the chances of duplication(Boyatzis and Need-astheworldischanging fasterandfasteranorganisation can remain in market of telecom servicesthroughmaking continuousimprovementsand changes.AT&Tishavinga mission to bring the customers the technology of tomorrow. Thus, a new wireless technology (like 5G) is going to become a part of AT&T whichenablesthebetter experiencetocustomers(AT&T, 2019). Strategyadopted-Forachieving themissionoftechnological improvement,useofartificial intelligenceanddatascienceis made by AT&T. Strategies are also made for cyber security and safety of network. For better results use of allied technologies like software definednetworking,edge computing and others technologies are also made by AT&T. Impactonoperation-the terotechnologicalchangeis creatingimpactonoperationof AT&T as it require more efficient and skilled people for handling and meetingtechnicalrequirements. 2
Cavanagh,2018). Proper trainingis also provided to employees to reduce its capital and operational expenditure. Propertraininganddevelopment programmesareconductedby AT&T to sharpen the skilled of its employees and to make them more visionariesand inventors so that constantevolutionintechnology can be made. Organisational change Need-organisational changes is made in Vodafone to reduce its cost and to improve its process and operations so that better competitive strength can be achieved. The new structure will allow betterconsumerandenterpriseplan and accelerate the growth of unified communicationandprovidegreater efficiencies from scale which create a betterimageforVodafoneinthe market. Strategyadopted-forbetter organisationalstructureVodafoneis crestinganexpandedgroup commercial function which comprises brand,consumer,terminals,unified communication, customers operations andpartnermarkets.Asper Vodafone'sneworganisational structureitsCEO,CFOandother development directors are responsible foroverseeingstrategiesrelatingto investment of Vodafone. Need- the main reason behind the organisationalchangeofany organisationistomeetworking conditionsofitsenvironment. Modernbusinessenvironmentis highlydynamic,adaptiveand versatile thus, it become necessary for AT&T to make regular changes initsorganisationalstructureto meetthecurrentsituation otherwise it can be left behind or swept away from the market. Chge in management structure is made for having better decision making system. Strategyadopted-for implementation of this change role and responsibility of some of the directors and executives of AT&T is altered or modified and a new operatingcommitteeisalso formed. Impact on operation- for proper implementation of this change, role 3
Impactonoperation-thenew organisationalstructureprovidea betterdecisionmakingprocessas responsibilityregardinginvestment andotherstrategiesisprovidedto CEO and CFO. It will improve the efficiencyandeffectivenessof operation of Vodafone and also make them more cost effective. and responsibility of all directors andchiefmembersareproperly reviewed and modified which has improvedthemanagementand decisionmaking in organisation. Thus,improvetheefficiencyof operation and process in AT&T. M1) Different drivers of change and type of organisational change they have affected Drivers of change are the internal or external pressure or factors that shapes changes in an organisation. The different drivers ofchange and type of organisational change they have affected are: Technology- External innovation and advancement in technology force an organisation to bring relevant technical change in its operations. For meeting the growing expectation of its clients and to have a balance with rapid innovations, Vodafone has made significant change its technology to provide a better network(Curran and Hesmondhalgh, 2019). Competition- High level of competition and pressure of reducing cost and increasing efficiency of operations pressures an organisation to bring some organisational change so that more competitive strength can be gained. Organisational change are made by Vodafone to increase efficiency of its operation and to become cost effective so that it can handle the competition in business environment. LO 2 P2) Evaluationof affect of internal and external drivers of changes on leadership, team and individual behaviours internal and external drivers of change creates a significant affect on leadership, team and individuals. Affect drivers of change on leadership, team and individual behaviour in Vodafone and AT&T is provided below: Internal factors 4
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Organisational structure-It is a model or framework that outline the flow of activities and decide the direction of work for achievement of goals of a company. Organisational structure of both Vodafone and AT&T is quite simple and role of responsibility of all members are clearly defined(Dawson, 2019). Thus, it become easy for leaders to implement any new change. Clarity in organisational structure motivates employees and boost morale of team which lead to effective execution of change in the organisation. Communication-Effective and uninterrupted flow of information is necessary for execution and implementation of any change. Effective communication ensure transfer of relevant information among all employees and team member thus, provide a medium for leaders toproperlyguidethedirectitsemployees.Thuseffectivecommunicationensuresbetter execution of change through enhancing motivation and knowledge of employees regarding the change. Effective communication is also beneficial for leaders as it reduce the scope of conflicts and error through properly communicating role and responsibility of all team members and staff (Wang and et. al., 2019). External factors For better evaluation of external factors use of PEST analysis is made by both AT&T and Vodafone and an analysis of their impact on leadership, team and individual behaviours is also made(Fenwick and Johnston, 2019). PEST analysis It is a model used by a company for analysing and monitoring external effects and it also reflects its impact on leadership, team and individual behaviour. BasisVodafone (UK) AT&T (US) PoliticalIncrease in government intervention has enhancedpressureoninternational brands. The main markets of Vodafone includesregionsofEurope,Asia pacific, Middle East, etc. Increase in level of government control in these area (especially in UK) has increased the role and responsibility of leaders USishavingsecondlargest democracy in the world and having a stablepoliticalenvironmentthus, facilitate good working environment fororganisations.Thishasreduced pressure on leaders of AT&T and thus they can make use of transactional leadershipstyleistomotivateits 5
and they have to take proper decisions on the basis of government rule. Use of democratic leadership style is made by Vodafone to provide better freedom to itsemployeeswhichreducethe pressureofgovernmentplansand policiesandmaintainhealthy atmosphere in organisation. employees.Employeesalsofeel positiveandmotivatedastheirin stability in working conditions. EconomicMain markets of Vodafone are India, UK, Spain, Italy, etc. which are mainly having stable economic conditions and better growth rate thus, it become easy for leaders of Vodafone to motivate its employees.Useofrewardsand incentivesare also made which lead to positive attitude of individuals and employees. USishavinglargesteconomyof worldintermsofnominalGDP (Garza, 2018). But in resent years a fearofrecessionhasincreasedin economy of US which increased the roleofleadersofAT&Ttobuild moraleofitsemployees.Slow economy is having a negative impact onattitudeandbehaviourof employees. SocialRapid changes are taking place in trend anddemandofsocietyofUKand customers are having desire for a better network which has increased the role of leadersinmotivatingemployeesfor providingbetterservicesandhigh speed network to fulfil the desires of customers(Tombetti and Mason, 2018). US is the third most populous country oftheworldwhichcreatean opportunity for AT&T for grabbing more customers. Growing demand of onlinevideocontentisincreasing whichcreateanopportunityfor organisation,thusleadersshould make effort to motivate its employees. Better growth opportunity is brining positive attitude in employees. TechnologicalUKishavingagoodassessto technologyanditsenvironmentis US is a global leader in science and technology thus, it become necessary 6
markedwithrapidinnovationand advancement thus, it become necessary for leaders of Vodafone to important better strategy on the basis of current technologicalneedssothata coordinationcanbemadewith technologicaladvancementForthis purpose regular guidance and training is provided to employees and team to enhance their skill and motivation level. for leaders of AT&T to motivate its employeesforrapidchangeand improvementintechnology.Italso developpositivebehaviourin employees and team as better training is provided to enhance their skills. P3) Measures to minimize negative impacts of change on organisational behaviour Change is a complex process which have both negative and positive impact on operations of an organisation. Vodafone and AT&T is are going through technical and organisational change thus, to minimize negative impact of theses change on organisational behaviour use of PDCA model is made. PDCA model Use of this model is made by organisation for continuous improvement in business operation through proper execution of change(Green and Daniels, 2019). PDCA is repetitive four stage modelwhich isadoptedby Vodafone andAT&T for improvingqualityand effectiveness of its process trough making use of a more scientific model for implementation of change. The different stages of PDCA model are as follows: Plan- It is the initial stage where problems are identified and efforts are made to understand the main cause of problem. Timely market research are conducted by Vodafone to analysis the current scenario and circumstance of market so that lack in efforts can be identified. It is analysed by Vodafone that rapid technical changes are going on in market thus, it also need to make relevant changes in its operation. AT&T is having a mission of providing best technology to its customers thus, it is also planning technical innovation and organisational change in its organisation. Do- In this stage of PDCA strategies and most suitable solutions are made to gauge effectiveness of organisation. As per current market situation Vodafone is adopting strategy for 7
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technological innovation and better organisational structure to enhance its performance and efficiency. AT&T is also making technical and organisational change to fulfil the desire of its clients(Grossman, 2019). Check- It is the stage where results of strategy and planning are measured and compared to confirm the results through making comparison between before and after performance. Both Vodafone and AT&T has provided training to its employees to ensure better results and use of control and monitoring measures are made to keep a check on performance of strategy and plans. It lead to reduction in flaws and error during the implementation of change thus, minimize the negative impact of change. Act-This the last stage of PDCA model where all the planning and change are implemented in a practical way. Information is provided to all stakeholders and other interested party about the change in process and proper documentation and reporting about the change is also made(Hobbs, 2018). Under this stage an evaluation is made about success and failure of change. At this stage recommendations are also made for improvement in plan and strategy. Both Vodafone and AT&T has made changes in its technical and organisational structure which is beneficial for them and providing good result as more customers are attracted for better services and fast network. M2) Critical evaluation of theories Use of PEST analysis is made by both organisation for analysis of its external factor and to evaluate the their impact on leadership and individual behaviour. Stable political conditions of US are beneficial for AT&T thus, use of transactional theory of leadership is made(Scott, 2018). Economical conditions of UK are fast growing and stable which facilitates use of incentives and rewards by Vodafone to motivate its employees. Use of PDCA model is made to have a better planning, implementation, check and control on efficiency and implementation of technical and organisational change in Vodafone and AT&T. D1) Conclusion and recommendation It can be concluded that technical and organisational change in both organisation is successful and effectively implemented as it lead to better operation and process which makes Vodafone and AT&T more cost effective and also attract large number of customers for their advanceandinnovativetechnology.Furtherrecommendationcanbemadeforbetter implementationofchgethroughmakingeffectiveuseoftheorieslikePDCAandother 8
approaches which provide proper framework for planning, strategy formulation and execution of a change. TASK 3 P4. Barriers for Change Change is necessary and important for all organisation as it allow an organisation to and its employees to learn new skills, explore new opportunities and also enhance its creativity and productivitythatultimatelybenefittheorganisationthroughnewideasandincreased commitment(Huesing, Johnson and Ludema, 2019). Implementation of change is never easy for any organisation as it include very complex and crucial processes like support of management, employeeinvolvement,propercommunicationofchange,implantation,etc.Thus,before execution of any change it is necessary that barriers of change should be properly analysed so that change can be implemented effectively. The possible barriers that can be faced by Vodafone while execution of change are as follows: Lack of support from employees- It might possible that employees are not in favour of change and having a negative attitude towards its implementation. The lack of support can be due to lack of information about advantage of changes or it might possible that employees are habitual with old process thus, does not want to change its old method as it can increase complexity and work load. To handle this barrier, leaders of Vodafone should properly provide all the information to employees regarding the positive aspects of technological and social change. Leaders of Vodafone should also take effective decisions for providing training and developmentprogrammesaboutnewtechniquessothatemployeesbecomehabitualand comfortable with that technique and change. Thus, this barrier of change can be eliminated by Vodafone through providing proper training to employees. Ineffectivecommunication- Lackof proper comminationalso createa barrier in implementation of change as relevant and authentic information about change is not get properly transferred between managers and workers which reduce the morale and interest of workforce in implementation of change(Janfada and Beckett, 2019). Leaders of Vodafone should establish proper communication channel among employees and management so that positive as well ass negative aspects of change can be easily communicated. It also facilitate better decision making through proper evolvement of workforce which increase the efficiency of change. Effective 9
communication also ensures proper guidance and supervision in Vodafone that motivates employees for better execution of social and technological change in the organisation. M3. Force field analysis Vodafone is coming up with social and technological change in its organisation thus, it become necessary for it to properly analysis the barriers and driving and resisting forces. For this evaluation use of Force filed analysis is made. Force field analysis it is method used for evaluating and listing the forces some of which are against of change while some forces favour the change(Saleh, 2019). The different deriving and restraining forces in context with change made by Vodafone are provided below: Driving Factors:These are the forces which are in favour of a change and drive a organisation for easily adopting a change. In context of Vodafone, stable economic environment and innovative social culture of UK are the driving force which creates positive environment for brining technical and organisational changes to fulfil the desire of society. Desire of customers for fast network is also important driver for change which lead to adoption of technical change by Vodafone(Kotlar and Chrisman, 2019). Use of effective research and development is made by Vodafone for proper execution of technical and organisational change. Proper training and motivation is also provided by leaders to guide and direct its employees for better execution of change which is also act as a driving factors for Vodafone. Restrainingforces-Thesefactorscreatesbarrierandrestrictthechangeinan organisation. These forces mainly reflects the problems and issues that can be faced byany organisationwhileimplementationofanychange.ForVodafone,lackofsupportfrom employees and ineffective communication channels are the restraining forces which hinder or createissuesinimplementationoftechnicalandorganisationalchange.Ineffective communication lead to interrupted flow or transfer of information which lead to creation of chaos and conflicts. These issues can be solved by Vodafone through providing proper training and establishing proper channels of communications in organisation so that changes can be made easily. D2) Critical evaluation of force field analysis Force field analysis provide knowledge about various driving and restraining force which provides an opportunity for organisation to take corrective action to meet and handle the 10
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restraining forces. Stable economic conditions and technological enrichment in UK are the driving factors of change for Vodafone which lead to effective implementation ofchange but lackofsupportfromemployeesandineffectivemodesofcommunicationareactingas restraining forces which hinder execution of change in Vodafone. LO 4 P5) Different leadership approach UseofvarioustypeofleadershipstylearemadebyVodafoneforeffective implementation of organisational change as per the prevailing situation and conditions. Use of leadership style are made to motivate and provide direction to employees so that implication and affect of change in organisation can be easily handle. The leadership style use by Vodafone for executing change in organisation are as follows: Democratic leadership Under this leadership approach final decisions are made by leaders and mangers after due discussion with employees and team member i.e. participation of employees are allowed in decision making process(Lambert, 2018). Use of this style is made by Vodafone to enhance the creativity and motivation level of its employees. Proper evolvement of employees in decision making process motivates them for effective execution of change. AdvantagesDisadvantages This leadership style increase productivity and performance of employees through creating a better understanding and relationship among employees and leaders. Thisleadershipapproachisquitetime consumingandcreatesdelayindecision making as opinion and views of all employees is taken. Autocratic leadership under this type of leadership style all the decision are taken by leaders and mangers according to their own understanding and will. Participation of employees are not allowed in decision making process(Maharaj, 2019). Use of this leadership style is made by Vodafone at the time of some adverse situation when fast decision making is need regarding any urgent issues. Use of autocratic leadership style facilitates quick and fast decision making which lead to timely implementation of imperative change in Vodafone. 11
AdvantagesDisadvantages Autocratic leadership provide better control of leaders in decision making and strategy formulation and also reduce the time taken for making any urgent decision(Nagorny- Koring, 2019). Underthisleadershipstyle,employeesfeel bounded with instruction of leaders thus reduce theirmotivationlevelandalsoleadtojob dissatisfaction which hamper their performance. M4) Evaluation of leadership approach Leadership approaches and theory plays a crucial role inimplementation of any change in an organisation as they lead to better motivation and guidance of employees. Democratic leadership style is used to enhance the creativity and innovation level of employees and proper participation of employees are also allowed thus, it lead to better execution of organisational and technical change. Autocratic leadership lead to demotivation and also hamper creativity of employees so that use of autocratic leadership style for implementation of technical change is not suitable. Use of autocratic leadership style can be made for execution of organisational change as it lead to fast decision making process. D3) Critical evaluation of effectiveness of leadership style Leadership theory and styles provide a effective way to leaders for implementation and execution of any change. Leadership style adopted by Vodafone are effective in meting in its change as use of democratic leadership is made by Vodafone to enhance the creativity and participation of its employees in decision making. This lead to better views and opinion which can be used for better implementation of change and also provide new ides for future. Thus use of democratic leadership style for implementation and execution of technical and organisational change is effective in Vodafone as it has developed a positive and more friendly environment at workplace which lead to effective execution of change. CONCLUSION From this assignment it can be concluded that every organisation need to make some changes in its operations and structure to keep a balance with changing environment. Theses changes can be technical or organisational change as per the situation and growth plan of 12
organisation. Use of PEST analysis is made to evaluate the external factors and drivers of change how they impact the leadership and individual behaviour. PDCA model is used to minimize the negative impact of change in an organisation. Lack of support from employees and ineffective communication are some barriers which are faced during execution of a change. Use of different leadership styles are made to motivate and influence the attitude of employees for effective implementation of change. 13
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