Organisational Change and Leadership: A Comparative Report

This report provides a comprehensive analysis of change management and leadership within organizations, focusing on the impact of internal and external drivers on leadership, team, and individual behaviors. It uses case studies of ASDA and Marks & Spencer (M&S) to compare organizational strategies and operational changes. The report evaluates measures to minimize the negative effects of change, such as providing rewards and incentives, and offering effective training sessions. The report also explores the application of different leadership approaches to address change, including the PDCA model, and examines barriers to change and their effects on leadership decision-making. The report discusses how changes in political, economic, social, and technological factors influence organizational behavior and offers recommendations for effective change management, equipping leaders with strategies to navigate organizational transformations successfully.

Understanding and
Leading Change

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations ..............................................................................1
TASK 2............................................................................................................................................3
P2: Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation..................................................................3
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour........................................................................................................5
TASK 3............................................................................................................................................7
P4 Different barriers for change and their impact on leadership decision-making................7
TASK 4............................................................................................................................................8
P5: Apply different leadership approaches to dealing with change in a range of organisational
contexts...................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Change can be defined as occurring of modification within the workplace that has
favourable and adverse influence on the business operations and functioning of organisation. In
addition, changes in policies, plans or technology is termed as organisational change. Growth
and success of an organisation is depending on capabilities to adopt several incidence and
formulation of effective strategies. When appropriate changes are adopted or implemented by
organisation, it provides opportunities of decreasing risk and also assist in achieving goals of
firm in a timely manner. Chosen organisations for present report is ASDA which is engaged in
retail sector and having a global market presence all over the world. Company’s headquarters are
located in Leeds, London. Report will describe about the internal and external drivers of changes
that influences the working behaviour of leaders, teams and individuals. Further, a force field
analysis will also do for identifying the driving forces of change. In last, report will also include
different leadership theories which are applied by the leaders for dealing with changes.
TASK 1
P1: Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations
Changes are those elements which are constant in marketplace because each organisation of
marketplace make changes in their strategies, plans on regular basis so that profitability or
competitive advantage can be gained by them. Company can also bring modification in their
working structure like changing in mission, goals or targets or innovating new product in market
so as to enhancing market share and customer base (Bevan, 2013). Two firms are taken for
consideration to implement change that is Asda and M&S. Internal and External factors can
affect the working of an organisation which is given as below along with functional instance.
Factors of changes which are mainly discussed as below customer awareness and technological
development:
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Basis ASDA Marks and Spencer
Customer awareness Strategy can be defined as a
step by step action plan by
organisation for launching
their product in marketplace.
Company has invested more
funds on promotional or
advertising activity meanwhile
customers wouldn’t purchase
the products if this will not
satisfy their needs and wants.
After analysing this factor,
company have also invested
funds in Research and
development department so as
to develop product as per the
demand of customers.
Management of M&S was
getting good productivity and
profitability in past period but
main difficulty which is faced
by organisation is that their
existing and old customers are
not coming in organisation due
to which their sales figures are
not increasing in expected
manner. After majorly
analysing this factor they have
identified that their customer
service department are not
performing their duties in
effective manner. So they have
started providing training to
their employees so that
customer satisfaction would be
increased at a certain level.
Advancement in technology Operations are very important
for each firm at the time of
making new products because
price and quality of product
are directly influenced by
these. For increasing
productivity ASDA can
implement latest technological
systems like JUST in Time or
Total quality management so
As M&S is basically selling
their products at their physical
stores but market trend is
rapidly changing then their
managers have decided to
launch online platforms for
selling their products so as to
increasing customer base and
sales figures.
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that if any mistake would be
seen then it would be removed
accordingly.
From the above discussed table it has been identified that changes are very essential for
both firms so as to improving customer base and sales figures. By implementing technical
improvement systems like JIT and TQM ASDA can improve their productivity whereas, through
launching products at online platforms management of ASDA can enhance their sales figures
and customer base.
TASK 2
P2: Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation
There are several internal and external elements of change that can influence leadership,
team and individual’s behaviour directly. ASDA is a supermarket chain having 633 stores with
more than 160000 employees who are working in it for achieving common goals of organisation.
Some of way in which internal and external drivers can influence team, individuals and
leadership are given as below:
Internal Drivers: These drivers includes differences of culture. Morale, values of
employees and situations that are exist within the firm. Some of these internal drivers are given
as below:
Financial management: Funds are very essential for each organisation so as to run their
functions in good manner. Lack of funds can negatively influence on the working behaviour of
team and workforce of organisation in completing their assigned task in the given time frame.
Through improving operational leadership, ASDA can easily enhance efficiency and
performance of their operations in effective manner (Doppelt, 2017).
Resources: Resources are also essential for each organisation so as to achieving the goals
in a given time period. It can also impact on the working behaviour of team and individuals
because without proper amount of resources leaders of ASDA can’t assign work properly to their
teammates. When teammates wouldn’t perform their duties in well manner then it influences the
profitability or productivity of firm in negative manner. Leaders of ASDA are responsible for
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providing support and guidance to their teammates but when they have not required amount of
resources it will directly influences on their working efficiency. Without support and guidance of
leaders, teams and individuals of ASDA wouldn’t perform their assigned duties which will
adversely influence on the brand image of organisation.
External drivers: These drivers can influence on working behaviour of team and
individuals from outside of organisation. These drivers can be analysed through PEST analysis
which are given as below:
Political:.Change in political conditions can also impact team, individuals and leaders of
M&S. Leaders have responsibility for analysing the changes in laws and regulation of
government so that operations can be functioned in smooth manner. If these changes are not
determined by ASDA in a specific time, then it can influence developed strategies of leaders and
managers. If any changes are occurring due to political factors in the firm, then working
behaviour of team and individual will also affected which is not beneficial for the brand image of
ASDA. Therefore, it is important for the leaders of ASDA to consider these factors while
forming strategies so that changes can be implemented accordingly (Espedal, 2017).
Economical: This factor can also influence on leadership, team and individual behaviour.
Profitability of firm get influenced when buying behaviour of customers are low and firm is
selling products at higher prices therefore, in this situation managers of ASDA should form new
strategy which will implemented by leaders. Due to changes in strategies, leaders, team and its
members will also get affected due to which their behaviour and performance will also hampered
in negative way.
Social: This factor is related with taste, preferences of customers which can indirectly
impact the leadership behaviour. Changes in demand of product encourage the leaders of ASDA
to make modifications in existing strategies and policies. When leaders will make strategies
according to market trends it will bring profitability towards firm. By making strategies ability of
leaders will have improved which indirectly encourage their teammates for showing their talent
and capabilities.
Technological: These factors are comprising of advancement of technology which
should be adopted by organisations so as to enhance productivity of firm. Such changes enable
the flexibility in leaders because with the help of it they will be able in providing guidance to
their employees so that changes will be adopted accordingly. By using advanced technology
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teams and individuals of ASDA will work with required efficiency and as a result of it,
profitability of organisation will be enhanced.
External impact on individual, leadership and the team
Leadership Team Individual
When legislations and
regulations of nation regarding
tax, employment,
environmental laws are
changed, then leaders have to
identify these changes
accordingly. When these
modifications will have
identified in proper manner,
then leaders have duty to make
modifications in strategies as
per requirement. If these
changes are ignored, then it
can impact adversely on the
decision making of firm.
When leaders will make
modifications in the strategies
and policies, then temamates
have also duty to make
modifications in their working
structure. But if team mates
are not aware regarding the
changes then it adversely
impacts on their productivity
due to which given task will
not have finished in given time
period.
When leaders and teams will
make changes in their working
structure and strategies, then
team should also need to
change accordingly. But it
takes too much time in
understanding new working
structure and technology due
to which their working
performance will be impacted
in adverse manner
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
Organisations like M&S and ASDA should take several measures for reducing the
negative influence of change on the organisational behaviour. These measures are given as
below:
 When employees of organisation provide obstacle to change then it defines they are
comfortable with the current working structure of organisation. If workers are not ready
for the changes then they will provide political influence and obstacle to change. For
overcoming such obstacles, Management of ASDA have to provide rewards and
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incentives to them. Through these rewards employees feel motivated and encouraged for
working in changing conditions.
 When implemented changes are complex in nature then employees find it hard to adapt
with and will face difficulty in their working. For removing such kind of complexity
managers of ASDA should provide effective training sessions to their workforce so that
changes can be applied accordingly. (Anderson, 2016)
PDCA Model: Marks and Spencer company is using PDCA model in order to
overcoming the negative influence of change on behaviour of organisation. This model is
categorised in four parts such as plan do check or act. These four steps are very supportive in
determining several issues of change for taking suitable decision for improving the performance.
Model is briefly explained as below: Planning: In it, leaders and managers of organisation determine difficulties of changes
and to plan suitable strategies so that, changes can be implemented accordingly.
Management of ASDA is planning for implementing new technology in the business
functions so that mistakes can be eliminated from the production process. Do: In this, leaders and managers make solutions so as to overcoming the problems of
change in effective manner. For this, management of ASDA is thinking for providing
better training to their employees so as to enhancing their knowledge and skills for
working on new and updated technical machinery. Check: In it, managers and leaders have to compare actual output with standard output so
that impact of change on company can be estimated in effective manner. In this, Leaders
and managers of ASDA have decided to measure the changes so that it can be determined
whether it is profitable or not. After analysis of impact they have prepared plans and
strategies as per the requirements.
 Act- This is the last phase of Model in it, ideas and opinions and employees so that
problems can be addressed in proper manner. When the changes are not beneficial for
organisation than several measures will be taken for conducting market analysis. With the
help of this, problems can be solved in easy manner which will be helpful in taking
further decisions.
From the above model, Management of ASDA can resolve the difficulty of adverse
impact by conducting proper analysis and by checking influence of change on different business
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operations. Through the check, managers can determine whether changes are beneficial or not.
Through act, management can easily provide solution for problem related with change.
TASK 3
P4 Different barriers for change and their impact on leadership decision-making
Effective understanding of change management assist business organisation in framing
effective and innovative strategies which will further beneficial for the organisation in evaluating
and implementing changes. Changes can be defined as an ongoing process that plays a very
important role in each aspect of an organisation. Main objective behind bringing changes in the
business organisation is related with enhancement and maintenance of production department.
Barriers of change management: It is not important that each individual adopt changes
then it will create barriers within organisational change. Barriers creates gap that can adversely
impact on the daily activities of ASDA. There are various barriers of change management which
are described as below:
Lack of Employee Involvement:
This is one of the most important barriers in change management in which workers
mainly tends for resist changes and has negative approach towards it because they have fear to
get replaced. In the context of ASDA, it seems that some of the loyal employees of organisation
resist changes that lead creation of fear in them. Main reason behind all these functions,
managers is not taking consideration on views and opinions of employees in decision making
process. Due to which, improper decisions are made which leads the organisation towards wrong
way.
Lack of Effective Communication Strategy:
There are various business organisations in which communication strategies and changes are not
implemented due to which they can’t communicate policies to their employees. As management
of ASDA have not implemented effective communication structure in their workplace because of
which employees are resisting for changes that can create adversely influence on the profitability
of firm (Foltin, 2012).
Forcefield Model of change management is also described below:
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This model can be considered as key approach of study change management. This
approach was given by Professor Kurt Levin and includes restraining and facilitating factors.
Model is given as below:
Facilitating Factors:
In it, these elements are includes that encourage effective adoption of change. It includes
outdated machinery and requirement of alteration in structure. In this, leaders have to play an
effective role of aligning behavioural characteristics of each employee for effective
implementation of changes in the organisation.
Restraining factor:
In it, there are various factors that are present in and outside of business organisation that
encourages the managers of firm in effective adoption of change. Some of this factor involves
government regulations, employee resistance and consumer that resist adoption of change.
TASK 4
P5: Apply different leadership approaches to dealing with change in a range of organisational
contexts
Leadership plays a very crucial role in development and growth of every organisation.
Therefore, leaders have duty to adopt effective leadership styles so as to managing or controlling
the business functions effectively. In ASDA, leaders are also plays a very cruicial role in
retaining their employees for a long time period and support the employees for achieving desired
objecives of organisation. There are Some styles and approaches of leadership which are used by
leaders for removing issues of change are briefly explained as below:
Autocratic Leadership: It is an important style of leadership in which all the employees
are centred aroung them. According to this, leaders have specific authority or ability to take
important decision for the betterment of organisation and they not considered views and
suggestions of employee for decision making. This approach of leadership is not appropriate
because leaders of ASDA takes important decision on their own level and communicate
decisions to their employees for applying it within the firm. This style is useful when leaders
have to take fast decisions so as to improving productivity. This approach can also use when for
improving the process by not delaying in their actions (Salmela, 2012).
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Democratic Leadership: This is an another of leadership in which leaders takes
suggestions and views of employees so that better decision will be made. Democratic leaders
have required authority and power to take decisions but they mainly prefers to those person who
are not involved in project. Such kind of leaders provide effective support to the organisations in
achieving desired goals in a limited period of time. With the help of this approach, Leaders of
ASDA can improve efficiency and performance level of their employees. This approach also
leads the organisation towards good environment which automatically improves organisational
inefficiencies.
Situational Leadership: It is also an effective approach of leadership that supports
organisation in handling various issues of workplace in effective manner. By taking support of
this approach, Leaders of ASDA can easily make decisions as per the demand of situation or
problems which creates better environment at workplace. This kind of leaders have also ability to
determine situations and adopt styles as per the kind of change.
Affiliative Leadership: This style mainly emphasises on making trust and mutual
understanding among team mates for creating strong emotional bonds that is helpful for
promoting sense of belongingness in an organisation. Leaders who follows this kind of style
makes focuses on team first so that teammates will not lose their confidence level and performs
their duties in effective manner (Storey, 2016). Such kind of leadership is used when confidence
and morale level of employees are low and they are not performing well on the given task. This
style can prove useful for the leaders of ASDA as they can repair broken trust of the employees
and firm by making effective communication structure and for making harmony in team.
CONCLUSION
It has been concluded from the above discussed report that adapting changes are very
important for firms in order to gaining growth and market presence in marketplace. There are
various aspects of changes like political, social and so on that can influence the leadership, team
and individuals. Therefore, Leaders of organisation have duty to consider these aspects while
making any kind of strategies or policies so that overcome of this aspect on the change can be
reduced in easy manner. Leadership styles also plays very important role as they helps the
organisation in removing the influence of changes and gaining desired outcomes in a specific
time period.
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REFERENCES
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change. Sage Publications.
Bevan, H., Plsek, P.E. and Winstanley, L., 2013. Leading large scale change: a practical guide.
NHS Institute for Innovation and Improvement.
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Organizational Change Management. 25(4). pp.560-575.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Drago-Severson, E. and Blum-DeStefano, J., 2018. Leading change together: Developing
educator capacity within schools and systems. ASCD.
Espedal, B., 2017. Understanding how balancing autonomy and power might occur in leading
organizational change. European Management Journal. 35(2). pp.155-163.
Foltin, A. and Keller, R., 2012. Leading change with emotional intelligence. Nursing
management. 43(11). pp.20-25.
Salman, Y. and Broten, N., 2017. Leading Change. Macat Library.
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nursing. 68(2). pp.423-433.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Tozer, J., 2012. Leading through leaders: Driving strategy, execution and change. Kogan Page
Publishers.
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Online
PEST Analysis. 2018. [Online] Available through.
<https://www.visual-paradigm.com/guide/strategic-analysis/what-is-pest-analysis/>./
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