Organizational Change Management: Sainsbury's and Tesco Case Studies

Desklib provides past papers and solved assignments for students. This report analyzes change management strategies at Sainsbury's and Tesco.

Understanding and Leading Change
1 | P a g e

Contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................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
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.................................................................................................................................................9
M2: Apply appropriate theories and models to critically evaluate organisational response to change...11
D1: Draw conclusions and recommendations with valid justifications for planning effectively for
change and applying change impact analysis.........................................................................................11
Task 2........................................................................................................................................................12
P4: Explain different barriers for change and determine how they influence leadership decision-making
in a given organisational context...........................................................................................................12
M3: Use force field analysis to analyse the driving and resisting forces and show how they influence
decision-making....................................................................................................................................13
D2: Critically evaluate the use of force field analysis in the context of meeting organisational
objectives...............................................................................................................................................14
Task 3........................................................................................................................................................16
P5: Apply different leadership approaches to dealing with change in a range of organisational contexts
...............................................................................................................................................................16
M4: Evaluate the extent to which leadership approaches can deliver organisational change effectively
applying appropriate models and frameworks.......................................................................................16
D3: Critically evaluate the effectiveness of leadership approaches and models of change management
...............................................................................................................................................................16
Conclusion.................................................................................................................................................22
References.................................................................................................................................................23
2 | P a g e

Introduction
Change management is an important managerial function which the managers have to look into
in order to maintain the sustainability and continuous growth for the organization. The business
environment of each and every organization is bound to continuous changes in terms of
technology, customer demands, political factors, economic factors etc. Hence continuous
monitoring for the change and formulating strategies to tackle and manage changes is mandatory
for the managers (Hayes, 2018).
This report speaks about the new organization which is anticipating its growth and development
in 3 to 5 years. But these years or period of growth is subjected to tremendous changes in its
business environment. Through this report an analysis has been performed on the changes that
can take place in the business environment of the organizations and how the organizations
respond to these changes. The real world examples of two organizations are taken into
consideration for the purpose of analysis. The impact of the potential drivers of change with
respect to these organizations has been discussed. Some of the measures taken to reduce the
negative impact have also been highlighted. This report also discuss about the barriers of the
change and its influence on the leadership decision making process. A presentation is also
prepared which discuss about the approaches to leadership to change initiative.
3 | P a g e

Task 1
P1: Compare different organisational examples where there has been an impact of change
on an organisation’s strategy and operations.
M1: Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected.
For operating successfully in the business environment the organizations should keep on
changing their strategies and operations in order to achieve competitive advantage. These
changes can be technological advancement, changes in the competition, changes in the customer
demands etc. The impact of the change can certainly influence the strategy and the operations of
the organizations in the real world (Cameron and Green, 2015).
In the business environment there are internal as well as the external driving forces which
contributes to the changes in the strategies and operations of the organization. Two organizations
are taken into consideration here in order to compare the impact of change on its strategy and
operations.
Source: Drivers of change, change drivers
4 | P a g e

Sainsbury
Sainsbury is a leading supermarket chain operating in UK. The impact of the change in the
operations and strategies of Sainsbury has been discussed here.
Internal Driving force of change
 People Issues: This change driver indicates the changes which becomes mandatory due
to the issues related to the human resources. The organization Sainsbury introduced their
talent management strategy in their organizational culture in order to reduce the high
turnover behaviour of its employees. The people issues of Sainsbury like the resistance to
change or get adapted to the new technology has been responded through the introducing
changes in its operations like the introduction of the training and development,
empowering employees etc.
 New Products or Services: Innovation is another internal factor which can act as a
driving change for the operations as well as the strategies of the Sainsbury. For example
the introduction of the pharmaceutical services together with the retailing services of
Sainsbury has impacted changes. It has to make changes in its strategies like the financial
management, setting up priorities, etc. When considering its operations it focussed on
maintaining better customer relations so that the new product introduction doesn’t make
its less responsive to the customers of the existing retailing services (Hornstein, 2015).
 Process Improvements: As a part of the Sainsbury process improvement it has merged
with ASDA. This has acted as a change driver in its operations and in its strategies. The
Sainsbury responded to it through introducing new policies and procedures, setting
SMART objectives etc. so that the employees could clearly understand what is being
going around. It has introduced the employee engagement programs, better training and
development so as to enhance the potential and to reach its objectives.
External Driving force of change
 Political: The political change Brexit has impacted the operations and strategies of
Sainsbury in UK. This changed its strategic decision in selecting the local suppliers as
farmers and other small scale industries which helped them to maintain the profit margin.
They responded to this political change through implementing customer retention and
engagement programs.
5 | P a g e

 Legislative: The Sainsbury responds to the changes in the rules and regulations through
continuous monitoring, ensuring the coping with the legislative changes, providing
training and development related to it to the employees.
 Market conditions: The changing market conditions are responded through conducting
market research. The management of Sainsbury has proper planning which enables it to
forecast the changing market conditions (Mak and Chang, 2019).
 Customer Demands: Sainsbury responds to the changing customer demands through
introducing the product lines as per the customer preferences, being more responsive to
the customers etc.
 Opportunities: The opportunities introduce changes. Sainsbury responds to this change
through studying the worth of the opportunity.
Tesco
Tesco is a competitor of Sainsbury which is operating in UK and all around the world. This
impact of the change in the operations and strategies of Tesco has been discussed here.
Internal Driving force change
 People Issues: Tesco being an international organization diversity of the work force is
the major people issue which can be highlighted. It has responded to this change through
standardizing its code of conduct or the organizational culture in all its branches
throughout the world. It also responded it through monitoring the day to day operations
of the employees closely, formulating human resources policies etc to eliminate people
issues.
 New Products or Services: The organization being innovative provides importance to
the new innovations. This research and development implements changes in the
operations and the strategies of the Tesco. For example the introduction of the telecom
services has introduced changes like merging with the telecom organizations like
Vodafone. It also reflected some changes in its strategies like the restructuring of the
organization (Coccia, 2015).
 Process Improvements: The organization Tesco concentrates in the process
improvement for its sustainability of the competitive advantage which results in the
6 | P a g e

changes in its strategies like the employee engagement, training and development,
restructuring policies and procedures etc.
External Driving force of change
 Political: The political change Brexit has impacted its strategic decision in selecting the
new market. It responded to this change through merging it with organizations in the
foreign markets.
 Legislative: Tesco relies of the legislative service providers on the market in which it is
operating. This enables it to makes its operations and strategies compliable to the
legislative changes which is occurring continuously in the market.
 Market conditions: Like Sainsbury, the Tesco also relies on conducting the market
research for identifying the changes in the market conditions. It responds to it through
setting smart objectives as per the changes so that competitive advantage can be
achieved.
 Customer Demands: This change has been responded through determining what exactly
is the need of the customers through conducting proper research
 Tesco develops customer oriented strategies which enables them to satisfy the customer
demands effectively (Cameron and Green, 2015).
 Opportunities: Tesco responds to its opportunities through determining its value,
educating its value to the employees and then finally implementing change.
P2: Evaluate the ways in which internal and external drivers of change affect leadership,
team and individual behaviours within an organisation
Internal Drivers of Change
Leadership: The people issues can impact the leadership in delaying the decision making process
for example internal conflicts like ego. The new products and services can influence the
leadership in changing the existing planning, coordination approaches of leaders. The process
enhancement can make the leader more result oriented then people oriented.
Team: The people issues can impact the coordination in a team and hence can impact the team
dynamics, performance etc. A new product or service can generate confusion, ambiguity etc in
7 | P a g e

the team members. The process enhancement can increase pressure and responsibility of the
team (Král. and Králová, 2016).
Individual behaviour: The people issue can reduce the motivation and the confidence level of the
individual. This dissatisfaction can lead to poor performance. The new product and services can
change the individual positively or negatively. It can either motivate him or it can put him under
pressure due to lack of knowledge. The process improvement can shape the individual behaviour
to achieve goals better.
External Drivers of change
Leadership: The political change like Brexit imposes pressure of the leadership and makes them
more bureaucratic than participative as they have to focus more of competitive advantage and
profit margin. The external drivers like the customer demand makes the leadership to develop
customer oriented strategies. It narrows the focus of the leaders determine the changing market
conditions for being competitive.
Team: The external forces like the changing customer demands make them to coordinate the
team work to achieve customer satisfaction. This enhances coordination in the team. The
legislative changes have to be communicated and shared within the team in order to avoid legal
implication. Hence these external forces enhance information and resource sharing (Lozano,
Nummert and Ceulemans, 2016).
Individual behaviour: The external forces shape the individual behaviour to achieve the
organizational goal as a whole. It drives the individual to cope with the changes and reach the
individual objectives effectively.
Pestle analysis
Leadership Team Individuals
Political More bureaucratic Confined to rules and
regulations
Confined to rules and
regulations
Economical More result oriented More pressure De-motivation
Social More customer
oriented
Increase coordination Increase coordination
Technological More training and More training and More training and
8 | P a g e

development development development
Legal More bureaucratic More bureaucratic More bureaucratic
Environmental Ethical Ethical Ethical
Swot analysis
Strength
 Provides more opportunities.
 Shape the organizations towards
success
Weakness
 Loss of cost, time and human resources
in change management
Opportunities
 Competitive advantage
 Change can create success
Threat
 Ambiguity
 Human resource management
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.
The efficiency of the management relies on minimizing the negative impacts of the changes on
the organizational behaviour. The change management is an effective method which can be
implemented for minimizing the negative impacts.
The change management can be considered as the process through which the organization can
implement changes effectively. The change management is required for an organization as it can
make the employees understand, commit and accept changes. The change management helps the
management to communicate, plan, and implement changes within the organization effectively.
The change management enhances cooperation, collaboration and communication. The change
management enables the managers to systematically plan, communication, operate and finally
implement changes. Hence it is considered as an effective tool in minimizing the negative
impacts of change in an organization (Doppelt, 2017).
 Planned change management: This is the change management strategy taken by the
management when they realize there is a need for the change for the sustainability of the
organization. The planned change management is done through organizing a proactive
plan, implementing the plan and finally reorganizing as per the situations. For example
9 | P a g e

the Sainsbury’s merging of ASDA is a planned change management forecasting the
negative implications of the political change in UK which is “Brexit”.
 Unplanned change Management: This change management occurs when there is a
sudden change in the operations of the organizations like the relieving of the CEO,
economic depression etc. The unplanned change management generates ambiguity and
the outcome may be negative due to lack of planning and preparation. For example
Sainsbury’s supplier relationship with Agro was an unplanned strategy adopted by the
organization to reduce the cost of production. It impacted the reputation of Sainsbury as
Agro has a bad reputation in the market.
The negative impacts associated with the unplanned change management or the impact of the
change can be eliminated through implementing Lewin’s change management model. This
model includes three steps
 Unfreeze
 Make changes
 Refreeze
Source: Lucidchart, lewin’s model or change management.
10 | P a g e

M2: Apply appropriate theories and models to critically evaluate organisational response
to change.
When critically analysing the theories and models of the organizational response to change, the
following outcome can be determined.
 Systems theory: According to this theory the organization here is considered as an open
system which is influenced and impacted by the external and the internal factors of the
business environment. The Sainsbury and Tesco are subjected to these internal and
external forces of changes. According to the systems theory both organizations pay
attention to the external as well as the internal changes and align its operations and
strategies to cope with the changes.
 Continuous Improvement model: The implementation of the continuous improvement
model to the change management, the management can bring a long term approach to
improve the process, product and services. For example the customer relationship
strategy adopted by Sainsbury is a continuous improvement model of change
management. Through this they gain feedback and response of the customers and brings
changes accordingly in their process (Chang, 2016).
D1: Draw conclusions and recommendations with valid justifications for planning
effectively for change and applying change impact analysis
When evaluating the two organizations Sainsbury and Tesco in relation to the understanding and
leading change it can be determined that both organization adopts appropriate strategies to
manage change. The response of these organizations towards the changes in its business
environment has been discussed. The internal and external driver of changes has been discussed.
Pestle analysis and SWOT analysis has been performed in order evaluate the impact of the
driving forces of change.
It can be recommended the organization can adopt the Lewin’s change management model for
getting adapting to the change. It Unfreeze, change, refreeze strategy can entirely change the
strategy and operations of the organization and can operate according to the new change.
11 | P a g e

Task 2
P4: Explain different barriers for change and determine how they influence leadership
decision-making in a given organisational context.
When there is a change, the barriers to the change also exist. Implementing effective change is a
complex task. For this understanding the barriers of the change and how it can influence the
leadership decision making has to be analysed. An organization Tesco can be taken into
consideration for the purpose of analysis. Tesco is the leading supermarket based on UK. This
organization is an international organization and is open to the external and the internal changes
which are happening in its business environment.
The barriers of the change in relation to the technological changes in the business environment of
Tesco have been discussed below. The impacts of these barriers in the decision making process
of leadership has also been discussed.
 Employee resistance to change: This is the major barrier which almost all organizations
face during the change management. Organization Tesco being and international
organization and operates over last few decades, it possess senior employees who prefer
the traditional operational systems. These employees resist to adopt the modern
technologies like the PayPal, virtual communications etc which can enhance the
competitive of the organization. This attitude or resistance of the employees to getting
adapting to the changes can impact the leader’s decision making in leading the
organization towards sustainability (Lozano and Haartman, 2018).
 Ineffective communication: The broken communication about the technological changes
from the top management is another barrier of the change management. IF the
communication about the change is not clear then the leaders cannot make decisions to
implement and coordinate changes effectively. Ineffective communication can generate
ambiguity as well as make the leadership ineffective.
 Lack of resources for training and development: For implementing changes
effectively resources like the information, financial, human resources etc are needed.
New technology has to be educated to the employees in order to implement it effectively.
Hence insufficient supply of these resources can impact the leadership decision making
process.
12 | P a g e