This report discusses the impact of change on organizational strategy and operations, the ways in which internal and external drivers of change affect leadership, team, and individual behavior, and measures to minimize the negative impact of change on organizational behavior.
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Understanding and Leading Change
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1. Comparison between two organisations with impact of change on an organisational strategy and operations...........................................................................................................1 P2. Ways through which internal and external drivers of change affect leadership, team and individual behaviour...............................................................................................................4 P3. Measure that can be taken to minimise the negative impact of change on organisational behaviour................................................................................................................................6 TASK 2..........................................................................................................................................10 P4.Different barriers of change and their influence on decision making............................10 TASK 3..........................................................................................................................................11 P5.Different approaches of leadership while dealing with change.....................................11 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................14
INTRODUCTION Business environment is often dynamic which keeps varying in specific time period as per the new trends and technologies. This is required for an association's leader to deal with several conditions in order to adopt and ascertain those changes within companies in their best ways (Anderson and Anderson, 2010). Hence, leader has to direct those changes in a proper manner that can emphasise their productivity and revenues. This report will discuss and compare different strategies and operations of Marks and Spencer which is one of the largest retailing companies with Tesco that is the largest supermarket of United Kingdom. Different types of leadership approaches along with their objectives for promoting companies and enhancing quality will be highlighted here as well. TASK 1 P1. Comparison between two organisations with impact of change on an organisational strategy and operations Business change can be defined as the policy modification, structure, procedure and activity incurred within an organisation. These modifications can impact negatively or positively that is required to be considered by company's management in a suitable and effective manner in order to gain effective outcome. There are several modifications which Marks and Spencer has adopted after change in CEO to Rowe who has developed new structure focusing over more outlets and stores rather the franchisee business in all stores of M&S. Marks and Spencer is one of the largest retailing company in entire retailing market of United Kingdom. The company's new CEO Steve Rowe is working over the axing of entire international business stores in 10 nations in order to aim over fattening up their business of food (Aslan and Reigeluth, 2013). There are various types of changes within an enterprise which company has to adopt focused for nurturing and developing a better and strong organisational culture that can transform enterprise in better manner. As per this, adopted change has various types which affect a business organisation in different ways. Here are mentioned major sorts of alternation that can occur within Marks and Spencer:Planned Change:This kind of modification result lead to altering in company's decision. These changes are already planned and structured in order to make the procedure more 1
effectiveandsuccessfulimplementation.Therearevarioustypesofplanned modifications such as strategic, structural, people, process-oriented change, etc. Unplanned Change:This sort of changes are imposed by company who is unforeseen often. This can be cause of regulations and government in enterprise's economy etc. In order to implement such sorts of changes within an organisation, a company can opt different changes management theories and models in order to cooperate entire functions. In regard of making proper execution of new alternation in enterprise, Rowe can utilise Kurt Lewin's change management theory which is effective for both planned and unplanned change (Bingham and Main, 2010). This is required to compare enterprise's changes with one of their competitors in order to understand different strategies and operations of enterprise. In this report, Marks and Spencer would be compared with Tesco, strong rival of respected organisation. Both enterprises are leading and one of largest companies in entire supermarket industry. Here are mentioned their major operations as well as strategies stated under: 2
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BasisMarks and SpencerTesco Change in external factorsWhenever state economical state policies get altered, this influence theenvironmentofan organisation as well. The strategy of Marks and Spencer has now is focusing over new modification andchangesintheirbasic standards. Tesco has been dealing with various small and large levels. Hence,businessinfluence chancesarehighercauseof operatingbusinessatmicro level. Structural changeIn case of any changes in the businessstructure,thismajorly influencetheconsentof enterprise.MarksandSpencer follows the hierarchy structure in more influencing manner which helpsinmanagementof operations as well as their people in company. This kind of change arise in businessatsuchpointof course when Cosmos leads to start operating at a large level. Thus, many employees resist tochangewhichisnot appropriate for an organisation and thus, their operations get impacted in a negative way. Emerging technologiesMarks and Spencer utilise higher technologiesandmethodsfor meetingnewlevelsof achievement. Hence, technology business operations that can help inachievingtheirdeveloping technologies in effective manner. Tesco can retailing companies whichsuitabletechnologies developingtheiroperations. Thiscanhelpinachieving businessinmoresignificant manner. For dealing with these sort of changes, leader and manager of enterprise are accountable preparing effective plans which is affecting positive influence. For this, management require to frame proper strategies and changes: 3
Strategy: Whether small or large company, there are various negative and positive impact which change lead to an enterprise like Marks and Spencer. Through implying proper market and environmental analysis, organisation can influence in dealing with harmful elements. Operation: Manager and leader has to make look for develop company's operations in order to utilise new technologies and techniques for meeting effective results. Hence, both M&S and Tesco are operating various strategies and plans in order to achieve better and efficient outcome in more significant manner (Branson, 2010). Through the help of this, Marks and Spencer will be able to evaluate the measures of change in their structure and processes. P2. Ways through which internal and external drivers of change affect leadership, team and individual behaviour Change management can be refer as the execution and defining of suitable techniques and tools so that modification can be met within the association along with earning more benefits within an enterprise. For meeting the needed outcomes of business, this can be considered as the procedure, technique and tools to maintain the side of people. Although, external and internal drivers need to evaluate for managing negative influence from team, individual and other entities of enterprise, There are majorly five components of external changes which need to evaluate for understanding teams, individuals and leadership which is mentioned as below:Consumer-led Drivers:this driver impact on the consumer perceptive and positioning of enterprise. Hence, these driver has to understand through Tesco and Marks and Spencer leader frame their strategies and operations as per those drivers.Technology-led Driver:In order to increase competitive edge, Marks and Spencer has to utilise entire new and modified technologies in more effective manner, Although, this elements are considered as the major profits that is being undertaken individuals and leaders of an enterprise effectively so that outcomes and working can perform in their best ways (Carrington, Deppeler and Moss, 2010).Competitor-led Driver:With different market changes, number of competitorsare increasing each and every day in the global trade. Hence, Marks and Spencer has to make this account properly consent. 4
Government-led Driver: Due to change in the state legislation, policies and rules, operations and activities are affected in various manner. Hence, M&S and Tesco have to coordinate proper PAESTLE analysis in order to deal with consent. Beside this, Marks and Spencer and Tesco has been carrying out proper management and resolution of issues for dealing with changes in structure and policies in proper manner. Rowe, in order to creating change in their operations function in other nation, need to execute proper SWOT and PEST analysis which is mentioned as below:Political Factor: This is one of fundamental components of Marks and Spencer in order to comply for policies of government. When the state introduce the change in clients such as Green tax, levy and company comply those legislation and developed their policies. This also introduce non-gm foods (Doppelt, 2017).Economical Factor: After the period of Brexit, the country has experienced financial fall and decrease in GDP rates of enterprise. The increase GDP has led to financial crisis and recession in country. Hence, this has led to downfall in financial condition of nation.Social Factor: In the recent scenario, Marks and Spencer desire to focus over modern and food products for which company has been developing more latest and colourful for women. Marks and Spencer has agreed with their consumer to pay through cards in order to contentwiththeircompetitorswho hasacceptedmanyother technologiesand techniques. Technological Factor: Marks and Spencer introduce new technologies in order to gain in market growth and consumer. This facilitate consumer to sop from online as well as offline stores (Fyke and Buzzanell, 2013). There are various more amendments that can assist an individual in achieving their business targets and objectives in effective manner. Leadership style of company has recently amended and created various alternation within their basis system. This is required for enterprise to properly analyse micro environment of company which can help in managing their growth and development of enterprise. Here are mentioned SWOT analysis of Marks and Spencer: Strengths This is one of the major and powerful retailing brand within the entire market. Marks and Spencer products are more perceived toward 'money oriented' cause to convenience, quality and other broad service range. 5
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They have their own labels of brands.The company has employed more than 80, 000 worker form a workforce part globally. Weaknesses:Strong competition from other supermarket brand refer to the limited share of market. Being a more popular brand, they are required to protect their recognition of company from fake misuse the initiation of service (Hintz and Bahia, 2013). Opportunities: Marks and Spencer can evolve their websites and services. They can render more segments of market along with several benefits.There are various opportunities in the brand extension into China and India. Threats: Government policies in the stores of retails. Other retails stores which are considered as a threat cause of their discounted costs. Marks and Spencer being a global supermarket company mean the enterprise are more exposed to their distinct political facts in their countries in which they function. Hence, there is various impact of the change on team dynamics, management activities and people which can lead to development. Marks and Spencer's new change in their structure andpoliciesareleadingtheenterprisetowardmoredynamiceffectsontheirinternal environment and external factors which can help in meeting their basic outcome. This has majorly impacted over the economic aspects as this has led to more than 150-200 million Euros budget of the organisation. P3. Measure that can be taken to minimise the negative impact of change on organisational behaviour Change can be supportive and earful in nature for several organisation and their influence can be more perspective (Inozu and et. al., 2011). Hence, this the duty of manager to utilise their measure that support their positive organisational behaviour. Whenever, any modification in business organisation can be considered as the parapsychological influence of such alternation on a person. For adopting the various changes in the whole system for implementing the allotted budget to Marks and Spencer along with achieving their business objectives, the company has utilised system theory which is mentioned as below: 6
System Theory This is an interdisciplinary concept in regard of complex nature system in society, science and nature. This is a structure through which individual can analyse, evaluate objects of grounds that perform together to introduce some outcome. This would be single organism, any society or company, or informational artefacts or electro-mechanical. This was formed by Eugene Odum, Howard T. Odum and Fritjof Capra. In Marks and Spencer's new CEO has been working over new strategy for which Steve Rowe has implementedBurke-Litwin Model in order to implement the system theory in this structure: Burke-Litwin Model This model of change and performance was formed in 1922. This model revolve around the establishing and defining cause-and -effect relations among 12 dimensions of organisation which are the major change key (Nahavandi, 2016). Here is illustrated the graph followed by enterprise which is mentioned as below: 7
Leadership:This states that leadership has major role in the motivation of vision and mission of organisation which helps in achieving their business objectives.Strategy and Mission:This elements explains their organisational purposes as well as also their procedure which can help in meeting this.Culture of Organisation: Values and norms of enterprise who is less formal than strategy and mission but this still exits implied throughout their company (Nahavandim, 2016).External Environment:This elements represents any condition and forces organisation outside which will influence processes. 8 Illustration1: Burke-Litwin Change Model (Source 1:Burke-Litwin Change Model, 2018)
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Organisational Performance and Individual:This elements is the entire organisation's output. It can be claimed in various distinct commonly, turnover, consumer satisfaction, productivity etc.Structure: The organisation's breakdown such as departments, hierarchy, channel of reporting etc.Management Practices: Activities and behaviours of manager, often allotted to meet their overall strategy.Motivation: The goals setting to direct and inspire worker.Task requirement & Skills of Individual: Matching their description of work along with professional worker.Values and Needs of Individual: Worker will expect specific demands like work balance, pay, responsibility etc. Climate of work Unit: Team environment f working, cooperation among members etc. Among entire mentioned elements, external environment and organisation & individual performance is beginning process where leadership, strategy & mission, organisation culture are transformational elements as well as practice of management, structure, framework, motivation, taskrequirements,individualneedandworkunitenvironmentaretransactionalfactors (Nahavandi, 2016). Hence, this is fundamental for administration to undertake some effective phases in regard of decreasing more negative influence such as resistance for changing their behaviour of enterprise. Continuous Improvement Development This can be defined as the ongoing activity in order to develop their service, products or procedures. This can be referred as incremental development overtime. The whole procedure follows the major four step quality as plan-do-check-act cycle which is mentioned as below:Plan: Recognise the plan and opportunity for change.Do: execute the small scale change.Check: Use information to evaluate the outcome of alternation as well as set whether change incurred. Act: If this is successful, execute this on broader scale along with constant result analysis. In case of failure, the whole cycle of procedure begin again. 9
Through the help of system theory and continuous development model, enterprise can achieve their business objectives in more significant manner (Carrington, Deppeler and Moss, 2010). In order to achieve their activities, this can lead company to success through opting effective pathway, develop and participate in strategies, organise seminars etc. Through the help of Burke Litwan model can help and affect the model of change within enterprise helps in achievingtheir business of Marksand Spenceraiding in acceptingnew modificationin significant manner. TASK 2 P4.Different barriers of change and their influence on decision making ThisconceptisrenderedbyEdgerSchienofmanagementthatisexplainedthe organisational leadership and culture. Due to the change, there are various changes which is emerged within enterprise. Various issues linked with the external and internal environment of organisation. Self perception efficiency and change resistance: When Rowe carried out change in the major elements and activities of enterprise, there are various negative influence and factors that included within the organisation (Branson, 2010). Resistance is confirmed factors which that emerge in response of change within the organisation so as in Marks and Spencer. There can be various kinds of resistance such as internal working resistance, technological issue and instability in supply and service delivery etc. are the barriers that can restraint growth(How to Overcome Resistance to Change in an Organization,2018). In order to manage this, enterprise can implement force filed evaluation which is mentioned as below: Force Field Analysis: This concept is basically rendered through Kurt Lewin who support the change of culture but there are some criticism which deny this model. Leader of company struggle when the people take more decision in regard of operation, There are various barrier emerge within company which influence external staff and environment to fearful technologies. Case Study: As per the case study, Rowe need to manage the activities and operation as per new activities which can lead to success of enterprise. This is complex for leader to seek that 10
whether opinion logical and relevant. The major aim behind this is create more rational strategies in market against the competitors. TASK 3 P5.Different approaches of leadership while dealing with change The theory of situation leadership is formed by Paul Heresy and Ken Blanchard in 1969. The model relay on the supportive behaviour and indirect behaviour of leader. This employs different tasks and each types of leadership styles (Bingham and Main, 2010). This can be characterised in various relationship and task behaviour that follower rendered by leader, This can be characterised into four sorts of behaviour which is mentioned as below:Directing: This is defined through one-way interaction in which company leader explains the individual roles as well as render how, what, when, why and where to perform task.Coaching: In this, leader work over rendering proper direction through using two-way communication along with giving social-emotional support which can influence their group purchase into procedure.Supporting: In this given task is being performed along with managing high relationship treatment with worker. Delegating: As per this leader, leader is engaged in decision, however the responsibility and process has been performed to group or individual. As per this theory, Marks and Spencer can manager their style of manager along with create more flexible environment in order to meet their set outcomes. Initiating the organisational change, this is a wide phase (Aslan and Reigeluth, 2013). Company can also utilise Kotter's 8 Step model for reaching their major outcomes and benefits in effective manner. Here are mentioned this model is brief in context of M&S: Kotter’s 8 step Model of Change This modle was performed by John Kotter 1996 who has provided a change model of change within the company. Kotter have introduced major 8 steps for adopting change which is mentioned here: 11
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1.Form urgency Sense:This helps in examining market and competitive realities. 2.Powerful Coalition: In this phase the group is assembled to lead the efforts of change. 3.Cratevision:visionofcompanyisdirectedalongwithstrategies(Andersonand Anderson, 2010). 4.Vision Communication:Using communication vehicle and channel to interact the strategies and vision. 5.Empower employee:removing obstacles for improving change. 6.Creating and planning:Management of performance for plans. 7.Producing and consolidation to change: utilised change increased to system of change. 8.Approaches institutionalising:connection between corporate successes. CONCLUSION This can be summon from the above mentioned report that change play effective role within a company. This is fundamental for enterprise to understand the models in effective manner for encouraging them. This is required for an organisation to examine various drivers, environment, operations and strategies of company in order to achieve their business objective. Enterprise can opt different models and theories for meeting modified change such as Kurt 12 Illustration2: Kotter's Step Model (Source 2:Kotter's Step Model, 2018)
Lewin, continuous improvement development and Burke-Litwin change model etc. which can help in achieving business objectives in significant manner. 13
REFERENCES Books and Journals Anderson, D. and Anderson, L. A., 2010.Beyond change management: How to achieve breakthrough results through conscious change leadership. John Wiley & Sons. Aslan, S. and Reigeluth, C. M., 2013. Educational technologists: Leading change for a new paradigm of education.TechTrends.57(5). pp.18-24. Bingham, D. and Main, E. K., 2010. Effective implementation strategies and tactics for leading change on maternity units.The Journal of perinatal & neonatal nursing.24(1). pp.32-42. Branson, C. M., 2010.Leading educational change wisely. Rotterdam: Sense Publishers. 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. Fyke, J. P. and Buzzanell, P. M., 2013. The ethics of conscious capitalism: Wicked problems in leading change and changing leaders.Human Relations.66(12). pp.1619-1643. Hintz, C. and Bahia, H., 2013. Understanding mechanisms leading to asphalt binder fatigue in the dynamic shear rheometer.Road Materials and Pavement Design.14(sup2). pp.231- 251. Inozu, B. and et. al., 2011.Performance improvement for healthcare: Leading change with lean, six sigma, and constraints management. McGraw Hill Professional. Nahavandi, A., 2016.The Art and Science of Leadership -Global Edition. Pearson. Online How to Overcome Resistance to Change in an Organization.2018. [Online]. Available through: <http://smallbusiness.chron.com/overcome-resistance-change-organization-154.html>. 14