Understanding and Leading Change

This document discusses the impacts of drivers of change on strategy and operations through two organizations, as well as the effects of external and internal drivers of change on leadership, team, and individual behavior in the organizational context.

Understanding and Leading
Change

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
P1Compare the impacts of drivers of changes on the strategy & operations through two
organizations................................................................................................................................3
P2 Impacts of external and internal drivers of change that affects leadership, team and
individual’s behaviour in the organizational context.................................................................10
P3 Appropriate theories to minimize negative impact of change on organization’s behaviour 14
P4 Force Field Analysis model..................................................................................................16
P5 Different leadership approaches and change management model.......................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Leading change needs developing new experience for individuals that discloses new
opportunities while drive strategies influence individuals to take change successfully in the
marketplace. While understanding and leading change supports individuals to deal with their
problems which comes within initiating and imposing change. it gives huge contribution in
organization’s profitability and makes highly competent in the business market. When
organization keeps constant changes in their operations and products as per the market situation
that automatically makes organization sustainable in it’s market (Allen, 2018). To understand
leading change has an example of Tesco company. It is a British multinational groceries
company and famous as general merchandise retailer in the UK market. It is headquartered in
England, UK which posses’ wide range of products. The main objective of the report is to
provide understanding about drivers of change which impacts on organization’s strategy and
operation through two organizational examples i.e. Tesco and Asda.
MAINBODY
P1Compare the impacts of drivers of changes on the strategy & operations through two
organizations
Organization Changes Drivers of
change
Impact on strategy Impact of operations
Tesco Pest Political
change
Organization has short-
term strategy to expand
it’s trading in multiple
countries. But political
changes impact on it’s
strategy negatively
because according to
UK’s government norms
an organization cannot
retail it’s products in
multiple countries as
Organization provides
safety and security
individuals within
workplace. it is major
operation of the
organization because to
keep all staff safe
requires good
maintenance and
effective managerial
skills therefore it offer

result Tesco unable to
sell it’s products in other
countries. Due to this it
unable to influence
demands of products in
other countries which
directly impacts on sales
revenue of products
negatively (Archer and
et.al., 2019).
safety and security
policy to individuals
which ensures them
that no employees are
discriminated by senior
authority. Whereas
political changes i.e.
workplace place safety
act influences this
operation of company
positively. With this
policy organizational
enables to maintain
individual’s wellbeing
within company as
well as government.
Economical
change
Organization has strategy
to offer high quality
products to all customer
in UK whereas economic
factors i.e. currency
fluctuation etc. give
impact on retail sectors
negatively. While Tesco
is UK based organization
whereas it has currency
exchange rate policy that
is major strength of the
business. Due to this
strength enables to
overcome currency
Human resource
management of Tesco
has goal to improve the
number of training
scheme for staff and
development in
recruitment process.
Whereas economical
factor gives negative
impact on this
operation because it
requires high cost
investment in training
schemes. Due to lack
of funding source

fluctuation issue and
improves purchasing
behaviour of customers
in the marketplace. This
driver factor gives
positive impact on
organization’s
performance and
profitability.
unable to perform this
function effectively in
the organization
(HUNTER, 2017).
Socio-cultural
change
Management of
organization makes
decision to offer home
delivery services to the
customer which gives
values to them and
encourages to buy
products without wasting
time. On the other hand,
UK’s customer who are
highly updated for e-
commerce retailing and
love to prefer online
shopping instead of
traditional shopping.
Such kind consumer’s
buying behaviour change
impacts on
organization’s decision
positively. Thus,
company potentially
generates high profit
The main function of
the operation
management is to fulfil
all needs of customers
by offering high
quality products and
services. The operation
management of Tesco
plc impact by social-
cultural factors
positively because they
offer wide features in
products which meet
each class demands i.e.
upper, middle and
lower class effectively
and in return generate
lifetime loyalty of
customer’s on brand.
Thus, socio-cultural
change influence’s
operation of business

margin on it’s products
and influence customer’s
shopping experience.
overall socio-cultural
factor influences
organization’s decisions
effectively.
in the global market.
Technologica
l change
Organization has planned
to launch self-check-out
machine. It is new
emerging technology for
past few years but
currently it is highly used
by retail stores (Iles,
2017). Tesco gets
positive impact of
technological change
because it influences
success of plan. With this
technology company
improves employees
selling efficiency in the
workplace and saves
times of customers.
Online operation is on
of the major function
of the Tesco because it
runs world’s largest
grocery home shopping
services through it’s
own website
Tesco.com. this
website has been
launched in 2000
which is still managed
by Tesco. With the
website organization
aware it’s customer
about new products
and services and offers
different payment
methods. Thus, it
manages all functions
effectively within
organization. So
technological change
influences operation’s
efficiency effectively

within company.
Organizatio
n
Change
s
Drivers of
change Impact on strategy Impact of operations
Asda Pest Political
change
Asda is a British
supermarket chain
which trades wide range
of products like Asda to
the customer.
Organization has
strategy to improve
employee’s productivity
within workplace.
employment law is one
of the most effective
factors of political
change (Jack and et.al.,
2018). UK’s government
has goal to eradicate
unemployment rate from
the country so it recruits
large number of
vacancies for those who
does not have job or
does not get any
platform to perform
themselves due to
financial issue. Thus,
Asda gets positive
impact on it’s strategy
through political factors
Asda has operation to
build customer welfare
in the market. So, it
introduces incentives
and numerous schemes
for customer’s
benefits. Therefore, it
focuses on all issues
that associated with
environment, climate
changes, public
awareness and reduces
footprints so that
maintain public
wellbeing.
Organization gets
positive impact on it’s
operation through
political factors such as
UK’s government
promotes
organization’s
operation effectively.

because it gets large
number of staff for
supply chain who has
willing to work on lower
cost. Even it gets
support from
government as well. thus
this political drivers
influences success of
recruitment strategy in
the business market.
Economical
change
Asda has goal to give
high availability of it’s
products in all over the
world. But economical
factor i.e. exchanges rate
impacts on long-term
strategy (Jones and
Comfort, 2020). the
reason behind is that
Asda does not have
currency exchange rate
policy that causes it
unable to offer it’s
product to all over the
world.
Organization provides
high availability of it’s
products on it’s retail
stores which are
located in multiple
countries. This
operation is performed
by suppliers
effectively. So,
organization recruits
large number of
candidates who can
perform this operation
effectively but low
wage act gives
negative impact on
organization’s
operation. Due to low
wage act organization
cannot recruit labour

on lower cost as result
unable to improve high
productivity of
suppliers for supply
chain. Thus, company
unable to give high
availability of product
to the customer.
Socio-
cultural
change
Organization uses
market segmentation
strategy to target it’s
particular customer’s so
that it can build loyal
customers which helps
to generate sustainable
revenue on product
selling. Demographical
changes are considered
one of important factors
of socio-cultural change.
with the market
segmentation strategy
organization targets two
markets demographical
and psychological
market segments (Knoll,
Matthes and Heiss,
2020). Thus, company
enables to give values to
each individual as per
their needs and
HR management of
Asda has function to
trained it’s staff
effectively so that
individuals can give
effective service to the
customer and leads
satisfaction in them.
Therefore, HR
managers organization
T&D class per four
quarter month to make
individual skilful and
competent. This
operation influences by
socio-cultural factors
because it improves
buying behaviour of
customers within
stores.

expectations and builds
good brand image in
customer’s mind. Thus,
socio-cultural factors
give positive impact on
Asda plc performance.
Technologica
l
Organization takes
decision to control on
stock so that no wastage
takes place in the
inventory as well as it
reduces cost of
inventory. Whereas new
emerging technology of
stock control influences
organization’s decision
because it gets chance to
keep control on it’s
stock and saves cost of
extra expenditures as
result improves
economical
infrastructure of
company.
Asda offers two type
services online and
offline retailing
services. Online
retailing and offline
retailing operations are
performed by staff
effectively. Whereas
technological factors
improve efficiency of
the operation
effectively such as
wireless devices
influence online
retailing operations
effectively while self-
check-out machine
influence’s offline
retailing efficiency
within workplace.
P2 Impacts of external and internal drivers of change that affects leadership, team and
individual’s behaviour in the organizational context
Change Internal/ Impact on
leadership
Impact on
team/department
Impact on
individual

external behaviour behaviour behaviour
Management
change
Strong
workforce
(Internal
driver)
Strong workforce
is the major
strength of Tesco
that gave positive
impact on
leadership
behaviour such as
employees
promoted
management
change by
following all rules
and regulation. In
addition,
management did
not have to
motivate it’s staff
through rewards
and training
schemes.
Leadership
approach
influenced through
external drivers
for leading change
in management
successfully.
This driver also has
supported team and
department to
accept change in
management and
encouraged them to
follow all decision
which was taken by
new management to
led high
profitability in the
business. Thus,
Strong workforce
promoted
management
change instead of
resistance
effectively. Thus,
management
change was
promoted by team
and department
behaviours.
This internal
driver influenced
individual’s
behaviour to
change in
management.
For example,
when strong
workforce
presented within
workplace that
encouraged
individuals to
accept change
effectively.
Product
development
Good
financial
performance
Good financial
performance
promoted product
Tesco has good
financial
performance that is
Internal factor
also has
impacted on

(Internal
factor)
development
change in the
organization. for
example, Tesco
enabled to invest
high funds on
R&D department
for the product
development.
Whereas
leadership gained
positive impact
through good
financial position
because it enabled
to train it’s staff
more effectively
through training
classes.
major strength of
company, so it
encouraged it’s staff
to give high efforts
in their working
performance and
motivated them
through god
incentives and
bonus schemes. It
gave productive
impact on team and
department
behaviours.
individual’s
behaviour for
example when
organization
gave additional
money in term of
compensation
that encouraged
individuals to
sold it’s new
products in wide
rage to the
people
effectively.
Impact on
revenue
Instability in
Corporate tax
policy
(External
factor)
Instability in
corporate tax
policy gave
directly impact of
revenue of the
company such as
when corporate
tax rate became
high as result
reduced revenue
of the company. It
directly impacted
When rate of tax
increased then it
directly impacted
on team and
department
behaviour because
they had to change
their operation to
overcame the
impact. New
adaption of
operation led
This driver
impacted on
individual’s
behaviour as
well because
when tax rate
became high
then purchasing
behaviour of
individuals
declined that
reduced selling

on leadership
behaviour because
management had
to change their
leadership style to
generated high
revenue in the
company by
minimizing tax
policy issue.
uncertainly in
working
performance
(Lewin, 2016).
revenue of
company. Due
to loss in
revenue
impacted on
employee’s
salary
negatively. Thus,
corporate tax
policy reduced
wellbeing of
individuals
within company.
Impact on
economic
infrastructur
e
Technologica
l changes
(External
factor)
Technological
change directly
impacted on
leadership
behaviour
negatively because
management had
to adapt new
leadership style to
develop new
technical skills in
individuals which
influenced cost of
company. In that
state, leaders
unable to give god
training class to
staff for accepting
Technological
change also
impacted on team
and department’s
behaviour because
they had changed
their strategies
which required high
funds but possessed
more profitability
(Bateman, 2017).
Due to
technological
change unable to
offer good quality
products services to
the customer which
directly gave
External factor
impacted on
individuals
behaviour as
well because
they had to
change their
operational
practices which
created
complexity for
them. To learn
working
performance of
new technology
requited training
class. But they
did not get any

change. negative impact on
economic
infrastructure of the
company.
training class as
result unable to
give good
service to the
customer which
negatively
impacted
organizational
infrastructure.
P3 Appropriate theories to minimize negative impact of change on organization’s behaviour
There are various models and theories that supports to minimizes negative impact of
organization’s behaviour and it’s performance. Tesco uses various theory to overcome it’s issues
associated to leadership, team and individuals behaviour within company.
System theory
It is multidisciplinary theory that supports to understand relationship with each other and
others systems through holistic approach. It is effectively used by organization to understand
impact of environment on it’s essential resources i.e. customer who buy products and services,
suppliers delivers inputs to the manufacturing industries, management who provides about,
investors or shareholder who invest funds and government who imposes rules and policy for
regelation purpose. Thus, system theory model provides understanding about interdependency of
individuals on each other. The system theory model comprises number of systems i.e. open
system, close system and homeostasis system (Neumann, James and Vince, 2019). Open system
approach provides two communication between individuals and maintains wellbeing of them
within company. This system is highly sensitive for environment and responsible for change in
the environment. On the other hand, close system approach is highly insensitive for the external
and internal environment. Tesco can use this model to minimizes it’s external change impact on
organization’s performance and productivity. With open system approach, organization can take
feedback of individuals about new change i.e. technological change or salary tax rate policy etc.
and can give them values by asking for suggestion. thus, with this model organization can

negotiate it’s staff to accept change without conflict crisis. in addition, it improves competency
of organization in the dynamic business environment.
Burke-Litwen Model
It is performance and change model that is developed in 1992 which is used to
understand an company’s components and their interrelationship with each other in a time of
change. This model is used to disclose the weak area of the business that can impact on it’s
performance as well as relates with other areas. As know changes comes from external
influences which impacts all functional areas of company (Bullo and Lewis, 2019). This model
has 12 drivers that identify change within business and these drivers are organized on the basis of
their specified roles and responsibilities. For example, Corporate tax policy is the external
environmental factor that is important for organizational change because it can direct impact on
revenue of the company. Therefore, Tesco uses this model to minimize negative impact of
external environment. whereas Burke Litwen Model supports company to influence it’s
transformational drivers to lead change successfully in busines. It includes three drivers i.e.
mission, leadership development and corporate culture are known as transformational drivers.
These drivers set mission of the company and leaders develops objective to achieve success in
leading change. The main goal of the company is to influence revenue of the company by
improving purchasing behaviour of customers (Rossi, 2019). While leaders use appropriate
leadership style i.e. situational leadership to train it’s staff how to influence customer’s for
buying. Even management of Tesco gives good corporate culture within organization that
negotiate staff ad individuals to put more efforts to lead success in this change. Other is
transactional drivers includes organizational structure, system, work climate, management
practice, individuals need and values, motivation and task and individuals’ skills etc. these are
major drivers that impacts on business performance. Tesco aligns all key drivers effectively
within company so that they play effective role in change process and maintains sustainable
business performance in the business market. Remaining two drivers are individuals and
organizational performance that gives outcome of leading change. With last remaining drivers
Tesco enables to analyse that drivers meets with change successfully or not.
Conclusion and Recommendation

From the above discussion is summarized that external and internal impacts on
organization’s behaviour, performance, productivity and operations as well. there are various
theories i.e. system theory and Burke-Litwen Model has used to minimize negative impact of
external change within organization successfully.
To lead successful and sustainable change within organization must follow continuous
improvement models theory. this model comprises number of change theory which supports
Tesco to achieve sustainable competitive advantage in the business market.
P4 Force Field Analysis model
It is a strategic management approach that ensures business response against environment
in which it runs. The model provides understanding of the change problems which requires to be
deal by company. It is proposed by Lewin in 1951 that is characterized as a state of imbalance
between driving forces and restraining forces (Solutions and Belt, 2017). Whereas driving forces
are new personnel, changing market, new technology and others while restraining forces includes
individual’s fear’s for taking risk associated task, communication issues and others. To lead
change successfully within organization requires three steps i.e. unfreezing, freezing and
refreezing.
Organization has goal to improve brand image in the business market by meeting all
objectives of customers and comply with external environment successfully. To achieve it’s goal
effectively applies force field analysis model by Tesco. With the model organization differentiate
it’s driving forces and restraining forces. Driving forces helps company to lead in right direction
while restraining force tend to limit driving forces which leads dissatisfactory change within
company. The driving forces of company includes new technology, incentives, policy and tough
competition. While Restraining forces are individuals fear of failure and poor communication
etc. are strong in Tesco as compared driving forces. This is primary step of force field analysis
whereas identify it’s driving force that needs to be changed and restrain force needs to negotiate
for the accept change. Generally, restrain forces are stronger in the organization as compared
driving forces. So, change management tool is used to analyse the forces driving force and
restraining forces (against) so that restrain forces can reduce effectively.

Tesco uses some models i.e. Pestle and swot to find desired stage between driving force
and restraining forces. With the change phase management of Tesco provides open
communication facility to the staff so that they can share their viewpoints and negotiates them to
create creativity. Such kind initiatives reduce resistance of staff for leading change (STYLE,
2019). To encourage skilful staff within workplace introduces incentives as reward strategy.
thus, company negotiate it’s staff to lead change successfully. The third phase is refreezing
whereas organization enables to lead successful change within company. To keep this change,
prolong time within company provides training and development classes to the staff by leaders
so that they improve their working efficiency and skills as per external environment requirement
and meets it’s objective over the time period. Thus, Tesco achieves it’s goal with the force field
analysis model and improves workforce potential. it gives impact on leadership decision-making
process as well such as leaders take decision to offers training and development classes and
negotiates it’s staff to engage with training activities. Overall force field analysis impacts on
leadership’s decision-making process positively. The major drawback of the model is that it is
time-consuming model and requires management expertise to implement model successfully
within company.
P5 Different leadership approaches and change management
model
Change management approaches
Situational leadership
Situational leadership style is the ability of individuals to adjust their style as
per the situation. With the leadership style leaders has ability to change it’s
leadership style accordingly organization’s situation and influences group of
people to achieve common goal effectively. It comprises four type leadership
styles i.e. directing, participating, delegating and training. The management of
Tesco follows this leadership style to deal with organizational change successfully.
Technological change is the major change of Tesco that organization wants to deal

for achieving competitive advantage. So, management adapts training leadership
style so that they can give training to individuals effectively (Horton and et.al.,
2019). Initially all staff member resist to lead change in technology or operating
new technology. In that situation, leaders organize technical skill program for the
staff and encourages them to give high attendance in the program. With this
program leaders makes them understand how to operate new technology and
negotiates them to accept change instead of resistance. Thus, organization enables
to achieve highly competitive advantage in the business market and implement
change within workplace effectively.
Democratic leadership style: It is also known as participative leadership style
whereas leader influence it’s staff member to take more participative role in the
decision-making process.
Autocratic leadership style: It is management style type whereas manager takes all
decision independently while taking little inputs from other staff member within
company.
Transformational leadership: it is a theory of leadership whereas leader determine
needs and expectation of individual while working with team and creates vision to
direct them to accept change through motivation.
Transactional leadership: It is an effective leadership whereas leader keeps fair
balance between reward and punishment and maintains wellbeing of individuals
within company.
Change management models
Kurt Lewin Model

It is another change management approach that helps to lead change
successfully within company (Yrjölä and et.al., 2019). The model is based on the
nature of business and the people who involves in it. It also depends on people
attitude towards change process. Tesco uses this model to implement change
successfully within company. This model comprises three steps unfreezing,
change/transition and refreezing. Organization has mission to give value added
products and service to the customer and comply with all external factors i.e.
technological changes.
Unfreezing: This phase involves in developing environment whereas
motivates individuals to move in new direction. To negotiate staff for leading
change requires key stakeholders and staff, communication in this stage. With this
stage management of Tesco provides two way communication facility to the staff
member and organizes T&D development program so that individuals understand
significance of leading technological change within company. While T&D
program improves their technical skills effectively.
Change: When Tesco negotiate it’s staff to lead change successfully in the
unfreezing stage, then actual change initiates whereas employees learns new ways
of working through new technology and learns new values, behaviour and
attitudes. the major challenges are poor communication and less interest of staff
can supress the implemented change. So, organization provide two-way
communication whereas individuals can communicate each other and other related
to task issues and others. thus, company enables implement change successfully
within workplace.
Refreezing: It is last stage that signifies the act of stablishing new system
within business for long time after the change. To lead sustainability in employee’s

working performance introduces T&D program per four quarter month which
ensures individuals that they do not fall back into old manner of working (Espedal,
2017). With this strategy Tesco enables to achieve sustainable business
performance in the business market. The major drawback of the model is that it is
time-consuming process and have to follow with it’s sequence or if management
unable to follow all steps of model effectively then organization unable to achieve
desirable outcomes within company.
Kottler’s 8 step model
 Increasing urgency for change: Leader determine and highlights potential
threats which can impact on organization’s growth in future.
 Forming a guiding coalition: After determining all threats leader involves
key stakeholder to build effective and productive team.
 Developing the mission: Based on the organization needs creates mission
of the company and defines it’s significance to it’s staff member so that they
understand effectively and adapts change.
 Communicating the vision: To communicate vision effectively change
leader provides all necessary aspects like training and rewards to staff
accordingly their performance on time.
 Removing obstacles: Leader supervises all staff performance within
workplace and constantly checking people who resist for the change and
follows effective strategies to remove all obstacles.
 Creating short-term wins: Leaders of the company delegates tasks with
timeframe instead of long-term targets that improves receptibilities in
individuals for their job and have lesser chances to failure.

 Staying persistent: To measure improvement in individual performance
constantly takes feedback from individuals about the change which have
adopted by them
 Anchoring the changes: With the feedback strategy leaders ensures
individuals that change must become important part to lead success in
company.
Critically evaluate effectiveness of leadership and models of change management
Autocratic and democratic leadership style supports change management of Tesco to lead
change successfully in the organization by delegating tasks to individuals and negotiates them to
follow change effectively. For example, autocratic leadership helps to delegate tasks to lead
change effectively while democratic encourages people who resist for change. Thus, both
approaches plays different roles while leading change in the organization. the major drawback of
leadership styles is that democratic leadership leads competitive disadvantage while autocratic
leadership style unable to achieve long-term goals.
Kotter’s model and Lewin model
Lewin model supports to lead constant change and it is quite easy process because it has
three steps for implementation. With this model change management leads change effectively
within company. While Kotter’s model also effective model that helps management to lead
change but it is quite long process as compared Lewin model.
CONCLUSION
The brief study has given understanding about leading change approach that assisted
company to meet all needs and preferences of customers accordingly different time zone and
established good relationship between organization and customers. thus, this approach supported
organization to differentiate itself from other brands. It has been summarized different drivers of
change and it’s impact on organization’s strategy and operations. Impact of external and internal
drivers change on leadership, team and individuals’ behaviours has been concluded in report.

Kurt Lewin model, force field analysis model and situational leadership approach has been
applied to deal with change in the organization context in this report.
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