Understanding and Leading Change in Organisations - Desklib

This report discusses the impact of change on organisational strategy and operations, internal and external drivers of change, measures to minimise negative impacts of change, barriers to change and different leadership approaches to deal with change in a range of organizational contexts. It includes a comparison between J Sainsbury plc and ASDA stores Ltd. and analyses their force field analysis, PESTLE analysis and SWOT analysis.

Understanding
Leading Change

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations....................................................................................1
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation.......................................................................2
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour..............................................................................................................6
P4 Explain different barriers to 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 a range of organizational
contexts........................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
A change in an organisation is a initiative or a decision that has been implemented in the
organisation in order to solve problems that has been arising in the firm, avail new opportunities
and methods through which a firm can get a competitive advantage in the market so as to ensure
better growth of the company by increasing efficiency and effectiveness inside and outside the
organisation (Lahti, Wincent and Parida, 2018). It is important role towards success of an
organisation as change leads to develop new opportunities to the firms, enhances innovation and
helps the organisation build better working environment for their employees so as to generate
more profits. For a better understanding, a firm J Sainsbury plc is taken under consideration. J
Sainsbury plc was founded by John James Sainsbury with a small shop in Drury Lane in London
in 1869 and is second largest supermarket chain in UK. This report will cover a brief discussion
on impact of change and leading internal and external factors that affects change in leadership,
team and individual behaviour in an organisation. Also measure taken by the organisation to
minimise negative effects of change, barriers to change and different leadership approaches
available to deal in change will be discussed with comparison between two companies.
MAIN BODY
P1 Compare different organisational examples where there has been an impact of change
on an organisation’s strategy and operations.
Overview of J Sainsbury plc:-
J Sainsbury plc is the second largest supermarket chain in UK which was founded by
John James Sainsbury in 1869 with a small shop in Drury Lane, London.. Sainsbury is a
multinational retailing chain offering a variety of products to general public such as grocery
products, general goods and clothing goods. Headquarters of the firm are in 33 Holborn Street,
London, UK. It also deals in international market with more than 600 supermarkets and 800
convenience stores across the world.
Changes made in Sainsbury:
Over the period of time, Sainsbury adopted a lot of changes in their firm which helped
them grow with a greater pace. One of these changes made in organisational operations was that
it made was it increases the speed of delivering their products to the customers so as to increase
customer satisfaction and effectiveness in its operations.
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Overview of ASDA:-
ASDA stores Ltd. is a British supermarket chain with is headquarters in Leeds, England
and was founded in 1969 by a merger of Asquith family with dairies company of Yorkshire and
is third largest supermarket chain in UK with more than 600 superstores in UK out of which 514
are in England. ASDA superstores deals in a variety of products with approximately 35000
product lines in a typical ASDA store out of which approximately 20000 lines includes food and
beverage items.
Changes made in ASDA:
Over the years after the firm was founded, managers has made a lot of changes in market
so as to gain competitive advantage and attracting more customers towards them. One of these
changes are that ASDA reduced their delivering charges lower than any supermarket firm
charges which helped them to increase sales through online stores gaining a more loyal customer
base.
P2 Evaluate the ways in which internal and external drivers of change affect leadership,
team and individual behaviours within an organisation.
PESTLE Analysis:- It is a strategic framework used by professionals of an organisation
to analyse the external factors in a business environment (Alanzi, 2018). It also analyses its
effect on working of an organisation (AKMAN, 2020). In reference with the comparison of J
Sainsbury plc and ASDA, PESTLE analysis is:-
Segment of
analysis
Factors
affecting
business
J Sainsbury Plc ASDA stores Ltd
Political Change in
presidency
Change in presidency of a
nation in which a firm is
dealing in highly affects the
working of the firm as a new
leadership in nation may bring
to some changes in trade
disputes across the nations may
The change in leadership of a
nation affects the business
individual and team behaviour as
it may bring up changes in
taxation policy of a country
which might affect a business
profitability in both positive and
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affect the human resource of
different nations affecting
individual and team efforts of
the firm leading to downfall of
the firm.
negative manner affecting
overall operations of a business.
Economical Interest rates Interest rates may not affect a
business's existence directly but
it may affect it indirectly as the
increase in interest rates affects
the budget of consumers which
may lead to less sales for a
Sainsbury.
Interest rates may also directly
affect a firms presence as the
firms with loans and overdrafts,
increase in interest rates will
lead the firm to pay more
interests leading to rise in prices
of products which may affect
their sales directly.
Sociological Consumer
beliefs
Consumer beliefs in social
factors may not affect a
companies leadership,
individual and team behaviour
as a whole but it highly
influences the online segment
of the firm. The positive
relationship consumer's belief
and online shopping will help
enhance a stronger relationship
between online segment of the
firm and customers.
A consumer's belief and attitude
assists a firm to make better
decisions about their
productivity that what products
and services do they need to
produce and to where should
they offer their manufactured
goods in order to get best
response from their target
customer base.
Technical Technical
Infrastructure
A technical infrastructure
affects a business's operations
as more advanced and efficient
technical infrastructure leads to
more efficient results by
A more effective technical
infrastructure helps to build
positive attitude in leadership,
individual and team behaviour as
it will help them build a positive
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decreasing the cost of
production and filling the time
gaps in their production.
attitude regarding the outputs as
more technical advancement will
lead to more accuracy in results.
Legal Taxation
Policy
Sainsbury needs to overlook
this factors in order to ensure
smooth functioning of
profitability of the firm. The
increase in taxes decreases the
profits of the firm so they need
to keenly observe the same so
as decisions can be
appropriately.
ASDA needs to consider this
factor as it may lead to loose
their market share. As the taxes
rises, cost of production rises
leading to rise in prices of
products affecting the sales
directly.
Environmen
tal
Reducing the
wastage
Sainsbury thoroughly focuses
on this factor so as to reduce the
burden on environment.
ASDA promotes reduce, reuse
and recycle technique in order to
ensure environmental stability
and increase the efficiency in
their production.
SWOT ANALYSIS:-
SWOT analysis is a strategic module used by managers of a firm to analyse the internal
factors of a firm that contributes to the productivity inside the organisation (Benzaghta and et.al.,
2021). It is an analysis for analysing internal powers and growth opportunities and external
dangers an organisation faces (Teoli and et.al., 2019).
J Sainsbury Plc:-
Strengths
Sainsbury is second largest supermarket chain
and has experience of over 150 years in
dealing in retail market which ensure goodwill
of the firm and has a massive market
recognition which makes them to have one of
Weaknesses
Rise in food prices over the world had a very
huge impact on Sainsbury forcing them to
increase the prices of their food products in
order to ensure stable profit so that they can
guarantee their stability in market. Higher cost
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the most important competitive advantage over
other retail firms
of these food products has highly influenced
the sales of the firm.
Opportunities
Sainsbury can enter into more markets and
industries and can launch new products into the
market that can enhance better profitability of
the firm. This organisation has better chances
of survival due to their existing goodwill in the
market.
Threats
Increasing globalisation poses high threat to
the organisation as companies across the world
are emerging into Sainsbury's market
increasing the competition in the market.
ASDA:-
Strengths
 ASDA deals in a variety of products
that are offered to their customers
giving them better choice of products.
 ASDA constantly tries to stay in touch
with their customers and keeps on
asking them about feedbacks and any
implements any necessary changes as
soon as possible.
Weaknesses
 ASDA has a limited presence n context
to global market as due to previous
existing competitors in international
market.
 ASDA's cost leadership strategy has is
a great hindrance as this ensure low
profit margins of firm as compared to
other existing firms.
Opportunities
 Emerging into new international
markets is a great opportunity for
ASDA as this may help them expansion
on a large level ensuring better
profitability
 They can also expand into new
industries by innovating new efficient
products in market.
Threats
 Pressure of maintaining low prices
causes them a high level of danger as
this ensures low profit margins to the
firm and can be eliminated by their
competitors anytime.
 Changing policies of government poses
threat to the firm as this leads to
constant change in working condition
inside the firm which leads to less
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stable working environment.
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.
With its importance of change in an organisation, there are a lot of negative impacts that
influences a companies existence if not carried out effectively. Ways to overcome these negative
impacts are:-
 Ensuring effective communication is a major way through which negative influence of
change can be reduced to its minimum (Galli, 2018). Carrying out organisation's plans to
workers and respective department included in that change effectively with no doubts left
will ensure better results in change leading to less negative impacts in the organisation.
 Giving the team enough time to process and understand about the basics of change and
its reasons and effects behind it will help the firm in getting better results in the
organisation as the respective employees will have a better understanding and perspective
behind the need of change leading to minimised negative effect of change.
 Analysing the change and its effect thoroughly is a basic change needed in the firm as it
will help the managers and professional in analysing the cause and effect relationship of
the respective change and help them make necessary moulds and changes in plan
effectively (Jayatilleke and Lai, 2018).
 Preserving what matters the most will help the firm in prioritizing the main operations of
the organisations in order to keep working efficiently in the market so as constantly stay
on operations in order to keep on working in the market.
 Promoting employees and workers and building a sense of motivation among the
employees will help them in keeping dedicated towards their task and adopt the change
that has been made easily which will reduce the conflicts among employees.
P4 Explain different barriers to change and determine how they influence leadership
decision-making in a given organisational context.
Force Field analysis:-
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Force field analysis is a strategic framework that is used to analyse the change planning
in an organisation in order to take powerful decision-making so that business can grow
effectively and efficiently in order to ensure growth of the organisation (Dzwigol and et.al.,
2019). It basically analyses the positive forces that drives a company towards change and factors
or forces that restrains an organisation from adopting a certain change. In reference with
Sainsbury, the firm's force field analysis is as follows:-
Supporting Factors Resisting or Restraining Factors
1. Sustainability in Environment
2. Innovation and creative approach
3. Skilled Workforce
4. Political and legal changes
5. Deficiency in existing organisation
1. Competitors in market
2. Fear of Failure
3. Lack of trust
Supporting factors or factors influencing change:-
1. Sustainability in environment – The main reason behind change is to build a
sustainable business environment inside the organisation so as to ensure better and more
capable workforce that is more efficient in doing their task.
2. Innovation and creative approach - Innovative and creative approach helps an
organisation to work with better efficiency that results in a firm's better productivity
which can only be enhanced in Sainsbury by their manager's efforts towards effective
change and taking initiative regarding a change so that any chance of better productivity
and profitability can be enhanced in Sainsbury.
3. Skilled Workforce - Better and an effective change leads a firm towards providing a
better working environment for Sainsbury's workforce which will help them give better
productivity and results in the organisation. An effective change in a business's working
environment will ultimately lead to increase in capability of their employees and
providing a more skilled workforce for Sainsbury.
4. Political and legal changes – Political and legal changes in a certain region enhances a
company to make specific changes in their working so as to reduce any chances of
conflicts in their working and also ensure smooth functioning of an organisation. In
reference with Sainsbury, the firm needs to continuously observe the political and legal
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changes that are being made in their surroundings in order to adopt necessary changes to
ensure smooth functioning of operations.
5. Deficiency in existing organisation – Deficiency in existing working of an organisation
also promotes the managers or professionals of a firm to adopt a specific change that
fulfils a firms deficiency that needs to be fulfilled in order to ensure better working of the
firm. In reference with Sainsbury, the firm needs to observe its working on a continuos
basis so as to analyse their deficiency in working and make changes in order to fulfil
respective deficiencies.
Resisting or restraining factors of change:-
1. Competitors in market: A firm operates in a highly competitive market that resists
them to change anything in their working as there is always chances of other competitive
firms adopting respective change and even in a modified way that gives them more
effective results.
2. Fear of failure: In a firm thinking of adopting a change, there is always a fear of failure
that what if the things does not goes according to the planned change and the firm does
not sees any results. This fear of not getting better results according to the expectations
may resist the firm to acquire any further changes.
3. Lack of trust: One of the major obstacle that comes in the way to a companies success is
the lack of trust among employees, leaders or the company as a whole. If there is lack of
trust in the organisation, the results they will get may not be effective and may also lead
to downfall of respective firm.
4. Constant change:As the market is ever-changing and dynamic in nature there is always
chances of new modification or a new environmental change in nature and market of a
country and there are fair chances of need to introduce a new change immediately after a
change is applied in the organisation as modulations in market may not accept the desired
change appropriately.
From the above force field analysis it can be concluded that there are certain factors in
the business environment of Sainsbury that supports and enhances the managers or professionals
of the firm towards certain changes that they need to make for a better working of the firm so
that profitability can be enhanced in the firm. On the other hand, there are some of the
hindrances like fear of failure that restrains Sainsbury from making any alterations in their
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working as adopting a change comes with the risk of downfall of the company which is a major
factors that resists them in adopting any change in the organisation.
P5 Apply different leadership approaches to dealing with change in a range of
organizational contexts.
Kottler's 8 Step model
Kottler's 8 step model is a step by step framework that helps firms in providing an
appropriate detailed view on a whole process of change and also guides managers of firm in
entire change management process so that operations can be done in a smooth way (Germain and
Knight, 2021).
1. Create urgency - This is the first step towards change management in which a firm
needs to create an urgency in the market or in internal environment of the business
organization regarding the change they need to apply in order to get success in respective
change.
2. Form a powerful coalition – This step involves to convince the people that are ti be
affected by the change that the taken step is a need that requires to be fulfilled by the
organisation in order to get better effective results in the organisation.
3. Create a vision of change – In this step, a company should determine the values and to
develop a short summary in order to create a strategy and then present your vision to the
respective personnels so that changes can be made effectively (Rosenbaum, More and
Steane, 2018).
4. Communicate the vision – In this step, the managers of the organisation who are
adopting a change should carry the vision in their mind and be able to communicate it
properly with their personnels who are going to be affected by the change. Managers
should be able to communicate their vision in a way that all doubt can be left uncleared.
5. Remove obstacles – This step involves to overcome the hindrances that might come in
their way while leading a change. A manager or professional of a firm should be able to
remove all the hindrances or obstacles in their way in order to get better results in the
organisation.
6. Create Short-term wins – This step involves to first set short term goals with the change
that is going to be adopted in the organisation. Setting short term goals will help the firm
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in analysing if the change that has been made is working properly and necessary changes
can be made so as to reduce the risk of failure in long term.
7. Build on the change – After analysing results of change in short term, a company should
assess the negative and positive aspects of the change and make alteration accordingly.
After building a full and final change company can be build on the respective change in
order for them to grow in long term.
8. Anchor changes in Corporate Culture – This step includes to anchor the change that
has been made and is working properly in the organisation to link it and introduce it to
the firm's core values so that it can be adopted by new personnels in working culture in
their organisation.
Lewis Change Management Model:-
Lewis change management model is a simplified framework regarding a change in an
organisation. It defines a easy to understand way of process that must be considered in adopting
a change so that company can work effectively (Swearingen, 2019) . It has three steps that are:-
 Unfreeze: This is the step in which a change is prepared by the managers or
professionals of an organisation. They keenly observes the working of their organisation
in order to find out the deficiency in their working and plan a change effectively in the
organisation.
 Change: In this step, managers or professionals of the firm applies the change that has
been planned by them in the organisation and analyses the effect of the change. It
includes to implement the change in the organisation in order to assess its working in
firm.
 Refreeze: This step refers to solidify the change that has been made by reinforcing it into
organizational culture. If the manager or professional fails to reinforce it into
organizational culture or environment, there are chances that their employees may shift to
previous behaviour.
From the above report it is recommended to Sainsbury to apply Kotter's 8 step model in
their organisation while dealing with the change as it is a step by step sequential model that will
help the organisation in effectively analysing the change that needs to be made in firm.
Leadership approach in context to Sainsbury.
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It is recommended to Sainsbury to adopt situational leadership style in their organisation
while managing a change in the organisation. Situational leadership style is one of the most
effective styles of leadership used by companies. It is a module that for leaders of a firm to
overlook performance of their employees in the organisation (Thompson and Glasø, 2018) . This
leadership style will help Sainsbury to achieve their organisational goals more effectively and
efficiently to enhance profitability.
CONCLUSION
From the above detailed it can be concluded that change in an organisation plays an
important role in functioning of an organisation in order for them to succeed in market. An
organisation should continuously overlook the operations in the organisations so that any
deficiencies in their working can be fulfilled by making different changes in their operations.
This report was a detailed comparison of two different companies of a same industry and their
changes in organisation were analyses through SWOT and PESTLE analysis. Furthermore,
negative impacts of change and ways to minimise these impacts were discussed. Later in this
report, barriers to change and different change management and leadership approaches were
made along with the recommendations for respective company.
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