Unit 17 - Understanding and Leading Change Report - Retail Sector

This report examines the multifaceted aspects of change management within organizations, using Morrison as a key case study. It begins by comparing how different organizations, including Morrison and Microsoft, have adapted their strategies and operations in response to internal and external drivers of change, such as market demands, technological advancements, and internal conflicts. The report then evaluates the impact of these drivers on leadership, team behavior, and individual employees, employing tools like PESTLE analysis to understand external influences. It also identifies and analyzes the various barriers to change that leaders face, and proposes measures to mitigate the negative impacts on organizational behavior, such as fostering a supportive culture, employee engagement, and training. Finally, the report explores different leadership approaches and models that can be utilized to effectively navigate and implement organizational change, providing practical insights for managers and leaders seeking to improve their change management strategies.

Unit 17 - Understanding
and Leading Change
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Compare different organisational examples where changes has impacted on organisational
strategy and operation..................................................................................................................3
LO2..................................................................................................................................................5
P2 Evaluation of the way internal and external drivers of changes have affected leadership,
team behaviour and individuals within organisation...................................................................5
P3 Several measures that can be taken to minimise negative impact of change on organisation
behaviour.....................................................................................................................................8
LO3..................................................................................................................................................9
P4 Evaluation of different barriers and their influence on decision making of leaders..............9
LO4................................................................................................................................................12
P5 Leadership approaches and models that can use to deal with change..................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
There are several changes in external environment that directly or indirectly impact on
growth and productivity of organization. Such as taste and preferences of people, policies of
government, technology advancements etc so company needs to adapt to all such external factors
in order to sustain its business operation for longer time frame. This report is about Morrison that
is United Kingdom based organisation operating in retail sector to provide several services to end
users. This report has cover points such as comparison between different organisation where
change have impacted on organisational strategy and operation. The way in which internal and
external drivers of change has affected leadership, team and individuals behaviours. It has also
included information related to key barriers for change and leadership approaches that helps in
dealing with change.
LO1
Compare different organisational examples where changes has impacted on
organisational strategy and operation
Companies make several types of changes in its organisation structure, management
practices, policies and procedure so that it can retained its market positioning and enjoy huge
profit margin. Therefore different examples of organisation are taken in order to understand the
way they have impacted on operation and strategy of organisation (Sibbet and Wendling, 2018).
For examples:
Morrison as third retailers have changes its management structure that lead to removal of
15000 jobs and creation of new 1700 roles, the main aim of proposed changes is to enhance
customers services. It is opportunities for manager to stay within company as it is expected that
there will be more than 800 management vacancies in Morrison stores in near future.
So it is type of transformational changes in which Morrison have target its strategy to
provide best services to end customers so that there are motivated and inspired to be part of
organisation.
Drivers of change
Better customer’s services: It can be stated that Morrison in order to deliver qualitative and
timely services to customers has decided to make changes in its management practices and
organisational structure.
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Ineffective management: Previous Morrison has ineffective management so it drives company
to work on its practices and structure to retain its market share (Berg Danilova, 2019).
Impact on strategy: Changes in management practices lead to changes in strategy as company
now mainly focus on customer’s satisfaction level for its growth and success. Morrison has to
changes its strategies related to management of people and resources so that better outcome can
be achieved.
Impact on operation: Lot number of people has to lots their job, roles and responsibilities of
individual have changed and new manager are hired to deliver best services to customers. So,
overall operation of organisation has changed due to changes in its management practices and
structure.
On the other hand, Microsoft is another example that has also restructured its
organisational structure in order to eliminate many internal division and conflict among
employees. It was found that different departments of Microsoft were fiercely competitive thus
it leads to mismanagement or barriers in effective operations (Microsoft shakes up management
– again, 2013). So, Nadella have made planned changes in organisational structure so that
company can grow and expand its business operation in minimum time frame (Hay, 2017). Like
company was unable to defined roles and responsibilities that need to be performed by
each individuals that result in conflict and confusion. Different drivers that have motivated
company to brining changes in its organisational structure can be stated as:
Drivers of change
Internal conflict: One of reason that motivates Microsoft company to bring changes in its
structure or division of department as each department was much independent form each
others. They are competing with each other’s thus it created barrier for organisation so
management have decided to make changes its structure so that they can easily coordinate with
each other’s and contribute in growth and success of firm.
Globalisation: Changing external environment or globalisation, increase competition level and
expansion of business operation are some of the factors of drivers that influence Microsoft
management to change in its structure so that company can gain and retained competitive
advantages (Clack, 2020). Company in order to effectively adapt to global trends
Impact on strategy
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Changes in organisation structure have impacted on strategy of Microsoft as company
have emphasis more on coordination of several division of firm in order to deliver qualitative
services to end customers and it can easily expand its business operation across worldwide.
Impact on operation
It has also impacted on operation of business as the way employees will communicate,
their roles and responsibilities have totally changed. Now, different department rather than
conflict with each others are motivated to work together or coordinate each other for
achievements of common goals of organisation (Kelley, 2016).
LO2
P2 Evaluation of the way internal and external drivers of changes have affected
leadership, team behaviour and individuals within organisation
There is always specific reason for any organisation to implement changes within firm
that are known as drivers of changes. It can be external or internal drivers like, employees,
management, organisation structure, resources are internal drivers. Whereas government
policies, economic condition and taste in preferences of people and technology development are
external drivers that motivate company to adapt change in order to grow and survive in highly
competitive market condition. Pestle analysis model can be used to understand the way external
drivers have impacted on leadership, team behaviour and individuals of Morrison’s.
External Driver of
change
Leadership Team behaviour Individuals
Political Factor:
There are numerous
changes in policies of
government like
Brexit have resulted
in unstable political
condition so
management are
Political factors have
impacted on decision
making of leaders as
they have to motivate
and influence
employees by
following all the
changes made in
There is not such
major impact of
political factors on
team behaviour.
It can be illustrated
that individuals due to
political changes or
impact of brexit are
feeling unsecured and
uncertain about the
employment or job
within particular
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facing difficultly in
decide appropriate
course of action that
they can take for
benefits of
organisation. So,
manager of Morrison
in order to cope up
with changing policies
have implemented
new management
practices.
regulation for smooth
operation of
organisation (Yardley
and et.al., 2016).
organisation.
Economical factor: It
is another factor that
have act as external
drivers of changes
which include
demographical
structure, income of
people and interest
rate prevailing in
particular economy.
With wide range of
individuals working in
organisation,
Morrison have to
change its practices
and structure so that
they can be easily
managed and
Leaders due to
economic slowdown
have to find different
ways that can be used
to reduce cost or the
work can be
performed in the best
possible manner.
There are numerous
new employees that
have joined team
which have different
skills and capabilities
thus it will contribute
in enhancing learning
skills of team
members.
Individual’s behaviour
is also affected by
economic drivers as
they have to adapt
new techniques to
make optimum
utilisation of resources
(Popovic and Plank,
2016).
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motivated to work
hard.
Social factor: There
are several changes in
society or taste and
preference of people
so Morrison in order
to deliver best and
quick services to
customers have
planned to make
changes in its
management practices
and organisational
structure.
Social factor also
have impact on
behaviour of leaders
of Morrison as they
have change their
leadership styles as
per type of individuals
so that they are
motivated to work
hard for growth and
success of enterprise.
Team behaviour is
also affected by social
factor as new and new
individuals join the
company with
innovative and
creative ideas.
Employees of
Morrison are not
having with change in
organisation structure
or management
practices as it will lead
to change in their
overall roles and
responsibilities.
Technological
factor: There are
numerous changes
and development in
technology, company
are invested in new
technology or digital
media to deliver
extreme qualitative
services to end users
so that company can
gain competitive
advantages (Ropo,
2019). So, company
in order to make use
Morrison leaders have
to developed new
skills and capabilities
to make use of digital
media or innovative
technology so that
company can adapt
itself with new
changes and gain its
objectives.
Team of company
also have to learn new
techniques, skills and
knowledge to use
make of technologies
so that they are able to
deliver expected
services to customers.
It can be understand
that some individuals
of Morrison with
changes in technology
are motivated to learn
new methods to
complete particular
task while other resist
to new technology due
to lack of confidence
level.
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of new technology
have to make changes
in its management
practices.
There are several internal factors that have impacted on behaviour of leaders, team and
individuals of Morrison such as limited availability of financial resources have emphasis leaders
to find different ways it can be arranged and effectively utilised for benefit of organisation. There
is huge cultural difference between people, so it is quite difficult for leaders to find strategies that
could yield in coordinating team member towards achievements of organisational goals.
Company strength to offer more better services have drive organisation to enhance its
management practices that resulted leaders to find new and innovative method to complete their
task so that company can achieve its objectives in limited time frame. So, overall it can be stated
that internal and external drivers of changes have direct impact on leadership, team behaviour
and individuals that are working for growth and expansion of enterprise.
P3 Several measures that can be taken to minimise negative impact of change on
organisation behaviour
There are numerous challenges that management of Morrison faces while implementing
transformational changes within firm that have negative impact on organisational behaviour.
Employees are individuals or human that normally resist to changes as they are adapt to
particular situation and circumstances. They does not want to come out of their comfort zones
that resulted in creating negative impact on organisation behaviour (Amin and Servey, 2018).
So, key measures that have been taken by Morrison to minimise negative impact of change on
organisational behaviour can be illustrated as follows:
Creation of support and learning culture: Management of Morrison in order to motivate
employees to adapt to new change that company is planning to bring in near future has emphasis
on creating supportive work culture. It have ensure that employees are offered required
assistance and support so that they can easily accept change rather than resisting or creating
barriers in its effective implementation.
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Engaging employees: Another key step that has been taken by Morrison management to
implement new practices and organisational structure is more engagement of employees in
several process (Benn, 2016). Manager has motivated employees to give their respective
feedback or suggestion regarding the way process can be improved so that overall objectives can
be achieved. Thus, through active engagement and participation manager is able to create
positive environment to motivate employees to accept change quick so that company can
retained its market positioning.
Training and development: Management in order to minimise affects of negative impact of
change on organisational behaviour have planned to organise training and development program.
In training employees are explained about their new roles, responsibilities and the way they have
to complete specific task so that seamless experienced can be offered to end users. It has planned
to develop new skills of employees by promoting them to higher level so that they can make best
use of their capabilities for growth of firm.
Form the above analysis, it can be suggested that Morrison management can make use of
PDCA in order to create positive environment so that employees are influenced to accept change
rather than resisting and creating hindrance in smooth operation of enterprise (BHALLA, 2020).
There are four steps that need to be followed by manager of Morrison in order to create positive
environment such as:
Plan: The first steps that need to be taken by management of Morrison is to plan stage the way
change will be implemented, identify key issue barriers that company have to face while
adapting to change. At the same time plan key action that it could take in order to minimise
effect and achieve specific goals.
Do: At this stage company needs to identify key strategies or action it can take in order to change
its management practices so that better services can be delivered to end customers.
Check: In this steps management needs to monitor and check the impact of particular changes so
that corrective actions can be taken within limited time frame and cost for benefit of
organisation.
Act: It is last stage at which manager needs to find more alternative solution or method that
could be fruitful in minimising impact on organisational behaviour of Morrison for better
outcome.
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LO3
P4 Evaluation of different barriers and their influence on decision making of leaders
Implementation or adapt to external changes is necessary for every organisation in order
to retained competitive positioning in external environment. While implementing particular
change like organisational structure and management practices changes in Morrison, there are
several barriers that have to be faced by manager. So, force field analysis model can be used to
understand key drivers and barriers of organisational change. Force field analysis is a model that
understand several factors or forces that influences particular situations thus it helps in
identifying driving and resisting forces (Levering and Vos, 2019). There are six steps involved
in force field analysis such as:
Steps 1: Currently Morrison is facing challenges related to ineffective management or optimum
utilisation of resources that lead to dissatisfaction or loss of customers. Therefore management
have planned to make amendment in its organisational structure and management practices so
that it can easily cope up with changes in external environment.
Step 2: The main objective behind changes in management practices is that company wants to
enhance its market share, positioning and profit margin by delivering products and services as
per taste and preferences of individuals. It wants to make better coordination between several
individuals or employees so that they can work together for achievements of common goals.
Step 3: Identification of driving factors: It can b illustrate that there are numerous driving factors
that motivate Morrison to adapt to changes so that company can grow and sustain for several
years (Sadeghi Kermanshahani, 2019). Different factors or drivers of implementation of changes
in firm are explained below:
Changes in taste and preference of customers: Now – a- days, due to availability of several
alternative options customers have become more demanding or better services in limited time
frame. So, company in order to save time of customers or provide quick deliver have plan to
make changes in its organisation structure and management practices so that maximum outcome
can be offered in minimum cost.
Increase complication within firm: It is another driver that force Morrison to work on its
organisation structure as employees conflict with each others in regards to activities that they
need to perform so that company can attain its objective. Unclear roles and task need to be
completed by specific individuals have lead management to design organisation structure or
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management practices where employees can easily perform their task and contribute in growth of
organisation (Nedelko and Potocan, 2019).
Competition level: There are huge numbers of enterprise operating in retail sector with varieties
of products and services to meet customer’s expectancy. So, overall competition level in industry
has increased at rapid rate so Morrison in order to sustain its position needs to bring changes in
its organisational structure and management practices.
Globalisation: Free trade policies have provided opportunities to companies such as Tesco,
Morrison to easily expand its business operation across worldwide. Due to globalisation and
diversification of business, Morrison needs to make changes in its structure or redistribute task
that need to be completed by specific individuals so that end goals can be achieved. Therefore,
globalisation is also driving factor that motivates company to bring changes to earn huge profit
margin.
All this drivers directly and indirectly impacted on decision of leaders as they have to
plan new strategies that could be fruitful in motivating employees to work hard for growth and
success of enterprise. Like globalisation have influence leaders of Morrison to make use of
different or contingency leadership to motivate employees to make optimum utilisation of their
capabilities so that firm can enjoy high market share. Leaders through making individuals happy
and satisfied helps in building strong brand image thus contribute company in gaining
competitive advantages. Therefore, all drivers directly impact on decision making of leaders.
Step 4: Several barriers to effective change: There are numerous factors that acts as barriers in
effective implementation of changes and achievements of desired outcome. Such as:
Lack of effective communication strategy: It can be stated that one of the crucial barriers that
hindrance organisation changes is lack of communication strategy that lead to confusion and
conflict between employees regarding particular task that they need to complete. Manager by not
clearly stating employees about vision and mission or benefits that organisation and employees
will get by performing specific task will have to face barrier in implementation of change.
Resistance of change: Most of the employees of Morrison are resisting to accepts new changes
as they have lack of confidence level regarding whether they are able to perform particular task
or not. They wants to follow perform existing task only so that resist to adapt changes as it will
require new skills, knowledge and capabilities to perform particular task (BHALLA, 2020). It
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may also result in lost of employment of some of individuals that are not required by
organisation thus they resist adopt change. Therefore, it is biggest barriers that Morrison
manager will face while implementing change strategy in organisation.
LO4
P5 Leadership approaches and models that can use to deal with change
Change is part of business; it can drive sales and profitability of companies even better
than last few months or years. It also influences staff performance and productivity level but in
negative manner because most of people at workplace could like and easily except change. When
Morrison’s announce restructure or modification of it’s in outlets, it can lead to decrease morale
of staff, which manager and leader can minimize effectively and successfully by implementing
suitable models or methods of leadership to process change appropriately.
Situational leadership approach-
Along with appropriate and relevant approaches and concepts leader can use this method
because it can help them to eliminate negative impact of change in Morrison’s store where
number of applicants are work together (Mansour and Elziny, 2020). According to this model,
leader can process change and implement strategy relate to it successfully after analysing overall
situation, which is actually very important in context of business growth and managing change.
With this form leader can examine reason for resistance and then take action.
Hersey Blanchard model-
Directing-
It can be define as most effective leadership style that Morrison’s leader can use to
manage change and process it efficiently. He or she can give direction to employee about how
they can work in environment where change can be happen.
Coaching-
This style is quite common and most of leaders are using to boost morale of staff in
context of allow people to act with new things like management structure within Morrison’s
store. They can support candidates to accomplish daily task on time without taking too much
stress.
Supporting-
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