Leading Change: Drivers, Impact, and Leadership Decisions Report

This report examines organizational change within the retail sector, focusing on Marks & Spencer and Tesco. It explores the key drivers of change, including ecological challenges, technology, globalization, and communication barriers, and compares how these drivers impact both companies. The report analyzes the impact of these changes on leadership behavior, teamwork, and individual performance. It also delves into leadership decision-making processes, utilizing the Force Field Analysis to understand how organizations plan and implement changes. Furthermore, the report evaluates the effectiveness of different leadership models and approaches, offering recommendations for minimizing the negative impacts of change through models like the Burke-Litwin model and continuous improvement plans, ultimately aiming to achieve organizational objectives. The report concludes with a summary of findings and recommendations for effective change management.

Understanding and Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK1.............................................................................................................................................2
Drivers of change........................................................................................................................2
Comparison of drivers of change between Tesco and Marks & Spencer...................................2
Impact of drivers of changes.......................................................................................................4
TASK 2............................................................................................................................................8
Leadership decision-making with respect to change..................................................................8
Different barriers to change......................................................................................................10
Influence of change over leadership decision-making..............................................................10
Critical evaluation of Force Field model..................................................................................10
TASK3...........................................................................................................................................11
Effectiveness of leadership models and approaches.................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
1

INTRODUCTION
Organizational change is a situation where company makes a transition from its current
state to another which can be beneficial for the organization. Changes can be of any type, for
example, change in process, policies, technology, culture etc. In this report, Marks and Spencer
is taken, which is a multinational retailer, headquartered in UK. It sells high quality product from
general merchandise to home and food products, clothing, electronics etc. This report covers
impact of change on leadership behaviour, teamwork and individuals. It also includes process for
responding to change, different leadership approaches and the factors affecting leadership
decision-making.
TASK1
Drivers of change
The much of evolution of retail industry is because of the changes. Nothing is permanent
and the trends keeps on changing with time. The key drivers of change affecting the organization
are stated below.
Ecological challenges: The scarcity of natural resources and negative impact of organizational
activities on environment has driven the need for change. Government regulators and even
consumers are putting pressure on organizations to meet with environmental needs and focus on
sustainable business.
Information and communication technology: Technology has changed the look of work,
employment and education (Sarah Lambertson, 2018). It is now considered as a crucial part of
the development process. The production system and service delivery of the organization is
dependent upon the IT.
Globalization: This change has made organizations to influence on international scale.
Globalization has given opportunities to the organizations to expand the business and increase
the organization's visibility. Companies have to identify it an opportunity for change.
Communication barrier: It refers the misunderstanding and miscommunication regarding
organizations product and services and the customer's perception about the product (Rees
Angela, 2017).
Comparison of drivers of change between Tesco and Marks & Spencer
To get a clear understanding of the impact of change on the organization, a comparative
analysis has been drawn of Tesco and Marks & Spencer.
2

Tesco has come up several innovative ways to help the environment and reduce the
carbon footprint. It has developed 'Going Green ' initiative in which standards are set for all, that
is, customers, organization and suppliers. Its main objective is to satisfy customers and
contribute to the sustainable development. On the contrary, Marks & Spencer have set up Plan A,
for sustainable supply chain. Marks & Spencer and its suppliers have aimed at integrating the
sustainability into the business operation. Both Tesco and Marks & Spencer have driven this
change with the common objective of sustainable development and meeting their CSR
requirements.
Tesco has improved its efficiency model by implementing digital in store initiative. It
includes, scan as you shop handheld devices, self check out systems to enhance the customers
shopping experience which requires less supervision and faster processing. On the other hand,
Marks and Spencer has set up a data academy to get their employees opportunity to learn
machine learning and artificial intelligence to meet the requirement of digital mindsets and to
have highly qualified employees. Also, it is working to improving its website generate more
revenue through its e-commerce business. The similarity between the two is to be up to date with
the changing technology and foster to the needs of employees and customers.
Tesco with the objective to create loyal customer base has taken the advantage of
globalization and implemented strategies to achieve its goals. Tesco enters the market with its
existing product and also tries to produce products based on demand and culture of the new
market. On the contrary, Marks and Spencer enters the new market with innovative product
range to attract and meet with the needs of the customers. The only similarity between the two
organization is that both have established distribution channels that makes it easy for the
organization's to enter the new market.
Tesco strives hard to meet with the needs of the customers and make customers aware
about the organizations mission and vision and its core objective. On the contrary, Marks and
Spencer tries to communicate with its customers based on the benefits its products have over its
competitors. Both the organization works on to effectively communicate to its customers so that
customers perceive it in the same way as organization wants.
3

Impact of drivers of changes
The drivers of change can impact not only the organization but its entire structure which
includes team and leadership behaviour and individual behaviour. The detailed analysis of the
same is carried out below.
Tesco is working on to change its management style which requires a complete change in
the overall organizational structure. It will affect the leader's behaviour as Tesco is looking to
implement the democratic leadership style instead of coach style leadership which will affect
leaders to adopt the change. Also, it will affect the team work as new methods and process will
requires adequate time for team members to adopt the change and it may lead to team conflict.
Changes will also impact the productivity of the individuals as employees are required to follow
new set of rules and regulation which will hamper the performance level of employees.
In case of Marks and Spencer, it is looking to adopt the latest technology to meet the
changing needs. It will impact the leader's behaviour as leaders have to understand and
implement the same. Behaviour of teams and individual will also be affected as everyone has to
learn and adopt the latest technology which requires patience.
Measures of taken to minimize the negative impact of changes
It is very important and effective for companies to measures impact of changes within the
company because of positive growth of company. For that here is used models for companies to
minimize overall negative impact form the company. For minimize the negative impact from
Marks and Spencer to use Burke Litwin model for analysing changes:
This model is more beneficial for M&S to analyse changes and its impact which are
comes with internal and external drivers (Hughes, 2016). This is considered with complete start
to end process present inputs of organization.
External environment: External environment is present forces which are come from
outside the company which affect company and its process. Like changes in needs and wants of
customer of M&S.
Individual and organizational performance: This reflects over all output of company
like productivity and customers satisfaction which is measures after purchasing product.
Transformational factors are help to determine processes and characterize of M&S with
assessing leadership style, mission and strategy of company.
4

Leadership style: the company M&S is use democratic and autocratic leadership style to
minimize impact of changes (Burke Litwin Model of Organisational Change, 2019). Most of the
time take decision own self but some time they consider views of employees are help to motivate
them for accepting changes.
Mission and strategy: the company is decided mission to increase profits margin by
minimizing negative impact. For that company make strategy is to organize training for
employees to use technology for work better.
Organizational culture: M&S leaders are created positive working environment for
company to maintain interest of employees towards working in effective manner. This is because
of the reason is motivated employees always ready to accept changes in effective manner.
Transactional factors refers with day to day operations of M&S company.
Management practices: This refers with behaviours of manager with their employees on
daily basis. In that management have to behave effective and respective manner with employees
are help to motivate employees for working.
5

Structure: The company management have to allocate work and task as per changes to
employees which is help to address effectively with accepting changes.
Work climate: Happy working environment always help to encourage employees for
working in effective manner. So, that company need to ensure about their working climate for
employees.
Motivation: In order to motivate leaders have to provide equal opportunities for
companies to maintain positive growth and effectiveness.
Task requirement and skills: management organize training for each employee and
check their skills are appropriate as per task or work.
6
Illustration 1: Burke model
(Source: Burke Litwin Model of Organisational Change, 2019)

Individual needs and values: here management of M&S need to analysis the needs and
wants of employees for encouraging employees for work. Provide opportunities to balance work
and personal life.
In respect of Tesco, is use continuous improvement plan, this model s help to minimize
negative impact from company which is comes with external and internal factors.
Plan: Here, management of M&S identify opportunities ad plan for changes within the
company by checking. Like as per challenges and other reasons.
Do: Implement changes within the company by communicating employees in proper
manner by organizing training and development for employees (Lowell and Morris Jr, 2019).
Check: Checking is important to analysis the improvement is perfectly implemented or
not. For that company is use data and profit margin.
Act: Here company is freeze the changes in effective manner with proper uses and
allocating task to employees on daily basis.
Recommendation
 Marks and Spencer should provide proper training to its employees from time to time, to
teach employees relevant skills and knowledge required to perform efficiently.
 Organization should clearly state the benefits of change and align it with organizational
objectives.
 Marks and Spencer should provide support service to its employees to adjust with the
change. Employees sometimes requires emotional assistance in dealing with the changes.
Conclusion
It can be concluded that the key drivers of change has direct impact on the organization.
A comparison has been drawn by comparing how Tesco and Marks and Spencer has responded
to the changes. The impact of changes on leadership behaviour, team and individual behaviour.
Also, Burke model is used to minimize the negative impact of organizational changes along with
the recommendation to that organization can use to meet with the changes effectively and
achieving organizational objectives.
7

TASK 2
Leadership decision-making with respect to change
To understand how the drivers of changes can impact or influences the organization's
leadership decision-making process, Force Field Analysis will be used. It was developed by Kurt
Lewin and was mainly used for planning and implementing changes in the organization.
Proposal for change
This is the first step in which area of change is disclosed. This can be in the form of
desired organizational policies and objectives (Toves, Graf and Gould, 2016). Marks and
Spencer currently wants to implement information and communication technology in its
organization.
Drivers for change
8
Illustration 2: Force Field Analysis (Source: Force Field Analysis -
Kurt Lewin. 2017)

It refers to the drivers that fosters the change. Different drivers that has resulted into
implementation of the information and communication technology in the organization are stated
below.
 Rising customer expectation: The changing and the customized needs of the customers
is one of the reason for change. Customers are looking for effective ways of
communication and by implementing this technology will help in ensuring better
customer interaction and communication. It is help for organization as well from
marketing perspective.
 Emergence of AI: There is no doubt that emergence of AI has resulted in compulsory
adaptation of the latest AI based technology (Neal and Martz, 2016). This technology
will help in meeting the customers needs and provide support services to customers as
and when required. Mark and Spencer can adapt these changes to make its retail business
move smoothly.
 Increase brand value: Adaptation of the latest technology helps in increasing the brand
value of the organization. New systems and technology attracts customers towards it.
 Increase in revenue: After implementation of the latest technology in the stores of
Marks and Spencer will be help in increasing its revenue. For example, introducing self
check out system will help organization in easy check out.
Forces against the change
 Concern over personal loss: The changes may benefit some employees but not for
others. It may include loss of power, prestige, quality of work or other benefits which
cannot be compensated with rewards. So, members may feel that change will diminish
their identity.
 Group resistance: Every group has it norms which are required to be followed. If any
changes are introduced that can be posed as a threat to the group then organization may
face resistance to change.
 Cost: It is the most crucial part as it is related to money. If the introduction the new
information and communication technology requires incurring huge cost then there may
be chances to drop the idea.
Assigning scores and apply
9

In this step, scores are assigned to each force, one for weak and five for strong, according
to the degree of influence each factor has on the plan. So, emergence of AI is the strongest point
and increase in brand value is the weakest point in drivers for change. On the other hand, Cost is
the strongest factor and concern over personal loss is the weak point in factors against the
change. So, based on the above analysis, it can be said that the change should be introduced.
Marks and Spence should understand the need for emerging technologies and the advantages it
carries. Cost is not a big thing for Marks and Spencer and this cost can be recovered easily after
implementing this information technology because of increase in revenue.
Different barriers to change
Barriers always create a gap between what is there and what is required which has a
negative effect on the organization's operation. Lack of employee involvement is the most
common barrier, where employees have the fear of change and mostly resist the change (Okeke
and Follow, 2015). Next is lack of communication strategy, organization's usually announce the
change and expects employees to adapt the changes without any proper training. Sometimes
organizations develop complex processes which makes the other planning process more
complex. This complexity contributes to the change barriers because it sometimes becomes
difficult for employees to understand. All these barriers to change needs to be analysed before
introducing new technology.
Influence of change over leadership decision-making
The introduction of new technology will adversely impact the leadership decision-
making. All the above discussed drivers for and against the change, will require leaders to patient
enough to deal with the employees. Leaders may require to change the leadership style which
will help organization to improve the employee productivity and result of which helps in
increasing its brand value which in turn helps in increasing revenue of the organization.
Critical evaluation of Force Field model
The Force Field model has provided a complete summary of forces for and against the
change that will help organization in making decisions. It helps in identifying barriers before so
that proper plan can be developed. This analysis requires each member to participate so that
everyone has information for analysis. The only problem is this method can lead to division in
group between those who support the change and whose who are against the change. Overall,
10

this method was very helpful in achieving organizational objectives and the change should be
implemented.
TASK3
Effectiveness of leadership models and approaches
There are different types of leadership approaches which can are implemented in the
organization based on the organizational needs and structure. The three most effective leadership
style that can be used by the organization in order to adapt the changes (Solomon and Steyn,
2017). The pros and cons of each leadership style will help Mark and Spencer in implementing
right leadership style. These are discussed below.
Democratic leadership style: In this style, leader makes decision based on the views and
opinions of each team member (Wakabi, 2016). Leader gives opportunity to its team members to
open up and put their points in front of everyone and employees feels a sense of belongingness.
Advantages
 This leadership style helps in building strong teams, as team members tend to help and
support other. This encourages honesty and more collective working environment. a
 Employees feel more motivated and satisfied, which has a direct impact on the
performance of the employees.
 It also encourages innovation and creativity as decisions are taken based on the ideas and
opinions of each team member.
Disadvantages
After critically evaluating the leadership style, some disadvantages came cross which are
discussed below.
 It can be a time-consuming process as every decision is taken after considering the views
of all employees which will take a lot of time.
 Sometimes, it becomes difficult to bring consensus among team members which results
in conflict.
 Leaders sometimes have to spend time in making team members understand why idea of
other team member is implemented.
Transformational leadership style: This style focusses on transformation and improvement.
Employees are given set tasks to be completed but leader pushes them constantly to perform task
outside their comfort zone (Nawaz and Khan, 2016). Leader gives more and more challenging
11