Leading Change: Impact on Strategy, Operations, and Behavior Report

This report delves into the critical aspects of leading change within organizations, using Toyota and Volkswagen as comparative case studies. It examines the impact of change on strategy and operations, highlighting how these companies have adapted to market dynamics and internal challenges. The report explores the influence of both external factors, such as political, economic, social, technological, legal, and environmental conditions, and internal factors, including strengths, weaknesses, opportunities, and threats, on leadership, team dynamics, and individual behavior. Furthermore, it provides actionable methods to minimize the negative consequences of organizational change, focusing on employee interaction, communication, and engagement. The report also discusses various leadership approaches to effectively navigate and implement change within an organization, emphasizing the importance of understanding employee perceptions and providing feedback mechanisms to ensure a smooth transition. Overall, the report offers a comprehensive analysis of change management principles and practical strategies for successful organizational transformation.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1- Comparing two companies in relation with the impact of change on strategy and
operations....................................................................................................................................1
P 2- Ways in which the external and internal factors of change affects leadership, team and
individual behaviour in company. ..............................................................................................3
P 3- Methods which can be adopted to minimise negative impacts of change on the behaviour
of companies. .............................................................................................................................4
M 1-.............................................................................................................................................6
M 2-.............................................................................................................................................6
TASK 2............................................................................................................................................6
P 4- Various behaviours which are associated with the change and their influence on the
decision-making process of leaders. ..........................................................................................6
M 3- ............................................................................................................................................7
TASK 3............................................................................................................................................8
P 5- Different leadership approaches to deal the change of organisation in the effective way. 8
M 4-.............................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Some change is necessary to be implemented in an organisation to make it leading. It
brings creativeness and innovation in the working style of company. Decision-making process is
affected by introduction of change (Doppelt, 2017). It important to understand the situation
before implementing the change. It makes the business to analyse all the situations in an effective
and efficient way. There are various factors of business environment which influence the firms to
adopt some change.
This report includes various elements of change which impacts the organisations. Two
companies got compared on the basis of change. Ways are evaluated in which external and
internal factors affect the various behaviour in company. There are many negative impact which
the behaviour has upon the organisation. Ways are given to minimise negative impacts.
Furthermore, theories are applied to evaluate response of business in accordance with the
change. However, there are various factors which act as barrier for influencing decision-making
in relation to leadership. Approaches are given to lead the change in proper manner.
TASK 1
P 1- Comparing two companies in relation with the impact of change on strategy and operations.
Change is that term which is adopted by the organisation to increase their profits and get
developed in the market. For effectively and efficiently managing this process, the company
needs to adopt proper change management in their working style. The process of changes
includes various types of objectives and goals which are to be achieved for the further
development. This procedure may affect the firm in positive or negative manner. The type of
effect is depended upon the member who is handling the process of change. There are
innovations which are brought in the companies of manufacturing industry.
One of the leading organisation in the auto mobile sector in Toyota. There are various
changes which are implemented by them in their working style to get developed in the market.
There was some major incident which had happened in their business operations. That's why
cited firm decided to adopt the process of implementing change. There are various methods and
innovation introduces by them in the working style (Fullan, 2014). There are many theories and
model which are used by them to implement the change in effective and efficient manner. Toyota
used many marketing strategies for increasing the customer range and makes them loyal. Quality
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products and services are given by cited firm to satisfy all their customers. The procedure which
has been used in the organisation made them to delegate various types of new responsibilities
and duties to the workers. It made the business to gain various types of benefits and advantages.
The company got able to fight with all their competitors in effective and efficient way. This
made cited business to provide that products which are affordable by the consumers. It
eventually made the company to increase their market share and make their brand image
stronger.
On the other hand, Volkswagen is the company who is working in the same industry as
Toyota. They introduced change in their working style because they faced many challenges in
relation with their products and brand image. There is the issue in accordance with the
diversified product range. By the implementation of change, they were able to manufacture the
products which are required and needed by the customers. There are various new and innovative
technologies which are adopted by cited firm to make the product with highly efficient quality.
This had satisfied all their ranges of the customers. They are still working with the process of
change to give sustainable business performance. However, they faced some issues regarding the
change in relations with the employees (Nahavandi, 2016). Workers showed some resistance to
the implementation of change. It made cited company to use that recruits some new and skilled
employees.
There are various types of change which are regarded as the organisational changes. They
have very deep impact on the working style of businesses. Various types of changes are as
follows:
 Human resources- They are the people who are working effectively and efficiently for the
achievement of objectives and targets which are set or targeted by the firm. The change in
this area of company is made to increase the level of talent and skills in the organisation.
 Structure- It the area which states about the different levels which are made in the
company. These departments are made in accordance with the process of communication
which is followed in the company.
 Strategies- There are various strategies which are formed in the business in accordance
with the objectives and targets. It is very important area to be considered while making
some changes in the targets which are set by organisation.
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 Procedures- There are some processes and procedures which are followed in the firm for
conducting some activities. This area will also get changed when some innovative change
will be implemented.
P 2- Ways in which the external and internal factors of change affects leadership, team and
individual behaviour in company.
There are both external and internal factors which impacts the various aspects in
company. The decision-making of the company gets highly affected by these elements.
External factors
 Political factors- The changes which are brought by this factor are in accordance with the
government (Daft and Marcic, 2016). There are various policies and guidelines which are
made by the government. These policies are to be strictly followed by both cited
organisation in the manufacturing industry. This factor can influence the behaviour of
individual in many ways because they can feel insecure with the adoption of new process
or procedure. The decisions which the leader makes will be in relation with the new
changes in the political environment.
 Economic factors- These are the changes which are brought by the situations of uncertain
economy. There are various economic conditions which arrises in the country and impact
the workings of companies. Volkswagen and Toyota both the companies gets affected by
the inflation and deflation rates, tax rates etc. It makes the leaders to change their
working style in accordance with the situations.
 Social factors- There are many social responsibilities which are to be fulfilled by the both
cited organisations. Every society has different culture to be followed. The company have
to follow the culture which is currently adopted by the society. It will affect the behaviour
of individuals at the high level because it will be difficult for them to follow the new
culture.
 Technological factors- Market is full of new and innovative technologies which comes
time to time. The change in the productivity is brought to increase the productivity of
company. This factor affect cited organisations in many ways (Nelson‐Brantley and Ford,
2017). The leaders have to motivate the individuals to use the technologies and increase
their efficiency.
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 Legal factors- This is the factor which is related to the laws and legislations which are to
be followed by the businesses working in the manufacturing industry. Not following the
laws can create many problems for Volkswagen and Toyota. But it is seen that all the
legislation which are formed in this direction are followed by both the companies. Environmental factors- There are many environmental situations which affects the
working style of companies. Volkswagen and Toyota adopts many measures which helps
them to work in environment friendly way.
Internal factors
 Strengths- The cited firms have a number of strengths. It makes them to compete with
each other and with other competitors of market in an effective and efficient way. They
had the strong brand name which attracts many types of customers towards them. There
are various changes which can be brought in accordance with the strengths. It affects the
behaviour of individuals in the positive way.
 Weaknesses- The changes which are brought in the organisations are in relation with the
weaknesses. Volkswagen has weakness of bad publicity in the market. The leader has to
take decisions for making new promotional strategies.
 Opportunities- There are various opportunities which come for the organisations of
manufacturing industry (Simons, 2015). It affects the decision-making process of leaders
in many ways. They can grab the opportunity for gaining various benefits for
Volkswagen and Toyota.
 Threats- The main threat which is faced by cited organisations is of their competitors. It
makes the leaders to adopt effective and efficient styles. This will lead Volkswagen and
Toyota to have proper teams to achieve their goals and objectives.
P 3- Methods which can be adopted to minimise negative impacts of change on the behaviour of
companies.
There are many negative impacts which the companies have to face in accordance with
the change which is being implemented. It is necessary to manage the process of change in the
effective and efficient manner. Not managing it properly can create many problems for the
Volkswagen and Toyota. There are many ways by which negative impacts can be minimised in
accordance with the behaviour of individuals. Those measures are described below:
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 Interaction with workers- Workers are the persons who works very hard for the
achievement of goals and objectives set and desired by the companies. That's why it is
important to manage and understand their behaviour for implementing the change in
better way. The management of cited companies should interact with employees and tell
them about the introduction of change to them. The process of communication should
selected in the best manner.
 Advantages of bringing change- It is the duty of management to make the employees
understand about the various benefits which they will get through the process of change.
It will make the workers to feel safe and secure and they will not show any resistance
with the implementation of change in Volkswagen and Toyota.
 Understanding workers- Foe minimising the negative impact of change in relation with
the behaviour, the organisations have to properly understand the perceptions of
employees (Caton and Mistriner, 2016). It will make cited firm to resolve all the issues
and problems which are faced by the workers. The businesses will be able find what are
the perceptions of various individuals with the introduction of change.
 Engaging workers- It is important to involve the worker in the decision-making process
for the adoption of change. This will make the employees feel that they are important part
of company and they will feel motivated. Their suggestions can help Volkswagen and
Toyota to implement the change in better way. It will effectively minimise the negative
impact of change on cited companies.
 Feedback from employees- It is necessary to take the feedback from employees to make
sure that the change is implemented in proper way. This will make cited organisations do
some improvements where it is required. The improvements can be brought through the
process of giving training to employees. It will satisfy all the workers. This will also lead
the businesses towards achievement of all the goals and objectives which are associated
with the implementation of change.
 Motivating and inspiring workers- Negative impacts of change on organisational
behaviour can be handled and minimised through the process of motivation. It will make
the employees satisfied and they will work hard for the company and be loyal to them.
This will eventually lead in the direction of increasing effectiveness and efficiency of
workers.
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M 1-
There are many drivers of change like change in the external environment or internal.
This affects the organisational change in many ways. The company have to take decision for
implementation of change.
M 2-
Lewin's theory of change effectively explains about organisational impact. There are
three steps which are included in the theory. That is Unfreezing, moving and refreezing. It make
the company to take better decisions for the change.
TASK 2
P 4- Various behaviours which are associated with the change and their influence on the
decision-making process of leaders.
There are many barriers which are faced by the companies in relation with the
implementation of change. These factors are to be effectively handled and managed. Not doing
this in the proper way can create many types of troubles for the Volkswagen and Toyota. That's
why it is important to remove all the barriers which are associated with the introduction of
change. The barriers which are mainly faced during the implementation are as follows:
 Competitors- There are many competitors of Volkswagen. The strategies and policies
which are used by the competitors have very deep impact on the decision-making process
of leaders (Lawrence, 2015). It makes the company to think very much about bringing the
implementation or not.
 Integration- Leaders hesitates while adopting the process for the implementation of
change. They understand that employees will be highly affected by this and it will
eventually affect their effectiveness and efficiency. That's why integration is treated as
the barrier in the process of change and decision-making process of leadership. It makes
difficult for the leaders to take decisions regarding the introduction of change in
Volkswagen.
 Change resistance- Change is the activity which brings high amount of resistance from
the employees. It is because they feel highly insecure. They think that the implementation
of change will affect their position in cited organisation. This make the workers to go
highly against the whole process. They want to work in the same manner in which they
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were working before. In accordance with this situation the leaders of organisation have to
take proper decision to make the employees understand about the reason for bringing the
change. Effective and efficient motivation technique can be used to remove the barrier of
resistance in relation with the workers.
 Complexity- Implementation of change brings many activities which are to be done for
the achievement of objectives and goals in the proper manner. It makes the process more
complex (Burke, 2017). For resolving the issue related to the complexity of activities
leaders will require many types of leadership skills. Leaders will also require high
knowledge to take the decision in proper manner. There are many risks which are
involved in the process of implementing change in the effective manner.
 Predicting future- It is difficult to predict the future on results of introducing change. It is
seen in the Volkswagen that situations never remains same they always change. If the
company will adopt the change in accordance with the current situation then it is not sure
that it will give them positive results only. It means that introducing change in
accordance with one situation may not work for the other one. Leaders have the duty to
analyse the whole situation by doing the proper research in their decision-making process
of change.
These are some barriers which comes in way of leadership decision-making process for
the adoption of some change. Volkswagen is planning to adopt the changes for making
diversified products for the customers (Alavi and Gill, 2017). The target which the organisation
wants to achieve will be effectively done with the help of most suited leadership style. Leaders
have the quality of using that style which will motivate all the workers to do efficient work.
Removing all the barriers will make cited business to gain various types of benefits and
advantage among their competitors like Toyota.
M 3-
Force filed analysis makes the company to know about the advantages as well as
disadvantages of the decision-making. There are many factors which influences the decision-
making. Such as business environment.
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TASK 3
P 5- Different leadership approaches to deal the change of organisation in the effective way.
There are many leadership styles or can approaches which can be used deal the change in
effective and efficient manner. Leaders are the persons who are working very hard for making
cited company to achieve all the goals and objectives which are associated with the
implementation of change. The different leadership approaches are described below:
 Creative leadership style- This is the approach of leadership when the leaders use their
creativeness to find the solution of issues and conflicts which arises. It makes them to use
creative strategies in better manner for Volkswagen. The relationship between the leaders
and employees will be increased by this. The organisational change will be effectively
implemented by this.
 Ambiguity leadership style- This the approach where the leader already has some idea or
experience to solve the issues in relation with the implementation of organisational
change. They are having the idea about what is going to be in next situation. This makes
them to take the decisions in effective and efficient manner.
 Situational leadership styles- It is the approach which is used by the leaders in accordance
with the situation (Iles, 2017). Decisions are made in relation with the current conditions.
In this first the whole situation is analysed and then some decision is taken. It is very
much effective for increasing the performance of employees and eventually the business.
Organisational change will be effectively brought by use of this style.
 Servant leadership style- It is the approach which is used by the leaders for the
development of workers. It makes the leaders to make the teams give them work which
will be effectively performed by them. In accordance with this leadership approach all the
ethics are effectively fulfilled by the company. In relation to this style leaders focus on
the achievement of all the goals and objectives. It will make the company achieve all the
objectives of organisational change.
 Open interaction approach- It is said communication is the most important activity which
makes better relationship between leaders and employees. In accordance with this
approach the leaders allows the workers to effectively communicate with them. It makes
the workers to interact and discuss their various problems and issues. The leaders will be
able to resolve all the problems and conflicts in effective and efficient manner. Problems
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which are associated with the organisational change will be properly soled by this
approach.
 Cross-cultural leadership style- This is the approach which is mostly used by many of the
organisations. It makes the leaders to take suggestions and advice from the employees for
making the decision. By doing this they are able involve all the employees in the
decision-making process associated with the process of change (12 Different Types of
Leadership Styles, 2017). It also makes the leaders about the skills and efficiencies of
various workers. This will make all the employees give their contribution in
organisational change.
 Transformational leadership approach- This is the approach which makes the leaders to
set the objectives and guide the employees for the effective achievement of it. It is used
to understand and find the various skills and efficiencies which are carried by the
workers. Knowledge of employees gets increased by the proper guidance of the leaders.
All the objectives which are set for the organisational change will be effectively and
efficiently achieved by this leadership approach.
M 4-
By the selection of effective leadership style or approach the company will be able to
achieve all the objectives and goals which are associated with the change. Many types of
advantages will be achieved by the business.
CONCLUSION
This report concludes about the various elements which are needed to be considered
while doing the change management. It is the process which had developed the Volkswagen and
Toyota. There are many external and internal forces which are influencing leadership decision-
making. Furthermore, various leadership approaches are described to handle the change in better
way.
REFERENCES
Books and Journals
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