INTRODUCTION Change management is a wider process which manages changes in the organisational objectives, mission andplan of actionsin order to achieve theaimsand targets. Changes are necessary for any kind of organisation as itassistanassociationto get competitivebenefitsand higher success. In this file the chosen organisation is Mark & Spencer which is a British multinational retailer. M&S is dealing in the high quality clothing brand and its headquarters are situated in London and Westminster. This file will cover about that how the changes areeffect on the organisation strategies andactivities. In addition, examine that how the changes in inside and outside factors affecton the leadership and how can minimise thepessimistic impactof these factors on the business. Also,severalbarriers which have to face during the leadership decisions and how can reduce it with implement an appropriate leadership approach. TASK 1 P1 Compare organisations that how the changes on their strategies and operations Organisational strategy is a long term plan which consist a set of actions which is implemented by a company in order to achieve its vision. It is essential for the organisationto make a proper strategy before executing their activities as it will helps them to get competitive advantage, higher success and growth in the marketplace(Hintz and Bahia, 2013).Proper management of strategies and operation will also helps the M&S to implement the changes successfully. For capturing a big market share it is essential for them to implement new changes in their production process according to the market segments and trends. To better understand that how the changes can impact on the organisational strategies and activities, here are given strategiesandoperationsofdifferentorganisations.Forunderstandingthisthetaken organisations are M&S and Burberry, the strategies and operations of them are defined below: M&SBurberry Government al change In the UK Brexit have greatly affect on the retailsector as because of this the various rules, policies have been changedandimplementedonthe retails sectors. Due to which M&S havetofacethelowersalesand Burberry is also greatly affected by the Brexit due to which their profitability andsustainabilityisgoingina downfallpositiondaybyday.For sustaining their position according to thepoliticalchangestheyare
decreasedprofitability(Gnan,Hinna and Scarozza, 2013).Also, these have great impact on the operations and strategiesoftheM&Swhichare defined below: Strategies:Before Brexit, company was followed the skimming pricing strategy in which they are selling their productsathigherpricebutnow company is following the economy pricingstrategyforattractingthe more customers in their products and servicesandcanupholdinthe marketplacefor a long duration. Operations:For effectively operate their activities M&Sis following the just in time method in which they are focussingonthemanagementof inventory. They concernaboutthat quantityofinventoryshouldbe sufficientaccordingtotheir requirement. So they will be able to reducetheoverheadinventory expenses. focussingontheirstrategiesand operations which are defined below: Strategies:Before any kind of political changetheywereusingthehigher pricing strategy as they are dealing in theluxuryproductswhichcontains higher cost but because of Brexit they have to shift on the skimming pricing strategy is which at the initial level company will charge higher amount for their products but lesser than previous but with the expanding their business they will sell their products at lower price. Operation:Burberry is also trying to sustain their position in the changing environmentbyimplementingnew innovations and technologies in their operationssotheywillbeableto reducetheirproductioncostand increase their productivity. It will helps them to deliver high quality products at lowerpricewhichresultshigher customers base and higher profitability in the business. Environment change As the organisation is operating their activities in the environment so they must focus on this that they should not produce those products which can harm the environment. These changes occurbecauseofthetechnology Changingintheenvironmentalso impactontheperformanceand operationsoftheBurberry.As Burberry is a luxury brand so it is essential for them to keep their eye on the environmental changes so that they
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changes,climatechangesetc.For preventingthemselvesfrom decreasingthegrowthandbrand value M&S consider all the changes because of this are described below: Strategies:Whileoperatingtheir activitiescompanyalwaysconcern about their environment. For maintain their business growth in the market theyareinspirethepeopleto abandonment the use of plastic bags and also they are promoting the cash less payment so that the deforestation can be reduced. Operations:Forpreventingthe environment from the negative impact M&S is using Six sigma which will helpthemtoimprovetheir organisational activities according to theenvironmentandreducetheir extra cost form their operations. Also, theywillbeabletochangetheir processes and find the inappropriate process which can badly impact the environment so they will be able to improve in this and get the success and growth in the market. canapplythesemodifications immediately in their organisationand abletomaintaintheirbusiness position(Goldstein,Sauerand O'Donnell, 2014).Here are described about the strategies and operation of Burberry: Strategies:For maintaining their brand value in the changing environmentthey are focussing on track their inventory level so they can save their extra cost and save their from the wastage. They arealsomotivatingtheonline proceedingsratherthanthecash payments so they can decrease the use of paper . Operations:They areconductingtheir actionsaccording to the environment changesliketheyareattendingand contributing in various social welfare programs and other they are indulging inprovidingeffectiveeducational programs for enhancing the skills of their employeesso they will do their effortsbyconsideringtheeffectof environmentontheirbusiness activities.
M1 Drivers for change in each example and types of organisational change they affected. Each of the drivers have their specific role towards the performance of the organisation. As internal drivers effect the function of the organisation by their different rules, regulation, labour laws, employment act etc. and external drivers are the one which consists of the factors that influences the business in the direct manner such as inflation rates, tax rates. These drivers have also affected the organisational changes such as: Remedial changes: Remedial changes is the one which is caused due to the shortage or deficiency in the performance of the employees as well as the organisation. To reduce this problem the company like Mark and Spenser is arranging various programmes to train their employees to overcome the deficiency level within a short period of time(Bolton and et. al., 2013). Transformational changes: These changes are the essential one as this is adopted by the business by researching the current market trend. If the market is undergoing a frequent range of modification then these changes occurs . Themanagement of M&Swill take this into the much consideration so that whenever required they can adopt the new strategies by investing the suitable amount of funds. D1 Conclusions and recommendations with valid justifications As per the abovementioned study in can be concluded that the business of Mark and Spenser is also affected with both the drivers in positive as well as negatives . This also helps the business by monitoring and reducing the cost of the operation. These factors also provides the business with competitive advantage over their rival firms. In relation to this there are some recommendation and conclusion have been mentioned beneath : ï‚·The manager ofM&Smustconcentrationon the estimating in advance about all the uncertainties which can affect their business operation(van der Voet, Kuipers and Groeneveld, 2015).So that corrective measures regarding this can be taken in advance. ï‚·They must involve their employees in thejudgement making processregarding the establishment of change in their organisation so that the employee of the business feels as a valuable assets to them and works with the greater amount of efficiency. 1
TASK 2 P2. The internal and external factors that affect leadership, team and individual behaviour Theinner and outerfactors have hugeeffecton the overall activities of the organisation. As in the present corporate world businessisflourishingday by day due to which they have to face various problems from the internal and external factors. For reducing the impact of these factors M&S needs to evaluate and examine these factors so they will be able to formulate the strategies and adopt some new plans according to this(Tombetti and Mason, 2018). Also, M&S needs to analyse the market segments and customers preferences so they will be able to know that the changes in the organisation should be implemented or not.Hereare two type of modificationdriversthatare defined below: Internal drivers:In this category those components are included which areincurredin theenterpriseand these factors are those on which company can easily control. There are defined about the some of the internal drivers which are defined below: Resources:This can be defined from the all resources which are using by M&S to operate their activities effectively. These resources include capital, machinery, manpower, raw material and many others. So the management of M&S needs to focus on these resources that they are appropriate in the organisation or not or they required some changes. Financial management:It is the most important factors of the internal factors as it related to the fund. For taking appropriate decisions it is essential for M&S to regulate effective financial management so they able to distribute the funds appropriately in the purchase of raw materials, implement new assets, and implement new strategies and plans(Martin, 2012). For evaluating that how theseelementscaneffecton the overall performance of the organisation M&S can use SWOT analysis which will help them to analyse about the Strengths and weaknesses of them and also assist them that how they can take advantage of their opportunities and reduce the threats which they have to face in their business. Here are defined about the SWOT analysis of M&S: StrengthWeaknesses The major strength of the M&S that it is the high recognised brand and dealing in the variety of products. Weakness of the M&S that many people considered is a non trendy store. Change drivers:For preventing themselves 2
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Change drivers –M&S should focus on the the market and customer segment and product according to them. They can do this with their skilled and talented employees(Wilkinson and et. al., 2013). form this weakness M&S needs to focus on the adopting new techniques and customers preferences so that they will be able to produce according to the customers demand. OpportunityThreats As M&S is dealing in the ethnic and traditional clothing that it is huge opportunity for them to cover Asia market as there are huge demand of ethnic clothes. Change drivers:-M&S can get more success if they are producing western wear with traditional clothes that will helps them to cover a huge market place. M&S has the threat of competition due to which they might lose their profit and brand value in the market. Change drivers:It is essential for them to adopt new strategies and plans and focussing on producing products according to the customers needs. External Drivers:These are those factors which are related to those situations, things, incidents, and events which are happening outside the organisation. These factors have great impact on the businessschemes and transactionsand these are not under control of the business. These includesinnovations, economy changesetc. For analysing these factors M&S can use PEST analysis which will help them understand the impact of these factors on the business: Political factors –These are those factors which are made, run, and organised by the government. In this various laws and regulation are included such as trade policy, labour law, political stability etc. For operating their business activities effectivelyM&S should consider these rules in their operations. For instance, if the government in UK adopt free trade policy then M&S will able to decrease its sourcing costs(de Sousa Jabbour, 2015). Economicalfactors–Thesearethosefactorswhichhavedirectimpactonthe performance of the company which includes interest rate, inflation rate, foreign exchanges rate etc. These all havebigimpact on thestrategies and activitiesof M&S as they have to face various difficulties while adopting new techniques and operations. For example, if the inflation 3
rate will rise then it will directeffecton the prices of theMark and Spencerproducts and services and purchasing power of the customers. Socialfactors–Thisfactorsisconcernedaboutthechangesinpeople preferences,demand and needs which influences the business and marketing strategies. For becoming successful in the market M&S should focus on the customers preferences and wants otherwiseit will effect on the profit and sustainabilityof the business. Moreover, changes in these factors have also impact on the working of the leaders as they have to more focussing on the motivational activities and new marketing strategies(Zeiler and Fergus, 2014). Technological factors-These factors are related to the changes in technologies and innovations. The changes in technology also effect on the behaviour of the organisation as they have to change their working processes.With the changes of technology leader have to do more efforts as they have to give more training and organise development programs so theycan compete their competitors in anappropriatemanner. M2 Appropriate theories and models to evaluate organisational response to change. The business ofM&Smustconcentrationon the establishment of the different theories and models in their business as these theories will enable their business in determining the areas where the business needs to work. For this Mark and Spenser have focused on the concept of PDCA cycle which support their business in preparation of the strategies and policies which would help them to responds to the frequent occurring changes so that the firm canachievea competitive advantage over the rivals. Some of the drawbacks can be that if the business does not focuses on the establishment of the theories in their organisation they may suffer from the lack of efficiency and deficiency in the profits. P3 Analyse measures to minimize negative impacts of change on organisational behaviour Changes are necessaryfor adopting the the businessas it brings the sufficiency and growth opportunities in the business. In the procedure of adopting changes an organisation have to face various negative points like the major issues occurs while changes are implemented in the organisation is losing employees(Choon and Embi, 2012).Mark and Spencerneeds to do exertionfor retaining their employees, for this they can do various activities which are as follow: Increase theinvolvement of workersin alteration process:It is essentialtoM&S for getting the support of its subordinates in implementing the changes successfully. M&S should try to introduce employees with the benefits of the new changes and techniques 4
and include them in the decision-making process so they will berealisethat they are essentialpart of theadministrationand give best efforts in achieving the goals(Wilkinson and Kemmis, 2015). ï‚·Expansion of communication channels:This is the another crucial part for organisation to establish various communication within the organisation so that the employees will be able to easily communicate with their seniors regarding to the new techniques and new changes. Along with this, if M&S wants to reduce thepessimisticeffectof the modification on the workers then theyshouldfollowPDCA model which will help them to operateflawless activities and alsoassurethat the employees are motivated through theapplyingchanges. The description of this model are defined below: Plan:It is the foremost part of this model in which M&S will make a plan of their strategies and changes that which changes they should implemented and which strategy they should adopt. While making a plan of implement a change they needs to do proper market research so they able to know about the cost, resources, funds andmany more.This research will help the company to produce various productsafter considering the marketplace segments which will helps them to get competitive advantage and success in the market. Do:In this step, M&S will implement the strategies for accomplishing its goals and objectives. In this activity they needs to higher support of their employees and huge amount of capital so they will be able to operate their activities without any conflicts. Check:This stage comes after the implementing the strategies asat this levelthey can check the effectiveness of their schemes and ideas.They will check about that their strategies are profitable or not for the organisation. For this they can compare their estimated data and actual results as it will helps them to find the reasons that why the differences are arising and how they can improve it in order toachieveits organisationaltargets(Lozano, Martinez-Cerdeno and J Hagerman, 2015). Act:It is the finalstage in which the Mark & Spencerwill works on their drawbacks and then will focus on the measuring of the success and failure. So that they can identify whether the strategy should be followed further in the business or not. 5
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Hence, it is a simple model which will helps the M&S to avoid continual mistakes and also improve processes. Moreover, with the involvement of employees in each and every step they can get more success and growth in the marketplace. TASK 3 P4Determine various barriers and their impact on the leadership decision-making Adopting changes is must for every organisation to sustain in the market and beat their competitors(Saha and et. al., 2013).For becoming more effective and increasing revenue an organisation have totakesomemodificationsin theiractivities. But implementing the change is not an easy task, various barriers try to prevent the company to adopt changes and moving forward. There are defined about some of the barriers which prevent M&S to implement changes. ï‚·Ineffective leadership:This is the biggest cause which prevents the organisation to implement changes. For properly executing necessary changes the management of M&S needs to respond positively to their employees related to that what they should do, when and how they should do. As employees are the most important supporter in the change management procedure so the M&S should motivate their employee and inspire them in order to meet the organisational goals and aims. Ineffective leadership will also hinder their decision making process as the leaders himself wont be able to decide what is beneficial and what not then how they will motivate their employees to works within the changing environment. ï‚·Broken Communication:It is an important part when an organisation introducing a change management process in their organisational activities. While executing changes M&S must focus on the communication channels that they are able to communicate with each and every level of employees. Proper communication helps the employees to share their conflicts, ideas, opinions with their management so that the management will be able listen about their problem and take effective decisions(Nagarajaiah and Begum, 2014). At the present world the customers demands are increasing day by day due to which company have to focus on the launching new products and services in the marketplace. For covering a big marketplaceand sustaining in the market M&S have decided to launch a new 6
products in themarketplace. They are launching the products after considering all the current market trends and customers segments. But to achieve the success in these changes, they should follow Force Field Model which will helps them to know about that forces which are in favour or against the changes. Moreover, by using this model they can identified those factors which can impact the position and progress of theassociation. These forces are defined beneath: Forces against changes:- ï‚·Enhancing value:-While introducing new products and services in the market it is essential for M&S to produce high quality products and have to give training to the employees due to which the product price and cost might be increase(Lloyd, Boer and Voelpel, 2017). ï‚·More labour turnover and absenteeism:-As introducing new products and services in the market, M&S needs to more labour efforts and time due to which it might be possible that employees are continuously losing their interest. It will increase the labour turnover rate which results decreasing brand value and sustainability. Forces in favour of changes:- ï‚·Consumers wants changing products:-As M&S is dealing in the high quality products so customers of M&S always want new products from them so that they will satisfied their needs and wants. ï‚·Vast products aggregation:-Byunveilinga new products in themarketplacethey can get more success and increased their brand value as they will be ableto attain more consumers attentionin their variety of products. ï‚·Governmentalsupport:-Theauthoritiesofallthenationalwayssupportthose companies who are producing those products which are favourable to the economy. As M&S is always follow all the rules and regulations while producing their products due to which they are able to get more support of the government in developing the new product like they will take the benefit of lower tax rate in their new products(Cahill and Sedrak, 2012). Hence, form the above discussed model it can be say that evolution of new producta will be beneficial for the M&S as they will able to accomplish itsaims and targetsin an appropriate manner. 7
M3 Application of force field analysis to analyse the driving and resisting forces and its impact While implementing the changes every organisation have to face the barriers which have negative impact on the performance of the company. By using this model M&S can easily adopt the changes as this will help them to evaluate all the driving resisting factors of the business. Driving forces are related to the technology, competition and manpower of the organisation whether the resisting forces are related to the lack of workers and higher functional cost. These both have huge impact on the decision process of the organisation like driving forces insist the management to provide better training and development programs so the employees will motivate towards the goals and objectives. Other resisting forces also great impact on the decision making as the management have to motivate their employees to adopt some ew techniques and tells them the benefits of the changes so that the employees will motivate which results higher retention of employees and profitability in the organisation. D2 Critically analyse force field analysis for accomplishing organisational objectives This model is useful for thebusinessas it assist an organisation to inspire and influence theiremployeeswithvariousfactorsandtechniquestowardstheorganisationgoalsand objectives. It helps the business to collect all the data related to the change and also make easy for the association to build a healthy relationship with their subordinates. With this helps of this they can establish a common understanding among all the group member so they can avoid the conflicts and issues regarding the change. Although it is very beneficial but it has also some negative impact as in this method require participation of every employees if all the member are not ready to participate then it create division of the group. This will have negative impact on the employees mind as well as overall performance of the company(Leiceaga and et. al., 2015). TASK 4 P5. Apply different leadership approaches to deal with the changes For sustaining in the market and achieving higher position in the market, it ismandatory for thecompany to follow impressiveleadership approaches. A proper leadership framework helps an organisation to directing, motivating, managing and guiding various people in the right direction. M&S needs to adopt an effective leadership approach in their organisation so that they will be able to make interest of their employees in the changing environment. Here are defined below various leadership approaches: 8
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Democratic leadership approach:Thisformulationof leadership isperfectfor adopting to adopt for any organisation as it promotes the free flow of ideas, opinions, and issues.In this approach all the member of the organisation are included in the decision-making process. This frameworkofleadingis mostappropriatein the speedily changing environment which is very beneficial to the M&S(Rocha-Santos and et. al., 2016).It will helps them to easily communicate with their subordinates which results higher productivity, enhanced employees morale, and better contribution of their employees in launching new products. Situational leadership approach: This leadership style refers to that processes which are in continuously changing position as to meet the needs of their organisation and work environment. Leaders of M&S will adopt this approach as it will helps them to maintain their position and their employees interest in the changing position which might occur due to the external environment.For instance, if the technology will changes in the organisation then this approach will helps the leader of M&S to motivate their employees by introducing the benefits of new technologies in their production process. Transactional leadership approach:It is alsoillustriousas managerial leadership as in this approach leaders focus on the organise, supervise and enhance the group performance. M&S can use this approach as they are focussing on a specific task like introducing a new product. In this approach the leaders of M&S will use the rewards and punishment for motivating their employees in order to achieve the organisational goals. Hence, by discussing all the leadership approaches it can be say that the democratic leadership approach is best suitable for the M&S as it will direct impact on the employees mind which results higher productivity and increase brand value(Bolton and et. al., 2013). Lewin's change model : This model is very simple and easy to adopt which helps an organisation to know about their changing process. The model is widely used by the companies as by adopting this model they can analyse that the changes procedure should be implemented or not.Itconsist threestages which are defined below: Unfreezing:Itis the first step of this model in which the employees are denied toadopt the newmodification in the organization.In this stage, it is essential for M&S to clear communicate with their employees and tells that these changes are very beneficial for the 9
organisation so that they willing to accept new changes and do their best possibleefforts for achieving the goals and objectives. Changing:At this stage,workersarepromptto accept the modifications within the business. For implementing modification successfully M&S needs to give more training and support to their employees which will increase the morale of the employees(Wilkinson and Kemmis, 2015). Refreezing :It is the final and most important stage which pertains that the changes should be reinforced and sustain properly. In this step, M&S should focus on the proper evaluation, monitor and controlling on their employees activities. Also, they needs to provide best development programsfor motivating theirworkersso they will do efforts for sustaining the change process for a longer period of time. Hence, this model will helps the business to execute the changes effectively so that they will be able to accomplish their goals and objectives easily. M4Evaluate which leadership approach and model is suitable for the organisation Above discussed all theleading formulationsare very beneficial for the company but in the context of M&S Democratic approach is best for them as it helps theorganisationto motivates their employees in anappropriatemanner(Hintz and Bahia, 2013). By adopting this approach managers can easily communicate with their employees so the employees will get motivatedandcooperatethecompanytoaccomplishitsgoalsandobjectives.Also,for motivating their employees to accept the change in their processes they will adopt Lewin's change model. By following thisframeworkthey can influence and motivates their employees to adoptchanges so the company will able to gain the higher profits and competitive advantage in the marketplace. D3 Critically evaluate leadership approaches and models of change management Byapplyingeffectiveleadershipformulationsanorganisationcanenhancetheir employees motivation as well as overall performance of the organisation. As the M&S is focussing on the adopt Democratic leadership style which will help them to solve their complex problems, build strong team, create healthy environment and many others. On the other hand sometimes it is not suitable for the company as it is very time consuming, ineffective during crisis situation, success depend on expertise leader etc. Moreover, the model which is used by the M&S is also create problems sometimesas it promotes the diversion of team because every 10
member is not satisfied form the change which haveperverseeffecton the profitability and productivenessof the company(Bolton and et. al., 2013). 11
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CONCLUSION From the above file, it can be say that the process of implementing changes is essential for every organisation. In the process of implementing the changes the organisational strategies and operations have also greatly affected. Along with this it has also covered that how all the external and internal factors which caneffectthe leadership and individual behaviour. Analysing all theelementswhich have direct impact on the business decision-making so that the negative impact of these factors can be reduce. For accomplishing theaims and objectives of the organisationalsoappliedtheleadershipapproachsotheproductivity,profitabilityand sustainability of the business can be increase. 12
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