Effective Leadership and Change Management in Dynamic Market Economies

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Understanding and Leading
Change

An organisation performs their business
operations in a competitive market economy
through effective leadership and change
management strategies.
It is essential for organisations to implement
appropriate leadership and change management
strategies by resorting to models and theories
that would improve the leadership approaches of
the organisation
Introduction

 Political factor:
 Due to Brexit, there have been various changes in the political structure of the
country. This has also affected the business formation of Sykes holiday cottage.
 Economical factor:
 The economy of the country has been affected hugely after Brexit. After British
union exited from the European Union there was huge issues faced in
exporting goods to Europe. Due to this Smith Brothers have faced losses as
their trade business with the European cities were stopped (Pan et al., 2018).
 Social:
 Social factor is indicated as the buying behaviour of the people. Sykes provide
services that are satisfying to the requirements of the customers. The buying
behavior of the customers has been met by Sykes by implementing innovative
strategies to enhance their online services.
 Technological factor:
 Sykes had gone through technological changes for advancing the functions of
its business. By implementing advanced technologies Sykes have enhanced
their customer services.
Part A (Responding to change)

Environmental factor:
The environmental factor has influenced Smith
Brothers to implement a better strategy for their
construction business. The organisation proceeds their
construction business by analyzing the environment of
the company.
Legal:
Due to Brexit the legal structure of the country has
gone through few changes. Smith and Brothers also
made structural changes in their business. This has
somehow created an negative impact on the employees
that was solved by the leaders later on (He, 2015).
Part A (Responding to change)

Internal drivers of change:
The internal drivers of change are referred to the
organizational changes. The organizational changes
include cultural changes and change in regulation of the
organisation.
Cultural
Sykes maintain a competitive organizational culture. They
believe in delivering excellent services to the tourists.
Innovation
Sykes had gone through a change in its business
regulation. The employees were not comfortable with the
change at the beginning; they somehow felt insecured
with the changes.
Part A (Responding to
change)

 Provide effective training:
 The employees must be provided with effective training so that
the employees can learn and adopt the changes properly. The
training can be given with the help of online modules or by
conducting face to face training session.
 Developing effective communication process:
 The employees do not feel connected with the organisation if
there is lack of proper communication process within the
organisation. The employees need to feel motivated in order to
perform better.
 Measuring the change process:
 The change process should be analysed and evaluated from
before, so that the unnecessary issues can be avoided afterwards.
The negative and positive impacts must be measured so that the
circumstances can be made in favour of the organisation.
Part B (The impact of change)

The force field analysis was created by Kurt Lewin in
1940s. Lewin used this in he was working as a social
psychologist. This is however used in making
communication with the mass. The Force Field analysis
allows maintaining equilibrium between two forces.
For carrying out the Force Field analysis the steps given
below should be followed:
Step 1: Describe your plan or proposal for change:
Step 2: Indentify Forces for change:
Step 3: Indentify Forces against change:
Step 4: Assign Scores:
Step 5: Analyse and Apply
Barriers for change

Several factors that influence modifications in the
technological, social and environmental aspects of the
company force the management of the company to
perform operations change management to enhance
their business performance in the competitive market
economy.
The organisations such as Sykes Cottages, Verdant
Leisure and Smith Brothers have to perform
appropriate change management in order to succeed in
the competitive market economy. Thus, it is essential for
organisations to implement various leadership
approaches.
Applying different leadership approaches to
dealing with change

In the competitive business environment, this approach
to leadership provides the management with a variety of
leadership styles.
In lieu of the transitory phase the UK market economy
goes through due to political instability post-Brexit,
Verdant Leisure has to apply situational leadership
approach to improve their business operations.
Verdant Leisure can apply situational leadership to deal
with the various types of internal issues such as
customer satisfaction, employee relations and
development of new destinations the company face in the
UK market economy through legislative regulations the
Brexit referendum may present
Situational leadership approach

 This leadership model provides the organisation to form an
appropriate internal environment that could result in the success of
the company in implementing changes in organisational strategies.
 Sykes Cottages can implement the Kotter’s 8-step change model
as a form of leadership to motivate their employees to perform
better in the market economy.
 Creating a sense of urgency within the organisation would ensure
that the employees are eager to accept new changes in their
procedural operations.
 By building effective teams with an appropriate vision for the
changes, provides the organisational management operational
benefits. Communication among the employees and the
management would enhance the operations within the organisation.
Kotter’s 8-step change model

 Lewin’s Change Management model provides organisations to
perform their operations in implementing and addressing change
within their external and internal business environment following
three primary stages. The unfreeze stage would provide the
organisations with preparation for the change in their internal
operations (Doppelt, 2017).
 The unfreeze-change-refreeze pattern of operations would allow the
company with the facilitation of implementing changes within the
organisation. The change process within the organisation provides
the employees with an environment that facilitates changes across
the organisation.
 The Smith Brothers could benefit by utilising this model of change
management and leadership approach as it would allow the
company to function efficiently in the competitive market economy.
Lewin’s Change Management model

It can be concluded that managing change and
implementing appropriate leadership strategies
improves the operational function of
organisations.
Organisations need to implement appropriate
leadership approaches to their internal
operations that will enable the organisation to
integrate modified strategies in their operational
functions.
Conclusion