Comparative Analysis of Organizational Change Management Strategies

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This report delves into the critical aspects of change management within organizations, using Tesco and Asda as comparative case studies. It begins with an introduction highlighting the importance of understanding and leading change in response to business challenges. The main body compares the two organizations' strategies and operations, examining their responses to change, including marketing strategies, HRM practices, and organizational culture. The report then analyzes internal and external drivers impacting change, such as financial management, political factors, environmental concerns, social trends, technological advancements, legal frameworks, and economic conditions. It explores the steps Tesco should take to mitigate the impact of change, emphasizing the role of managers, team building, communication, and training. Furthermore, the report identifies barriers to change, including fear of the unknown, limited understanding, negative attitudes, ineffective leadership, and broken communication, offering ways to overcome these obstacles. Finally, it examines leadership approaches like path-goal theory and system approaches to facilitate successful change management. The report concludes by summarizing key findings and emphasizing the importance of proactive change management for organizational success.
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UNDERSTANDING AND
LEADING CHANGE
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Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
1 Comparison of different organisation in context of change in strategy and operation in an
organisation.......................................................................................................................................3
3. Steps to reduce the impact of change ...........................................................................................5
5. Leadership approaches..................................................................................................................7
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9
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INTRODUCTION
Understanding and leading change in the business is very important as all the leaders
of the business are facing the issues of usual challenges that is being occurred in the business
that includes transforming the cultures, creation of smooth process and shorter the cycle of
sale. Alexia has hired us as the consultant so it can analysis the change occurs in the
organisation and their reasons. This report compares the different organisation based on
strategies adn operatons of Tesco and Asda and their impact of change in the organisation
strategy.
MAIN BODY
Comparison of different organisation in context of change in strategy and operation in an
organisation
Organizations Strategies Operations
TESCO Company are using different
types of marketing strategies,
they are using social media
platfrom.
HRM is the main operation of
company, they are focusing
on this function which is
quite beneficial as business
growth. Human resource
management of organization
using different types of HRM
software program that help to
manged overall daily
activities.
ASDA ASDA is using billboard
strategy for marketing their
products or services.
Company mainly focuses on
increasing their financial
budgets define as operation of
ASDA.
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Comparison between the two organisation in context of impact of change in the
strategy of organisation and its operations are there:
Basis of comparison Asda Tesco
Scale As Asda is second largest
deals in the retail market,
clothing and merchandise
having the market share
18.5%in UK in 2010.
As Tesco is the largest
retailer chain in the UK
having the market share of
31.5% in 2010.
Strategy Asda adopt billboard
strategy for marketing goods
in marketplace that impact
on its business the most nad
helps to gain possible
outcomes. Sudden changes
on strategies make negative
impact on business
operational efficiency and
financial budgets.
Tesco has adopted the
strategy of ADKAR that is
Awareness
Desire
Knowledge
Action
Reinforcement
Organisational culture Asda following fexxible
organizational culture which
impact on their business.
Tesco is having large
number of employees and
they are adopting the clan
culture as this culture
encourages the collaboration
in the team. As members
were share the common
goals and work as the family
so that they can work with
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more productivity and
effectively.
Internal and External drivers in the change effect leadership, team and individual behaviour
within the organisation.
There are internal and external drivers that affects the change that are
Internal Environment:
Management of finance
It is the main and foremost factor of the business as it is very common the no business
can run without money (van der Voet, Kuipers, and Groeneveld, 2015). It is very important
for the leader to maintain the proper finance within the business so it can run smoothly and
manage the finance to run the business smoothly. Leaders of the business have to act very
wisely at the time of change management in the organisation. Employees always motivate
when they will get the good rewards and it will be possible only when the financial
management of the company is manageable and having the powerful stand at the time of
internal driving forces.
External Environment
These factors occurs outside the company and that cause the change within the
organisation and these factors are beyond the control of the company. External factors that
affects the external environment of the organisation and these are:
Political factors
Political factors directly impact the functioning of the business as they influence the
ideology of parties, government policies, decisions, tax policy etc. that will affect if there will
be any change in these policies (Alvesson and Sveningsson, 2015).
Environmental factors
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Now the people are more focused towards the environment that include the eco-
friendly behaviour of the business as the tourism, agriculture and forest sector must pay the
extra focus on these industries (Bulkeley and Newell, 2015).
Social factors
Social factors primary focus is on the consumer and their perspective as way of
lifestyle, current trends, level of education, social class affects the consumers these all were
affect when any change come in the existence (Bin Taher., Krotov and Silva, 2015).
Change in Technology
Change in technology means the new technology is being introduced and the old
become obsolete. Technological development or tecnological change is all over prcedure of
innovation, invention adn diffusuion of technology. It is very important for the company to
implement the new technology in business structure and trained the employees to become
comfortable with these techniques which help workers to work on it easily and perfectly
without any issues (de Sousa Jabbour, 2015). Technology changes make impact on overall
business procedure that might be beneficial or not for profitability adn reputation in
marketplace.
Legal factor
Legal factors are most of the time concerned with the political factor and affects the
cost of operation, handle the demand of products for example many firms require the patent
to ensure the competition so no one can copy their product (van der Voet, Kuipers, and
Groeneveld, 2015).
Economic factors
There is having an intimate relationship in between the business firm and the
economic environment. Performance of the business is always depends upon the economic
condition as inflation and deflation affects the business (van der Voet, Kuipers, and
Groeneveld, 2015).
3. Steps to reduce the impact of change
In order to minimise the impact of change:
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Tesco should make the managers as change drivers and initiators. As the managers are the
one behind bringing change to the organisation. Therefore if they are held responsible for
implementing change in the organisation in a correct way than the company will be more in a
safer side. Tesco can work on team building and they can prepare their employees ready for
change in the organisation. The company should ensure that they have right people in the
organisation. The company should create a value chain which in result helps the company as
well as the people in the organisation to deal with change. Tesco should maintain the strong
communication strategy in the organisation. The strategy should include that how the change
in the organisation will be handled. Tesco should provide proper training to the employees of
the organisation in order to teach skills and enhance their knowledge (Lozano and von
Haartman 2018).
Tesco should select the right suppliers with the changing needs. The management of
Tesco has to decide the self checkout they will began and they should decide that in which
store it would be implemented first. Tesco should prepare its employees and work culture
such that they see change as an opportunity for the organisation to expand even more. The
change manager should set a clear picture of benefits of change to the employees. Tesco
should involve its employee in decision making process it will help the company to come out
with better ideas.
Tesco should ensure to make alternative so that in case of major negative impact of
change on the organisation the company can select an alternative which will help them to
survive and minimise the effect of change.
4. Barriers to change are:
Fear of unknown: The employees want to work in their comfort zone as a result they are not
ready to accept change thus it effects the performance of the organisation and fail to deal with
the change. Limited understanding of the need for change is also one of the important factor
which act as a barrier for change. The negative attitude of employees in Tesco can also be
one factor which acts as a barrier in change. The negative motivation among the employees
which is a result of lower increment and no incentive make the workers to resist changes
(Lourida And et.al., 2017). If the leader is inefficient in motivating employees, and is enable
to make the people realise of change it will result in failure.
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Ineffective leadership : The lack of management support by the Tesco top management can
also be the one factor which resist change in organisation. The leaders act as a communicator
between the top management and the employees. If leaders are ineffective in communicating
the right message to the employees of the organisation it will result in failure to accept
change by employees.
Broken communication : Communication is an essential trait of leadership. And this trait is
very important among leaders in order to motivate employees. Even if the top management of
Tesco has the clear image of benefits of change it cannot provide advantage to the
organisation if this picture is not correctly present in front of the customers. A broken
communication between the top management and the employees can act as a barrier to
change in the organisation.
Undue complexity : The change can be complicated and lengthy process for the organisation
such as Tesco. As Tesco is a big organisation and any sudden change can affect the
performance of Tesco. Therefore the leaders of the organisation face various difficulties
while making strategies for the company.
Ways to overcome barrier :
In order to avoid negative imapct of change to the employees and company. Leaders should
plan appropriate strategies and process in the organisation to deal wiht the change. The
company can also take help of change management consultant. The leaders should give the
right information to employees such as who will be affected by change, when it will be
implemented and who will be affected as a result of change.
5. Leadership approaches
Path goal theory:
According to path goal theory, the best leadership style and behaviour is applied which best
fits in the work environment of the organisation and its employees.
Determine Environmental and employee characteristics:
According to the needs of the employees such as perceived level of ability, desire for control
etc., interprets the behaviour of leader (Carroll, 2017). For instance, if the leader provide
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more facilities and structure to employee i.e., more than their need it will result in low
motivation among employees.
Therefore the leader of Tesco must identify the needs of their employees in order to
identify that how they can motivate their employees. If the obstacle are too strong than the
leader of Tesco should help their employees to select a path and work on it.
Leader behaviour and style : There are 4 types of leadership style directive, supportive,
participative and achievement. The leader of Tesco should accept the leadership style which
best suits the organisation work culture.
First the Tesco should understand its employees and then accordingly adapt the leadership
style which best suit its employees and organisation work culture.
System approach :
According to system leadership theory the leaders should create the condition in the
organisation where people of different level work productively(Ma and Tsui, 2015). It will
help leaders of Tesco to create such an environment where all the people of the organisation
working Tesco will work efficiently and effectively. And will take right measures to deal
with change as a result it will help the company to achieve its goal and deal with the change.
( van der Voet, Kuipers, and Groeneveld, 2015) If Tesco adapts the system approach it will
help in identifying the inter – dependencies of the different parts of the organisation. It will
help the Tesco to adapt the change easily. The approach helps in identifying and focusing on
individual as well as organisational goal. It will help Tesco to focus on various parts of the
organisation which will result in causing less impact of change on the company (Importance
of the System Approach Principle, 2019).
CONCLUSION
From the above report it has been summarised about the change management in the
organisation in their internal and external drivers that affects the leader’s style of working,
team and individual behaviour within the organisation. This report also measures negative
impacts of change behaviour and also explains the ways to minimise it organisational
behaviour. This report also show the different approaches of leadership that helps in the
context of change in an organisation these approaches are system approach, path goal theory.
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This report also explains the barriers in the change management that influence the decision
making in the organisational context.
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REFERENCES
Books and Journals
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change
work in progress. Routledge.
Bin Taher, N.A., Krotov, V. and Silva, L., 2015. A framework for leading change in the UAE
public sector. International Journal of Organizational Analysis. 23(3). pp.348-363.
Bulkeley, H. and Newell, P., 2015. Governing climate change. Routledge.
Carroll, B.J., 2017. Participatory action research: Identifying perceptions of leadership style
and the use of path-goal leadership theory among child protection services social
workers (Doctoral dissertation, Capella University).
de Sousa Jabbour, A.B.L., 2015. Understanding the genesis of green supply chain
management: lessons from leading Brazilian companies. Journal of Cleaner
Production. 87. pp.385-390.
Lourida, I. And et.al., 2017. STRATEGIES, FACILITATORS AND BARRIERS TO
CHANGE: A SYSTEMATIC REVIEW OF IMPLEMENTATION RESEARCH
WITHIN DEMENTIA CARE. Alzheimer's & Dementia: The Journal of the Alzheimer's
Association. 13(7). p.P502.
Lozano, R. and von Haartman, R., 2018. Resistance to sustainability in organisations:
Analyses of the importance of sustainability barriers to change. In EurOMA 2018.
Budapest.
Ma, L. and Tsui, A.S., 2015. Traditional Chinese philosophies and contemporary
leadership. The Leadership Quarterly. 26(1). pp.13-24.
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
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Importance of the System Approach Principle. 2019. [Online] Available through <
https://smallbusiness.chron.com/importance-system-approach-principle-
81413.html>.
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