Leading Change and Organizational Transformation

This assignment requires students to demonstrate their understanding of leading organizational change. It involves analyzing various theoretical frameworks and practical applications presented in a set of academic resources on topics such as strategic change management, communication strategies, and cultivating a culture conducive to transformation. Students must synthesize these insights to understand how effective leaders navigate the complexities of change within organizations.

Understanding and Leading
Change

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 The impact of change in organisation strategies and operations......................................1
P2 Ways in which internal and external drivers has affected leadership, team and individual
behaviour................................................................................................................................4
P3 Measures taken to minimise negative impact of change in organisation..........................6
TASK 2............................................................................................................................................7
P 4 Different barriers of change and its influence in leadership decision-making.................7
TASK 3............................................................................................................................................9
P5 Different leadership approach in dealing with change......................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION:
Today's world is based upon creating and implementing change. Change management is a
crucial part of every business as it helps in growth and development. It provides a platform for
business to adopt changes to grab opportunities. Change can be done in process, procedure or
system. By implementing change employee efficiency is increases that leads to improvement in
product quality and various other things. This report will indicate that how change in an
organisation affects its overall strategies and operations. It shows that how internal (SWOT) and
external factors (PEST) enables business to implement change. In addition to this it analyses
measures that can be taken to minimise impacts of change (Stocker 2014). Moreover, it shows
different barriers faced by organisation while implementing change and its influence on
leadership style. At last various leadership approaches is evaluated to deal with change within
business.
For undertaking present assignment, organisations selected are Starbucks and costa
coffee. These organisations belong to retail sector and are operating their business all over the
world. The existence of companies on global level requires frequent change management to
identify and fulfil customers demand. Thus, this report will show impact of change in their
strategies and operations.
TASK 1
P 1 The impact of change in organisation strategies and operations
While implementing change an organisation has to face many difficult situations. This
creates a huge impact on business strategies and operations. It is also known as change
management as it refers to bringing change in procedures. In order to deal with change business
goals and objectives are modified so that customers needs can be fulfilled. Implementing change
in organisation can have a negative or positive impact on its culture. It entirely depends on how
leaders and employees react and adopt these changes. (Meredith, Rosell and Davis 2016) Also, it
is important to find out where change has occurred as it is of various types:-
Types of organisation change-
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 Structural- It is related to improve communication, duties , roles , etc. to ensure smooth
flow of business operations. It occurs within organisation to reduce its structural
complexity. In this policy are modified to provide ease in operations.
 Strategic- In this strategy are modified due to change in external factors. These factors
forces organisation to implement strategic changes. The goals and objectives are
modified to make product development or to improve its quality.
 Process- This change involves modifying process to improve business operations. It
brings creativity and innovation in way of working of employees. This leads to increase
in efficiency of working to achieve goals effectively. Generally, it helps in getting better
results and goals (Benton and Visbal 2018).
 People- It is done to bring new talent in the organisation so that innovative ideas can be
generated and shared. This creates change in working of old ones as new talent brings
different methods of doing tasks. It helps in encouraging innovation in business
operations.
In the given context of organisation it is important for Starbucks to bring change in its
loyalty program in order to retain their customers. Also, this changed helped in gaining
customers trust to maintain its target base. It was done by implementing change in customers
relationship management (CRM). There main focus was to increase customer satisfaction so that
it is useful for building better brand image in the market. Also, to gain larger market share it was
necessary to attract more customers through loyalty program. Furthermore, by taking feedback it
helped them to improve its product quality and services. It was essential for leader to implement
new policies. This change allowed Starbucks to modify their strategies and operations.
Employees were now focused on improving services and taking customer feedback. Leadership
style was changed and they adopted democratic style. The entire process and system of
Starbucks was changed (Mathu and et..al., 2016). Moreover, their operations were providing ease
to managers to directly deal with customers. There was major impact on employee behaviour as
they have to work according to modified operations. Also, strategies was developed to adopt
changes and implement them in work. Production system was renewed at global level. This
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reduced cost per unit and increased profits. Thus, an overall change was made to increase
customer satisfaction.
On other hand costa coffee due to increase in pollution costa coffee has to adopt new
methods of production. It was because they were using plastic in large amount which affected
environment. So his forced costa to reduce use of plastic and develop new method of production.
For this it was necessary to create new strategies that impacted business operations (Huy,
Sonenshein, and Bresman 2016). It was a technological change that occurred in costa coffee. It
enforced management to modify their existing process and implement new ones. Moreover, they
had to hire new people in order to help employees in adopting change. Thus, a complete new
strategy was developed by management which includes modifying high level systems to low
level. It also has to change their goals and objectives due to change occurred. Production,
process, designing products, etc. all these strategies was developed. It increased company
activities towards CSR and environment. They were able to create a new policy regarding use of
raw materials and product manufacturing. For this new machinery was implemented and
employees were hired. Hence, management had to design strategy on how to implement
machinery in production process. Along with this leaders had to search out new methods of
completing task. For this they had to change leadership style. This helped in improving work
method by implementing change. Now, workers adopted change to improve productivity and
completing task in effective way.
Hence, from the above examples it is concluded that implementing change allows an
organisation to modify their strategies and operations. It is because they can not work with old
system with respect to change. So change management creates new strategies in the company.
But for long run it is beneficial for firm to work with change as it helps in growth and
development of business (,Wellman,Jeffries, and Hagan 2016). Therefore, implementing change
impacts business in both negative and positive way.
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P2 Ways in which internal and external drivers has affected leadership, team and individual
behaviour
While implementing change internal and external factors plays an essential role. These
factors decide the complexity of change and its durability. They directly affects strategies and
decisions made to implement change. It is because they are related to organisational environment
and its operations which is impacted to a great extent. Further, external drivers are those which
can not be controlled by organisation. They exists outside the firm and affects overall business
decisions. It refers to PEST whose description is given below:-
Political- It means change in political situation of a country. Having any change in political
factors affects organisation laws and regulations. So changes has to be made in policies. As both
business operates globally it becomes difficult for them to understand political changes. Thus,
organisation has to implement and follow change in policies. These are related to rules and
regulations of doing business in the market. It included tax rate, quality standards, employment
laws, etc. This changes behaviour of workers as they resist to adopt changed policies (Snyder
2016).
Economic- It refers to change in economic condition of country. It occurs due to change in
market condition. It is generally related to political factor as it affects entire economy. A rise in
inflation, change in tariff rate, etc. are some examples of this. So rise in tariffs forces enterprise
to reduce its workers salary and wages that creates negative impact on them. Also, it impacts
product quality as they start putting less efforts (Beabout 2015). In this situation leaders has to
motivate employees to increase productivity. This leads to improvement in product quality and
business operations. Both Starbucks and costa coffee has to deal with these factors.
Social- This factor is related to culture of organisation and affects to a great extent. It involves
rise in income level, living standards of people in the society, etc. So firm has to improve its
product quality to fulfil demands of customer. Also, it becomes important to retain customers.
This enable business to implement change in its policies and operations. Leader are given clear
instructions to follow and implement these changes. This leads to create a new working
environment that affects employees behaviour.
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Technological- Technology plays an important role in brining change in organisation operations.
It helps in creating and developing process, procedures, systems, etc. to improve its product
quality. It is useful for Starbucks and costa coffee to grow and expand its business globally.
Therefore, they have to implement new techniques in their operations. New technology helps in
transforming activities and operations. Leaders try to find out new methods of completing task so
that it can followed by employees (Smits and Bowden 2015). Leaders role is make work easier
for workers so that change can be easily adopted by them. It affects its behaviour resulting in
reducing workers productivity and efficiency. Furthermore, leaders find it hard to implement and
follow new process.
Internal drivers are:-
Strengths- It indicates organisation uniqueness and brand image for which it is popular in the
market. By identifying strengths firm is able to develop strategies and take decisions. Starbucks
is able to dominate market with its high product quality but its CSR involvement had been
reduced (Hay 2017). So leader should focus on involving employee with CSR activities. While
costa coffee leader should implement new procedures for improving its product quality. It will
help in competing in the market.
Weakness- It shows firms weak areas from which its productivity is impacted. Change
management s implement to improve those areas and converts them in strengths. Starbucks is not
able to follow and adopt new policies properly. So leaders must encourage employees to adopt
and implement new policies. Costa coffee is not able to promote its products globally. Leaders
must develop new strategies to motivate employees to promote their products.
Opportunities- It refers to those areas where change can be implemented for growth of business.
It is difficult for firm to implement change as employees resist to this. Starbucks can implement
change to diversify its product range. Thus, leaders role is to create new roles and tasks for
workers to motivate them in achieving goals. On the other hand costa coffee leaders role is to
encourage workers to work in new ways (Brook 2016).
Threats- These factors reducing productivity and performance of business as well as workers. It
is because it restricts firm to implement changes. Leaders are enforced to implement new
methods of doing tasks that affects individual behaviour. It makes it difficult for employees to
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adopt these changes and work accordingly. In both firms leaders must try to deal with changes in
order to improve product quality. Thus, this internal factor affects leadership style that leads to
affect team working. It restricts employee to work independently by taking his own decisions.
Internal and external factors affects the leaders and managers to implement change within
organisation. It is because to remain survive in the market it is necessary to implement changes.
Decision making- In this leaders and mangers has to make changes in decisions. It is done to
provide flexibility to employees and creating a positive environment. It affects individual
behaviour as they find it difficult to work with new leaders.
Technological dimension- With invention of technology it becomes difficult for manager and
leader to implement in the organisation. New methods and processes are created that makes
difficult for employees to use and adopt them.
Economical- due to change in economical condition, company is not able to generate enough
profits. So they reduce employees wages, this decreases the morale of employee and leaders have
to motivate them to work effectively.
Opportunities- In order to grab the opportunity organisation develops new techniques and hire
new talent. This decreases old employee motivation and their productivity decreases. So
managers have to set different targets for them and leaders have to encourage them to achieve
those targets.
P3 Measures taken to minimise negative impact of change in organisation
As discussed above implementing change can affect organisation in positive or negative
way. In order to effectively implement change it is essential to minimise its negative impact on
organisation. If not controlled negative impact can lead to major consequences. It can reduce its
profits leading to build poor brand image. Sometimes, it becomes difficult for business to survive
in the market as they are not able to properly adopt change (Brook 2016). Thus, effective
measures must be taken to minimise impact and ensuring employees are able to adopt them
easily. It will be useful in smooth running of business operations. Therefore, there are certain
measures that can be taken to minimise negative impact of change. It is described below:-
Communication: Communication is one of the main tool that can be use by both the
organisation in respect to carry out business in an effective manner(Broadbent and Brady, 2013).
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If changes take place then Starbuck and Costa Coffee need to effectively communicated with
leaders and employees so that they can understand reason behind the changes and adopt it in
order to accomplish success(Wellman, Jeffries and Hagan, 2016). It lead to encourages
employees and create positive working environment within the firm. There are different modes
of communication which can be used by the firm that are face to face, Phone call, email etc.
With the use of this tool it become easy to manages the changes and communicated them in
entire organisation without any misunderstanding.
Involvement of team members: Involving team member is one of the effective way to manage
the organisation and all its activities (van der Voet, Kuipers and Groeneveld, 2015). Along with
this it also lead to reduce the negative impact among employees and team members. Starbuck
and Costa Coffee need to involve employees in decision making process at the time of
implementing the changes. It is one of the effective ways to satisfy employees and increase their
involvement in managing the change within the firm. There are ideas and opinion play
significant role and help in implementing the changes successfully (Wellman, Jeffries and
Hagan, 2016). If employees are involved than they feel like a part of an organisation and make
easier for them to work according to the changes and accomplish success.
Provide monitory benefit: There are some basic needs of an employees which is need to fulfil so
that they get motivated toward their work (Bulkeley and Tuts, 2013). Therefore providing reward
and monetary benefits to employees make them loyal toward the company and they actively
participate for managing the changes. Starbuck and Costa Coffee should focus on providing
rewards to its employees and leaders in order to motivate them and implement changes
successfully. This lead to motivate them and they work hard for the firm for accomplishing the
goal and objectives.
Feedback system: Feedback system is also one of the effective elements which help in reducing
the negative impact on employees (Organisational change and leadership styles 2012).
Starbuck and Costa Coffee can used it so that issues which employees are facing due to the
changes can be understood easily and work accordingly. Along with this it lead to make them
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feel that company understand them and their issues are listened by them. IT will support
analysing the changes and modification which help in alter the changes in respect to achieve
success.
This all are the effective way through which firm can manage the changes and encourages
employees to take participate in order to help them in implementing the changes effectively
(Keppel, Van Niel, Wardell‐Johnson, 2012). Hence it is one of the effective way through which
cited firm can gain attention and loyalty of employees. It make leader satisfied and they
encourage team member to work effectively and efficiently in order to accomplish the goals.
TASK 2
P4 Different barriers for change
Starbucks and Costa Coffee are one of the leading organisation and they provide unique
products and services to customers. They both give tough competition to each other and due to
this reason one firm business operation affect other entity. This lead to make tough for an
organisation to survive in competitive market. There are some barriers which lead to affect an
decision of both the firms which are as follows:
Employee resistant: At the time when changes take place within the firm employees resist
as because it leads to affect their comfort Zone. Due to this reason leaser face issues while
implementing new changes. If employees do not ready to work in change environment then it
leads to become barrier for the firm.
Lack of knowledge: Lack of knowledge related new changes lead to create barrier in
implementing changes within the firm. For instance, while implementing new technology if
employees and leader do not have enough knowledge related to use of new technology then it
will become tough for them to use effectively. Then it leads to become barrier for them while
implementing changes in Costa Coffee.
Interpersonal relationship: Interpersonal relation can be stated as one of the main barrier which
can affect decision making of Starbuck and Costa Coffee. In the organisation if company do not
make strong relationship with its employees then it became difficult for them to carry out
business activities successfully. This can influence the performance of both the firm and become
difficult for employees to accept changes in an effective manner. Along with this it also
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influence performance of the both the firm and they get fail to run business successfully.
However interpersonal relationship between employees and employer assist company to work
effectivlty. Through this way employees do no resist at the time of changes and take participant
in managing changes (Broto and Bulkeley, 2013). Along with this strong relationship lead to
increase trust and loyalty among employees both the firm and they work hard for the firm.
Communication gap: Due to communication gap employees of the both the organisation does not
reach all the information or they misunderstand the information due to which their works get
affected. Both the organisation Starbuck and Costa Coffee need to coordinate with the staff
member effectively and provide them all important information related to the changes.
Miscommunication leads to create confusion and increase the chances of getting affected. While
in such condition effective communication play important role in the success of an organisation.
If employees communicated effectively then it became easy for the firm to manage the changes
in an effective manner (Bulkeley and Tuts, 2013.). It leads to increase employee’s efficiency and
they make effective decision.
Political changes: At the time of managing changes and decision making political factors can
become barrier. Any changes made by government in their policies then it is become important
for the firm to make changes in their legislation for running business smoothly. If changes make
in tax policy and other regulations affect operation of the firm. Changes take place in tax then it
impact the planning and process of the firm. Along with this it also impact operational
performance of the company (Broto and Bulkeley, 2013). It lead to increase the cost and
employees get demotivated because of working in new environment. Therefore Starbuck and
Costa Coffee need to make effective decision and make people that they understand the necessity
of changes.
Economic barrier: Business activities of the firm get impacted if economic condition of the
nation is not good then leader would not be able to sound decision of changes. In such condition
income of the Starbuck and Costa Coffee get decreased. Due to this reason company face many
difficulty for the leader in order to make sound decision as due to lack of financial resources.
Leader need to compromise and it growth of the firm negatively impacted.
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This all are the barrier which company can face while managing the change. Therefore it is
important for the firm to understand then and try to overcome so that all the business operation
can be carried out successfully.
TASK 3
P5 Different leadership approaches to deal with changes
Leadership is known as the ability of an individual who can lead team members and accomplish
company goals. There are various roles and responsibilities of team member which help
company in growth and success. Their role is to guide employees and motivate them so that they
work effectively for the firm (Hrebiniak, 2013). There are different circumstance take place
within the firm and it is important for leader to manage them and work hard. For leader it is
important to changes their way of working according to the situation. For instance if any conflict
take place between team member then leader need to resolve it on time and assist people so that
they work each other without keeping any negative perception for each others. In some condition
leader need to become strict and take right decision so that employees work do not get impacted.
Hence leader play important role in respect to motivate employees and help company in
accomplishing goals and objectives. There are different leadership approached which can support
the firm and assist in managing the changes within the Starbuck and Costa Coffee.
Autocratic leadership style: It is a type of leadership style in which higher authority and manager
of the firm make all the decision without involving employees. Leader is strict and direct its team
member for accomplishing the goal (Wellman, Jeffries and Hagan, 2016). There is no
involvement of team member while making decision or no views and ideas are taken from them.
All the workers are not motivated and they are forces to follow all the rules and regulation made
by the firm. This style is adopted by Starbuck company leader for managing the team members.
This styles an organisation mainly adopt at the time when they do not want any casual attitude of
their employees and for carrying out professionalism. This lead to reduce the chances of
mistakes or errors while carrying out business operation. However this style sometimes do not
work and made difficult for the firm to run business but at time of managing changes higher
authorities can make decision quickly and force employees to accept it. In this style to implement
the change leader need to ensure that all its employees follow his/her instruction carefully so that
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changes can be implemented successfully. Along with this, properly guide employees regarding
new changes.
Democratic leadership style: In democratic leadership style leader of an organisation work with
its team member and involve them while making any decision. Along with this, it encourage
employees to work in a team and motivated them through providing rewards. View of employees
are listened by leader and they are appreciated for their best work. This support lead to bring
positive changes within the firm (Richards, 2015). Along with this employee feel motivated and
company can new ideas regarding implementing changes which help company in accomplishing
success. It is one of the effective style for the Starbuck company for manging all the business
activities.
However, there are various types of leadership style that can be adopted by the firm. It is
important for the firm to choose leadership style according to the nature of the firm. Further it is
essential for the leader to changes it way of leading people according to the leadership style so
that company do not face any type of issues while working. For this style of leadership, it is easy
to manage changes successfully. It is so because leader share all issues and involve team member
in decision making process which motivate them to adopt changes.
Transactional leadership style: It is one of the effective approach in which leader play significant
role in the organisation (Richards, 2015). In this leader delegate work to its employees according
to their capability and skills. Further it also provides reward to its employees on their best
performance and punished if they made mistakes. Therefore, performance of employees is
review and they are promoted so that they can work more effectively for their firm. Hence it is
one of the effective style which can be used by firm for managing its employees and all the
business activities in an effective manner.
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Conclusion
From the above report it is concluded that at the time implementing change an organisation
has to face many difficult situations. This creates a huge impact on business strategies and
operations. It is essential for company to manage the changes within the firm effectively and
efficiently so that success can be accomplished. While implementing change internal and
external factors plays an essential role. Communication is one of the main tools that can be use
by the organisation in respect to carry out business in an effective manner. If company
communicated effectively with the employees and develop their understanding regarding
changes so that they do not resist the changes. Further it is concluded that there are different
types of leadership style which can be adopted by the firm in order to carry out all the business
activities successfully. At the time of managing changes within the firm there are various barriers
which company need to overcome so that changes can be managed. Company should make
strong relationship with its employees so that they can work with loyalty for firm. Technology
plays an important role in brining change in organisation operations. It helps in creating and
developing process, procedures, systems, etc. to improve its product quality.
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