Leading Change: Impact on Strategy, Behavior, and Decision Making

This report delves into the complexities of leading change within an organizational context, focusing on the impact of change on business strategy, operations, and the behavior of leaders, teams, and individuals. It examines both internal and external drivers of change, such as technological advancements, market competition, and legal factors, and their effects on leadership styles and decision-making processes, specifically referencing Sainsbury as a case study. The report also explores barriers to change and proposes measures to mitigate adverse effects on organizational behavior, including cultural and motivational strategies. Furthermore, it evaluates various leadership approaches to effectively deal with change, emphasizing the importance of communication, employee involvement, and the development of a supportive organizational culture to foster successful change management. The report underscores the significance of adapting to a dynamic business environment to achieve sustained success and growth.

Understanding And
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1 Impact of changes on business Strategy and operations........................................................2
P2 Evaluating the ways in which internal as well as external drivers of change impact
leadership, team and individual behaviour .................................................................................4
P 3 Measures that can be adopted in order to reduce the adverse effect of change on
organisational behaviour.............................................................................................................6
M1 Assessing the several drivers of change and the type of change they have impacted..........7
M2 Evaluating business response to change...............................................................................7
TASK 2............................................................................................................................................8
P4 Barriers for change and determining the way they influence leadership decision making. . .8
TASK 3............................................................................................................................................9
P 5 Several leadership approaches to deal with change .............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
In present era, increase in globalisation and volatile market has made important for the
organisation to implement change in its policies procedures and system. As this activity will
assist business entity in achieving success and fostering growth. Change in context of
organisation is defined as process in which big companies bring changes in working pattern or
objectives. Leading changes needed developing experiences for customers that will assist
organisation in exploring and capturing various opportunities. Manager in Enterprise need to
create effective as well as appropriate strategies in order to manage and deal with the change at
workplace. The manager and business owner are facing several challenges in implementing
successful change in business. Change has great impact on the various activities, procedure or
system in an enterprise. The change is defined as a procedure in which enterprise makes
improvement in working system .
The study is conducted in order to develop the understanding about various strategies,
method and technique that can be used for implementing and managing successful change at
workplace. The study will have analysing the forces in business environment and identifying the
way it influences activities in organisation in Context of Sainsbury.
TASK 1
P1 Impact of changes on business Strategy and operations
The change in context of business means revaluation or reassessment and making
improvement in management system or structure as well as in procedures. The change is the
procedure that assists organisation in increasing its sustainability and maintain its business
performance in increasing competition and global environment. The manager in Sainsbury is
required to develop appropriate strategies, policies in order to lead as well as implement change
within an enterprise. The benefit of change is that it allows firm to overcome complex and
difficult situation (Iqbal,2015) The factors that encourage company to bring change at
workplace include evolution of new technologies, competitive as well as dynamic business
environment, trends, customers needs and demands etc. The internal factors that drives
Sainsbury to implement change includes employees, other stakeholders, business culture,
organisation structure, relationship between employer and workers, strength as well as weakness
of firm etc.
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The is recognised as leading company. The Sainsbury is dealing in retail industry. The
business entity offers wide variety of products such as home furniture, clothes, sift items, food
products, clothes etc. As cited is dealing in wide variety of goods there is less effect of changes
in business environment on enterprise operations. But there are still some internal as well as
external forces which have little impact on business operation and organisational strategy. The
Sainsbury company has to face stiff competition from its competitors like Tesco, Asda etc. The
modification in the strategy adopted by the rivalries firm has great effect on Sainsbury sales and
profitability. The Sainsbury has adopted low cost market strategy in order to provide effective
and suitable response to its competitors. The employees in Sainsbury has been provided with
training, so that they could become capable of adjusting into changing Environment. This
activity of the firm has provided workers an opportunity to keep update themselves with
enterprise objective and latest business trends. The manager in Sainsbury has planned to
diversified its products. As this strategy will aid firm in reducing the impact of environmental
changes on business operations. The Sainsbury has adopted focussed diversification strategy in
order to deal with such situation (Kathy and Deborah,2007)
Due to the major effect of environmental factors and changes in business system, Tesco
which in dealing in same industry has to face issues of high employment turnover. The manager
in Sainsbury has developed effective policies, strategies in order to retain employees and attract
more workers. Increase in intensity of competition has created barriers for Tesco in achieving is
goals and objectives. The purpose of Tesco is to deliver quality services and products to it
customer. But due to impact of changes on employees has diverted the organisation focus on
providing satisfaction to workers. Manager in Tesco has developed effective strategy in order to
deal with such situation. The Tesco has decided to introduce new products and services. As this
strategy will assist enterprise in reducing the impact of competitors on business activities. All the
above issues and challenges that has faced by Tesco has great impact on the business entity
growth and market share. Manager in the business unit has planned to formulate effective
marketing strategies in order to assist an enterprise in increasing market share and fostering
growth. The Tesco company need to identify ways or techniques to facilitate operations more
efficiently as well as cost effectively (Kaur, 2017)
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P2 Evaluating the ways in which internal as well as external drivers of change impact leadership,
team and individual behaviour
Leadership is defined as the activity of leading group, department, or people at
workplace. The role of leader is to motivate its followers to support enterprise in achieving
business goals and objectives. Leadership includes authority, guidance, supervision,initiative,
influence etc. The various elements that has effected the leadership, Employees behaviour and
team are:
Internal drivers of change:
Organisation culture-This is the important variable that has impact on the decision made by
manager of leaders. It also has effect on individual performance at workplace. The leaders in
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Illustration 1: Differentiation Strategy of Sainsbury
Source: (Strategic Analysis of Sainsbury 2012)

Sainsbury is required developing effective safe and healthy working environment. As this
activity will help firm in motivating employees to retain their job and enables workers to
develop as well as maintain healthy relationship with employer.
Availability of resources-This is the significant factor that is required to perform all operations
within an organisation. Lack of resources have impact on the strategy, decision and business
operation's. It has great effect on managing practice by leader. Due to lack of resources the
leaders may face difficulty in formulating strategies for team members and providing training to
workers. This forces have adverse effect on team performance.
Technology-This is another factors have both positive as well as adverse impact on workers'
behaviour. Technology enables employees to increase their working efficiency. It provides
organisation an opportunity to reduce the work burden on workers. The leaders in Sainsbury has
the potential to develop effective business culture that is completely supported by mutual respect
among employees. The manager in Sainsbury is required to promote team work. As this activity
will enable business entity to improve its productivity. It is required by Sainsbury firm to
emphasize on providing effective as well as quality service to its client (Krogh, Nonaka and
Rechsteiner, 2014. )
External drivers
Legal factors-Changes in taxation policies by legal authority have direct effect on the prices of
products as well as services. This factor has forced Sainsbury to increase the price of products in
order to fulfil the need of taxation policy that is developed by government. This activity is very
important as it assists business entity In maintaining profit margin. Legal forces has direct and
great influences on manager or leader decision regarding implementation of new business
practices at workplace.
Social factors- This forces has created the major challenge for business entity. As the
organisation face difficulty in recognising the demand of customer in the market. Social factors
have direct impact on the demand and supply of goods and services. This factor has great effect
on the product development strategy and consumer policies formulated by leader of manager in
an organisation. The manager or leader in Sainsbury is required to introduce effective customer
policies and focus on developing innovative product. As this strategy will assist firm in
minimising the impact of social forces on firm productivity and business plans.
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Technological forces- These are those external variables that demands change in the
organisation system. In case if the business entity fails to identify the appropriate technology
then in such situation this factor may have negative impact on the working efficiency and
productivity. It also has direct effect on the quality of product and services. The development in
technology has provided Sainsbury an opportunity to develop competencies and also supported
enterprise in becoming more responsive towards changing situation (Lee and Lawrence,2015)
Economic factors-These constituent include financial performance of organisation that
influence manager to plan or implement change at workplace. Positive change support company
in improving as well as maintaining financial stability. It also allows financial manager to opt for
new ways of raising funds for fulfilling demand of several business operations.
Environmental variables-Increase in intensity and level of competition among industry
encourages manager in as Sainsbury to develop or increase its uniqueness in order to gain
competitive advantage in the market. In order to reduce the competition or adverse effect on
same on business operation , manager in an enterprise is required to identify new ways or
methods to increase its competencies and competitive strength.
Customer complaints- this the most important factor that drives firm towards change. As if the
company fails to handle the complaints of customers then in such situation there may be threat to
firm sustainability. It is required by Sainsbury to employ effective system for focusing ,
handling and managing the complaints of clients. As this will help manager or leader in
organisation to identify the appropriate solution to solve the problems faced by customers.
P 3 Measures that can be adopted in order to reduce the adverse effect of change on
organisational behaviour
The Sainsbury company can adopt several strategies or techniques that will assist
Sainsbury in reducing the impact of internal as well as external business environmental forces
on organisational activities.
Cultural forces- The recruitment or selection of new candidate are much influenced by the
culture in company. Cultural forces have great impact on individual as well as business
performance. The Sainsbury has effective working Culture which assist organisation in attracting
and retaining Talented Employees. Open communication system in an enterprise has enabled
workers to increase their confidence, share their values ideas and belief. This has provided
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Sainsbury an opportunity to increase its uniqueness and competitive advantage. It has provided a
chance to increase its competitive strength and allowed business entity to deliver quality services
to customers. The Sainsbury can enhance its business culture by communicating its goals and
objectives to its employees. The enterprise is required to involve their workers in decision
making process. As this will help firm in identifying effective ways to solve various business
problems. As the cultural issues have great impact on brand image.
Motivational forces-These factors have great impact on the satisfaction level of employees and
individual performance at workplace. The manager in Sainsbury is required to develop effective
policies and strategies. As this activity will help business entity in motivating workers to
improve their performance at workplace (Hakanen and van Dierendonck, 2014) Motivational
forces have direct impact on the business performance and on customer services. It also has
effect on the quality of products or services and on productivity. Manager in Sainsbury need to
develop attractive reward system as this will help the organisation in inspiring people to increase
their participation in various business activities and decision making procedure.
Involving workers in change management procedure supports workers in developing feeling that
they are also important part of business. It will also aid workers in adjusting to change.
Decision making-The external environmental forces have direct impact on business decision and
strategy. Effective communication allows manager and leader to make appropriate decision. The
conclusion made by manager or leader is much influenced by business culture, changes in
external business environment, relationship between employer and employee etc. The business
approach to danger helps in determining extend to which managers and employees feel
comfortable taking risks in their decision making. Innovation and creativity are more likely to be
stimulated in organizations that encourage informed risk-taking.
Change management-It is essential for Sainsbury to provide appropriate response to changing
situation. As this activity will assist enterprise in increasing in sustainability. It is required by
manager in Sainsbury is required to inform workers about the implementation of change at
workplace. This activity will help manager in seeking support from employees. It also enables
organisation in bringing drastic improvement in policies, procedures and system. Human
resource manager should demonstrate the effect, consequences, need of change to workers. As
this strategy will assist Sainsbury in implementing the successful change at workplace and
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minimising the adverse effect of external forces on change management procedure. This activity
will support manager in identifying the reaction of workers towards change management
procedure (AlMazrouei and Zacca, 2016)
Developing open communication system- This strategy or activity will allow employees to share
their ideas, values , beliefs related to change management or implementation plans. As this
activity will also aid manager or leader in eliminating the several barriers that may occur in the
transformational process. Concentrate on effective delegation. Too often managers and
supervisors feel they must use self-protective measures, especially during organizational change.
It will also assist manager or leader in demonstrating that they are more concerned about the
various problems that has been faced by employees due tio change in working pattern or
business system.
Positive as well as supportive attitude by manager or leader will help them in seeking
support from employees in implementing successful change at workplace. Communicating and
listening to employees problems is the important activity to be conducted by manager or leader.
As change can unsettle your employees and adversely effect working environment as well as
culture within an organisation.
M1 Assessing the several drivers of change and the type of change they have impacted
External drivers that has force cited Sainsbury to implement change at workplace are:
Competition: The increase in intense competition and entry of new rivalries in the market has
encouraged business entity to facilitate change and bring improvement in policies, system and
procedures. It has forced manager in Sainsbury to make changes in business plan and strategies.
Technology has encouraged organisation to develop new products and make
improvement in quality of products and services. It has made compulsory for manager to provide
training to workers and provide enterprise an opportunity to develop team of technical skilled
employees (Avolio and Mhatre, 2014)
M2 Evaluating business response to change
K otters change is the effective model. This model can be adopted by Sainsbury as this
will help organisation in bringing positiver change at workplace. It will enable business entity in
implementing and evaluating the impact of change within a business unit. The kotters model
include various stages such as creating urgency, forming a powerful coalition, defining mission
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and vision, communicating objectives, planning tactics, implementing and evaluating the
effectiveness of change.
TASK 2
P4 Barriers for change and determining the way they influence leadership decision making
Executing a baseline or risk assessment procedure will assist to recognise the potential
barriers that can occur in implement successful change at workplace. These barriers can create a
gap in suggested and present practices. It can also have adverse impact on firm production
procedure. The manager in Sainsbury need to address these barriers and should identify the
effective solution to eliminate hurdles. As this activity or strategy will help them in planning,
implementing and managing change in systematic manner. The general barriers that can occur in
the change management procedure are :
Lack of workers involvement-This type of barrier may occur because workers in the
organisation are more concerned about the change procedure, they perceive that this factors may
have impact on their performance or career growth. So the employee are rarely involved in this
process. The enterprise may face such situation in which the loyal employee or workers may
resist the change. Fear of the unknown, lack of desire to adjusting into a new culture and
eventually a complete barrier to the change. It is normal that workers resist chance as they feel,
comfortable working in constant environment. The workers face difficulty in adjusting into new
working culture or environment (Barrick and et.al., 2015)Loss of job as well as competence is
another important reason due to which many of employees within a company resists supporting
change.
Ineffective communication strategy-There are some business unit in which there is lack of
open communication system. The leaders or manager at top level of management perceives that
once they have communicated about the change to workers, employees will get themselves
adjust into the new environment. This factors have great impact on individual behaviour and
attitude towards supporting the change process. Lack of effective communication may lead to
increase in uncertainty and it may further result into demotivation in employees.
Poor Culture shift planning-There are many cases in which the management team does not
have much knowledge about the impact or consequences of making modification. This factor has
adverse effect on the business culture. Generally management team fails to make decision
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considering the interest or benefit of workers. This factor has great as well as negative impact on
the employer and employees relationship. In such situation the organisation can not seek
supports from employee in order to implement successful change within an enterprise. The lack
of effective planning can create more barrier rather than generating advantages or benefits.
Behaviour of leader and manager- The attitude of top level executives during decision making
procedures may have great impact on the activities related to the implementation of change. It
also has impact on the effectiveness of executives action in change management procedures.
Lack or ineffectiveness of ideas-if the change is planned and implemented without conducting
assessment and without the effective plan may lead to failure in implementing successful change
at workplace.
Business complexity-The lack of knowledge about the change consequences may lead to
complex procedure. This may have adverse effect on planning and implementing change a bit
more complex. Complexities involve difficult procedure, products and system. All this factors
leads to barriers in change implementation and management procedure.
Politics in organisation- Some of the workers may resist change due to the politics .Workers
may intends to prove that the change decision is ineffective or wrong. Such people may create
barriers in change implementation procedure (Collinson and Cook, 2014.)
TASK 3
P 5 Several leadership approaches to deal with change
The leader or manager in Sainsbury needs to adopt appropriate leadership approach. As
this model can assist leader in successfully planning, implementing change within an
organisation. The change management procedure include establishing vision, communicating a
plan and in measuring results.
The transformational and servant leadership approach important implication in context
of change management procedure in business. Transformational leadership model emphasize on
intellectual stimulation than servant leaders. Servant leaders focuses on supporting their
followers in their development procedure. Leaders with such type of leadership approach help
their follower in increasing their potential to facilitate particular task and in facilitating their
personal growth. The transformational leader motivates workers to facilitate innovation and
increase productivity. Such type of leader are more interested in taking more responsibilities and
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risks. These type of people are always ready to support firm in achieving their business goals
and objectives. Servant leaders emphasizes on supporting manager in making initial strategic
plans , development of new events for increasing efficiency. The servant leader are more
concerned with self advancement designing rewards for appreciating followers for their
beneficial contribution. The leaders with servant approach are more concerned with individual
development. Transformational leaders focuses on growth of business (Daft, 2014)
CONCLUSION
The report has concluded that it is essential for organisation to facilitate changes at
workplace. As this activity will assist firm in increasing their sustainability and maintaining their
performance during the difficult times. It has been identified from the study that Sainsbury
company has to face many issues due to change in external as well as internal factors. The
project has successfully highlighted the barriers that are required to be address by manager in
Sainsbury in order to facilitate successful change within an enterprise.
It has been suggested to the manager that it should make effective plan before
implementing change at workplace. The report has recommended that the top level management
in organisation should conduct assessment before facilitating change. As this activity will help
them in measuring the effectiveness and consequences of change.
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