Understanding & Leading Change

This document discusses the impact of changes on organization strategy and operations, and how internal and external drivers affect leadership, team, and individual behavior. It also evaluates measures to minimize negative impact of changes. The subject is Understanding & Leading Change, and the document type is an essay.

Understanding & leading change.

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 & M1 Compare impact of changes on organization strategy and operations........................3
LO 2.................................................................................................................................................6
P2 & M2 Internal and external drivers changes affect leadership, team and individual
behaviour.....................................................................................................................................6
P3 Evaluate measures of taken to minimize negative impact of changes...................................8
D1..............................................................................................................................................11
LO 3...............................................................................................................................................11
P4 & M3 Different barriers to changes and determine influences of leadership decision-
making.......................................................................................................................................11
LO 4...............................................................................................................................................13
P5, M4 & D3 Different leadership approaches to dealing with change in organization...........13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Understanding and leading change is prepares participants to meet the problems and
issues which come with initiating and implementing various changes. Leading change is the
collective endeavour accomplished within the context of human relationship. This is a team
activity which is allies become coalitions, becoming high performance and high performing team
work together to lead change. In respect of analysis changes in organization will select “Coca
cola” company which is American multinational corporation and manufacturer, retailer and
marketer company. The present report will compare and contrast the different changes which are
impact of organization strategy and evaluate the ways in which internal and external drivers of
change affect leadership, team and individual behaviour. Here will also explain the different
barriers to changes and determine influence leadership decision-making in organization. At the
end of report also apply the different leadership approaches to dealing with change in range of
organizational contexts.
LO 1
P1 & M1 Compare impact of changes on organization strategy and operations.
Businesses are performing their operations and function with the motive of earning
profits and growth of business within the marketplace. This is very important and effective for
proper and effective management of business. Here are some changes which are comes into
business and make impact on organization strategy and operations like innovation, technology
changes, taxation policy and others impact the performance of company and forces to implement
those changes in company (Ayers and Odegaard, 2017). For analysing those impact within the
organization here is select Coca cola company and compare with same sector organization i.e.
Pepsi co for better understanding the impact of change within the organization. Comparison of
both companies are help to understand various strategy and techniques to handle changes ion
better manner. This will creates more effectiveness for business.
Coca cola company is American multinational company which is manufacturer and
marketer of non-alcoholic beverages. The company is produce various number of soft drinks to
attract customers by targeting youngster. On the other side, Pepsi co is also American
multinational food company. Company is manufacturer, distributor and marketer of grain based
snacks foods and beverages and others product. In present, there are various changes which are
impact to strategy and operations of both company. In that companies need to understand those

changes and their impact of businesses either negative and positive factor. So in order to be the
best with their competitors it is very essential for company to introduce and implement changes
to maintain growth and success of its company. In order to analysis the impact of changes,
organizations Coca cola and Pepsi co has considered and evaluate of both companies are
explained below:
Changes Coca cola Pepsi co.
Organization
al structural
changes
Coca Cola is conducting their business
within the divisional organizational
structure. In which company is facing
problems to communicate information
to others. For that management is
decided change divisional structure with
flat organizational structure (Doppelt,
2017). In that management provide
training to employees for working and
develop motivation by making
connection with them. Staff feel
motivated than able to give hard work
for organization. The strategy to create
plan for reduce wastage and conduct
their operations. By organizing training
session is help to employees for work in
better manner.
The Pepsi co is operates their business
with Hierarchical organizational
structure. In which company have
various departments at different stages
like upper, middle and lower level.
They provide information ad
guidances to their employees and staff
by managing work. In the process of
transfer information from upper level
to lower level taking more time. In
that management take decision to
change their organizational structure
for improving performance. This
change have aim to reduce transfer
time duration for giving information
to others. For the strategy to use flat
structure to motivate their employees
for work and give equal treatment.
This occurs positive changes.
Changes in
technological
factor
In the present days various technology is
come in the market which can affect to
organizational strategy because
implementation of new technology need
give proper information of change to
Here, is also supply chain
management important operation of
company (Du and Salameh, 2019).
Through which company is supply
products to others. In this company

employees. Supply chain process
company face problems in that company
take decision to use new supply chain
technology. This is the change which is
decided by management. In which
company is hire new employees for
manage supply change.
faces problem which is taking more
time to delivery product to others. For
that management take decision to
provide training for reduce time
duration of transfer product and
services. Like, change in supply
change management is employees
requires training using techniques.
Pricing
policy
The pricing is the another changes in
that management needs to make changes
in pricing policies as per geographic and
demographic segments as organization
is operations business in the different
parts. In that company need to change
pricing policy competitors to
penetrations. The changes in pricing
policy affect to organizational strategy
and objectives.
The company is recently change their
pricing policy which is Hybrid every
day value pricing strategy, reducing
the discounts it has been offering
values on holidays and moving
towards lower price every days.
Through which employees and
strategy are affected because of
working ability for completing
business.
Staffing In order to manage supply chain
company hire new employees for work
better. In that case, staffing is totally
new and requires training and
development (Dugan, 2017). In the
staffing those changes are affect in
negative manner.
Company is decide to promote their
staff members from juniors to seniors
level. The change is posts of
employees are changed as well as
responsibilities are also changed.
Those are changes which are come
with staff members.
Those are the changes which are affect to organizational strategy and operations of work
because in which employees and management need to understand those changes in appropriate
manner. For analysis impact and dealing with change here is use Bohner and Arnold change
impact analysis are as follows:

This model is divided into three stages. Those are help to analysis those changes effect on
business in positive and negative manner.
Stage 1: in this stage companies are identified changes like the structural changes in
organization. Company is decided to change in their organizational structure to minimize time of
convey information.
Stage 2: For that company is make strategy to implement those change within the
company. In that company organize training and development session to provide instructions to
work and motivate them for giving hard contribution within the company (Impact Analysis,
2018). In which Coca cola and Pepsi co face some problems like employees are not understood
properly work easily but after giving training they are understood work process.
Stage 3: this change is give positive impact on the business because of firm is reduce
time duration to convey information to others and reduce wastage or operational manufacturing
cost of products. Through which Pepsi co complete task on time and Coca cola develop rules for
reduce wastage.
Stage 4: here are both companies are informed to all the stakeholders about the impact
analysis and take right decisions for work in perfect manner.
LO 2
P2 & M2 Internal and external drivers changes affect leadership, team and individual behaviour.
Coca cola is soft drink manufacture company which employees perform their job and
roles to achieve desired goals and objectives of company. It is very important to analysis internal
and external drivers of changes which affect leadership, team and individual behaviour are as
follows:
For internal driver changes:
There are various internal drivers which are present within the organization such as
management style and cultural differences. Those discussed are as follows by using SWOT
analysis: Management style is the strength of Coca cola company because company is use
different types of management style to work better. Company is always motivate to
employees for performing better ways (Ford and Harding, 2018). This give positive
impact on individual, team and leadership behaviour. This is very important and effective
for management.

 Cultural differences: This includes values, behaviour and attributes which is the
Weakness of Coca cola and Pepsi co because in the company have various employees
who are belonged with different culture. The differences in values and attitude of the
team member can give the overall impact on the performance of employees which
ultimately reduce the productivity of respective company. This also create negative
impact on decision-making leaders for handling team effectively. This influence
behaviour of team because work is not understood by each employee.
 Employees morale: is created the various opportunity for because employees are main
who gives positive and negative impact on the businesses. It is refers to the confidences
and strength level of employees and it is very important for company. Example: if
employees have low morale than they are not able to accept changes within the
organization by creating proper working environment. Most of the activities are provided
training and motivation session (Grandy and Sliwa, 2017). This give positive impact on
the leadership to maintain work under rules and regulations. This influences behaviours
of individual and team in positive manner.
For external driver of changes:
There are various external drivers which can affects to behaviour of individual, team and
leadership in both negative and positive manner are as follows: Political: Political factor is gives direct and indirect influences funding of an
organization. Coca cola and Pepsi co company have various rules and regulations for
conducting their business in positive manner. In this government changes some rules and
regulations about tax rate in which company need to develop strategy and plans
accordingly. In which leaders need to provide complete information about changes to
employees and team for work. Economical: the employment rate is also affected to company coca cola and its work
policy (Hayes, 2018). For example: changes occurs in economic conditions of customers
it will affect their buying power and in which leaders of Coca cola and Pepsi co company
design and manufacture products according to the demands and economic conditions of
customers. This lead change in behaviour of team as well as individual. Social: This includes needs and wants of customers at market place of an organization.
For example: changes in needs and wants company leaders are developed and design

plans and strategy accordingly but leads to wastage of old products. This will directly
affect to employees motivation and productivity of group and team. In that coca cola
analysis market and make plan as per trends.
 Technological: the technological changes is enhanced productivity and quality of
production process of organization by improving and updating technology which is used
in production process (Heron and Anderson, 2017). Coca cola and Pepsi co company is
used advanced technology to produce products and services which is take less time to
complete task. With the help of innovative technology company is able to improve
employees work and quality which is created positive motivation of employees.
P3 Evaluate measures of taken to minimize negative impact of changes.
It is very important and effective to measures the impact of changes within the
organizations because of more growth. There are mentioned most of the changes are gives
positive impact on performance but another some gives negative impact on the businesses. For
minimize and reduce negative impact of changes from company here is used Burke Litwin
model for analysis the changes of Coca cola company are as follows:
This model is help to understand the overall changes which are comes within the
organization by with various internal and external drivers. This considered with complete
beginning and end process represent inputs of organization to the external environment and
outputs through individual and organizational performance.
External environment: The external environment is represented the forces or conditions
outside Coca cola company which can affect the processes (Hughes, 2016). Like changes in
customers needs and wants at marketplace condition with new trends.
Individual and organizational performance: Is overall output of Coca cola is present
any many ways like productivity and customer satisfaction.
Transformational factors are deeply helped to embedded processes and characteristics of
organization with leadership, mission and strategy and organizational culture.
Leadership: In these leaders of Coca cola company is decide leadership style to provide
complete direction to employees. Individual in leadership positions are responsible for
developing a vision and motivating rest for achieving goals and minimize negative impact of
change which is change in needs and wants of customers. Democratic leadership style is best to
handle situation through that leaders can views of employees.

Mission and strategy: This is described the purpose of organization and process for
achieve goal is to minimize negative impact (Lowell and Morris Jr, 2019). For handling this
strategy is to organize training and development session for improve performance by collecting
evidence through research and development department of Coca cola. The mission is to
minimize negative impact which is wastage management.
Organizational culture: norms and regulations of Coca cola company will be less
formal than the mission and strategy but still implicitly throughout the organization. In that
management need to create and build positive and effective working environment to motivate
employees because employee motivated than ready to give hard contribution for work and
negative impact will minimize.
Illustration 1: Burke Litwin change model
(Source: Burke-Litwin: The Performance and Change Model,
2017)

Transactional factors refers to the day to day operations of Coca cola company.
Management practices: behaviours of seniors and manager is motivate to employees for
working on daily basis. This aligned to carrying out over all strategy to working under perfect
manner.
Structure: Coca cola management need to divide work according to the job of
employees and organize training as per department required.
Work unit climate: Create happy and positive working environment which is help to
encourage employees for working in better manner. Well team members' corporation is help to
feel comfortable to each individual feel expressing themselves and well goals are sets.
Motivation: Is another aspect for that company need to provide equal opportunity and
incentives for hard work is help to motivate employees for working better.
Task requirement and skills: Allocate task to employees as per skills and ability of
them because if employee is good in production work and management allocate work finance is
increase negative impact (Burke-Litwin: The Performance and Change Model, 2017). But proper
allocation is help to minimize negative impact.
Individual needs and values: Management need to address needs and wants of
employees with company help to understand work such as pay, work life balance and
responsibility to be met in their role.
In respect of Pepsi co here is use Continuous improvement model:
Continuous improvement model is also effective and important for proper management
and for minimize negative impact of company. This considered with four steps of quality
assurance method like Plan do check and act cycle:
Plan: In that management of Pepsi co is identified the opportunity and plan for changes
(Meuser and Lord, 2016). Company is face challenges in their organizational structure and not
able to manage wastage through old structure. Opportunity is change organizational model of
company and make plan how.
Do: Implement organizational structure within the company by managing work. In which
company need to organize training and provide motivation to employees for working better
ways. This help to minimize negative impact of wastage management from Pepsi co.
Check: Cross check of work is help to analyse result of change and determine the
changes. Checking is more important for working better manner (The continuous process

improvement model, 2019). For that company can use data of company like profits and loss
account and KPIs system.
Act: Changes was successful, implemented and working is effective for working. Here is
management of Pepsi co is able to minimize negative impact of changes within the company and
create positive growth.
Those models are help to both Pepsi co and Coca cola company which is help to make
positive impact on the businesses or minimize negative impact of changes within the companies.
D1
It has very important to analysis the changes within the organizations. For that here is
included some recommendations for both companies. The coca cola company should use Burke
Litwen model for managing changes in effective manner. On the other side, Pepsi co use
continuous improvement are help to manage changes in quality of products with proper
implementation. Both the companies should organize training and development session for
improve performance of employees.
LO 3
P4 & M3 Different barriers to changes and determine influences of leadership decision-making.
There are different barriers to change which influences the decision-making process of
leaders in negative and positive manner. This help to manage work in proper and effective
manner. In order to analysis barriers to changes and their influences on decision-making here is
use Kurt Lewin force field analysis model:
Kurt Lewin force field analysis change model to design the driving and restraining forces
which affect changes within the Coca cola. Those are help to analysis proper working forces by
management. Many of the factors which are drive changes in business. Those are analysed by
using this models (Nawaz and Khan, 2016). This model is provided overview of change problem
which need to be tackled by a business, splitting factors into forces for and against changes. In
this, there are forces driving changes and restraining changes. There equilibrium between two
aspects will be no changes. Management of coca cola company face problem within their
organizational structure, and they decide to make changes in their organizational structure which
is help to managed work. This means leaders and managers had to learn a new organizational
structure with rules and regulations. In that organizational structure is the driving force and

leaders and management restraining forces. They are taking extra time to train employees in
better manner and into resistance to change anything about their jobs. Organizational structure
changed by management have clearly designed role and responsibilities of employees within the
organizational structure with reason for change. Change is being competitive with other firm.
This can affect decision-making process of leaders because in that have to decided role of their
followers as per organizational structure and make every decisions under the need of
organizational structure.
Illustration 2: Forces of change and restraining
(Source: Lewin's Force Field Model (Change Management), 2019)

Driving forces is needs for the greater flexibility in organizational structure is internal
force for change (Lewin's Force Field Model (Change Management), 2019). Use of technology
for competitive edge age which will help to record several data.
Restraining change is disruptive and stressful working of employees. Lack of employees
support within the organization as they are not ready to accept changes to perform their business
activities in different ways.
There are mention some barriers which are face by coca cola are as follows:
 Lack of staff involvement is common factors because most of the time al, the
employees are not involved in changes. For that leader is taking decision to conduct
meeting to solve problems of employees.
 Lack of finance and investment is kind of change with finance organizational structure
change is created some new technology and required finance.
Influences decision-making of Coca cola leaders because new technology and changes in
organizational structure (Neumann, James and Vince, 2019). This influence to leaders of
company to plan and apply different leadership strategies to perform best task in proper manner.
LO 4
P5, M4 & D3 Different leadership approaches to dealing with change in organization.
Leadership is the art of motivating employees and people for working in proper and
effective manner. This help to encourage employees for achieving goals and objectives of
company. For that here is included leadership approaches and theories are as follows:
Situational leadership:
It is adaptive leadership style in that leaders are always ready to handle and take
decisions in every situation. In case of conflicts between the employees within the Coca cola
regarding the changes in organizational structure because of adoption of new technology for
reducing time duration of conveying information (Singh and et.al., 2018). In that leaders are
behaved according to the situation and develop strategies to resolve issues in proper manner.
That is help to reduce conflicts and help to dealing with changes within the organization.
Democratic leadership approaches:
Democratic leadership approach is also called shared leadership or participate approach,
which is leadership style where the members of group take participative approach in the process
of decision-making. The leadership style is used by Coca Cola in its whole organization. In this

style company gives opportunity to every employee to participate, exchange ideas freely and
more involved discussions are encouraged by the leaders. Democratic process focus over the
equality between the individuals and the groups, ensure ideas to float freely. Leaders of the
group provide the control and guidance to the groups and individuals. Democratic leaders are
charged with the responsibility of analysing the contribution of members (Parés, Ospina and
Subirats, 2017). Leaders than find the best performer among the group and motivate the others
members of team to perform better. Studies and researchers have found democratic approach as
the best and most influential technique that is used by the companies in achieving success.
Coca Cola used this approach for motivating the employees and team members of
company. Leaders encourage the team members to participate in the discussions and share their
ideas. This helps the members to feel motivated for the and develops a feeling of involvement in
the process of company. The leaders through their guidance and support encourage creativity and
innovations from the members. The leadership approach is helping the organization to achieve its
goals and objectives by building effective team. Performance and efficiency of the employees is
increased through this approach. It is essential for the enterprise to have effective leadership
approach for encouraging and motivating employees. With the help of Lewin change model
leaders are able to implement changes in effective manner.
 Unfreeze: Determine the needs of change for performing business activities effectively.
Leaders of Coca cola is analysed needs of changing organizational structure because that
is taking more time to convey message from upper to lower level.
 Change: leaders start implementation of changes and communicate with all followers
about the changes which are happens in organizational structure (Yrjölä and et.al., 2019).
In this leaders are provided more information about changes for effective management
process.
 Refreeze: Coca cola leaders and manager are decided to develop the way through which
they can sustain changes in organization and make ready to employees.
CONCLUSION
From the above study it had been concluded that the leading and understanding changes
within the organization has more important part which is help to make changes for positive
growth of company. In respect of that various changes like technological, pricing and
organizational structure impact company strategy and operation which has critically understand

by comparing between two organization. Management style and cultural has the internal driving
forces and for external here has use PEST analysis. Here has evaluated the impact of changes
and minimize negative impact by using Burke Litwen model within the organization. This has
also explaining the barriers to change by using Kurt Lewin change model. At the end of report
include situational and democratic leadership approaches for leaders to dealing with changes and
implement changes by using Lewin change model.

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