Impact of Change on Organization Strategy and Operations

This document discusses the impact of change on an organization's strategy and operations. It compares different ways in which change affects an organization's strategy and operations. It evaluates the influences of drivers of change on organizational behavior. It also explores how barriers to change influence leadership decision making and suggests a range of leadership approaches to a change initiative.

Unit 17

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Compare ways in which change impacts on an organization’s strategy and operations.............3
Evaluate the influences that drivers of change have on organizational behavior........................5
Determine how barriers to change influence leadership decision making..................................6
Apply a range of leadership approaches to a change initiative...................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
It refers to implement the changes that occur and meet the problems and find the solution
of them in a proper manner. It helps in achieving the targets easily in an organization and helps
in reaching the goals (Aboelmaged, 2018). This organization strategy helps the individual to
grow in a proper manner and will not get affected in the future. There are various reasons by
which the changes arise in an organization are needs and the demands of the people, competition
or the substitute product which may affect the company in a proper manner. The company taken
for this report is the AEGON group which is the largest insurance company in the world. The
company was founded in the year 1831 and has its headquarters in Scotland, UK. The topics
cover under this report is the changes which have the impact on the organization strategy;
driver’s which change the organizational behavior, barriers and their decision making and
leadership approach are defined in the proper manner which affects the organization in a proper
manner.
MAIN BODY
Compare ways in which change impacts on an organization’s strategy and operations
There is change in the systematic approach regarding the dealings with the transformation
of the goals in the organization, their process and the objectives which helps in making the
decision in the proper manner and will not affect the organization for a long period of time. It
helps in attracting more customers so that there is growth in the organization which helps in
achieving the targets properly. The change in the AEGON Company the main reason was that it
was not known by the many customers. The good products and services are developed and the
organization has the good reputation in the market so the decision regarding the company growth
is to be taken properly. The company has made the changes in the strategies and then compared
it to the MetLife In. It the cooperation holding company and the consumer know it as a MetLife.
MetLife founded in the year 1868 and provide benefit the customers over the 60 countries.
AEGON’s strategy and the
operations affect
MetLife strategy and the
operations affect
Organizational structure The company is having the
centralized structure in which
there is open communication
with the employees and helps
in making the decisions
properly in an organization.
There is good strategy adopted
by the company and has good
efficiency.
The company is having the
decentralized structure they do
not waste their time and the
cost in these meetings. The
decisions are already made by
the department and have the
positive impact as it help in
saving the time and enhance
the productivity.
Technology There is positive impact on the
change in the technology and
the promotion activities as
By changing the technology
they provide the products and
the services to the customers

before they are using the
newspaper, advertisement
channel of low level by which
there is less connection
between the people but now
they are using the good
promotion techniques which
attract the customers easily.
according to their needs in an
positive manner which helps
in completing the task
positively and have good
growth. As before the
problems are solved on the
individual basis which
consume lots of time but now
the problems are solved on the
regular basis.
Marketing strategy The sales strategy of the
company attracts many
customers and their emotions
which may increase the profit
of the company and have the
good growth (Behrens and
Helfen, 2019).
The company may also use
different channels to attract
the customers in an proper
manner which may increase
the productivity and the
chances of the growth in the
positive manner also and helps
in fulfilling the needs and the
demands of the people in
proper manner.
Drivers of change: SWOT analysis of the company is done to identify the drivers of the
change in a proper manner and have the effect in the organizational and have growth in the near
future. The AEGON company SWOT analysis is described below which helps in identifying the
strength, weakness, opportunities and the threat which helps in reaching the target customer in a
proper manner.
Strength: The Company has the global market share and the customers are attracted
easily as now they are having good promotional techniques. Different channels of distribution
are there which make a good relation with the customers and have the good connection with
them. There are the thousands of people who are the part of this company and having the
expertise in the life insurance and the asset management (Smart, 2017).
Weakness: They are the riskier debt sovereign of the European countries and they are
dependent on the market for generating the profits in the future.
Opportunities: The Company may have the high opportunities in the market of
retirement. And can get the opportunity of expansion of their business in the China and India
market. If they focus on their main business they may avoid the fluctuations in the market.
Threats: The Company may have the threat regarding the low interest rate policy which
may affect the organization. They may also face the strictness and the complexities in the market
of US which helps in increasing the cost.

There are the different types of the organization change which may affect the company:
 Strategic Transformational change: There are the changes that occur in the market and
may change due to the minor issues also. It may affect the company and they may suffer
from the loss. Example of these changes is they require regular updating when the
company is growing should introduce new technologies and must have the trainings
skills.
 People centric organizational change: This change may arise in the organization when
new hires are joined or there is change in the policies of the organization so the decisions
regarding this also are to be taken is proper manner and should observe the reaction of an
individual. The example of this change is the new hires in the company or the change is
the roles and the responsibility of an individual.
Evaluate the influences that drivers of change have on organizational behavior
Leaders help in influencing and guiding the colleagues which helps in achieving the
goals. The external factors by which leadership style get affected are the environment, Resource,
technology and the political factors. Organization has their own values and they know how the
business will be led in the future (Brekke, 2018). Leaders are fully dependent on the goals of the
organization and helps in distributing the resource properly. The culture is to be organized
properly as it helps in raising the funds and making the customers attract properly. The
knowledge of the customers and the suppliers should be proper so that the market places are to
be affected. Leaders should adopt the technologies which make the work easier.
Team has an ability to complete the task in a proper manner and the internal factors
determine the organizational growth. They have the clear mission and the vision which helps in
leading the task in the proper manner and helps in analyzing the growth. Team members
communicate with each other and help in improving the outcomes and build the trust.
Individual employees may affect the business directly and the managers should talk to
them in proper manner which helps in improving the communication and helps in generating the
new ideas in an organization. External factors are influenced by the individual behavior and are
uncontrollable.
The PESTLE analysis is to be done in the proper manner to know the effect on the life of
the individual and helps in gaining the profits in the long run. The PESTLE analysis is to be done
to find the exact position of the organization in the proper manner and the opportunities to build
the good relationship and have the growth in the future (Elliott, 2020)
There are different measures that are to be taken in an organization to minimize the
negative effect and have impact. The measure loss arises due to the negative impact in the
organization is the employees due to0 their opportunity cost or the leaves policy which may have
the direct impact on them and may affect the organization in a proper manner. The behavious of
the employees are smooth enough so that the decision become easy and helps in understanding

the customers in a proper manner so that the organizational goals can be achieved in the
organization. There is a very bad affect in the organization due to the individual negative effect
which may indirect affect the other employees in the organization. The changes that are arising
have the clear statement in the mind of the individual and should have the proper research on it
so the decisions in the organization can take place easily. The scope is to be determined properly
and should know about the impact of this in an organization. The leaders are very important they
should plan all this and then execute it in the proper manner. They should have the good
communication with the stake holders which help them in leading the direction and help in
analyzing the growth of the company in the future. The changes that are positive for the
organization is only taken into account negatives affect should be removed. The changes are to
be discussed with the employees and should get the feedbacks so that there is no negative impact
in the organization and will have the good growth in the market. The feedback should be arises
from the senior managers and should take the decisions in the proper manner and have the
growth in the organization (Galati, 2019). Changes in the external environment effect team as
well as individuals in an organisation in various ways. These changes can be positive aur
negative depends on the change in external environment. Taking an example of of increase in
inflation rate in the economy will affect the teams as well as individuals in the organisation.
They will demand more salary from the organisation which will increase the cost of production
and will ultimately increase in the prices of products and services offered by the organisation. In
spite of that there are several other changes which would affect the team as well as individual in
the organisation. In the similar case if the organisation does not raise the salaries paid to the
individual then it will affect the motivation of team which is harmful for the growth of company.
Determine how barriers to change influence leadership decision making
The first fear that an individual may face in the organization is the unfamiliar. If they do
not feel unfamiliar they will able to adopt all the strategies in a proper manner and helps in
achieving the targets easily in an organization. If the individual is able to overcome with these
targets helps in achieving the strategies and the goals in the proper manner. For example there is
a banking giant of Spanish who entered the market of British by its owner, abbey national,
Bingley and Bradford. Many people think that it is a difficult challenge faced by them but they
overcome with this by adopting the new technologies which helps in achieving the targets in the
positive manner. The barrier is also the ineffective leadership in organization. There will be the
failure if the leaders are not supportive which may be the reason of worry in the organization. It
becomes hard to work for the people who are working in the organization for the long time.
Third barrier which may arise in the organization is the barrier of communication in which there
is not contact of the manager and the employees who lead to disturb in the organization and no
proper flow as the instructions are not clear to the employee. This is the reason the organization
may suffer from the loss. The changes which are arises in the big business are complex and need
lot of time to accept the changes in an organization.

The force field analysis in the business helps in making the decision in the proper manner
and the first step of this analysis is to describe the vision or can be use if the individual wants the
change in the business or the change in the plan. Second is to find the changes which may arise
due to the internal and the external factors of the organization. Internal drivers that affect the
organization are is the technology, lack of the knowledge. External drivers are the environment
and the new trends of the customer. The internal forces helps in changing the organizational
structure that already exist and external factors are the effects of the government towards the
consumer. Then there is the comparison in the forces and helps in finding whether the changes
are good for the organization or not. Finally if the changes arise than it should be apply in the
organization and helps in knowing its successfulness in the proper manner (Sebastian and
Allensworth, 2019).
Schein’s organizational structure: The professor Edger Schein in the year 1980 has developed
the model of organization structure which is properly visible in the organization. Some steps are
followed by him in the organization to bring the culture change and will have the growth in the
future.
Artefacts and symbols: These are the marks on the organizational surface and are easily visible
on the structure of the organization in a proper manner like logos, design and structure. These
logos and the symbols are clearly visible to all inside and outside the organization.
Espoused Values: These are mostly concerned with the values, standard and the rules of an
organization that are to be followed properly and on the regular basis. It helps in expressing the
strategies, objectives to the customer in the proper manner by which there is the growth in
organization and helps in achieving the targets properly. These problems arise in the organization
when the ideas are not settled properly and require more work.
Base underlying assumptions: These assumptions are concerned with the behavior of the
employees so that they are not affected and should take the decisions that benefit the
organization in a proper manner and have the growth which helps in reaching the customers in an
proper manner (Gölzer and Fritzsche, 2017).
Apply a range of leadership approaches to a change initiative
The most unavoidable thing in the life is the change. Many people in the organization
find it difficult to deal with the changes that occur in the organization. It may sometime help and
grows the business. There are some ways which helps in discussing the change in an
organization in proper manner and help in growth of the business.
The leaders should be flexible enough and except the changes in an organization which
help in growing the business in the proper manner. If they are inflexible they are not able to cope
up with the different situation that will arise. Leaders should know what is happening and on that
basis only the decisions are to be taken in a proper manner so that organization will not get
affected.

Situational leadership: It helps in changing the style as there is the change in the
colleague’s style. There are foul leadership styles which are met by the four levels of the people
in the organization. It helps in developing the skills and helps in knowing whether they are
motivated in the organization or not on that basis the decisions are to be taken. Leader should
help the employees with the little things and helps them in completing the task in the proper
manner so the goals can be achieved. If the employees are motivated then they perform their
duties in a proper manner which helps in reaching the organizational goal effectively. The hands-
off approach is used by the leaders which helps them in performing well and helps them in
increasing the skills properly in an organization. The motivation in the environment helps in
reaching the goals as the leaders or the supervisors they create their own positive environment in
which the situational approach helps in building the morale in employees and helps them in
motivation to work together in a team. If the environment is positive the employee will retain in
the organization for the long period and the company may have the high turnovers in which the
recruiting, training takes place in an organization.
Create urgency: If the change arises then the company should agrees on it in the proper
manner. Developing change helps in increasing the business in the proper manner. The changes
mostly occur when there is the start-up. It also helps in giving the speech by which the
employees so that the customer get convinced easily.
Create a powerful coalition: The change is important in an organization and this is to be
understood by the person which helps in achieving the growth and will accept the changes so the
company may earns the profit in the future (Jędrzejka, 2019).
Create the vision for the change: When the organizations get start there are the many
ideas that come into the mind of the individual and should use the idea which are clear enough
and provide growth to the company and should be accepted by the leaders in a proper manner.
Communicate the vision: After the vision is selected the ideas the people should have the
clarity in the mind and should discuss with the workers so that they can perform better and learn
new things and this change may give the growth to the organization in a proper manner which
helps in achieving the targets in the future.
Remove obstacles: The obstacles that come in the way should be removed carefully and
on time so that they do not affect in the future and person can reach its goals easily.
Unfreezing: The change will become unfreeze when there is proper communication in the
organization.
Changing: The changes occur in the organization helps the employees to face the reality
and come in the competitive market.

Refreezing: It is a stage when the individual practices the new techniques and should work on
them so that they are in fluency of adopting the new techniques and do not go back to old ones
(Meintjes and Hofmeyr, 2018).
Transformational leadership: Transformational leadership style is a style which helps and leader
to transform their followers with the help of their inspirational and charmistic personality. To
accept changes in the organisation it is essential for various leaders to adopt transformational
leadership in order to transform their employees to accept changes which are taken place in
the organisation. It is very essential to supervise them in such a manner that they are ready to
accept various changes which are required in the organisation for success.
CONCLUSION
From the above report it has been concluded that the organization growth helps in
achieving the targets and helps in improving the skills so that the company may earns the profit
in the future. The impact on the strategies is studied and their difference which helps in knowing
the actual position and the SWOT analysis helps in indentifying the actual position of the
company.

REFERENCES
Books & Journals
Aboelmaged, M. G., 2018. Knowledge sharing through enterprise social network (ESN) systems:
motivational drivers and their impact on employees’ productivity. Journal of Knowledge
Management.
Behrens, M. and Helfen, M., 2019. Small change, big impact? Organisational membership rules
and the exit of employers' associations from multiemployer bargaining in G
ermany. Human Resource Management Journal. 29(1). pp.51-66.
Brekke, A. A., 2018. Changing practices-a qualitative study of drivers for change in Norwegian
museums and archives (Doctoral dissertation, University of Leicester).
Elliott, I. C., 2020. Organisational learning and change in a public sector context. Teaching
Public Administration. 38(3). pp.270-283.
Galati, A. and et. al., 2019. Drivers affecting the adoption and effectiveness of social media
investments. International Journal of Wine Business Research.
Gölzer, P. and Fritzsche, A., 2017. Data-driven operations management: organisational
implications of the digital transformation in industrial practice. Production Planning &
Control. 28(16). pp.1332-1343.
Jędrzejka, D., 2019. Robotic process automation and its impact on accounting. Zeszyty
Teoretyczne Rachunkowości. 161(105). pp.137-166.
Meintjes, A. and Hofmeyr, K., 2018. The impact of resilience and perceived organisational
support on employee engagement in a competitive sales environment.
Sebastian, J. and Allensworth, E., 2019. Linking principal leadership to organizational growth
and student achievement: A moderation mediation analysis. Teachers College
Record. 121(9). pp.1-32.
Smart, J. R., 2017. Collective impact: Evidence and implications for practice. Melbourne:
Australian Institute of Family Studies.