Understanding and Leading Change: A Case Study of Alexia Ltd

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Understanding and Leading Change: a case
study of Alexia Ltd
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Compare various organizations realizing the impact of change on organization’s operations
and strategy..................................................................................................................................4
Evaluation of external and internal drivers of change affecting team, leadership and individual
behaviour.....................................................................................................................................6
Evaluation of strategies for minimization of negative impacts of change on organizational
behaviour.....................................................................................................................................8
Task-2..............................................................................................................................................9
Explain different barriers for change and determine how they influence leadership decision-
making in a given organizational context....................................................................................9
Different leadership approaches to dealing with change in a range of organisational contexts11
Conclusion.....................................................................................................................................13
Reference List................................................................................................................................14
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Introduction
While conducting business in competitive business environment leaders necessitates enabling
their employees to aspire the beneficial aspects and values that are associated with the
organizational objectives and accomplishments. In due course, the organizations are enforcing
acceleration in their acceptance towards change. As opined by Yrjölä et al. (2019), understanding
and leading change prepares organizations in accomplishing the issues, which come with
implementation and initiation of change. During this program, organizations will apprehend
change processes as well as political, psychological and organizational problems produced by
accomplishing achievable goals. According to Voet et al. (2015), the organizations through the
enablement of change strategies categorized various challenges followed by identification of
specific issues from implementers, initiators and recipients associated with change. In due course
of time, the organizations understand the significance of change initiatives, which might fail and
thereby learn methods of dealing with resistive forces and identification of factors for successful
change. In this report, the key benefits associated with change management and its impact on
organizational behaviour has been apprehended.
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Task 1
Compare various organizations realizing the impact of change on organization’s operations
and strategy
Organizational change takes place when a company is making their attempts towards transition
from its contemporary state to some most wanted future state. As stated by Iles (2017),
management of organizational change is associated with the process of establishing the plan
followed by its implementation of change within organizations in such a way for minimization of
employee resistance and organizational cost while concurrently maximizing the efficiency of
change effort. In case of Aldi, total score merchandising and promotional capabilities has been
acute in accomplishing organizational objectives of communicating with customers regarding
their wants and desires (brickmeetsclick.com, 2016). Realizing the impact of change, various
companies are implementing more participative decision-making approaches for enforcing
change in their hierarchical structure.
Changing the organization’s strategies and operations can be an important disruption. While
thriving in contemporary business environment, companies highly necessitates undergoing
several alternations at an almost constant rate with the purpose of staying competitive. In Aldi,
the innovative merchandising theme in their advertisements has become more sophisticated, as
the merchandising team has a profound effect on understanding customer rather than space
allocation among spaces. As opined by Allen (2018), various factors like globalization trend in
marketplace accompanied by rapidly evolving technology are forcing businesses towards
responding appropriately in order to survive with competitive edge. It is worth mentioning that
initiatives related to organizational change arise out of issues that have been faced by company.
It has been followed in various cases that companies are undergoing change due to impetus of
enlightened leaders who could firstly recognize and thereafter exploit innovative potentials that
has stayed in dormancy within the organizations and its circumstances. According to Richards
(2015), in some organizations, changes are relatively minor such as in case of installing some
new software or something major like incase of refocusing overall marketing strategy, combating
off some aggressive takeover, and transforming organizations into the phase of persistence in
terms of foreign competition. As discussed by Hillson and Murray-Webster (2017), in the
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contemporary period, initiatives related to organizational change frequently arises from some
acute problems in terms of leadership, management or individual behaviour faced by a company.
In some instances, companies revolutionize under the impulsion of progressive leaders who first
gets familiar with and afterwards exploit potentials that have been dormant within the
organization or its related circumstances. Some researchers in a soberly manner label this as a
"performance gap" which competent management is enthused to close.
Numerous models has been applied for management of change within organizations such as
Kotter’s 8-stage model, Lewin’s change model and McKinsey’s 7s model. Kotter’s model of
change has significantly emphasized the holistic approach while dealing with changing efforts
which is case of not being considered causes nearly 70% failure in numerous organizations.
According to Chappell et al. (2016), creating an instance, which requires urgency for change to
happen, becomes imminent followed by building guiding team for creation of a group equipped
with enough power of leading and supporting the effort enforced in change. Development of
vision refers to the determination of core values by defining ultimate vision and strategies to
realize a change within an organization. Communicate for buy-in in their vision has been very
often convincing and powerful. As opined by Jalagat, (2016), empowering actions ensure
managerial processes as well as structure that are in place aligned with overall organizational
vision. By creation of short-term wins at the earlier stages of the process, organization aspire the
feeling of victory at earlier stages of change. Anchoring to change within the Corporate Culture
ensure that the support of leaders and continue to extend their support towards that change.
Due to major complexities in the effort, TMC has adopted Kottler’s 8-step change model for
creation of a strategy to build unifying and inclusive organizational culture. The ultimate
objective is the enablement of business growth goals specifically in terms of innovation, market
expansion, talent development and collaborative excellence. As stated by Kazmi and
Naarananoja (2017), avoiding the pursuance of traditional, linear progression and uniformity, the
change process has proficiently accommodated locations and groups at various stages as well as
different cultures in relevance to regional and local leadership communication and styles. In
Aldi, the change in product mix reflects in their physical arrangement of their stores. The space
allocation of five to ten years old stores has been completely revised (brickmeetsclick.com,
2016). The brand is craving for a strong position centering the theme of feeling good and
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healthy, sustainability and focus on freshness, organics, no artificial coloring, no trans-fats and
others.
Figure 1: Kottler’s 8-step change model
(managementstudyguide.com, 2018)
Evaluation of external and internal drivers of change affecting team, leadership and
individual behaviour
A wide variety of external and internal drivers influences the trigger within organization
designing initiatives. An organizational executive might have the necessary institution, which
something is amiss. The market or regulatory environment tentatively delivers an unmistakable
imperative for change. It becomes essential for the organizations to identify and express the real
purpose and their intent of change in the context relevant to organization’s wider strategy
(azcentral.com, 2018). With only these perspectives organizations can position their design
change in such a way, which supports wider business objectives and goals. For instance, if the
organizational goal is towards reducing cost, associated activities like asset optimization,
recognition of agreements and facility relocation with third party suppliers can be faster, easier
and less disruptive course.
External and internal factors have a huge impact on the failure or success of an organization.
Business owners can never control external affairs; however, they are capable of anticipating as
well as adjusting to these adverse factors for keeping their organizations on track
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(Execed.esmt.berlin, 2017). However, business leader and owners have impactful influence over
various internal factors affecting the business and the way they control these internal factors will
reflect a major impact on future of their companies.
Considering the internal factors leadership styles has a great impact in major decision-making in
terms of financing, sales, marketing, budgeting and human resources. According to Haddad and
Kotnour (2015), technology and competition has always been the driving forces associated with
organizational change. Numerous existing companies are adapting and bringing up some
innovative and new strategies. New companies are always popping up every time. Aldi has
continued their practices aggressively towards cost management and at present possess only a
fraction of assortment, which a traditional supermarket offers. They now manage their
merchandising mix in a different way. Furthermore, entrepreneurs are continuously opening new
doors as well as new services for attracting customers.
On the contrary external drivers of change are simple in their concepts however more difficult to
manage. As opined by Chuang et al. (2016), within few hours, the economic stability of the
company can spiral down thereby creating low level of supply for matching up the low demand.
Internal factor like new executives has been impactful in enforcing organizational culture and
strategy. Strong organizations are featuring motivated employees who are proficient enough in
understanding management’s expectations, however it is necessary to provide the necessary
training, tools, encouragement and support for not only meeting those expectations but also
towards exceeding them. In this regards, Aldi has always been very sensitive towards local
competition and the pricing strategy of the competitors on similar products
(brickmeetsclick.com, 2016).
Organizations need to follow an integrated approach for driving systematic and constructive
change followed by minimization of destructive external and internal barriers towards change
and thereby addressing consequences of making those changes. As opined by Haddad and
Kotnour (2015), while implementing those changes different methods and definitions are
proposed for management of change however, organizations are reporting high rate of failure
while taking initiatives in those regards. In today’s business environment successful change
management has become a major criteria while attainment of successful organizational change
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during economic crisis. Change techniques necessities to be evolved continuously by aligning
them with environmental factors.
Evaluation of strategies for minimization of negative impacts of change on organizational
behaviour
For being an international organization, ALDI is facing several problems in its marketing
activities. Therefore, the company needs to be focused on making proper planning and strategies
in order to lead the company towards success. On the other hand, it will enable the company to
avoid most of the potential risks and threats in an effective manner. The following strategies are
required to be maintained to overcome all the negative impacts of changes in organizational
behavior-
Business goals changes and its alignment- It is very important for this company to identify all
the business goals and objectives in an effective manner, as it will help the company and its
employees to make proper planning and strategies to lead the entire company towards success.
Impacts and its effects identification- It is also very crucial to find out the positive and negative
consequences that the company has to face due to changes in its organizational behavior.
Communication strategies development- In order communicates with the stakeholders, it is very
crucial for the management of this company to make proper planning and strategies for
communicating with their stakeholders. With the help of proper communication planning, this
company can be effective in its organizational activities and its marketing activities.
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Task-2
Explain different barriers for change and determine how they influence leadership
decision-making in a given organizational context.
Barriers That Impact Change: ALDI might face some barriers when they will be trying to
implement some positive changes to their organization. These factors are:
a) Fear of the Unfamiliar:
In order for a business to progress, it is crucial for the organization to be habituated to change in
the management of the organization. Change does not mean negative changes, it solely means
positive changes and if an organization cannot accept and embrace these positive changes then it
can create some complications for the growth and progress of the company. Moreover, it is
necessary for an organization to apply positive changes at the right moment or else they can
receive failures. Organizations that can be accustomed to new and positive changes will have a
drastic growth in their business. The management and the leaders of any organization must
therefore be pro-change. Therefore, ALDI has to be supportive of change if they want to stay in
the market and have a drastic growth (Caplat et al., 2016).
b) Ineffectiveness of Leadership:
The employees are the backbone of any successful organization. In order for the company to
grow, the employees should also be pro-change or else there will be a clash between the leaders
of the organization and the employees of that said organization. The leaders need to make the old
and experienced employees feel that they will not become outdated when changes are
implemented in the organization. If the employees are not burdened by the fear of being sacked
from their jobs then they will feel positively about changes in the company. The leaders must
encourage the work force by giving them proper information in order to understand the profits of
change. Some form of training should also be given to them in order to show them that the
organization and the leaders are giving them priorities. Moreover, some form of credibility for
ownership should be given to them to show that they also are important part of the organization.
A good leader must make his or her team as a unit that can think alike and function like a proper
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unit. In order to be successful ALDI needs to implement this process while thinking about the
leadership effectively (Bhave et al., 2016).
c) Communication:
Major organizations focusing to implement positive changes to the company must always focus
on building a proper chain of communication among the employees and also with the buyers,
suppliers and major shareholders of the company. Without a proper form of communication, the
implementation of changes can get slower or completely disrupted. Therefore, it is crucial for
ALDI to invest their attention on building a chain of communication between their employees
and other important members of the company (Zamora et al., 2016).
d) Complexity:
Changes for the benefit of improving the company can be a very complex event. Therefore, it is
a very important factor in discussing about the barriers of the management of change. As a
sudden change in any big organization can be a challenging issue therefore, it will be wise if
ALDI can implement changes by using simple methods (Murrell et al., 2017).
Leadership and Decision Making: Decision making in leadership is a dynamic process in order
to choose the best possible outcomes for any organization. This is a very critical issue that has
confused many learned men and various business organizations (Shapiro and Stefkovich , 2016).
With the purpose of effectively implementing the changes, the leaders must be good at making
decisions; moreover, the leaders must focus on managing and leading the employees efficiently.
This can be possible if the employees and the leaders of an organization share a similar view
regarding the growth and improvement of the company. Moreover, the leaders should have a
clear view regarding what changes the company needs and make decisions accordingly. In
addition, leaders need to be aware about all the situations and try to make and implement
decisions according to those situations. In this context experiences gathered from past cases can
be very beneficial for the leaders while taking a particular decision regarding the changes needed
for an organization (Ingersoll et al., 2018).
A leader must try to influence all the employees of the organization whenever he or she is trying
to take a crucial decision for the organization. Moreover, if a leader can properly communicate
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the benefits of changes implemented for the betterment of the organization,. Although there are
various types of leaderships and various methods of thinking processes, but if an organization
can implement the best processes among those then an organization like ALDI can improve their
corporate growth and profit drastically (Nahum and Carmeli , 2019).
Different leadership approaches to dealing with change in a range of organisational
contexts
Leaders should have the quality to cope up with the sudden changes in the business atmosphere.
A leader should not expect that a change would occur according to the expectation. He or she
should feel comfortable about the unexpected change in the business ecosystem. This helps a
person to take action in accordance with the change very easily. May be, there are some issues
regarding leadership approach to change in Aldi Ltd.
The clarity in communication is necessary in building a stable business organization and that
should be between the leaders and the workers working under them. Leaders cannot
communicate with the employee directly every time. Therefore, they have to appoint proper
human resource board or appoint a person who will convey their message to the employees of
Aldi Ltd. This is because, when the change occurs in a business environment, workers are left
with insufficient knowledge of their futures (Aarons et. al., 2015).
There are many aspects for being a good leader. One of them is vision and how to
innovate that is giving innovative ideas in order to build a sustainable business organization.
Vision is a important thing for a leader to have as, it motivates, encourages a workplace. You
should know that where your organization heading towards or what are your expectation from. In
other words, everyone in your organization should know about the future position of your
organization where the leader wants to take it. Innovation is the key to success. A leader should
come up with innovative positive ideas without fearing about the consequence. In addition, a
leader should be positive in handling the difficulties or the consequence of the changing business
atmosphere by introducing innovative ideas. Imagining a certain change that may occur in order
to take a quick action when needed is a innovative quality of a leader (Holten et. al., 2015).
A leader should know the importance of setting a goal for the business organization and
should be capable to give modifying ideas in order to take the company to the top position. Aldi
should know that change is a significant thing in order to bring a certain innovation in a business
organization that will shower profits in long term.
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There are many other places in which a leader may focus in order to tackle a change in
the above said company by maintaining a good relationship with the members or employees of
the company by establishing a sense of trust among the employees and the level at which the
leader can inspire the employee. A leader should properly screen the performance of the
employee in order to get a good outcome of the employees. The leadership power and the
efficiency in taking quick decisions about the company is beneficial in the times of change
encountered by the business organization. Setting a goal for the company and keeping the
employees well informed about the target of the company should be concerned topic for Aldi
Ltd. It may happen that the changes are occurring in the market regarding the desire of the
customer and stiff competition from the other organizations in the market. A leader should be
swift in facing the challenges faced and should implement the ideas quickly. Therefore, the
employees should be capable enough to act quickly according to the needs (Babalola et. al.,
2016). However, a leader should encourage the employees for more work by giving them
rewards based on the performance and by introducing policies. This rewarding boosts the
confidence of the employee and makes them believe in their ability. Bringing a change requires
participation of each and everyone in the company, a leader should involve employees in the
decisions for the benefit of the company. A leader should be comfortable with the changing
circumstances in the business. Globalizing of Aldi Ltd (UK) will be need proper assessment of
the desires of the people. Globalizing a business organization changed the behavior of the
customer around the world. The customer’s demands not only experience a hike but also forcing
the organization to bring a change in accordance with it. We know, that change brings challenges
with it so, the leader should be filled with proper skills and knowledge to manage the employees
properly or introducing innovative ideas in the times of change. Therefore, Aldi Ltd should look
into the above-mentioned factors and should emphasis on those. Changes are occurring every
day in the market globally and locally, coping up with changes and acting swiftly according to it
keeping in mind, the benefits of the company is a significant quality of a leader (Ghasabeh et. al.,
2015).
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