Managing Organizational Change: Strategies and Models

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Understanding and leading change
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Table of Contents
Introduction:....................................................................................................................................3
Task 1: Managing the Impact of Change.........................................................................................4
Part A: Responding to Change....................................................................................................4
a) Assess the different drivers for change using a range of real-world examples to support
your answer. Using the organizations, you have included for your examples, compare how
each of the organizations has responded to the drivers for change, considering similarities
and differences in each organization's approach to dealing with change................................4
Part B: The Impact of Change.....................................................................................................6
a) Evaluate the ways in which the internal and external drivers of change may affect the
leadership behaviour and the behaviour of the teams and individuals....................................6
b) Once you have considered the potential impacts of change you must evaluate measures
that can be taken to minimize the negative impacts of change on organizational behaviour..7
c) You should aim to apply appropriate theories and models in order to critically evaluate
organizational response to change...........................................................................................8
Conclusion and recommendation:.............................................................................................11
Task 2: Leadership Decision Making............................................................................................12
a) Force field analysis for understanding the resisting and driving forces of change:...........12
b) Different barriers resisting the changes:.............................................................................14
c) Influence of driving and resisting forces on decision making of leadership:.....................15
d) The use of Force Field Analysis to achieve the goal of the Kitson and Company:............16
Task 3: Leading Change................................................................................................................17
Conclusion:....................................................................................................................................22
References:....................................................................................................................................23
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Introduction:
The report is based on the study of the changes in the organization through the various drivers so
that get the proper understanding and leading in the business perspective. The report provides a
comparison between the responses of each organization towards the changes of the drivers.
There are various similarities and differences in the organization's approaches which is helpful to
deal with the changes that give impact on the organization. On the other hand, the report gives
the knowledge that there are internal and external drivers which make changes and give an
impact on the leadership behaviour and their team individuals. There are various types of
theories and models which play an essential role to identify the responses of change in the
organization. The report based on the study of the valid justified planning for the changes that
give impact on the analysis. There are some barriers which fail to make changes in the
organization and provides the learning that how they make an influence on the leadership
decision making the process. There is the proper use of the force field analysis which is helpful
to meet the objectives of the organization. Alternatively, the report provides a presentation based
on the leadership approaches and their changes in the range of the organization. This also
explains the various models and frameworks which is supportive in terms of the changes in the
organization.
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Task 1: Managing the Impact of Change
Part A: Responding to Change
a) Assess the different drivers for change using a range of real-world examples to
support your answer. Using the organizations, you have included for your examples,
compare how each of the organizations has responded to the drivers for change,
considering similarities and differences in each organization's approach to dealing with
change.
The report provides the introduction of the Checkout.com Company which is UK established
organization that continuously succeed in the competitive market through their quality service.
The organization is based on the process of the billion payment done by the customers over the
past six years. The revenue and profit of the company continuously grow in each year through
their payment service providing service and flexibility in the world-class merchant support in the
global e-commerce process.
Types of organizational changes: There is a description of the various changes in the below
section:
 Transformational change: This change explains the environmental requirement and
cultural trends which is the mandatory requirement of the business so that attain the objectives in
the proper way (Espedal, 2017). For example, the Checkout.com Company planned to improvise
the digital technology in the system so that it is necessary to improvise the service transforming
in the business.
 Personnel change: The personnel changes are those when the company hire a huge
number of employees in the organization and fit each employee in their role. This is a major task
to handle the employee’s population in an effective way. For example, the Checkout.com
Company planned to hire the bulked number of employees because of their heavy workload so it
is necessary to manage their work accordingly.
 Organizational-wide change: There is a wide range of changes which make the large
scale of transformation that give impact on the company which affect the company in the
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negative and positive way. This change makes the change in the nature of the company and
develops the corporate business according to the stability.
 Unplanned change: The unplanned changes are better from the planned changes which
make the demographic composition of a business and make equality in the society accordingly.
Government regulation plays and crucial role in convincing the organization to make changes in
an effective way (Nelson-Brantley, et. al., 2018). For example, the government produce the rule
that the internet tax is charged in the process of internet payment so that it is necessary for the
Checkout.com Company to charge that charges from the customers.
 Remedial change: This change explains that the poor performance of the Checkout.com
Company reduces by the aid of this change which directly impacts on the financial situation of
the company. For example, the environment of the business is not good and suitable for the
employees than it fails to attain the objectives of the business. So, it is necessary to provide the
employee welfare and safety services to the employees which are helpful to satisfy the
requirements of the employees which is helpful to increase the efficiency.
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Part B: The Impact of Change
a) Evaluate the ways in which the internal and external drivers of change may affect
the leadership behaviour and the behaviour of the teams and individuals.
Drivers of change: There are two types of drivers such as internal and external drivers which
give impact on the change of the organization which is mention underneath:
An internal factor of change: Internal drivers which make the changes in the internal
environment of the business and these factors also invented in the internal area of the
organization which is mention underneath:
 Mission and vision: The leaders of the Checkout.com make the changes in their vision
because want to enhance the profitability which makes the changes in the working style of the
employees (Al-Haddad and Kotnour, 2015).
 Principle: The principle invented by the owner of the Checkout.com Company so that
make the changes in the shape of the organization so that reduce the negative environment and
improvise the customer satisfaction factor.
 Organizational culture: The culture of the organization plays an essential role which
gives an impact on the employees such as when the organization get changes their culture then it
gives an impact on the behaviour of the employees.
 Leadership: This is the best way to give their employees a proper direction so that it
provides a better outcome at the end and it makes the changes in the outcome of the business.
External factor of change: There are various types of external drivers which make the changes
in the internal environment of the business and it's come from the outside of the environment that
explained through the PEST Analysis which mention underneath:
 Political factor: The political influence such as the ideology of the parties, government
decisions, political policies and decision which give direct impact on the organization so that it is
necessary for the owner of the Checkout.com must change in the rules and regulation of the
company.
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 Economic factor: The economy of the world and business financial condition have an
intimate relationship because the financial fluctuation such as inflation and deflation is playing a
major role in the changes of the organization (Valencia, et. al., 2018). For example, the company
reduce the rate of internet charges in the payment process in the deflation situation so that
company get the minimum profit in the market down situation.
 Social factor: The Company must process their local and national society so that get the
profit in their effective way. For example, the company provides the feature of the online
payment to the local population so that they can easily make the payment of their online
purchasing.
 Technological factor: The technology is the prior and required element in the today
competitive world because there is the various organization that take help from the technical
giant companies so that improvise their working criteria (Wang and Zheng, 2016). So, it is
necessary to make the improvisation in the Checkout.com Company through the effective
technology which automatically brings higher profitability in the organization.
b) Once you have considered the potential impacts of change you must evaluate
measures that can be taken to minimize the negative impacts of change on organizational
behaviour.
There are some points which explain that there is some potential impact which reduces the
negative impact on the organization which is mention in the underneath:
 The organizational culture change also makes the changes in each aspect of the business
which also affect the behaviour of the employees in the perspective of the business.
 The Checkout.com Company provides the proper service of the payment to the customers
so that it is compulsory to make the proper changes in the form of service.
 The positive impact increases the number of customers to maintain goodwill in the
competitive market (Myers, et. al., 2017).
 Innovative changes in the organization through the drivers to build the proper position in
the market to achieve the desired goals of the company.
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 These changes need the proper strategic planning in the organization which is possible
when the environment of the business is secure as per the employees.
 The company take the feedback from the employees to get rid of the issues.
 There are psychological changes which give an impact on the people and their impact on
the team dynamics to manage the tasks of the people.
 There is Schein's organizational culture model, situational resistance and self-efficacy
model which need to be implemented in the organization to determine the barriers in changes of
the organization (Kjellstrom, et. al., 2016).
 It is necessary to evaluate the potential changes which reduce the negative impact on
organizational behaviour.
c) You should aim to apply appropriate theories and models in order to critically
evaluate organizational response to change.
There is a various model of the organizational change which differs or similar to each other and
this is mention underneath:
Mckinsey 7S Model: This model explained by the particular consultant who worked in the
Mckinsey & Company in the year 1980 and provides the learning of the seven steps to make
changes in the organization which is mention underneath:
 Strategy: The strategy is invented in the organization so that attain the desired objectives
which make the changes in the profitability factor of the company. The effective strategy is also
helpful to improvise the efficiency of the employees in an effective way.
 Systems: This stage provides the learning that it is necessary to accomplish each task of
the organization in the proper way and step by step format so that get a better outcome at the end
(Ravanfar, 2015).
 Structure: The structure of the organization must be processed in the top to bottom so
that employees get the orders and instructions in the proper way to understand the objectives of
the company.
 Skills: The skills of the employees must be in improvised so that make the positive
changes in the organization and customers get satisfied with their effective skills.
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 Staff: The staff understand the workforces and understand the criteria of the business
which automatically increase their capabilities in an effective way.
 Shared values: This provides the learning that the employees understand the value of the
organization which is helpful in the running of the business which provides the proper smoothing
in the work segregation (Channon and Caldart, 2015).
 Style: The proper leadership style must be implemented by the leaders and managers so
that employees working with their full efforts to get a higher profit in the perspective of
organizational success.
Kotter’s change management theory: This theory invented by the John P. Kotter which
explain that change management theory is elaborate in the eight stages in the effective way
which is mention in the below section:
 Build the team: This step explains that this is necessary to hire the right people in the
team and it should be essential that their skills need to be appropriate according to the business.
 Enhance urgency: This step explains the urgency in the motivation of the employees
need to happen in the initial basis so that employees move forward to their objectives in the
frequent way to attain the desired goals in the proper manner.
 Focused on short term goal: The Checkout.com Company create short term goals for
the employees so that it is easy for the employees to attain it on a frequent basis and it is better to
understand (Teixeira, et. al., 2017).
 Do not give up: This step explains that the employees must understand the success of the
company in the proper way and encourage their employees to do not give up on a hard situation
or changing environment.
 Communication: The communication between the employees need to be clear and
understanding so that achieve the target in an effective way.
 Get the correct vision: The Company provides an accurate vision to the employees so
that they put creative efforts in the work and make the changes in the work accordingly.
 Empower action: This step provides the learning that it is necessary to make the support
to the employees and reduce the issues which affect the system (Cummings, et. al., 2016).
 Changes incorporate: The changes need to be effective and it is related to the culture of
the workplace so it is reinforced in the proper manner.
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Conclusion and recommendation:
The Part A explained that it is necessary to make the changes according to the model of the
Mckinsey 7S which provides the learning that the changes in the system must be in the relation
to the employees so that get the outcome according to the desired goals (Hornstein, 2015). It is
necessary that Checkout.com Company must create the proper planning so that employees
understand the changes accordingly and improvise their work quality in the proper way.
The Checkout.com Company must plan to hire the bulked number of employees because of their
heavy workload so it is necessary to manage their work accordingly. The company properly
convey the changes to the employees so that they are mentally prepared for the changes and get
the result in a positive way.
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Task 2: Leadership Decision Making
The decision making of leadership plays an important role in the success of an organization. The
decision taken by the management creates some changes within the organization and can change
the work culture and environment of the organization. But some people can’t make a tough
decision as they think a lot about its effects and some also have the fear of changes. There are a
lot of reasons which resist and cause changes within an organization. So sometimes it is difficult
to make the decision which causes a lot of changes and these are the challenging decision for
anyone. So in the below section, a case study of an organization Kitson and Company is
discussed which will help to understand the reasons causes changes and forces which resists
changes and what are the barriers that resist these changes. The study will also show the
influence of these resisting and driving forces of changes on the decision making of the
management. The study will help to understand the reasons that cause changes and their effect on
the leadership decision making.
a) Force field analysis for understanding the resisting and driving forces of change:
Force Field Analysis:
The tool used for understanding the resisting and driving forces is Force filed analysis, which
was developed in the 1940s by Kurt Lewin and in starting he used this tool in a social
psychologist. But now the use of this tool has increased in various fields as in business as it helps
in making the decisions. Sometimes the situations become complicated where the driving forces
or the force which creates changes becomes equal to the forces which restrict or oppose the
changes, and this was the idea behind the development of Force Field analysis. And for creating
the changes the creating forces of changes should be greater than restricting forces of changes.
The case study shows the analysis of the organization Kitson and Company by applying the force
field analysis. It is a manufacturing industry and the aim or the purpose was to change the
outdated equipment for manufacturing and change it with the new equipment. So here; the
reasons which force this change and the reasons which restrict these changes are discussed.
So the analysis includes the following steps:
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