Effective Leadership for Organizational Change

This assignment delves into the crucial role of leaders in fostering positive organizational change. It emphasizes the importance of strategic decision-making by leaders to boost profitability and achieve set objectives. Additionally, it highlights the significance of effective leadership in minimizing potential risk factors within an organization.

UNDERSTANDING
AND LEADING
CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Impact of change on organisation's strategies and operations...............................................1
P2 External and internal drivers of change which affects leadership, team and individual
behaviour within an organisation................................................................................................3
P3 Measures to minimise negative impacts of change on organisational behaviour..................4
TASK 2............................................................................................................................................6
P4 Different barriers for change and how it influence leadership and decision making............6
P5 Leadership approaches for change in an organisation...........................................................7
CONCLUSION ...............................................................................................................................9

INTRODUCTION
In today's scenario change is going in a rapid speed. All the companies are becoming very
competitive in nature. They are using new tools and techniques for the advancement of their
businesses. Thus, it is necessary to go along with the current market situation (Understanding
and Leading Change, 2017). Change can happen in context with external and internal
environment so, it is essential for organisation to accept all the changes into positive manner.
Coca – Cola and Pepsi both are leading companies who sell drinking beverages which includes
concentrated drinks, zero diet coke etc. which is enhancing their sales and profit are increasing
day by day. Under this report, change leaders and its concept along with skills are mentioned
here. How leaders perform their task and make some modifications according to organisations
will. In addition researcher will get to know about appropriate methods to maximise their
benefits.
TASK 1
P1 Impact of change on organisation's strategies and operations
Changes are happening drastically according to the present market demand, it has
increased the market value of any company. Thus, organisation should accept modifications
accordingly so that they can enhance their business and plan for a long period of time. Changes
can be positive or negative it depends upon the firm how they accept those alterations. To move
their enterprise in forward direction it is essential for company to make certain plans and
strategies which will be beneficial for the organisation.
Coca – Cola and Pepsi are the two big multinational companies, former is having variants
named as Diet coke, Diet coke Caffeine free, Zero sugar etc., and latter is having different
products like Diet Pepsi, Wild cherry, Crystal Pepsi and many more. Both are rival companies
and giving tough fight to each other. They are providing with good services and products to their
customers which is helping them to attain a better position in market area. Implemented
appropriate strategies and plans for the advancement of the company (Anderson, 2016).
Organisation must accept the alteration and make make some modifications as per the
requirements. Here are some of the changes which should be accept by a firm for accelerating
their business, they are given below:
Strategies Coca - Cola Pepsi
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Change in external factor External factors can be
positive or negative in nature
and have a great impact on
business performance. New
policies and rules made by the
government can effect their
firm because sudden changes
is not good for the
organisation.
Pepsi is following all the rules
which are implemented by the
regulatory bodies like paying
taxes which have been
introduced by them.
Structural change This helps them to establish
their company in different
places from where they can
gain maximum profits. It
requires a lot of employees for
the smooth conduct of any
business at different areas.
Leaders and managers of Pepsi
are running their firm in a
proper manner. Although their
company is located in all over
the world but they have a good
hold in organisation at various
levels.
Emerging technologies Coca - Cola have implemented
various new tools and
techniques which have made
their life more easier and
providing them with maximum
number of profits.
Pepsi is also growing as per
the changing trends in the
market they have introduced
new tools which is assisting
them in enhancing the market
value and revenues.
Hence, it is the major role of leaders and managers to introduce certain plans and policies
which are for advancing their business (Booth, Wade and Walker, 2014). There are two factors
which should be kept in mind before executing any plans:
Strategy: It is important to make plans by keeping future into considerations this will
assist them to have a proper plan so as to attain their targets in an effective manner. Both the
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companies can use recent trends of advertising their products like social media sites, newspapers,
magazines. This will help them to attract a huge number of people towards their organisation.
Operations: Both Coca – Cola and Pepsi are using various tools and techniques so as to
have a growth in forward directions (Brown, 2012). For this they are making alterations
according to companies needs and satisfaction.
P2 External and internal drivers of change which affects leadership, team and individual
behaviour within an organisation
The prime duty of change manager is to implement appropriate tools and techniques
which is essential for making certain changes in an organisation. These should be very simple to
understand so that employees can adopt it in a proper manner. This will assist a company to h
ave maximum profits. Thus, changes should be done as per the requirements because it can have
both positive and negative outcomes.
Generally there are five drivers which are given below:
Customer led Drivers: In this choices of customers are taken into consideration and
organisation make their products as per the consumers needs. Hence, it is essential to accept
changes for the benefit of the company.
Technology led Changes: Technology now a days is like a helping hand for many firms
as it is providing them with better facilities. This is cost and time effective in nature which assist
them to have a good number of products in limited period of time.
Investor led Drivers: Under this firm look out for various stakeholders who can invest
their organisation, it is used to enhance the standard of any enterprise.
Competitors led Drivers: In this firm can sit and make proper strategies and plan so that
they can give a tough fight to their rival companies. This assist them to know about their pros
and cons on which they can work.
Government led Drivers: This is one of the important factor for any company whether it
is private or government sector. They introduce certain rules and regulations which are beneficial
fro the citizen of any nations.
Apart from this there are two factors which are external and internal factors which is used
to resolve the problems in any particular organisation (Carrington, Deppeler and Moss, 2010).
External factors:
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Political: This factor is very essential as it includes policies, tax implementation, political
stability etc., and it can have a huge impact on business. Certain changes in norms can effect the
environment of any firm.
Economic: Country and economic conditions of any organisation can be linked as they
helps a nation to increase their revenues and GDP. Hence, company should make strategies
according to the firm's benefits.
Social: Social factors should keep in mind whenever nay organisation is establishing any
business in a particular area. Company should work as per people living there so that they doest
harm the sentiments of any particular tribe or group of person.
Technological: Implementing of new technologies comes under this. This provide them
with maximum profits with less labour work (Doppelt, 2017).
Internal Factors:
Strength: Variety in the products of Coca – Cola with reasonable rates is the biggest
strength which is aiding them to establish their business all over the globe. Collaboration with
many companies they have started a successful chain of food and beverages which is assisting
them in expanding their firm.
Weaknesses: Some of their products are not liked by their customer's which is the biggest
weaknesses.
Opportunities: They can increase their opportunities by establishing their enterprise in
those places where they have not explored yet.
Threats: Lacking behind from other rival companies is the threat of every organisation.
So, it is necessary for coca – cola and Pepsi to make plans accordingly.
P3 Measures to minimise negative impacts of change on organisational behaviour
Negativity should be kept out from business, because it is very bad for the firm to grow in
forward direction. For this company should imply new concepts sand policies which managers
and leaders are responsible. It is mandatory to maintain a healthy relation with between
employees this assist them to reduce the chances of conflicts. Some of the elements are given
below which are adopted for the sake of betterment of the enterprise.
Creation of Pathway: This method helps a manger to have an interaction with co-
workers so as to discuss about the new policies which they want to implement. Supervisors are
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like mentor who guide them to take a appropriate path for accomplishing their task. This can be
done by conducting frequent meetings and taking feedbacks from their employees.
Explain about plans: In this managers plays a vital role as it is their prime duty to
explain all the plans so that a suitable outcome can be drawn (Fagerström and Salmela, 2010).
Leaders can motivate it team members for achieving the target at a specific time period. Hence, it
is important that supervisors tell everything to their managers so that they can convey their
message to fellow workers. Therefore, by this process they can attain the superior position in
market areas.
Attending meeting and seminars: By this method employees cab get to know about new
technologies and tools which they can introduce in their workforce, this will gradually enhance
their business. In seminars they can invite scholars sand knowledgeable person with workers can
interact so as to increase their existing informations (Fullan, 2014).
Implementation and negotiation of proper plan: Management should pick a right person
who can handle and negotiate all the tasks. Thus, it is important for a company to select suitable
candidate with creative mind, who will assist them to take their company in forward direction.
Introducing new plans for achieving goals and targets: For advancement in business it
is necessary to have proper plans through which they can attain the set targets. This will help
them to create a milestone for other rival organisation who are the tough competitors.
Mentioned below are some of the theories which Coca – Cola and Pepsi has followed for
the betterment of their firm:
Bruke – Litwan Model:
This type of model can be said as an systematic kind of model. Organisation use this to
organise and manage their work. It can be further classified into many steps. The top most can be
categorised as the most important and last one as least respectively. Some of the points are
mentioned below: External Environment: Company is very mush influenced by factors whether they are
external or internal. All these includes market, legislations, economy, government etc.,
these elements are regulated by governmental bodies and have certain norms and laws
which every one has to follow.
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 Mission and Strategy: Company should have a set plan which they want to achieve in a
certain time period this will make them capable of doing their work specifically. Thus,
they should have a appropriate strategies so as to accomplish their work.
 Leadership: It is the prime quality which every individual should have it will make them
confident in decision making. Leaders can motivate its team members to complete their
work in effective way.
TASK 2
P4 Different barriers for change and how it influence leadership and decision making
Leaders and managers can be said as a pillar to an organisation. They are the one who
encourage and manages all the task in every department. In this process they face certain barriers
which have a negative impact on their behaviour. Communication can be the biggest barrier if
there is no proper interaction amongst their employees (Hrebiniak, 2013). It is one of the
important element fro any organisation through this process they can convey their message to
their employees. Some of the factors are given below which are adopted by many companies:
Perception of self – efficiency and resistance to change: Change is always good for any
body because it gives an perspective to think differently. Hence, workers should have a capacity
to accept all the changes which are acting as a barrier in their field of work. For this it is required
to analyse the capabilities so that they can make alterations accordingly. This is little time
consuming and workers eliminate this process to do.
Force Field analysis: Theory was profound by Kurt Lewin, who emphasised more in
adopting changes which are related to culture. This assist leaders to take proper decisions so as to
come up with all the barriers whether regarding to external and internal environment. This
includes Five Phases which are given below:
Phase 1: This is the first step in which introducing of new tools and techniques are
mentioned. Companies should make sure that they have implemented techniques which are
according to the present scenario so that they can get maximum benefits from that. This will
assist them to increase their revenues.
Phase 2: Risk factor is very important and Coca - Cola has worked according to the
market situation before introducing any products. Right policies in perfect circumstances has
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helped them to enhance their business gradually and as a result they have better productivity and
sales as compared to other rival companies.
Phase 3: Modification is rectify in this phase so that organisation can make alterations
for increasing their supply of goods and services in market area. Managers go through the
policies and norms if it requires changes.
Phase 4: Scoring is done so as to know what task is to be done in prior. This helps them
to work in a systematic manner. Further they can rank from 1 to 4 respectively.
Phase 5: It is the last step in which company sit and analyse the plan which they have
made are appropriate or not. This assist them to make changes as per the requirements so that it
can be executed in proper manner.
Situational resistance to change: This kind of factor is applied by an company if they
want to finish their task in specific time period. They are very appropriate for making short term
plans because it requires changes on a regular basis. For this organisation should have a healthy
relation with other countries because this will assist them to sell their products in particular
nation. Coca – Cola is very famous all over the world, hence, it has a good relationship with
other firms and country. Part by part it will increase their market shares sand revenues.
Schien's organisational cultural model: This model was given by Edgar Schien, he
mainly emphasis on cultural change which is essential for policy making. It focusses on
interaction between supervisors and employees. Through this managers can explain about all the
plans and process which they can implement in their work filed. Three different level are
mentioned below which are as per organisational culture: Assumption: Different cultures have various values which affects an organisation.
Assumption about any person is very common in human nature (Malenfant, 2010). For
example: thinking that male counterparts are more capable in decision making than
females and are more comfortable in working in various situations. Artifacts: Under this certain elements are includes attitude of an individual, behaviour of
the worker, through this they can make future decisions and plans. This element aid in
improvising vision by which important determination can be made by a company.
 Values: This section tell that what are the capabilities that a staff member must possess to
work in an efficient manner. This kind of ethical working with values effects working
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pattern of a corporation because what does a worker think about his association is means
a lot to management.
P5 Leadership approaches for change in an organisation
Coca -Cola and Pepsi has incorporated some of the leadership approaches which is
helping them in increasing their business. This assist them to to enhance their skills which will
gradually increase their performance. Through this an individual learn and develop to do work in
an effective manner. For this to work in an appropriate manner companies have utilised new
tools and techniques which managers use in introducing new norms and policies.
Situational leadership theory was given by Paul Hersey and Ken Blanchard which mainly
depends upon two factors i.e. directive an supportive behaviour. In this he explains that a same
style of leadership cannot be followed a a leader. Change undergoes according to the present
scenario. Thus, management should apply those factors which are flexible in nature, that can be
understood by most of the employees. Change can be positive or negative hence, supervisors
should make sure that all these policies which are implemented are as per company's benefits.
Kotter's 8 - Step Model: This model was given by John Kotter which involves 8 steps to
run an organisation in a better way:
1. Enhance urgency: Through this company can generate a sense of urgency which assist
them to opt some alterations which are regarding to opportunities and threats. To work in
an organisation it is important to have a mutual understanding amongst all team members
this will increase their communication skills with all other persons (Nahavandi, 2016).
2. Building a powerful Team: Work in an effective manner it is required to make a proper
team because a team will help them to achieve their set targets in an proper way.
3. Create a vision of change: This step assist employees to know about the clear vision of
their goals and managers are those who explain them the whole task. They make them
capable of performing their work in a speculated time being.
4. Communicating the vision: Communication is very necessary for a smooth conduct of
their business. Supervisors are the one who tell their co – workers about the perfect plan
and what steps to follow so as to complete their task on time.
5. Eliminate obstruction: Barriers can act as a biggest obstacles in any business. Thus,
company should be capable of making proper plans and strategies from which they can
eliminate their risk to maximum level. This method helps them to do so.
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6. Create short term wins: Organisation can set a goal for short period of time and after
completion this will gradually enhance the morale of an individual to perform in a better
way.
7. Strengthen Gains: They can motivate their team members that will act as a strength for
any organisation.
8. Make change stick: This can be considered as the last step through which leaders and
managers takes help from this to make modifications in an organisation. They take
customer's views into consideration and work according to their needs and satisfaction.
CONCLUSION
From the above mentioned report, it can be concluded that changes are important for
business organization because it helps in improve overall performance. For attaining better
results it is essential for manager to effectively adopt new and innovative technologies to
enhancing their profitability. Along with this, leader and manager also play important role in
analysing market trends and competitors performance. By this they easily take right decision in
order to enhance their profitability by attaining set objectives. Further, it is also important for
leader to perform effectively in order to reduce the chances of arising risk factors within the
organization.
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REFERENCES
Books & Journals
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Carrington, S., Deppeler, J. and Moss, J., 2010. Cultivating teachers' knowledge and skills for
leading change in schools. Australian journal of teacher education. 35(1). pp.1-13.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Fagerström, L. and Salmela, S., 2010. Leading change: a challenge for leaders in Nordic health
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Online
Understanding and Leading Change. 2017. [Online]. Available through:
<https://execed.economist.com/understanding-and-leading-change-2018-09-12>.
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