Change Management Process in Organisations: A Report

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Understanding and Leading Change
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Introduction:
The assignment aims to understand the importance and effect of the change management process
in organisations. This report includes an assessment of various change drivers with the help of
real-life examples. This is followed by ways to reduce the negative impact of change with the
help of models and theories. This also has a Force field analysis for a selected organisation to
identify the resisting and driving forces that are associated with change.
Change management is an approach to handle the change process in the organisation. There can
be various reasons for change such as a change in technology, strategy, challenges of trading
conditions, economic downturns, growth, government legislation etc. Change is a part of an
organization as organisations are continuously evolving and contracting or expanding the
activities(Dumslaff,2019).

Contents
Introduction:....................................................................................................................................2
LO1: Compare ways in which change impacts on an organisation’s strategy and operations........4
P1: Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations....................................................................................4
M1: Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected....................................................................................4
LO2: Evaluate the influences that drivers of change have on organisational behaviour.................7
P2: Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation.......................................................................7
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour..............................................................................................................8
M2: Apply appropriate theories and models to evaluate organisational response to change
critically.......................................................................................................................................8
P4: Explain different barriers to change and determine how they influence leadership decision-
making in a given organisational context..................................................................................10
M3: Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making.........................................................................................................11
Conclusion.....................................................................................................................................13
References:....................................................................................................................................14
List of tables:
Table 1 Drivers for case study 1......................................................................................................5
Table 2 Drivers for case study 2......................................................................................................5

LO1: Compare ways in which change impacts on an organisation’s strategy
and operations.
P1: Compare different organisational examples where there has been an impact of
change on an organisation’s strategy and operations.
Change management is an approach to move an organisation to a desired state from the current
state. Because of the changing time and evolving nature of the organizations, every organisation
has to undergo the change process.
So here are two real-world case studies to see the impact of change and change management
process on the behaviour of the business.
Case study 1- Coca-Cola:
Coca-Cola is a company that make and sell cold drinks. In the 1980s, the biggest competitor of
the Coke was continuously and destructively targeting Coca-Cola. Then Coca-Cola has to re-
evaluate the offerings. Thus, Coca-Cola decided to introduce a sweeter soda. Now,
unfortunately, people didn’t like that new beverage that much. After that, the management team
of the Coca-Cola Company decided to replace this with new coke that is made by using old
establish formula. This helped Coca-Cola to maintain its market. Coca-Cola listened to the
demand of the customers and strived to produce diverse products. This helps the company to
expand to the new markets (Son, 2017).
Case study 2- Toyota
In the outcome of 2nd world war, the auto market business was near to the destruction. To handle
and overcome this situation, an engineer at Toyota suggested to the managers to implement a
just-in-time method in the manufacturing field. The engineer suggested that it will be more
sensible if equipment supplies should be received at that moment it was ready for use instead of
having order and store a large amount of machinery and equipment. This change helps Toyota to
avoid money, time and energy required to deal with the management and care of the equipment
that is of no use and collects dust until they were required (Son, 2017).
M1: Assess the different drivers for change in each of the given examples and the
types of organisational change they have affected.
Change drivers are the external and internal factors that force to change something in
organisational behaviour such as technology, geographical environment, new CEO, resources,
customers, competitors etc.
Internal change drivers can be:
 The sense to do better
 High profit

 Department conflicts
 To achieve greater flexibility
External change drivers:
 High competition
 Political interest
 Economic conditions
 Customers
 Change in technology
 Geographical change
 Legalisation
 Change in workforce composition (levi and Lawn, 2019)
Drivers of change in Case study 1:
Table 1 Drivers for case study 1
Drivers of change
Internal External
Capabilities and resources: Coca-Cola has
the capability to get back into the market. Also,
the Cola-Cola has its famous and older formula
that helps Coca-Cola to get back its position in
the market.
Customers: Dissatisfied behaviour of
customer forces the company to change the
strategy. Going according to the customer's
demand, help the company to maintain its
market and customer trust.
Dissatisfaction: Dissatisfaction of the
company because of a decrease in company
growth forced the organization to make a
change in strategy.
Competitors: Due to the continuous and
aggressive targeting of Pepsi, Coca-Cola has
decided to introduce a similar drink as Pepsi,
but this negatively affected the market. Thus,
the company decided to get back to its original
formula.
Drivers of change in case study 2:
Table 2 Drivers for case study 2
Drivers of change
Internal External
Resources: Wastage of money, time and
energy forced the organisation to change in the
approach and adopt a just-in-time method for
manufacturing.
Government: Word war 2nd caused destruction
in the Japanese auto marketing field. Thus,
Toyota decided to change its manufacturing
strategy to maintain its market.

Comparison of case studies:
After the analysis of these two case studies, it is clear that change plays an important role in the
success or failure of an organisation. In both the case studies, the similarity is that major change
drivers are external. But both the organisations followed a different approach to deal with
change. In the Coca-Cola case study, the change is managed by using an older formula in a
different way, whereas in the case of Toyota; new approach (just-in-time) was adopted to handle
the change.

LO2: Evaluate the influences that drivers of change have on organisational
behaviour.
P2: Evaluate the ways in which internal and external drivers of change affect
leadership, team and individual behaviours within an organisation.
In an organisation, there can be a number of ways in which external and internal drivers can
affect the team, leadership, individual behaviours in the organisation. Following are some
examples where drivers of change affect organisational activities:
 Irrelevant and insufficient training can affect the productivity of the team
 Lack of proper communication can also affect individual behaviour. For example, if a team
member is not properly communicated about the project management plan, then he may feel
isolated from the team
 Dissatisfaction: The customers’ dissatisfaction is one of the major drivers for the change. As
it affects the relationship and business.
 Resources: Leaders and team are depend on the resources of the organisation. These
resources are staff, fund, technology and other physical resources. In the case of Coca-Cola,
the company have a resource in the form of older formula. On the other hand, Toyota has a
lack of resources due to war. Resources affect the success of management.
 Political factor and Government: Government and political factor have a major influence
on how leaders achieve the goal. In the case of Toyota, lack of resources and auto market
field destruction is caused by World war 2nd.
 Customer: Customer also has the capabilities to bring change to the organisation. Customer
demands, dissatisfaction forces the leader and team to bring change into the strategy and
working behaviour.
 Market conditions: Market conditions are always not static. These are affected by the
continuous change in requirement, expectation and desire of the customer(Son, 2017).
Comparison of case studies:
After the analysis of these two case studies, it is clear that change plays an important role in the
success or failure of an organisation. In both the case studies, the similarity is that major change
drivers are external. But both the organisations followed a different approach to deal with
change. In the Coca-Cola case study, the change is managed by using an older formula in a
different way where, as in the case of Toyota; new approach (just-in-time) was adopted to handle
the change.

P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.
Change management has always been a difficult task. A minor change in organisation behaviour
can cause a huge impact on the activities. If change is not handled properly, it can negatively
affect the organisation. Such as:
 Loss of main employees
 Removal of management at senior level
 Loss of position in the market
 Loss of credibility of stakeholder
So there can be following measures that can be used to reduce the negative impact of change
process on the organisational behaviour:
Be on time: To reduce the negative impact of change, this is necessary to announce the change
as quickly as possible to avoid rumours.
The past: Take help from past incidents, find out the problems in the previous change
management process and try to avoid them.
Watch for the reaction of staff: Staff plays an important role to give a signal that something is
not good with this change. Rather than letting it go, ask the staff what they did not like about the
change and how to improve it.
Involvement: Involve the stakeholders and interested parties in planning of change for their
suggestions and new ideas for change implementation. Small groups of people should give the
responsibility to handle certain parts of the change programme to make it better.
Alignment with new technology: Technological advancement helps to manage the change
inefficient manner.
Communication: To implement a change successfully, it is necessary to communicate with
everyone about everything to avoid uncertainty about the change.
Training programs: Training programs should be conducted to develop the skills to support the
change management process (Galli, 2019).
M2: Apply appropriate theories and models to evaluate organisational response to
change critically.
Communication, interviews and regular reviews are the basic ways to evaluate the response of
organisation towards change. There are various models of change management such as the
McKinsey 7-S model, Lewin’s Change management model, ADKAR model, Kotter’s 8 step
change mode etc.

For example, Deming Cycle (PDCA), it is known as plan, do check and act. This is a process
improvement methodology. This includes 4 steps that help to improve a single process(Galli,
2018). The 4 steps are;
Plan: This step includes the identification of insufficiencies of the process. This help to find out
the potential solutions for improvement.
Do: This phase refers to the implementation of the changes. It is suggested to implement in small
parts of the organisation to reduce risk.
Check: This phase help to evaluate the impact and organisational response towards the process.
Act: If there is no positive result of the change process, then go back to the planning stage and
starts it again inefficient manner.
In case of change management in an organisation, this PDCA cycle can be used for process
optimisation. If the change process is organisation wide, then use either Lewin’s change
management model or McKinsey’s 7-S model (Galli, 2018).

LO3: Determine how barriers to change influence leadership decision-
making.
P4: Explain different barriers to change and determine how they influence
leadership decision-making in a given organisational context.
To understand the resisting and driving forces of change following is an example of the Food
and Agriculture organisation that is situated in the UK. This is an organisation which creates
products for agriculture and food industry. This organisation adopted the force field analysis
technique to upgrade the factory with new equipment and machinery.
On the basis of force field analysis for this situation, the following are the barriers and drivers of
change along with the impact of the decision-making process.
Resisting forces and their influence:
 Technological barrier: It is because individuals in organisations have less knowledge to
accept, understand and apply the new technology in equipment. This may affect the working
process and desired outcomes may not be achieved.
 Environmental barrier: This barrier occurs because of the negative impact caused by
machinery on the environment. Equipment and machine require more power and energy,
which may negatively impact the environment and also be costly for the organisation.
 Financial issue: This barrier occurs because of less funding for the change. In the given
change scenario, Equipment quality may be compromised due to this barrier as high-quality
machines are costly. Also, the maintenance cost is high for those (levi and Lawn, 2019).
Driving forces and their influence:
Customer’s demand: The main driving force is for this change is high customer demand for the
new and quality product. If an organisation achieves this, then it will help to get high customer
satisfaction. It will also create a healthy relationship with the customer. Thus, helping to increase
sales and gain profit for the organisation.
Improved efficiency: Second driving force for this change is that the use of new Equipment and
machinery will improve the efficiency of the work. Machines will take less time to complete the
work in comparison with a human. Thus, it helps the team to work on the other important areas,
rather than working on the production work of the product.
Improved quality of the product: Use of equipment for the production and other work can
reduce the chances of mistakes and errors and thus, help to achieve a high-quality product in less
time. Again, the quality of the product helps to achieve customer satisfaction(levi and Lawn,
2019).

Less human intervention required: Working with machines required less human intervention
as human skills are only required to operate and manage the equipment — this help to reduce the
workload.
M3: Use force field analysis to analyse the driving and resisting forces and show
how they influence decision-making.
Force field analysis is a technique that is used to inform decision making to plan and implement
change management. Force field analysis gives an overview of the problems in the change
process that needs to be tackled by the organisation. The area of change to be discussed for this
example is “upgrade the factory with new equipment”. In the below force field analysis, all the
forces that are in against of the change are listed in the right column, and forces that are in
support of change are listed in the left side. After the force field analysis, the viability of the
project can be decided. This help to analyse how to implement change successfully by reducing
the strength of resisting forces or by improving the strength of the driving forces. The first option
is a suitable way to handle this.
As shown above, driving forces for the change are the improved speed of production, improved
sales, and customer’s demand for new and quality product, improved efficiency and faster
solution. Whereas, change resisting forces are lack of skills to handle new technology, the
environmental impact of a new technique, cost of maintenance, disruption and lack of
budget(Shrivastava and Shrivastava, 2017).
The force field analysis for the given an example gives the following suggestions:

 Train the staff in a particular technology to eliminate the fear of technology. (reduce the fear
by 2)
 Staff should be aware and show that new equipment will bring new interest and variety in
work (New force in favour, +4)
 Wages can be raised to encourage new productivity (loss of overtime -2, cost +1)
 Environment-friendly machines can be installed to reduce the environmental impact (Impact,
-1)
These changes on the basis of force field analysis swing the balance to 8:13 from 11:10 in favour
of a change plan.