Leading Change in Organizations: A Sainsbury's Case Study

Desklib provides solved assignments and past papers to help students succeed.

Understanding and
leading change

Table of Contents
Introduction................................................................................................................. 1
Task 1......................................................................................................................... 2
1.1: Compare different organisational examples where there has been an impact
of change on an organisation’s strategy and operations.........................................2
Task 2......................................................................................................................... 5
P2: Evaluate the ways in which internal and external drivers of change affect
leadership, team and individual behaviours within an organisation.........................5
P3: Evaluate measures that can be taken to minimise negative impacts of change
on organisational behaviour....................................................................................7
Task 3....................................................................................................................... 11
P4: Explain different barriers for change and determine how they influence
leadership decision-making in a given organisational context...............................11
Task 4....................................................................................................................... 14
P5: Apply different leadership approaches to dealing with change in a range of
organisational contexts..........................................................................................14
Conclusion.................................................................................................................. 1
References..................................................................................................................1

Introduction
Changes are uncertain when forecasting the business operations in future. The
business environment is complex and changes are vital to identify so that suitable
strategies and approaches can be applied to get most of from the situations. For a
business leader, it becomes essential to be prepared for the change undertaking to
get the profitability over the constraints and challenges. The presented report will
discuss the ways in which changes may influence the business strategies and
operations. The potential drives of the change also will be determined to understand
how an organization can respond to the changes. The report will also identify the
influence of the changes on the business decisions. The report will discuss the
context of Sainsbury business which is a leading supermarket chain in United
Kingdom. The organization has share 16.9% in the national economy.
1

Task 1
1.1: Compare different organisational examples where there has been an impact of
change on an organisation’s strategy and operations
Organisations work in their own manner to survive or to lead the industry. However,
there are certain changes in the industry or pressures that affect the organisational
operations. Here in current period companies are facing difficulties due to some
political changes. Though, the company is taking it as positive opportunity for the
growth of business. So, drivers which are affecting can be used carefully for growth
in this period.
Change in business
Change can be of any type; it can be external or internal. It can be positive or
negative for a company, can make an organisation lead in industry or get destroyed
by the time. Many factors affect the workings of organisations (hillson and murray-
webster, 2017) which have to be recognised timely and be resolved. Change can be
structural where the whole working of organisation is changed or technological in
which ways of workings are changed. They can be minimised by proper planning
and understanding.
Kinds of change in businesses
1. Overall change in organisation affects the complete structure of operations. It
is one of the worst situations for a company as it requires total collaboration
or restructuring or demolition of a company.
2. Strategic change is required when companies do not examine their strategies
and plans periodically.
3. Unplanned change can be either internal or external and mostly
uncontrollable. Internal factors can be lack of resources and social equality.
External can be change in economy or any natural calamity.
Drivers
The organization has values of pest analysis to identify the potential external
changes those can impact the business or may drive the influence on the business.
The tool is significant to understand the business environment and to drive accuracy
in the decision making to achieve the competitive position.
2

Pest is a study which helps businesses to take better decisions and recreate new
energy in its operations (Rothwell, Stavros and Sullivan, 2015). Various external
factors affect business in conducting its workings. Political, economical, social and
technological are those pressures from outer environment which can adversely
impact the organisations.
Political
Governmental changes are always a threat to an organisation, change in interest
rates or tax rates affects the earnings of an organisation. Increase in globalisation
has been posing both as an opportunity and threat to Sainsbury’s. Corporation tax
rate is 19% at present continuing from April 2017, but it would be a relief from 2020
April by 1% decrease as per legislation (Gov UK, 2019).
Economic
Rise in transportation costs and fuel is big problem for Sainsbury’s for their supply
chain. Change in interest rates may lead to credit crunch, leading to decline in sales
and purchases. Further, it might face lesser surplus and won’t be able to pay to their
employees.
Social
To keep up with consumers is very beneficial for company to know their preferences
and tastes (Bin Taher, Krotov and Silva, 2015.). Online facilities to them and benefits
to permanent consumers is required to get them satisfies in such a competitive
environment.
Legal
Workmen policies, legal wage system bounds the company to pay national minimum
wage to employees. Selling alcohol to minors or failing to do so can be difficult to be
faced by company.
3

How to deal with impact on dynamics
Company’s dynamics are impacted through changes in environment, and specifically
the political change as per running situation of the industry. Organisation can
manage the problem it has been facing through this period by making fresh
strategies and plans.
1. Change in corporate tax rate has made a small amount of loss to company
but coming year will be beneficial to business as the rate will go down to 18%.
2. Company should make strategies to make a better platform for the employees
to get motivated to achieve vision and goals (Anderson, 2016).
3. Company should come up with new offers by giving free gifts or discounts on
products with higher margins. It will benefit the organisation without having
low profit on sales.
4. Change impact analysis can be done for identifying influences unpleasant
effect to the business and how they can be modified and resolved.
Change impact analysis
Change impact analysis is measuring potential consequences due to any change in
operations and finding out what is required to face it. Analysis has three types of
techniques:
Trace
Under this technique the managers identifies the changes by conducting tests to
identify the requirements and scope of change in the organisation.
Dependency
Determining changes in linkages such as, modules, logistics and other variable costs
or products (burke, 2017). It is conducted in deep level than tracing.
Experimental
Methods can be run to identify structure running in organisation and relationships
with employees and customers.
4

Task 2
P2: Evaluate the ways in which internal and external drivers of change affect
leadership, team and individual behaviours within an organisation
Change and impact on organisational behaviour
Following are some of the major drives those can impact the business leadership,
team and individual for the performance and quality. The individual’s behaviour is
associated with the internal and external factors and it is required to consider
identifying the organizational capabilities for the change management.
Psychological impact on people
If there is any change in organisational structure or technologies it directly affects the
employees and workers in the organisation. They are used to work procedures and
methods and usually it gives negative impact on their behaviour. But, if they are
patiently convinced and explained that the change is for their own benefit it would be
easy to accept. Culture heavily influence the behaviour, managers should
communicate directly or indirectly and make them clear about values and visions
(alvesson and sveningsson, 2015). Customers are also affected by the change
indirectly as the services delivered to them can be of lower quality. For example,
Sainsbury’s has gone under the changes in the structure and operations over them
time to retain the operations and to lead with high profitability. The organizational
leaders have motivated the resources and engaged them through psychological
influence on their motivation to generate high performance and quality at workplace.
Impact on the team behaviour
Reward systems can be used to motivate employees, to make the best out of
potential workers. People are attracted to benefits they receive in return to their
work. Proper communication system is beneficial for effective mechanism between
managers and workers. Periodically tests should be conducted which helps in
decision making. It also helps to determine future risks and thus lowering them.
Analysis in external environment should be conducted like pest to keep in touch with
outer environment. Companies have different strategies and policies; organisation is
suggested to conducted proper analysis to manage those changes arisen due to
such strategies used by competitors.
5

Sainsbury’s team members have high influence of the internal management, career
progression and development programs on their satisfaction whereas the team
needs continuous support and guidance to achieve the business goals effectively.
The changes in the structure and technological tools are also required to integrate
into the functions through training and development because it impacts the
motivation and performance of the team. The outcomes and alignment of the
expectations in the operations influence the team behaviour for the professionals
and positive attitude toward the workplace.
Recognising drivers of change
Organisational behaviour is affected by both internal factors and external factors
which have to be carefully controlled by mangers of organisation (canterino, cirella
and shani, 2018). For identifying managing external factors pest has been
conducted. To control effects of internal factors swot analysis is done by any
business unit to identifying the pressures before it affects.
Swot is used by any manager to analyse its organisations’ strengths, weaknesses,
opportunities and threats. Sainsbury’s swot is presented below:
Strengths
Sainsbury’s serves nearly 16 percent of market share due to it’s wide range of
products. This makes convenient for consumers for purchasing their necessities and
requirements at one place.
Weaknesses
Company is only weak at one thing that it has been already busy with present plans
and not having any additional room. Due to huge market of grocery, consumers can
be easily shifted to another supermarket for shopping.
Opportunities
Increase in demand of healthy food has brought a great opportunity for sainsbury’s
as it carries wide range of healthy foods. People today prefer low fat food items
because of increase in cardio diseases (Alavi and gill, 2017).
6

Threats
Current GDP is rigid at present at 1.3 %, which can impact sales of Sainsbury’s. In
order to face the situation it will have to reduce their mark prices.
Identifying most significant drivers of change in given scenario
The most significant driver is the companies high range of healthy foods which has
given an opportunity to company. Due to high range of demand in fat free foods and
the 2% fat milk introduced by Sainsbury’s got a lot of attention to the supermarket
chain. Further, company has wide range of necessary goods and luxury goods which
helps consumers to shop at one place (Hughes, 2016.).
Another change in corporate tax rate has made company earn benefits, like it was 20
% in 2016 and now it has been decreased to 19%. However, consistent rate has not
brought a lot of benefit to the company. Surely, it will be a great benefit in 2020 by
the new rate announced by government. Consistent GDP is also a lose point for the
organisation.
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
How to respond to change
It is possible that the changes can lead the loss or disturbance in the business
operations and therefore, it is essential to respond to the changes effectively.
Following are some of the major approaches and measures those can be considered
to minimize the negative impacts of the changes.
Change must be evidently clear and aligned to business goals.
Many organisations do not define the change clearly to its people. Thus, many times
it gives negative impact on organisational operations. So, first identify then align with
vision.
Estimating the amount of effect and those affected.
Once the change is determined, ask what the goal is and what is wished to be
achieved. Further, see through each unit and how it cascade through the structure of
business.
7

Proper communication system
It means to the communication which can be most beneficial should be applied on
board (Lawrence, 2015). It must include how change will be communicated and
plans to get potential benefits out of them.
Provide training and measure change process.
According to change proper and effective training should be given to employees.
After implementing measures, impact of change and new policies being
implemented, check whether they are correctly followed or not.
How to make change process effective and efficient
To bring new process into most effective and efficient manner Burke-Litwen model is
been conducted.
This model defines and establishes a cause and effect relation. It includes different
models that estimate and assume change in organisation. Moreover, this model
helps in better understanding of an organisation (Alvesson and Sveningsson, 2015).
Each and every element is connected to each other as shown in picture below.
8

Figure 1: Burke-Litwin Change Model
The model has following twelve components those are interconnected to ensure that
the change process is simple and effective to bring the positive influence on the
business. The components support the business structure and decisions making to
reduce the negative influence and to meet the positive changes across the functions.
1. External environment.
As per this model it is the external environment that influences change.
Legislation, policies, consumers or competitors all of them has major impact
on business.
2. Vision, strategy and goals.
It must be ensured that the organisational structure is prepared in such a way
that goals can be realised.
3. Leadership
Person who guides is always responsible for managing the workforce in
proper direction (bin taher, krotov and silva, 2015). It helps in developing clear
vision in minds of employees.
4. Projection values
Organisation must have explicit and implicit regulations, rules, codes,
principles which help in influencing organisational behaviour.
5. Structure
Proper hierarchical structure should be present in the organisation to avoid
any chaos. Formal and informal communication system both should be
present which is required for better control.
6. System
The model includes procedures followed and policies applied in the
organisation. It supports employees and manages their activities.
7. Management practice
Those are the managers who are responsible for implementation of strategies
(hillson and murray-webster, 2017). How well they are performing and are
they able to manage their responsibilities is important to be identified.
8. Working climate
9

It is overall the working condition of a company, are employees satisfied with
their work or work culture. The way team members communicate with each
other is an important thing.
9. Tasks and skills
Sometimes a person does not carry skills which are for the job the individual
is given. It is necessary to identify the expertise and skill of a person for a
specific job.
10. needs and values of an individual
Workers who work have some needs and expectations from the work they do.
Their role in the business and the opinion they carry about their work and task
expansion.
11. individual and general performance
This includes performances of both the department and employees working in
the unit. It can be measured by productivity levels, quality of work or customer
satisfaction.
12. motivational level
Inspiring and motivating the team workers regularlarly so that they are willing
to work more effectively and efficiently.
10