Leading and Managing Organizational Change at Tesco Plc

This report provides a detailed analysis of leading and managing change within Tesco Plc, a British multinational retailer. It explores the impact of change on the organization's strategy and operations, comparing strategies and operations. The report evaluates the influence of change drivers on organizational behavior, examining internal and external factors like mission, leadership, communication, political, social, and technological influences. It identifies measures to minimize the negative impacts of change, including defining change, determining impacts, developing communication strategies, providing training, implementing support structures, and measuring the change process. The report also discusses barriers to change and their influence on leadership decision-making, alongside different leadership approaches to dealing with change in various organizational contexts. The assignment concludes by summarizing key findings and providing insights into effective change management practices within the retail sector.

Understanding and
Leading Change

Table of Contents
INTROUCTION..............................................................................................................................3
TASK 1............................................................................................................................................3
P1 Comparison of ways which impacts on an organization’s strategy and operations .............3
TASK 2............................................................................................................................................5
P2 Evaluate the influences that drivers of change have on organization behavior.....................5
P3: Measures that can be takes to minimize negative impact of change on organization
behavior.......................................................................................................................................7
P4: Different barriers for change and determination of how they influence leadership decision
making in organization ...............................................................................................................8
P5 Different leadership approaches to dealing with change in a range of organizational
contacts......................................................................................................................................11
CONCLUSION..............................................................................................................................13

INTROUCTION
Organizational changes refer to transformation in organization structure, models,
products produced by company, etc. In this modern era, it is important for organization to change
its structure and produce innovative products to gain competitive advantage of market place
(Salmela, Eriksson and Fagerström, 2012). It is important for company to constitute different
strategies and operations to execute their business. This assignment is equipped in context of
Tesco Plc, which is British multinational company. It is a UK based retailer company which
deals in groceries and general merchandise. Operations and functions of company can also be
affected by changes in organizational structure. On the other hand, it is important for company to
bring changes according to current trends to stay competitive at market place. Some changes in
organizational behavior and impacts on business strategies and operations are also been
discussed under this report. Along with this, there are some barriers to change which influence
leadership decision making and a range of leadership approaches to change initiatives are also
stated under this project.
TASK 1
P1 Comparison of ways which impacts on an organization’s strategy and operations
In every organization, there are various ways which company considers operating their
activities and functions. It is important for business enterprise to use different and tactical
strategies to carry out their business operations. It is also important for managers of company to
understand comparison between two sides of business which are strategy and operational. These
both aspects impacts on activities and functions of organization widely (Wagner, 2016). There is
always a need for change in any organization. It outlines the various factors which contributed
the need for change in Tesco and Sainsbury. There are many modifications that the company
should make strategies, policies, rules and regulations. Tesco pl c and sainsbury are greatly
affected by the drivers of change
 Technology and development- With the advancement in technology consumers demand
started increasing which puts pressure on the companies to start production accordingly.
With the increase in the digital technology it has become significant to fulfill customer
demand accordingly. Tesco should increase its sales by improving the groceries store to

be in touch with online. It should increase its sales by providing its groceries online at
home so that it can reach customers at a long run.
 Competitors- In today's global environment organization should analyses its competitors
strategy in order to be ahead of its competitors (Wagner, 2016). Every move of the
customer shouls be properly analysis and with the competitors move. Tesco competitors
is sainsbury which is a supermarket chain of groceries related product. Tesco and
sainsbury should analyse their moves and formulates strategies accordingly.
 Pricing Considerations- Change in pricing policy also affects the demand of that
particular products. Tesco and sainsbury which greatly deals in groceries related products
which is in high consumption by the customers leads to the change in their strategy
formulation (Blewitt, 2012). Tesco should create appropriate strategies of providing
discounts or should enter a different market chain in order to enhance the sales of the
company . On the other hand sainsbury should also adopt certain strategies to remain
stable in the market.
 Marketing Innovation- it is described to as the new ways of marketing the products. Since
technology is changing there is rapidly new ways of marketing products. Tesco and
sainsbury should compete its brands to be at the top. They should first analyze the
customers needs accordingly then start manufacturing its products.
 Change in the interest of the retailers- Earlier retailers were only interested in supplying
their products to their own nation. Nowadays they started taking interest in private la
belled brands which helps them to experience a large share of profits. Tesco and
sainsbury should start go for advertising technology which helps them for higher profit
margins.
These all strategies if adopted by the tesco and sainsbury would help them to sustain in ever
changing environment.

TASK 2
P2 Evaluate the influences that drivers of change have on organization behavior
Organization behavior refers to the way in which an individual interacts with other or
behaves in particular situations. It is an important aspect for all companies which can affect their
whole organization on a large scale. Organizational factors also influences by behaviors of
employees. Positive behavior of workers will lead company to accomplish their goals and
objectives in allotted time frame. On the other hand, negative factors will reduce reputation and
image of company among consumers at market place (Brown, 2012). In context of Tesco Plc,
organization behavior also affects company internally and externally. These factors can also
affect leadership, team and individual behaviors of company. So it is important for company to
have positive behavior of employees which helps them to reach their targets in allotted time
frame. In this context, there are some internal or external factors which influence organization
behavior which are as follows:
Internal Factors:
 Mission: For a successful business enterprise, it is important for company to have clear
mission and objectives. It is also essential for manager of companies to have proper
knowledge of their mission. In these leaders plays an essential role in accomplishing task
and objectives in allotted time frame. They should provide proper training to their
employees, so that they can easily deal with task or projects. They should also divide
individuals in teams to reach their goals. In Tesco Plc, it is also important for managers to
look forward about their aims and missions. They should motivate and encourages
employees or teams to perform well and complete their assigned task. If managers are not
aware and have knowledge about their missions and they will not be able to achieve their
desired ambitions.
 Leadership: Another factor which can affect organization behavior as a whole is
leadership. Company should have great leaders which inspires and directs employees to
perform well in their tasks. They should provide proper training sessions to their
employees and also guides them about the project. It is important for leaders to have
proper communication skills and understanding which helps them to maintain
coordination or relationship with workers. In context of Tesco Plc, leadership also plays

an important role in success of organization. It is essential for company to have good
skills and knowledge so that they can manage all functions and activities in a systematic
and effective manner.
 Communications: It is another important internal factor which affects leadership, team
and behavior of company. Successful organization increase robust on communication
practices which results in improved results and better outcomes. In this, leaders of
company should have proper communication skills so that they can communicate with
employees freely. This also helps them to know mindset of their employees. The leaders
of Tesco Plc, should also have proper communication skills so that they can provide all
information to their employees. This also helps workers to share their issues with them
without any hesitation. Improper communication will negatively affect company and
their employees. Thus, proper communication practices of leaders are important for
company to achieve goals and objectives.
External Factors:
 Political: Organizations are also affected by some political factors which include
government rules and regulations, discriminations, employment laws etc. These factors
can affect employee’s leadership and organization behavior (Carr and et. al., 2012). In
order to overcome from these factors, it is important for company to follow all rules and
regulations. There should be no discrimination between employees regarding their
religion, gender, caste etc. In Tesco Plc, company should follow all policies and also
provide equal opportunity to all staff members. This helps them to reduce gaps between
employees and retain them for long period.
 Social: This factor includes economic conditions such as fluctuation in rates, annual
income, beliefs, customs, taste and preferences. It is important for company to focus on
social factors and produce products according to them. This also assists Tesco Plc, to
manufacture products according to consumer demand.
 Technological: Another factor which influences organization behavior and team is
technology the leaders of company should guide and provide proper knowledge about
new technology to its workers. This helps them to easily perform their activities and

reach their targets in assigned time. In Tesco Plc, company should use advance
technology to create products with innovative features. This will allure more consumers
towards them.
P3: Measures that can be takes to minimize negative impact of change on organization behavior
In order to gain competitive advantage at market place it is important for company to
minimize negative factors which impact organization behavior. In this, the manager of Tesco Plc,
should also focus on measure which helps them to reduce negative impact on organization
behavior. Some measures which are considered by company are as follows:
 Clearly define the change and align it to business goals: This is the first and
important measure which company should consider minimizing negative impact
of change on organization behavior (Bin Taher, Krotov and Silva, 2015). It is
important for company to clearly define the change and business goals which
helps them to reach their targets. In Tesco Plc, the leader of company should also
consider change and align all business activities effectively. This will assist them
to carry out their business in right direction strategically, financially.
 Determine impacts and those affected: This is the measure after defining the
change and goals of business. This will help them to determine changes which
impact on different level of organization. To review the effect of each business
activities, it is important for leader of company to provide proper training and
support to employees to mitigate impacts.
 Develop a communication strategy: In this, it is important for employees of
company to develop proper communication strategies to change. This will help
them to deal and face all situations and issues related to task or projects. In Tesco
Plc, company should develop a communication tactic which helps them to
minimize negative impact on organization behavior. Proper communication will
help workers to maintain coordination between them.
 Provide effective training: This is also an important measure which helps
business enterprise to minimize negative impact on organization behavior.
Company should provide effective training to its staff members so that they can

carry out their activities and operations in a systematic manner (Daft and Marcic,
2016). Training includes a suite of micro-learning online modules, or a blended
learning approach, face-to-face training sessions or on-the-job coaching and
mentoring. In context of Tesco Plc, appropriate training to employees will also
enhance sales and profitability margins of company. Along with this, it also help
organization to gain competitive advantage at market place.
 Implement a support structure: Providing proper support structure to staff
members of company will assist them to adjust change. This also helps them to
build technical skills and behaviors to achieve their goals. Improper structure and
changes wil result in redundancies. So it is also important for Tesco Plc , to
implement and provide suitable support structure to employees. By this they can
easily reach their targets.
 Measure the change process: This is the last measure to minimize negative
impact to change on organization behavior. Company should measure the changes
in process which assist them to build more opportunities for future. In addition to
this, Tesco Plc, should also evaluate changes in their management plan (Jones and
Harris, 2014). This will aid company to determine its effectiveness and better
outcome will come.
Thus, above mentioned measures are important for company to consider to refund
negative impact on change of organization behavior. By this they can easily carry out all
activities and functions in an effective manner.
P4: Different barriers for change and determination of how they influence leadership decision
making in organization
In organization, there are various barriers of change which affect leadership decision
making. Leader plays an important role in company to achieve goals and targets. In this, barriers
for change create gaps between leaders and employees which affect organization operations. So
it is important for business enterprise to overcome from these barriers to attain objectives in
assigned time. Further, in Tesco Plc, there are also some barriers which affect leadership
decision making which are as follows:

 Lack of Employee Involvement: The first and important barrier which can influence
leadership decision making in organization. Employees are an important part of company
as with their efforts company can easily achieve their goals (Hintz and Bahia, 2013). But,
it is important for employee engagement in all operations and activities of business
enterprise. For a successful firm it is essential to involve employees in all changes
occurred in organization. Leader should introduce with all changes in process to
employees, so that they can easily deal with them. It is important for a leader to involve
staff members in their decision making and changing process to reach their goals. Tesco
Plc, also suffers some barriers of change due to lack employee involvement. So, to
overcome from these barriers it is important for them to make their employees engage in
all processes. They should also give proper training to them to get better results.
 Lack of Effective Communication Strategy: Another barrier which can influence
leadership decision making is communication strategy. Appropriate communication skills
are important for all leaders to provide information to their workers (Lawrence, 2015).
Effective skills of communication will help leaders to introduce changes to their staff
members. In respect of Tesco Plc, it is also essential for leaders to communication
properly and in affective manner with their employees. This will assist them to introduce
strategies and announce information regarding resistance to change. Lack of
communication strategy will affect company as well as leadership decisions.
The leader of Tesco Plc, should apply Force Field Analysis to analyze the driving and resisting
forces and decision making which are as follows:
Force Field Analysis
Force field analysis is an important theory which company considers understanding
changes in process. This theory is given by Kurt Lewin’s which is helpful for business enterprise
to analyze driving and resisting forces.
 Driving forces: This is a first element of force field analysis which is used to analyze
situation in particular direction. This theory helps company to their goal and objective.
There are some positive forces that facilitate change. It includes change in market,
competitions, new technology etc. These all are the elements of driving forces which

influence decision making of company. In Tesco Plc, these factors can also influence
change and decision making of organization.
 Changing markets: Changing in market trends can also influence change and
decision making in business enterprise. It is essential for company to except all
challenges and also change their process according to market trends they should
produce goods and services according to their customers demand. Change in market
can also affect decision making and process of Tesco Plc. So it is important for
company to analyze current trends in order to achieve their goals.
 New technology: Advance technology used by company will aid to give better
outcomes. Company should use advance technology to make innovative products for
their company (Mukherjee and et. al., 2012). This will help them to attract more
customers towards them. The leaders of Tesco Plc, should also make use of new
technology to allure more consumers towards them. By this company can easily attain
their goals and increase sales and profitability margins.
 Competition: Another element which can affect business objectives and goals is
competition. It is important for company to produce more valuable goods from their
competitors at market place. In view of Tesco Plc, company should manufacture
products with innovative feature at affordable price from their rivals. This will aid
company to gain competitive advantage at market place and increase brand image
among their service users.
 Restraining Forces: These forces are said to be difficult to implement changes
successfully. Some examples of restraining forces are an individual’s fear of failure,
organizational inertia. These forces also affect decision making and drive changes in
process of Tesco Plc. Due to this, employees of company fear of their failures in tasks
and projects.
P5 Different leadership approaches to dealing with change in a range of organizational contacts.
In every organization leadership plays an important role to deal with change in
organization functions and operations. They motivate and encourage employees to perform well
and achieve their goals in allotted time frame. In context of Tesco Plc, leadership is essential for

company and employees as well (Peters, 2012). They guides and provide direction to workers to
enhance better outcomes and productivity. It is the duty of leader to communicate effectively
with their staff member and to solve their issues faced by them. It is also important for them to
use tactical strategies and make decisions to obtain better results effectively. In this company
should apply leadership theories to deal with changes and process of company. They should
provide proper training to workers and provide information about the changes and process and
operations. In addition to this some leadership theories which company should apply to face
changes are as follows:
 Situational leadership approach: It refers to different demand and situations which
begin in organization. Situational leadership theory is developed by Hersey and
Blanchard in 1969. In this leader of company has to face different situations and demand
of organization it is important for leaders of company to have proper knowledge and
understanding of organizational operations and situations (Yoder-Wise, 2014). The
leaders of Tesco Plc, should also adopt this theory of situational leadership to face with
all circumstances of business enterprise. In order to achieve company goals, they should
use tactical strategies and techniques to formulate plans. It is also essential for them to
have proper communication skills, so that they can easily supply information to their
workers. In this regard, there are some primary functions of situational leadership which
are as follows:
 Telling: It refers to leadership styles in which leader of company guides and tell
employee about what to do and how to do perform task assigned by them.
 Selling: In this style, leaders sells or give important and ideas information to
employees about projects and tasks. This will help worker to resolve their issues.
 Participating: According to this approach, the leaders gives or offers less direction
and allows staff members or groups to take a more dynamic role in coming up with
ideas and making decisions.
 Delegating: In this style, staff members tend to make most of the decisions and take
more responsibility for what happens in company.

 Contingency leadership approach: This theory is given by Fred Fiedler in 1958.
According to this approach, leaders of company use this theory to match their style with
compatible situation (Salmela, Eriksson and Fagerström, 2012). This helps them to easily
deal and face all situations of business enterprise. In Tesco Plc, to make best use of this
theory, it is essential to determine what type of style a leader has. This approach assists
them to achieve their goals and objectives by managing operations of company.
 Transformational leadership approach: It refers to theory in which leaders of company
work with group of members or teams to identify changes which are required to do. This
approach is developed by James V. Downton. This also helps leaders to create vision and
objectives of company. The leaders of Tesco Plc, should also adopt this theory to attain
an accomplish targets (Wagner, 2016). Under this approach leaders are more loyal and
hard worker and achieve organizational objectives.
 Transactional leadership theory: In this leadership style, leader focuses on
performance, supervision and organizational functions. This is an integral part of
transactional leadership approach. These leaders are more focus on efficiency and
increased productivity of company. This theory also helps Tesco Plc, in emergency
situations and to deal with specific situations in time.
 Inspirational or charismatic leadership: This approach refers to those leaders who
have strong mission and vision. This approach is also known as trait approach which is
bases on characteristics and qualities of leaders of company. Leader of this approach have
strong skills and qualities which are beneficial for them to perform their task easily. This
also assists them to make better relation and coordination with employees. The leaders of
Tesco Plc, use this approach to carry out their business activities with aim of achieving
goals in allotted time frame.
CONCLUSION
From the above report it is concluded that organizations need to change in the competitive
environment the organization. If the organizations don't cope up with the change it becomes
difficult for it survive. The changes could be organization structure change based on the change