Impact of Change on Organizations: Tesco, Sainsbury, and Morrison

This report provides an in-depth analysis of change management practices at Tesco, Sainsbury, and Morrison. It begins with an introduction to organizational change and its importance, followed by an examination of the impact of change on organizational strategy and operations across the three companies. The report then explores the effects of both internal and external drivers of change on leadership, team dynamics, and individual behavior, including discussions on strengths, weaknesses, opportunities, and threats (SWOT) analysis for each company. It also outlines measures to mitigate the negative impacts of change on organizational behavior. The report further investigates various barriers to change and their influence on decision-making processes, followed by an overview of different leadership approaches employed to navigate and manage change effectively. The report concludes with a synthesis of findings and insights into effective change management strategies within the context of the case studies.

Understanding and Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P 1 Impact of change in organization strategy and operation in different organization.........3
TASK 2............................................................................................................................................5
P 2. Affects of internal and external drivers of change on leadership, team and individual
behaviour................................................................................................................................5
P 3. Measures to overcome the negative impact of changes in organizational behaviour.....8
TASK 3............................................................................................................................................9
P 4 Different change barriers and their influence on decision making..................................9
TASK 4..........................................................................................................................................12
P 5 Various types of leadership approaches to deal with changes.......................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Change refers to a process through which some of the practices which are followed by
the person or the company changes. If the change is within the organization then it is known as
organizational change (Hayes, 2018). The organizational change is the process through which the
company changes its way of working or adapts to some change which has been there in the
external environment. This change needs to be managed and understand well because if these
changes are not adopted then the company might undergo losses and failures. The present study
will understand the change management at Tesco, Sainsbury and Morrison.
The company Tesco is a multinational company headquartered in the city of Welwyn
Garden in United Kingdom. The company was founded in the year 1919 by Jack Cohen general
merchandise retailer and groceries stores. On the other hand, the company Sainsbury is also a
chain of supermarket founded in the year 1869 in Holborn, London in United Kingdom around
150 years ago. The another company that is Morrison is also a supermarket founded by William
Morrison in the year 1899 and is headquartered in Bradford, England.
The report will outline the impact of changes on the
operations of the company. Next it will discuss some of the ways through which the internal and
the external changes influences the individual and the team behaviour and also the effects of
these changes on the leadership within the company. Further it will highlight some of the
different steps and measures which can be used to eliminate or minimize the negative impacts of
these changes on the behaviour of the company. Moreover, it will also discuss about the various
kinds of barriers of change and their influence of decision making. At last the report will apply
some of the various forms of leadership approaches in dealing with changes.
TASK 1
P 1 Impact of change in organization strategy and operation in different organization
Change is needed by every organization. The change may be in the organizational
strategy, operation, structure, product and the communication channels. Changes in the
organization increase the new opportunity area for increasing their profitability and the
productivity. The change in the organization may impact positively or negatively. The positive
impact of changes increases the performance of the organization but the negative impact
increases the employee turnover, management cost and time etc.
Comparison of changes in different organization

Tesco : Tesco simplify the operational structure by eliminating the role of people and
compliance manager and provide the authority directly to the line manager (Nelson-Brantley,
and et.al., 2018). It increases their power to contact directly with the customer to address their
problem and meet their demands. Tesco also change their organizational structure to the
hierarchy structure. The hierarchy structure of the organization delegate the work and
responsibility to the different department and coordinate the work in appropriate and effective
way. Tesco changes its strategy and work for the environment protection by using the paper bags
and reducing the carbon level through different activities. The change in the structure of the
organization help in managing the work by assigning the duties and also help in control the
department by giving them authority. Tesco changes it strategy of expanding the business and
zero carbon business by 2050. Tesco use the acquisition and merger strategy to expand their
business and acquire greater market share. It help Tesco to get the more popularity and
increasing their asset value and globalize the business in global market.
Morrison : Morrison change its business from family business to FTSE 100 retailers
helps to modernize the business in system and process way. It increases their market share and
profit. The change in technology also increase the performance of the Morrison. The advance
technology provides the various measure to promote their product in the market like the use of
social media, email, mass communication, etc. These increases their reach to the consumer and
help the Morrison to position in the market (Salman and Broten, 2017). The change in
organization by adapting the advance technology also improve their distribution level. Now from
the advance technology they can easily get the order of their customer and deliver the product on
their places. The change in leadership strategy also help them to increase their profitability.
Morrison change their leadership style from autocratic leadership to the democratic leadership.
Morrison was a family owned business so all the power of making decision are in the hand of the
family members. Morrison adapt the democratic leadership style and involve the employees in
decision-making process. They give opportunity to the employees to give their valuable
suggestions to improve the organizational structure and innovation in the product of the
Morrison company. The changes in the structure, models and the strategy help the organization
to improve their performance in the market.
Sainsbury : Sainsbury change its promotional strategy to reach the customer. They use
the social media like Facebook, twitter, Whatsapp and emails to provide their services to the

customer and solve their problems through the emails and feedback form. It will help them to
enhance the value of Morrison in the market and create the Brand image. It also increases their
market share and profit margin by attracting more customer towards the organization. Sainsbury
changes its operational strategy to meet the consumer demand (Fernandez, and Rainey, 2017). It
uses the different quality measure in the organization to measure the quality of the product and
services in the market and increase the belief of the people. The change of adaptation of
employee engagement technique in organization help Sainsbury to get the valuable ideas from
their staff. From the 150000 staff Sainsbury get the 20000 ideas from which they implement
2000 ideas in the organization. These change increase the productivity and also the efficiency of
employees. Now employee feel more valuable in the company and give their best to get the
desire outcomes. They also change their strategy of waste management in the firm. For the
management of waste in the organization they create a baseline and also train their employees
and ground staff member to manage the waste in the company and apply different methods to
minimize the waste in production and operational activities.
TASK 2
P 2. Affects of internal and external drivers of change on leadership, team and individual
behaviour
The internal and external drivers of change affect the organization leadership, team and
individual behavior. The internal and external drivers are customer, suppliers, invention,
resources, technology, government etc.
Internal drivers of change
Basis Morrison Tesco Sainsbury
Strength The inventions of new
product and services help
the organization to
implement the changes
and affect the team,
leadership and individual
behavior.
Tesco is the largest retail
company in UK. The
capabilities of the
employees of Morrison
affects the team and
individual behavior. The
capabilities of employees
The research and
development department
innovate the new product
to capture the market.
The innovation need the
ideas of employees which
increase their moral and

inspire the group to
develop the new skills.
motivate them to work
for the organization.
Weakness The dissatisfaction of
employees to the
organizational changes
decrease the efficiency
which ultimately affects
the leadership and team
behavior.
The low cost strategy of
Tesco decreases their
profit and also the
motivation of the team
and individual (Alvesson
and Sveningsson, 2015).
The rising food prices in
the world increases the
cost of Sainsbury and
decreases their profit.
The desire of getting
more in sometime
increases the burden of
the employees and make
feel them overloaded.
Opportunity The innovation in the
product create the
opportunity for the
organization to expand
their business in the
market. The internal
driver like capabilities of
management help to
introduce the innovation
in more precise way.
The opportunity of the
expanding the Jack
business by opening a
new discount store create
the job opportunity for the
job seeker but the same
time it also affect the
individual and team
behavior by the fear of
feeling unknown in the
organizaation.
The self check in and
check out services will
help the Sainsbury in
increasing the sales. The
internal drivers help in
implementing the
services in the
organization and increase
the team work.
Threat Increasing competition in
market becomes the threat
of the organization. It will
reduces the market share
and interest of the
customer.
The change in the taste
and preferences of the
customer becomes the
threat for the organization.
It decreases the profit of
Tesco.
Increasing the role of
globalization become the
threat for Sainsbury. The
latest technology connect
the world and provided
the product from
anywhere in the world.

Resources : The proper resources in the organization help in smooth working of the company.
Teso provide sufficient resources to the employees so they can use their potential to get the
higher results. The insufficient resources decrease the efficiency of the individual and team
member which also affect the organization profit.
Invention : The invention in the organization increase the morale of the employees to participate
in the organizational activities and decision-making process. It also influence the other
employees to give their best and invent the new products so they can get the appraisal from the
management.
External drivers of change
The external drivers of change affect the individual, team and leadership behaviour. The external
drivers of change are :
Customer : The need and demand of the customer force the leaders to change their
strategy of offering the product to the customer. It also forces the team to develop the new
product according to the need and demand of the customer. It forces them to provide the tailor
made services so the customer can make changes according to their need like Sainsbury provide
self checkout services to their customer.
Technology : The advance technology drive the changes in the organization. It improves
the operational work by recording the all data and details of the employees in system. It also
reduces the paper work and increases the efficiency of the team and individual. Tesco used the
advance technology in the organization to promote their product and deliver the product on time.
(Tesco to simplify operational structures, 2018). The advance technology reduces the role of
manpower in the organization which decrease the morale of the team because they feel the fear
of loosing their job.
Government : Government implement the new rules and regulation in the organization
like the environment protection act which force the leaders and team to use the paper bags
instead of the polythene and manage the operational waste. The changes in the government
policy influence the leaders to enhance their skills and use their whole strength to cope up with
the changes.
Competitors : The competitors in the external environment also drive the changes in the
organization. The strategy of competitors force the leaders to make new strategy to compete with
the competitors and maintain stability in the market. It increases the challenges which increase

the capability of the team and individual. Competitors of the organization build a competitive
skills among the team. They influence the team member to work in a team and give their best to
achieve the organizational target.
P 3. Measures to overcome the negative impact of changes in organizational behaviour
The changes in organizational behavior make both positive and negative changes in the
organization. Sometimes the changes in the organization create problems like it may increase the
employee turnover, dissatisfaction and conflicts in the company. Changes in organizational
strategy like innovation of new product, different promotional techniques may also increase the
cost of the organization and decrease the profit. Because the taste and preferences of the
customer are different. Sometimes the innovative product not accepted by the customer which
decrease the profit of the firm. The different measures to overcome the negative impact of
changes are :
Training and development program : The training and development program in Tesco
and Sainsbury train their employees to develop the new skills in them. It helps the employees to
adapt the changes in the organization. The negative impact of change is employee turnover,
conflicts etc. The training and development program influence the employees to work in
challenging environment and with different culture (Rauter, Jonker and Baumgartner, 2017). It
boosts their morale to accept the organizational change and retain the employees in the
organization. It develops the new skills in the employees and increases their knowledge. Training
and development program also provides ample opportunity to the employees to use their strength
in the company. It also introduces the team leadership among the employees and improve team
work which ultimately reduces the conflicts in the organization.
Induction program : The changes in the organization are change in strategy, operational
work, structure, methods etc. The organization change their operational activities to get the
higher achievement in the market. Sometime these changes increase their cost or increase the
employee turnover because employees are not ready for the changes. The induction program in
the organization like Tesco, Sainsbury and Morrison introduce the changes in the organization to
their employees and stakeholders. It aware the management about the changes and explains the
benefit of changes to the organization and the people connected to the company. The induction
program aware the employees about the changes and give them time to accept the changes and
evaluating the impact of change in their personal and professional life.

Motivation : To overcome the negative impact of changes in the organization, Tesco
conducted motivational program and events to increase the motivation of the employees and
inspire them to accept the challenges of changes in organization (Watkiss, and Cimato, 2018).
The change in technology in the company reduces the manpower which create fears in the mind
of employees to loose their job. It helps to reduce the employee dissatisfaction from the changes
in the strategy and operation of organization.
Rescheduling the activities : To overcome the impact of negative changes in the
organization they can also reschedule the activities. It helps them to find the gap in the
organization and analyses the reason behind the gap. To analyses the gap in the organization they
can easily manage the conflicts among the employees and management.
Effective communication : The effective communication help to communicate the right
information to the employees and explain the changes needed by the organization. To the
effective communication organization can minimize the negative impact of changes in the
company (Lozano, 2015). It helps to explain the impact of the changes in the company and to
know the views of the employees about the changes which ultimately help them to manage the
conflicts and improving their performance.
TASK 3
P 4 Different change barriers and their influence on decision making
Organizational change refers to a situation which arises due to any alteration or
modification which is happening in the business environment that is both the internal and the
external environment. The business runs and operates in the environment which is highly
dynamic in nature so the business has to undergo many changes. These change can be of both
types that is positive and negative (Cameron and Green, 2015). The positive changes are such
which helps the company in growing, on the other hand the negative changes are such which
does not help the company in growing rather these change pulls down the company's growth
level.
For adopting the changes, the company has to take many steps and for this there are many
barriers also in the way of adoption of the changes (Matos Marques Simoes and Esposito, 2014).
Some of the barriers are as follows-
Lack of knowledge- this is the major challenge which the company faces while
implementing the changes within the company. This is so because of the reason that if the

management only does not have complete knowledge relating to the change than how it will
implement the change in the company. This is due to the reason that before implementing the
change within the company it has to make the employees understand all the details relating to the
changes in detail.
Now if the management does not have complete knowledge regarding the change then it
can be very harmful for the company's growth and profitability. This is because of the reason that
if the employees understand the change in different way then it may be possible that the
company has to face severe losses and failures. This is the major challenge faced by Tesco.
These barriers affects the decision making very much within the organization. This is because of
the reason that if the leader or the manager does not have complete knowledge regarding the
change then they will not be able to take the decision that whether the change is beneficial or not
for the company.
Broken communication- this is yet another major barrier for the implementation of the
change. The communication refers to the process of the transferring the information from the
sender to the receiver in the same manner as intended by the sender. The communication possess
much problem in the change management because of the reason that there may be possibility that
either one of the party that is the sender or the receiver may misinterpret the change. It may be
possible that the management or the manager who is responsible for the implementation of the
change misunderstands the change then the manager will not be able to make the other people
understand the change.
On the other hand, this can be a problem on the side of the employees also. This can be a
case where the management of the Morrison understood the change properly and then they
convey that change to the employees and the employees are not able to understand the change
properly then the Morrison will not be able to implement the change properly.
The communication as a barrier influences the decision making to a great extent. This is
because of the reason that if the communication among the employees and the manager is not
clear then the manager will not be efficient enough to take the decision. Because if the leader or
the manager does not know that whether the employees are ready to accept the changes or not
then how the leader will decide for the acceptance or the rejection of the change.
Ineffective leadership- the term leadership is defined as the capability of the individual
or the person who is responsible in influencing and directing the employees or the followers

under the leader himself (Donnelly and Kirk, 2015). The ineffective leadership possess a
problem or barrier in the implementation of the change this is because of the reason that if there
will be inefficient leadership then the leader will not be able to make the employees understand
the change effectively and in the proposed manner.
The leadership plays the crucial role in the implementation of the change. This is because
of the reason that if the employees are not able to understand the change then it is the duty of the
leader to make the employees understand all the changes according to the requirements of the
changes (Verhulst and Lambrechts, 2015). The another reason for the importance of leadership
in the change management is that the leader knows that how the employees are to be tackled and
how they have to make the employees understand about accepting the change so they will be
efficient enough to make the employees explain the importance of the change. This is the major
challenge faced by the Sainsbury in implementing the change within the company.
All these challenges can be overcome or recovered from the use of the Force Field
Analysis. The force field analysis is developed by Kurt Lewin. It is a method or technique which
is used in listing down all the forces which are both in favor and not in favor and evaluating and
analysing the impact of the forces on the business because of the change. This analysis is used to
determine and analyse that whether the change in the environment is practical or not if adopted
by the company then what will be the outcomes of the change. Also the force field analysis helps
the company in identifying the advantages and the disadvantages of the change and its
implications.
This tool uses a series of steps wherein the model starts with identifying and defining the
problem. After that the next step is to define the change objective which includes listing the
advantages of implementing the change. The next step is to identify the driving forces of the
change that is the benefits which the company will enjoy after the implementation of the change.
Next step is to identify the forces that restrains the implementation of the change. It means that
this step includes the drawbacks of implementing the change. The last step is to develop a
suitable strategy after analyzing the above two forces (Force field analysis, 2015). If the driving
force are more than the change will be implemented and if the restraining force is more than the
change will be resisted.

TASK 4
P 5 Various types of leadership approaches to deal with changes
The leadership may be defined as the process through which the person or the individual
or the leader leads a group of people under the control of the leader. The leadership is very
important for the company because a leader provides motivation to all the employees because if
the employees are not able to understand anything than the leader helps them in understanding
and implementing all the changes (Daft, 2014). All the different types of leadership approaches
help in dealing and implementing the changes within the organization. The different types of
leadership approaches which all the three organization uses in implementing the change are as
follows-
Autocratic leadership- this is a types of leadership approach within which the employees
or the followers do not have any authority or power to take the decisions in the group. The group
members just have to follow what the leaders or the manager asks them to do. This makes the
employees feel that they are just a slave for doing the work and for which they are being given
salary.
This practice of leadership is followed by Tesco. Here the employees are not asked for
any ideas or any suggestions, just they have to do what the manager has asked them to do. This
type of leadership does not promote the implementation of the change because here the employee
is not asked for their views so the employees also resists in accepting the change.
Democratic leadership- this is a type of leadership adopted by Sainsbury. Under this
approach of leadership, the leader or the manager discuss the problems with the group members
and asks for their suggestions and ideas (Shamir and Eilam - Shamir, 2018). Though the final
decision making power rests in the hands of the leader only but they take suggestions from the
employees. This increases the morale and satisfaction level of the employees.
This is because of the reason that the employees feel obliged and privileged that they are
being asked for the suggestion and also that their suggestions will be used and implemented by
the company. In this type of approach to leadership the change management is not tough because
as the leader takes suggestions from the employees so the employees feel confident and also
trusts them that the change being implemented is for the benefit of the organization as well as for
the individual employees also. So use of this type of leadership helps in implementation of the
change.