Understanding and Leading Change Assignment

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Compare organisations on the basis of organisation’s strategy and operations..................3
M1: Assess the different drivers for organisational change........................................................7
TASK 2............................................................................................................................................7
P2: Internal and external drivers of change that affect leadership, team and individual
behaviours...................................................................................................................................7
P3: Evaluation measures to minimise negative impacts of changes...........................................9
M2: Apply theory to evaluate organisational response to change............................................11
D1:Conclusions and recommendations for change and its impact...........................................11
TASK 3..........................................................................................................................................11
P4. Different barriers for change and determine how they influence leadership decision
making.......................................................................................................................................11
M3: Use of Force Field analysis...............................................................................................14
D2: Evaluation of the use of force field analysis in meeting organisational objectives..........14
TASK 4..........................................................................................................................................14
P5: Leadership approaches to deal with change.......................................................................14
M4: The extent to which leadership approaches can deliver organisational change effectively
applying appropriate models and frameworks..........................................................................16
D3: Evaluation of the effectiveness of leadership approaches and models of change
management..............................................................................................................................17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Change is a crucial part of business that participate to meet out the issues faced in the
process of initiation as well as while implementation certain changes for the better functioning.
Understanding and leading changes is a framework that generate the awareness and lead the
organisation to change the behavioural pattern in order to meet out the challenges effectively
(Aspling and Drewell, 2013). Participant usually analyse or examine the internal and external
factors like political, technological and psychology issue to undergo the process of changes.
Thus, most of the successfully organisation significantly accept the changes by preparing
competitive team that understand the value of changes for an organisation and effectively
participation in the process. For the better understanding of report Iceland company has been
selected which is the supermarket store of UK that deals in grocery item and frozen food like
dairy and dry product. It basically cater the need of large audience with the help of its lengthy
retail chains. This report cover following topics such as differentiate various ways of changes
that impact the operations and strategy for changes. Evaluate the influences of external factor
that leads to changes and affect the organisation behaviour. Moreover, determine the barrier to
changes that influences the leadership decision making. Furthermore, application of various
range of leadership approach that leads to the initiative of changes are covered in this report.
TASK 1
P1: Compare organisations on the basis of organisation’s strategy and operations
As each and every organisation whether it is large or small operate in dynamic
environment that keeps on changing due to external factors like increase in competition rate that
can affect the long term sustainable objective of an organization. This makes it vital for the
company to examine the factor that can affect its working and take precaution to cope up with
challenges. There are mostly large size business that provide training to their staff on the regular
basis so that they remain competitive and upgrade their strength by adopting latest innovation
that changes the working pattern. So, it simply require the effective strategy that need to be
adopted by the manager of company to expand the business, maintain the market share and
functioning smoothly (Benke and Miller, 2013). Herein, Iceland company constantly understand
and observe the behaviour and buying pattern of its customer so that the company can deliver the
product and services as per the requirement of consumer. It generally ask their customer to post

the feedback for their store which help to take the corrective measure and accordingly expand
that increase the profitability of firm. Like, with the increase awareness and growth in
employment opportunity for both male and female member of the family Iceland other than raw
food started a new range of frozen item. These ready to make cooking food items made the life
of consumer simpler and enhanced the footfall of company. Moreover, the company stretches its
effort and instead of just dealing through its retail store extended its operation to online platform
as well. This provide the convenience to customer as they can go through the online catalogue,
get the discount offer and purchase the grocery items from their respective places only. Further,
with the help of strong distribution channel the product is delivered at the customer place with
the help of stipulated time period. Thus, this depict that adopting of changes and significant
strategy leads to the value addition that attract the potential customer and improve the goodwill
to company.
Comparison between Iceland and ASDA company on the basis of changes that impact the
strategies as well as operations of an organisation.

Basis of Comparison Iceland ASDA
Structural change Initially, Iceland company opted for
hierarchy structure where
information flow from top to bottom
which leads to centralised method of
decision making. Later on the
company adopted divisional
structure which include various
functions like HR, finance and
marketing that is responsible to
perform their activity which in total
is responsible to accomplish the
objective of an organisation. This
lead to better decision making where
all the team member come up with
innovative idea and consult their
functional manager who have in-
depth knowledge and competency
over their department. Thus, all of
them together function to attain the
better output.
ASDA company follows
hierarchy structure which include
various level of management that
control the functioning of overall
organisation by maintaining the
coordination within various level
of management. This structure
assist the company to manage the
communication makes quicker
decision but limits the flexibility
or creative thinking ability.

Changes on strategy As Iceland company experiences
huge competition in external
environment due to which it has
adopted low pricing or penetration
strategy where it sell the premium
quality at affordable prices.
Company does not keep their prices
static which mean they analyse the
strategy of their competitor and
constantly bring significant changes
like loyalty card is prepared to get
the additional discount and selling of
bundle good at more cheaper price
and so on. Thus, constant changes in
the strategy helped the firm to widen
its reach by sustaining the existing
customer and attracting the potential
ones.
ASDA company believes in mass
selling for which it has too
adopted penetration strategy as it
lead to the increase in overall
sales of company. Although it at
times usually set the price higher
than its competitor to gain the
additional revenue which all
together act as a threat for
company. So company change
their strategy and believe in word
of mouth publicity to penetrate
the whole market (Chang, 2014).
Changes in operation With the increase in digital media
has made the lives of people as well
as company simpler for instance,
earlier the Iceland company majorly
depend upon the brick and mortar
output and later on it changes its
operation by shifting towards online
platform to deal with customer and
handle their grievances. Further,
company majorly depend upon the
social media to promote its brand.
ASDA company progressively
concentrate on its distribution
channel by minimising the days
of deliver that enhanced their
operation by increasing the
productivity as well as long term
profitability of firm.

M1: Assess the different drivers for organisational change
There are several internal and external factors that act as a drivers for the Iceland
company to adopt the changes. This can change the operation, strategy, organisation culture as
well as pattern of doing work (Blewitt, 2012). Like, the company paid attention in their staff and
empower their skill through training and development programme which enriched them and
make them challenging to accept the changes. For this communication took the major place
where the manager and employee interact with each other on the continuous basis to overcome
the hindrance face by firm. Along with this Iceland adopted the technology that made it easier
for the firm to maintain the inventory and bing long term relation with customer.
TASK 2
P2: Internal and external drivers of change that affect leadership, team and individual behaviours
External drivers: It include PEST analysis on the basis of which firm takes all the major
decisions like expansion or diversification. As these factor are not in control of business so it is
vital for the firm to analyse these external factor and make decision accordingly as it the affect
the leadership style and behaviour of an individual within team.
Political Factors: It refer to the taxation policy, trading as well as government policy
that affect the overall performance of firm. Any change in the policies of government within
retail industry affect the functioning of Iceland organisation. So in that case company adopt the
new strategy on the basis of changes that affect the behaviour of individual and team within an
organisation. Further, these regulation like imposition of high tariff rate hampers the whole
trading that mean import and export of food items. With the shift of Iceland and other retail store
in e-commerce platform leads to the issue like privacy or security breach which require the
intervention of local authority that how the data is stored and shared. This at times become
complicated for the firm to cope up.
Economical Factors: These factors involve inflation rate, interest, economic trend,
foreign exchange and so on that affect the demand and supply of commodities. As the economic
condition are dynamic like during rise retail industry experiences profitability whereas during
decline people are less likely to shop. Thus, Iceland needs to make strategy on the basis of
inflation or recession. Moreover, Iceland has the huge scope to expand the business as it is

expected that the whole retail industry will constantly grow by 2020 provide which positive
affect the leadership pattern, individual behaviours and team. Therefore, this enhances the
employment opportunity for local residence due to which there is a wider scope to enhance the
confidence and shape the economy effectively.
Social Factors: Social factor is the customer preference or the attitude of customer while
making the final purchase. As customer like to purchase in bulk due to which Iceland company
offer the wide variety of food items under one roof so that they get all the utility item within one
place. In relation to Iceland company cater the requirement or preferences of large audience with
the help of its website. Along with that it even showcases the targetted advertisement with the
help of social media to tie up valuable relation with the current and potential audience (Driscoll,
2017). Therefore, as most of the customer get attracted by the deal so company frequently
announces the offer.
Technological Factors: Technology refer to the innovation and adoption of latest trend
that leads to smooth functioning of business to carry out the day to day activities of business.
Internet is a boom for retail industry which has enhanced the sales of company. Like, with the
help of digital catalogue customer of Iceland can select or pick up the items online which is
shipped to their respective places. Hence, adoption of new software and system makes the
internal functioning fast and easy that impact the leadership style, individual and team behaviour
to shift the performance of business.
Internal drivers: Internal drivers refer to the SWOT analysis of company that include
internal (strength, weakness) as well as external (threat, opportunity) factor. These are factor
which can be controlled by the business by enhancing their potential and overcoming their
weaknesses for overall profitability.
Strengths Weaknesses
 With the help of social media company
promote its brand and communicate
with customer regarding the benefit of
loyalty card and occasional discount.
So it touches the existing and potential
customer on the basis of feedback.
 The company has limited scope or
product range in comparison with other
rivalries like ASDA and Tesco. Due to
which it at times experiences low
profitability.
 Company has low presence and
recognition value in international

 Iceland company provides home
delivery facility for the convenience of
customer and cater the need of people
who live in distance.
market.
Opportunities Threats
 Iceland company can avail the
opportunity of its financial position and
make the huge capital investment in
emerging economies.
 The company can merge or form
strategic alliance in order to cope up
with competition and gain long term
sustainable development.
 Pressure of constant price wars from
existing rivalries.
 The changing policies of government or
political instability act as a threat to
company.
P3: Evaluation measures to minimise negative impacts of changes
The manager of an organisation formulate the strategy with the motive to enhance the
performance of business and attain the objective successfully to gain long term sustainable
development. Herein, Iceland the manager motivate their staff on the continuous basis in order to
promote them for accepting changes and attain the objective desirably (Dudar, Scott and Scott,
2017). Thus, there are various negative impact of changes that affect the business for which
Burke Letwin model is used which are discussed below:
Burke Letwin Model: This purpose of such model is to assist the Iceland firm and
minimise the chances of negative impact that can adversely affect the functioning of whole firm
(Burke Letwin model, 2019). It include twelve element which is discussed below:
External environment: There are certain department of the Iceland company such as
research and development department that is responsible to analyse the external factors. It
include government regulation, taxation rate, technological changes, competition rate etc. which
are analysed by top manager as well because it impact the performance of business.

Mission and strategy: It refer to the objective of firm which are discussed by the top
executive of Iceland with their employee. This help them to gain the better understanding of their
task so that they can attain their targets effectively by eliminating the chances of negative impact.
Leadership: Leader are an essential part of an organisation that motivate the employee to
enhance their performance (Power, 2016). So it is vital for Iceland to adopt effective leadership
style like participative style in order to manage the performance of business and face negative
situation smoothly.
Organisational culture: It involve the guideline, regulation as well as practice which are
equal for all the internal member of an organisation. Iceland company are more relationship
oriented where they conduct the meeting and work on the areas where staff find difficulty. Thus,
maintaining interpersonal relationship helps the firm to eliminate the barrier of negative impact
of changes.
Structure: Organisation structure plays an effective role to cope up with the negative
measure that arises while the firm accept the changes. Herein, selected company follows
divisional structure where each head regularly communicate with employee and take them to the
right directive by solving their problem.
System: The internal system of Iceland company have designed their structure and take
frequent measure to support as well as motivate the internal personnel. It include the opportunity
where training is provided to the employee on regular basis that lower down the negative barrier
that act as a consequences of changes.
Management practices: In order to encounter negative measure of changes the top
management of Iceland company is responsible to plan out the effective or problem solving
strategy. Thus, the internal staff needs to utilised the resources in such a manner the chances of
wastage gets minimised which improve the profit of business.
Motivational level: Internal member are encouraged by team member to maximise their
potential and deal with negative impacts of change (Götz, 2012).
Working Climate: Iceland company promote the staff through reinforcement techniques
which can be positive or negative. Like, it include reward system, promotion, demotion, transfer
and so on whose motive is to take the organisation and its member in progressive direction while
smoothly dealing with up adverse situation.

Task and skill: The employees of an organisation are hired on the basis of job
specification so that they can effectively manage the task on the basis of their capability. Along
with that Iceland company groom the skill of their manpower so that they can be the part of
changes whether they remain self sufficient to deal with negative circumstance. This makes an
employee asset for the organisation.
Values and needs of individual: The organisation is responsible to cater the need of
their employee as well by meeting out their expectation (Price and Ota, 2014). The HR
department of Iceland company provide the safe working area to the consumer where they get
suitable area to operate and mange the work life balance to manage negative situation.
General along with individual performance: Performance if an organisation is
examined on the basis of productivity, turnover rate as well as while comparing with external
competitor. Thus, Iceland company enhances the chances of cooperation and make the team
competitive which mitigate the chances of negative impact that may arise at the time of changes.
M2: Apply theory to evaluate organisational response to change
On the basis of Burke Letwin model organisation can go through the various elements
like external environment, working climate, structure, strategy and so on which are the
significant part of an organisation. This depict the response of an organisation towards changes
by which the manager can adopt the suitable strategy. It perhaps display the potential area where
business can function effectively and compensate the negative situation to deal effectively.
D1:Conclusions and recommendations for change and its impact
Changes are the vital part which are essential for the success of firm (Hruška, 2015). So it
has been concluded that organisation needs to analyse the external drivers and formulate
effective decision by adopting the changes which improve the performance of business. It has
been recommended that Iceland company should conduct training and development programme
to enrich the skill of their staff. Moreover, the manager should constantly communicate with
their staff and make them understand the relevance of changes. Therefore, this make the staff
competitive and bear the negative circumstances while undergo through the process of changes.

TASK 3
P4. Different barriers for change and determine how they influence leadership decision making.
In the competitive world, all organisations focuses on staying in race of competition and
achieving success. For this, they needs to change business activities, strategies, tasks or
operations to be successful. Changing all the aspects is not an easy task as there are various
barriers for change as well as all influences business leadership decisions. Some of the barriers
that hinders management of Iceland Foods Limited to take further step for change are as follows:
Employee resistance: Individuals play important role in success or failure of change due
to the human nature as well as reluctance to change. Workforce prefers to complete actions in
their comfort zone and barely prefers changes. Leaders of Iceland Foods Limited makes decision
to implement changes so that organisational members performs activities with new ways and
develops an image in the multinational market but employees becomes resistant to accept
change that influences leaders decision making at great level.
Fear of unknown: At individual level, all have fear of unknown circumstances and it
arises within people who cannot embrace changes (Lewis and Allen, 2015). Many employees
have unknown fear such as job insecurity or suspension from workplace after implementation of
organisational changes. The workforce who do not understand the requirement of change at
correct time period generally have more fear of unknown situations. Leaders understands the
employees situations and frame decisions that can benefit or reduce the fear but due to the
unknown fear they hesitate to accept decisions and changes which influences leadership decision
making of Iceland Foods Limited.
On order to overcome the above mentioned barriers of change management of Iceland
Foods Limited uses Force Field analysis that helps in analysing forces that influences change.
The description of the analyses of model is as follows:
Force Field Model: Such model was developed by Kurt Lewin who was a social
psychologist. Such model provides framework to emphasis on forces or factors that are either
driving movements or blocking movements. It includes forces driving change along with forces
restraining change (Seshaiyer, 2017). The model is used by managers of Iceland Foods Limited
with the aim to investigate power balance involved in issues, identification of allies along with
opponents and identifying the ways to influence organisational targetted groups. It helps in
managing change and making employees understanding the essential requirements of change at

workplace. For instance, the demand for non frozen grocery products in the market is increasing
and managers of Iceland Foods Limited have decided to expand their segment of non frozen
grocery items. This acts as change for the enterprise as now they have to expand such segment
with providing items of demanded products at different stores. For this, they have to provide
training programmes to employees in order to deliver the demanded products to existing as well
as new targetted groups. Stages in the force field analysis includes:
Change substance: The managers of the company at this phase identifies as well as
defines the requirements of changes that the company will be adopting in coming time period
that will help in gaining beneficiary results. The top level authorities of Iceland Foods Limited
emphasis on situations and determine needs of changes for future time period.
Identifying changing forces: Executives of the company after understanding the
requirements focuses on identifying changing forces by implementing strategies that helps in
identification of such forces which are closely linked with change.
Identification of alternatives: By understanding and identifying forces management of
Iceland Foods Limited identifies numerous alternatives and at the same time evaluates them with
the situation by making modifications in order to select the best alternative which will leads the
company towards success in future.
Assigning scores: Management team of Iceland Foods Limited assigns score to
alternatives by considering the modifications as well as further perform actions.
Evaluation and Execution: While implementing changes the managers of the
organisation evaluates the performance of employees and compares the performance after
change and before implementing changes as well as accordingly execute further plans to attain
the success (Shani, 2017).
Forces of change at Iceland Foods Limited:
Driving forces:
 Greater competition.
 Ethics as well as social values.
 Workforce commitment to work.
Resistant forces:
 Unknown fear among employees.
 Parochial self interest.

 Comfort habits.
Through such analysis, managers of Iceland Foods Limited ascertain forces that delays
implementation of change and can overcome from several barriers of change that influences
decision making of leaders.
M3: Use of Force Field analysis.
The management of Iceland Foods limited helps in analysing forces that are favourable or
against any change (Force Field Model. 2019). Some of the forces are:
Driving forces: Such type of force managers to initiate any organisational change (Lorg,
2018). They exceeds resisting forces and some of the driving forces are promotional desires and
management competence that encourages workforce to accept procedures of change by
influencing leaders decision making of Iceland Foods Limited in beneficial manner.
Resisting forces: These forces results in making things complex and harder as they resist
towards accepting any change. These are basically the internal forces at Iceland Foods Limited
that resist changes are focusing on present results, uncomfortably of employees with changes and
so on which decision making by leaders in negative manner.
D2: Evaluation of the use of force field analysis in meeting organisational objectives.
Managers uses Force Field analysis model to differentiate factors as favour and against
the changes by considering different situations. Such model includes forces of acceptance along
with forces of resistant to organisational change (McColgan, 2013). The acceptance forces are
considered as strengths where as resisting forces as weaknesses. Driving forces benefits the
managers of Iceland Foods Limited in expansion of segment according to customer demands
which helps organisation to meet objectives. On contrary, resistant forces delays working and
creates communication breakdown which resist the company members to meet organisational
objectives.
TASK 4
P5: Leadership approaches to deal with change.
Organisations in the dynamic market place deals with numerous changes as well as
implement strategies by understanding the key requirement of change in order to grow in the
international market. The leaders plays important role in motivating along with leading

employees to accomplish business objectives. Iceland Foods Limited emphasis towards Lewin's
change model to understand as well as structure change. Model is as follows:
Lewin's Change model: It is most poplar as well as effective model that helps in
understanding organisational changes. It was designed by Kurt Lewin in 1950s. It also holds
validity in the current time period. This model includes three stages that are as described:
Unfreeze stage: Such stage involves people to prepare for any change (NHS England,
2016). At this step, managers of the organisation themselves get prepared to accept change by
accepting the fact that it is needed for the growth and success of people, team members and
business as whole. It is an important stage as numerous people at workplace makes attempt
related to resist change but top level authorities breaks such status quo and explains workforce to
reasons of change and benefits for the change for individual employee and business. At such
phase, deep looking into core functions is done and all are re examined.
Change stage: This stage involves taking place of real change or transition. Such
procedure require more time to implement the change as more time is spend on embracing new
principles, developments, changes, happenings and so on aspects. Herein, effective leadership as
well as assurance plays key role as such aspects makes procedures easy for the members
involved in the change process and steer forwarding in appropriate direction. Leaders influences
employees to accept the change by providing them assurance that the changed state will provide
more benefits then the existing state. In addition, the stage helps Iceland foods Limited
workforce to give up their old techniques or ways of performing work and accepting new
methods that will help in gaining more benefits.
Refreeze stage: When the change is accepted as well as implemented by work force then
organisation begins towards stable working again. Thus, such stage is termed as refreeze stage
as at this stage staff members begins to work in their normal routines with new developments
and methods. The leaders of Iceland Foods Limited makes sure that operations are performed
with new changes all the time even after achieving objectives. Employees have sense of stability
and gets comfortable along with confident from the acquired changes.
Thus, with effective application of Lewin's Change Model at workplace, leaders
encourage employees to accept change which results in benefits to Iceland Foods Limited to lead
for organisational change.

Leadership approaches: the approaches of leadership describes characteristics of a
leader. Some of the leadership approaches adopted by leaders of Iceland Foods Limited are the
followings:
Transactional leadership: The leaders who adopts such approach focuses on
performance, supervision and organisation (Sibbet and Wendling, 2018). Using such approach,
leaders promote compliances and are able to keep workforce motivated by encouraging them to
monitor self development and re innovates current working system to new system in order to
build capabilities to face future circumstances. Along with this, the leaders of Iceland foods
Limited adopting such style develops trust and sense of belongingness among staff members by
granting rewards on the basis of performances.
Advantages: Transactional leadership approach does not involve high training costs and
does not have any type of nuances. Leaders with transactional leadership utilizes powerful
motivators such as monetary as well as other tangible perks which increase employee
performances.
Disadvantages: These leaders are many times considered as insensitive as they do not
effectively relate them self with other departmental workforce. Such leaders of the company
results in negative outcomes for attaining organisational objectives.
Participative leadership: Under such leadership approach leaders indulge subordinated in
formulating strategies, solving problems and many more (Nickitas, 2014). They focuses on
collaborations, mutual respect, open conversations, promoting innovative ideas and sharing
responsibilities among employees of Iceland Foods Limited.
Advantages: Adoption of such approach increases staff productivity, diversity of ideas
and creating favourable environment where strong teams are build to attain objective sin
effective manner.
Disadvantages: Such approach is not effective in sudden or emergency situations and
results in slow decisions making by employees.
M4: The extent to which leadership approaches can deliver organisational change effectively
applying appropriate models and frameworks..
Effective application of Lewin's change Model helps organisational managers of Iceland
Foods limited to provide directions for the progress of change acceptance from unfreezing stage,
change stage and refreezing stage where needs for the change are identified as well as staff

members are motivated for change acceptance (Pasmore, 2015). Leadership approaches like
participative approach and transactional approach increases coordination, cooperation,
interaction as well as confidence of employees. But in cumbersome or sudden situations, these
creates hurdles and confusion to deliver organisational changes.
D3: Evaluation of the effectiveness of leadership approaches and models of change management.
If leadership approaches for instance, transactional approach and participative approach
are effectively applied by leaders of Iceland Foods Limited then it benefits the employees and
organisation to increase engagement of employees, innovative ideas for solving problems results
in enhancing business profitability. Otherwise, huge losses such as inconsistency, dis
encouragement and resistance of employees for change (Suri and Jayashree, 2019).
If managers of Iceland Foods Limited effectively apply Lewin's Change model then they
can make employees understand the necessity for change which reduces insecurity and unknown
loss fear to accept change. On contrary, if such model is not effectively applied then leaders may
not be able to encourage employees to perform according to new practices, techniques which can
affect decision making by leaders.
CONCLUSION
From the above report it has been determined that organisation establish with the motive
of long term long term growth prospective for which they need to understand and go through the
process of changes. There are external and internal drivers of changes that needs to be analysed
by the manager as it helps to determine the objective and take all essential decision. Moreover,
Burke Letwin model helps the firm to overcome the chances of negative implication. Further,
there area various leadership approaches and Kurt Lewins change model that help the manager to
understand and lead changes.

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