Understanding and Leading Change Assignment - (Tesco)

UNDERSTANDING
AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Compare different organisational examples which gave impact of change on company
operations and strategy................................................................................................................1
TASK 2............................................................................................................................................5
P2 Internal and external drivers of change affect team, leadership and individual behaviour in
the company................................................................................................................................5
P3 Measures taken to minimise negative impacts of change on organisational behaviour........7
TASK 3..........................................................................................................................................10
P4 Different barriers for change and how it influence leadership and decision making..........10
TASK 4..........................................................................................................................................12
P5 Different leadership methods to deal with changes.............................................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Understanding and leading change is an important way through which company can
handle problems which are raise due to changes in market trends. Through this, they can able to
grab opportunity at perfect time in order to gain better results within the organisation (Perello,
2018). It will help in enhancing profitability and productivity of a business. TESCO is a retail
organization which is engaged in offering grocery items and household appliances across the
international level. In this report, it includes the comparison within two companies which gave
influence of change on operations and strategies. Along with this external and internal changes
gave impact on organisation, leadership and teams within the organisation. It also discuss the
different kinds of leadership styles which help in accepting changes within workplace.
TASK 1
P1 Compare different organisational examples which gave impact of change on company
operations and strategy
Change
Change involves approaches that redefine or redirect the use of resources, budget
allocations, business process, other operations modes that significantly change a organisation or
company. In TESCO, when changes are applied in an positive manner then it help manger to
accomplish predefined targets. But workers often react negatively towards modifications as well
as resist the changes.
Position as well as perception of the company gave impact on view of changes in an
positive or negative manner (Peterson, 2011). For example, the new campaign of TESCO is all
about “food products” and the name of campaign was “Love stories of Food brought to you
by TESCO” which shows the marketing technique of the organisation. As TESCO has good
positioning in market and better perception of people, this campaign was successful in achieving
the attention of people toward the firm (Sarah Vizard, 2017).
Types of organisational changes
Changes play a very main role in each enterprise as it mainly depend on market and
company have to accept the changes in order to run their activities in an effective manner.
Organisational changes demand proper formulation of strategies and approaches before actually
applying them within the company. Management support, prepare and equip all connected
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persons to accept the changes for the results and success of the business (Mwenyembegu, 2014).
Their are various kinds of organisational changes which take place in the TESCO are explained
in detail below: Strategic: In this, sometimes enterprise operations are essential for management in order
to adjust the strategy of company for meeting targets of the firms. If TESCO have to
make changes by adopting new structure within the workplace. They have to implement
strategic change which involve shifting in policies, mission of company and target
market. Structural: Company mainly finds it important to redesign the company structure due to
impact from extrinsic surrounding. Modifications in structural include goals,
administrative process, structural characteristics, management system and hierarchy
authority. All the changes are managed by TESCO which comes in structural changes. It
can be very simple as applying a policy of no-smoking or include as organisation
restructuring to achieve buyers requirements in an effectively way. Process: Company may require to makes changes within marketing process in order to
increase their sales so that established goals are fulfilled. Process oriented modifications
in marketing are changing in techniques, adopting latest technology and many more. People: In this, changes alter the behaviour, attitudes, workers performance or skills
within the organisation. Modifications in the process of people include leading,
communicating, interacting and motivating in groups. This concentrate may entail
changing how issues are resolved, way workers learn new skills, its jobs, nature of
workers and so on.
Drivers of change
In respect of using theories as well as models within the corporation, business can use
various methods and models in the organisation. As the changes can take place internally as well
as externally within the business (Morozumi, 2017). Through which it will gave impact on
TESCO strategy in several manner. Some of factors gave impact are as follows: External Drivers: As TESCO has modified the way of organising business within
various countries but it will gave impact due to external environment of enterprise in
various different ways. In this political factors, they have to make changes within policies
according to nations while conducting their business. In this, when organisation is
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organising change within structure they have to implement the policies accordingly.
Economic factors such as elasticity in demand influences changes in an organisational.
They have to make changes in structural by using proper use of resources in an efficient
manner. Social factors, requirement and preferences of consumers introduce changes in
the business processes. In this, changes rapidly take place within market and selected
firm have to adopt these modifications in order to satisfy their customers. Technology
factor, TESCO business activities are affected by changing technology as they also have
to adopt the changes accordingly. They have to accept modifications in order to compete
their competitors effectively. In this context, some of external drivers that majorly
becomes a reason of TESCO to make changes so that to resist at international market and
these are given beneath:
◦ Technology : This is being considered as major external driver that may push TESCO
Plc, to bring changes in products and services. Technology carries a rapid changing
nature, slight alterations may affect whole retailing process and procedures of TESCO
Plc. Here, making fully automatic billing department of stores of TESCO Plc is a
good example of technological external driver of change.
◦ Customer : Consumer's requirements gets changes on a regular basis. Thus, this can
also be considered as an external driver of alterations. For an example : Slight change
in requirements of customers related to grocery products like less usage of plastic
based goods. Here, TESCO may require to sell grocery products that are not made up
of plastic.
◦ Competitors : Rise in competition at international market can be reasonable for
TESCO Plc to make changes as per the requirements in order to sustain at
marketplace. For an example: When Walmart started improving their customer
numbers, TESCO had to change there policies and give discounts in United Kingdom
so that sustainability can stay stronger.
◦ Government : One of the most important external driver that may take TESCO Plc to
make alterations while doing business in a country. For an example : Change in
taxation rates and policies which is being made by United Kingdom's parliament may
lead TESCO Plc to lowering down the prices of grocery products so that there
customer base may not get affected.
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 Internal Drivers: The internal workplace of firms can influence on its strength and
weakness which gave impact on business. Strength of TESCO are providing better
quality of products to their consumers but if the perception of buyers is changed then it
will gave impact on business as they also have to alter their products and services.
Organisation weakness gave impact on business activities like as lack of marketing
strategies therefore business is enforced to undertake e-marketing tools to meet customer
demands. Threats are that internet technology help buyers to shop from home if firm will
not adopt latest techniques it will affect the sales of company. Opportunities are fastly
changing of technology in market have to adopt by organisation in order to run their
operations effectively. Invention - Let's discuss this change by taking example of
TESCO when they had planned to make extensive change the way their club-card works
and how attainable the customer to earn from these vouchers. This supermarket giant has
launched 'faster voucher' which permits club-card user to access for vouchers when they
need it. 'Faster vouchers' scheme enables customers to request for vouchers either online
or using Clubcard App that will help in the conversion of total points into vouchers in just
24 hours. Dissatisfaction - TESCO has comes up with change in satisfaction level of
their employee by initiating employee engagement in different activities within
organization: colleague briefing session, talent showcase, face-box, celebration of events
and rewards & recognition. Both of these can be considered as good example of internal
drivers of change that brought up good alterations in TESCO Plc.
Dealing with changes Strategy: Firms apply changes which impact TESCO operations in a negative or positive
manner. Through executing effective analysis of environmental organisation can deal
with harmful factors easily. Planned Change: In this, when changes are planned then it will help in taking a proper
decisions of applying a change within the business. Their are various planned changes
like as process oriented, people, strategies and so on. Company have to make a proper
plan by taking appropriate decisions in order to deal within these modifications.
 Emergent Change: These changes are those which are not planned. In order to deal with
these changes they have to forecast the external environment so that managers can take
decisions when changes will occur at workplace (Lööf and Mack, 2016).
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TASK 2
P2 Internal and external drivers of change affect team, leadership and individual behaviour in the
company
Change management is the process by which changes can be accomplished within
organisational system according to its need. Manager make a plan before establishing change
within workplace which involve forecasting objectives, mission, strategies, vision and so on.
Additionally, it gives several tools & techniques to managers and workers so that they can take a
initiate of changes. It will assist in creating modification in a appropriate way so that risks of
alteration can be declined. For reducing risks of changes, supervisors of TESCO needs to
analyse the external and internal drivers of change. For examining position, resources and audit
of this firm they have to follow the approaches in order to understand the impact on leadership,
individuals and teams. Here, internal drivers majorly affect leadership, squad and individuals.
Some of internal drivers are : dissatisfaction, capabilities, invention and many more can be
considered as major ones that may affect and bring changes TESCO's employees, managers and
leadership behaviour.
Psychological Influence of Modification on Team Dynamics, People and Management
Practices
In the term of TESCO, certain main influence of change on team dynamics, people and
management practices are as follow:
People Team Dynamics Management Practices
Modifications happen within
business environment which
gave impact on operational
activities within external as
well as internal environment.
It will create a huge influence
on workers like as low level
of trust, negative emotions,
worry etc. It is hard for them
to accept modifications
When employees are do not
accept the changes then it will
give rise to several issues which
impact team work. With this, it
gave rise to problems within team
development. Changes in team
dynamic will increase the
conflicts within the groups.
Changes in company require
management of TESCO to
make modifications in
practices and policies. With
this, creating modifications
within system need lot of
finance it also raise the cost
effectiveness (Liu and et. al.,
2018).
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easily. Hence, it demotivate
them due to that they cant
able to accomplish their work
properly.
SWOT Analysis
Strengths Weaknesses
 TESCO is a biggest firm within UK
market. As it provides better quality of
goods and services. It will help in
raising brand value among the buyers.
 TESCO have won various number of
awards for its amazing retail services
and overall shopping excellence.
 Beside this, broad varieties of goods
drawback is that various products are
out of fashioned which does not exists
within trend. As company have to adopt
changes as per latest trends in the
market.
 Pressure of competition resulted in price
wars due to which company has gone
through few losses.
 One of the major drawback of this
company is that, they are not focussing
on other market for its profits as only
depend upon Europe and UK.
Opportunities Threats
 Speedy changes within digital
technologies has provided opportunity
to the company. TESCO have to grab
the opportunity in order to earn higher
level of profits (KUAR, 2015).
 By producing organic goods, this
organisation can attract the buyers.
 Rules & regulation, policies of
government gave impact on trading
within international market.
 Raising competitors rate such as Marks
and Spencer, ASDA, Morrisons and
many more decline its sales. So,
organisations have to make changes as
per their rivals in order to enhance their
sales.
PEST Analysis
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Political Economical
 Declining in sourcing of costs because
of free trade policy.
 Modifications in taxation and
government policy influencing an
organisation to alter its pricing
strategies to meet with political
regulations. .
 Brexit have important implications for
enterprises. It will effect the business
activities in an negative way due to
decline in the value of currency.
 Disputes with small retailers over good
cost rise because of having currency
influence on Brexit. Therefore, it will
gave negative impact on business.
Social Technology
 Initiatives supports the community
surrounding which aid to decline
internal cost. Therefore business is
persuaded to comply with ever
changing demands and preferences of
people through alteration.
 Technology advancement in the
business environment is frequent. For
example: TESCO have to adopt the
changes which take place within
marketplace such as formation of E-
Commerce platforms so that
sustainability could be enhanced.
Led Drivers: Consumer-led Drivers: It will affect the buyers perception by which their taste,
preferences and interest changes. With this, alteration in persons income, market trends,
demography etc. are needed to be analysed by supervisor of TESCO. It will assist in
formulating new operations and strategies.
 Technology-led Driver: In order to enhance image of brand and gaining competitive
benefits. TESCO are require to make changes within technology. Supervisors have to use
latest tools & techniques within organisational system.
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P3 Measures taken to minimise negative impacts of change on organisational behaviour
Modifications in organisational culture, system, approaches of operations, technology etc.
involve several risks (Kalle, 2017). This will impacts on people behaviour in a negative or
positive manner. Hence, it is important for supervisors of TESCO to adopt the changes in an
effective way. Firm have to evaluate several conditions where changes can take place which will
gave influence on behavioural changes as well. In order to use these changes within whole
system TESCO manager have to use the system theory for applying these changes within the
given budgets.
System theory: In this theory, it is a concept based on knowledge regarding the
complexity of the nature, society and science. It gives a structure by which an particular person
can analyse, evaluate grounds objects which perform at the same time to establish some output.
Burke – Litwin Model is applied within the company which are given below:
Burke-Litwin Model
This model believe that extrinsic factors are most essential drivers for modifications.
Significant factors of the success of organisational like as strategy, mission, organisation culture,
leadership etc. gave impact on changes. Its dimensions of this model are: Leadership: This play a very main role within company in order to motivate employees
with a mission and vision in order to meet their end targets. They have to make changes
in their styles of leadership company can use the transactional and transformational
leadership in order to accomplish the change in an successful manner. Strategy and mission: TESCO develop strategies in order to achieve goals for completing
firms mission. It is essential for a business to redefine its strategies so that mission of
business could be fulfilled. Culture of organisation: The culture of firms refers its norms as well as value which is
not a exact strategy but help in maintaining a positive workplace for the workers. External environment: In this, it involves various factors like as political, economic and
so on which represent forces and conditions which affect the company. TESCO have to
accept the changes in the external environment i.e. economic fluctuation or changes in
customer's preferences in order to accomplish their business activities in an effective
manner.
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 Structure: The TESCO structure like as channel of reporting, departments, hierarchy etc.
They adopt the change in the hierarchy structure in order to accomplish every functions
of company in an appropriate way as it assures right division of roles and responsibilities. Motivation: Managers set the targets in order to inspire as well as direct workers to work
hard (Hullinger, 2017). Transactional leadership motivate their employees in order to
accept changes. Task requirement and individual skills: The management want for the workers who are
well skilled and qualified as per their work.
Continuous Improvement Development
In an TESCO some measures are used on daily basis so that growth in products and
services quality can be experienced. In this, Continuous improvements is ongoing improvements
of processes, services or products by breakthrough and incremental enhancements. This will
assist in bringing modifications in an positive way. It includes series of steps which are:
(Source: Continuous Improvement Development, 2017) Plan: Finding of an idea in order to explore opportunity. Do: In this step they will take a action (Gholamzadeh and Jakobsson, 2011). Check: Monitoring of accomplishing work in order to find the level of change take place.
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Illustration 1: Continuous Improvement
Development

 Act: After identified then change is implemented successfully than it is taken to a wider
company context.
Some of advantages and disadvantages of using continuous improvement development
are given below:
Advantages :
 With the help of continuous improvement development plan, TESCO Plc may bring
specific changes as per the requirements and needs of customers. Through this, sales and
productivity can be enhanced. Continuous improvement plan will also lead TESCO to keep up the quality of its
products and services. Through this, consumer base and belief of customers can be
enhanced over goods which is being offered by TESCO Plc.
Disadvantages :
 Continuous improvement plan requires good investment which may directly impact over
profit margins of TESCO Plc. Thus, this can be considered as a major drawback of using
this approach.
 This type of plan also require time which TESCO cannot afford because of high
competition at marketplace. Therefore, if organisation adopts this approach then it may
lead TESCO to create some barriers for them.
By the help of this system theory as well as continuous development plan is
implementation the changes successful. In current period, competition has increased to a great
extent therefore it is essential for each organisation to accept the modifications in an same way.
It will assist in increasing sales along with this it can gave a hard competition to other business in
the similar field.
TASK 3
P4 Different barriers for change and how it influence leadership and decision making
Rapid change in trends of marketplace assist a firm to create modifications in
organisation system through which it can gain sustainability in business. In context with current
scenario, due to intense competition, TESCO had create a change in their structure by using
latest technology within the workplace. Schien cultural model states barriers that arise in
execution of changes are cultural difference among workers and leadership skills of managers.
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As any alterations will affect entire working environment of business. Along with this, red
tapping, bureaucracy, fluctuation in external factors, internal issues and more are also considered
as obstacles (Greene, 2014). Other barriers in same instance are:-
Lack of Knowledge: It is considered as one of the common obstacle in implementation of
changes. If there is a lack of knowledge in understanding the importance of change then it will
naturally generate issues in implementation of any modification in working system of a company
(Deeg and et. al., 2013). Thus, it is essentials for managers of TESCO to determine in which area
changes are necessary and use effective methods to implement the same into workplace in
systematic manner.
Insufficient leadership skills- In order to influence people towards changes, a manager
needs to adopt effective leadership skills in management. Lack of leadership style will also come
as barrier in change. Therefore, it is necessary for leaders and managers of TESCO to adopt
effective leadership style such as democratic and more to turn negative behaviour of employees
into positive.
Prioritisation problems: Shortage of resources, deadline of various projects in same time
and so on are also generate issues. It create the confusion and due to that they do not able to
accomplish their single project properly.
Lack of communication: It has evaluated that if a company used to impose changes on
workforce rather than to initiate by effective way of communication then it will also lead
problems like resistivity among workers to adopt modification. Thus, in context with TESCO, it
is important to conduct meetings with employees so that they can provide important information
related to change within the workplace. It helps them in understanding the importance of change
and will support organisation in achievement of targeted objectives.
Perception of self efficiency and resistance to change: As modifications is essential for
achievement of business growth therefore, it is necessary for managers of TESCO to introduce
effective culture in organisation. As per Schien model, impose changes will impact on perception
of workers in negative manner and give rise to resistance in opting for change. In addition to
this, shortage of resources, technological issues, lack of skills and knowledge of workers etc. are
some major obstacles which can restraint growth of business.
Case Study: As per current scenario of TESCO, managers are required to monitor as well
as control overall operational activities of business for initiating changes in successful manner. It
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will help in attaining targeted goals of business. For reducing resistance and barriers,
management of TESCO must implement force filed evaluation as explained below:
Force field analysis: In this model, TESCO had implement the change within the
organisational structure. Along with this firm identify the opposition and support of changes
which are taking place within workplace. Here, opposition factors of change are cost, impact due
to environmental changes, disruption in whole process. Positive impact of changes are enhance
the business activities, increase in sales and so on.
Influence on decision-making
There is a substantial impact of barrier and support of change on the decision making in
context of an organisation. The barriers in the form of ineffective communication skills, poor
leadership and lack of knowledge is to be considered ideally before undertaking a choice. Under
such circumstances it is essential to take assistance of transformational approach to leadership so
that modification in the business are carried out in the ideal manner. The challenges can
effectively overcome with the transforming the business environment. The feeling, emotions and
circumstances of people are to be considered when forming crucial decision in an organisation.
TASK 4
P5 Different leadership methods to deal with changes
In company, superior responsibility is to direct employees to perform task effectively
and attain targets within span of time. This help them in enhancing sales and profitability of firm.
Leaders also analyse the performance of employees in order to identify weak areas so they can
provide training and development session accordingly. They also stimulate their team members
by giving them bonuses, incentives and so on. It will help in increasing the level of sales within
the workplace. TESCO leaders follow several kinds of leadership styles which are as given
below: Situational Leadership Style: Leader which follow this style make decisions and design
system to conduct business operations in according to market conditions. For this,
changes in team are made by leader of TESCO in respect to set business goals and
objectives. This tactic also helps staff members to provide products and services in
respect to requirements of people. This tactic also helps staff members to provide
products and services in respect to requirements of people. It helps leaders, managers,
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consultants, and trainers of TESCO to get best out of those who works with. For an
example : Stephen, a manager of a TESCO store, has 20 departmental managers and a
total of 300 employees working under him. Stephen prefers democratic approach for his
management style, where he consults any problems with the staffs and he often allows
the departmental managers to make operational decisions. This increases the staffs
creativity and motivation. But, in risky time he used to use more staff members from
other departments as per the requirements. Transactional approach of Leadership: This is another form of style which aid superior
to have knowledge about opportunities which are present in market. For this, leader of
TESCO first understand ups and downs in system to make alterations in business
activities accordingly. It lays down emphasis on transaction between leader and its
subordinates. Generally, it focuses on planning and execution. Thus, operations are
conducted effectively which benefit firm to sustain its position in market in respect to
competitors (Bergerson and Johnston, 2016). For an example : At the time of change in
taste of customers, it is required for manager of TESCO to make alterations as per the
requirements so that maximum benefits can be gained by the firm. Transformational approach of Leadership: This style define that leader motivate and
inspire subordinates to make them complete tasks and targets within defined time. In
TESCO, leader inform employees about business objectives and standards to make them
work in specified way. In this approach, idea turns into innovation to set objectives and
targets effectively. Leader lays emphasis on values, idea, morals and needs of the
employee to boost their motivation level. It works for changing existing work culture of
an organisation. During recession period, TESCO applied democratic approach
(transformational approach) to handle situation where they consults problem with staff
and allows departmental managers to take appropriate decision. For an example : In
crucial times like recession period, supervisors of TESCO Plc has given all the
information to there employees of whatever changes they are going to make so that
company may not go through a bad phase. Trait approaches: This is oldest concept which comprises attribute that leader require to
posses to keep staff members directed towards job. It is essential that leaders of TESCO
should have skills and personality to influence subordinates functioning. Along this, their
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intelligence and background also affect their duties and influencing power to make
employees perform tasks in effective manner. This approach helps leader to engage
employee towards their task without any affection of lack morale, values, idea etc. Leader
can utilize the information to evaluate their position in an organisation and to access how
their position can be made stronger in an organization. For an example : At the time of
recession, when many organisations fired half of employees but TESCO has kept there
belief in there staff members and helped them out in giving there best productivity which
impacted positively on performance level of staff.
Lewin change management model
(Source: Lewin change management model, 2018) Unfreeze: In this, TESCO prepares themselves for accepting changes if it is important
and by which organisation can earn higher level of profits. Change: In this stage, firm develop new strategies and find out all the issues which can
take place while implementing the change within the company.
 Freeze: At last, they implement the changes in the workplace in order to accomplish all
the business activities in an effective and efficient manner.
TESCO is using situational leadership style so that company can take initiative of
changes. In this, leaders will have more time, opportunities and control in order to apply changes
within workplace (Conover and Daiute, 2017). Situational leadership hypothesis, can provide
sustainability at market with flexibilities in various context which are linked to adopt
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Illustration 2: Lewin change management model

modifications. Also this leadership provides motivation to workers to accept the changes within
workplace.
CONCLUSION
As per above report it has been concluded that leadership styles are improves in order to
accept the changes in an effective way. In this, also analyse the various organisational changes
like as strategical, process, people and structure. Along with this in order to make modifications
they have to use proper theories like as system theory. Organisation also select the situational
leadership skills in order to take proper decisions according to the changes which take place
within the workplace as per new trends in market. Also conducted a SWOT and PESTEL
analysis in order to accomplish the changes in an appropriate manner.
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