Understanding and Leading Change

This report discusses the impact of change on an organization's strategy and operations, internal and external drivers of change affect leadership, team and individual behavior, and measures to minimize negative impact of change on organization behavior. The case study focuses on Rolls Royce, a British luxury automobile company, and its adoption of changes to increase productivity and profitability. It also explores different organizational examples with the impact of change, barriers for change, and different leadership approaches to dealing with change.

Understanding and
Leading Change
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Different organizational examples with impact of change.....................................................1
Task 2...............................................................................................................................................3
P2 Internal and external drivers of change affect leadership, team and individual behaviour....3
P3 Measures that can be taken to minimize negative impact of change on organization
behaviour.....................................................................................................................................5
Task 3...............................................................................................................................................7
P4 Different barriers for change and they influence leadership decision making.......................7
Task 4...............................................................................................................................................8
P5 Apply different leadership approaches to dealing with range of changes..............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Understand the leading chance means to know the current trend what is running and what
people wants so that kind of products and services provided to them. This is important for
organisation to follow all changes and bring something new that can help to maintain the high
productivity and profitability. A person who have knowledge and experience is required to
formulate the policies and strategies so plans can be implemented effectively (Anderson, 2016).
In competitive environment there are different businesses who are making plans and increasing
their production which helps to maintain the higher productivity. To understand about this, Rolls
Royce has been taken that is large size automobile company providing different model of cars
and adopting changes effectively. This report discusses about impact of change on an
organization's strategy and operations, internal and external drivers of change affect leadership,
team and individual behaviour in an organization, different barriers for change and they
influence leadership decision making and different leadership approaches to deal with change
that helps to achieve business objectives.
Task 1
P1 Different organizational examples with impact of change
Introduction about organisation – Rolls Royce is British luxury automobile company
that is situation in UK. This organisation was established in 1904 in the partnership of Charles
Rolls and Henry Royce. This is manufacturing and developing best cars in the world which
attracts customers and increase the organisational productivity. The First World War took them
into aero-engines production. Joint jet engine development started in 1940 and both entered
service. This organisation is accepting changes time to time and brings new innovation which
helps to increase the organisational productivity (Alavi and Gill, 2017).
From the case study it has defined that every organisation is need to accept the changes
which are important for the purpose of facing competition. For instance, the management of
Rolls Royce is effective manager who adopt radically changes in their organisation and operated
business by increasing product portfolio. They understand that changes are the important faction
which can help to increase their business activities. Therefore, Rolls Royce is also adopted
changes which help to run business in competitive environment.
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Organisational changes are considered as important factor which is needed to adopt by all
companies in order to accept the challenges and won the competition. This is important for
organisation to understand what is going on market and how they adopt the changes so
productivity and profitability can be maintain. The manager of such organisation are using new
technology and manufacturing process so better design and model of cars can be produced
(Doppelt, 2017).
Bentley motors is another example of organisational changes who deals with problems
and accept the changes effectively so business can be operate effectively and maintain the high
productivity. in this organisation managers are highly updated who knows that what they should
and how to attracts customers so they build new models of cars with quality of features helps to
organise business effectively.
Both organisation are brining changes in their operation that are as defined
Changes Rolls Royce Bentley Motors
Structure This organisation is following Division
structure which is mainly followed by
large size company where number of
employees are working and operating
wider geographical area. In this, task is
divided between employees so that
helps to complete the task and activities
effectively. For example, a new
products is going to manufacture by
selected organisation then manager
assign the roles and responsibilities
among employees by understanding
their skills and technical skills that
helps to complete the task and attain
business goals.
This organisation is following
functional organisation structure in
which each department such as
marketing, production, sales and IT
department are performing their
activities by concerning and reporting
to superiors. This structure helps to
increase the organisational sale and
brand image by providing better
quality of products and services. for
instance, manager of chosen
organisation are using new
technology with the help of
employees who perform and complete
the activities and report their
executive so business can be maintain
effectively.
Types of Rolls Royce is having emergent Bentley motors is adopting planning
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changes changes in which changes are bring out
based on assumption quickly. This is
quick changes process where changes
are developing and shipping quickly
that helps to perform well and take
competitive advantages.
changes in which a strategy of
planning and implementation is long
term that is required to perform well
and by implementing changes
effectively.
Strategy The manager of such organisation is to
increase the productivity and brand
image so there is required to follow the
functional structure that will help to
improve performance by accepting
technological changes and reporting to
their superiors so activities can be
perform effectively and maintain the
business (Komives, 2016).
The major strategy of such
organisation is to expand their
business by operating their business
in other place so manager has decided
to follow network structure that will
help to adopt new technology and
maintaining good relations with
customer in other country that help to
increase business profitability.
Task 2
P2 Internal and external drivers of change affect leadership, team and individual behaviour
In business environment there are different organisations which are performing well by
facing the competition and maintaining the business effectively. Drivers are the forces which
uses by organisation in order to responding towards change and operating business effectively.
The organisation need to focus on internal and external drivers that are as defined:
Internal drivers – This can be considered as challenging force which can be control and
helps to maintain the organisational performance. According to this any type of changes can be
hard to accept but after adopting this manager can improve their organisational performance.
This contain SWOT analysis that is defined below:
SWOT analysis of Rolls Royce
Strength Weakness
 Rolls Royce is large size automobile
company that has number of outlets
that help to run business.
 High spending on research and
development that reduced organisation
productivity.
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 It has good distribution network that
ensure customers that products are
easily available in market.
 Large assets base that provide solvency.
 This organisation has invested amount
on skilled workforce, training and
development in order to generate
positive revenues.
 Rented property rather than purchase
for this it pays high charges.
 Lack of proper financial planning
 Lack of legal department employees
and legal experience that are not highly
qualified.
 The morale of employees is low due to
changing culture and politics.
 Employee turn over that is increasing
shortage of talented workforce.
Opportunities Threats
 Rolls Royce has an opportunity to
expand their business online by using
internet.
 New trend and growing automobile
industry that is increasing interest of
people.
 Technological development which help
to produce new cars and increase
selling activity.
 Increasing population that help to
increase number of customers.
 In UK, there is low interest rate which
has create an opportunity for
organisation to run business.
 Maintaining good and healthy
environment.
 Number of new niche market that is
opportunity for organisation to sale
their cars.
 The taste and demand of customers are
changing that pressure on organisation
produce more attractive and design of
cars.
 New technological development by
other organisation who are Bentley,
Tesla, Aston Martin.
 Fluctuation in exchange rates
 Political barriers that can be challenges
for organisation to establish their
business by following political system.
 Increasing prices of fuel that can switch
customers towards others.
 Increasing competition where existing
organisation to provide products at low
cost and competitive price.
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External drivers – This is very challenging force that need to be focus by organisation
while running a business. These forces are related to political, technological, economic, social
and environment that are very hard to accept which has impacted on business in competitive
environment. To analysis the external drivers PEST analysis helps to know which factor can
impacts their business (Fullan, 2014). The PEST analysis in context to Rolls Royce that affects
individual behaviour , team and leadership are as defined:
Political – Political factor is playing important role as it consider political system, tax
rates, government regulations etc. in relation to UK. There is stable government policies which
has impacted positively on Leadership and team such as leader of Rolls Royce support their
employees to run business by expanding business and they also provide proper guidance to a
team group which helps to perform business activities effectively (Gupta, 201).
Economical – In this, organisation focuses on inflation rate, interest rate and disposable
income which has impacted on Rolls Royce positively. In UK, low inflation rate which impacts
individual behaviour such as incremental in disposable income. On the other side, leadership
affected Rolls Royce positively by supporting employees and providing them products according
to their disposable income. At the same time, low disposable income due to high inflation rate
limits the customer and their purchasing power.
Social –In changing environment it is important for organisation to focus on changing
needs, taste, age, GDP and social change which are important to run business. In Rolls Royce,
changing needs and lifestyle is affecting leadership, team and individual behaviour. As leaders
understand individual needs and fill them which helps to work effectively. Moreover, leaders
provide a proper guidance to team or all group so new products can be manufacture according to
social needs and lifestyle (Lawrence, 2015).
Technological – This factor is related to technology where organisation need to introduce
new technology for the purpose of introducing new product, expanding business and maintaining
the high performance. By using this leaders of Rolls Royce are deciding to use 360 degree
camera and tracking system that can help to know about people and save from accidents and
dangerous (Hillson and Murray-Webster, 2017).
Herein, Rolls Royce changes was caused by external drivers of changes as they affected
the business of such organisation negatively. For running a business, management is required to
take government position and other formulation that are not stable in countries so it affected
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business in case of adopting changes negatively. Due to increasing in interest rate and inflation
rate in UK, organisation need to spend high amount of capital and need to pay high interest
charges while adopting changes that can reduced the organisational productivity. On the other
side, changes in people lifestyle and increasing rates of fuel, Rolls Royce is bring changes by
making electric cars that has affected the business positively. By adopting technology and bring
innovation such organisation accept the changes that has affected the company positively. At the
same time, cost and expenses of organisation increases which has affected business negatively.
Leaders get prepared team and individuals to adopt new technology and make efforts to bring
improvements.
P3 Measures that can be taken to minimize negative impact of change on organization behaviour
Changes are the important for organisation which need to take for increasing production
and capturing high market share. Different types of business activities is required to follow rules
and regulations that helps to maintain the good performance. In context to Rolls Royce,
managers has introduced technology and changes in their organisation which has impacted on
business negatively. Therefore, manager are deciding to use Burke Litwen Model that help to
minimize the negative impacts that are as defined:
Burke Litwen model – This is a model which helps to establish the relationship together
with managers who accept the changes. Whenever organisation is going to bring change then it
required to follow Burke Litwen model that reduced negative impacts that is defined below:
External environment – This involves some factor such as political, economical, social,
technological, environment and legal that can influences organisational behaviour. In this
manager of Rolls Royce need to understand the external environmental factors that which factor
have changes to impacts negatively and how it can be reduced. Moreover, manager formulates a
strategies that uses to reduce the negative impacts due to adopting changes (Anderson, 2016).
Mission and Strategy – Organisation decide goal, mission and strategy which can helps
to attain the business goals. In context to Rolls Royce, the goal of organisation is to increase sell
by attracting customers. For attaining the goals, Competitive pricing strategy is adopted by
managers which help the prices of product by comparing from others and maintain the
organisational performance (Alavi and Gill, 2017).
Leadership – This is states as leadership style which helps in growth of business by
adopting proper leadership style. The manager of Rolls Royce are following participative
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leadership style which help leaders to support in individual activities and guide them so activities
can be performed effectively.
Organisational culture – This means organisation need to adopt a proper culture that
can help to accept the changes and improve organisational performance. The leaders of Rolls
Royce are focusing on principle and practices which help to perform business activities and
reduce the negative impacts of changes.
Structure – Every organisation should follow a proper structure according to their size
which help to accept the changes and complete the task. In context to Rolls Royce, divisional
structure is followed by management where roles and responsibilities of employees are divided
and maintain the good performance (Doppelt, 2017).
System – The administrator of Rolls Royce are following policies, distinct procedure and
management system which helps to manage the changes which are brought by organisation and
helps to enhance the organisational activities.
Management practices – This is related to working method, innovative techniques and
responsibilities that are used by Rolls Royce that can helps to improve the working and
managing system by minimizing negative organisational changes (Komives, 2016).
Task and Skills – This element of model is related to individual task and skills of
employees which help to perform the business task effectively. In Rolls Royce, managers assign
the task by knowing employees skills which helps to make expertise and increasing capabilities
by accepting skills helps to maintain the good performance (Fullan, 2014).
Motivational level – In an organisation manager need to focus on motivational level that
attracts employees and getting the task complete. In context to Rolls Royce manager is required
to understand needs and wants then fill their needs that can motivate them and increase the
organisational performance (Gupta, 201).
Individual and general performance – This is another element of organisation which is
require to accept the changes and reduce negative impacts. In chosen organisation manager and
leaders is needed to focus on individual and general performance that can reduce the negative
impacts of changes (Lawrence, 2015).
There are many factors which can be used by management of Rolls and Royce to minimize
the negative impacts such as:
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Effective leadership – This is one of the best practices which can be used to reduce the
negative impacts of change of organisational behaviour. In this Rolls Royce is required to follow
the situational leadership that can help to solve the situation and changes as per situation helps to
perform business.
Training and prepare employees – Rolls Royce should provide training and development
programme to existing employees whenever they are going to adopt new changes by getting
training. This support employees to accept the changes and complete the task in effective time
period that helps to minimize the negative impacts.
Therefore, it has concluded that to reduce the negative impacts of political and economical
factor management is required to follow the government policies and need to maintain good
relationship that can help to implement the changes effectively. To reduce the social impacts,
new products and distribution services should be expensed that can attracts customers and
maintain good performance. Moreover, there is need to adopt new technology and best
distribution channel that help to increase the supply chain and organisational profitability.
Task 3
P4 Different barriers for change and they influence leadership decision making
Whenever organisation has decided to bring changes in their organisation then different
types of barriers in relation to changes are faced by company that can influences decision
making. It has seen that sometime organisation is not able to accept the changes according to
trend which has created many barriers. Therefore, force field model is used by Rolls Royce
organisation in order to analysis the change that are as defined:
Force Field analysis – This is a model which is given by Kurt Lewin in relation to change
in organisation and influenced decisions. For instance, the manager of Rolls Royce has decided
to bring change by introducing Rolls Royce Cullinan that is new model of car. At the time of
accepting changes some barriers can arise in business activities. There are driven forces and
resisting forces which are used to remove the barriers (Hillson and Murray-Webster, 2017).
Driven forces – This means positive forces which is required in business organisation in
order to accept the changes and run a business effectively. For instance, the managers of Rolls
Royce are considering increasing maintenance cost, improving speed of production and new
product demand by customers that should be consider by organisation while running a business
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and accepting changes. The manager of selected organisation are focusing on such factors fill all
needs that helps in driving the changes and bring new model resulting increasing in sale and
profitability (Painter and Clark, 2015).
Resisting forces – This means forces that can restricts a company while making changes.
This involves disruption, cost, environmental impacted due to new techniques, loss of staff
overtime and lack of skilled workers due to which changes are not accepted by company. To
reduce the barrier of changes and reducing negative influence manager of Rolls Royce is need to
make strong strategies that can help to improve the organisational productivity (Lloyd, Boer and
Voelpel, 2017).
In business environment there are some barriers that are facing by chosen organisation while
brining changes that may affects decision such as:
Lack of staff involvement – This is main barrier which can be arise while working such
as workers do not get ready easily in order to accept the changes. As the manager of Rolls Royce
is introducing new mode of car and process then they noticed that lack of staff involvement. The
reason behind this fear from new technology, lack of skills as they are habitual of old practices.
This influence decision making and reduced the productivity (Jones and Harris, 2014).
Lack of Investment or finance – This is another barrier which is facing by organisation
due to lack of investment. Rolls Royce is facing such challenge as there is lack of investment or
finance due to which organisation cannot produce products easily. It is a barrier for Rolls Royce
to arrange the funds for investing in new technology that can help to bring changes.
Task 4
P5 Apply different leadership approaches to dealing with range of changes
System leadership approach: This approach is related with conditions and systems that
helps individual and team members to work effectively by using advanced skills and their
potential qualities. This approach helps Rolls Royse manager to predict behaviour of their team
at the times of assigning task. It helps to work in a systematic way towards achieving business
goals. This helps to maintain the situation and changes which arises in organisation.
Lewin's Change model: This theory is based on three steps while conducting changes
like unfreeze, change and refreeze. It is used by Rolls Royce manager to develop strategies and
make changes accordingly. Detailed study of three steps is as given:
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Unfreeze: In this phase managers of Rolls Royce identify changes and get approval from
management for making changes. For instance, selected company identify need of changing
marketing technique that are currently using. Such organization is only using print media and
new papers for promoting the products. Now manager has decided to use a digital, Social and
chatbots technique that helps to meet with changes effectively (Jones and Harris, 2014).
Change: This step is used by organization to communicate change plan with marketing
manager and employees who are trying to solve change issues. Rolls Royce, implement new
changes like social media, chatbots and digital marketing that helps to increase productivity of
organization. It helps respective company to develop plan as well as strategy properly (Van der
Voet, Kuipers and Groeneveld, 2015).
Refreeze: In this phase, organization build different ways in which manager makes
changes effectively and sustain for long term in business environment. Manager of respective
company design, develop and training to employees for accepting changes and get best results. It
is beneficial for Rolls Royce to promote its products by using new technique and maximize
profitability (Fragoulin and Ibidapo, 2015).
ADKAR change model – This is a model in relation to a that can be uses by organisation
for adopting the changes and increases the business performance. The management of Rolls
Royce are using ADKAR model that for the purpose of brining changes and innovation in their
cars that can attracts customers and increases the performance. This involves:
Awareness – This step is uses to aware from changes kin organisation that are brining by
Rolls Royce for manufacturing the new model of cars and attracting the customers.
Desire – After brining changes the management of chosen organisation support the
changes which are important and helps to increase the performance.
Knowledge - This step of changing model helps management and employees regarding
increasing knowledge in relation to change. This can help to operate the business and increase
the profitability.
Ability – The ADKAR model is showing the ability of demonstrating the skills and
behaviour of employer and employees so they can accept the changes and bring innovation while
running activities.
Reinforcement – This activity related to implementation of changes stick and perform all
functions effectively. With the help of this management of Rolls Royce organisation brining and
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implementing changes effectively so all working can be done effectively and maintain the good
performance.
CONCLUSION
From the above report it can be conclude that changes plays an essential role in all
organization operations. It is important for all organization to focus on changes and implement
them within organization for the purpose of increasing sales and capturing more market share by
providing attractive model of cars. There are different drivers that affect leadership, team and
individual in order to perform operating activities effectively. There are internal and external
drivers that helps to overcome the negative impact of changes on business and helps to maximize
profitability.
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REFERENCES
Books and Journals
Anderson, D. L., 2016. Organization development: The process of leading organizational
change. Sage Publications.
Alavi, S. B. and Gill, C., 2017. Leading change authentically: How authentic leaders influence
follower responses to complex change. Journal of Leadership & Organizational Studies.
24(2). pp.157-171.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Komives, S. R., 2016. Leadership for a better world: Understanding the social change model of
leadership development. John Wiley & Sons.
Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Gupta, P., 2011. Leading innovation change-The Kotter way. International Journal of Innovation
Science. 3(3). pp.141-150.
Lawrence, P., 2015. Leading change–Insights into how leaders actually approach the challenge
of complexity. Journal of Change Management. 15(3). pp.231-252.
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
Routledge.
Painter, S. and Clark, C. M., 2015. Leading change: Faculty development through structured
collaboration. International Journal of Doctoral Studies. 10. pp.187-198.
Lloyd, K. J., Boer, D. and Voelpel, S. C., 2017. From listening to leading: Toward an
understanding of supervisor listening within the framework of leader-member exchange
theory. International Journal of Business Communication, 54(4), pp.431-451.
Jones, M. and Harris, A., 2014. Principals leading successful organisational change: Building
social capital through disciplined professional collaboration. Journal of Organizational
Change Management. 27(3). pp.473-485.
Van der Voet, J., Kuipers, B. and Groeneveld, S., 2015. Held back and pushed forward: leading
change in a complex public sector environment. Journal of Organizational Change
Management. 28(2). pp.290-300.
Fragouli, E. and Ibidapo, B., 2015. Leading in crisis: Leading organizational change & business
development. International Journal of Information, Business and Management. 7(3).
p.71.
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