Leading Change in Organizational Contexts

This assignment delves into the intricacies of leading change within organizations. It examines various change management theories, explores practical strategies for implementing change effectively, and analyzes the challenges leaders encounter during organizational transformation processes. The analysis draws upon relevant academic literature and real-world examples to illustrate key concepts and provide insightful perspectives on successful change leadership.

Understanding and
Leading Change

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1. Various organisational changes and their impact on its strategy and operations............................3
TASK 2.......................................................................................................................................................5
P2. Evaluation of the internal and external drivers of change affecting leadership, teams and
individual behaviour in the organisation...............................................................................................5
TASK 3.......................................................................................................................................................7
P3. Measure which can be taken to reduce the negative impact of change on organisational
behaviour...............................................................................................................................................7
TASK 4.......................................................................................................................................................9
P4. Different barriers for change and their influence on leader decision making in the organisational
scenario..................................................................................................................................................9
TASK 5.....................................................................................................................................................10
P5. Different leadership approaches to deal with the changes in various organisational scenario.....10
CONCLUSION........................................................................................................................................11
REFERENCES.........................................................................................................................................12

INTRODUCTION
In the current century there is existence of lots of organisation and everyday there is some or
other changes which happens in the internal and external environment. So it becomes necessary for the
organisations to react according to these changes and implement new strategy, plans and etc., so that
they can pace up with the changing environment. There are situation when the changes may go wrong
thus giving losses to the organisation and this also wastes the resources which are available with them.
Change in the organisation may affect the business strategy of the company and the process firms carry
out to accomplish that particular strategy and the employees engagement
(Fullan, 2014). Changes can be small or big depending upon various factors and elements. This all
report with briefing about the various aspects of change and change management through taking the
case scenario of Coca Cola and Amazon company which are world's renowned multinational
organisations in their sectors. There will be analysis of various leadership theories and approaches
which can be used to deal with different situation or changes.
TASK 1
P1. Various organisational changes and their impact on its strategy and operations.
After a study change now the Amazon follows a hierarchical structure. Senior management
consists of two CEOs, three Vice Presidents and one Worldwide Controller who are responsible for
different key aspects of business reporting directly to Amazon CEO Jeff Bezos. Other than this there
are seven areas that is information technology, human resource and legal operations and heads of
segments which also reports to Amazon CEO. This change was adopted as Jeff Bezos looked that it is
necessary to expand the business and to handle such big business hierarchical structure would best suit
them (Doppelt, 2017).

It can be estimated that with the acquisition of Whole Foods for USD 13.7 billion announced in
June 2017, Amazon organisational structure is going to change in the coming future. Although because
of organisation's adherence to business diversification strategy in an aggressive manner, it is the
organisational structure will always remain dynamic and will be open to changes in nearby future.
When the impact of change is analysed on the scenario for people and processes now it can be
said that the board of directors and the lower rank employees can directly report to the CEO of
Amazon. On the behalf of CEO they can make certain crucial decision concerned with the business.
Over the years Amazon has been gone to lots of changes without tearing up their structure as the people
who are part of this organisation (Nahavandi, 2016). To ensure that they have the best employees at the
workplace they have introduced a review process called as 'stack ranking' or 'rank and yank' where the
employees are rated against each other as opposed to how well they meeting the job requirements.
They have made a change in their process thus making replacing process more easier and
Illustration 1: Amazon Organisational Structure

convince to customers. Now the pin code where Amazon don't take the replace so in those areas the
customer can own send to Amazon. With all this they are making their business grow and ensuring that
they change their strategy on regular interval according to situation in which they are in.
Coca Cola company has made lots of management and organisational change to Coca Cola
Americans so that they out acceleration at their growth. Now they will be reorganisationing their
operating structure thus plans to further streamline their focus and expedite its refranchising to
independent bottling partners the organisation said in their mission statement. Coca Cola always acted
according to the customer needs and tastes. Once their image in the market was of a brand who sells
only carbonated beverages but looking at the future they though that if they have to get a competitive
advantage it become necessary for them to shift their products towards focusing on healthy. This way
they came out with various products this increasing the product portfolio which gave them a hike in the
business (Burke, 2017). This change has brought a key change in the organisational strategy which
included corporate, business and functional. Now they have large number of products in their portfolio
so it become necessary that they diversify their operations according to the product line. This made
increase in the labour demand and the managers have to become flexible in handling any kind of
situation at the organisation.
TASK 2
P2. Evaluation of the internal and external drivers of change affecting leadership, teams and individual
behaviour in the organisation.
Any organisation has certain internal and external factors which has the ability to impact its
various core areas and other teams, individuals which are part of the organisation. The internal drivers
can be controlled but when it comes to external drivers which consists of political, economic, social,
technological, legal and environmental factors it economic almost difficult for organisations to control
them. The only option available with them is to adapt according to these changes through formulating a
business strategy (Suchman, Sluyter and Williamson, 2011). After analysing the case scenario of both
the companies that is Coca Cola and Amazon it can be said that both of them might be trading in
different segment or sector but they have almost the same changes which is happening. Following are
the elements which are included in the internal drivers of both the organisation:-
People:- Here the people is analysed as the employees who are part of Amazon and Coca Cola.
They act as an assets for both of them as they help the organisations in attaining their goals and

objectives. Both the companies try to allocate different roles and responsibilities to these based on their
performance. The reason behind the change is that the companies wanted leadership which can help
them in making better communication with the teams thus making the staff flexible in handling any
situation.
Technology:- To increase the efficiency so Coca Cola puts new machines who are
technologically advanced in their production. As they are aware that they need to fulfil the increasing
demand of the products (Hyrkäs and Harvey, 2010). So it is required that they should make right
change and on the other side Amazon ensure that their customers should have full rights to know where
their product has reached so for that they have given the option of tracking the orders which are on the
process. This gives the satisfaction to the customers thus increasing the brand value of Amazon.
Following are some of the components which forms the external drivers and these are as
follows:-
Political:- Amazon is leader in e-retail sector and can be affected by various political factors.
They might be facing issues in the Asian country and it can be regularity issues which is the prominent
one. Other than Coca Cola has the taxes issues and in one of the case where Coca Cola got alligation on
the use of pesticides in their soft drinks in India. This has lead to decrease in sales of company and the
firm decided to bring transparency among in the production process so that they can know there is no
such thing (Thomas and et. al., 2013).
Economy:- It was observed that it the economic crisis still Amazon was performing well and
ensured that there is no impact of economic change on their business. They make certain cost cutting
decision so that there there profit margin is maintained and on the other hand they also directly placed
their managers. Coca Cola has never gone out of the taste as it has become a regular drink for the
people so whatever the economic trend is going will benefit the process and organisational strategy.
Social:- These are some of the crucial change which cannot be taken into directly by both Coca
Cola and Amazon. Soft Drink company have to react according to the areas where they are serving
their coke and should make sure that there is proper communication so that the lifestyle trends can be
analysed and informed in better way by leaders (Jones, 2011).
Technological:- This might happen that the competitors of both the company can come out
some technology which would make these into the losses. So they have to regular change themselves
and adopted new technologies. Recently, Amazon announced that they will be delivering the order with
the help of drones. This thing will attract a lot of people and there are chances that their sales may reach
to new heights.

Legal:- There has been regular change in the legislation and the laws framed by the
government. Both are comes in the category of world's largest organisations so it is a challenging task
for the companies to maintain their position and abide all the laws. They both have to set a leadership
who can communicate all the legal ethics and legislation to the company people so that there cannot be
any further disputes or conflicts (Mukherjee and et. al., 2012).
Environment:- Sustainability can be called as one of the crucial concern for the business
prevailing all over the world. Amazon and Coca Cola have to look at their packaging , waste reduction
and energy consumption to take care of the change. Both of them have set certain departments who
looks for the CSR at different levels.
TASK 3
P3. Measure which can be taken to reduce the negative impact of change on organisational behaviour.
There are carious measures which are available in the environment and can be taken into the
account so that the negative impact of change on an organisational behaviour can be reduced to a large
extent. It depends on different situations and conditions that which measure will be more beneficial.
Following are some of them which can be followed:-
 System Theory:- It is the interdisciplinary study of systems and a system can be an entity with
interrelated parts. So this can be analysed in a way that any change in the system or any single
part is changed than there will be impact on all the whole organisation. Right growth and
adoption of the positive system depends on how well the system is adjusted with its
environment. System prevails in the environment so that they can accomplish a certain mission
or targets. The main aim of this theory is to inspect a system, its principles, conditions and etc.
are various things which are discovered in such theory(Finnigan and Stewart, 2010). Coca Cola
can adopt this theory to check and know what all things are going on and whether they are right
or wrong. They can analyse that what are the factors which is bringing negative psychological
impact on the team or in the employees behaviour.
 Continuous Improvement:- It is a continuous improvement process which can be also called
as continual improvement and the improvement can be related to the product, services or the
process. The improvement can be done either single time or through some breakdown
improvement. Amazon can use this through the following:-
◦ Plan:

◦ Do:
◦ Check:
◦ Act
This will be useful for the Amazon in the case of employee behaviour as they will be acting to
the negative behaviour in small steps and this thing will be continue till there is no improvement. With
such thing Amazon does not need to focus on any strategy or product. This all concept relies on the
staff so that the opportunities for the improvement can be identified.
PDSA Cycle:-It is expanded as Plan-Do-Study-Act and this is a tool for study any change
happening in the organisation and with this there can be an improvement any thing thing which is done.
With this a plan is prepared to test the change which has happened, then further the change is taken out,
what learning and results can be there are identified (Parsons and Cornett, 2011). In the final step they
will try to modify or update the changes which needs to be done to bring improvement. In the negative
changes happening Amazon and Coca Cola can use this model to ensure that they have full knowledge
about any process which is happening or part of the companies.
Illustration 2: PDSA Cycle for learning & Improving

TASK 4
P4. Different barriers for change and their influence on leader decision making in the organisational
scenario.
In the company there might arise various issues which acts as barrier thus hampering the growth
of the organisation and this is because the leaders find it difficult to decided the right decision. In the
case study Amazon it has been analysed that the staff are not happy with the roles which has been given
to them and at the same time they are not getting proper according to their workload. This is one of the
important issue which has to be taken in account so that things can be analysed and can be resolved in
time without facing much destruction. For this the situation is analysed and now different activities and
communication challenge has to be identified (Hintz, 2012).
In order to make better and proper decision Force Field Analysis can be done and with this
effective, structured decision making technique will help them in improving the quality of the decisions
thus increasing the chances of success. In this the tools are analysed which is useful in making decision
through gaining the knowledge about the forces which are in favour or are against a change thus giving
the reasons behind the change (Hallinger and Heck, 2011). So to resolve the issue of labour
dissatisfaction over the allocation of their roles and responsibility the skills of the person is identified
and then those elements which are against the change is analysed. While making any decision in this
matter they can use situational leadership theory.
Situational Leadership Theory:- This is a useful model for management of the organisational
behaviour and this is considered as one of the best leadership model. It highlights leadership styles and
the individual or group performance. In the leadership styles all the styles are categorised into four
behaviour types that includes directing, coaching, supporting and delegating.
Directing:- In this leaders at Amazon will be again allocating the roles and responsibilities thus
providing what, how, why, when and where to do the task.
Coaching:- To ensure that the previous situation at Amazon does not arises they give the, the
coaching which includes two way interaction thus giving the socio economic support that will
convince the task to further carry out therein job (Bingham and Main, 2010).
Supporting:- Now here the leader does not give much orders or take much decision instead
they support and try to maintain the behaviour of the staff who are involved in doing the operation.
Delegating:- Till this process the decision for the allocation of the tasks and wages is going on

but at the limited manner. This is the situation where the process and responsibility has been passed to
the individual or the teams at Amazon.
TASK 5
P5. Different leadership approaches to deal with the changes in various organisational scenario.
There can be change in lots of things in the organisation context and these might be related to
employees issues concerned with the change management, competitive pressure and change in
technology are some of the issues. Change can bring positive and negative results, this all depends on
what kind of changes is taking place, at what time it has happened and in what circumstances this has
happened are some of things which can be analysed to better manage this (van der Voet, Kuipers and
Groeneveld, 2015). Change management is the management of the change so that it could have positive
impact on the organisation and employees can easily adapt according to it. Following are some of the
transaction leadership approaches which can be adopted in dealing with changes:-
 Transactional Leadership:- It is also known by the name of managerial leadership as it
emphasis on supervision, organisation and performance. In the case of Amazon and Coca Cola
if the staff are not able to adjust according to changes than this can be an option available with
the leaders. With this the efficiency of those employees can be increased thus introducing
rewards and punishments. Leaders adopting these styles will not change the current resources
and areas for the improvement. This can be acted as a model which give briefs about the
defects, faults, loopholes and etc. which are acting as a barrier for the for staff to accomplish
their task and adopt the change (Hintz and Bahia, 2013). After analysing the situation they
frame a plan and try to find out the areas where different things will be carried out. Amazon and
Coca Cola is are the renowned brands who ensure that all the leaders take care of the staff and
whatever is problem is arising. This will increase their market share.
 Transformational Leadership:- This is also a type of leadership which can be defined as the
process where leaders and their team members who are working under them try to increase the
moral and motivation. It is observed that Amazon is facing tough competition from the other e-
commerce sites like eBay, Aalibaba and etc. are some of them so to beat all the competitors they
have to change their structure and the working culture (Clarke and Persaud, 2011). This will
bring efficiency in their work and will help them in increasing their sales. With this they will set
goals that in the month of Christmas we have to achieve that particular sales figures. Then he
sets the expectation thus encourages others thus allocating the tasks and giving them

recognition.
These two leadership are useful and can be used in different organisational context thus
dependingly upon the situation that what kind of change has taken place.
CONCLUSION
From the above report it can be analysed that organisational change is a crucial issue for the
company so it is necessary that it is handled and managed with proper care. It is the collective effort of
all the staff or the company to understand their roles and responsibility so that they can adapt according
to the change. It is the responsibility of the manager to ensure that they acts as an leader and performs
according to the situation with full efficiency. Coca Cola and Amazon needs that whenever they
incorporated any change they should pre set certain goals which they wants to achieve through this
process. They should take care that certain changes does not impact their business in negative way.

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Online
10 Principles of Change Management. 2004. [Online]. Available through: <https://www.strategy-
business.com/article/rr00006?gko=643d0>.