Organisational Change: Leadership, Strategy, and Impact Analysis

This report provides a comprehensive analysis of change management within organisations, focusing on Tesco as a primary example. It compares different organisational examples to highlight the impact of change on strategy and operations, assessing the drivers for change and their effects. The report evaluates how internal and external factors influence leadership, team dynamics, and individual behaviours, and it proposes measures to minimise negative impacts. Furthermore, it applies relevant theories and models to critically evaluate organisational responses to change, using force field analysis to understand driving and resisting forces. The report also examines different barriers to change and their influence on leadership decision-making, while exploring various leadership approaches to effectively manage change in diverse organisational contexts. The conclusion offers justified recommendations for effective change planning and impact analysis.

Understanding
and Leading
Change

Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations....................................................................................1
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected....................................................................................3
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation.......................................................................4
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour..............................................................................................................5
M2 Apply appropriate theories and models to critically evaluate organisational response to
change..........................................................................................................................................6
D1 Draw conclusions and recommendations with valid justifications for planning effectively
for change and applying change impact analysis........................................................................6
P4 Explain different barriers for change and determine how they influence leadership decision
making in a given organisational context....................................................................................7
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making...........................................................................................................8
D2 Critically evaluate the use of force field analysis in the context of meeting organisational
objectives.....................................................................................................................................8
P5 Apply different leadership approaches to dealing with change in a range of organisational
contexts........................................................................................................................................9
M4 Evaluate the extent to which leadership approaches can deliver organisational change
effectively applying appropriate models and frameworks.........................................................10
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management...............................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Change plays an important role in growth and success of an organisation. Every
organisation must adapt changes for effective functioning. Understanding and adapting change
helps the organisation to deal with difficulties. It is very difficult to analyse market trends and
circumstances in the changing business environment. There are various reasons which lead to
change in organisation structure such as change in environment, structure, culture, element and
people etc. Tesco is a British multinational supermarket (Alam and Raut-Roy,2019). The
organisation was formed in 1919 by Jack Cohen and its headquarter is located in Welwyn
Garden City, UK. The company deals in various diversified markets and products such as
Furniture, Toys, clothing, books etc. Currently the company has 4673 shops and it deals in 11
different countries. This report also include discussion on introduction to the drivers and impact
of change and its impact on organisational strategies, various theories and models has also been
analysed to adapt change in the organisational culture, negative impact of change and barriers
has also been discussed.
MAIN BODY
P1 Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations.
Organisational processes are formulating to fulfil goal of an organisation. It is very
crucial to build an effective plan to achieve organisational objectives. To maintain growth in a
dynamic and diversified market it is very important to analyse taste and preference of the
consumers and organisational strategies should be formulated accordingly. There are some
external drivers of change which impact the organisation strategy in both positive and negative
manner. To analyse these factors Tesco use PESTLE analysis. These factors have been briefly
discussed below-
 Political Factor - It refers to the factors that involves influence of government policies on
the business enterprises. These factors include Fiscal policy, Trade policy, Taxes,
National income and Government Policies etc. Tesco deals in diversified markets and
products and has also expanded its business to eleven different countries and in order to
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run its operations effectively in all the countries the company must comply with polices,
rules and regulations of each country (Sigcha and et.al., 2020).
 Economic Factor - It refers to the factors which helps in identification and determination
of countries economic environment in which the business is operated. These factors
consist of Wages, Inflation, Price, Income, Percentage of unemployment, Interest and
Exchange rate, Demand and Supply etc. Tesco must analyse economic growth rate of
different countries before expanding its business and before implementing change as
country with high economic growth rate will create more opportunities for company’s
growth.
 Social Factor- It refers to the social factors that has huge impact on the society such as
social norms, values, culture and trends which influence the business in both negative and
positive way. These factors include Buying habits, Customer preference, Family size and
Education. Tesco keep a view on these factors before implementing change in the
organisation as these factors plays a key role in granting success to the organisation.
 Technological Factor- It refers to the factors that have high influence on business
operations and Technological advancement helps in enhancing the efficiency of
production. These factors include marketing techniques, production techniques, high tech
machinery etc. Tesco has taken the advantage of technological factor and has introduced
online platform for its customer so that customer can order products and get services just
by sitting at home.
 Environmental Factor – It refers to the factors that tells about the environmental
conditions which impact the businesses. These factors consist of water, air, climate,
pollutants etc. Tesco is a company which has a global reach and in order to adapt change
and reduce the environmental concerns the company should reduce the usage of
chemicals and should also minimise the wastage.
 Legal Factor – It refers to the external factors that tells the impact of law on business
operations. These factors consist of Employment laws, Intellectual property laws, Health
and safety laws etc. In order to adapt changes in an efficient manner Tesco usually
comply with all the legal factors to avoid legal consequences.
The changes that has been adapted by Tesco in comparison of another organisation has been
highlighted below-
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Basis Tesco Marks & Spencer
Operations Tesco has implemented self-
scan checkout to minimise
shop lines and as a result it has
adapted changing market
conditions. This technology is
used by the company to fulfil
their consumer needs at shorter
time span.
Marks & Spencer has
implemented new structure for
retail management which
helped in improvement in
functioning of the organisation
by reducing duplication of
role, making clear and
effective leadership and
accountability strategies and
by focusing on customer needs
and wants(Bernon,2018).
Strategy Tesco must regularly keep a
view on marketing mix. The
company has done this by
introducing goods according to
the market trends such as
organic goods. The
organisation has started
dealing in organic and vegan
products as the consumer is
gaining knowledge and
becoming more environmental
friendly.
Marks & Spencer has planned
a strategy to reduce cost and
expenditure and for this
purpose the company has
started online retail chain for
clothes and home goods.
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected.
Some of the drivers of change in an organisation has been discussed below-
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 Technological Advancement – It is one of the major driver of change in the organisation.
Every organisation must change its strategies according to the upgraded technology to
attain competitive advantage and market success.
 Government Policy – When government impose new policies, legislation, rules and
regulation every organisation must adopt these rules to continue its operations effectively
and to maintain its growth (Veledarand et.al.,2020).
 Demand and behaviour of the consumer – Demand is considered as major reason that
bring changes in an organisation. Demand, taste and preference of the consumer change
rapidly. To survive in this changing marketing it is very important for every business to
cope up with these changing demand.
 Competitive Market Place – Every organisation must keep a track of their competitors. If
the competitors are operating their business with something new such as new product,
new technology, new model etc. and achieved success in the market then every
organisation must adapt these changes to get competitive advantage in the market.
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.
Success and failure of a business depend on internal and external factors. Business
management has no control on external factors but they must try to adapt these factors to reduce
their impact on the organisational growth and success, whereas business management and
company’s owner have some control on the internal factors. The company must efficiently
handle these internal factors as these factors also impact company's growth and future success.
Tesco is the largest retailer supermarket in UK and both internal and external factors plays a
significant role in smooth functioning of an organisation. The impact of these internal and
external drivers has been highlighted below-
 Effect on Leadership - These drivers of change has impacted the leaders of Tesco to
adapt new methodology to motivate team members which helps in enhancing the
performance of the team. Leaders in organisation like Tesco might face some opposition
from their followers and as a result the company might shift to authoritarian leadership
from democratic leadership to implement these changes.
 Effect on Team – Team behaviours of Tesco is also impacted by change drivers. For
smooth and effective functioning of a team the management of the company might
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modify strategies to perform operations in the team which also helps in modifying team
behaviour.
 Effect on Individual - Behaviour of individual at Tesco is also impacted by change
drivers. The employees and employer might feel demotivated while adapting these
changes which can negatively impact the organisation functions.
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.
Tesco might evaluate and consider several measures to minimise negative impact of
change on organisational behaviour. To evaluate these measures Tesco must consider Lewin's
change management model (Campbell, 2020). This model was given by Kurt
Lewin(Burnes,2019) It refers to the framework which is used to improve the change
management process in the organisation. This theory of management explains the process of
change in easy, effective and efficient manner. The model also emphasis on necessity for change,
its acceptance and support in the organisation. This model is comprised of three stages such as
Unfreeze, Change and Refreeze. These three stages have been described below-
 Unfreeze - It is the primary and crucial stage in Lewin model of change. This model is
used by the company to adapt changing environment for growth and success of an
organisation. Another aim of this is to prepare the stakeholders for the future change in
the organisational structure. The communication of these desired change plays a key role
in obtaining the required support of people in management of the change. Tesco must
communicate these changes to all the organisation's employees and the members which
helps them in obtaining the advance knowledge of the desired change and can also help
them to mitigate the impact of negative change in the organisation.
 Change – The stage of change is also known as Transition Stage. (Burnes,2021). After
unfreezing stage, the next stage is the stage of Change. In this stage the change has been
actually implemented to the organisation. To implement changes, the organisation must
use flexible and agile approach which helps the company to gather the worker feedback
for effective and smooth functioning of an organisation. To implement the necessity,
change the firm has to design various change which will help the company to reduce the
negative impact of change in an organisation. These desired changes should be
implemented through systemic procedure and methods. As Tesco is a huge organisation
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and in order to run smoothly the company must implement changes after clear study of
impacts of these changes.
 Refreeze - The last and final stage in Lewin's model is the stage of Refreeze. This stage
helps the employees to shift from stage of change to the stage of solidification, stability
and reinforcement. In general, it can be stated as that the employees have shifted from
phase of transition to the stage of acceptance of new changes. Tesco has adapted these
changes by incorporating it into the culture, beliefs and norms of the organisation. The
company must ensure that these new changes are adapted by the workers and they are
working comfortably or not with these changes or not. The company also provide their
employees with training, communication and support programmes to make sure that these
changes has minimal negative impact on the organisation premises.
M2 Apply appropriate theories and models to critically evaluate organisational response to
change.
The model that has been used by Tesco to evaluate response of the organisation to change
is Lewin's change management theory. As a primary step the change should be communicated to
the members in the advance so that they can differentiate between positive and negative change.
After analysing the change, the another step is to implement these desired changes in the
organisational structure. This stage states that the firm has to implement the desired change with
the help of well-defined procedure which lead in mitigation of negative impacts of change in the
organisation. Another and last stage of this process is Refreeze which focuses on acceptance of
the implemented change in the organisation.
D1 Draw conclusions and recommendations with valid justifications for planning effectively for
change and applying change impact analysis
The change management of Tesco has been planned through one of the popular model
that is Lewin's change management theory. Basically this model is a mixture of three different
steps that are Unfreeze, Change and Refreeze. This theory is very useful as it provides a
framework for efficient planning and can analyse the impact of change in an organisation. With
the help of this model the business organisation learns and understand occurrence of change in
the organisational context.
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P4 Explain different barriers for change and determine how they influence leadership decision
making in a given organisational context.
Force field analysis – This analysis is proposed by Kurt Lewin. It is defined as a basic
tool that assist the business organisation to take necessary action after the identification of root
cause. This analysis represents positive and negative of a situation for easy comparison. It also
considers desired aspects of making change. It also focuses on true reflection of roots of a
problem and its desired solution(Lauer,2021). Tesco has adapted several changes in their
organisation as it was the first supermarket who introduced the use of paper carry bag for fruits
and vegetables etc.
Different barrier for change and their influence on leadership decision has been highlighted
below -
 Inadequate Communication Strategy – Effective communication strategy is lacked by
many business organisations. Sometimes leaders believe as soon as they announce
change the employees will adapt them and will start to work accordingly. It is the false
approach to introduce new changes in an organisation. This barrier impact leadership
decision making as lack of communication lead to failure of change efforts.
 Lack of governance – To manage change at both micro and macro level companies
require skilled and experienced personnel. In order to hire these personnel’s huge
investment is required by the companies. Sometimes it becomes difficult for the
organisation to cater the required investment which lead to lack of governance in the
organisation.
 Ineffective cultural shift planning – Sometimes while introducing change the planning
staff is unaware about its impact on the individuals. The organisation exclusively focuses
on planning duties, job reporting structure and job obligation. The planning team focuses
on intuitional and emotional aspect rather than cultural aspect. This barrier forms a gap
and it also impact leadership decision making as it lead to failure of change efforts.
 Lack of Involvement – Sometimes employees shows least involvement in adaptation of
change in the organisation and sometimes the employees are unaware about the change.
It has been known in order to adapt change effectively in an organisation its employees
must adapt these changes (Song and et.al., 2020).
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M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making
Force field theory helps the organisation to create a balance between forces which are in
favour of change and are against change. It also helps the organisation in providing a framework
to implement change in the organisation.
The driving forces for change management of Tesco include -
 Technological factors – Technology plays a key role in effective functioning of an
organisation. With advanced and high tech business can flourish their business
operations. Tesco use self- checkout to improve and enhance operational efficiency.
 Customers- Customer plays an important role in growth and success of an organisation.
Tesco provide good support and after sale services to their consumer so that they can
retain their consumers.
 Human Resources - The primary objective of every organisation is to enhance the skills
of its employees so that the efficiency of the employees can be increased and the
employees work more effectively.
The resisting force in change management include -
 Ineffective planning – It plays a key role in change integration is a resistant force that
has an influence on organisation change management and implementation.
 Absence of Communication strategy – The communication strategy followed by Tesco is
not effective. The leaders and senior managers believe that the employees adapt change
as soon as it is announced. This is not the suitable way to implement change in the
organisation.
D2 Critically evaluate the use of force field analysis in the context of meeting organisational
objectives.
The force field analysis plays an important role in meeting organisational objectives. It is
a tool which helps in evaluation of proposed change and also helps in identifying that the change
is practical or not. This analysis assists the organisations to think in favour or against of any
change or decision. The result of this analysis also aids the organisation in identifying reliable
measures and solutions to eliminate these obstacles and effectively work on achieving change
management goal. It also helps in understanding the forces that reduce undesirable behaviour and
drive employee actions.
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P5 Apply different leadership approaches to dealing with change in a range of organisational
contexts
Some leadership approaches to deal with change in retail organisation like Tesco has
been highlighted below -
 Situational Leadership Approach – This approach of leadership states that no ideal
approach is formed to lead people. It states that the leadership style used by the leader
depend on the behaviour of the followers. This approach teaches leader how and where to
showcase the most successful leadership style(Vidyakala,2020). This approach also states
that when behaviour of the leader matches with the skill, confidence and willingness of
the followers, it can extract the maximum potential output from the follower. Tesco can
follow this leadership approach to maintain its organisational culture and belief and in
order to develop and assist more effective leadership to manage change.
 Democratic Leadership Approach - This approach is also known as Participative
approach as in this approach everyone is given a freedom to participate in decision
making and sharing their ideas and views on every situation. In this approach leaders
focuses on group equality (Crosby, 2021). This approach helps the leader in building
good relation with their subordinates and also helps in developing sense of belongingness
among the employees. Tesco follows this leadership approach as in this style employees
feel more comfortable and friendly in the organisational environment as their decisions
are being listened and valued. It also boosts their morale and helps in enhancement of
their efficiency which helps the company to achieve its organisational objectives.
 Transformational Leadership Approach – It refers to the leadership style that leads to an
effective change for social systems as well as for people. The main goal of this approach
is to convert the followers into the leaders (Collins and et.al.,2020). This leadership
encourage group members to look beyond self-interests and self-actualisation. In this
approach the leader’s moral growth of the follower is promoted with same values, culture
and beliefs. This approach of leadership helps Tesco in encouraging employees to follow
positive change and effectively manage change in the business organisation.
 Behavioural Leadership Approach – It refers to the theory that assess the leader on the
basis of their behaviour. The focus of this theory is on how surrounding of an individual
makes him a leader. This theory state that organisational success depends on the
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behaviour of the leader and their work ethics. As per this theory it can be stated that
successful leaders are built through learned behaviour and are not born successful. This
approach helped Tesco in development of efficient leaders.
M4 Evaluate the extent to which leadership approaches can deliver organisational change
effectively applying appropriate models and frameworks.
In order improve competitive power and reduce change resistance Tesco implemented
self-checkout system (Odiaga and et.al.,2021). To implement these new changes, the company,
choose Kotter’s change model as the initiative of change should be progressively implemented
over a short span of time. This model majorly give emphasis on building and preparing
acceptability for change rather than actual change process. It also focuses on the involvement of
the employees in acceptability of the change and overall organisational progress (Jabri and Jabri,
2022).
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management.
Several leadership approaches such as Situational, Democratic and Transformational
approach has been followed in order to deal with change in the huge organisation like Tesco. As
these leadership approaches helps the company in achievement of desired organisational goal
and impact of change on it. Kotter change model has also been discussed to identify the
measurement of desired change and its impact on people of the organisation and on customers.
CONCLUSION
This report include discussion on change management and leading change. It plays an
integral role in organisational growth and success. A number of topics has been investigated in
this study and it states the impact of change on organisational operations and strategies. It also
address influence of drivers of change on the organisational behaviour and it also states that how
leadership decision making is impacted by these changes. It also states effective management of
change by applying different leadership styles. The example of Tesco and Marks & Spencer has
been used in order to evaluate the impact of change on organisational functions and strategies.
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REFERENCES
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organizational change (pp. 15-30). Routledge.
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of Organizational Change Thinkers (pp. 937-950). Cham: Springer International
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Campbell, R.J., 2020. Change management in TESCO. The health care manager, 39(2), pp.50-
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Collins, E., and et.al.,2020. Applying transformational leadership in change management
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INTERPROFESSIONALISM. Journal of Organizational Culture, Communications and
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