Understanding and Leading Change: M&S and H&M Report Analysis

This report provides a comprehensive analysis of leading change within organizations, focusing on the impact of change on organizational strategy, leadership, and employee behavior. The report utilizes Marks & Spencer (M&S) and H&M as case studies to compare how these retail giants have adapted their structures, strategies, and operations in response to both internal and external drivers of change. It explores the influence of political, economic, social, and technological factors (PEST analysis) on leadership, team dynamics, and individual behaviors. Furthermore, the report evaluates measures to minimize negative impacts of change, such as the Plan-Do-Check-Act (PDCA) model. It also examines different barriers to change and how they affect leadership decision-making, including the application of force field analysis. Finally, the report applies various leadership approaches to dealing with change in different organizational contexts, providing a well-rounded understanding of change management.

Understanding and
Leading Change
Table of Contents

INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations...............................................................................................3
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected..........................................................................................5
TASK 2....................................................................................................................................................5
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation....................................................................................5
P3 Evaluate measures that can be taken to minimise negative impacts of change on organisational
behaviour...........................................................................................................................................7
M2 Apply appropriate theories and models to critically evaluate organisational response to change.
...........................................................................................................................................................8
TASK 3...............................................................................................................................................10
P4 Explain different barriers for change and determine how they influence leadership decision-
making in a given organizational context........................................................................................10
M3 Use force field analysis to analyze the driving and resisting forces and show how they influence
decision-making..............................................................................................................................12
TASK 4...............................................................................................................................................13
P5 Apply different leadership approaches to dealing with change in a range of organizational
contexts............................................................................................................................................13
Conclusion:..........................................................................................................................................15
REFERENCES................................................................................................................................15

INTRODUCTION
Leading change in a business refers to those leaders who are well skilled and
dedicated in leading employees by encouraging as well as motivating them (Hickman,
Riemer and YLEC, 2016). In other words, with leading change leaders of an organization
able to understand the risk that takes place and benefits for making needed fluctuations. This
report is based on Marks and Spencer which is a retail that deals in clothing. Along with this,
it is also a public limited company whose headquarter in Westminster, London. Respective
company was founded by Michael Marks and Thomas Spencer. This company is spreaded
worldwide such as in Hong Kong, Briggate and many other countries. This report is based on
impact of change that affected organizational strategies as well as operations between two
companies that belong to same sector. Along with this, it also explains about leadership that
gets affected with internal and external drivers of organization. In addition to this, there are
various leadership styles that were applied by leaders in order to accomplish organizational
goals in effective as well as productive manner.
TASK 1
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations.
It has been observed that in order to retain, earn profit as well as to increase market
share, company perform their business operations as well as function in effective manner
(Berman and Korsten, 2014). As per Marks and Spencer which is retail industry deals in
buying and selling of clothing across the globe. This company has a direct and indirect
impact of government of UK which affect their profitability as well as their sales. In order to
understand appropriate situation of changes that affect respective organization functions and
operations, Marks and Spencer has conducted analysis with its competitors which is H&M.
Comparison of both companies is described below:
Changes Marks and Spencer H&M
Structure The company is conducting
their functions and operations
In H&M, company is
conducting their day to day

in flat organizational
structure in which all
employees as well as
superiors are working on
same level. With this they
were to make quick decision
which saves their time and
money. But sometimes
employees get demotivated
because they were treated
same as their subordinates
(Brundrett and Duncan,
2015). This situation creates
conflicts between them. So in
order to avoid such situation
respective company has
changed their organizational
structure into hierarchical
structure where employees
will placed as per their skills
and abilities and it will avoid
conflicts in respective
organization. Along with this,
employees of company will
also be able to make effective
decision.
Strategy: In order to adopt
hierarchical organizational
structure, strategy of
respective company was to
delegate roles and
responsibilities to employees
as per their skills and
abilities. Along with this, it
activities in hierarchical
organizational structure. In
this organizational structure
company is divided into three
levels i.e. upper, middle and
lower level. Any changes in
rules and policies of
respective organization is
framed by top management.
These changes takes time to
reach to lower levels of
employees due to which it
affects their decision making.
To improve such situation
H&M has changed their
organsiational structure into
flat organizational structure
where all employees as well
their superiors at same level.
Along with this, it also
motivated employees as well
make them satisfy because
they are treated same as their
superiors. In addition to this,
it also result in quick
decision making and any
changes in policies of
company also reach to their
staff quickly.
Strategy: The major strategy
to adopt flat organizational
structure is to enhance
productivity as well as
profitability of respective

will also reduce conflicts in
company which will result in
increased effectiveness.
Operations:By adopting
such changes in respective
organization, it will lead in
effective decision making
and will also maintain
positive environment in
company. Along with this,
superior of organization will
be able to train and develop
their subordinates effectively.
company (Sibony-
Benyamini, and Gil-Henn,
2012). Along with this, in flat
organizational structure
employee will be motivated
as well satisfied due to which
they will contribute more
efforts to attain goals and
objectives of organization.
Operation: In order to apply
such changes in organization,
staff will be able to save their
time in decision making due
to which they will be able to
concentrate on their long
term goals.
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected.
The organization functions and operations are affected by internal and external drivers
that occur in environment (Coad and Pritchard, 2017). Internal drivers are those changes
which occur inside the organization and are controllable whereas external drivers is a change
which occur outside organization and it directly or indirectly affect function of organization.
For example: company operating on large scale such as Marks and Spencer will have great
impact of external drivers such as political instability, change in economy, social factors and
many more. While on the other side, organization operating on small scale will jo be much
affected by external drivers as they operating in local country or small scale. Internal drivers
of change such as financial management, technology, employee morale and many more will
not have much impact on both small as well as large scale of organization. This is because
internal situation is controlled and managed by organization effectively.

TASK 2
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation
Drivers of change is define as a process in which operations and functions of an
organization gets affected by internal and external drivers (Head and et.al., 2018). It includes
plans, strategies, products and many more. The internal and external drivers of an
organization affect change in leadership, team behaviour as well as individual behaviour. The
internal and external drivers are described as follows:
Internal Driver: It is referred to driver of change in which situation occur inside an
organization and these changes are controllable as well as managed by company effectively..
There are various internal drivers which are described below:
 Capacity of Technology: In order to sustain at marketplace, it is essential for a
company to be updated about technologies are being used by their competitor’s
(Salimi, 2012). Along with this, advance technology has a great impact on leadership,
team as well as individual behaviour of an organization. In context of Marks and
Spencer, company make effective use of advance technology so that leaders of
respective can apply it in order to achieve goals effectively. Along with this, advance
technology also help individual to implement new and innovative ideas oin order to
make their task effective.
 Employee Morale: Employee satisfaction is really crucial for an organization in
order to avoid conflict as well as achievement of goals successfully. As per Marks
and Spencer, leaders of respective organisaton involve their employees in decision
making process which encourages their morale and keep them motivated. Along with
this, while sharing views and opinions staff gain confidence in them through which
they contribute more effort to achieve goals and objectives. In addition to this,
respective company is able to retain their talented as well skilled employee which
increases their effectiveness.
External Driver: It is define as those drivers which affect operations and function of a
company. External drivers of an organization is explained with the help of PEST analysis that
is described below:
 Political: Due to change in political policies, rules and many more, it affects
activities of an organization. As per Marks and Spencer, company is not able to adopt

itself quickly according to political changes due to which it affect their operation and
functions worldwide.
 Economic: Any economic changes such as interest rate, exchange rate, population
growth and many other factors their transaction as well as their
profitability(Martynovich and Lundquist, 2016). In context of Marks and Spencer,
due to economic changes, transactions of respective company gets affected globally
due to which it directly or indirectly affect their sales and profits.
 Social: Social factors have direct impact on growth and development of an
organsation. It is because organization is able to acquire their potential customer from
societies, communities and other social sectors. Due to expansion of respective
company worldwide, company has their potential customers across the globe. Along
with this, having strong customer base, Marks and Spencer is able to understand
customer needs and demand and they produce their products as well services as per
their requirement.
 Technological: To sustain in market company has to adopt advance technology so
that they can modify their strategies as well as their product to attract customers. In
regards of Marks and Spencer, company update their technologies as per changes in
environment in order to give tough competition to their competitors. In addition to
this, they also modify their strategies, goods and services so that they can retain their
existing customers as well as acquire new consumers.
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.
In order to evaluate measure that is taken to reduce negative effect on change of
organsiational behaviour, Marks and Spencer has adopted PDCA model. This model helps in
regular improvement in products and services as well as also aid in solving problems that
occur in an organisaton (Chang, 2014). This model is categorized in four approaches which is
explained below:
 Plan: In first approach of PDCA model, it is described that an organization need to
identify the problem and formulate plan accordingly in order to overcome it. In terms
of Marks and Spencer, manager of company make deep analysis of problem and
prepare plan accordingly. In order to overcome the problem, manager of respective
organsation collect the relevant data of issue in order to prepare effective solution.

Along with this, manager also formulate plan so that there can be less possibility of
occurance of issues.
 Do: The next approach of PDCA model states that, after formulation of plan the
succeeding step is to implement a solution. In respect of Marks and Spencer, company
implement effective solution so that company can overcome the problem. In addition
to this, respective company also prepare themselves while implementing solution
there will some phases where uncertainities will occur. Therefore, before executing
solution company must try solution on small scale and in a environment which Marks
and Spencer can easily control.
 Check: It is a an important approach of PDCA model as at this stage,leaaders have to
pay attention on the plan and make sure that no mistakes occur (Campbell, Lieberman
and Yashkina, 2015). As per Marks and Spencer, leaders of company analyse their
plan carefully as well as they ensure to avoid mistakes and make their improvement
effective.
 Act: The last approach of PDCA model which implies that after performing all stages
successfully, managers of an organization must take action in order to achieve goals
and objectives. In regards of Marks and Spencer, after initiating all approaches
effectively, manager and their team memebers take action to achieve objectives and
targets of respective company. Along with this, it brings positive impact in company
as well as also increases its productivity.
M2 Apply appropriate theories and models to critically evaluate organisational response to
change.
Organisational change is define as a process of chance in structure, strategies,
methods, procedure and other activities of a company (Deshler and Cornett, 2012). There are
various models and theories that critically evaluate organisational change are described
below:
McKinsey 7's Model:
This model is used by organisation in order to analyse their internal environment and
evaluate changes so that organisation performance can be improved . Along with this, it also
help a company to implement strategies in the most effective manner. This of seven elements
i.e. strategy, structure, system, skills, staff, style and shared values. Respective model is
explained below:

 Strategy: It is define as a plan which an organisation formulate to accomplish
organisational goals and objective in effective way (Douglass, 2017). In terms of
Marks and Spencer, company frame strong and effective strategy in order to
accomplish competitive advantage.
 Structure: It refers to the outlet of a company which is divided in departments and
divisions and also specify about who is responsible to whom. In context of Marks and
Spencer, company is different departments of different sector so that organization
activities can be performed effectively.
 System: It states about method and procedure that an organization perform in order to
carry their day to day activities in a proper way. In respect of Marks and Spencer,
organization has an effective system due to which their day to day function as well as
operation are conducted effectively.
 Shared Values: It refers to norms and standards that impact on the behavior of staff
of an organisation. In regards of respective company, employees must be ethical and
follow the rules and policies in a proper way which is mentioned in their company’s
guideline.
 Style: It is define as manner in which top management approach any situation, the
way they interact and many more. As per Marks and Spencer, the leaders of firm
perform their task in proper manner which enhances productivity of respective
company.
 Staff: They are those individuals who perform organizational day to day activities in
order to attain organizational goals and objectives. In context of Marks and Spencer,
company has a workforce of skilled and talented employees who contribute efforts to
achieve targets of organsation.
 Skills: It is defined as capabilities and abilities that an employee have which they use
to achieve objectives of organization (Maslin-Ostrowski and Floyd, 2012). In respect
of Marks and Spencer, company hire those employees who are well skilled and
talented. This will enahance their company's productivity as well as its effectiveness.
Kotter 8 step model:
This model provide guidance of entire procedure related to change and it is easy to
implement (Rainer, 2016). This model consist of 8 steps which is explained below:
 Creating an Urgency: In this step, Marks and Spencer, can identify threats which
may occur in future as well as can also grab opportunities which can result in firm’s
effectiveness.

 Forming Powerful Guiding Coalitions: Respective company must analyse change
in leaders or stakeholders who are involved in the process of organization.
 Developing a Vision and a Strategy: Leaders of respective company must have
vision that can bring change in organization as well as also formulate strategies that
can be easily understood by their employees.
 Communicating the Vision: In respect of Marks and Spencer, leader communicates
the change vision to employees powerfully and convincingly. Along with this, they
should also handle issue of employees effectively.
 Removing Obstacles: Respective company formulates the action in order to
overcome obstacle that has occur in firm.
 Creating Short term Wins: Marks and Spencer formulate short term strategies
because there are less chances of their failures and they are achieved quickly.
 Consolidating Gains: In this step, respective company, focus on achieving
improvements by examining employees experience.
 Anchoring Change in the Corporate Culture: In context of Marks and Spencer,
company discuss their success stories which they occur after change and also
provided them opportunities.
TASK 3
P4 Explain different barriers for change and determine how they influence leadership
decision-making in a given organizational context.
Change management is systematic approach which is basically implemented by each
business in order effectively carry out business activities within the business environment.
When an organization undertakes projects to improve their overall performance the often
require to implemented the process of change management (Petruskavich, Manikandan and
Schallers, 2013). Furthermore, there are several barriers which an organization adopts in
order to effectively adopt the change made within an organization. Furthermore, to develop a
successful strategy for organizational change it essential to know the several barriers which
may be faced during the course of business. Moreover for Marks & Spencer the company is
adopting the process of change management in order to effectively carry out its business
operation worldwide. Further this will also help the company in increasing the overall sales
volume. The main objective of implementing change management within Marks & Spencer is

to improve and maintain productive business environment. Therefore some of major barriers
which organization faces during the implementation of change are mentioned below:
 Lack of Staff Involvement: This is one of the most common barrier under the process of
change management within an organization. If the employees within an organization do
not involve themselves in the business the desired business objectives are never achieved.
Biggest mistake which a company make is failure to involve employee in the process of
change. Therefore, sufficient resources should be provided to the employees in order to
effectively involve them in the process of change. Moreover, these issues are usually
handle by leaders in the organization and they aim at involving the employees in order to
make change adopted successful. Under the case of Marks & Spencer the company
should aim the effectively involving the staff in order to carry out business activities with
efficiency.
 Broken Communication: Communication is very essential at every stage in a business
organization. It plays a very critical role in achieving the desired business objective.
However, it necessary to communication within a business at every level so that each and
every employee connected to the respective company is aware about the change
implemented (Norman, 2012). Lack of communication usually negatively impacts the
change management. Therefore, leaders within an organization should take several
measures in order to effectively communicate and implement the change within an
organization. In context to Marks & Spencer the company should effectively
communicate at every level so the change adopted becomes a success.
 Complexity within an organization: Changes adopted in big organization are
complicated and lengthy process. Due to this complexity the change implemented in an
organization usually do not attain the established business objective within the specified
time. In order to avoid complexity the company should implement several strategies.
Furthermore these adopted strategies should be simple in nature. Leaders are highly
involved in solving the issues faced within the business related to complexity or any sort
of difficulty arising in an organization. In case of Marks & Spencer the company shall
successfully aim at solving the complexity so that they are able to effectively carry out
their business activities with proper efficiency.
 Ineffective Leadership: This is one of the major barrier of change management system
implemented within business activity. This usually occurs when the leaders with a
company do not take appropriate decisions. Furthermore several issues are faced when

leaders potentially do not look at the functioning of an organization. In order to avoid this
barrier the company should hire good leaders so that they help the company in reaching
the desired goals and objectives. Moreover, ineffective leadership usually leads to
tension as well as disillusionment in the respective company and the change adopted
tends to become unsuccessful. Under the cases of Marks & Spencer the company might
have good leadership who can help the company in achieving their goals.
There are several change management model which helps in overcoming the barriers with
proper efficiency. These models are implemented within an organization so the change
adopted by a company becomes successful.
Force Field Model:
Lewin’s force field analysis of change model basically aims at identifying the
equilibrium between the several forces that drive change within an organization (Nagorny-
Koring, 2019). It also aims at determining the driving and restraining forces that potentially
effects the change in an organization. This model provides an overview of change problem
which need to be handled by an organization. In this model there are two forces namely
driving change and restraining it. Moreover, to carry out force field model with efficiency a
five step procedure is usually followed. The two main forces of this model are mentioned
below:
Driving Forces:
These forces usually push to influence a situation under particular direction. Moreover if
a customer wants a new product into the potential market, than it is a driving force for that
particular company. The main aim of driving forces is to support a stated objective or goal. )
(Raneri and Young, 2016).
They usually have positive impact on the overall performance of the respective company.
Some of the major examples of this type of force are mentioned below:
 New Technology: In order to stay ahead of company’s competitors, an organization
should regularly aim at implementing new technology which helps in enhancing the
overall productivity of a firm. These new technique adopted by companies help them
attracting new customers toward their brand which tends at increasing the revenue of the
respective company. However, Marks & Spencer should regularly aim at implementing