Understanding and Leading Change Assignment - IKEA and ALDI
Added on 2020-10-22
22 Pages6954 Words61 Views
Business DevelopmentLeadership ManagementProfessional DevelopmentClassroom Development
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Understanding and Leadingchange
INTRODUCTION...........................................................................................................................4TASK 1............................................................................................................................................4P1 Comparison between two organization where there is influence of change on strategy.......4P2 Ways by which internal and external drivers of change affect leadership, team andindividual.....................................................................................................................................6P3 Measures taken to minimize negative impact of change on organization behaviour............7M1 Drivers of change and types of organizational change.........................................................8M2 Theories and models for organization to respond towards change......................................8D1 Recommendation...................................................................................................................8TASK 2............................................................................................................................................9P4 Barriers to change and its influence on decision making......................................................9M3 Force field analysis to assess the driving and resisting forces...........................................10D2 Use of force field analysis for meeting organizational objectives......................................10TASK 3..........................................................................................................................................10P5 Leadership approaches to deal with change.........................................................................10M4 Extent to which leadership approaches can deliver organizational change........................11D3 Effectiveness of leadership approaches and models of change management.....................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONChange is a continuous process which is inevitable in nature for making things differentas well as to cope up with current demand. However, corporate world are coming up withnumerous of new things at marketplace with distinct motives. For example; reformation incurrent transaction process due to the advancement of technology as well as for short procedure(Kotter, 2012). Therefore, project is going to highlight the need of changes at workplace anddrivers which enforce company to be attentive towards alteration procedure. Basically, reportwill compare the organizational strategy of IKEA and ALDI which are seen as top most retailassociation of UK for understanding the adoption of single change in two distinct ways.Furthermore, various barriers and approaches which are used by leaders for managing negativeimpacts of change are also outlined in the project. TASK 1P1 Comparison between two organization where there is influence of change on strategyOrganization’s strategy is a term which shows planning of a company to attain long termbenefits by considering necessary factors. For example; using work breakdown structure fordistributing roles and responsibilities between various staff members in order to minimize thework pressure from single member. ALDI is a most successful association in retail industry andhaving around 10000 stores across the international boundaries for maximizing their profit level(Doppelt, 2017). In fact, this company also believes in modification but there is a difference ofimplementation process. For example; ALDI takes immediate decision after getting aware aboutthe fluctuating market whereas IKEA might take some time to react and make judgement byanalysing competitor’s strategies also. Therefore, some of the examples which shows the impactof changes on IKEA and ALDI organizational strategies and operations are discussed as follows-ALDI IKEAOrganizational strategyExecutives of ALDI rarely giveinterviews as they don’t want todisclose much data about theirmethods. Basically, ALDI believes inrenting smaller stores, employsmaller number of people, payOn the other hand, IKEA believesthat globalization is current trend formaximum number of companies.However, most famous strategy ofthis organization is that; they believein designing and developing products
minimum amount of rent and energycosts. In fact, company believes inselling very limited amount of itemsin their single stores for cutting downthe unusual cost. As a result, Aldioffers incredibly lower prices ascompared with IKEA or any othercompetitors (JESSICA LEIGHMATTERN, 2017). As per the strategy of ALDIemployees are influenced bycompany policies which show intheir work. An organisationalstrategy is the sum up of all theactions of ALDI which intends toachieve long terms goals. When allthese actions are made together itsresult in framing strategic plan. Forexample; employees of anorganization also believes in storingminimum stock as well as focussedin acquiring maximum rate of return.As well as, when strategy is formedproperly it will help employees indoing their work in proper mannerbecause they known what they haveto achieve. Throughout the analysis, it has beenunderstood that significant rate ofchange is occurred at workplacebecause this company is followingas per the customer choices on thedaily basis. Along with this, offers ona low price but more attractive andreliable products. Mainly,“sustainability” has been at the rootof this firm throughout its existenceby using numerous of strategies andchanged according to the situation(Finniganand Stewart, 2010). Itshows that employees of anorganization also trying to cope upwith current changes by coming upwith creative product in order tosustain in new marketplace.According to Bohner and Arnold1996, determining the potentialoutcome of change as well asestimating what requirements needsto be modified for accomplishing achange. On the other hand, Pfleegerand Atlee always focussed onuncertainty associated with changes.It shows that moderate rate of changeis occurring in an organization. IKEAis using globalization organisationalstrategy which result severalmodifications related to policies andprocedure within respective company.Such changes sometimes givesnegative impact on the working ofemployees.
each or every change. Operational Retailers of Aldi are having variousoutlets where customers walking into purchase specific goods either bycash or card. However, retail supplychain consists of various activitiesand members who are involved inthis are aiming to reduce anddistribute rights product to the rightoutlets in a given time frame. Entireprocess is managed through IT withthe use of ERP (enterprise resourceplanning) software which allowsvisibility to track and observe all thestakeholder levels. Along with this,emergence of various competitorsalso enforces an organization tomodify their process for smoothfunctioning of an association. Hence,company is now preferring moderntechnology for converting their rawmaterials into finished goods such as;using lean production of minimizingthe amount of wastage in theiroperational process. Operationalstrategy is important to be frame inproper manner because employeesare the one who do day to dayoperations. On contrary to this, operationalprocess of IKEA is reallycommendable but still there are someloopholes in the procedure. Mostforemost issue which comes out isinventory storage of company due towhich warehousing cost is very muchhigh. Along with this, it createswastage of products also. Majorreason behind this operational issue isthat company is getting failed inreplacing the previous stock and stilldesign the new stock as per theconsumer demand. Thus, company isnow focussing in their operationalloopholes by using advancedtechnology for overcoming the issueof stock wastage. Furthermore,process of an association fluctuates asper the current changes in functioningof an association. For instance; theyare also using six sigma technologiesin their operational process forreducing the waste materials butsomehow failed in implementing it inproper manner which resulted inloophole in company operationalprocess.
Change impact analysis: This analysis was stated by Bohner and Arnold to identify and analyse the consequencesassociated with change. Along with it, this analysis helps in estimating the modifications whichare needed to be carried out to accomplish a change. Types of impact analysis techniques:Trace: In this aspect links between design element, specification and requirement arecaptured. These factors are analysed to evaluate the scope of initiating changes. In case of ALDI, company prefers to own and design small stores at multiple locations withlimited supplies. This will helps company in catering the needs of customers in accordance withtheir geographical needs and preference. As stocks will be limited and ordered according topreference of customers, wastage will be eliminated. IKEA prefers to produce and distributeaffordable products according to the requirements of customers. As products will be affordableand in matches the requirements of company, sales of company will increase. Outlets of IKEAare well themed and designed to attract large number of customers because of their ambience. Dependency: In this technique link between variable, modules, part and logic areanalysed to determine potential consequences. Managers in IKEA tries to analyseconsequences of changes by applying different logic and components such as creditpolicies, products availability, sales etc. Case of IKEA is different, managers in IKEAidentifies consequences of change by analysing raw material, budget availability andwarehouse costings.Experimental: In this analysis technique effect of change is determined with the help ofexpert design knowledge. Team discussion and individual judgements are used todetermine modification's consequences. To calculate the impact of change managementof ALDI prefer to arrange meetings on regular basis. In these meetings, discussions arecarried out regarding consequences of modifications and aspects which are needed tomodified. In case of IKEA, a research panel is constituted whenever a change is requiredto formulated. According to the findings of that committee, consequences due tomodifications are analysed. P2 Ways by which internal and external drivers of change affect leadership, team and individualInternal drivers are considered as those elements which are easily control by anorganization such as; customers, suppliers, shareholders and employees. On the other external
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