Analysing Change Management and Leadership in Aldi UK Operations

This report provides an in-depth analysis of change management and leadership strategies at Aldi UK. It examines the key drivers of change, including political, economic, social, and technological factors (PEST analysis), and their impact on Aldi UK's organizational strategy, leadership styles, and individual and team behavior. The report also applies the ADKAR change management model to understand how Aldi UK can effectively manage organizational changes. Furthermore, it discusses the advantages and disadvantages of different leadership approaches in dealing with change, evaluates various leadership models, and offers recommendations for meeting organizational objectives while addressing barriers to change. The analysis includes a force field analysis to identify driving and restraining forces affecting change implementation within Aldi UK. This document is available on Desklib, a platform offering a wide array of study resources for students.

UNIT-17 UNDERSTANDING
AND LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART-1........................................................................................................................................3
Overview of the organization.......................................................................................................3
PEST analysis..............................................................................................................................4
Impact on organizational strategy................................................................................................5
Impact on leadership, individual and team behaviour ................................................................6
Change management model.........................................................................................................6
Implications..................................................................................................................................8
PART-2........................................................................................................................................8
Force field analysis......................................................................................................................8
Recommendations for meeting organizational objectives...........................................................9
Various barriers in organizational change-..................................................................................9
4. How was change accomplished and how successful was it?.................................................10
5. Advantages and disadvantages of different leadership approaches to dealing with change,
illustrated by application to a range of examples.......................................................................10
6. Critical evaluation of different leadership approaches and models of change management. 11
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Organization refers to the process of grouping and identification of activities to be
performed. It also involves delegation of authority and responsibility with the purpose of
establishing relationship among the employees which enable an individual to work in order to
achieve the objectives of the company. It is framework of the duties and responsibilities which is
to be performed by the individual for the success of the organization. Organizational change
refers to the change in the strategics, structure, operations and technology. The changes in the
business environment affects the changes within the organization(Lalaounis, 2017). It is
important for the management of the company in order to analyse such changes and take various
steps and measures that is necessary for the working and functioning of the organization. The
changes made in the organization affects all the departments of the company. The changes can be
favourable and unfavourable for the company.
Organizational changes refers to the changes in the organization such as changes in plans,
policies, strategies etc. Various types of modifications can be made in the organization such as
changes in the technology and development of the employees by providing necessary training. It
is necessary to make changes so that the company can focus on achieving the objectives of the
organization(Day, et.al,2017). In order to analyse the organizational change, Aldi UK has been
taken to analyse the key drivers of change and how it has affected the organizational strategy,
leadership, individual and team behaviour.
MAIN BODY
PART-1
Overview of the organization
Strategic change is defines as the implementation of the new strategies which includes essential
elements with is different from the normal routine activities which has huge impact on the
production level of the organization. As the environment is changing at faster rate it is
important for every company to make changes in its plans and strategies. A company which
adapts the changes can make profits in a very short period. Aldi UK was launched in Great
Britain in 1990 and it is the wholly owned English registered company(Jones, and Comfort,
2019). It is a common supermarket brand of Germany and was launched in Britain in 1990. The
Aldi group consist of 35 branches and approximately 3500 stores. After being launched in

Britain, it opened its 300th stores in Great Britain. It is a discount grocery chain which operates in
32 states and it also carries 1300 fast moving grocery items.
PEST analysis
Change drivers can be defined as the conditions and circumstances which are responsible for
bringing the required changes in the operations, functioning and working of the organization.
Studies reveals that the management of the companies is helpful in understanding that changes
are important and necessary in different types of the organization. There are various external
factors which affects the operations of the company and changes in these elements requires
changes to be done in the company for the efficient management of the organization(Hevia, et.al,
2017.). The political factors existing in the country can be a threat for the company to operate as
there are various rules, regulations and restrictions of the government can be a problem for the
company to operate its business. Various political factors prevailing in UK can affect the
business structure of Aldi UK that allows the company to rethink and modify its theories,
business plans and strategies in order to analyse the change which is necessary for the working of
the company. In 2018 Aldi UK has 7.3% of the UK grocery store and due to increase in demand
of the Aldi UK many companies have to shut down their stores and lay off the employees. But
the economic factors also affects the company. Apart from this the economic factors and
financial weakness of the country can be an important key change driver for Aldi UK. In the
present era, the role of technology is increasing rapidly and for the functioning of the company it
is very important to update the technology of the firm in order to adopt the changes in the
organization(Jackson, et.al,2020). With the advancement in the technology can also be the
reasons behind the change in Aldi UK. In order to compete in the market, it is very important for
the company to leave behind the old technology and move froward adopting and using the
advance technology in order to achieve success in the market. It can be said that there are
various drivers of change such as customer awareness, change in lifestyle, market innovation,
technological factors and various government policies that can affect the working and operations
of the Aldi UK.

Impact on organizational strategy
Today's organizations and management has to face various amount factors that is present in the
business environment and adversely affect the working and functioning of the company. In order
to overcome these factors, the manager is required to make changes in the organizational
structure of the company such as modification in the plans, policies, marketing strategies and
others. After analysing these changes, the managers is required to provide relevant knowledge
and training to the employees to educate about the changes that has been implemented and how
such changes can affect the organization(Henry, 2021). The internal factors are under the control
of the company and it can make changes after examining such factors but external elements are
beyond the control of the company and affects the overall operations and functions of the
company. It has also identified that drivers of change impacts the economic growth, society,
technology and environment.
Changes in the organization adversely affect the company's operation, productivity and
profitability of the company. Different changes in the political and economic factors of the
country enable Aldi UK to rethink and make modifications in its existing plans and strategies.
The management of the company is helpful in understanding the changes and how these changes
drastically affects the productivity and profitability of the company.(Guo, et.al, 2017) The major
change undergone by Aldi UK is the technological changes as it is considered most important
part while operating a business and the company is required to shift to the latest technology
rather using the former technology and improve the production capacity of the organization. If
the changes are favourable then it can have positive impact on the business and on the other hand
if the changes are challenging then it can affect Aldi UK. These challenges can affect its
productivity and also sustainability of the company. It affects the areas such as marketing, sales,
performance of the employees and also the overall composition of the organization.
Present changes in the environment affected the changes in the strategies of Aldi UK as it was
mandatory to modify these strategies to compete in the market and ensure its sustainability
among the competitors. Keeping in mind and considering the prevailing strategies, the company
made modifications and also analysed these changes develop need for the business to act
according to the requirement of the market and other relevant factors. The implementation of
various changes assist in regaining the productivity and profitability of Aldi UK. After
examining, the manager of the organization need to change the framework, developmental and

growth policies, various marketing techniques, recruiting more skill, efficient and knowledgeable
candidates(Khin, and Ho, 2019). These changes can highly affect the growth of the business so
in order to sustain in the market, Aldi UK need to adopt and change its policies and planned on
order to achieve the desired market and survival in its industry. The company has faced
economic crisis for which it has to reduce the prices in order to maintain its sustainability in the
market. This situation forced the organization to develop the policies which could benefit Aldi
UK. The revenue of the organization was decreased and looking at such situation the
management lay off many of its employees and shut down their outlets in order to cover the
other expenses of the organization. Due to the crises it was made necessary for the company to
develop and introduce new plans and policies in its management to sustain and balance the
financial loss suffered by the company.
Impact on leadership, individual and team behaviour
Changes made in the organization affects all the departments and each level of the company.
The change also affects the leadership, individual and team behaviour of the company. The
various internal and external change drivers also affects the employee, leadership skills and
overall team members of the Aldi UK(Duchek, 2020.). These change drivers enable the
managers of the company to adopt new strategies in order to motivate the staff members and help
in improving the performance of the employees.
The changes in the organization will also affect the individual and team members as many
employees may not adapt quickly after the implementation of the change and hey feel less
motivated and dissatisfied. The manger should make efforts regarding the operations and
production of the company. The managers are requires making changes in the leadership theories
in order to change the attitude of the employees, and they focus on achieving the objectives of
the company.
Change management model
In order to minimize the effect of change is explained with the help of ADKAR change
management model. It is a goal directed model that act as a guidance for the team as well as for
the individual regarding the changes in the organization. It includes the Awareness, Desire,
Knowledge, Ability and Reinforcement.
 Awareness: In this stage, the staff members need to understand the nature of
change that Aldi UK need to implement and also educate the employees about the

transition to be made in the company. The employees should be aware about the
changes which are going to take place and are necessary for the
organization(AlManei, et.al, 2018). This stage also includes explaining the risk
involved if change is not implemented.
 Desire:After understanding the positive effects of change, the management desire
that each member of the company contributes in executing such change in order
to improve the operations and working of the company. This involves
involvement of every staff member working in the company in order to sustain in
the market.
 Knowledge:The person should have proper knowledge about the goals to achieve
and should be expertise in the field. The company focuses on providing training
and developmental programs so that employees can manage the new terms and
policies in the organization. Aldi UK should focus that all the employees
understand their part of roles and work towards achieving for the long term
sustainability in the market.
 Ability:The employee is required to provide proper training and developmental
programs according to the capabilities of the employee so that they can perform
their task effectively.
 Reinforcement:In this stage the company plans to mange the change that they are
going to implement and ensures that the monitoring systems must be previously
set up and if the changes are positively affecting the organization due to the hard
work of the employees, the company make plans to reward and appreciate the
members for their contribution.
Effective use of leadership minimizes the negative impacts of the changes. Aldi UK has adopted
effective leadership styles to change and execute new policies within the organization. Leaders
of the company need to implement various leadership practices among the employees and staff
members as these theories will help to reduce the adverse effects of change in the
organization(Gandolfi, and Stone, 2017). The leaders need to adopt the relevant leadership
styles and organize various training and development sessions so that employees adopt those
changes and perform accordingly.

Implications
There can be long termed implications of change within the organization which will directly
affect the productivity as well as the profitability of the company. The organization is required to
take necessary steps in order to minimize these impacts. The external forces which are beyond
the control of the company should be critically analysed so that company can adopt such changes
and work towards implementing those changes effectively in the management of the
company(Anshar, 2017.). The leaders of the company is required to provide necessary training
sessions to its employees about the changes. It is recommended to the leaders of Aldi UK to
adopt proper leadership styles and approaches in the management to educate the employees
about the importance of the changes.
PART-2
Force field analysis
1. Force field analysis is a tool and is widely used in the change management and helps to
understand the various change process in the company. The analysis is classified into two
categories that is the driving forces and restraining forces. The driving forces are the one
which helps to sustain the change in the organization and restraining forces enable the
company to move away from the changes to be done in the company. If the demand of
the customers is changed and their id demand for new product in the market than it is a
driving force for the company and if the organization is still uses the former technology
in its production process in future then it can be restraining force for the company and
can affect its sustainability in the market(Chams, and García-Blandón, 2019). If Aldi
UK has efficient management and good leadership qualities, it's will help the
organization to adopt the changes and helps in effective decision-making of the company.
If the employees of the company support the changes implemented within the company
than it helps the company to achieve the desired goals in the market and is considered as
a driving force for the company. The business environment is dynamic in nature and
constant changes need to be adopted by the company in order to implement the necessary
changes in the company(Andriopoulos, and Dawson, 2021). Increase in the competitors
in the market will it difficult for the company to adopt the changes as there are various
barriers in the market and can act as a restraining force and impacts the working of the
company.

Recommendations for meeting organizational objectives
All organizations start its business with the aim of achieving its objectives to increase the
production of its products and for long term sustainability in the market. In order to achieve the
target market, it is very important for the company to analyse the business environment elements
that impacts the organization. There are forces which are under the control, of business and
which are beyond the control of the business. There various changes in the market which affects
the operations of the business and it becomes necessary for the mangers of the company to make
changes and make modifications in the plans and policies to regain the position in the
market(Geissdoerfer,et.al, 2018). The need to understand the preferences of the customers and
the company should use the latest technology in order to increase the productivity level of the
company.
Various barriers in organizational change-
 Lack of communication:In context of organizational change, it is important to have
effective communication. Without proper communication any change executed is waste
for the company. Through effective communication, the changes can be effectively be
implemented in the organization. In the management process, communication should one
of the most important part while planning and also in the execution process . In order to
implement change within the organization, effective communication should be done at all
the departments of the organization.
 Negative attitude of the employees:It is one of the major barriers of the change
management and negative behaviour of the employees towards the change can impact the
overall management of the company. The main aim of the company is the long term
sustainability in the market. The negative attitude of the employees also affects the
decision-making as employees will according to their will. In order to solve the problem,
the leaders have to switch from democratic leadership style to autocratic style which will
compel the employees to perform the assigned task.
 Lack of proper direction:It is said that there should be effective communication in the
organization but proper direction is also important and lack of proper strategic direction
there will be no effective communication. The company should have clear vision
regarding the plans and strategics so that it will be easy to communication and direct the
staff members about the changes in the organization.

4. How was change accomplished and how successful was it?
A successful change refers to the situation in which one can delivers the intended
benefits. For the successful of the company it is important tos adopt the change which are help
the organisation that are help for producing the same result. There are different strategy which
are need to follow by the company in order to get success (Shields and Hesbol, 2020). Such as
engagement with people who are working in Aldi, and also empower them which are improve
by the communication. Also it is important to have the active leadership which so that it will
consider all the related aspect. It is important to pay attention towards the employees who are not
that much motivated so it is important to motivate them so that they are work accordingly and
get the reward for extra work.
5. Advantages and disadvantages of different leadership approaches to dealing with change,
illustrated by application to a range of examples.
There are different types of leadership which are dealing with the Change the change is
related to technological change for the firm Aldi. There are two most leadership style can be
used by the company which are related to situational leadership and strategic leadership.
Situational leadership is refers to adapting the change in order to manage the style for each of the
situation that are help for meeting the need of team members. There are four styles of leadership
in which Aldi uses the style 1 for telling, directing and guiding in which the leader can make the
decision related to changing the technology (Singer and Cunningham, 2018). In style 2 there are
selling, coaching and explaining that are helps for assigning the high task and relationship
behaviour. Style 3 is help employees in order to participating, collaborating and facilitating the
change in this employees can ask the question and clear all the doubt. The last style is delegating,
monitoring and empowering, Aldi is need to adopt the technology which are help to increases the
productivity of the company that is why it is important to monitor all the employee about the
new technology and how to operate it.
The another approach is related to the strategic leadership that develops vision and tactics
for the welfare of organisation. For example, Tesco has used this leadership style in order to
make the decision with the help of top management regarding to set the vision of the
organisation.
Basis Advantages Disadvantages
Situational leadership This approach is helps for work It is difficult for some type of

with four leadership style that are
manage the different style according
to situation of the organisation.
Example: Due to Covid-19 Aldi
used to sell healthy ad organic
groceries in order to attract the
customer according to the situation.
manager and this approach shifts
when it can be sued for long-
term approach.
Strategic leadership It helps to develop the organised an
structured pathway for making the
decision and target the market.
Example: Tesco uses to change the
strategy in order to change the
product line so it is help to make the
decision accordingly (Powe Sr,
2020).
It may lead to forecasting the
inaccurate results and this
approach also flexible for making
the strategies and plan.
6. Critical evaluation of different leadership approaches and models of change management
When the leader is change the leadership style it has the reason because of Also it has
changed the leadership style for innovation in technology so that it can produce organic foo
products. It is been analysed that are both the impact of leadership style negative as well as
positive and negative. Critical evaluation of different leadership approaches and models of
change management. For the first time it has changed due to ability an willingness so that team
can work accordingly without any problem. On the other hand, changing the methods has create
more work and it is not possible to do accordingly because there are different perception of
people. This is also need for developing the value of understanding for those who are not having
the ability of working fluidly (Guerrero and Khachikian, 2020).
The adaptive leadership style is creating the lead of success at the workplace sop that
team will grow and able to have the challenges which are need to resolved and assessed by them
by not ignoring the issues. For having the result regarding this there are the people who are able
to respect the leadership this is the key factors which are helps to create the healthy environment
at the Aldi. So that there employees can feel valued and played important role for completing

the goal of the organisation. For example, when it adopts the technology for organic food it has
create the opportunity for employees that they can learn new method an this synergy is tangible
between leader and team. Aldi is more focus on providing training to employees so that they can
learn new things. For the changing the style of leadership it is helps for allowing the scale that
needs involvement in order to make the management effective (De Brún, O’Donovan and
McAuliffe, 20198).
The high reaching of the goals can be stay fairly and constant in order to increases the
size of the team but it is important for increasing the productivity of the organisation. Also, it is
necessary to guide all the employees one by one so that they can clear their doubt and work on it
accordingly. Beside this there are trade off in order to ignoring the opportunity at the personal
development because it is hard and also has the undeniable rewards. Leadership style has the
disadvantages for stepping outside from the comfort zone related to daunting prospect. Also,
sometimes when the leadership style changes, it is possible that employees get expose in order to
learn new techniques. Advantages of Kotler's change model are analysed that this is an easy and
step by step model which are providing the guidance and description for the entire process of the
change which are relatively. This change model emphasis on acceptability and involvement for
employees in order to get success for entire process (Fernandes, Araújo and Pereira,, 2018). It
has been analysed that there are help for major emphasising for building the acceptability instead
for change for the change process.
Beside this, when the steps of model skipped it might create the problem for the
organisation so it is necessary for follow it accordingly. This is also known for the time-
consuming and it is the essentially discourages and top-down where it has low participation. In
addition to this there are employees who are dissatisfied and frustrated in order to pay the
attention over it. When the leadership style change there is so many steps which are changed
according to the model of change. According to the Lewin's change management6 it has been
analysed that there are three types of steps which are followed in this model and also has
different criteria (Lumbers, 2018). This model is helps for understanding about the state of
change and it is easy to implement in business and there are different types of situation which are
need to change in short period of time. Like, according to the situation perception is changed of
the person and this model work on it there are particular situation for the specific time. There are