Understanding and Leading Changes

This report discusses the impact of change management on organizational strategy and operations. It compares examples of different organizations that have been impacted by changes in their strategies and operations. It also evaluates the drivers of change and their influence on leadership, individual, and team behavior. Additionally, it discusses measures to minimize the negative impacts of change in organizational behavior. The report concludes with recommendations for applying change impact analysis.

Understanding and
leading changes

Table of Contents
INTRODUCTON........................................................................................................................................3
P1) Compare example of different organizations that has been impacted with change in organizational
strategy and operations............................................................................................................................3
M1) Evaluate different drivers of change along with type of organizational changes which they affected
.................................................................................................................................................................5
TASK 2.......................................................................................................................................................5
P2) Discuss how internal, external drivers of change influence leadership, individual and team behavior
within organization..................................................................................................................................5
P3) Discuss measures that can be undertake to minimize negative impacts of change in organizational
behavior...................................................................................................................................................7
M2) Evaluate implication of internal and external drivers of changes within organization.....................8
D1) Give conclusion and recommendations with appropriate justification for applying change impact
analysis....................................................................................................................................................9
P4) Discuss barriers of changes along with their impact over leadership decision making process in
organizational context..............................................................................................................................9
M3) Discuss force field analysis to monitor driving as well as resisting forces to show their impact over
decision making of organization............................................................................................................11
D2) Give valid decision as well as outcomes on the basis of force field analysis in reference of
attainment of organizational objectives.................................................................................................12
TASK 4.....................................................................................................................................................12
P5) leadership approaches to deal with change within organization......................................................12
M4) Discuss the extent to which approaches of leadership can bring organizational changes with
appropriate models................................................................................................................................13
D3) Evaluate effectiveness of leadership approaches and models of change management....................13
CONCLUSION.........................................................................................................................................14
REFRENCES............................................................................................................................................15

INTRODUCTON
In current business environment, changes have become crucial part of business as it helps
to bring innovative as well as creative products among customers. Effective management of
changes are helpful to provide sustainable competitive advantage to company. HSBC has been
selected as company in current report that is a leading financial services company of UK. It
provides a range of financial and investment services such as wealth management, retail banking,
global private banking and more. (Bamberg and Schulte, 2018). In current report, comparison
regarding impact of change management over operations and strategies of different companies
has been discussed. Further, it comprises barriers that managers face while bringing changes at
work place. In addition, internal as well as external drivers of changes in terms of their influence
over leadership, team and individual decision making have been also discussed in the following
report. Lastly, it includes different approaches of leadership in context of change management.
P1) Compare example of different organizations that has been impacted with change in
organizational strategy and operations
In current business world, it is important for companies to undertake several changes on
regular basis in order to sustain at market place for longer duration. Here, change plays a crucial
role in overall growth and success of company in terms of bringing innovation and advancement
at work place. With this, it is easy to perform different task in an efficient manner that is crucial
for business growth. Changes are likely to put a lot of impacts over strategies as well as daily
operations of company which is mentioned as under:
HSBC Citi Bank
Overview It is a well known banking
institution and financial
service providers based on
UK. It is currently working in
nearly 65 countries across the
globe and provides range of
financial services such as
retail banking, wholesale
It is also a renowned
investment banking company
based on America. It offers a
range of financial services
such as credit cards, banking,
wealth management and more.

banking, investment advice
and more.
Strategy Main strategy of HSBC is to
become such financial
services provider which is
preferred by its client. Due to
recent innovation, the bank
has to make changes in its
current strategies due to
change in external and internal
environment of business.
These strategic changes will
help in terms of bringing more
growth within organization
(Compton and Banks, 2018)..
In recent time, organization
has made several changes in
its existing strategies. They
have been adopted online as
well as message services for
ease of customers. In addition
to this, changes in laws,
compliances of different
country also affect the
operation of bank. So, they
need to modify their strategies
accordingly for ensuring long
terms success.
Operations As per the current
environment, there are a lot of
tools and techniques are being
used within organization in
order to bring ease in daily
operations. Now, there are a
lot of financial tool s as well
as softwares are being used by
HSBC in order to minimize
errors and provide better
services to customers.
In this, Citibank has also
introduced change in their
daily operations by
introducing new and updated
version of software which will
help in carrying out daily
activities in an efficient
manner.
With above discussion, it is analyzes that above stated two organizations such as HSBC
and CitiBank are highly influenced with changes in their current operations as well as strategies.
These changes will help to increase in overall sales & profit margin of organizations.

M1) Evaluate different drivers of change along with type of organizational changes which they
affected
There are ample of drivers of changes such as culture, organizational values and policies
that affect performance of company. In addition, there are some external factors of changes such
as economy, customer satisfaction, technology and more which drive higher sales as well as
profitability for organization (Eesley, 2016). Here, changes in current political, economical and
social environment also affect productivity and profitability of organizations. So, managers need
to prepare appropriate strategies in order to bring higher efficiency at work place.
TASK 2
P2) Discuss how internal, external drivers of change influence leadership, individual and team
behavior within organization
Internal drivers
There are ample of internal factors that are related to internal environment of company.
These factors influence productivity, profitability of organization in an efficient manner. So,
these changes affect behavior of individuals, team at work place. Therefore, managers & leaders
need to prepare necessary strategies in order to attain predefined business objectives in stipulated
period of time. For this purpose, internal drivers of changes are given as under:
Organizational culture: It is analyzed that each and every organization has different
culture which comprises behavior, attitudes of employees who are working within company.
There are different employees having different opinion, thoughts work together in organization.
So, it is vital to maintain a positive culture at work place so that employees can grow and prosper
(Endrejat, Baumgarten and Kauffeld, 2017).
Impact over individual and team behavior: Positive culture motivated staff members to
contribute in growth of organization. On another side, an adverse culture negatively influences
behavior of teams and individuals within entity. If, the culture within organization is positive
then it encourages all the employees to work as team for growth and success of company. In
regards of HSBC, manager emphasis to maintain positive work culture so that all the individual’s
get equal opportunities.

Impact over leadership: Here, leaders guide teams and individuals in such a way which
help to maintain positive work culture.
Finance management: It is also a crucial driver of internal change as funds are required
to undertake each and every business activities. There are ample of sources available through
which funds can be acquired. Here, funds are essential to perform each function of business.
Impact over individual and team performance: It is stated that funds are required for each
and every activity of business. So, decisions of managers and leaders are highly affected with
availability of funds. In context of HSBC, managers considered requirement of funds while
taking important decisions. Here, individuals and team take such decisions which are profitable
for company.
Impact over leadership: It is analyzed that leaders guide employees in such a way that
they are able to make maximum utilization of available financial resources.
Employee morale: Employees are crucial part of organization who contributes in its
overall growth and success. Here, it is important to maintain higher motivation among work
force so that they give significant contribution in organizational success.
Impact over individual and team performance: There are ample of ways such as monetary and
non monetary are used by companies in order to inspire employees to work in desired manner. It
affects behavior of individuals as well as teams within company. In reference of HSBC,
managers prepare appropriate strategies to enhance overall productivity and efficiency of work
force.
Impact over leadership: Main aim of leaders is to drive maximum outputs from employees by
enhancing their morale in an efficient manner. Employees with higher morale are more likely to
work effectively for success of organization.
SWOT analysis of HSBC:
Strengths Weakness
 It is getting an additional advantage in
terms of new and innovative techniques
It is analyzed that HSBC is lacking in terms of
retail banking in comparison of other

that are being used by company to
provide better and enhances services to
customers.
 It is analyzed that HSBC has strong
brand value and presence which
provides highly competitive edge to
organization.
competitive banking institutions.
The operating cost of HSBC is also increasing
rapidly which is not a good symbol in terms of
its operational efficiency.
Opportunities Threats
 There are opportunities of global
expansion of business in emerging
markets such as Asia and other
developing nations.
There are various other banks such as
CitiBank, Deutsche Bank and more are
providing extensive competition to
entity.
External drivers:
There are a lot of external factors such as technology, political, economy and more that
cause changes in company. Here, managers need to analyze changes emerging in external
environment and need to prepare strategies accordingly. Different external factors for this
purpose are given as under:
Political: It is monitored that political environment of different countries affect business
prevailing within country. In this, government prepare policies, plans in order to regulate
business in an efficient manner. It also includes taxation policies, trade policies that are prepared
by higher authorities of nation (Huang, 2016).
Impact over individuals and team: It is analyzed that HSBC is working in different
countries so it is highly affected with political environment of respective countries. Changes in
current laws directly affect decisions of managers and leaders. In addition, it also affects
performance of individuals in terms of changing organizational structure of company.
Impact over leadership: Change in political environment also raise the requirement to make
changes in leadership approaches which affect current practices of leaders in significant manner.

Economical: In this, factors such as interest rate, demand, supply, cost and more are
included that influence leadership, individuals as well as teams within company. Here, changes
are being introduced in these factors on timely basis.
Impact over team and individuals: It is analyzed that due to change in economical
conditions individual and team also need to adjust their working approaches accordingly. In
context of HSBC, it is highly affected with economical changes in different countries across the
globe. It also brings changes in current structure of company that will further influence behavior
of teams as well as individuals.
Impact over leadership: Economical changes also put a great impact on leaders and their
decision making approach as they need to take the decisions for maximizing well being of
company.
P3) Discuss measures that can be undertake to minimize negative impacts of change in
organizational behavior
In current business environment, there are a lot of changes are introduced within
organization. These changes put some positive as well as negative impacts over business so it is
essential for managers to evaluate the impact of these changes in order to take appropriate
decisions.
System Theory: According to this theory, there is requirement to maintain proper
communication between superiors and subordinates with an aim to strengthen their relationship.
It is a theory which comprises different skills, abilities which can be further use to enable
systematic changes within company. Under this theory, leaders try to create such an environment
where all the individuals can work with their maximum potential for getting positive outcomes in
future period of time. In context of HSBC, leader also adopt this theory by maintaining proper
and timely communication with work force which will eventually lead towards negative impact
of changes at work place.
Leadership: Leadership refers to provide appropriate guidance, support to wirk force so
that they get ready to work in a desired manner.(Schiff, 2019). For this, leaders need to motivate
work force so that they get ready to work in a change environment. Here, leaders have a detailed
conversation with employees in order so that they get aware with prevailing conditions at market

place. They also need to convenience people so that they work with changes rather resist it. Here,
it is essential for managers of HSBC to provide strong guidance as well as support to work force.
They need to lead employees on regular basis in order to bring team sprit among individuals.
They also required to analyze impact of changes and need to work on negative points in order to
make further improvements.
Motivation: Motivation is a process by which it is possible to bring best out of
employees. It is analyzed that staff members tend to resist changes due to their comfort zone
with current working practices. Here, managers are required to provide appropriate motivation to
staff members by different ways. By this way, they can easily minimize or avoid negative impact
of changes at work place. It is their responsibility of leaders be proactive and prepare appropriate
strategies in order to deal with changes in an efficient manner. In context of HSBC, managers
prepare necessary appropriate motivation strategies to overcome with constraints which might
occur during change management process.
Employee engagement: Employees are crucial part of business and also significantly
affect with changes within company. So, it is imperative to engage employees in change
management process in order to get their support and assistance throughout the change
management process. Therefore, leaders are required to communicate vision to employees so that
they give significant contribution towards organizational growth and success. It is monitored that
managers as well as leaders of HSBC, need to maintain proper communication with employees
on regular basis to maintain positive environment work place.
With above stated points, it is monitored that by getting support of employees, motivating
them, and engaging them with change process negative impact of changes can be lower down at
minimum level. It will help to get positive impacts of changes by applying changes in correct
way.
M2) Evaluate implication of internal and external drivers of changes within organization
Internal as well external factors of changes put a significant impact on overall
performance of organization. There are internal drivers such as culture, values and more need to
imply in an efficient manner in order to maintain a positive environment at work place so that
predefined objectives can be achieved (Whitney and Rolfes, 2018). On another side, external

drivers such as political, technological factors also need to analyze in an efficient manner in
terms of bringing positive changes within company.
D1) Give conclusion and recommendations with appropriate justification for applying change
impact analysis
Here, it is the basic human behavior that they tend to resist changes as they have fear of
being replaced, insecurity and more. So, it is vital to prepare appropriate strategies in order to get
support of employees. For this, managers are required to provide necessary motivation to work
force through appropriate ways. In addition, they need to provide support, assistance s well as
proper guidance to staff members so that they can coordinate with changes at work place. it is
really essential to get positive outcomes from changes that are being introduced within company.
TASK 3
P4) Discuss barriers of changes along with their impact over leadership decision making process
in organizational context
It is not easy to bring changes and simultaneously get support of employees. There are a
lot of barriers are faced by companies in while introducing changes. For this purpose, force filed
analysis is undertaken that is discussed as under:
Evaluate current situation: In this, managers first need to analyze current situation in
terms of strengths, weaknesses of company. At this stage, managers come to know with several
challenges and issues that are being faced by organization. In context of HSBC, managers
analyze current situation of company with the help of appropriate tools.
Define the objectives: It is the next step in which managers need to identify goals and
objectives of changes. It is really essential for HSBC to prepare objective to bring necessary
changes within company.
Identifying driving forces: It comprises different forces that are in favor of changes and crucial
to attain predefined objectives of organization in stipulate period of time. Here, driving forces for
HSBC are increase in number of customers, enhancement in sales and profit margin, improving
market position and more (Zhong, Luo and Chen, 2020).

(Source: Force field analysis, 2020)
Identifying restraining forces: It includes the elements which create constraint in goal
attainment of change management. In context of HSBC, restraining factors are resistance of
employees, change in organizational structure, adverse attitude of employees and more.
Evaluate the forces: It is also a crucial stage in which managers evaluate forces that are
both restraining as well as driving. They evaluate forces by providing them certain scores. It can
also evaluate on the basis of their impact over organization.
Create an action plan: It is the last step in which an action plan is prepared in order to
attain defines objectives within stipulated period of time.
Barriers of change:
Lack of employee involvement: It is a barrier which is related to attitude, behavior of
employees. While bringing changes within current working process, it is obvious to face
resistance from employees. It also affect decision making approach of leaders as they need to
make such strategies by which employee engagement can be maximize in significant manner.

Generally, at initial stage employees do not engage in changes as they have fear of reduction,
change in current roles and responsibilities and more. So, it is crucial for managers of HSBC to
provide necessary guidance, support to work force so that they can overcome with fear and be a
part of change management within company.
Lack of communication: In business, communication is really important for minimizing
internal conflicts, ambiguity and maintain positive environment at work place. Here, lack of
communication can create constrain in bringing changes in an efficient manner. It might hamper
existing relationship of leaders and employees. So, leaders need to maintain proper flow pof
communication at work place in terms of taking better decisions. Sometimes, there is no proper
communication between managers and employees that is vital to bring changes. It can enhance
ambiguity, confusion among work force which will eventually produce negative results. So,
leaders of HSBC need to take such decisions that will lead effective communication between
superiors and subordinates.
Insufficient leadership: It is monitored that leadership is crucial to provide necessary
support as well as guidance to employees. Without leadership, it is not possible for work force to
adapt changes and coordinate with these changes. They need to get required guidance, support in
order to work in a change environment. In context of HSBC, manager needs to provide timely
guidance as well as support to employees in order to apply positive changes at work place.
With above sated point, it is analyzed that there are ample of barriers such as lack of
leadership, communication and more are faced by managers while bringing changes in company.
These barriers have significant impact over decision making of leadership as they need to take
decision in terms of maximizing growth and benefit of company.
M3) Discuss force field analysis to monitor driving as well as resisting forces to show their
impact over decision making of organization
In force field analysis, there are some driving and resisting forces are identified in terms
of implementation of changes within company.
Driving forces:

 Increase in demands of customers regarding enhancing range of products at the
ecommerce platform of HSBC.
 Bring technological advancement within company in order to maintain higher operational
efficiency as well as productivity.
Resisting forces:
 Lack of support of employees as they are not ready to work with new and advance
technology.
 Increment in overall cost in order to arrange necessary training program for work
force.
D2) Give valid decision as well as outcomes on the basis of force field analysis in reference of
attainment of organizational objectives
It is analyzed that on the basis of force field analysis managers need to take benefit of
positive attitude of customers in terms of enhancement in current product mix. It will help to
increase in current sales and profit margin. In addition, employees have negative attitude towards
changes that are being introduced in HSBC. So, managers are required to prepare effective
strategy in order to get support and assistance of employees. Further, they also need to provide
training to work force with the help of appropriate techniques and need to manage cost at the
same time. Therefore, with these techniques organization will able to overcome from negative
outcomes of change management.
TASK 4
P5) leadership approaches to deal with change within organization
Transformational leadership: It is a modern approach of leadership where managers
guide as well lead employees on each and every aspect. It helps to formulate better relationship
between employer and employees. Here, leader provides vision to work force in terms of
inspiring the m towards organizational goals and objectives. It is an emerging leadership style
which is often used by ample of leaders. For instance, Jeff Bezos who is the founder of Amazon
adopt transformational leadership by inspiring work force to work in a predefined way.

Participative leadership: As per this, leader consider employees as per one of the crucial
stakeholder of company who give significant contribution in its overall growth and success. It is
based on empowering work force by providing them right to put their opinion and significantly
take part in decision making process. This is also essential in order to make proper utilization of
skills as well as capabilities of staff for betterment of organization. In present time, leaders give
equal importance to the thoughts, opinions of employees in overall decision making process. For
instance, Indra Nooyi who is founder of Pepsico is an example of participative leader as she
allows work force to come ahead with valuable suggestions for improvement in overall business
process. Likewise, Google is also known for partciapative leadership for maintaining a positive
relationship between employer and employees.
Situational leadership: It was developed by Ken Blanchard and Paul Hersey. This
approach has been evolved so that leaders behave as per situation occurred at work place. Their
behavior need to based on situation which will eventually help to come out with better results
and outcomes. With this approach, leaders are able to deal with situation in better manner. It is
analyzed that Steve jobs who is founder of Apple is known for situational leadership style as his
decisions are highly affected by the situation occur at work place.
M4) Discuss the extent to which approaches of leadership can bring organizational changes with
appropriate models
In order to bring appropriate changes there are some leadership approaches such as
transformational, situational and more are used in an effective manner. For this Lewin’ s model
has been applied in following manner:
Unfreeze: It is the first step where leaders of HSBC analyze need of changes for the
betterment of company. Here, they communicate these changes to employees in order to develop
positive attitude among work force.
Change: At this step, leaders implement changes at work place and communicate these
changes to work force in terms of change their behavior and attitude towards changes.
Refreeze: In this, leaders make sure that they sustain with changes for longer duration
and ensure that employees stick with new approaches of work and do not revert back on old
ways of performing task.

D3) Evaluate effectiveness of leadership approaches and models of change management
There are ample of approaches such as transformational, participative and more are used
by leaders in current business environment in order to bring higher efficiency as well as
productivity among work force. Ls In addition, models of change management such as Lewin’s
model helps to bring as well as sustain with changes at market place for longer duration.

CONCLUSION
From above discussion, it is summarized that it is really important to understand as well
as lead changes within company. Discussion has been carried out regarding models of change
management which are helpful to introduce changes within company in an efficient manner. in
addition, several barriers are faced by managers while introducing changes so they need to
prepare appropriate strategy in order to get positive results out of change management.

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