Table of Contents INTRODUCTION...........................................................................................................................1 TASK1.............................................................................................................................................1 P1. Impact of change on different organisations....................................................................1 P2. Internal and external drivers of change............................................................................4 P.3 Steps taken to minimize the negative impact of change on organisation behaviour.......7 TASK 2..........................................................................................................................................10 P.4 Barriers related to changes ways by which leadership decision-making get influence in the organisation..........................................................................................................................10 TASK 3..........................................................................................................................................12 P.5 Leadership approaches deal with changes in the organisation.......................................12 Covered in PPT.....................................................................................................................12 CONCLUSION.............................................................................................................................12 REFERNCES.................................................................................................................................13
INTRODUCTION Change is inescapable in present existence. Understanding and leading change prepares associates to overcome the obstacles that arises with initiating and implementing change. The main motive of leading and understanding change is to prepare the individual to anticipate, plan and deliver change. For understanding leading change, organisation undertaken in this report is British Bakeries which is a medium sized organisation in Britain and deals in bakery products like breads, cakes, etc. Assessment of impact of change on organisations strategy and operations is to be done. Further, evaluation of internal and external drivers of change that affect individual, leadership and teams. This report also explains the prevention measures to minimise the negative impact of change on organisational behaviour. Different barrier for changes are determined in detail and their influence on leadership decision making will be elucidated. And later part of the report explains the different leadership approachesto deal with change and application of different models and frameworks are explained. TASK1 P1. Impact of change on different organisations. Theconceptoforganisationchangecomesfromtheexistenceandsurroundingsofthe organisations. It is fundamentally are the order of circumstances which assist the process of development in organisation. They can be changes in mission, vision, changes in strategies, operations,technologies,etc.Inpresentdynamicalenvironment,organisationalchangeis obligatoryforeveryorganisationtogoforwardandflourishineverchangingbusiness organization. For understanding impact of change on different organisation, let us take two medium sized organisations namely, The British Bakeries and Lisboa Patisserie of UK (Doz, Y. L., 2017). They both deals in bakery products like breads, cakes, muffins, cookies, etc. The British Bakeries will adopt the changes to grow and stay in the market. They will make sugar free products for keeping in mind customers as diabetes is increasing and obesity also. So, for this reason they will increase their variants of sugar free cakes, muffins, etc. At the same time they will produce gluten free products as many people are suffering from wheat allergy so for this they will produce products like gluten free breads, cookies, etc. With the impact of changes in organisations strategies, will require changes in their operation and alteration will be needed in the structure of organisation for the daily routines of 1
theemployees.Newstrategieswillhelptheorganisationinmakingstrategicdecisions effectively and it will be helpful in minimising the cost for performing various functions (Grunig, J. E., 2013). Operational changes are concerned with the changes in vision and aims of the organisations which will always be clear to the people so that they work in accordance with it to achieve goals and objectives smoothly and efficiently. Impact of operational and strategic changes in organisation are discussed below :- BasisThe British BakeriesLisboa Patisserie Strategy ChangesStrategiesusedbythis organisation so that they can stay in the fast growing market and adopt the change in the organisationforthebenefit andwellbeingofthe customers are discussed:- Promotional strategies:They will use various strategies for promoting their products and offering to the end customers and they can be:- Advertisements in newspapers, posters, televisions, hoardings, which will contain about the newproductsandtheir benefitsforcustomerswho have health problems. They will also use strategies likeproductgiveawayin whichcompanywillgive samplesoftheirproductsto the potential customers. Pricingstrategies:As Strategiesaffectthelineof businessandchangesin strategieswillhelpstagnant company to reclaim its former growth rate. Strategies used by thisorganisationisdifferent from The British Bakeries for adopting changes and making it necessity. Promotional strategies:They willusevariouspromotional strategiesformakingpeople aware about their products and offerings and to increase sales. They will use sales promotions strategies which can be done in variousformslikeinstore promotions,displays, incentives like 50 % off or buy 1 get 1, etc. Direct marketing will also help organisation to directly target the customers in their homes or offices such as ordering a 2
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customers are price centric, so thisorganisationwilluse different pricing strategies to tap end customer and they are discussed below :- Price bundling will be used by organisation as this will help them to sell multiple products foralowerratetothe customer compared to that if thoseproductsaresold individually. Psychology pricing will help organisationtoencourage customerstorespondon emotionallevelsratherthen practical.Forinstance organisation will set price at £99 rather then£100. product,clippingacoupon, etc. Pricing strategies:Price plays a very important role in selling productswiththehuge competitionofthesimilar productsandofferings.This organisation will use different pricing strategies compared to The British Bakeries and they are discussed below :- Theywillusepenetration pricing strategies as this will attractcustomerstobuy product at lower prices. Economy pricing will also help organisationtominimisethe costofmarketingand production in order to maintain the price of products low and this will attract customers to buy their offerings Operational changesIn this, organisation will focus on target customers needs and demands. They will hire expert chefs for baking dishes which arebeneficialallthepeople including those suffering from diabetes and gluten diseases. In this, organisation will focus ontheirproductionand manufacturingdepartment. Theywillconductthorough researchwiththehelpof researchanddevelopment departmentforusing ingredientswhichwillnot harm customers. 3
ApproachesFor dealing with the changes in the organisation, they will motivatetheiremployeesto workeffectivelyand efficientlyforachievingthe change objectives. This organisation will provide guidance and support to their employeesthroughproper training so that they can deal with change smoothly. P2. Internal and external drivers of change. Changes affects every individual, business or industry in their day to day functioning. If changes are harmful or difficult in nature then people will deny to accept change in organisation. Changes are any modification that happen in entire work environment(Hahn, R., 2013).There are various factorsof internal and external environment or drivers that affect organisational functioning. Any changes in these factors creates necessitates changes in an organisations. The British Bakery depends upon various mutually beneficial factors which influences its day to day running , strategic decisions and future actions plans for facing the competitive challenges with success.These are the things, events or happenings that may occur in positive or negative way. The British Bakery will develop itself such that the people, organisation and team will adapt the changes with efficient learning and understanding the importance of pervasive environment. The combination of internal and external factors that influence the decisions and policies an organisation makes to stay competitive is known as drivers of change. Further more, drivers of changes are explained below :- Internal drivers Internal drivers to changes deals with the internal environment of the organisation. It consist of events, factors, people, system, structure and atmosphere inside the organisation which is generally controllable by the company(Hair, J. F. And et. al., 2012). Internal drivers of The British Bakeries influences organisational activities, decisions, attitude and employee behaviour, changes in leadership styles, culture, etc. Factors of internal drivers to change are discussed below :- Internal DriversMeaning InnovationThis will led The British Bakeries to produce innovativevariationsinitsproductsand 4
offerings.Itwillenhanceitsqualityand provide different flavours with unique taste and health conscious bakery items. CultureThecultureisthesystematizedbodyof individual and organisation which focusses on continuous changes and assures delivery of its products with superior quality at affordable prices. Financial managementFinance is the crucial factor in organisation. This will help The British Bakeries to assure that adequate funds are available for meeting day to day expenses and proper production and manufacturing is not affected. Employee psychological stateThelevelofassuranceandpotentialofa personorgroupisveryessentialinan organisation.For this purpose, The British Bakeries will introduce activities which will motivate the people to work will full eal and confidence. External drivers External drivers to change deals with external environment of the organisation. It consist of political, economic, social, technological, environmental, legal environment which are outside the control of the organisation(Hill and et. al., 2014). The British Bakeries will align themselves such that they can deal with external factors as they are not controllable. Factors of external drivers to change are discussed below :- External driversMeaning Political factorsPoliticalfactorshavestronginfluenceon organisation. The British Bakeries are affected by political factors as government have great 5
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interference in the functioning of organisation likechangesinpolicies,regulations, taxation ,etc. Technological factorsAdvancementandinnovationshaveforced organisations to adopt new ways of working. The British Bakeries will use the updated and advancedmachinesformakingbakery products which will reduce the burden from labour and capital intensive techniques will be followed. Economic factorsEconomicenvironmentaffectthefinancial sustainabilityandprofitabilityofthe organisation. The British Bakeries will face economic issues during the period of inflation and deflation, changes in interest rates, etc. Legal factorsThese factors deals with governmental laws and issues. The British Bakeries will follow the legalrulesandregulationsregardingfood safety and will ensure safety and hygiene in theiritems.Thismayincludethe manufacturingandexpirydatesofthe products. Impact of internal and external drivers on individual, team and organisations DriversIndividualTeamLeadership InternalInternalfactorswill helpsindividualto analysetheirstrength whichwillbe beneficial to them for Teamisagroupof peoplewhowork together to accomplish commonobjective (Hill,T.,2017). Leader is a person who guides the individuals and team to work in accordancewiththe organisationalgoals 6
workinginthe organisationandthis will also help them in analysingtheir weakness so that they can overcome them. Internaldriverswill help team to work in harmony and maintain friendlyenvironment within an organisation. andobjectives. Internaldriverswill helpleaderofThe BritishBakeriesto follow such leadership styleswhichwill motivateemployees, provideseffective communication channel,provides training, etc. ExternalExternaldriverswill helpindividualto analysethethreat which can harm them andgrabthe opportunitieswhich canimprovetheir performance. This will enhancethemto improvetheirgrowth and productivity in the business world. External drivers have a great impact on team as it becomes difficult to manage team during the force from external sources.TheBritish Bakeries will develop properteamfor researchand development, they will assistfinancial manager to deal with inflation and deflation, etc. As external forces are uncontrollable,leader will adapt such styles that will help them to immediately deal with the impact of external sources. Leader of The BritishBakerieswill followautocratic leadership style to deal with external effect as itneedsquickand immediateresponse and decisions are to be madeassoonas possible. 7
P.3 Steps taken to minimize the negative impact of change on organisation behaviour. Its very important for the organisation to minimize the negative upon the organisation behaviour. As changes are essential to be implementedby the organisation by which the productivity will increase. Changes are required to implemented and very congresses comes with its negative impact(Hitt, and et. al., 2012). To minimize the impact there are the measures steps which British bakeries leader can take to implement the changes successfully. Steps are: Employee engagement:-To minimize the impact of change upon the organisation behaviour, its very important for leader to make their employee engage in the process by which they feel involve. The leader should also take their opinion as wellto make them comfortable with the changes and it also easy for the leader to implement the changes. The British bakeries leader should take views, idea and involve them in decision-making related to the changes. If employees are properly engage in the changes process then implementation will done effectively in the organisation. Performance appraisal:-The performance appraisal always boost the moral of its employees as if people are doing the company is requires to appraise them. The appraisal can in from of monetary as well as non monetary. Monetary appraisal boost the more involve and promotions are the biggest appraisal which motives & influence the employees(Hitt, M. and DuaneIreland,R.,2017).IfBritishbakeriesappraisetheiremployeetimelythenthe organisation leaders are not going to face any problem while implementing changes. By providing cash appraisal, planning trip for them, promotions etc. are the performance appraisal for them Training and development:- As,employees have fear from technologies as well as from the changes which are about to be implemented in the organisation. Its very essential for British bakeries to use advance techniques while introducing the sugar free and wheat free bakery products. So, the leader should provide the appropriate training to its employee which reduce the impact of changes in the organisation behaviour(Keupp, M.M., Palmié, M. and Gassmann, O., 2012). Organisation behaviour is effected when individual behaviour is negative. So, it is required to provide them a appropriate as well efficient training & development to its employee. Advance notice:-Its very essentialfor the organisation to provide accurate notice to their employees before implementing changes in the organisation. Its employees right to have the prior notice which increase the respect among the management, manger and employees. It will 8
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provide some time to the employees to accept and prepare themselves for the changes taken by the company in their working.Through this they will be able to put their problems in front of management so that they can be addressed properly. After implementation employees are not going to face any problem. The British bakeries used the PDCA model to reduce the negative impact upon the organisational behaviour. The PDCA model is consist of the do-to list. P is for planning, D is for do, C is for check and A is for the act. Planning:-To implement the changes and minimize negative upon the organisational behaviouritsleaderrolesofBritishbakerytomaketheeffectiveplanrelatedtothe implementation of the plan in the organisation.If the panning or mapping is accurate then organisation behaviour can't be impacted. Do:-In this implementation of a situation is started as according to the leader. The work or changes are also done according to the leader(Meyer and et. al., 2017Priem and et. al., 2012). In this changes are actually tested that mapping is correct or not. The leader of Brutish bakeries will make the small study upon the planning of the changes. Check:-The leader of British bakery examine the study as work is going according to the plan or not. The review of the test is essential to be done timely, the leader should analyse the different problems which are associated with a change and the need to identifies the learning as well. Act:-The majors steps need to be taken after analysing the testing. Its important to make the appropriate changes after the implementation. So, that after completely the change company not going to face any problem. 9
TASK 2 P.4 Barriers related to changes ways by which leadership decision-making get influence in the organisation. To implement the changes in the organisation is essential but very changes comes up with barrier in the organisation. To successfully implement the changes in the organisation its very important for organisation to determines those barriers. These barriers make the changes more accurate as the leader implement the changes more effectively. Changes are not easy to implement in the organisation, if leader wants to change the product or introduce something then its curial for the companies to take measure steps in respective to barriers. The barriers are- Lack of employee involvement:-The employees are always have of change as they want to do the work in same working environment only(Vogel, R. and Güttel, W.H., 2013). The employees are never in the favour to accept the changes. Its a biggest hurdle for the company whileimplementingchangesintheorganisation.WhenBritishbakeriesgoforthe implementation of changes while introducing the sugar-free & wheat free bakery products. As, the employees are not ready to accept those as the production procedure, technology use etc. 10 Illustr ation1: PDCA Cycle Source 1: (PDCA model. 2019)
everything change. Before implementing any changes its organisation responsibility to make employees familiar with the technology as employees have the basic fear from the new technology not the changes. So, organisation have to provide the appropriate training to its employee by which implementation become easy for them. Its a barrier which effect the implementation internally. The employees are the internal people by which changes get effected. The leaders decision-making also get effected by this factor. To make the changes successful its organisation responsibility to make them involve in thechange process rather then neglecting them. Make them involve in discussion, listen their ideas & opinion etc. after that barrier don't effect the organisation. Government rules and polices:-Its a external factor by which organisation faced difficulty in implementing the changes. If government changed its policies in between the changes implementation then its a biggest external barrier for the company. While implement the changes the British bakeries should always consider the laws which are made for the food & safety. The standards have to be followed by them to make the changes implementation successful.So, its became very curial for the organisation to always focus upon the policies which are formed related to the changes. This factor also influence thedecision making of the leader if policies change they also have to change their leadership style as well. The force field model:- The force field model is used to determine the forces which are against the changes and forces are in favour of changes. Favourable forces powerfully accept the changes the due to these factors only implementation is take place in the organisation. The unfavourable forces are factor due to which company is going to face the problem and faced difficulty in implementing the changes. Forces are in favour of changes: These forces wants the change should be implemented in the market to increase the brand value. The favourable forces are: Customer wants the changes:-The customer also wants the new & modified products. The trend changes customer demand and preferences also changes. So, according to the time its organisation responsibility to make the required changes which are essential to be implemented. Improved production speed:-This factor is in favour because if improved technology is used by them than the speed of the production will automatically improves by which the 11
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productivity of the new products increase as well as the sales. The improved the production the higher the sale of the product. Reduce the training time:-This factor also want changes should be implemented as the time of training will be reduced by them and the company is not going to face any hurdle while implementing the changes in the organisation. Forces are against in changes: There are the some factors which are against the implementation of changes in the organisation. Its very important for the company to make the changes according to the customer concern but then too some factors are in against:- Loss of staff overtime:-To implement the changes successfully its very important for the organisation to make employees aware about the changes. At the time of implementation the employees have to do the overtimes which is drawback for the company as the employees start leaving the organisation. After which the decision-making of a leader also get effected. Cost:-The cost of production will increase if British bakeries is introducing the sugar free product as well as the wheat free product. This factor are always in the against of the changes which are about to be implemented. Decision-making also get affected if the cost is required to increase in between the implementation. Every time the changes implemented the cost will automatically increase. 12
TASK 3 P.5 Leadership approaches deal with changes in the organisation. 13
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CONCLUSION From the above file it has been concluded that understanding and leading change is very essential. Accepting changes is important in the business world because it improves performance 18
of the organisations, minimises and controls cost, enhance innovation, etc. Further this helps not only in organisational development but also improves personal development and growth. This report gives clear picture of impact of changes in organisations strategies and operations by comparing two medium sized organisations. It also explains how internal and external drivers will affect individual, team and leadership styles. Further it defines the different ways to minimisetonegativeimpactofchangeonorganisationsbehaviour.Italsoexplainsthe importance of leadership decisions and how they are influenced by barriers for change. Last part of the report determines the various approaches of leadership dealing with change. 19
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