CIPD Level 3, Module 3: Analyzing Organizational Change at Alshaya

This report delves into the intricacies of organizational change, focusing on the Alshaya company, a prominent player in the retail sector. The analysis commences with an examination of external and internal factors, employing PESTLE and SWOT analyses to gauge their impact on the organization. The report then explores how these factors influence the company's operations and future prospects. It further investigates the critical elements driving the change process, comparing various change management approaches, including communication, participation, and facilitation. The role of leadership, employee engagement, and a clear vision in successfully navigating organizational change are also discussed. The report concludes by highlighting the behavioral responses to change and the crucial role of HR in facilitating this transformation. This comprehensive analysis provides valuable insights into managing change within a dynamic business environment, offering a practical understanding of the challenges and strategies involved.

CIPD LEVEL 3, MODULE 3

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
External and internal factors that affect organization ............................................................3
Ways that will impact on organization ..................................................................................5
Factors that are emphasizing changing process of business...................................................5
Comparing various approaches of change managing.............................................................7
REFLECTION AND SIGNIFICANCE...........................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Organizational change is the process of transforming business policies, structure,
strategies, technological changes for betterment in the future (Lozano, Nummert and
Ceulemans, 2016). Present study will be based upon Alshaya company. It deals in retail sector
that include brands like H&M, Debenhams etc.
Report will include pestle and swot analysis that influence organization and ways that
impact working of company in the future due to change. It also include factors that are involved
in change process and different approaches used in managing change. Furthermore, it will
include behavioural responses and role of HR in organization change.
PART A
External and internal factors that affect organization
Various causes that lead to affect functioning of business are as follows:
Political Factors
This include various laws that will have greater impact on business operation such as
implementation of policies by government. These laws are applicable and cause effect in the
organization that affect working of it and may affect changes that are done for increasing
effectiveness of working for the future. For example: Alshaya's political stability will get
disturbed due to changes in government policy that affect operations of business in the future.
Economical Factors
Changes in exchanges rates, inflation rates, interest rates that affect economic condition
of organization as it become difficult for doing export and import from other countries due to
which business will affect in the future (Lozano, Ceulemans and Seatter, 2015). As this factor is
having long term impact on organization that affect purchasing power of consumers in the
economy. For example:- Due to changes in the exchange rate that affect export and import of

Alshaya company and affect business operations and that ultimately affect purchasing power of
consumers.
Social Factors
This comprises of characteristics that include growth rate, distribution of income, health
consciousness, lifestyle of consumer etc. As this will create various aspect that affect different
operations of business as affecting functioning of the organization. Word of mouth is another
concept that affect operations of business in the future. For example:- Different country is having
their own customs and beliefs so before starting business into other countries it is essential for
Alshaya to gain knowledge related to that country and enhance business operations in the
country.
Technological Factors
Change in technology that bring effectiveness in working of an organization. It depends
on market condition as adopting new technology has bring effectiveness in doing work for the
future. This help in analysing various factors that create effectiveness in working. There are
different ways that help in enhancing knowledge for running its operation in different segments
in business. For example: Technological changes in the market increase operation cost of
Alshaya that affect different activities in business as taking into consideration that is related to
various activities in business.
Strength
This is the largest retailer that sell groceries and general merchandise that sell its product
in different parts of the United Arab Emirates. It cover larger market share that provide different
aspect in the marketplace (Rosenbaum, More and Steane, 2018). This is selling various aspect
that is useful for the company . Covering larger part help in bringing effectiveness in working
operations.For example: As it is covering larger part in business so that will help in increasing
sales and profit of Alshaya and gaining strategic competitive advantage in the marketplace.
Weakness
Its operations are failed and there may be reduction in export and import of business that
affect changes in the working operations of business. Profits of the company is low that affect
productivity and growth in business. As it is using low cost strategy that affect business

operations and creating problem for business in the future. For example: Company's condition is
not good as it is impacting operations of Alshaya.
Ways that will impact on organization
This study is based upon Alshaya that deal in retail sector and providing different
services to customers (What is PESTLE Analysis? - Definition & Examples, 2019). As
government laws are different in different countries so that may have impact on organizational
change. Leader of Alshaya have proper knowledge of rules and regulation that are governed in
the company. There are various segments that will have greater impact on doing work effectively
and efficiently. Due to changes in rates that affect business of Alshaya and that lead to stop
exchanging of currency and less growth in the future. As it is not able to do business without
foreign trade in that affect future growth and productivity of Alshaya. Leader must have proper
knowledge of change in technology so that it will bring on time and that may not be create any
problem in the future. If the company is using proper technology for manufacturing product then
it will facilitate in providing better product and services to consumers. For example: There is an
impact on organisational performance of business that affect different operations that lead to
create problem in business. Operations of Alshaya will get impact on organization that will
become challenge for the company to enhance business operations.
Due to bringing changes in business different strategies is being applied that enhance
operation (Walker, 2018). It is important for Alshaya to maintain quality of product by using
different tools that emphasize on various aspect of the company. It is important while bringing
changes in the organization but that will be accepted by employees of the company. Lifestyle of
people is different as due to change in geographical location so that will also affect functioning
of the company. Most of the changes will be occurred due to changes in structure of the
company. There are various perspective that affect business operations and if there is no export
and import then business will not be grow properly in the future. For example: Changes in
lifestyle of people as they belong to different geographical location so companies have to adjust
accordingly in business. Lifestyle will improve business operations that lead to create different
operations in business and due to this different changes have been made according to lifestyle.
Factors that are emphasizing changing process of business
There are several factors that affect change management process in the company are as
follows:

Ensuring strong leadership:- For accepting changes in the organization it is necessary to have
strong leader that handle all problems of the company. Alshaya involve many people to accept
change that will be occurred in business (Pollack sand Pollack, 2015). If change is not accepted
by people in the company that create problem for the future as it is not able to meet consumer
expectation from the marketplace. Leader have to influence people and its subordinates for
managing change in the company for bringing more opportunities in business. For example:- It is
important that leadership will be strong in business that help in taking strategic decision in the
company for the future.
Building strong team that help in achieving success:- Alshaya is having strong team that help
in managing changes in the company and provide greater opportunities. It is important in
providing various perspective that will help in achieving common goal of a team. Every team
member will be aware of change that is taken place in Alshaya is enhancing best opportunities.
It is also important that right people will be there in particular team that is managed by leader of
team and provide effectiveness in working of the organization. For example:- It is also important
that there is strong team in business that help in more growth and bring opportunities for the
future.
Employee engagement and participation:- It is necessary that very employee feel safe and
secure and not feeling alone in the company so for that it is necessary for organizing employee
engagement activity that help in building healthy relation between employees and they are easily
accept change in Alshaya. At the time when change occurs in the company that affect each and
every member of the company so sometimes it become difficult to accept change in the
organization. It is an important activity that enhance future growth in business. Various
perspective that help in creating different changes in the organization. For example: Employee
engagement help in enhancing communication and easy interaction between people that help in
actual participation of employees in business activities that is being organized into Alshaya.
Clear Vision:- In Alshaya there is clear vision of employees that they have to achieve objective
in the future. It help in increasing productivity as well as accepting changes in business
(Georgalis and et. al., 2015). Alshaya employee is having clear vision for the company that help
in bringing more opportunities for the future. If there is lack of vision clear among employee
then this will not be able to accept change in the organization. On the other hand, it is important
for having clear vision in minds of people in Alshaya so that bring effectiveness in the company.

For example: Clear vision help in achieving objectives of business and growth. As it help in
bringing various perspective for enhancing vision that help in providing different aspect and
gaining knowledge that help in taking decision for the future.
Comparing various approaches of change managing
Different approaches of change management such as communication, participation,
facilitation, negotiation, manipulation and explicit from these three are explained as under:
Education and communication:- This is the first approach that help in enhancing
communication between employees in the company. It can be enhanced by providing training to
employees of change in the Alshaya. It will be enhanced when proper education is being
provided to employees for enhancement in the company. Easy communication help in providing
various aspect that help in accepting change in Alshaya. This help in providing better
understanding of education and communication for evolving various approaches into it. This is
providing different approaches and enhance business operations. Education and communication
is important for Alshaya organization. On the other hand, it is having negative impact as if
proper learning will not be enhanced that create problem for getting proper education in the
future.
Participation and involvement:- It is important in increasing involvement of employees that
help in providing growth in the company . As employees of Alshaya are more involved into
business activities that is organized in business for achieving organizational goal in the future. It
is important that equal participation and involvement of employees in Alshaya help in gaining
more knowledge and skills for doing effective work in the organization. On the other hand, if
there is lack of participation in the company that influence different functions in the company.
Facilitation and support:- It is important in facilitating various aspect that help in indulging
into different activity of business. Proper facilitation and support encourage employee to do
work effectively and efficiently. If employees are supporting each other in the company this help
in achieving objectives of the company. On the other hand, it is having negative impact as if they
do not provide proper support in Alshaya it affect business operations.
As it is essential in providing proper education to employees that enhance different aspect
for business. It is important in providing different aspect that is useful for Alshaya company. As
participation is important for the future in gaining various sectors in the company (Hornstein,
2015). There are various segments that help in providing change in the Alshaya company. All the

above approaches help in managing change in the organization. For example: All the above
approaches help in providing change management in the company. All these approaches will
help in managing change in the organization and providing attributes of the company.
From the above approaches participation and involvement is the best approach that help
in enhancing business operations for the future. This also provide effective management in
involving changes in business. Participation of employees in business enhance productivity as
well as profitability in Alshaya.
Ackerman's three approaches
According to Ackerman there are three main approaches which can help organization in
managing change in the organization namely developmental, transitional and transformational
approach.
Developmental :- In this approach change will take place in existing aspects of the organization
which is followed in Alshaya. This help in focusing on improvement of skill and knowledge of
employee in the organization. By adopting this approach Alshaya employee development will be
enhanced and evaluating knowledge that help in fulfilling objective of the company will also
improve.
Transitional:- In this approach change will take place by achieving desired state that help in
providing change in existing one. By adopting this approach Alshaya provide literature based
change among employees that help in bringing organizational change.
Transformational:- In this approach change is enhanced by providing various aspect that lead
to provide success in the future. Transformation can be done in the form of changing structure,
process or strategy that will used for enhancing business operations.
From the above three approaches Alshaya have to adopted transformational technique as
it will help them in enhancing business as increase in productivity as well as profitability in the
future.
REFLECTION AND SIGNIFICANCE
For making the report I have taken the help of the Observation learning process as the data and
the information which was gather was gather by observing different factor. This report has also
helped me in understanding the significance of changing HR and L&D role as I was not having
the idea that there are as many aspect of the same. This module has helped me in building the
learning about the topic and also helped me building my interpretation and the analysis skill.

REFERENCES
Books and journals
Georgalis, J. and et. al., 2015. Change process characteristics and resistance to organisational
change: The role of employee perceptions of justice. Australian Journal of
Management. 40(1). pp.89-113.
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management.33(2).
pp.291-298.
Lozano, R., Ceulemans, K. and Seatter, C.S., 2015. Teaching organisational change management
for sustainability: designing and delivering a course at the University of Leeds to better
prepare future sustainability change agents. Journal of Cleaner Production.106. pp.205-
215.
Lozano, R., Nummert, B. and Ceulemans, K., 2016. Elucidating the relationship between
sustainability reporting and organisational change management for sustainability. Journal
of cleaner production.125.pp.168-188.
Pollack, J. and Pollack, R., 2015. Using Kotter’s eight stage process to manage an organisational
change program: Presentation and practice. Systemic Practice and Action Research.28(1).
pp.51-66.
Rosenbaum, D., More, E. and Steane, P., 2018. Planned organisational change management:
Forward to the past? An exploratory literature review. Journal of Organizational Change
Management. 31(2).pp.286-303.
Walker, G., 2018. Change management: Organisational change. Training & Development.45(2).
p.30.
Online
What is PESTLE Analysis? - Definition & Examples.2019.[Online]. Available through:
<https://study.com/academy/lesson/what-is-pestle-analysis-definition-examples.html>