ICON College, TNA67: Understanding and Leading Change Report Analysis

This report comprehensively examines the multifaceted aspects of change management within organizations, focusing on the impacts of change on organizational strategies and operations. The report begins with an introduction that defines change management and outlines the structure of the analysis, using Tesco plc as a primary case study. The first section, LO1, compares the impacts of change across various organizational types, highlighting internal and external drivers such as workplace demographics, financial management, employee morale, technology, globalization, and political influences, and it compares Tesco and Amazon. LO2 evaluates the influence of change drivers on team dynamics, leadership behaviors, and individual performance, and proposes strategies to mitigate negative impacts, including aligning changes with business goals, assessing impacts, and developing communication strategies. LO3 focuses on identifying barriers to change and their influence on leadership decision-making, utilizing force field analysis for a detailed evaluation. Finally, LO4 analyzes different leadership approaches in the context of Tesco and Amazon, assessing their effectiveness in managing change initiatives. The report concludes with a summary of key findings and recommendations for effective change management practices.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION......................................................................................................................................3
TASKS........................................................................................................................................................3
LO1.............................................................................................................................................................3
P1. Various types of organizations where there is impact of change on organizational
strategies and operations....................................................................................................................3
Comparison of firms where there is impact of change on organizational strategies and
operations..............................................................................................................................................5
M1.Assessment of various drivers for change with examples and types of organizational
change they have exaggerated...........................................................................................................6
LO2.............................................................................................................................................................7
P2. Ways by which external and internal drivers of change affects team, leadership and
individual behavior in an organization................................................................................................7
P3. Theories and models to minimize the negative impact of change recommendations..........8
M2. Various theories and models for critical evaluation of response to change in organization
...............................................................................................................................................................10
D1..........................................................................................................................................................10
LO 3..........................................................................................................................................................11
P4- Varied barriers for change and its influence on decision making of leadership..................11
M3- Utilize of force field analysis......................................................................................................12
D2- Critical evaluation of force field analysis use in context of company....................................14
LO 4..........................................................................................................................................................15
P5- Different approaches of leadership used to deal with change in context of TESCO and
Amazon................................................................................................................................................15
M4.........................................................................................................................................................17
D3- Effectiveness of leadership models or approaches................................................................17
CONCLUSION........................................................................................................................................18
REFERENCES........................................................................................................................................19

INTRODUCTION
Change in the business is inevitable. Changes happen so that business can able
to improve its position in the market. Change Management is referred as a process
through which changes can developed and executed in the business. The report is
based on Tesco plc. This company has adopted a change in its structure and
technology. Tesco plc is a general merchandise and groceries seller. It is one of the
largest retailers in the world. It is founded by Jack Cohen in the year 1919.
This report will cover a comparison of various organizational examples in which
there is influence of a change in an organization. Then, it will evaluate ways by which
external and internal drivers of change management have affected individual behavior,
team and leadership. Furthermore, it will determine change barriers that have
influenced of leadership on decision making. Moreover, study has applied a range of
leadership approaches in order to change initiative. Lastly brief summary is given.
TASKS
LO1
P1. Various types of organizations where there is impact of change on organizational
strategies and operations
Drivers of Change
Changes in the organization can be achieved through doing effective planning,
monitoring and implementation of strategy. These strategies are made to bring
something different in the business. By this the organization is able to achieve
competitive advantage. By doing change management the organization is able to
reduce the risk of new systems whether it should be acceptable or rejected by
enterprise.
Internal and External drivers of change

Internal drivers of change
Workplace demographics - Due to change in environment demographic of
organization gets affected. Organization sometimes realized that as their employees
and workforce getting order, the benefits also meds to change as they prefer salary
increments, fringe benefits etc. It can also be work arrangement like flexible working
hours.
Financial management - Finance is the main factor of a business. There is a direct
relationship between the money and business. Often finance is termed as life blood of
the business. In a company financial management take decisions about fund
distribution. These are the reasons why financial system has a powerful stand in internal
driving force.
Employee’s morale - The level of confidence employee’s bear while working directly
affects the production process, either positively or negatively. The employees with no
confidence and morale will make the organization suffer. The employees with high and
confident morale will make higher profits for the organization as they are getting the
feeling that they are important for the organization.
External drivers of change
Technology - Rapid changes in technology is also drives a change in organization. To
do work faster and to increase efficiency, technological change is needed. By bringing
new technology at the workplace there is savage of time as well as productivity of the
company also gets increased by adopting augmented technology.
Globalization - It is a process through which business is started operating on
international scale. Due to this the businesses are getting expanded. Companies are
also selling their products overseas. There is exchange of culture with one another.
Languages are also get exchanged from the country to country. This is one of the driver
of change.

Political influence - The political forces are directly bearing on the functioning of the
business. The political system and the behavior of that political system towards the
business organization may differ. The taxation system, political behaviour, legal
restrictions by government, etc, may vary from each political system or each governing
party.
Comparison of firms where there is impact of change on organizational strategies
and operations
Tesco PLC
It is a British groceries and general goods multinational company, the
headquarters of the company are in Welwyn Garden city (England). It has occupied
world's third largest retailer. this company was founded in 1919 by Jack Cohen. This
company changed its strategy of flat organizational structure to diversified
organizational structure.
Structural Change
Structural change is one of the changes in Tesco plc. Structural change involves
change in management hierarchy. Change in organization team, change in timing and
shifts of the organization etc. For example, one of the structural changes happens due
to merger and acquisitions (Kotir, Brown and Johnstone, 2017). Tesco have merged
with Booker group in order to do business expansion and to increase its goodwill. It is
important to manage change by giving training to the employees and by reassigning
their roles and responsibilities. Lenin's change model is being adopted by Tesco plc to
adopt these changes. This model works well for the acquisitions and mergers. Open
communication is necessary to cope up with such changes. As employees freely ask
their employees about the confusion or quires they will gain more clarity about the
change.
PEST analysis
Political factors Economical Factors

Political stability in UK
Retail sector is at boom growing
importance
Support of government
Efficient financial market
Inflation rate
Interest rate
Social Factors
Skilled workforce
High labor costs
People have leisure interest
Technological factors
Technological development by competitors
Value chain structure
Technological diffusion
Amazon
It is an American monthly multinational company which is now working on their
E-platform. This industry was founded in July 5 1994 by Jeff Bezos in Bellevue,
Washington, US having headquartered in Seattle, US. This company was not on digital
platform from its establishment but later it shifted to e-commerce.
Technological Change
Amazon has changed its technology. From a book seller, it has become a great online
retailer. This change is comes through globalization. International influence also leads
to exchange of technologies between the countries (Linesand Reddy Vardireddy, 2017).
Amazon has analysis that today world is all about E-Commerce. For example, Amazon
is using Brickwork technology. It has keep balance between online and physical stores.
People are running their business through online channels. Hence, customers are also
prefers to do online shopping. It saves the time as well as cost efficient. Amazon has
adopted a great strategy to earn profitability and now as per the today it has become a
great market leader.

M1.Assessment of various drivers for change with examples and types of organizational
change they have exaggerated.
 Globalization - It refers to the integration of one economy with world economy,
this is the most dependent factor of business as there are several differences
between national economies (Lozano, Nummert and Ceulemans, 2016). There
are several differences between economics across the world as in some
economy goods are cheaper and in another are expensive this creates a use
difference reach towards the goal and the final outcome.
Tesco PLC was in a need to change its organizational structure from flat to
hierarchy structure; this was because of globalization as there was need to diversify
the business to complete in foreign competition.
 Technological up-gradation - Mostly the changes are initiated by changes
in technology as to compete in the new era up-gradation of technology is
essential as to increase efficiency and effectiveness technology up-gradation
can be a key factor.
Amazon also had changed its platform due to various technological up-gradation
in modern world. The company shifted on digital platform to increase its are of operation
across the world (Andrew, 2017). Amazon was forced to shift on digital platform due to
up-gradation in the field of Technologies.
LO2
P2. Ways by which external and internal drivers of change affects team, leadership and
individual behavior in an organization.
Change in Tesco plc - Tesco plc has shifted its organization structure from flat to
hierarchal in the past years. This type of changes affects the functions of company. The
major issues by these changes can be resolved by solidifying it. Organizational chart
also gets changed due to structural change. New roles have been assign to existing
employees some of them also gets promoted.

Impact on leadership behavior - The Company has changed its leadership style from
democratic to transformational. As there is change in structure of the company from flat
to hierarchical. Hence, the leader has to guide its employees so that they are able to
work efficiently (Cleguer, Garrigue and Marsh, 2017). Leaders of the Tesco plc inspire
their follow mates so that they are able to accept the changes in firm. They execute the
change with commitment members of the team.
Impact on Team – They are adopting corporate culture. Through this they are able to
achieve their targets faster. They work in coordination manner and divide their tasks as
per their specialization. Through this they are able to implement successful change in
the organization. By this productivity of the company gets increased. As there is
change in structure hence the teams are dividing and groups are building to form
hierarchical structure.
Impact on individual - The individual gets affected when there is change in structure of
the company. Individual has to manage them to adjust those changes in the
organization. Some employees accept the change or some doesn't. It is hard to
convince individuals (Hayes, 2018). Thus, Managers of Tesco plc tells them about the
change in depth and linked it with organizational goals and objectives so that they are
able to give clarity to employees. Managers of the company also provide training to their
employees so that they can become well versed with new change.
P3. Theories and models to minimize the negative impact of change recommendations
Measures to minimize the negative impacts of change on organizational behavior -
 It defines the change and aligns that with the goals of business - This is the
most vital step which decides the ultimate results (Doppelt, 2017). This step
mainly comprises of the three that are strategically, financially, and ethically. Also
this is steps helps to assist you to determine the value of the change and its
consequences.
Tesco PLC must has to change the organizational structure for which it first has
to analyze the overall structure of the organization and study that structure in to deep

with all the required experiments and researches. This will be helpful in creating a
strong base while changing the one organization structure to another.
 Determine impacts and its affected - For this in organization must be knowing
that what will be its end result and what the firm wants to achieve. will be helpful
is framing a blueprint of the overall strategy or plan in the organization which will
be helpful in successful change of an organization from one structure to another.
Tesco PLC also has to analyze the negative as well as positive impacts of this
change on the organization as the negative changes can be too harmful corrupt
organization, this is also be beneficial to handle the future risk and uncertainty as
business is risky job (Cummings, Bridgman and Brown, 2016).
 Develop a communication strategy - Improve the organizational structure and
its first Two Steps will be highlighted by this step coma also by selling a
communication strategy for the group or team or individual that will helps them to
bring Unity in their work, this includes a timeline or overview of the language that
has to be used and the path of communication which has to be followed (Doppler
and Lauterburg, 2019).
The company must develop a strong communication strategy to enhance the
time limit to bring effectiveness in the organization. If there will a strong communication
strategy then there will be no waste of time.
 Gives the subordinates an effective training - Organization must be knowing
that they are going to get effective training, this training must includes all the type
of modules, micro-learning and other equipments to enhance or improve the
overall personality of the subordinates (Van der Voet and Vermeeren, 2017).
The company also has an important duty toward its employees and workers; it is the
duty of the superiors to groom the personality of the employees by giving them an
effective training which increases efficiency.
 Leadership - Various measures to improve also includes leadership, as
leadership is the main cause of the overall failure in an organization this measure

is basically focuses on strengthens the managers and leaders to enhance their
abilities, which can only be done by changing styles of the leadership (Altamony,
Al-Salti and Elyas, 2016).
Tesco PLC must improve its leaders by giving them brief knowledge about all the
styles of leadership, also the company can occasionally change the leadership style to
give the superiors the knowledge of all the types of leadership styles.
M2. Various theories and models for critical evaluation of response to change in
organization
. Theories and models to evaluate organizational change -
 Levin’s change management model - According to this theory lewin's
explained that the unfreeze structure of organization forces that unit for change
and makes them understand the importance and need of that change (Schmidt,
Groeneveld and Van de Walle, 2017). The change is the state where the real
visible transaction takes place and the last refreeze stages focuses on the impact
and negative impacts of that change. The Tesco PLC has also done the same as
from flat structure of organizations to hierarchy structure.
 McKinsey 7S Model - It mainly explains about the seven stages of change from
strategy to skills and this is one of the best theories which explains about all 7
strategies that are strategy, structure, systems, shared values, staff, skills and
style. One of the major benefit of this theory is that it helps in manager to study
the organization in deep. The Tesco PLC can also use this theory by making a
deep plan by studying the depths of the organization.
D1
From above discussion it has been summarized that TESCO and Amazon are
implementing change within their business operations and organizational structure. It
impact on company’s productivity and sales as well as consumers base. In order to plan
effectively for change both organizations follow suitable suggestions.
 TESCO management must determine the needs for change and then
communicate with workers to implement it.

 In context of Amazon, administration should apply change impact analysis in
effective manner. Leader and manager must conduct research at workplace and
overall business structure to analyze loopholes and then make plan for planning
change which is quite beneficial.
LO 3
P4- Varied barriers for change and its influence on decision making of leadership
Employee resistance to change-
It is one of the biggest and most influencing obstacles for change in TESCO
organizational structure (Rafferty and Jimmieson, 2017). Most people in workplace
resistance for implementing any kind of modification because it directly impact on their
day to day activities and performance level negatively. Workers do not show any
interest in any kind of work and do they accept any form of change which is not right or
suitable for business growth. It directly influences leadership judgment and put high
pressure on team leaders.
Lack of effective communication strategy-
Another barriers for change is ineffective communication strategy, it consider as
most common obstacle in context of TESCO organization structure change. While
planning for and implementing new structure when leaders do not have effective
communication strategy it creates restriction for change management (Al Ali and et.al.,
2019). In simple words, without generating awareness among existing and new
applicants for any further or current modifications leader was unable to gain trust of staff
and motivate them to provide effective contribution. It impact on present change
procedure and leadership decision making negatively. It require hard attempts and
appropriate action from leader and manager side.
Lack of focus-
Concentration means having greater affect on fewer things management cannot
execute their change plan in Aamzon Company without focus that directly impact on

final outcomes. It is another barrier that put negative influence while firm making
changes within their existing business practices and environment. While implementing
change organization face this issue that affect on further success along with existing
one as well. When leaders do not pay attention to every process completely, then the
percentage of success is reduced and only failure gets by company which influence on
brand reputation, growth, business position in market place etc.
Failure to include workers in change procedure-
Along with above barriers to change, it is also impact on business practices and
operations management. Without taking support from workers organization would not
be able to implement and plan for change. When management does not take opinions
from their employees and include them in change process, they cannot modify anything.
Influence of above barriers on leadership decision-
It can be said that that leadership decision making influence in TESCO and
Amazon Company in many ways or due to varied situations developed from change
barriers. For example, when employees cannot expect organization structure change in
TESCO it impact on leader decision for motivating individual and inspiring them to
except it. In context of this situation, leader must communicate with workers and try to
explain all of them about structure change benefits which are beneficial for them as well
as business growth more than other companies operating in same or other industry.
M3- Utilize of force field analysis
Here, force field analysis is used to identify different barriers for change in
TESCO Company and their impact on leadership decision making procedure.
Force field analysis is change management approach which is actually conceived
by Kurt Lewis for utilize in organizational situation. It shows and examines forces driving
action towards a aim and restraining things towards a aim that directly influence
decision taking of leaders or leadership.
Driving forces-