Change Management Report: Drivers, Impact, and Leadership Approaches

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This report delves into the intricacies of change management, focusing on its impact on organizational strategy and operations. It uses case studies of AGFA and Golden Wonder to illustrate how changes in technology and product development affect business activities, productivity, and profitability. The report explores drivers of change, including internal and external factors analyzed through SWOT and PEST analyses. It examines the effects of change on leadership, individual behavior, and team dynamics, while also discussing strategies to minimize negative impacts using Lewin's change management model. Furthermore, the report investigates barriers to change, their influence on leadership decision-making, and different leadership approaches applied in managing organizational transformations. The analysis provides insights into strategic changes, emphasizing the importance of adapting policies, procedures, and target markets to enhance operational efficiency and future growth.
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Understanding and Leading
Change
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1. Introduction of the drivers that impact changes in organizational strategy............................3
2. Overview of case studies ........................................................................................................4
3. SWOT analysis .......................................................................................................................4
4. Impact of change and its effects on organizational strategy and operations ..........................5
5. Effect of change on leadership, individuals and team behaviour ...........................................6
6. Minimising impact of change in the organization ..................................................................6
PART 2............................................................................................................................................7
1. Introduction ............................................................................................................................7
2. Application for force field analysis ........................................................................................7
3. Different barriers to change and their influence in decision making by leaders.....................9
4. Accomplish changes and determining the success of changes............................................10
5. Different leadership approaches with examples ..................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Change management is an approach which deals with transformation of organisational
objectives, technologies or processes. The purpose of introducing change management is to
implement strategies for controlling changes and help employee to deal with changes. In this
report the case study will discuss about two companies that is Golden wonders which deals in
food manufacturing industry and bring new flavoured product in markets. Another firm is AGFA
which deals with IT industry and introduces innovative technologies in markets. In this report
the discussion will be based on the changes that impacts on the firm's strategy and operations.
The study will be based on drivers that influences organisation behaviour. Discussion will be
based on measure to minimise negative impacts of change on the organisational behaviour.
Further the study will be based on determination of barriers that affects the decision making of
leaders. Lastly the report will discuss different leadership approaches.
MAIN BODY
PART 1
1. Introduction of the drivers that impact changes in organizational strategy
Change in business refers to the strategy that will be implemented for the purpose of
bringing something new into it. It may include transformation of policies and procedures related
to product and services it offered. Changes has been made by both the companies as AGFA and
Golden wonder. As AGFA is dealing in imaging industry and it bring consistent change in
business by introducing new technology into business. On the other hand, Golden wonder is
manufacturing snacks such as Wotsits, Nik Naks and Wheat crunchies (Neumann, James and
Vince, 2019). AGFA bring transformation in business by adopting new technology and golden
wonder changing its snack into various flavours and facilitate change in business. Due to these
changes this will have greater impact on operations as well as productivity. Change lead to bring
transformation in business activities and provide various aspect that lead to affect business
activities.
Change may be planned or unplanned both will have greater impact on business. AGFA
change its technology of making digital analogue by implementing innovative ideas into it. This
changes lead to impact on operational cost has been increase by making changes in the
company. Secondly, in Golden wonder also changes has been done as by introducing new low
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fat potato chips into the market. After implementing changes in both business they have to face
many challenges while doing market research. Therefore, change management affect
productivity as well as profitability in business.
2. Overview of case studies
AGFA deals in imaging industry that develop analogue and digital imaging systems. It
has divided its operation into three parts such as consumer imaging, graphic systems and
technical imaging. Its product involve high level of innovation that help in increasing
productivity as well as profitability for the future. For the purpose of remaining a market leader it
has invested money in technology that bring more opportunities in digital sector into it.
Furthermore, it has invested into digital technology as transforming into newspaper production.
Under digital technology it has share of 70% in the market. It is using different matrix that help
in providing digital images to its customers (van der Voet, Kuipers and Groeneveld, 2015). It is
producing two main products that include analogue and digital. Digital technologies helped in
transforming work in hospital radiologist.
Second case study is based upon Golden wonder company that deals in household
product such as Wotsits and Jungle Fresh nuts. It believe that innovation plays an important part
for doing every business. Firstly, it provide salted crisps as well as flavoured crisps. On the other
hand it also introduce Oxo that is followed by cheese,onion, salt and vinegar flavour that is most
popular nowadays. After seeing consumer consciousness regarding health company is providing
health conscious snack to consumers that help in satisfying its needs and wants. Political changes
also plays an important part in the snack market (Al-Haddad and Kotnour, 2015). After
conducting research and development it help in gaining technological advantage as came to
know about the present market condition that help in future growth.
3. SWOT analysis
It includes internal factors that affect business operations of the company. This analysis
help in developing strategic planning and competitive position in the marketplace.
Strength
The biggest strength of AGFA is it invested more in technology that help in providing
better opportunities for it in the future. On the other hand, Golden wonder investing money in
research and development that help in knowing market condition and building brand image in the
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market. These strength help in increasing productivity as well as profitability of the companies.
Therefore, lead to provide future growth.
Weakness
Weakness of AGFA is it has not been able to capture market easily as strategies that will
be implemented by it for future growth will not be able to meet expectation of consumers (SWOT
analysis: What it is and when to use it, 2019). Secondly, Golden wonder weakness is that proper
strategies will not be made by company for getting success in the future. This will not help in
getting success for the future.
Opportunities
As AGFA is adopting technological changes in business time to time that help in
providing them better results for the future. This help in providing various perspective and more
growth in business. In Contrary, Golden wonder has opportunity as it is doing proper research
and development that is providing various aspect to it in the future.
Threats
AGFA biggest threat is its competitor that is providing different aspect of business to it
and decreasing market share of the company from market. Availability of different technological
changes as adopted by its competitor reduces its market share. Golden wonder's also biggest
threat is its competitor that decreasing its growth from the marketplace in the future. Therefore,
this create difference in sales and profitability of companies and less growth.
PEST
These are the external factors of the company that will have greater impact on company's
operation.
Political Factors
AGFA business will be affected by political stability as it is going to establish business
into other country then it have to measure different perspective of business. As political
instability will have impact on business operations.
Economical Factors
Changing in exchange rates affect business operations of AGFA company. As this lead to
decrease export and import of companies from foreign markets.
Social Factors
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Beliefs, values and customs affect AGFA operational activity as different culture of
employees are working in the organization that lead to impact company in the future.
Technological Factors
Changing in technology that lead to have impact on working of AGFA as due to this its
operational cost get increase as adopting new technology in business.
4. Impact of change and its effects on organizational strategy and operations
Change management is having a greater impact on strategy and operations of the
company that lead to provide various aspect in the future. As AGFA is adopting technological
change in the company that create differences in providing various aspect to consumer.
Implementation of technological changes by the company will increase operational cost of it that
lead to slow growth in the future. It is important in considering that these changes affect
operational activity as well as profitability of business. As this also has an impact on strategy of
organization as changes made in business provide drastic change as policies and procedures of
the company affect and it take time for employees to accept that change. As AGFA bring
technological change so for that company also have to invest on training and development of
employees based on new technology (Nelson‐Brantley and Ford, 2017). On the other hand,
Golden wonder is implementing changes based upon research and development that will be
gaining through market research. This provide a huge affect on strategy that has been made by
the company for fulfilling its objectives and goals. These changes provide different aspect that
lead to gain market share for the future. It is important for companies to make changes that lead
to bring more opportunities and future growth. It is not easy for employees to accept change in
the organization as that create problems in adopting change in business. Therefore, change
provide impact on operations as well as productivity in business.
Strategic change in AGFA are related to changes in policies and procedures of the company that
lead to recreate business operations for the future. This will also have an impact on business
decision making process that will emphasize changes in business. Changing in target market of
the company will provide a strategic change in business and enhance operations for the future.
As AGFA structure will be changed that provide strategic change in business for the future.
5. Effect of change on leadership, individuals and team behaviour
Change bring transformation in business activities as changes will be made related to
policies and procedures of the company. It is having an impact on the following such as:
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Leadership:- As organizational change affect behaviour of employees as well as working
environment in the company. As in AGFA behaviour of leader is different with different
employees that depend on the condition of changes that has been made for future course of
action. As leader have to manage whole team and after changes made in business it have to adopt
various strategies to deal with change in the future. This will have adverse effect on business
operation and productivity of team as members are changing and they are having different
perspective of doing work in the company. On the other hand, Golden wonder leader's
perception is also different as after implementing change in business. For example: In AGFA if
any policy will get changed that this will impact on leader of the company as leader have to take
training of its subordinates that help in creating understanding between them so that they are ble
to manage work accordingly.
Individuals:- After implementing change in business individuals are more affected from it as
they are shifted from one team to another. They will get different perspective of getting work
into different teams that create differences for the future and affect business. For example:
Changes in business affect employees as technology will be changed that will affect working of
an individual as it have to take training related to system that will be implemented into business.
Team behaviour:- Behaviour of team members are also affected due to change in business. As
new members are joining team so they are having different perspective of doing work that has
clash ideas of different team members and this will sometimes bring conflict between them.
Therefore, team behaviour is important for managing change in the company. For example:
Changes in AGFA affect team behaviour as different members is having different perspective so
that may create confusion between them and through this behaviour of members will get affected
in the company.
6. Minimising impact of change in the organization
These changes has been minimized by adopting Lewin's model of process change that
reduce impact of change in business.
Lewin's change management model
This model is given by Kurt Lewin that include three steps such as unfreezing, changing
and refreezing. Unfreezing stage states that before implementing change in the Sainsbury it
must be go through its initial stage so that there may not be creating any confusion regarding
changes that has been made in the company (Mayer, 2015). Secondly, in changing stage process
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will be changing from one state to new state that help in minimising change for the future.
Lastly, Refreezing is the process in which changes has remain stable after coming from changing
state to its original stage in the company. Therefore, this model help in minimising change in
business in the future. As measures that have been taken to make effective working in the
organization are making use of effective human resources in the company that lead to decrease
operational activity of the company. For minimising change in AGFA effective measures
include use of human resources and focusing on development of employees that help in
minimising change. Ineffectiveness include improper management of time that lead to create
problem for employees in the future.
PART 2
1. Introduction
Golden wonders has been recognised over fifty years and has developed reputable image
in the markets. The company deals in food manufacturing industry. The products that
organisation offers are crisps, groovers, in snacks it offers Nik Naks, Jungle Fresh nuts and
wheat Crunchies(Frankel and PGCMS,2019). The company pioneered for first ready salted
crisps and also introduced flavoured crisps like Oxo which is combination of cheese, onion and
vinegar flavour. In years 1995 the organisation was acquired by management-buy-out team
which was one step ahead of competition in introducing continuous innovation and perpetual
changes.
2. Application for force field analysis
Force field analysis is a change model which is created by Kurt Lewin. Force field
analysis is used as tool to determine the changes that is taken place in the organisation. The
models was developed in 1951 which is used to understand the problems that are based on the
situations which effects the planned changes in the firm. The forces or factors that affects the
situation are mainly due to social situations as Lewin used to determine the group and individual
human behaviour in his model. If Golden Wonders strive to maintain the equilibrium between
driving forces which is an balanced force and stronger then restraining force which is another
balancing force(Huertas-Valdivia, Gallego-Burín and Lloréns-Montes, 2019).
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(Source: Lewin's force field model, 2019)
Driving forces that supports the applicability of force field analysis in positive way in
golden wonders company are
Changing market: Golden wonder get positive supports when it enters in new market with
introduction of new product. As it enhance the company to attract large pool of customers. By
changing market the company is able to capture larger segment of the market and able to create
new customers.
New technology: By implementing changes in new technology as it supports the change in
positives way. With introduction of new technology, company is able to increases its
productivity which enables the it to produce at large economies of scale.
Competition: Changes in the company increases its ability to compete from rival firms in the
markets. Changes done for betterment of product and services increases the capabilities of
company to compete and provide customers satisfaction(Basran and et.al.,2018).
Pressure on management: Change management increases the pressure on management due to
which the firm tries to analyses proper working at each and every step of the business operation.
Incentives: Employees in the company are able to gets chances for earning incentives which
supports the organisation to deal deals with changes without any problems. The employee
increases their productivity as incentives motivates employees to earn.
Illustration 1: Lewin's force field model
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The restraining forces that are in opposition for the change management in the golden
wonders are
Individual Fear:This force puts negative impact on the employee as when change introduce in
the company employee had fear to deal with changes. Some times employee is not able to handle
the work volume.
Hostility: When change occur in firm the leaders behaviour changes due to the pressure of work
on leaders to guide employee to deals with the change. As it puts negatives impact on the
employees
Organisation inertia: Adoption of changes by the organisation causes to decreases the growth
and development of the organisation. Which may lead the golden wonder company to faces weak
financial statements(Gandolfi and Stone, 2018).
3. Different barriers to change and their influence in decision making by leaders
Golden wonder company face barriers while implementing change as it affects the daily
working operations and production of the firm. Some of the barriers are broken communication,
lack of employee involvement, organisational complexity, etc.
Broken communication: Leaders face difficulty in taking decision when the change occur in the
organisation as proper channels of communication gets disconnected when changes is
implemented in firm. In golden wonder company the leaders need to adjust and communicate
their strategies effectively to employees.
Lack of employee involvement: It is the common barriers which is faced in change
management. As the employee in the organisation always faces fear to change due to which they
cannot easily deal with the changes and are not able to adapt in the dynamic working
environment of firm. As the leaders need to comfort the employees and make them ready to
adopt the changes. For this leaders can provide training and educational programs to adopt the
changes(Brunsson and Olsen, 2018).
Organisational complexity: The structure of organisation should be flat structure which ensure
smooth flow of communication and business activities. As complex structure of organisation
creates barriers to implement change in the organisation. As complexity in organisation affects
leaders to take appropriate decision for employee and the company. Leaders can decreases the
complexity by adopting democratic leadership style which creates flexible working environment
for employee and decreases conflicts while implementation of change in organisation.
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4. Accomplish changes and determining the success of changes.
The Golden wonders adopted change for bringing new and innovative product in markets
which can in influence people to buy the product. According to Lewin's change management
models the success of changes depends upon three stages that are unfreeze, change and freeze.
Unfreeze stage: In this stage, leaders motivates the employee for willingness to adopt the
change and fostering them for realisation towards present comfort zone to transformed situation.
Employee made to research for new product that company can introduce in market.
Change stages: In this stage actual transformation takes place that is implementation of
plan. The company analysis the success of new product in the market by making changes in
product to increases its potential to stay in market(van den Brink and Benschop, 2018).
Freeze stage: In this stage company moves from change to become stable in market. The
new product is being advertised in markets so that people can accept the new product.
According to Kotter's eight step model for successful change as it includes following steps
Increase Urgency: Ideas that golden wonder is introducing should be powerful. As the company
needs to assess the threats related to introduction of new product in the market.
Build training team: The team leaders can help to company to implement change that
introduction of new product may require.
Develop vision: The company can develop vision for providing best quality product to its
consumers.
Communicate with buyer: The firm needs to communicate with buyer for fulfilment of the
needs and requirement that consumers wants in the product and make changes in product
according to the requirement of consumers(Huertas-Valdivia, Gallego-Burín and Lloréns-
Montes, 2019).
Remove obstacles: The company need to remove obstacles for success of its new product in
markets.
Create short term goals: The company can make short term objective like aiming to increases
sale of new product by 30% till end of 2020.
Sustain Acceleration: For sustaining the growth of new product kotter suggested to keep
introducing of changes(Gandolfi and Stone, 2018).
Anchor for change: The changes in product is not as employees in organisation wants changes
in organisational culture as it will help to promote golden wonders.
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Adoption of the changes helped the company to become more successful due to adoption
of new technology helped the company to improve its productivity and increases its capabilities
to compete with the rivals in the market.
5. Different leadership approaches with examples
Different leadership approach are democratic leadership, autocratic leadership and
situational leadership which are explained below
Democratic leadership:In this leadership approach the leaders in organisation involves
employee in decision-making process. For example Golden wonders follows democratic
leadership styles as the leaders involves its member in decision-making process which increases
the availability of the ideas for the leaders on large pool.
Advantages: the leaders is able to get solution for complex problems. Leaders encourages
employee to to think innovatively for solving the problem. With coordination in between
employees it creates strong team for the organisation.
Disadvantages: it creates conflicts among the employee while taking decision. Leaders is nota
able to get appropriate idea for solving the problem (Huertas-Valdivia, Gallego-Burín and
Lloréns-Montes, 2019).
Autocratic leadership: In this leadership style the leaders does not involve its member in
decision-making. For example leader can adopt this leadership style when the company needs to
take quick decision without concerning other members.
Advantages: leaders are able to take decision quickly without consulting anyone in the
organisation. Another advantages is that it improves productivity and communication between
top authority and lower authority.
Disadvantages: leaders has limited scope for solving the complex problems. Another
disadvantage is that organisation depend upon the leaders for their feedbacks, instruction or work
duties.
Situational leadership: In this leadership style leaders involve member in decision making
process when ever the situation demands for the help of employees. For example golden wonder
can adopt this style when leaders faces difficult situation like declining sales of the company the
employees can be involved to suggest ideas to the leaders.
Advantages: Leaders recognise the needs to be flexible as there is no set of rule that needs to be
followed.
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Disadvantages: Leaders needs to meets the requirement on instant bases as it does not fulfil the
long term needs. For example when firm faces situation of less sales then leader can take help
from employees to increase the sales of product(Frankel and PGCMS,2019).
CONCLUSION
From the above study it can be summarised that change management sometimes better
for the company as that help in meeting expectation of consumers in the market. It plays a crucial
role for bringing more opportunities and growth in business in the future. Change is essential for
every business to get succeed in the marketplace. Changes can be planned or unplanned that
depend on current market condition that help in achieving business objective. Therefore, change
bring effectiveness and productivity of business for achieving success.
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REFERENCES
Books and Journal
Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model
for successful change. Journal of Organizational Change Management.28(2).pp.234-262.
Basran, J. and et.al.,2018. Styles of leadership, fears of compassion, and competing to avoid
inferiority. Frontiers in psychology.9.
Brunsson, N. and Olsen, J.P., 2018. The Reforming organization: making sense of administrative
change. Routledge.
Frankel, A. and PGCMS, R., 2019. What leadership styles should senior nurses
develop?. Hospital.6. p.08.
Gandolfi, F. and Stone, S., 2018. Leadership, leadership styles, and servant leadership. Journal
of Management Research.18(4). pp.261-269.
Huertas-Valdivia, I., Gallego-Burín, A.R. and Lloréns-Montes, F.J., 2019. Effects of different
leadership styles on hospitality workers. Tourism Management.71. pp.402-420.
Mayer, C., 2015. How Colleges Change: Understanding, Leading, and Enacting Change by
Adrianna Kezar. The Review of Higher Education.39(1).pp.167-170.
Nelson‐Brantley, H.V. and Ford, D.J., 2017. Leading change: a concept analysis. Journal of
advanced nursing.73(4).pp.834-846.
Neumann, J.E., James, K.T. and Vince, R., 2019. Key Tensions in Purposive Action by Middle
Managers Leading Change', Research in Organizational Change and Development
(Research in Organizational Change and Development, Volume 27).
van den Brink, M. and Benschop, Y., 2018. Gender interventions in the Dutch police force:
Resistance as a tool for change?. Journal of Change Management.18(3). pp.181-197.
van der Voet, J., Kuipers, B. and Groeneveld, S., 2015. Held back and pushed forward: leading
change in a complex public sector environment. Journal of Organizational Change
Management.28(2).pp.290-300.
Online
SWOT analysis: What it is and when to use it.2019.[Online].Available
through<https://www.businessnewsdaily.com/4245-swot-analysis.html>
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