Understanding and Leading Change in Organisations - Desklib

This report discusses the impact of change on organisational strategy and operations, internal and external change drivers, measures to reduce negative impact, barriers of change, and leadership approaches to dealing with change in various organisational contexts.

Understanding and
leading change

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Compare and contrast different organisational examples where there has been an impact
of change on an organisation’s strategy and operations..............................................................1
P2. External and Internal change drivers which could result in affecting the team behaviours,
leadership and individual. ..........................................................................................................4
PEST Analysis............................................................................................................................5
P3. Various measures taken to reduce the impact of negative change........................................5
P4 Explain different barriers of change and determine how they influence leadership decision-
making in a given organisational context. ..................................................................................6
P5 Apply different leadership approaches to dealing with change in the range of
organisational contexts. ..............................................................................................................7
CONCLUSION................................................................................................................................9
References:.......................................................................................................................................9

INTRODUCTION
In order to formulate appropriate business plans and strategies, organisational strategy plays a
vital role. It helps in setting the aims and objectives for the business organisation so that it could
face the competition in the market. It also assists in preparing an action plan according to which
business should function or carry on its activities. There are certain modifications that are being
done while preparing business framework in the context of globalisation and technological
aspect that focuses on the most important elements that affect the functioning of the business
establishment both internally and externally(Onia, 2022). Business is dynamic in nature and
keeps on changing according to the preferences and choices of the consumers and market
conditions. In order to attain better understanding of business the employees working in the
organisation must apply proper knowledge and skills so as to deal with such kind of atmosphere.
Understanding and leading change basically means the changes that happens among the
businesses because of different factors that impact the organisation direct and indirect manner.
Tesco has been selected for the matter of this report that is the multinational grocery retailer
brand located in England, United Kingdom. It was established in the year 1919 by Jack Cohen.
According to the data collected in 2011, it was the third largest grocery retailer brand across the
globe. This report will compare various organisational examples in which there is an impact of
change has been observed on the strategy and organisational activities. It also explains the
internal and external factors that affects the behaviour of the team. Further, it discusses various
challenges of change and identify that how they impact the leadership decision making. Lastly, it
talks about the application of various approaches of leadership that could help in managing the
changes occurred in the organisation(Wolberger and Goldman, Schuyler, 2018).
MAIN BODY
P1 Compare and contrast different organisational examples where there has been an impact of
change on an organisation’s strategy and operations.
Whenever there is a modification taking place in a business it is assumed that some necessary
changes or alterations has been made in order to ensure effective functioning of the organisation.
It is very important to understand that because of the impulsive nature, it is essential to draw
efficient business strategies that could be able to overcome the risk factors. As, it is not important
that a particular business is dealing in only one specific category of product or service. There are
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many brands that are associated with the manufacturing of different varieties of goods under one
name. That is why, it is crucial in terms of maintaining growth and development of the business
in order to prolong its business journey in the market. This would help in yielding more
profitability and enhance the sales slab of the organisation. In relation with Tesco, they usually
focus on creating a large consumer base by choosing the best suitable business plan and policies
and applying them in the business. The procedure of change could be identified by making a
comparison between two business ventures through which the techniques and methods are being
analysed that are adopted by the company(Ibeawuchi, et.al, 2021). Developing a strategy or a
business plan assists the organisation in increasing its productivity and widens its ambit for
attracting large number of customers and building brand name in the market. It can be claimed
that in an organisation, work culture is solely responsible for the satisfaction of the staff and the
shareholders. The employee should be encouraged by adopting certain motivating strategies that
could lay a positive impact on the individuals to perform with more efficiency. In context with
organisational change, it refers to a change that helps in making certain improvements in the
overall functioning of the business. It includes certain procedures and policies that renders better
growth aspects to the business. It ultimately helps in acquiring desired goals of the organisation.
In today's era, it is very essential to adopt the technological advancements and function
accordingly because each and every thing has been digitalized. Now, every thing is on the reach
of finger tips. That is why it is important to go ahead with the changes that are emerging in
innovation, creativity and technical sector.
Basis Sainsbury Asda
Description of the organisation Sainsbury was established in
1869 and has its headquarters
in Holburn, UK. It is the
second-largest supermarket
chain with stores all over the
UK. The business sells a wide
range of groceries and fresh
food items. They are
constantly working to increase
Since its origination was in
1949, it has operated as a
British supermarket chain. Its
main office is in Leeds,
England. Between the years
2003 and 2014, it held a large
portion of the market in the
United Kingdom. It has a
number of stores in the UK and
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their market share in a number
of nations around the world.
is well-known for its food and
grocery items, which are very
popular among UK residents.
Plans and strategies In terms of the organization, its
efficient planning system and
business structure help it
compete with other
organizations and attract
employees(Laig and Abocejo,
2021). They are unique in their
methods and strategies for
attracting their large customer
base. Additionally, the job and
the hierarchy are strongly
connected to the structural
changes. They are able to
make the most money by
cutting costs and making good
use of resources. Employees
are encouraged to contribute to
a company's productivity
because of the incentives and
other rewards.
When it comes to an
organization, the shift in the
structure of the business is
largely responsible for
organizational change. In order
for a business to remain
competitive in the market, it
must adapt its system to
changes in the organization.
The small and medium-sized
organization receives direction
from its leaders and managers.
Technology Advancement In the context of the business,
the organization adopts digital
business practices and makes
use of a variety of apps to
boost growth, success, and
profitability by attracting more
and more customers. An
Organization-specific
technological shifts are heavily
influenced by social media
marketing and
commercialization.
Technology has a significant
impact on the company's
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organization's use of
technology enables it to
provide products and services
of the highest possible quality
and increase productivity.
strategies and operations in
relation to the company. It is
possible to increase market
share and strengthen the
market's base by making the
right changes(Kang, et.al,
2022).
P2. External and Internal change drivers which could result in affecting the team behaviours,
leadership and individual.
Any organization's functioning is significantly impacted by both internal and external factors,
which prevent businesses from achieving their goals. Internal factors are forces within a
company that typically have an effect on how the organization works. On the other hand, the
company's overall performance, profitability, and functionality are affected by external factors.
SWOT Analysis
A company can learn more about the internal factors that could affect how well it runs by using
this analysis. It is strategic planning that helps a company identify its strengths, weaknesses,
opportunities, and threats(Seipp, 2019). This helps the company run its operations properly and
introduce new innovations that will give the company a competitive advantage in the market.
In relation to Sainsbury, this analysis is crucial for gaining a competitive advantage by assessing
the various aspects of an organization and how it operates.
Strengths
 Sainsbury is a company that is listed on
the London Stock Exchange, making it
simple for people to trade shares there.
 Sainsbury has a strong relationship with
its customers thanks to its extensive
social media presence and platforms. A
strong relationship with customers can
be maintained through frequent
Weaknesses
 As a retail brand, Sainsbury faces
challenges due to market competition,
which causes customers to switch
brands and makes it challenging for the
company to maintain loyal customers.
 Sainsbury is a well-known international
brand, but many people find it too
expensive to buy its products and
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feedback(Roberson and Perry, 2022). services.
Opportunities
 If Sainsbury tries to expand beyond the
UK, this will be a great opportunity.
 Sainsbury is able to acquire an ever-
increasing number of customers
because of the company's prevalent
customer base and economic
improvement.
Threats
 In relation to Sainsbury, the
organization's smooth operation is
impacted by legal rules, regulations,
and standards(Nguyen and Crossan,
2022).
 In relation to Sainsbury, emerging
rivals with cutting-edge technology
pose a threat to the business.
PEST Analysis
PEST Analysis is a tool for measuring all the external factors that affect an organization's ability
to access a particular market segment. It enables a business to examine a specific environment to
comprehend the market, position, and potential of the business, as well as to regulate workplace
directions. In relation to Sainsbury, all of these factors assist the company in analysing the
effects of external factors on its operations and determining ways to increase productivity.
Political Factors: Since Sainsbury primarily operates in the United Kingdom, the economic lag
in other nations has no effect on the company. However, businesses are affected by political
factors as a result of Brexit, which has separated the UK from the territory of Europe, resulting in
low customer spending and higher inflation rates(Bohman, 2019).
Economical Factors: Customers' diminished purchasing power as a result of Brexit has reduced
store sales of products. Since the UK has experienced periods of economic stagnation, it is
advantageous for Sainsbury to invest in developing nations with economic freedom, which can
result in profitability and prosperity for the company.
Social Factors: Customers opt for supermarkets other than to local shops because they can get
everything they need in one place(Machalaba and Sleeman, 2022). This makes it easier for
Sainsbury's to offer discounts and new and creative products to their customers to boost sales.
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Technological Factors: Sainsbury took over technological advancement by offering customers
the option to purchase food online and to pick up their purchases from nearby stores. The overall
cost of production can be reduced with the assistance of technological advancement.
P3. Various measures taken to reduce the impact of negative change
Negative change can have adverse impact on an organization's market share if it is not mitigated;
otherwise, the organization's productivity and profitability will suffer.
Engagement of Employees : Employee participation in decision-making can give them a sense
of belonging, which will encourage them to play a significant role in the company's operations.
As a result, the company must establish this crucial factor.
Upgrading knowledge of employees: By giving them timely training and the ability they need to
adapt to a variety of technological changes in order to contribute effectively and increase the
organization's productivity.
Flexibility: It is necessary for the organization to have a flexile organizational composition that
enables it to effectively formulate changes without compromising productiveness or business
operations(Nadim and Singh, 2019).
Leadership: The company's manager and leader should be able to effectively regulate
organizational changes without causing chaos or disturbance to operations, which enables a
company to effectively adopt changes.
P4 Explain different barriers of change and determine how they influence leadership decision-
making in a given organisational context.
To identify the change process in relation to an organization's management, a thorough
understanding and knowledge are absolutely necessary. To affect the company's change process,
the organization could employ effective strategies. Various obstacles that may arise while
managing the organization may have an impact on the leaders' and managers' decisions.
 Structure of change: In the context of the Sainsbury business, employee participation in
the decision-making process is crucial for providing employees with validation. For the
organization to grow, the decisions it makes must be carried out in an efficient manner
with the help of a change structure. Senior management modelling: In the context of the Sainsbury company, senior
administrator may find the execution of change to be extremely ineffective. Everyone
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who works for the company or is a part of the organization aspires to keep their position
in the company(Kinchington, 2019). Due to a lack of communication within the
organization, mismanagement in the work of the organization may result in conflicts
between its members. No follow up: The organization's leaders, managers, and employees all depend heavily on
how changes are put into action.
 Lack of knowledge skills of change management: The company's management role has
an impact on the planning and communication process. The company's process of change
is greatly influenced by management. Leaders and managers' in-depth knowledge and
comprehension determine the company's environment. The company's primary objective
is to engage employees and develop their knowledge and skills in order to make
significant changes in the business.
P5 Apply different leadership approaches to dealing with change in the range of organisational
contexts.
An organization's growth and development greatly depend on its leadership. Leading abilities
and management behaviour have a significant impact on an organization's expansion. An
organization can deal with change with the help of a variety of strategies that can have a positive
impact on leadership(Finn and Feldhaus, 2021).
The organization's members are able to perform well because the leaders consistently support
them. With the assistance of leaders, they are able to perform their duties correctly and guide
others in the right direction. With the assistance of leaders, they are instructed to perform better
for the organization's growth. The following approaches or leadership styles can be used to bring
about the organizational transformation:
Delegated Leadership: In this type of leadership, the leaders primarily concentrate on putting
initiatives into action by delegating them to team members or employees. The members' ability
to accept the responsibility can have a significant impact on their work. In the context of the
Sainsbury organization, employees ought to be motivated to perform more effectively;
otherwise, disagreements among them might cause them to perform poorly. In order to effect
change within the organization, the members of the team will be able to perform better if they are
innovative and creative(Clearfield, 2022).
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Democratic approach: Using a democratic approach, it was possible to gain a thorough
understanding of the impact of change on employees in relation to the Sainsbury organization's
various change aspects. A democratic approach can be used to gain a deeper understanding of
each organizational change.
Situational approach: Using a situational approach in relation to the Sainsbury organization, it is
possible to identify the appropriate or correct style of leadership. It is possible to identify the
appropriate leadership style in light of the circumstances of the organization and the changes it
has imposed.
Behavioural approach: With the assistance of leaders and managers, the behaviour of the
employees at Sainsbury can be evaluated in light of their leadership style. With the assistance of
this strategy, the organization's behaviour shift is crucial to the change. Additionally, this helps
the business deal with and effect the change.
Effect of Leadership approach: The leaders of the organization are able to establish an effective
working environment and increase employee participation by referring to this strategy. This
allows for the formation of an efficient team and the successful implementation of change. In
light of the circumstances, the strategy also aids in the establishment of a flexible work
environment within the organization with the goal of rapidly establishing staff acceptance of the
change(Rossi, 2019). Employee behaviour is influenced by the context of the behavioural
leadership approach, which in turn aids in comprehension of the new methods that will emerge
following successful change implementation.
Change Management model: This model is used to manage and deal with the change in the
context of organization.
Kubler - Ross's curve for change management:Denial, anger, bargaining, depression, and
acceptance are the five stages through which this model operates. With the help of this curve, an
organization can anticipate how employees will respond, which will help it prepare for future
change. Regarding the organization's employees, they are held accountable for implementing the
changes, and if they oppose them, the business cannot identify the change in order to achieve the
desired outcome.
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Kotter's step change model: With the help of this model, the individuals who are involved in the
altered process can be the focus rather than the individual. With the assistance of trust,
transparency, teamwork, and cooperation, the model can transform resistance into desired
participation. Using this model, everyone will be involved in putting the change into action.
Effect of change management model: With the aid of the Kubler-Ross change management
model, a company is supported in its ability to analyse employee reactions and anticipate
problems(Scholl, et.al, 2018). Employing Kotter's model enables the business to educate its
workers on the significance of change and to require them to respond to it. In addition, it has
come to the realization that the strategies and models that the company employs to deal with
change can also be effectively managed. Additionally, with the assistance of the aforementioned
models, the business is able to lessen employee resistance and address a variety of issues.
CONCLUSION
The conclusion drawn from the above-mentioned report is that for a business, change is very
important because it helps it adapt to changing conditions and stay competitive. Additionally, a
discussion of the change factors and Sainsbury's and Asda's responses to them is derived from
the aforementioned report. In addition, the company uses the described models and approaches
for change management. If a company is confronted with a change, it may hinder the successful
implementation of the change and have a negative impact on business operations. The
aforementioned research also identifies a number of constraining and motivating factors that both
aid the business in implementing the change and create obstacles to it.
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confronting educational challenges of coronavirus pandemic. Economic Insights–Trends
and Challenges, 2021(1), pp.11-20.
Seipp Jr, D., 2019. Leading change: Examining the relationships between leadership style,
organizational culture and change readiness in christian universities of the state of
Oregon.
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Bohman, K., 2019. Leading Change From the Middle: A Qualitative Study on Middle Managers'
Role in Organizational Transformation.
Machalaba, C. and Sleeman, J.M., 2022. Leading Change with Diverse Stakeholders. In Wildlife
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Nguyen, B. and Crossan, M., 2022. Character-infused ethical decision making. Journal of
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