Understanding and Leading Change in Organizations

This report explores the impact of changes on organization strategy and operation, as well as the drivers that affect leadership, team, and individual behavior. It also provides measures to minimize the negative impact of change on organizational behavior.

Unit understanding and
leading change
TABLE OF CONTENT
LO1..................................................................................................................................................3
P1 Impact of changes on organisation strategy and operation....................................................3
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LO2..................................................................................................................................................5
P2 Internal and external drivers impact on leadership, team and individual behaviour..............5
P3 Measure to minimise negative impact of change on organisational behaviour......................8
LO3..................................................................................................................................................9
P4 Different barriers for changes and their impact on leader decision making...........................9
P5 Different leadership approaches for managing changes.......................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
There are various changes in external environment that adversely impact on functions of
enterprise so that need to be considered for effective operation of business. All such changes
may act as threats or opportunity for organisation thus they need to be evaluated so that company
can expand its business and market share. Changes in environment impact on strategy and
operation of business and external, internal driver of changes influence leadership, team and
employees behaviour within particular organisation. Various leadership approaches can be used
to deals with various changes that happening in external environment for achievement of
company goals. This report is about understanding and leading changes in environment so that
firm can gain competitive advantages in the industry through satisfying need of customers in best
possible manner. It also evaluated various measures that can be taken to minimise negative
impact of change on organisational behaviour. At last different barriers of change and the way it
influences leadership decision making as per organisation.
LO1
P1 Impact of changes on organisation strategy and operation
Continuous development and growth of technology and change in customer taste, preference
has influence organisational strategy and operation of business. It can be illustrated through an
example of company name Jessop Group limited that is subsidiary of Snap Equity Limited. Due
to change in customer preference and technology company has to face tough competition and
decrease in market share. It was noticed that traditional film printing declined to 30% every year
which possess threats on growth and survival of Jessop group (Ropo, 2019). Another company
named Enterprise rent- A- Car that has continuously adapted to various external changes to
maintain its position in the heart and mind of customers. Jack Taylor has established company
with an motive that people will like to get benefit of leasing cars rather than buying them which
provide opportunity to company to satisfy need of people. The way changes impact on strategy
and operation of both companies can be illustrated through use of Bohner and Arnold Change
Impact Analysis. Changes impact analysis was developed by Bohner and Arnold that state
individual must identify various potential consequences of changes to bring modification within
organisation so that it can differentiate itself from other competitors in the market. There are
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types of Impact analysis techniques that can be used to analysis and evaluate impact of changes
on both organisations. Such as:
Traceability: Company by continuously monitoring and tracing various changes in external
environment can adapt to changes and bring new innovation in the industry to fulfil unsatisfied
needs. Such as Jessop Group Limited by tracing potential legislation that government may make
to protect environment and people living in the society is able to get advantages over others.
WEEE regulation was imposed to reduce amount of electric wastage so Jessop by contributing in
fund of WEEE and setting convenient battery recycling points at its stores is able to meet
government and customers’ needs (Huang and et.al., 2017). Company also trace economic
condition of UK which was facing situation of recession, low disposable income that resulted in
low sales volume of camera has been decreasing. Sales margin of hardware are also reducing so
Jessop group has formulated multi channel strategy such as use of online and physical stores. It
has also expanded its products portfolio to meet needs of number of customers. Company has
also trace customer trends and demographical structure to provide services to younger generation
and professional photographer. Use of innovative technology also helps Jessop to bring new and
innovative changes with firm such as print image can be taken from social media. On the other
hand Enterprise Rent-A-Car main objective was to offers qualitative products and service to
customers in order to earn large amount of profitability. Therefore, with changing environment
Enterprise Rent-A-Car decided to acquire Burnt Tree Vehicle Rental to gain competitive
advantages through satisfying needs of large number of customers (Keller and Schaninger,
2019). Company by tracing performance of another company have decided to acquire other
company that have strong, unique resources and brand image which help both firm to satisfy
needs of large number of customers. Therefore continuous monitoring and supervision helps
company to grow and expand its business across nation.
Dependency: It is another types of impact analysis which explains relationship between variable
and parts thus clearly define who and what are depend upon each another’s. Jessop group has
effectively evaluates variable that are depend upon each other such as changes in technology also
changes customers preference. Therefore company has adopted innovative technology to provide
better customers experience (Baporikar, 2017). UK is facing situation of recession thus income
of people are reduced so it has directly impact on sales, strategy and operation of firm. Therefore
Jessop has launched wide varieties of products, innovative technology to deliver service within
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limited time that influence people to make purchase of products of company over other
competitors. Enterprise Rent-A-Car also identify interrelationship between various variables so
that company can grow and expand its business across nation. It identify various customer trend,
economic condition, political situation that impact on sales volume and profitability of
organisation. Identifying of all such factors helps in effective operation of business and
achievements of goals (McGrath and et.al., 2016). Therefore, interrelationship among various
factors impact on strategy and effective operation of business in the environment.
Experiential: Some companies use their experience to analysis of impact of specific activities
on firm strategy and operation. Past experience of similar situation, activities performed helps in
identifying correct steps that lead to effective performance of operation and steps that need to
improve so that predetermined goals can be achieved. In initial stage of Jessop group and
Enterprise Rent Company have limited resource and employees thus offer few products and
services to customers so this experience explains both company about taste and preference of
target market, innovative in technology and unsatisfied needs of customers (Baporikar, 2017).
Enterprise rent has effective working culture that helps in motivating employees to work hard so
company use similar culture when it acquire another firm for effective performance and
productivity. Therefore both companies by using their previous experience formulate effective
strategy and operation that need to be taken so that they can earn large amount of profitability
and market share.
LO2
P2 Internal and external drivers impact on leadership, team and individual behaviour
There are various internal and external drivers that impact on leadership, team and
individual behaviour of both organisations. Driver of changes refers to external and internal
factors or component that shape organisation such as strategy, products and services, design,
plans and operation of business (Trevitt and et.al., 2017). Therefore different driver of changes
that impact on leadership, team and individual behaviour of Jessop group and Enterprise Rent A
Car are as follows:
Burke Litwin Model : 12 Elements
External environment: Change drive may be external to environment that impact on individual,
team behaviour and leadership styles within organisation. Therefore various external change
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drivers such as policies of government, economic condition, technology innovation and change
in customer trends. These environmental changes are considered by both companies such as
Jessop group and enterprise rent A car to protect itself from various threats and take advantages
of opportunities that are available in environment (Holopainen and et.al., 2019). Such as Jessop
and Enterprise rent a car changes its policies, procedure of work and trained employees as per
various changes in external environment so that qualitative services can be render to customers.
Mission and vision: Both Jessop group and Enterprise have mission to increase their
profitability and gain competitive advantages through satisfying need of customers. Enterprise
rent A car have a vision to provide benefits of leasing cars rather than actual buying them.
Therefore leaders of companies provide guidance and direction to other employees on the basis
of set objective of organisation. Performance of employees are improved so that company is able
to achieves its desired mission and vision and get competitive advantages in the industry.
Leadership: Both companies change its leadership styles as per environmental condition to
motivate and influence large number of employees to enhance their performance as per changes
in environment (Kovačević and Hallinger, 2019). Contingency leadership is adopted by leaders
so that change can be easily brought within firm to motivate people so that company can achieve
its objectives.
Organisational culture: It is another changes driver that impact on leadership, team and
individual behaviours such as acquisition of another company by Enterprise rent A car has
impacted on interrelationship between employees. Roles and responsibilities have been changed,
leaders have to use innovative styles to effectively managed large number of employees that
have different culture. Change in organisational structure has effective impact on team work as
different employees are added to team that have similar knowledge and skill. Manager of Jessop
also motivated and trained employees so that they can learn new things and enhanced their
knowledge thus it has impact on performance and productivity of individual and people working
as a team.
Structure: As organisation operation Increases firm tries to develop definite organisational
structure so that various employees can be effectively controlled and managed by top
management toward accomplishment of particular task. Enterprise rent a car has acquired burnt
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trees vehicles rental so it have to redesign its organisational structure thus redistribute roles and
responsibilities of each individual within firm (Bodine, 2019).
System: These are certain rules and regulation that need to be adopted by company for smooth
operation of business. Thus due to increase awareness among customer about environment
pollution it force companies to take steps for protection of environment and better health of
people. Jessop has made system to effective perform various function through use of innovative
technology so that need of customers are fulfilled. On the other hand Enterprise rent A car has
followed procedure to satisfy need of both customers and employees thus provide better
customer services and enhance its market share.
Management practice: Management practice is another change driver that impact on
organisational behaviours such as manager of Jessop has changed technologies to be used,
enhance skills and knowledge of employees. Thus, it helps in effective motivation and
inspiration to various employees to improve their performance so that objective of company can
be gained (Cheng, 2017). Manager of Enterprise rent A car has plan strategy to arrange
continuous meeting, provide open and transparent communication, good working environment so
that they can be influenced to work hard.
Work climate: Both companies have provided good and changing working environment so that
employees can easily adapt to different changes and helps in growth and success of organisation.
Good and better working environment improves performance and productivity of employees and
creates highly dedicated employees to work effectively.
Skills and task: It also influence behaviour of leader, individual and team member that are
working in the organisation. Task and responsibilities assign to individual and team member as
per their capabilities and skills in Jessop and Enterprise rent A car so that they can easily perform
different function and activities (Storey, 2016).
Individual values and needs: Every individual have specified needs and requirements that need
to be satisfied by employers of firm. Enterprise rent A car has give priority to effective satisfy
requirement of existing employees so that it can gain competitive advantages. Jessop Group also
have provide good working environment, training and compensation for retention of employees
within organisation.
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Motivation levels: Some of the employees get easily motivate from particular things whereas it
take times for other to motivate so that they can perform best. Therefore leader and manager of
Joseph and Enterprise rent a car motivate people as per their need and requirement to get
maximum output.
Individual and general performance: Different individual have different skills, capabilities to
perform specific task so that leaders assign task as per skills and knowledge of individual. Some
of the employees of companies find difficult to perform function whereas other easily complete
task.
Experiment and innovation: Companies make experiment in order to bring new innovation
with organisation so that it can provide better and qualitative services to people. Jessop group
and Enterprise Rent A car in initial stage experiment to launch new products and services,
innovative technology to deliver product to customers that result in best outcome. So company
planned to expand and bring new innovation such as Jessop has launch photo book that can
collect large number of images (Abubakar, 2018). At the same time Enterprise rent A car acquire
Burnt Tree Vehicles Rental to expand its business and earn large amount of profits. Therefore
both experiment and innovative ideas bring changes in organisation by increasing knowledge and
skill of employees to work together as team for common objectives.
P3 Measure to minimise negative impact of change on organisational behaviour
Companies need to take effective measures to minimise negative impact of change on
organisational behaviour such as:
Clear explanation about change: Jessop Group has clearly explained its various changes in
strategy and operation to each and every employee so that they can prepare themselves to offer
qualitative products and services to customers. Such as use of online sites, expansion of product
portfolio information was provides to employees through training and development. Thus it
helps in enhancement of knowledge and skill of individual so that they can perform their work
effectively (Bengtsson and Raza-Ullah, 2016). Enterprise A Rent has also clearly explained that
it is going to acquire another firm to increase its resource and brand image which motivate
employees to bring changes within organisation.
Company has determined its impact: Determination of impact of change in advance has
helped both enterprises to cope with sudden change and gain competitive advantages in the
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market. Companies have informed employees that by accepting change both individual and
company will grow and success.
Supportive structure: To minimise negative impact of change on organisation both companies
have provide supportive organisation structure so that employees can easily perform their work.
Effective communication and encouraging ideas of employees helps in effective adaptation of
changes (Bodine, 2019).
Training: Training and development program are organisation by firms to enhanced knowledge
and skills of existing individual so that they can effective perform particular functions within
company.
Change process: Top management of both companies continuously monitor performance of
employees, the way they adapt to various changes, area that need to be improved for growth and
survival of business. It also helps in minimising negative impact of changes as manager
supervises each and individual activities and set goals that need to be achieved.
LO3
P4 Different barriers for changes and their impact on leader decision making
Various barriers need to be faced by manager and leader of company while accepting
different change in the organisation that influences leader decision. Force Field Analysis can be
used to identify different barrier faced by companies while incorporating changes in the
organisation. There are various change in environment such as customer need and wants
regarding particular services, improve performance of employees, raise volume of output,
effective management of cost (Bengtsson and Raza-Ullah, 2016). While implementing various
changes organisation faced different challenges thus leader take appropriate steps and decision to
accept such changes. Jessop has to launch new and innovative products, technology to deliver
services whereas enterprise rent have to establishment effective organisation culture after acquire
of another firm.
Staff member have to spend high time: Staff of company resists such changes because they
think team member have to invest more amount of time for particular project. Therefore Jessop
and Enterprise Rent a car leader motivate and influence employees to put their best for their
personal growth and company success.
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Frightened to use innovative technology: Most of the people hesitate to use innovative
technology so that they resist bringing new change with organisation. Thus, Jessop has effective
provide training and development program to people so that they can easily use innovative
technology to manufacture and deliver products and services to customers.
Working environment and ineffective management practices: Individual also resist changes
due to ineffective working condition is provided to them to perform different function that
leading dissatisfaction among employees. Management practice also act as barrier in effective
brining of changes as people are not able to coordinate with one another. Jessop and enterprise
Rent a car has provided effective working environment, proper resources and technology so that
they can satisfy need of customer in effective manner. Culture of two organisations has adopted
by Flex-E-Rent while operating its function in order to motivate and influence people to work
hard for growth and success of organisation.
Ineffective communication: Employees also resist bringing changes as there is ineffective
communication between employees and leaders of organisation. It lead to ineffective
coordination and delay of work, activities thus create barrier in effective implementation of
changes within organisation. Therefore leader of both companies decided to bring new change
through promoting open clear, transparent communication between employees. It also helps in
bringing new ideas and innovation with organisation and achievement of company goals
(Baporikar, 2017). Leader also provides guidance and assist individual to work in particular
manner in team for effective coordination and communication between employees. Therefore it
can be stated that all such act as barrier in bringing new changes but company can remove its
through use of innovative strategies and ideas within firm.
P5 Different leadership approaches for managing changes
Leadership style plays a significant role in successful management of changes. These
styles may influence the drivers as well as resistance towards the change. Thus for organisational
success and effective management of changes it is necessary that leaders must evaluate diverse
leadership approaches.
Autocratic leadership: In this approach leaders have complete control over the team members
and do not accept the perspective of team members. This approach does not have any flexibility.
Thus in organisational situations when there is need to implement immediate changes such as
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change in technology autocratic leadership can result in quick change implementation. The
leaders of Jessop and enterprise Rent a car can use autocratic approach to eliminate all resisting
forces and to implement change with immediate effect for gaining competitive advantage.
However with autocratic approach there are also possibilities that team members may oppose the
changes and organisation may find it difficult to gain support of followers in managing large
scare changes.
Democratic approach: It is also known as the participative approach in which leaders work in
collaboration with team members. One of the advantages of using this leadership approach is that
since all individuals’ works in collaboration it becomes easy for the leaders to identify and
resolve barriers and risk in change management(Kovačević and Hallinger, 2019). Though it can
slow down the change implementation process but in long term it can have more productive
outcomes for the organisational outcomes.
Transformational approach: In this approach leaders work with the team and also provide them
guidance so that changes can be easily implemented through motivation and inspiration. This
approach can be considered as highly effective because in this approach leaders can easily
overcome the resisting forces of change. Since with transformational approach changes are
implemented with minimum resistance leaders can use this approach to implement changes at
large scale. Leaders who follow transformational approach can easily inspire the team members
and thus changes are managed in more effective manner. In long term it results in better
outcomes of change management because team members provide active participation in
implementing change process.
Transactional approach: In transactional leadership approach leaders set standards for
performance for followers and when followers achieve goals they are provided with suitable
rewards as means of motivation. The leaders with transactional approach may find it easy to
implement change. For this type of leaders it is vital that they must convince their followers
about the benefits of change. Thus when followers are able to identify the benefit and
requirement of the proposed change they make full efforts for successful implementation of the
change (Bengtsson and Raza-Ullah, 2016). However this approach can sometime impose a
limitation as during urgent needs leaders of Jessop Group may not be able to successfully
convince the need of changes to their followers.
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CONCLUSION
From the above report it can be concluded that there are various changes in environment
that are to be identified by organisation for smooth operation of business and various activities. It
can also be stated that changes in external and internal environment adversely impact on
organisation strategy and operation. External and internal driver of changes influence leadership,
team member and individual behaviour in an organisation. Different measures are taken by both
enterprises such as Jessop group and enterprise rent A car to minimise negative impact of various
changes on organisational function. From the above analysis it can be concluded that there are
various barrier in implementing change within organisation so they need to be removed for
growth and success of enterprise. Leader of both companies used various approaches to motivate
and influence different individual for maximum utilisation of their capabilities and skill thereby
it helps companies in gaining competitive advantages and increasing its market share.
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REFERENCES
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Kovačević, J. and Hallinger, P., 2019. Leading school change and improvement. Journal of
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