The Role of Leadership in Managing Organizational Change

This report delves into the effects of various internal and external changes on organizational structures, emphasizing that such changes can be either positive or negative depending on how they are accepted by the company. It is crucial for organizations to implement measures effectively to mitigate any adverse impacts. Leadership styles play a pivotal role in change management models, significantly affecting how these changes are handled. The report also compares two established tour companies, Thomas Cook and Cosmos Tour, highlighting their responses to environmental changes. To navigate these transformations successfully, both Lewin’s model of change and Kotler’s 8-step model are discussed as strategic frameworks that can guide organizations through the process of adapting to continuous change.

Understanding And
leading Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Compare different organisations on the basis of organisation's strategy and operations.3
P2. Evaluate the ways in which Internal and external drivers of change affect leadership, team
and individual behaviours within an organisation..................................................................5
P3. Explain measures to reduce negative impacts of change on organisational system........7
TASK 2............................................................................................................................................8
P4. Barriers for change and how they affect leadership decisions in organisation system....8
TASK 3............................................................................................................................................9
P5 Describe different type of leadership approaches to face organisational changes............9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Every business operates in the dynamic environment which keeps on changing with time.
Therefore it’s become important for every organisation to keep in pace with the occurrence. It
involve altering the policies, rules, regulations in order to comply with the present scenario. This
aspect is known as organisational change. These modifications may differ from organisation to
organisation. There are different types of changes that need to be consider in business entity.
This report highlights the condition of Thomas Cook and Cosmos tours which deals in tour and
travels industry of UK. Thomas Cook is a well-established company in UK having number of
branches all over the world. Apparently, Cosmos is a small sized company. This project
underlines the impact of organisation strategy which can be negative and positive impact. Hence,
leaders have to consider these changes efficiently and effectively.
TASK 1
P1. Compare different organisations on the basis of organisation's strategy and operations.
Changes can be done in various ways which can be in form of modification of policies,
rules, regulations, concepts. Organisation needs to be structured in various ways by applying in
change behaviour accordingly. It is the wok of managers to deal with alteration and apply in such
a way that positive outcomes are received for the same. Thomas Cook and Cosmos Tours are
popular tour companies in UK. They are running successfully and leads to full filling their
objectives and goals. Changes affect according to the size of the company. For example cosmos
tours is small sized company so the impact of changes are not that big as compared to Thomas
cook Tour Company. These modifications tries to influence each company in such a manner that
they have to modify their structure in order to keep pace with these changes (Doppelt, 2017). The
impact of changes on strategies of both the organisation is mentioned below:
Basis of Difference Thomas Cook Cosmos Tour
Impact of External Factors External factors are out of the
control for any company as
they do not have control on
these changes. Hence, in most
As it is small sized company
and is operating on small scale,
therefore the impact of
external changes are less as

time it renders negative impact
on the organisation. It become
necessary that environment
scanning should be done
properly by manger of the
Thomas cook.
compared to Thomas Cook.
Innovation in technology As it is large sized
organisation they have to
consider each and every
updation in technology
section. Organisation does not
have control on changing
technology. No doubt that
adopting new and advanced
technology always helps
company to improve their
productivity and operations.
But if there is sudden changes
occur, it may pose a huge
problem in front of them.
Cosmos tour deals with lesser
number of operations hence,
the impact of technology
changes are that much as it is
on large sized company that is
Thomas cook. On the other
hand, lots of finance is also
require to adopt these changes.
Due to small size of the firm
they cannot adopt all the
necessary changes.
Changes in structure. Whenever any modification.
Alteration take place related
with structure. It can be risky
for such company. Thomas
Cook have hierarchy in which
they have to operate in proper
unity of command and chain.
These kind of changes have to
apply in proper way in such
small sized organisation.
Under this type, there are cases
when employees resist such
changes.
In dealing with such changes. It is the responsibility of leaders and mangers of all the
organisation to carry put the process of change management (Yoder-Wise, 2014). The impact on

company can be negative hence, they have to be prepared in such a way. To carry put such
process, they have to make appropriate plans for the same. Operations: Operation of any organisation involves carrying out work in practical
manner. It aims in performing task in effective and efficient way (Suchman, 2011).
Cosmos tour and Thomas Cook have to modify their operational strategy in order to bring
changes and modifications. Finance department have to be altered so that they can
implement specific rules in market place.
 Strategy: Strategy formulation helps in preparation for future events that may arise
hence, strategy provide paths to meet such uncertain events. Managers of the company
have to motivate their team to follow the strategy formed in effective manner so that final
goals can be achieved. As Thomas Cook is a big organisation, they have to execute their
strategies in accordance to current market condition. They always focus on developing
such strategy that results in accomplishing their final outcomes in effective manner.
Therefore, after comparing it is observed that management of the company have to
prepare themselves in such a manner so that all the changes can be met in a proper way.
P2. Evaluate the ways in which Internal and external drivers of change affect leadership, team
and individual behaviours within an organisation.
Change management refers to adopting proper tools and elements in such a manner that
modifications. Main aim of the organisation to achieve profits and outcomes in efficient and
effective way. It is very important foe mangers to evaluate such changes in proper manner.
While examining external factor in proper manner it is observed that there are five factors of
external changes that has to be evaluated by company in proper sense (Hrebiniak, 2013). Their
impact can be on entire industry, company, teams, individuals, leadership and employees too. Technology driven changes: In order to achieve competitive advantage every business
have to adopt technological changes in effective and proper way. Technology aspects
keeps on changing with time hence, they have to adopt these modifications in order to
achieve final goals and motives. Customers Driven Changes: Customers are the important asset of any company as all
products and goods are produced for them. They have to be properly analysed in proper
way. Thus, customers are essential source of attention. Thomas cook and Cosmos Tour

Company have to provide services in proper manner. Consumers are the ones who will
bring revenue for industry. They cannot be ignored at any cost. For instance, if customer's
demand changes due to increase in their expectations ans hence, company have make
modifications accordingly. Competitors Driven changes: With the adoption of new changes and modifications it has
been observed that it is very important to consider strategies of competitors. Hence, it is
very much necessary that Thomas Cook have to consent in account properly. Government driven Changes: It is very important to adopt rules and regulations of
government as they impacts the working of organisational system. Government provide
basis of rules which has to be followed by each and every entity of society. Violating it
will lead to trouble in future time (Johnson, 2016).
 Environmental driven changes: there are number of changes that occur in surroundings
or in environment, which will affect the company culture directly or indirectly. Industry
do not have option to ignore them, they have to make changes according to environment
in order to survive in market place.
There are number of internal drivers that will affect the decisions related to team, individual
or leaders. Some noticeable elements of internal changes are discussed below:
 Modifications in organisational strategies: It include nature and behaviour of employees,
individuals that are working in business organisation. It is the duty of organisational
system to construct such conducive and healthy environment of working.
 Alterations in Finance sector: Funds and finance are consider important resource for any
company institution. Hence, any changes in this factor lead to moulding of policies
related to it.
Internal elements influencing teams-
 Structure: The team structure should be simple and clear. It will help in attaining the
targets for which it is formed.
 Team size: The size should be accurate so that proper handling can be done.
 Proper communication system: It is an important component in team to have a proper
communication system.
Internal factors influencing Individual-

 Behaviour: Every one possess different behaviour and thinking. Hence, it is the
internal factor that may impact decision. Behaviour of employees will have a direct
impact on organisational strategies and rules. Thomas Cook and Cosmos Tour must
have
 Style of leadership: It can be difficult for personnel to adapt particular leadership
style. There are number of diverse leadership styles that are executed in Cosmos Tour
and Thomas Cook that have to be conducted in corrective mode.
Working culture: The environment in which any individual work is directly linked to their
performance. It is considered one of the internal driver (Whitney, 2011).
P3. Explain measures to reduce negative impacts of change on organisational system
Modifications can be negative if it does not bring proper results for the industry. It become
Necessary to execute measures to reduce the adverse impact over organisational system. Every
company works to gain maximum outcome and establish goodwill in minds of prospective
buyers. To convert negative impacts in to positive it is mandatory to apply proper and correct
steps. Otherwise the overall result will not be according to the set standards. Attention should be
made to implement actions in response to changes. Measures to minimize negative impact over
system is described below:
 Shortage of Energy in workers: Changes are not easily accepted by employee in
organisation and it become necessary to train them in order to accept such modifications
as it is beneficial for them (Salmela, 2012).
 Proper attention should be made on demand and needs of customers: Consumers are
the real kings of market. All company or business produces for them to full fill their
needs and desires. In order to sustain in competitive market area it is necessary to win
hearts of prospective customers. Hence, it will help in reducing negative impact over
business entity. They should produce such products which aims in pulling more and more
people towards them. This allows to increase market share at significant level.
 Contribute to society: Every business carry out activities in society, hence it is their duty
to respect it. CSR activities are included in it, here company have to contribute something
for development of economy. For example while carrying out production process it is
necessary to take care about pollution factor. Proper attention should be made not to
perform such actions that will provide harm to society.

 Build strong brand loyalty: Customers are more focused towards quality of products.
They do not compromise in that. Hence, it become important for company to produce
such goods that have high quality. In case of Thomas cook and cosmos tour, both the
agency should focus on delivery high quality services to their prospective customers.
Than only any business or organisation can enjoy good loyalty in the mind of customers.
Creating positive goodwill is very much necessary in today’s world, full of cut throat
competition (Hintz, 2013) There are number of firms working in same industry hence, it
is essential to stand away from the crowd. This factor will allow more and more people to
avail their services or products.
 To resolve conflicts: There are number of situations and conditions that lead to arise of
conflicts that may occur between number of people in organisational system. As
employees that are working are of different in nature and behaviour thus, there can be
possibility of rise in differences between them. Therefore, in order to remove this
negative effect clashes must be minimized to significant level.
 Efficacious Communication system: There can be possibility of improper transfer of
messages that can take place between different levels. Therefore, in order to reduce such
effect proper communication system must be constructed so that every employee can able
to receive correct information regarding work.
 Conducting research: every company have its own target market, hence market research
is performed frequently to identify taste of people. It helps in knowing present demand
and needs of buyers.
TASK 2
P4. Barriers for change and how they affect leadership decisions in organisation system
Introducing change is not an easy task. It involves lots of issues and problems associated
with it. Barriers need to be properly handled for smooth running of business operation. In
order to keep pace with current time and situation it is obligatory to introduce changes in
organisation system. Business market is full of competitors hence, to sustain in the market
necessary modifications are required. There are number of barrier faced by organisation is
discussed below:

 Ineffective Communication system: Communication refers to exchange of
message, ideas between two parties. If the process is not carried out in proper
system, it may cause barrier in company system. Hence, it is the duty of
management to maintain a proper communication system.
 Special attention on key areas: Every organisation has some critical department
or areas which need to be focused. These areas helps to achieve final goals and
aims. Proper planning and implementation should be done by managers to achieve
their targets. But in the other hand these key areas are ignored it may pose a huge
barrier in front of the company.
 Ineffectual choice of leadership style: leaders are one who carry out members
towards the final goals. But if organisation chooses ineffective leadership style it
will leads to creation of barrier in front of them. It is the leader or manager who
motivate employees to achieve set targets and render proper information regarding
changes that has to be brought up in the system (Nkomo, 2011).
 Resistance by workers to accept the changes: It is the human nature that they do
not accept changes very easily. Basically they do not want to leave their
comfortable zone and that is why they find it difficult to accept any modification in
current system. It is a tuff barrier in front of organisational system because it is
difficult to influence individual to accept such alterations.to face such situation
proper training should be given to personnel about benefits to accept such changes.
 Complex System of change: It may be possible that changes are of complex
nature. It is very difficult to accept changes in one go. There are number of
hindrances that are faced by system to implement such alterations. It is very
common barrier faced by most of the company. At the end either they have to drop
the plan of accepting such change or modify it in such a manner that it can be
implemented to attain final path.
 Organisational Culture: It refers to the norms, rules, regulations followed by
individuals in organisation. Culture have a direct impact on working of employees.
For example if the culture is rigid, inflexible they will not welcome any change
very easily. Hence, rigid culture of any company will become a barrier to accept

any changes. But on the other hand if it is a flexible system, changes will be
accepted very smoothly by everyone.
From the above discussed points of barriers to change it is concluded that leadership decisions
are directly linked with changes. If there is any hindrance, decisions will get impacted in various
ways. Therefore, it become very essential to supply decisions in such a way so that employees or
workers do not face while working (Lawrence, 2015).
TASK 3
P5 Describe different type of leadership approaches to face organisational changes
Business environment is dynamic in nature. Changes are not specific or fixed with time. It
keeps on modifying itself with the passage of time. It became responsibility of mangers or
leaders to introduce such changes in organisational system. They have to adopt such
alterations in order to keep pace with the changing environment. There are number of
leadership approaches that can be applied by managers and handle such situation
accordingly. Some leadership theories are mentioned below:
 Democratic style of leadership: As the name suggest it includes that type of
leaders that act in democratic way. This means they give full right to their sub
ordinate in decision making process. It allows them to share their views and
suggestions. This style encourages innovative ideas and thoughts to be introduced
in system. It contains sufficient amount of benefits to be shared by employer and
employee. It provide motivation factor to them to be a part of corporate sector.
 Autocratic leadership style: This is opposite of above discussed approach. These
types of leaders do not allow their sub ordinate to participate in decision making
process. They only follow leader’s rules and regulations. Workers views are not
welcomed at all (Bin Taher, 2015).
 Kotler’s model of change: it is considered to be most effective and efficient
change model. Kotler have introduced this model in eight steps that includes every
aspects related to mission and vision of company, their policies and procedures,
long and short term goals etc. it aims in achieving final objectives and goals by
accepting such changes in positive way.

 Lewin’s model of change: It was coined by Lewin in 1940, under this they have
given ways through which changes can be brought up in any organisation.it focuses
on accepting changes in a way that will lead to increase in outcome and growth. It
is framed in three stages which are mentioned below:
 Unfreeze- this is first step under which mangers or leaders have to examine
behaviour, attitude, thinking process, implementation of each and every individual.
As they have to make decisions to mould it in order to bring changes.
 Change: in this stage organisational system is ready to adopt changes and it is
implemented through proper process and procedure. For carrying out this step
successfully there is a need of training programmes that has to be performed for
employees to increase their skills, knowledge.
 Refreeze- It is the last stage of change model, in which the changed system is
refreeze. So that it continue in future. Business work permanently with such change
system. Employees have also become familiar to modifications that they do not
want to go for previous system.
 Laissez- Faire style of leadership- In this type of leadership style, maximum
amount of freedom is provided to subordinates. Leaders do not interfere in decision
making policy of subordinates (Harding, 2012). They are free from the control of
leaders. They are given high amount of freedom to apply their innovative ideas and
thoughts.
These are number of leadership styles or approaches which can be adopted by industry to face
continuous changes. It is dependent on the industry whether small sized or large sized to examine
such modifications and then take decision regarding it (Peters, 2012).
CONCLUSION
This report highlights the impact of various internal and external changes on organisation
system. These changes can be negative or positive depending on acceptance capacity by
company. Hence, it become necessary for them to reduce such situation by applying
measures in effective way. Leadership styles also play important role in change management
model. Report also throws light on comparison between two established Tour companies i.e.

Thomas cook and Cosmos tour. They get influenced by environmental changes very easily.
For this they have to adopt some approaches of Lewin’s change model or Kotler’s 8 step
model of change.
REFERENCES
Books and Journals
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.