This document explores the impact of change on JD Sports' strategy and operations, the drivers of change, and how internal and external drivers affect leadership and team behavior. It also discusses different types of organizational change and their effects on leadership.
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Understanding and Leading Change
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Table of Contents INTRODUCTION...........................................................................................................................1 LO1..................................................................................................................................................1 Organisational examples where there has been an impact of change on an organisation’s strategy and operations...........................................................................................................1 Drivers for change in an organisation and the types of organisational change they have affected...................................................................................................................................7 LO2.................................................................................................................................................7 Ways in which internal and external drivers of change affect leadership, team and individual behaviours within an organisation..........................................................................................7 Theories and models to evaluate organisational response to change...................................11 Conclusions and recommendations with valid justifications for planning effectively for change and applying change impact analysis.......................................................................12 LO 3...............................................................................................................................................12 Different barriers for change and how they influence leadership decision-making............12 Force field analysis to analyse the driving and resisting forces and how they influence decision-making...................................................................................................................13 Evaluation of use of force field analysis in the context of meeting organisational objectives15 LO 4...............................................................................................................................................17 Leadership approaches to deal with change.........................................................................17 Extent to which leadership approaches can deliver organisational change effectively........19 CONCLUSION..............................................................................................................................21 REFERENCES..............................................................................................................................22
INTRODUCTION Understanding and leading Change is process in organisation need to adopt different changes for sustaining within the market for longer period of time. It is mainly prepared to deal with the situation where company faces the problem at the time of implementing new plans and policies. It is necessary because it helps to reduce unnecessary expenses by introducing the latest technologies which can complete any of the task in short period of time. The chosen organisation for this respective assignment is JD Sports which is one of the UK based multinational organisation. Current company is dealing in the sports products. The headquarter of company is located in Bury, United Kingdom. In context of the file, some of the topics which are going to be discussed will related with changes that impact on the organisational strategy and operations. Internal and external drivers will be discussed that affect leadership. Also, various leadership approaches will be explained just to deal with the changes. LO1 Organisational examples where there has been an impact of change on an organisation’s strategy and operations. In present scenario, it is necessary for any of the company that they must focus on preparing the plans and policies for the purpose of achieving the goals of an organisation. If any of the organisation is able to prepare suitable form of strategy then they can easily compete with their rivalry firms. In context of JD Sports, they are required to adopt the changes in modern environment by delivering the needs of customers which they requires from the company. It is necessary for company to use latest technologies while manufacturing the products so that company can easily attract the new customers towards the company(Espedal, 2017). Forthe purpose of understanding about the changes on an organisation's strategy, comparison has been done between JD Sports and Sports direct. These both companies are leading the sports market from the front. Organisatio n Changes- PEST/SWOT Driversof change Impact on strategyImpactof operations JD SportsPolitical Changes:Here,externalJust because of theAsbrexithad 1
Justbecauseof Brexit,eachand every market has beenaffectedas people are unable tospendhigher amount of money onanyoffthe productdueto whicheconomy havereduced significantly. Also, the prices of any of the sports productshave increased significantly. Eventhereisa hugefluctuation in currency which haveahuge impactonthe performance of a company.By looking at this all someofthe changes has been made in strategies (HLatham, 2013). changesshould bedonewhich willberelated withthe followingof lawsand regulations. politicalchanges companyhave changed the whole structureofthe company in which theyareproviding theproductsata verylowpriceto theircustomers whichishelping themtosustain withinthemarket place.. createdlotsof problemforthe organisation,here theyhave introducedthe online sale of their productforthe purpose of saving unnecessary expenseswhich occursondaily basis. Sports Direct Political Changes: As company also Thisdriveris related with the Bylookingatthe situation of market, Todealwiththe problemwhich 2
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dealsinonline market but whole ofUKdepends uponthemarket ofEurope.The saleofcompany has been reduced and even they are unable to generate the revenue which theyarewilling justbecauseof Brexit.Itis necessaryfor companyto introduce some of thestrategiesso that they can deal with the situation for the purpose of sustainingwithin the market. Theonlineretail businessinUK dependsgreatly onEuropean market. internal changes werepolicies and structures is neededtobe changed. companyhave changeditsplans andpoliciesin whichtheyhave startedtogive productincluding differentcombo. Even combo will be givenata reasonableamount through which sales canbeenhanced automatically (Wellman,Jeffries and Hagan, 2016). company is facing theyhave introducedmore numberservices for their customers such as they have thestartedonline paymentoption which is beneficial forcustomersin saving the time. JD SportsEnvironment change:In presentsituation, theeffectof Itisinternal driver in which itbecomes importantfor For the purpose of preventingthe environment, company had taken In order to sort out theproblem relatedtothe environment 3
harmfulgasesis increasingand creatinglotsof problem and it is one of the reason thatpeopleare giving more focus onpreservingit. The main motive ofpeopleisthat how they can only use those products sothatthey doesn't create any problemforthe environment.By looking at this, JD sportshave adoptedsomeof thechangesin theiroperation andstrategies (Eddy, 2012). theorganisation to deal with the resources which they purchase. theinitiativethat they will try to use minimumquantity of wooden material so that there will be lesschancesto affectthe environment.Also theyhaveplanned toutilisethe resourcesinbest possible manner so thatresourcescan beusedin systematic manner. companyhave takenpartsin numberof atmosphere initiativesalong withadoptionof sustainable business operations. It will helpcompanyto re manufacture the products which is possibleinsome of the cases. Sports Direct Environment change: Nowadayspeople aremore conservative wheretheygive focusonsaving It is also the part ofinternal driverswhich willdescribe that how any of the company set uptheir Here,company haveplannedthat theywillfocus moreoncashless payment because it willgivethe opportunity to save In this, company is taking the help of sixsigmawhich canhelpto eliminatethe wasteproduct. Also,toadopt 4
theenvironment and for that they havereducethe useofthose productwhichis harmfulfor environment.By lookingatthe currentsituation of market, Sports Directhave implemented someofthe changesinthere operationand strategies. organisation culture according to the requirementof environment. the trees. Also they areplanningto recycle the products sothatcompany will have the option toutilisethe resourcesinbest possible manner. thoseresources whichdoesn't affectthe environment. This willhelptosort outtheproblem relatedto environmental issues. JD sportsTechnological change: Nowadays technologiesare becomingcrucial factoras technologiesare upgradedregularly that impacts on the company's strategiesand operations. Internal driver of technological change is impact of technology on privacypolicy thatfacilitates alterationsin existing one. In order to face the technological change acompanyshould anticipatedin alterationsinJD's existingpayment platform. Thecompany anticipatedin customer experience programmesto bringseffective changesin operations. Sports directTechnological change: Itisapartof internaldrivers thatwillshows Here,thecompany focusedonbrining automation in sports Thecompany focusedonthe updationof 5
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Automationin technologiesare rapidly takes place inthesports industrywhich impactsonthe company's strategiesand operations. thathowthe companysetup their organisational operationsand activities accordingtothe requirementof technological automation. technologiesfor acceptingchanges positively. hardwareand software technologiesto successfully accept thetechnologies changes. JD sportsSocial change: thetrendsand preferencesof customersare rapidlychange whichimpactson thecompany's strategyand policies. Itreferstothe internaldriver whichbecomes essentialforthe organisationto dealwiththe societal expectations. The company brings changesintheir strategiestomore emphasisedon researchand development activity tocollectmarket information. Successofthe companyisbased on the meeting fast changing requirementsof consumersacross the world. In order tothattaking innovatingsteps helpsincovering large market area. Sports directSocial change: Recent market era is depend upon the trends, taste as well aspreferencesof societyasthey wantnewthings that impacts on the company's Here,external changesshould bedonewhich willberelated withthe followingof requirementsof customersor society. Thecompany requirestodevelop moveprogram whichhelpsto welcomethefull contributionof staff'saswellas promote opportunitiesto Thecompany requiresleadership activities and create thepeople initiativesto promote a common fitofbeliefthat causethe company'sspirits 6
strategiesand operations. developtheirskills to facilitates as per thecustomer requirements. and cultures. Drivers for change in an organisation and the types of organisational change they have affected. There are two types of changes and they are internal and external which directly impacts on the working style of a company. Talking about internal changes, it is related with rules and regulation of different laws such as contract law, employment law, working behaviour and many more. External factors related with change in rate such as inflation rate, interest rate, fluctuation in currency and many more. Types of organisational changes Transformational change: It is one of the changes which helps business organisation to adopt the changes in best possible manner through which company can take different types of benefits. In case of JD Sports, company can easily remove the additional number of employees which will give them the support to invest the capital in different areas(Ferkins, Erakovic and McMorland, 2015). Remedial change: It is the change which is required within the business organisation when there employees are unable to perform better for achieving the goals of an organisation. In context of JD Sports, they have the option to conduct different types of training session for employees so that perform their task as per the requirement of company. LO2 Ways in which internal and external drivers of change affect leadership, team and individual behaviours within an organisation In any of the business organisation, leaders helps to work in systematic manner because they are one who guides that how any of the company is required to work work while adopting any of the internal and external changes. There are number of internal as well as external drivers which can directly influence the team as well as leaders. Below some of the internal and external drivers has been discussed. 7
ChangeInternal/ external Impacton leadership behaviour Impactonteam/ departmental behaviour Impacton individual behaviour Measuresto minimise negative impacts InternalFinancial Manageme nt Here,leaders willsufferat thetimeof implementing the changes. Itbecomes difficultto performthetask asperthe requirement of top level management as proper facilities arenotbeing provided to them. The motivation level reduces automaticall ybecause company themselves suffering from number of issues due towhich theyare unableto deliverthe services whichthey want to give for company. In this situation, itisnecessary for the company thatmusthave sufficient amountof capitalsothat leader can give theirbestto adopt any of the changes without givinganyof thefocusto financial resources. InternalResourcesIfresources willnotbe Available then itwillimpact leaderson leadersas thereconcept of dealing with Thiswillnot allowthemto utiliseeachand every segments in systematic manner which will reduce theperformance of teams and even As resources are not availablein the company which means that employees Itisnecessary for the company likeJDSports thattheymust focuson expansionof communication systemwithin 8
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anyofthe subordinate changesand even they will not be able to dealwithany ofthe employeesas perthe requirement of a company. outcomewillnot negative. willnotbe capableof performing their task as perthe requirement andskills and knowledge willnotbe enhanced. the company. It willhelp employeesto discussabout thesituation wherethey mightfacethe problem.In short,itwill help to sort out anyofthe problemwhich isbeingfaced byemployees while implementing thestrategies and it will also givethemthe ideatothat resourcesare neededtobe utilised. ExternalPoliticalLeaders suffers becausethey are required to changethe plansand policiesin veryshort period of time Burdenincreases aspoliciesare beingchangedin every short period oftime.This situationbecomes hectic for team to achieve the target. Individual suffersinit because their skillsand knowledge are needed to beupdated inevery Itisnecessary forcompany likeJDSports thattheymust involvetheir employees while taking any of the decisions 9
whichdoesn't allow to settle them. shortperiod of time. relatedto adoptingnew changesin strategiesand operation.This willhelp employeesto understandthe requirementof changesand secondly it will be easy for them to adopt it fast andinpositive manner too(Linesand et. al., 2015). In addition, it will allowcompany todevelopthe healthy relationship among employeesand management. ExternalEconomicalHere,leader willnotbe able to provide theservices and rewards to employees The team will not be able to perform the task as per the requirement because output of theworkisnot Individual workfor rewardsand incentives which means that Asnumberof problemare thereandto resolvethis particular problemitwill 10
because chancesof generatingthe profitfor companyis very less. being achieved.employees willnotbe able to give their best. benecessary thatgroup discussion shouldbe increased amongthe employees. (Source : Drivers of change, 2019) Theories and models to evaluate organisational response to change For the purpose of understanding and responding to the changes in an organisation, it will be important for company to use system theory. It is one of the theory which will help company like JD Sports because it will directly help to reduce the negative effect of changes which has been adopted by the company. It will also help organisation to sort out any of the issues which are being faced by employees during the course of performing business operations. According to this theory, it is necessary for JD sports to depend upon number of government rules as well as policies which has been formulated by the company(Raziq and Maulabakhsh, 2015). Even it will 11
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help sort out any of the issues as well as grievances of employees which they might face on regular basis. Also, there are some of the negative impact of this theory because it focuses on those sections of a company which help to stabilise the system and other will be ignored. Conclusions and recommendations with valid justifications for planning effectively for change and applying change impact analysis From the above discussion, it can be be easily understood that business organisationare always affected just because of internal and external factor and it is necessary that decision should be taken by considering each of the factor. In context of JD Sports, internal drive can help company by managing the resources, capital and many which can directly enhance the revenue of a company. Even external factors like economical, political, technological can help company to determine the changes which are being made outside the company due to which company can easily compete within the market. Some of the recommendations are given below for the future benefit of a company. It is necessary for organisation to discuss with different level of employees while adopting any of the changes because it will help them to work easily as per the requirement of a company(Saleem, 2015). It is necessary for the manager of JD Sports that he must able to detect that what are the changes which company can see after implementing the changes because it will help to accomplish the goals of an organisation. LO 3 Different barriers for change and how they influence leadership decision-making As from the preceding discussion it has been seen that changes within organisation is essential in order to operate all the business activities as per the current market. But while espousing changes in the business functions various barriers have to face by the organisation which lead negative impact on the performance andleadership decision-making which can be determined by below give points: Lack of employees involvement:It is most basic issue that have to face by an organisation at time of implementing changes. This is happen because employees always have fear of doing more efforts and giving more time in understanding new ways of working. In order to cope up with this issue leader of JD sports requires to formulate effective decisions related to 12
increase the involvement of employees by welcoming their opinion sin decision-making process so that the motivation and interest of them can be maintained in achieving the organisational goals and objectives(HLatham, 2013). Improper communication:It is refers to the lack of free communication channels with the organisation. In order to remain employees focused towards the changes leaders of JD sports must considering effective communication medium so that free flow of ideas and thoughts can be maintained. Organisational complexity:It refers to that when an organisation design and develop a complex process related to planning as well as implementing changes. It is required to overcome from this barrier JD sports introducing a keen and skilful techniques to handle the organisational complexity and fast growth. Unknown current state:Changes are difficult for a business organisation as it lacks the idea of their current state. In order to tackle that barrier JD sports required to introduce alterations without conducting assessment as well as understanding the existing blueprint of a firm. As each and every customer have different choice, need and perception which makes essential for management of JD sports to adopt required changes in their organisation so that they can meet up with every customer demand effectively. For this, they needs to stay focused towards bring changes in existing products and introducing new products in marketplace as it will enables them in attracting various customers in their products and services. Along with this, it is essential for the business organisation to evaluate the factors which have impact on change process so that they can conduct all the operations appropriately (Wellman, Jeffries and Hagan, 2016). For this they can use Force filed analysis model which is define below. Force field analysis to analyse the driving and resisting forces and how they influence decision- making Forcefield analysis:It facilitates the structure for analysing the forces that determine a situation or condition. This theory is in used when a problem is aids in equilibrium through fundamental interaction between two anti sets of factors those effort to driving as well as restraining forces. Driving change refers to promote changes whereas restraining forces used to holding the position. 13
This model is very helpful for JD sports as it will help them in ascertaining the helping factors and hindering factors of changes. The detailed exposure of this model is given beneath: Forces against changes:- Increasingcost:-Adoptionofchangeswithintheorganisationlikeinnovative technology, digitalisation methods, web conferencing etc. will increase the overall cost of thebusinessasbecauseoftheirinstallationchargesandconductingtrainingand development programs for the employees. More labour turnover and absenteeism:-The consideration of changes in the business also results in losing employees interest and motivation as they have to give their more time and efforts on it(Espedal, 2017). Due to this, higher increment in employees turnover and absenteeism issue have to face by the organisation which direct lead negative impact on the organisational position and success. Forces in favour of changes:- Customers want new product:-As JD sports dealing in high quality products due to their customers are always seeking to take advantage of their new development which helps them in attaining higher profitability and recognition in the marketplace.Governmental support:-Due to higher social activities JD sports organisation is always able to gain government support in developing new product in the marketplace or 14
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adopting changes in organisation. For example, government provide them tax relief for launching new product in the marketplace successfully without any crisis. Advantage and Disadvantages of force field Analysis. Advantages It will help organisation in enhancing the communication process within the JD Sports which will be beneficial.The main advantage of force field analysis is that it helps to provide visual summary all the factors through which decision making process becomes much and more easy. Disadvantage It is crucial that everyone should show their participation if any of the decisions are needed to be taken else it would not be so effective. Force field analysis may cause a division in the group between those who support the change and those who are against the modification. Evaluation of use of force field analysis in the context of meeting organisational objectives In current scenario, forcefield analysis is one on the techniques that can be adopted by the company because it can be one of the option which can help business organisation as well as employees to achieve their goals within the specific time period. Also, it is they type of technique which can be easily adopted by the business organisation. While talking about JD Sports, Forcefield analysis can help them to deal with any of the situation which arises in front of them in best possible manner because it has the potential impact to reduce the complexity of a situation. Approaches to Managing Resistance to Change ApproachSituationAdvantageDrawbacks CoercionIt is one of the situation which is used within the JD sports where changes are required to the done invery short period of period without considering any of the factor. Themainadvantage whichcanbeseen withinthistypesof changes is that any of the work process can becompletedin limited time period. It doesn't give any of thesuretythat company will be able toaccomplishtheir target as it is totally baseduponthe assumptions. ManipulationThis is the situation where JDThethingwhichisAsperarejust 15
sportswilltrytomanipulate theiremployeeswithout consideringthesituationthat how they are needed to work withinthepremissesofa company. mainly considered in it arerelatedwithcost whichcanbe determinedasvery cheaporless expensive. manipulated in it due to which there is high probability that every customers might not besatisfiedafter certainperiodof time. PersuasionHere, top level management of JDSportswillmaketheir employeesbeliefthatthe decisionswhicharebeing taken by them are for their own benefits. Asemployeescan easily believe upon the top level management in it due to which they can easily implements the changes. Ifanythinggoes wrong in it then the onewhoare persuadecanclaim thathe/shewas pressurisedbythe management. NegotiationInthis,situationmayoccur with the organisation where a powerfulgroup mayhave to lose out. This can be one of the easiestwaythrough which any of the threat can be removed which willdirectlyhelpto accomplish the goals. It is quite expensive process for JD sports andtherearethe possibilitiesthat other may also start to negotiate in any of theirrelevant situation. DelegationThisistheconditionwhere management of JD sports will delegatethepowertoother hand in which they can take the decision of own to enhance the profitability. Itishelpfulforthe purpose of delegating inthe power through whichnewideascan be generated and even workload It is one of the time consumingprocess duetowhich expensesofa companycan increase significantly. FacilitationWhiletalkingaboutthisThis allows to find thatThereisnoany 16
situation,itmainlyoccurs whereany of the employees faces any of the problem within the organisation. which employees must begiventhe opportunitiessothat work can be done in a systematic manner. surety that if work is handedtoanother personthen outcomes will come or not. In addition, it isoneofthetime consumes unnecessary time. ParticipationIncompanylikeJDSports, participationofemployeesis required in the situation where collected informations are not enoughandrequirementof additionalnumberof employeesisnecessaryfor company. Therewillbehigher possibilitiesthat relevantinformation can be collected by the involvementof additionalnumberof memberindecision making process. Thereisthe possibilitiesthat additional number of informationmight not be sufficient and alsounnecessary timemightalsobe consumed. LearningIt is crucial because it directly reflectthatthenewlearning processarerequiredinthe company for better result. It can easily enhance the capability of bring newideainthe companyandeven employeesmightbe motivated in it. It is one ofthe most expensiveprocess due to which overall revenueofa companymight reduce significantly. LO 4 Leadership approaches to deal with change In any of the firm, Leaders have the crucial role in attaining the goals of an organisation because they helps to motivate each and employees in best possible manner. Leadership is also necessary because it helps company to perform betterat the time of implementing the changes within the company. In context of JD Sports, it will be important for them to adopt suitable form of leadership style which can help to motivate employees through which they can easily adopt the 17
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changes for achieving the goals of an organisation. Below, there is the discussion about some of the leadership styles which can be implemented by the leaders of a company. Democratic Leadership:It is one of the type of leadership style which helps business organisation in enhancing the productivity of a employees. Here, subordinate are also involved at the time of taking any of the business decision (What Is Democratic Leadership, 2019). The best part of this leadership style is that it allows to improve the communication system of a company. In context of JD Sports, it will help to develop the relationship between employees and the management of a company. It will also support to implement the changes which are required for the purpose of obtaining better results in the company. Also, company can be able to retain their employees for longer period of time. Situational Leadership: It is the types of leadership style which is commonly used by number of leaders because it allow to deal with different challenges which occurs within the company. Leader have the option to use different theories and approaches of leadership which can be helpful at the time of taking any of the business decision. In context of JD Sports, it is the leadership style which can help leader to find that actual way through which they can easily employment the changes which are required for the future growth(Zand, 2015). Also, it will allow the leader to take decision as per the requirement of situation. Autocratic leadership:It is the opposite of democratic leadership in which leader make decisions without the involvement of others who reports to them. In the context of JD sports, this kind of leadership style can applied to make effective decisions and provides guidance to their followers. OHIO state leadership:It is a behavioural theory of leadership in order to analyse the observable behaviour of leaders rather then considering traits of them. There are two types of behaviour as one is initiating structure behaviour in which shows leader subordinate role, formal lines of communication etc. second is consideration behaviour in which leaders are concerned for subordinates and create a warm, friendly as well as supportive environment. Transactional leadership:It is related to the fairly reward their employees for their work performance which they perform. In the context of JD sports, transactional leadership helps in separating roles and responsibilities of each employees. 18
Transformational leadership:It is always transforming as well as improving upon the company's conventions. This is highly encouraged style of leadership among growth minded companies like JD sports as it motivates employees to see the capability of themselves. Laissez Faire:It means “let them do” in which leader embrace it afford all authority to their workers. Laissez faire leadership can empower followers by trusting them to perform work however they'd like, it can restrict the development and critical growth options of JD Sports. Among above mentioned leadership style, it will be important for the company like JD sports to use situational leadership style because it will give them the idea that how they are needed to deal with the situation which arises in front of them.Also, helps a team members or followers be able to perform better with each other. Whereas it emphasised on immediate needs instead of long term as it lack in their effectiveness as well as it is not suitable for task oriented environment of a company. Extent to which leadership approaches can deliver organisational change effectively It is important for organisation to evaluate the leadership because it will help them to find that what types of leadership approach can be beneficial in context of business organisation. For the purpose of evaluating leadership approaches, JD Sports have the option to use change management model of Lewin's which will allowimplement the changes within the workplace. Below, there is detail description about the model of change management. Lewin's Change Management Model:It is one of the model which is used by the company for the purpose of implementing the changes within the company. It the model which has been explained into three category i.e., Unfreeze, Change, Freeze. It has been explained below in detail.Unfreeze:It is the stage where leader of the company has the responsibility to motivate their employeesby making them understand that adopting the changes within the workplace will improve the result of a company(Albrecht and et. al., 2015). Here, leaders of JD Sports are using Democratic leadership approach for the purpose of adopting the changes. Change:It is second stage where company adopt the changes in the company and in this situation, it is necessary for business organisation that they must use situational leadership style so that if any of the employees having the problem with changes can be sorted out easily. 19
Refreeze:It is the last stage of the model where it is necessary for the employees of a company need to remain constant and maintain healthy environment. So, that changes which has been adopted by the organisation can help to produce better result. Effectiveness of leadership approaches and models of change management. There are different types of leadership style and as per the condition arises in the company, it is necessary that they must take decision on that basis. But, as mentioned in the above task it can be analysed situation leadership style and change management model can help business organisation like JD sports for attaining the goals of an organisation. It is also helpful for company because it will give them the idea that how they can maintain the healthy environment within the organisation(Barbara and et. al., 2017). Also, it is one of the model which helps to enhance the participation of employees at workplace but more importantly it will reduce the chances of conflict within the company. The main drawback of this model is that if company doesn't want to take support from their employees then organisation might have face number of issues in future period of time. 20
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CONCLUSION From the above file it can be concluded that it is necessary for any of the organisation to carry one the process of continuous changes because it allows organisation to perform better and compete within the market along with rivalry firms. It provides opportunity to company to earn higher amount of profit which help to motivate each and every member of the company. If company can include workforce while taking any of the decision related to implementation of changes then there is high possibilities to reduce the percentage of negative impact. Also, there are different types of leadership style and it is the choice of organisation that which style of leadership they selects for the purpose of achieving the goals of an organisation. 21
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