Impact of Change: Influences on Organizational Behavior & Leadership

This report provides a detailed analysis of organizational change, examining its impact on operations and strategy with examples from Amazon and E-Bay. It explores various types of organizational change, including structural, strategic, people, and process changes, and uses PEST and SWOT analyses to understand the drivers and influences of change. The report also discusses the psychological impact of change on employees, the role of leadership styles such as autocratic and democratic leadership, and models like the Bohner and Arnold change impact analysis. It further investigates how barriers to change influence leadership decision-making and examines different leadership approaches to change initiatives, highlighting the importance of situational leadership. This comprehensive analysis aims to provide a thorough understanding of change management in a business context.

Understanding
and leading
change

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1 Comparison of different ways in which change impacts on operations and strategy of an
organisation..................................................................................................................................3
LO2..................................................................................................................................................6
P2 Influences that drive of change have on behaviour of an organisation..................................6
LO3..................................................................................................................................................9
P3 Different ways in which barriers to change influence the decision making in leadership.....9
LO4................................................................................................................................................10
P4 Leadership approaches to a change initiative and situational leadership.............................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Organisational change is referred to the practice of adopting new and different techniques
according to the requirement of internal and external environment. The change management is
essential part of organisational working, it is very much essential to lead the change. In the era of
stiff competition, many organisations adopt change in order to gain a competency at the
marketplace (Bohman, K., 2019). In this report all the aspects of change in a business are
covered and the way change impacts an organisation. This project also cover influences which
derives of change have an organisational behaviour and the way in which barriers changes
influence leadership decisions. This project also covers various leadership approaches to change
initiative and lead the change. For better understanding example of Amazon and E-Bay
company are taken into consideration, both are global multinational E-Commerce companies.
MAIN BODY
LO1
P1 Comparison of different ways in which change impacts on operations and strategy of an
organisation
Change in business context
Change is considered as major factor which brings new techniques and tools in the
functioning of a business. According to the dynamic external and internal environment of
Amazon and E-Bay, there are various changes faced by an organisation. In order to deal with
these consequences, organisations formulate different planning and strategic perspectives.
Change impacts a company in many different ways by changing the current working functioning
patterns of an organisation. The involvement of change is considered to be one of the major
factors which determine the functioning of a company at the marketplace.
Position and perception influence looking at a change as positive or negative
In every organisation there is a hierarchy present in its internal environment, the position of
various employees derives different perceptions in determining change. The perceptions of every
level of management are different towards organisational change, depending on their role and
responsibility (Boyatzis, 2018). It is the utmost responsibility of top level management to
consider change as a challenge in order to prepare the whole team ready for the change

acceptability. In order to gain competitive advantage at the marketplace, Amazon and E-Bay has
to welcome change with necessary plans and actions.
Types of organisational change faced by Amazon and E-bay
 Structural- This type of organisational change arise when there are modifications in the
structure of an organisation are occurred. Every company has a different structure which
depends on its functions and working at the marketplace. The structural change is a type
of major organisational change, this type of change generally brings various
modifications which are related to structure. When structural change occurs in an
organisation, it totally changes all major functions of an organisation and roles and
responsibilities of the employees.
 Strategic- In the era of stiff competition, every business prepares it own strategy to deal
with various opportunities and challenges at the marketplace. In strategic change,
intangible change occurs in an organisation which can’t be seen or touched physically.
Strategic change mainly leads to perform modifications in the planning and actions which
are taken by a business in long or short run.
 People- Change related to people or manpower occurs in an organisation when the
management is unhappy with current staff. Management of a company sometimes does
not feel satisfied with the performance of current staff (Coruzzi, 2020). Management,
therefore changes the staff and with the introduction of new staff organisational change
takes place.
 Processes- There are various types of processes in a company which are related to the
production of goods and maintenance of services at the marketplace. The processes
change occurs when there is a change in the production process of a company or a change
related to its operations occurs.
Divers of change (PEST analysis)
PEST analysis refers to the political, economic, social and technological factors analysis
of a company. This is a type of approach which helps in assessment of major environmental
factors which determine change in an organisation. With the help of PEST analysis it is easy for
a company to access all the macro environmental factors which impacts a business. The PEST
includes major elements which determines the growth of an organisation as well as impacts the

revenue of a business. The PEST analysis for Amazon and E-Bay is mentioned below that
derives major changes in organisation:
 Political- These types of factors are formulated by the presence of a political party and
impact caused by local government authorities on a business. Change is generally faced
by an organisation with the influence of government’s interference on E-commerce like
trade regulations and practices which impact on Amazon and E-Bay.
 Economic factors- Various economic factors which are present in the economy, impacts
E-commerce companies in many different ways. The major economic factors like
inflation. Recession and monetary policy proposed by the government mainly impact the
functioning of Amazon and E-Bay. In order to deal with economic factors, Amazon and
E-Bay has deployed effective financial management.
 Social factors- Different social factors which are present in an economy impacts
performance of the E-commerce sector (Eoyang, 2020). The living standard of society as
well as perspective of the society for a business also impact change in functioning of
business.
 Technological factors- These are main factors which impacts functioning of E-
commerce sector. As E-commerce sector widely uses information and technology in its
operations, there are various technological factors like computer systems, internet and
artificial intelligence which impact the functioning of Amazon and E-Bay.
Dealing with change
 Strategies and plans for change- In order to deal with change management, a business
has to formulate various plans and policies which are effective in gaining competitive
advantage. The strategy at Amazon and E-Bay is planned by professional management in
order to maintain effective global operations. The strategy which is related to change
requires maximum efforts by the management in order to change the perspectives and
tendency of the employees.
 Bohhner and Arnold change impact analysis- This is considered as one of the most
important model in determination of organisational change. This model mainly focuses
on what type of change an organisation needs to face and what impact that changes will
do. In other words this model performs an analysis of various consequences of change
and what essential things management needs to deal with the change. These two famous

scholars generally identify two sections of change that are traceability and dependency.
The meaning of traceability is the main link between requirements, specifications and
design elements (Huesing, 2019). When it comes to dependency, there are various
linkages between parts, logics; are derived in order to support an organisation for change.
At Amazon and E-Bay, it is essential to implement this famous model in order to get
ready to face change management at the marketplace. This model also helps in increasing
efficiency as well as competency of an organisation with the help of scientific
approaches.
LO2
P2 Influences that drive of change have on behaviour of an organisation
Psychological impact of change in an organisation
When a change occurs in an organisation, it is essential for the management to handle all
the major consequences, opportunities and challenges. There is a huge impact on the overall
working of an organisation; it also modifies all the conditions which are present in the working
environment of a company. As a result the psychological conditions of the employees are also
affected in a major sense. In order to deal with the psychological aspect of the employees, top
level management should play an effective role in an organisation. The Psychological impact of
change at Amazon and E-Bay is explained below:
 Motivation of employees- Motivation is a great factor which impacts the overall
performance of the employees and organisation. Motivation is essential part of
psychological impact when a company faces change. It is utmost responsibility of human
resource management of E-Bay and Amazon to deliver continuous motivation in
employees which is essential. In the era of stiff completion, motivation is the essential
factor which impacts performance of the employees. In order to gain competitive
advantage at the marketplace, it is essential to motivate employees in a major sense.
 Woking conditions of employees- When a change occurs in an organisation, it generally
affects the working conditions of employees. The schedule of employees totally change,
it generally impacts on the working conditions of the employees. Roles and
responsibilities also change along with the working conditions of the employees. In order

to keep the employees satisfied even after the working conditions of the employees, it is
essential for the company to keep schedule healthy.
 Harmony and development- Change in an organisation impacts on the harmony and
development between various workers. The change management in an organisation
increases the harmony development if the human resource management. Human resource
management is responsible for bringing various types of changes in an organisation. The
changes which occur related to organisational structure are essential in development of
effective employee relations.
Change impacts on team dynamics and how people are led and managed
Change occurs in organisation and impact on all the major functions of employees and
also on teams which are existing in an organisation(Kuhl, 2019). Employees are hard to manage
in an organisation; with the application of appropriate leadership styles in a business it is
possible to manage teams. The two major leadership styles which can be adopted by Amazon
and E-Bay are following:
 Autocratic leadership- In this type of leadership, all decision are taken by leader, it does
not involve various employees. This type of leadership style gives power and authority to
a leader to formulate various functions and working of the organisation. In this style of
leadership various functions which are performed in an organisation by a leader includes
autocratic operations.
 Democratic leadership- If democratic leadership is chosen in an organisation, then there
will be decision making on the basis of perceptions of all the employees. In a major
sense, democratic leadership style is effective and efficient to achieve various
organisational goals in short run.
Drivers of change
SWOT analysis- The SWOT analysis is a precise analysis which is performed by a company to
access it strengths, weaknesses, opportunities and threats which are available at the market place.
SWOT analysis is considered as a major model which is helpful in dealing change (Moore, 2020)
(Nelson, 2019). The SWOT analysis is helpful for a company to gain competitive advantage at
the marketplace. The SWOT analysis is effective in bringing competitive advantage at the
marketplace as well as effective in bringing efficiency at the marketplace. SWOT analysis of
Amazon and E-Bay is following:

 Strengths- There are various strengths of an organisation at the marketplace which are
helpful in gaining competitive advantage at the marketplace. There are various strengths
of Amazon and E-Bay at the marketplace like large number of customers, global wide
spread markets, effective digital technology and professional management.
 Weaknesses- In the global market there are several weakness of E-Commerce sector
which impacts on the performance of Amazon and E-Bay. There are various weaknesses
which impacts the performance of a business at the marketplace.
 Opportunities- In the global market, there are various opportunities which tends a
business to maximise its operations at the marketplace. The different opportunities are a
type of profit for the company, which a company can avail by essential and effective
practices at the marketplace. There are various opportunities available to Amazon to
expand their operations at the marketplace.
 Threats- A Company’s macro and micro environment contains various threats which can
harm effectiveness and efficiency of a business. In the E-Commerce sector there are
various factors which are present as a threat like malwares, cyber-security threats,
hacking which can put major harm to Amazon and E-Bay.
Responding to drivers of change used by Amazon and E-Bay
 Systems theory- This concept was introduced by Ludwig von, it is termed as an old
concept which is also known as general system theory. This concept means a company
should simply break down its complex tasks and functions in order to deal with the
organisational change. It becomes easy for the employees to determine various day to day
tasks on easy basis and helps them in accomplishment of a particular task.
 Continuous improvement model- This model is adopted by various multinational
companies like Amazon and E-Bay in order to gain competitive advantage at the
marketplace. This model states that an organisation should maintain consistency in its
operations and functioning in order to deal with a particular change. This model brings
improvement in an organisation, which is requirement of every organisation.
 Bruke-Litwen model to facilitate change- It was formulated in the year by two major
management scholars who were Bruke and Litwen. This model is helpful in dealing with
the organisational change, it is major tool used to create understanding about
organisational change. It is used to understand organisation’s component parts and their

relation with each other when a change occurs. This organisational change model is
generally used to enhance the performance of the employees (Nelson‐Brantley, 2017). In
this model all the necessary drivers of change are considered, and then the necessary
steps are taken to face the change.
LO3
P3 Different ways in which barriers to change influence the decision making in leadership
Pre-emptive and proactive response to organisational change
 Pre- emptive response- In order to deal with the organisational change in an effective
manner, it is essential for a company to prepare in advance. With the help of strategic
management in organisation, prediction of the organisational change can be done easily.
After the predictions related to change, an organisation should prepare in advance to deal
with the organisational change.
 Pro-active response- A company should be proactive while a change occurs and should
engage with all the necessary activities and techniques. The response of teams and
employees should involve maximum enthusiasm and spirit in order to deal with the
organisational change in an effective manner.
Adaptive and constructive change
 Adaptive change- This type of change in an organisation is based on dealing with new
problems which are related to concerned and desired change. The adaptive change mainly
deals in formulation of proper solution and their implementation.
 Constructive change- Constructive change in an organisational context mainly relates to
a situation which arises when an employer generally provides work beyond to contract
limits. It is a type of informal practice which is performed by most of organisations in
order to deal with extra work in an organisation.
Different approaches for determining barriers
 Schein’s organisational culture model- This is a universally accepted model which
divides culture of an organisation into three major parts namely artefacts’, values and
assumptions. This model considers these three elements as major constituents which are
helpful in determination of organisational change. Values in an organisation affect the
interaction between various employees; this is major and ethical responsibility of human

resource management to implement various factors which are effective in bringing values
in an organisation.
 Self efficiency perceptions- There are also self efficiency perceptions of the employees
which are major barrier to organisational change. Different perceptions of employees
related to organisational change are related self efficiency which brings over confidence
in mind of employees. In order to gain competitive advantage at the marketplace Amazon
and E-Bay should effectively deal with self efficiency perceptions of the employees.
 Situational resistance- When a change occurs in an organisation, the employees develop
a situational resistance in themselves. Sometimes the employees are unhappy with the
organisational change and are not willing to work for an organisation. The employees are
not ready to work in different major conditions which are a barrier in organisational
change (Workman-Stark, 2020). Situational resistance arise generally in the mind of
employees due to new working conditions after change occurs.
Leadership and decision making
Leadership in an organisational sense, play a crucial role by developing various
strategies, planning and decisions. In the era of stiff competition between several companies
choose different types of leadership styles and approaches to effectively deal with change
management. Amazon and E-Bay majorly choose democratic leadership style, in which mutual
decisions are formulated with the help of all the employees. On the other hand, in autocratic
leadership, it is essential to develop a competency approach as in this style a leader formulates
all of the decisions on own perceptions.
LO4
P4 Leadership approaches to a change initiative and situational leadership
How context of task or challenge determines leadership style or approach
Situational change: Changes in leadership aligned organisation with current trends and
catapult organisation through various uncertainty as well as certainty by disruption and confusion
of new level of success. Changes in leadership approaches within organisation empower it to
lead, motivate and inspire employees to work in direction to achieve defined goals and objectives
as well as implement sustainable changes. There are five principles that supports change
leadership are Executive presence matters, own your words, hustle, don’t confuse process with

progress and skin in the game that facilitate the organisation to accept changes and implement
them in effective manner.
Role of leader at Amazon and E-Bay in change with the function of controlling and how
they select best leadership approach when change opportunity comes
Successful changes in organisational structure and policies are depends upon leaders and
managers who direct, lead, inspire as well as support employees to implement all changes in
efficient manner. leader plays various roles to execute changes within organisation such as they
communicate all relative information to employees about changes in initial stage, engage
employee within decision-making process, hold accountability, act as a role model by
demonstrating the changes first what that are expected from employees and take effective
decisions to implement changes properly.
There are various leadership approaches that is used by organisation in order to lead it right
direction to achieve defined goals and objectives such as transformational leadership,
participatory, value based, situational and servant leadership approaches (Sucozhanay, 2018).
Leaders chose appropriate leadership by analysing organisation strengths, structure and
objectives that facilitates organisation to attain them in effective manner.
Models and theories
Kotter’s 8 step change model
John Kotter’s 8 steps of change model is popular for the implementing changes within
organisation in successful manner which is used in the many organisations such as Amazon, e-
pay and many more in order to adopt changes as well as implement them in organisation
effectively. There are different changes are happened like implementation of new technology,
new strategies, merger and acquisition and various cultural transformations as well. All steps are
defined below which can be considered by Amazon and E-Bay:
 Increase Urgency: In this step organisations identify and measuring the potential
threats as well as opportunities which are faced by organisation in near future.
There must be proper discussion is being take place among all organisational
members to measure all aspects of relative issue.
 Build guiding team: In order to identify effective changes, whole organisational
employees as well as stakeholders ensure their engagement and commitment
towards the accomplishment of changes in effective manner. effective and strong

team is developed and their weal area are improved to accept the changes within
organisation.
 Develop the vision: Core visions, values and strategies are formulated that lead
the whole employee towards realizing changes within organisation. All visions
and strategies are effectively described at all organisation level to ensure
successfully implementation of changes.
 Communicate for Buy-in: All aims and visions behind changes is communicated
to employees and these visions must be connected with performance reviews and
training to handle issues of employee effectively through involving them.
 Removing obstacles: In this phase, organisations should align whole
organisational process, structure and place to the defined organisational goals and
visions. Barriers regarding employee resistance to changes are continuously
evaluated and appropriate actions are implemented to remove all barriers that are
involved in changing process. Employee who supports in changes must be
rewarded.
 Create short-term wins: Short term goals and visions are established instead of
long-term goals that are achieved in less period of time with having lesser failure
possibilities. Accomplishment of these short-term goals motivates team to attain
whole organisational goals.
 Consolidating gains: Attain continuous improvement and organisational
development through analysing success stories of individuals and improves
employee experiences as well.
 Anchoring changes in corporate culture: When changes enhance the
opportunity for development than all these changes included in organisation
culture and ensure support of current leaders and new leaders to continue their
contribution towards implementing changes effectively.
Lewin’s change management model
In Kurt Lewin’s management model three stages model as well as a planned approach
and a framework to understand the respective process organisational changes by respective
phases such as Unfreeze, changes in transactions and freeze or refreeze. All these steps are
discussed below:

 Unfreeze: It is the most important step of entire process of change management.
This is related to the improving the readiness and willingness of people to accept
changes by fostering realization to move them from their comfort zone to
transformed situation. Organisation motivates employee to accepting the changes
for getting better result.
 Change: In phase of change management is related to the transition or actual
implementation of changes. Careful planning, strong communication and
employee engagement is required to execute changes in effective and efficient
manner.
 Refreeze: In this stage employee of organisation move from transition stage to
more stable state which is known as the stage of equilibrium in that employee
accept all new things in their working culture effectively.
Change through strategic communication at Amazon and E-Bay
Change communication is referred as the informational component of respective change
management strategy. The respective model facilitates organisational employee as well as
stakeholder to understand the importance of new initiatives (Ruben, 2019). Change
communication strategies should be delivered timely and consistent information. Implementation
of new technologies, changes in leadership, updating existing business practices required
effective communication. There are four stages are applied by organisation to implement the
model discussed below:
 Building internal awareness: In this step, organisation building internal
awareness by communicating all changes clearly to employees on time in order to
eliminate employee resistance to changes.
 Create understating: Effective communication creates proper understanding
about changes and relative strategies as well as describe benefits of changes to
enhance positive side of changes.
 Employee acceptance: In this step all changes are accepted by the employee
according to employer’s instructions. It is employer responsibility to keep
employees updated as well as involved in organisational process.
 Employee commitment: Effective communication ensures the commitment of
employees towards implementing changes in efficient manner.

Principles of change leadership
Changes in leadership aligned organisation with current trends and catapult organisation
through various uncertainty as well as certainty by disruption and confusion of new level of
success. Changes in leadership approaches within organisation empower it to lead, motivate and
inspire employees to work in direction to achieve defined goals and objectives as well as
implement sustainable changes. There are five principles that supports change leadership are
Executive presence matters, own your words, hustle, don’t confuse process with progress and
skin in the game that facilitate the organisation to accept changes and implement them in
effective manner. These principles are very much important for Amazon and E-Bay, these E-
Commerce companies should choose all these principles in order to maintain efficiency.
CONCLUSION
From the above stated report it can be concluded that change is essential part of
organisational development. Change management is necessary to deal with situation of
organisational change in a precise manner in order to gain competitive management. The above
discussion concludes that in order to deal with organisational change, leadership and application
of various change management play a crucial role. Effective planning and efficient strategy
always play a crucial role in development of change management. This report also concludes that
by choosing an appropriate leadership style an organisation can achieve competitive advantage at
marketplace.

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