Understanding and Leading Change

This document discusses the impact of change on organization's strategy and operations, evaluation of ways through which internal or external drivers of change affect leadership, team and individual behavior, measures taken by organization to reduce negative impact of change on organizational behavior, and different barriers of change and their influence on decision making.

UNDERSTANDING
AND LEADING
CHANGE

INTRODUCTION
Culture of organisation is affected by the internal and external behaviour of environment.
Business environment is dynamic in nature which alters frequently due to market trends,
customer demand, needs and desire for unique products (Alkahtani and et. al., 2011). The whole
attitude of environment enforces company to make changes in their working style in order to
remain sustain in competitive market. Understanding of changes is considered one of the
essential factors for making business operations more progressive in nature. Modification in
traditional hierarchy required in order to reduce the market threads and explore opportunity in
order to gain competitive edge over competitors. Changes have multiple negative effects in
organisation climate like anxiety, fear of retrenchment, demotion and reduction in compensation
policy. So their is a need to make great discussion of all problems of working employees with
leaders through training session which help a lot o overcome from the phase of depression and
instability. The main object of whole efforts is to prove that changes in management strategy,
policies bring good outcomes in long run. The report includes Apple and Samsung involved in
telecommunication sector with major objective of providing quality services to their target
audience.
TASK 1
P1 Impact of change on organization’s strategy and operations
Business runs in society. And society’s environment is dynamic. Hence if there are
chances in change in any component of society, then it impacts on business also. Organization’s
strategy stands for plans and decisions made for running of business. These strategies not only
help in running company smoothly but also prepare management to face future uncertainties. To
become successful in industry company have to modify its policies. If any company does not run
as per need of environment it will get lost and consumer does not recognize it. So there is direct
impact of change in any market component it affects company either in positive or negative way.
These frequent changes make organization to compete in industry and beneficial for growth as
well.
Sometimes it is mandate for organizations to modify its policies and plan. There is
technological change then it will be beneficial for company and individual as well. In
case of technological upliftment, there is requirement of less workers and production
will be done with more speed (Aslan and Reigeluth, 2013) . From the view of
employees, they feel more motivated and interested to work new technology. But for
some people this change is positive while for others it is negative. Leader or manger has
to analyze views of different individual so that plans can be implemented more
effectively. Samsung and Apple are two major companies deal in mobile industries all
over the world. Apple is a big organization as compared to Samsung. These big
companies get more affected by change in environmental factor. Impact on Apple and
Samsung are discussed below:
Basis Apple Samsung
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Technological changes Apple produces high cost
mobile phones. It deals in ios
so as per customer need there
is requirement of updated
version. It requires huge cost
for research and development
and planning.
There is requirement of
upgraded technique for
customer satisfaction.
Samsung has to change its
technology as per society need
and competitor strategy. It
provides chances of reduction
in production time though it
requires fund as well.
Change in external
environment
This company deals in
different operating system as
compared to other companies.
There are different group of
society which are target
customers of Apple. They gets
affected by external factors
but as Hence it gets less affect
from external environment,
still they have to alter their
plans and policies.
There are large group of
customer range with which
company has to deal. There
occupy large customer share.
To make existence in market
they have to modify their
strategies and operations
manager has to analyse market
factors and motivates
subordinates to achieve them.
Structural changes This is internal factor of
company. This is also major
issue due to which company’s
performance may get affected.
There is problems arise in
company when there is change
in management of
organization. Some personnel
are resist to change as they are
scare of losing their job, it
causes problem for company.
So management of Samsung
provide them feeling of
security.
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Management of any company has to deal with it when there change in environment of
business. Managers have to try to come up with some new idea to resolve problem and
modify their working style (Fagerström and Salmela, 2010). It is important task of
superiors and top level personnel of Samsung and Apple to check regular what need of
society is and come with that alternative idea and motivate union members to achieve
organizational goal. Apple is a company who are rigid regarding their technological
factor, this proves to be negative impact for company’s growth.
P2 Evaluation of ways through which internal or external drivers of change affect leadership,
team and individual behaviour
Any change in society either due to internal or external affects business in various ways.
Company management has to check with which company can deal. These factors affect
leadership policies also. It means working style also gets disturbed. Apple and Samsung also deal
with these changes, there are five ways which affects leadership, group and personal behaviour:
 Technological led driver: In mobile industry technology is most important aspect. Hence
companies have to keep check on technological changes take place in society. It not only
speeds up their growth but increases customer faith in brand.
 Investor led driver: every company want finance to boost up, managers or top level
personnel has to analyze all options of investors. Such factor should be opted which does
not need huge cost and formalities.
 Customer led driver: Customer is king of any brand. This is the factor which provides
business heights or lows. Samsung and Apple have regularly research about change in
desire of consumer.
 Government led driver: Business runs in society and government works as watch dog in
society. This reduces the chances of fraud in society. As per change in any legal formality
then company have to modify its plans and operations.
Competitor led driver: Business runs in society where many other companies exists. Samsung
have many competitors. If it does not provide services as per need of consumer then it
reduces their brand value and shifts to other company (Finnigan and Stewart, 2010).
These factors hamper working of company and in case no importance is given to these
then there is less chances of growth. Companies have no control over such ways but
they can reduce its effectiveness up to an extent. Companies have to use PEST to deal
with external forces.
 Political: There are changes in rules as per change in political party. Samsung and Apple
operate its business in different parts of world. Change in this force affects individual
behaviour also.
 Economical: Any resource opted by company must be cheapo and easily available, this
not only reduces cost but also make ease to operate business. Apple and Samsung
research and analyze about such things.
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 Social: Business runs in society, hence companies have to take care of changes happen in
culture. Alteration in society is reason to alter companies’ operations also. To develop
business there is requirement to measure social changes.
Technological: Techniques up gradation is as important as development of business. It is
required to measure changes take place in society and hence give research to opt most
suitable way to accept it (Foltin and Keller, 2012).With external environment internal
factors are equally important. As they also affect company and it is also needed that
they are analyzed carefully. Corrective measures are taken reduce effect of these factors.
They not only affect business growth but employee’s behaviour as well. Internal factors
can measure by SWOT analysis.
 Strength: For Apple it is beneficial that they serve different operating system as
compared to other companies. Hence they have less competitors in market. While in case
of Samsung they have high brand value as compared to others.
 Weakness: Apple serves to niche market, they accesses to limited group of society. Their
products are costly as compared to other companies. Hence this proofs to be negative for
them. Samsung competes with all brands, so they have alter their policies accordingly.
This frequently change does not bring quality.
 Opportunity: Companies have to search in market that what all opportunities they can
grab. This provides edge over competitors. There are sometimes good options which
company can avail and expand in market.
 Threat: It is something of which company has fear. In UK initial people are more prefer
to use Apple phones but as they are expensive and limited edition. People start switching
over other brands. It creates fear of losing customers in the mind of company.
P3 Measures taken by organization to reduce negative impact of change on organizational
behaviour
Change makes little more efforts to accept and move on. There are many factors which
affect operations and smoothing working of organization. Top level management has to
analyze working style in organization and then try best to apply them on organization.
Leader has to be positive and adaptable to change so that they can motivate employees to
accept it. Company should apply following steps to reduce effectiveness of changes-
Creation of pathway: It is duty of manager to create a path with which subordinates can work
and try to achieve objectives of company even after getting change in market. It requires
lot of planning (Fyke and Buzzanell, 2013). Various alternatives are analyzed and
among them best should be opted.
 Explain about plans: After choosing best technique it has to be delivered to staff so that
effective efficiency application can be done. There are various queries by workers,
manager has to clear them all and provide comfortable environment.
 Participation in meetings and seminar groups: In case of any major change in
environment industry organize seminars. Management of company has to participate in
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them so that they can come to know about current scenario. This will provide ease to
them while planning as well. There will be discussion and many more new ideas came in
mind.
 Managing planning and its implementation: Afterwards company has to plan its
policies. It is not mandatory to accept policies as it is. Company can make chances as per
need and availability of resources and then afterwards proper implementation has to be
done (Gupta, 2011).
 Implementation of plan with suitable goals and targets: Every organization has its
objectives for which they operate. Hence while applying plans to job it is required that
there is specific goal. There can be short terms goals, it motivates employees also to work
efficiently.
From the above discussion it is concluded that not only company gets affects from
environmental change employee and consumer behaviour also changes, which ultimately
hampers organization. External as well as internal factors equally disturb operations of company.
Samsung has more competitors and have huge consumer range. They have to plan their
strategies as per need of society and policies of competitors. Hence they follow steps above
mentioned so that they reduce chances of conflicts in company. This not only improves
efficiency but also provides growth to organization.
TASK 2
P4. Different barriers of change and their influence on decision making
There are different hurdles which influence the decision making of company. Many
studies designed to examine the positive challenges of good leadership as an ongoing process
may have various application that impact on attainment of organisational objectives. Model
given by Edgar Schien professor of management Emeritus who give the brief detail about the
effect of changes on organisational culture. Many problems arises which is related to government
and political conditions, internal external environment affected by high competition or other
personal disputes between the strategic, middle and operational level which create barrier in
decision making.
When leader at top level takes the decision related to introducing new product in market due to
customer demand, increase prices, quality, supply and logistic change and adaptation of
new technology (Hallinger and Heck, 2011). The main problems arises related to
survival and retention due to frequent changes in internal and external environment
which shows the negative impact on the behaviour of internal employees and they are
resistance to change. Further problem of restructuring the organisation culture which
make organisation more ethical and enhance their brand equity. Some of the models and
approaches in aspect to Thomas cook as follows:-
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Self efficiency perceptions and resistance to change
At the time when new changes are adopted in organisational culture especially in internal
environment then employees under the premises has self perception that alteration affect their
ability, skills, talent and their career advancement. Thus, they resist changes because of
scarceness of any weakness coming during whole process and this thinking of staff make
modification impossible. A lot of time, energy and cost involved to change the perception of
employee from negative opinion into positive one.
Another problem arises at the time of upgrading new technology, initiative by leader for
digitalisation of whole process because employees are not trained and educated for the
use of new technology so leaders required organising training programmes for giving
education for usability of technology (Hintz and Bahia, 2013). It create barrier at the
time of matching with competitors position in that particular fields.
Force field analysis:-
This model is given by Kurt lewin which supports the culture change but some
opposition created against such approach. Leaders find difficulty at the time of taken hard
decisions because he or she is not specialised in every field which create barrier. Hurdles arises
in the form of lesser participation by employees, more labour turnover, frequent modifications in
external environment and dilute of brand image due to staff negative attitude regarding new
technology. Sometime forces are against changes due to existing organisational structure which
act as a barrier in reorganising modern structure for different departments.
For example Apple is multinational US based company face difficulty at the time of competitors
come with android software at cheap price which attract customers.
Situational resistance to change
This whole theory is situation based i.e. company make changes according to the set vision and
objectives of organisation. The main objective behind this approach is altering working
culture of organisation so that organisation policies, procedures and way of offering
their products and services attracted their set target audience and provides a competitive
edge over competitors (Jones, 2011) ..Sometimes company adopt rigid style in their
working style so in such case this theory doesn’t work and act as a barrier in
organisational decision making and change management.
Case study:-t
Under this situation leader plan to gather whole employees at one place through training
development programs. In this case study related to recent market situation is given in which
staffs has to deal. The main objective of leader behind it to gather the different opinion,
innovative ideas from every employee in order to take rational decision related to alteration in
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upcoming market strategies. But this vast discussion brings clashes in relation between superior
and subordinate which act as a barrier in decision making of organisation.
TASK3ar
P5 Different approaches of leadership while dealing with change:
Situational leadership is a theory of leadership that is part of theory which is known as
contingency theory of leadership. It defined leadership traits behaviour in different
situation factors related to external internal factors of environment. This theory is
developed in 1969 by Paul Hersey and Ken Blanchard which give the knowledge of
different styles in this theory (Latham, 2013). Further, this model shows leader
effectiveness is contingent on his ability to change his management behaviour to the
level of understanding behaviour of subordinates or erudition.
This model describe the different leadership style based on leader behaviour based on various
level i.e. telling style where the leader show high directive behaviour and low supportive
behaviour, selling style demonstrate high supportive and high directive behaviour, Participating
style reveal leader low directive and high supportive behaviour, Delegating style exhibits both
low supportive and directive behaviour. From follower point of view it is depend on task
maturity i.e. ability to perform task and psychological maturity represents willingness to perform
tasks.
This model fit in present corporate situation where leader has to adopt flexible behaviour
according to changing conditions in order to bring good outcomes in future. This
approach help leader in influencing the behaviour of their team members. The main
objective behind this style is to show how much person is capable in performing task so
all the targets associated with company mission fulfilled in specified time period.
Although this model more emphasis on tasks not on empowerment which lead to work
done in effective manner (Mukherjee and et. al., 2012). Apple is a multinational
telecommunication company headquarter in united state founded by Steve job and able
to diversified business in different country and attained brand equity in all over world.
Although has many competitors so this company uses situational leadership style for
accomplishment of objectives.
Initiating changes for effectiveness in leadership approaches-
Initiating changes in organisation is a big step because it required focus and attention. New
policies, strategy, compliances and training are implemented and embraced over time in order to
beat their competitors in market. Modification in organisation culture evolves both positive
negative reaction which must be controlled in order to achieve company targets. So it is
important for leader to put concern on all changes and take appropriate step to make aleration
effective.
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It is a responsibility of leader to adjust the organisation according the external environment and
influene the behaviour of whole employees so that they take a rational decision in
favour of company. For example apple is big multinational technology us based
company. Leader of this company has to manage worldwide sales and operations that
include end to end management of apple’s supply chain, services and support in all
market country (Nazir and Naqvi, 2012).
If any employee facing any difficulty in adjusting with modern organisation culture then it is a
duty of leader to interact personally with that individual. The main objective behind it to
know the weakness, disability at the time of supporting organisation decision and give
that person direction so he or she put her efforts in achieving their goals. For example
apple brand is diversified in various countries so sometime it is difficult for foreign
people to adjust in different culture so leader of that department help their team to adjust
with that culture (Nkomo and Kriek, 2011). Leader of Apple’s Macintosh division
played a key role in the continued development of strategic reseller and supply
relationships, ensuring flexibility in response to an increasing market demand place that
help to compete with external players in all over world.
Effectiveness of leadership approaches and models in hange management in aspect to Apple:-
It is relevant to say that effectiveness of leadership model in change management is possible
because presence of efficient leader who know very well that how to use these approaches
practically in organisation decision in order to get rational decision. Team leader of Apple at top
management are professionals and they are trained in using these principle according to changing
management. Here are the kotler 8 model that define productive use of this approaches:-
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Figure: Kotler 8 step model Source: Change management process
 Create urgency:- for successful implementation of change it help the company who
really want it. There is a need to develop a sense of urgency for effective change. Further
only by counting bad financial performance and increased competition to staff change
implemented. So, company leader show potential threads and develop scenario exhibit
what happen in future and show opportunity which must be exploited, start honest
discussion which leads to change in organisation (Nowell and Harrison, 2010).
 Form powerful coalition:- influence people that change is necessary. This often needs
strong leadership and visible support from key people within organisation. Leaders has to
convince internal employee that their is no need to follow traditional hierarchy. For
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example apple successful in change management only because of time to time
modification in organisation structure.
 Create a vision for change:- when management team first thinking of change, there will
probably be many ideas floating in our mind. Connect your concept with vision and
discuss the alteration with employees that how changes bring profitable outcome.
 Communicate the vision:- their is a need to effectively communicate vision and address
people anxiety openly, honestly. Apply vision on your operation by leader for change
management.
 Remove obstacles:- Concern on organisation structure, job descriptions and performance
compensation system. Take action fast and remove all barriers.
 Create short term wins:- Nothing motivate than short term success so focus on sure fire
projects, don’t chose expensive target initially for effective alterations (Alkahtani and et.
al., 2011).
 Build on the change:- Kottler discuss that many changes leads to failure because of
advanced declaration of victory. So fast wins are the roadmap for long term successful
change.
 Anchor the changes in corporate culture:- last and important step in which company
has to stick with all changes they decide. Leaders build such relationship with co-workers
that they easily convince with corporate modifications and adopt new culture easily.
Thus, Apple is proof one of successful brand at the time of implementing and leading changes.
Come with own Macintosh software without concerning the failure of strategy. Introducing
series of mobile, laptop and tablets with high defined quality in term of technology and
durability.
CONCLUSION
It can be concluded from above report that leadership play an important role not in corporate
life but influence individual personality also. Further, it discusses about the leadership theory,
models and approaches which apply on organisation change management. This whole report
discusses about Samsung and apple comparison in respect to efficiency, skill and ability tio
modify the behaviour of employees. After that description about internal and external
environment that impact on company profitability, brand equity and customers loyalty. Then
leadership quality and ways through which effectively change management successfully
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achieved their planned strategy through the example of Apple company. Lastly report shows the
employees resistancy towards changes which create hurdles in grapping external opportunity and
sustain with external competitors. So leadership styles help leaders in transforming the attitude of
internal staffs from negative to positive thinking towards changing organisation culture.
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(Alkahtani and et. al., 2011) (Aslan and Reigeluth, 2013) (Fagerström and Salmela, 2010)
(Finnigan and Stewart, 2010) (Foltin and Keller, 2012) (Fyke and Buzzanell, 2013)
(Gupta, 2011) (Hallinger and Heck, 2011) (Hintz and Bahia, 2013) (Jones, 2011)
(Latham, 2013) (Mukherjee and et. al., 2012) (Nazir and Naqvi, 2012) (Nkomo and
Kriek, 2011) (Nowell and Harrison, 2010)
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