Impact of Change on Organisational Behaviour: Sainsbury's and Tesco

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

Understanding and Leading Changes
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: 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....................................................................................8
P3: Evaluate measures that can be taken to minimise negative impacts of change on organisational
behaviour.........................................................................................................................................10
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...................................................................................12
Task 2..................................................................................................................................................13
P4: Explain different barriers for change and determine how they influence leadership decision-
making in a given organisational context.........................................................................................13
M3: Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making...............................................................................................................14
D2: Critically evaluate the use of force field analysis in the context of meeting organisational
objectives.........................................................................................................................................15
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

Introduction
In order to improve the performance and offer best of their levels, the organisations require
making some changes in their way of working. This whole process is defined as change
management. Change management is basically the a form of discipline that works to guide
the preparation as well as equipping and supporting the individuals to successfully adopt the
change, hence, leading to successful outcomes for the organisation. The managers of an
organisation need to look after these aspects in order to maintain the consistent growth of the
organisation (Yang, 2015). Under the guidance of the managers, it is the employees who are
required to embrace and make the essential changes to deliver the expected results. There is
always some change required in technology, the likes and dislikes of customer or client,
political factors, social factors, economic factors etc. So ultimately, it becomes mandatory for
the managers to monitor and analyse the change and keep making strategies to manage the
changes.
The report below reveals about a new organisation expecting its growth and successful
development within 3-5 consecutive years. But, of course, being the initial settlement period,
it demands huge changes in the business, technical, cultural environment etc. In this whole
report, the changes that can take place in an organisational environment and how the
organisation responds to the change will be elaborated. Here, keeping all the aspects in mind,
every possible concept has been explained along with how to reduce the negative impacts of
the change on an organisation. Apart from all this, a presentation explaining the role of
leadership in initiating change has also been prepared here.

Task 1
P1: Compare different organisational examples where there has been an impact of
change on an organisation’s strategy and operations.
M1: The different drivers for change in each of the given examples and the types of
organisational change they have affected.
Competition is really high in every industry and taking advantage out of it is the target of the
every organisation. Hence, the organisation is required to make strategies and embrace
changes and work consistently on its operating culture in order to cultivate desired results
successfully and beat the competition of the industry. The changes may include advancement
in technology, competitive changes, likes and dislikes of the customers etc. This change may
have strong impact on the working culture, strategies and operations of an organisation
practically (Alexander and Hardy, 2014).
Whenever there is a conversation about a business, certain aspects and factors are discussed
that lead to influence the business. These can be both internal as well as external. Both the
internal and external forces somehow influence the changes made in the strategies and
operating environment of an organisation. To explain the various ways a change can impact
the functionality of an organisation, we have taken two organisations as examples here. These
organisations are Sainsbury’s and TESCO.
Figure 1: Organisational Change Drivers (Alexander and Hardy, 2014)

Sainsbury
Sainsbury is a well renowned giant supermarket chain in UK which was initially started with
some dairy products and reached this level because of the quality of its products. Here below,
we have discussed about the changes that impact the functionality of Sainsbury:
Internal Driving Factors
 Issues related to People – The changes that become mandatory due to the issues that
are related to the human resources of an organisation are revealed in this internal
driving force. Sainsbury has introduced training and development sessions, employee
empowerment sessions etc. to help its people embrace change and follow it to produce
desired results. It leads to the higher desired results and higher turnover of the
organisation. The training and development sessions assist the employees of
Sainsbury adapt the new changes and technology introduced in the organisation.
 New Products or Services – Another form of change that can influence the overall
function and working concept of Sainsbury is innovation and creation. Whenever
some new product or idea will be introduced or launched, it will again require a new
mind to get the best results out of it. The major example is the introduction of
pharmaceutical services in a supermarket like Sainsbury that has always been dealing
in general retailing sector only (Cummings et al., 2016). So, here was the time when
Sainsbury required being more dedicated towards making and maintaining customer
relations as the introduction of new services must not impact the responsiveness of the
previous customers for the previous products.
 Improvement in the Processes – Process improvement is very mandatory, hence, in
this whole way, Sainsbury has tied up with ASDA. By this internal driving force, the
operations and strategies of Sainsbury have also got strongly impacted. Sainsbury has,
after merging with ASDA, introduced new criteria, strategies and policies so as to
follow the rules and regulations of ASDA. This is helpful for the employees to
understand whatever is running around very easily. Moreover, Sainsbury has already
introduced the training and development programs, employee engagement programs,
etc. so as to help the employees understand their potential and accomplish company
goals.

External Driving Factors
 Political Factors – The operating process of Sainsbury, UK has been greatly
influenced and impacted by a political change Brexit. However, it was a profitable
change because it allowed Sainsbury to make some strategies and select the local
suppliers like farmers and small scale industries to work for them. This way Sainsbury
has successfully maintained its profit margin. What they exactly did in response to
this political change was to implement the customer engagement as well as customer
retention programs.
 Legislative Factors – Of course, the rules and regulations of any country is not in
hands of any individual organisation or person; it is the decision of the government
and courts (Carlos et al., 2017). Sainsbury management keeps an eye on the rules and
regulations of the country and immediately work to change in their work procedure
and strategies so as to make these rules and regulations implemented as soon as
possible. For this, it provides the required training to its employees as well.
 The Situation of the Market – The marketing situations keep on changing on a
consistent basis. Sainsbury has people for conducting market research so that the
changes in the market can be responded properly. Sainsbury management has already
prepared the perfect planning that allows it forecast whatever change occurs in the
market.
 Demands of Customers – The organisations are based on customers’ needs and
demands and no organisation can lead the market without understanding and
satisfying customer demands. Sainsbury introduces new products in no long time
keeping the changing demands of the customers in mind and maintaining good
customer relations help it get accomplish all the goals perfectly.
 New Opportunities – Whenever there is a new opportunity to boost the services, it
demands some change (slight or massive). Sainsbury people go through the whole
concept about the new opportunity and make changes according to that.
TESCO
TESCO is again a leading supermarket and a great competitor of Sainsbury in UK and all
around the world. It was initially a grocery retailer, but expanded itself in different zones in
years. Given below are the impacts of internal and external driving forces on the working of
TESCO:

Internal Driving Factors
 Issues related to People – TESCO is an international organisation that has expanded
itself in number of countries. Hence, it is already understood that it has diversity of
people working in the different countries. It is a major issue in front of TESCO. So,
the organisation introduced the same code of conduct and working culture in all the
branches across the countries, which was the best possible way to solve this matter.
The management at TESCO monitors the regular work performances of the
employees so as to ensure that the policies and culture is being followed strictly
(Coghlan et al., 2016). There are many policies related to human resources formulated
in order to eliminate the people issues and clashes as well.
 New Products or Services – TESCO management values the new ideas and
innovation in any field, say it technology or sales or any other. Proper research and
development is carried out so the new strategies required while introducing the new
product or services can be implemented and followed accordingly. The live example
was the introduction of telecom services to the customers. It required merging the
organisation with Vodafone services.
 Improvement in Processes – TESCO is determined to keep an eye on the process
improvement so it can beat the competition and take advantage out of it. Tough it
requires the new strategies to be implemented and certain development and training
sessions for the employees so they don’t face any trouble in adapting the new
advancements in the organisation.
External Driving Factors
 Political Factors – TESCO was influenced by the new change BREXIT in the
political scenario. But, after analysing all the concerns, the organisation responded to
it by merging itself with the international markets.
 Legislative Factors – The legislative changes influence the working of TESCO
vastly as it greatly relies on these factors. Well, the legislative changes enable TESCO
to cross-check its strategies and operating features again and again and make required
positive changes to grow faster consistently.
 The Situations of the Market – Identifying the changing situations of the market is
very mandatory to know the next strategy an organisation should go for. How TESCO

responds to the changing market situations is by setting smart goals that help in
leading the market and achieving advantage from competitive market.
 Demands of Customers – The customer requirements are monitored by the
management so their needs and demands can be taken care of. TESCO takes care of
all these aspects so the customers can be provided with the satisfactory results.
 New Opportunities – TESCO responds to the new opportunities it sees by go
through its value, future profits and losses etc. thoroughly and guiding the same to its
employees as well. Ultimately, the required change is implemented and the goals are
accomplished.
P2: Evaluate the ways in which internal and external drivers of change affect
leadership, team and individual behaviours within an organisation
Internal Change Drivers
 Leadership – The internal factors like ego, lack of mutual understanding, conflicts
and clashes can lead to delayed decision making by the leaders, hence, impacting
leadership. Leadership can be impacted by the new introduced products and services
as well by changing the previous plan and further functions of the leaders as well.
 Team – The team performance and dynamics can be drastically impacted by the
people issues. This leads to lack of team spirit as well as team coordination, hence,
influencing the overall performance of the organisation.
 Individual Behaviour – Not only the team, but the individuals are also impacted by
the internal change drivers, as the employees may lack confidence and motivation in
him which may impact his performance too (Eliophotou, 2018). It can hence, lead to
the poor introduction or even production of the new products or services. To solve
this issue, the organisation works on improving its processes so that the employees
may feel confident and perform their level best.
External Change Drivers
 Leadership – Due to certain political factors, the leaders may become bureaucratic
and not participative or inspiring towards the team. This is because the political
factors pressurise them and force to work in order to achieve the advantage from the
competition as well as keep the profit margin high. One such example related to this is
BREXIT.

 Team – The changing demands of the customer make it quite difficult for an
individual to analyse the whole scenario and perform the best, hence, the whole team
is required to work together with coordination and drive the desired results.
 Individual Behaviour – The individual behaviour also gets into shape due to certain
external factors. This leads to improved or worse performance of the individual and
hence, the team. The external factors are responsible for helping the individual
employees adapt the changes and perform accordingly (Manchester et al., 2015).
PEST Analysis
Leadership Team Individual Behaviour
Political Factors Leaders become
bureaucratic
Following rules and
regulations
Following rules and
regulations
Economic Factors Result Oriented
Leadership
Increased Pressure Demotivation in
employees
Social Factors Customer Demands
Oriented Leadership
Increased
Coordination
Increased Coordination
Technological
Factors
Training and
Development
sessions for
employees
Training and
Development
sessions for
employees
Training and
Development sessions
for employees
Legal Factors Leaders become
bureaucratic
Leaders become
bureaucratic
Leaders become
bureaucratic
Environmental
Factors
Focus of ethics and
culture while
working
Focus of ethics and
culture while
working
Focus of ethics and
culture while working
Table 1: PEST Analysis
SWOT Analysis
Strength Weakness

 New Opportunities are provided.
 Enhances the organisational chances
for success.
 The occurrence of losses of time, cost
as well as human resources in the
change management.
Opportunities Threat
 Advantage out of Competition.
 Making required changes may lead to
successful achievements.
 Not understanding the exact customer
demands.
 People issues in the organisation.
Table 2: SWOT Analysis
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.
The major motto of any organisation is to reduce the negative impacts of any change in the
internal or external factors. The management of any organisation is responsible for keeping
an eye on that. Here, the method that can be implemented in order to minimise the negative
impacts is the change management method.
Change management is basically the process that enables the employees of an organisation to
adapt and follow the changes effectively. This process is responsible for allowing the
management to efficiently communicate, plan as well as get the change implemented within
the organisation (McCleskey, 2017).
Planned Change Management – The management of an organisation is responsible for
checking the functionality of all departments time to time. This assists them make some
changes in the strategies or operating environment whenever it is required. Some consistent
changes are required to maintain the sustainability of the organisation in long run. A great
example of planned change management is the merge of Sainsbury with ASDA.
Unplanned Change Management – It is also a concept of change management where the
change occurs on a sudden basis. It may include the different reasons like immediate
relieving of the CEO, some economic depression or an urgent client demand etc. This form of
change management leads to inexactness in every aspect and may result in negative impacts
on the organisation’s performance due to no or lack of planning as well as preparation. In
case of Sainsbury, the unplanned decision was the tie up with Agro suppliers.

The three steps of Lewin’s Model allow an organisation to reduce the negative impacts of
unplanned change management. These are – Unfreeze, Make Changes and Refreeze.
Figure 2: Lewin Model of Change Management (McCleskey, 2017)
M2: Apply appropriate theories and models to critically evaluate organisational
response to change.
Whenever there is a change, there are always certain ways an organisation responds to that.
There are certain outcomes that can be realised while going through the theories and models
related to the response of an organisation towards change thoroughly. They are:
 Systems Theory – This theory indicates an organisation as an open system that is
easily influenced and impacted by numerous internal and external change drivers.
Here, we have seen that both Sainsbury and TESCO are prone to these and both of
them pay strict attention to both internal and external factors so that they can
immediately response to the changes in an effective and productive manner
(Wojciechowski et al., 2016).
 Continuous Improvement Model – By implementing the continuous improvement
model, the management creates an innovative situation of long term approach to the
improvement in products, process and services. The live example for this is the
customer relationship strategy adopted by Sainsbury. It helps them get regular
feedback from the customer end and they keep on making changes accordingly.
D1: Draw conclusions and recommendations with valid justifications for planning
effectively for change and applying change impact analysis
After comparing both Sainsbury and TESCO on the ground of Understanding and Leading
Change, it is clear that both the organisations are eager to accept and adopt changes. We have
already discussed the responses of both the organisations towards change. Moreover, both the

PEST and SWOT analysis has been done very clearly that indicate the impacts of driving
forces for change.
Lewin’s Model can be very helpful in adapting the change without any trouble. This is
because it freezes, changes and refreezes the strategy that can change the strategies and
operating performances of the organisation entirely.