Understanding and Leading Change

This report discusses the impact of changes on organisations, drivers of change, and measures to minimize negative impacts. It also explores the ways in which drivers of change affect leadership, team, and individual behavior.

Understanding and
Leading change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Organisations where there have been impact of changes......................................................3
M1) Drivers of change including types of changes in organisation............................................5
TASK 2............................................................................................................................................5
P2) Ways in which drivers of change affect leadership, team and individual behaviour............5
P3) Measures to minimize negative impacts of change...............................................................7
M2) Theories and models which can help organisation in dealing with change.........................7
D1) Conclusions and recommendations with valid justifications................................................8
TASK 3............................................................................................................................................9
P4) Different barriers of change which affect decision-making of leaders.................................9
M3) Use of force field analysis....................................................................................................9
D2) Critical evaluation of use of force field analysis................................................................10
TASK 4..........................................................................................................................................11
P5) Leadership approaches to deal with change........................................................................11
M4) Examine the approaches of leadership by using models and theories...............................12
D3) Critical evaluation of leadership approaches......................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In order to grow and expand in global market it is important that leaders of business bring
changes in their strategies and operations and take risks so that changing customer needs can be
efficiently met and high profits can be earned. It is important to understand the changing market
conditions so that negative impact of these changes can be minimised and competitive advantage
can be gained. Change in organisational strategies can also help in increasing the motivation of
workers, decreasing operating cost of business, deal with rivalries etc. so that profits can be
maximised (Neumann, James and Vince, 2019). This report is based on two companies H&M
and Arcadia Group Ltd who are dealing in the same sectors i.e. retailing in branded clothing for
customers. H&M is a multinational clothing retail company which deals in highly fashionable
clothing for all ages customers. Arcadia is located in London, UK and owns high street clothing
retailers Burton, Dorothy Perkins, Topshop etc. In this report the drivers of change which leads
to changes in organisational strategy and operations will be discussed along with the discussion
of barriers to such changes. Further leadership approaches will also be discussed that will be
suitable to deal with changing business environment.
TASK 1
P1) Organisations where there have been impact of changes
Strategies of organisation are the set plans, actions and structures that are decided by
managers so that the company objectives are achieved in desired manner. These strategies are
formed by aligning them with company mission and vision so that long-term goals are achieved.
They also help in gaining a competitive edge in market so that large number of customers can be
attracted and sales of company can increase (Nelson-Brantley and et. al., 2018). Changing
business situations affect company strategies and they need to be changed so that business can
continue to survive in market. A comparison of impact of change is given below:
Basis Arcadia Group Ltd. H&M
Political
changes
Impact: The political situation of UK is
generally stable however due to Brexit
company might face issues in trading
freely with EU markets which means that
Impact: Brexit might affect company
business in UK as there will be trade
restrictions which can affect company's
market in EU. The price of its products

company sales might decrease along with
decrease in free flow of raw materials.
Strategic changes: Due to increase in
prices of company products it is
important that strategic changes are made
which can help it in increasing its sales.
Company can switch to economic pricing
from premium pricing so that the loss of
sales in EU can be managed by
increasing sales in UK and other regions.
Operational changes: Arcadia can start
selling its products online so that a large
number of customers can be reached and
sales of company can be increased
(Espedal, 2017).
might also increase which will directly
affect company sales and revenue.
Strategic changes: The company can
improve its supply chain management
so that the rise in price due to Brexit
can be managed by maintaining good
relations with its suppliers and
customers (Bohman, 2019).
Operational changes: The company
can improve its online sales by
improving customer satisfaction
through the usage of technological
developments, feedbacks etc.
Social
changes
Impact: The preference and taste of
customers keep on changing and also
their switching cost is very low which
means that they can switch to other
company products very easily which
affect company sales and increase
inventory cost due to unsold items.
Strategic changes: The company can
decrease its prices of cloths and increase
the quality of its products so that high
quality clothes can be made available to
customers at low costs which will
increase their satisfaction.
Operational change: The company must
include various offers, discounts, rewards
etc. so as to increase its sales. Also
Impact: The spending preference of
customers is increasing more on
education and tourism which has
affected their purchases of clothes and
decreased company sales.
Strategic changes: Through decreased
pricing of company products and
promotion of its online shopping the
company can increase its sales and deal
with decreased company revenue.
Operational change: Improved CRM,
offering discounts, easy payment
methods, return and refund policies,

through online sales the company can
deal with its inventory costs by selling
more items and giving offers on its sales
which will help in attracting a large
number of customers (Neumann, James
and Vince, 2019).
fast delivery etc. can help the company
in increasing its sales and improving its
relations with customers which will
help in increasing its sales (Drago-
Severson and Blum-DeStefano, 2018).
M1) Drivers of change including types of changes in organisation
There are both internal and external drivers of change which affect an organisation due to
which changes are made in company policies and strategies so that the negative impact of drivers
of change can be minimised. It helps in maintaining the sustainability of business in changing
business environment. Following are the drivers of change affecting Arcadia Group Ltd: Internal: These are the changes made by board of directors of company which affect the
way in which company is run like change in overall goals, purpose, strategy, structure etc.
of organisation.
 External: These are the external changes which occur from outside the company like new
competitors in market, technological innovations, governmental policies, customer
demands etc.
Types of organisational changes: Remedial changes: These changes are made by managers of Arcadia when they identify
a need to improve the company's performance or deal with financial distress. In remedial
changes correction in strategies or policies, way of doing work etc. are made so that
improvements which will help in achieving fruitful results for company.
 Transformational changes: These are radical changes made by company in their
business model, company structure, culture and management so that effective response
can be made towards the changing external environment. These changes help Arcadia to
survive in the changing market environment and deal effectively with changing customer
taste and preferences (Al Barwani, Flores and Imig, 2018).

TASK 2
P2) Ways in which drivers of change affect leadership, team and individual behaviour
An organisation is affected by both internal and external drivers of change and it is
important that the company bring change in its strategies and policies so that the negative impact
of these changes can be minimised and company continue to exist profitably in the market.
Internal drivers of change affect organisation's structure which impacts the way in which
company is run while external drivers of change bring changes in company strategies and
policies so that changing external environment can be dealt with in an efficient manner.
Following are the impact of changes on behaviour of individuals, teams and leadership in
Arcadia Group Ltd:
Internal drivers of change: Resources: The resources of company are assets which are used by it to perform its basic
operations and functions like human resources, capital resources, monetary resources,
raw materials etc. Change in any of these resources affect the behaviour of people
involved in company like if there is proper availability of funds then employees will be
motivated to perform their work in an efficient manner. Also leadership style of leaders
will be affected and they will decide as to how the work needs to be delegated and
progressed so that it can be completed on time. Effective teams will be formed in
company so that funds are utilised efficiently so as to complete work on time (Alavi and
Gill, 2017).
 Capabilities: If the workforce of company do not utilise their capabilities and potential to
their full extent then changes in company strategies and policies are made so that
company objectives are achieved in a desired manner. Also when there is a requirement
of workforce in company new recruitments are made so that overall performance of
company can be enhanced. This affects behaviour of individual as they have to adapt to
new company policies, leadership will be affected as they will follow different styles so
that the capabilities of workforce can be efficiently utilised.
External drivers of change: Government regulations: Changes made in government policies, rules and regulations
can affect the company and lead to changes in its structure, culture etc. For example if
government increases tax rates on raw materials then there will be changes in company

strategies so that increased prices does not affect its sales. Individual behaviour will be
impacted as change will increase stress of work for employees, teams will have to work
in an effective manner so that sales can be increased. Leadership will also be affected so
that teams can be directed to increase their work capacity (Byers, 2017).
 Customers: The taste and preference of customers keep on changing with the increased
technological advancements which means that companies have to bring innovations in
their products and services so that customer needs and wants can be satisfied. This affects
individual behaviour as they have to work more efficiently to satisfy customers,
leadership style will be changed to democratic so that innovation in can be brought.
Teams will behave in a responsible manner so that new and innovative ideas can be
brought which will help in increasing customer satisfaction.
P3) Measures to minimize negative impacts of change
There are different types of attributes and behaviour of employees when implementation
of changes occur in company therefore it is important to minimize the negative impact of
changes on employees so that their motivation and efficiency of work do not get affected. This
also help company in raising their productivity which help it in gaining a competitive edge in
market and achieve its goals in an efficient manner. Employee engagement: The participation and involvement of employees in activities of
organisation such as decision-making process can help in reducing negative impact of
change on employees. This will lead for organisation to implement changes in an
appropriate manner. As the value of employees views assist them to engage in various
organisational activities. This also motivate them to adapt changes effectively. With this,
the employees can use their skills properly which help organisation to decrease the
impact of changes (Cacciolatti and Lee, 2016).
 Effective communication: The Communication plays an important role between
organisation and employees. As it help in delivering appropriate information to
employees that will help them to interpret those information in their work settings. It also
develops understanding of change that are recently implemented in an organisation. It
enhance organisation to motivate to remain competitive in market.

M2) Theories and models which can help organisation in dealing with change
The Burke Litwin model determines various drivers of change and rank them based on
their importance which affect company strategy, mission, leadership, organisational culture etc.
This model was developed in 1960 by George H. Litwin and W. Warner Burke which can help
leaders to identify drivers of change on time so that appropriate changes can be made in
company which help in minimising their negative impact. Through this model leaders can assess
all the organisational and environmental factors so that required changes can be made and they
can be implemented successfully in the company. According to this model external factors are
the major drivers of change which include change in market conditions, legislation, competition
and economy. Thus it is important that mangers of company continually scan the environment
and effectively implement changes so that behaviour of teams and individuals can be monitored
and controlled (Dawson and Andriopoulos, 2014).
D1) Conclusions and recommendations with valid justifications
The analysis of change impact was formed by Arnold and Bohner. This help in
identifying impact and consequences of changes that are newly developed with in organisation
along with identification of need of new changes. With this, risk can be analysed by identifying
impact of change resources and schedules. It has been analysed from above discussion is that
there are internal and external drivers are occur which impact company. From this, company can
bring changes by maintaining sustainability of changes with company can be occur. The internal
factors can be initiated and controlled by managers while the external factors can bring up
changes with in strategies of company. The change can be effectively implemented with in
internal system firm of organisation. As the technical advancement help Arcadia Group Ltd. This
help organisation in attaining objective of change in the environment of organisation. There are
some recommendations which are need to be necessary which influence change so that it can be
done effectively (Doppelt, 2017).
 The appropriate and effective communication must be implemented with in organisations
so that all data and information can easily conveyed to them. This will lead to them about
change and the process of executing changes.
 The involvement of employees must be necessary in decision-making of organisation that
can help them adopt changes by using their own skills.

 The leaders and managers of company are necessary to manage and monitor employees.
This help them to change perspective towards change of employees which also help in
raising performance of them with in business of organisation.
 There some factors on which change are depends so it is necessary to analyse those
changes as it assist the organisation in implementing changes in environment of
organisation.
TASK 3
P4) Different barriers of change which affect decision-making of leaders
While implementation of change in organisation leaders face various barriers which
affect their decision-making so that changes can be implemented in an efficient manner. These
barriers need to be removed so that change can be accepted by all the employees of company and
company can sustain in changing market conditions. Following are the barriers of change which
are faced during implementation of change: Unknown current situation: When the current position of company in market is
unknown then it becomes difficult to implement change effectively. It is important that
managers of Arcadia Group Ltd assess and understand the current state of company in
market which will help in understanding the impact of change on company. This affect
decision-making of leaders as they first analyse company's current state before
implementing change (Lawrence, 2015). Lack of effective communication: If there is no effective communication strategy in
company then it creates a barrier in change implementation. Thus it is important that
leaders at Arcadia establish effective communication so that all the employees can be
informed about change which will help them in adapting to change efficiently. Complexity: If the company structure is complex then it becomes difficult to implement
change in desired manner which means that the leaders of Arcadia needs to simply its
processes, products and systems. It is important that a diligent, high-quality and highly
effective project and change management approach is adopted so that change can be
efficiently implemented in company.
 Less employee engagement: When there is lack of employee engagement it becomes
difficult to implement change as employees are essential resources of company who must

be involved so that their resistance against change can be minimised. Democratic
leadership style can be followed in Arcadia so that employee engagement can be
increased and change can be implemented in company.
M3) Use of force field analysis
The force field analysis model was given by Kurt Lewin in 1951 which can be used in
decision-making while implementation of change in an organisation. This gives a comprehensive
overview of the driving and restraining forces which work on an organisation so that changes can
be brought when the equilibrium of these forces get disturbed. The managers of Arcadia Ltd
needs to continually analyse these factors which will help in implementation of change in an
effective manner. When the driving forces of change becomes strong or the restraining forces
become weak then changes occur in company.
Illustration 1: Force Field Analysis
Source: Force Field Analysis .2020

D2) Critical evaluation of use of force field analysis
Force field analysis is a change management technique which help in analysing various
forces which work on company and help in determining when change can be brought in
company. Change is brought in company when the equilibrium between the driving forces and
restraining forces gets disturbed. This tool help the managers of company in systematically
analysing the factors which are found in complex problems so that decisions can be made
regarding implementation of change. This tool must be used in companies so that all the driving
and restraining forces can be analysed so that change can be implemented efficiently which can
help company in achieving its goals and objectives (Maccoby, 2015).
TASK 4
P5) Leadership approaches to deal with change
Leadership refers to the ability of an individual to influence the work of others and
motivate them to work in a particular direction so that company objectives can be achieved. It is
important that while implementing change in company appropriate leadership approach is
adopted by leaders so that work efficiency and performance of employees can be improved and
company goals are achieved. Following are the different leadership approaches which can be
followed in Arcadia Group Ltd: Autocratic leadership: In this approach leaders of company control all the decisions and
directs employees to work in a defined manner. In this approach employees are not
involved in decision-making which means they have to work as per the instructions
which are given to them by leaders. This approach can be adopted in company when a
complex change is introduced so that employees can be directed to work in a particular
manner and confusion can be minimised (Sammut‐Bonnici and Galea, 2015). Democratic leadership: In this approach a democratic style is adopted in which views
and opinions of all employees are considered while making decision. Through this
approach employee engagement can be increased and the motivation of workers can be
enhanced which help in improving their performance. This approach is adopted by
leaders when a change is implemented that directly affects the work of employees and
requires the involvement of employees.

 Situational leadership: This approach is adopted by leaders in certain situations so that
team members can be lead in an efficient manner depending on situation. This approach
can be used in Arcadia when changes are implemented so as to deal with immediate
situations which will help in leading the employees in a desired manner. This approach
can help in dealing with certain situations in an efficient manner and achieve short term
goals in an effectively (Scott, 2018).
From these approaches it can be said that democratic leadership is the best approach
which can be adopted in company so that employees can be involved while implementation of
change. This approach help in making efficient decisions by considering the ideas and opinions
of all the employees. This approach help in motivating employees which is also essential in
adapting to change easily and quickly and also minimising their resistance to change.
M4) Examine the approaches of leadership by using models and theories
Lewin's change management model can be used by Arcadia Group Ltd so as to
implement changes in company in an efficient manner. As per this model there are three stages of
implementation of change which are unfreezing, change and refreezing. Unfreezing means
initiating the implementaion of change process which includes boosting and encouraging the
employees top accept changes in company. Change is the process of implementation of change
in company where different leadership styles are followed and change is communicated to all te
members of company. Refreezing is the stage after successful implementation of change in
company and everyone adapts to change in a positive manner. The application of model is time
consuming as it involves various stages for implementing change in an efficient manner
(Neumann, James and Vince, 2019).
D3) Critical evaluation of leadership approaches
It is analysed that democratic leadership style must be followed in companies during the
implementation of change in company which can help in involving employees in decision-
making and making which encourage them to accept change easily. This also improved
integration of employees ion change management process which is important so that beneficial
results can be drawn from change which can help in dealing with adverse environmental
conditions.

CONCLUSION
From the above report it can be concluded that change is an important part of an
organisation to remain competitive in the market and deal wit changing business conditions in an
efficient manner. It is important that strategic and operational changes are made in company as
per the impact of change on company. Also there are various various internal and external drivers
of change which needs to be analysed so that company can survive in the market. Various
theories and models can help in efficient implementation of change so that employees can easily
adapt to change and help the company in achieving its objectives.

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