Understanding and Leading Change: A Report on Organisational Change

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Underst
anding
and
Leading
Change
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Table of Contents
Introduction:.........................................................................................................................................3
LO1: Compare ways in which change impacts on an organisation’s strategy and operations.
...............................................................................................................................................................4
P1: Compare different organisational examples where there has been an impact of
change on an organisation’s strategy and operations...............................................................4
M1: Assess the different drivers of change in each of the given examples and the types of
organisational change they have affected...................................................................................6
LO2: Evaluate the influences that drivers of change have on organisational behaviour..........8
P2: Evaluate the ways in which external and internal drivers of change affect leadership,
team and individual behaviours within an organisation.............................................................8
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour..............................................................................................................10
M2: Apply appropriate theories and models to critically evaluate organisational response
to change.......................................................................................................................................10
LO3: Determine how barriers to change influence leadership decision making......................13
P4: Explain different barriers for change and determine how they influence leadership
decision making in a given organisational context...................................................................13
M3: Use force field analysis to analyse the driving and resisting forces and how they
influence decision making............................................................................................................13
LO4: Apply a range of leadership approaches to a change initiative........................................15
P5: Apply different leadership approaches to dealing with change in a range of
organisational context..................................................................................................................15
M4:..................................................................................................................................................15
Conclusion:........................................................................................................................................16
References:.......................................................................................................................................17
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Introduction
Change is the essence of today’s times and its importance in the organisational life cannot be
overlooked. The organisational capabilities can improve a lot by taking into consideration the
various changes and new processes and methods can help an organisation in the achievement
of the organisational goals more effectively. However, it is the sole responsibility of the
organisational leader as well as the management team to persuade the employees of the
organisation to accept changes with ease by communicating them the various benefits arising
from it and helping them cope with the changes through training. The following assignment
will focus on the organisational need for change which led organisations like Microsoft and
Apple undergo many changes. In order to meet the requirements of the customers as well as
to sustain position in the industry and remain competitive, Apple as well as Microsoft has
been through many organisational changes that will be focused upon in the following
assignment.
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LO1: Compare ways in which change impacts on an organisation’s strategy and
operations.
P1: Compare different organisational examples where there has been an impact of
change on an organisation’s strategy and operations.
The emersion of the 20th century has been marked as the century accompanied with various
changes as well as innovative discoveries and innovations. The best example to justify this is
the rapid advancements that took place in the world of computers in this century. However,
behind every successful organisation, whether technological or non-technical, the main
reason is the strong organisational structure with strong leaders and well-led management
team capable of adjusting themselves as per the changes. Organisational change may be
defined as the changes that take place within the organisational culture, structure, operations
as well as processes (Business Dictionary, 2018). In today’s era, each and every business
needs to adapt themselves to organisational changes so as to remain competitive as a result of
globalisation as well as continuous developments in technologies. By considering the
following companies, I will better explain the fact that how companies these days are dealing
with the changes and how they have affected their strategies and operations for the better.
The companies that we going to consider are Microsoft, founded by Bill Gates and Apple Inc.
that was founded and created by Steve Jobs. The two are considered as the major rivalries in
the market.
Microsoft is the multinational company that mainly does its business in the computer’s
industry. The company mainly deals in providing, licensing, manufacturing as well as
supporting software, Personal computers and desktops and electronic services. The Microsoft
Windows is the most selling as well as the popular product of Microsoft.
Apple is an American multinational as well as the biggest competitor of Microsoft in the
market. The company mainly provides services such as designing and manufacturing of
electronics, smartphones, software, iPhones, iPads, personal Mac computers, smart watches,
Apple TV etc. The company is considered as one of the largest smartphone manufacturing
companies in the world and is on the rank 3 in the world of technological companies.
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Thus, both the companies are considered to be highly competitive in their respective
industries and have therefore undergone through many organisational changes throughout
their lifetime. Both the companies have grown well after carefully undertaking changes that
were necessary for their growth as well as innovation. The various organisational drivers for
change for these companies include political changes that include changes in government
policies, technological changes due to advancements of technology, competitive environment
and growing demand from customers for innovative products and the economic fluctuations
taking place in the country (Courtney, 2016).
PEST Analysis for Microsoft for identifying drivers of change:
Political: The government of USA did change its policies and regulations from time to time
in order to develop and sustain business in USA. Microsoft needed to adapt to these changes
in order to grow as well as sustain in the market (Courtney, 2016).
Economic: The economic factors also impact the business to a great extent. The financial
management team at Microsoft needed to plan in advance their strategic actions so as to deal
with the economic fluctuations in the country from time to time.
Social Factors: The growing demand for innovative and creative service led immense
pressure on Microsoft and the company had to undergo changes so as to come out with more
useful and creative services to meet their changing needs.
Technological: The continuous improvements in technology taking place made Microsoft got
adopted to such advanced technology and follow the same. The company did improve its
products as well as its services with the continuous advancements in technology so as to
remain competitive (Courtney, 2016).
PEST Analysis for Apple for identifying drivers for change:
Political: The Company got impacted due to various changes taking place in the rules and
regulations of the government but the leader of Apple Steve Jobs did manage all the changes
and continue to lead the company in the direction of growth.
Economic: Under the autocratic leadership of Steve Jobs, every decision was meant to be
taken by him. Therefore in spite of economic fluctuations, the company continued to achieve
growth and success (Courtney, 2016).
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Social: Apple soon started to get thrive changes and hence the social changes as well as
preferences soon became its priority and hence the company kept on redesigning its services
as per the needs of its customers.
Technological: With the technological advancements, Apple redesigned its Mac Notebook
and invented digital music with its products like iTunes and iPod.
M1: Assess the different drivers of change in each of the given examples and the types of
organisational change they have affected.
In order to become leaders in their respective industries, both Microsoft as well as Apple
have undergone through various different types of changes which are described as follows:
Microsoft: The various internal and external drivers of change for Microsoft are:
 Internal:
Innovation: True leaders are those who welcome new and fresh ideas and therefore are
capable of jumping in the unknown. Microsoft allows every employee to achieve more by
constantly innovating something new. Bill gates, the leader of Microsoft, recruits employees
capable of achieving its purpose (Kotter, 2012).
Culture: The leaders of Microsoft have always prepared themselves for cultural changes at
Microsoft with the changes taking place in outside environment as well as technological
advancements.
Improved Products: The expectations of customers have risen and therefore the companies
are required to give them the enhanced digital experience. Therefore, Microsoft tries to
provide their customers with high value services which provides long lasting experience
based on innovation as well as excellence (Ward, 2018).
Employee Morale: By providing free and high quality food at its canteens, free towels in
shower rooms, etc. the company tries to attract talented employees so as to boost their
morale.
 External:
Technological Changes: The changes that takes place in technology requires organisations
like Microsoft to update its processes and train its employees and staff about the recent
development so as to enable them to keep up with them.
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Political Factor: In order to enhance its shareholder value, the company makes corporate
participation in the various public policies through Microsoft Political Action Committee.
Customer Requirements: For Microsoft, adapting its products as per the needs of the
customers and the local market is necessary and hence the company from time to time make
changes in its products and services as in the absence of this, the company would fail to meet
the customer requirements (Kotter, 2012).
Apple: The various drivers of change for Apple are:
 Internal:
Innovation: Apple has always been successful in constantly surprising customers with new
products and innovations by taking just the right strategic decision at the right time.
Culture: The most important parts of the organisational culture of Apple is its creativity and
innovativeness. These has been preserved by the company since long and should be kept for
its future as well in order to achieve success (Ward, 2018).
Improved Services: In order to guarantee improved products and services, Apple provides
training to its employees so as to keep them updated.
Employee Morale: Apple values its employees and boosts their morale by providing training
as well as rewards and recognition for their hard work which helps them in coping with
changes easily.
 External:
Changes in technology: Technology have the power to impact business operations overnight
and therefore it is important for Apple leaders to adopt technological changes.
Political Factor: There is an immense political pressure on Apple and this is because of the
poor reputation of the suppliers through whom Apple gets their raw materials (Ward, 2018).
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LO2: Evaluate the influences that drivers of change have on organisational behaviour.
P2: Evaluate the ways in which external and internal drivers of change affect
leadership, team and individual behaviours within an organisation.
Leadership may be defined as the art of maximising the performance of others by influencing
and motivating them to achieve a particular task and the one who has the ability to provide a
direction to the group of employees or individuals in order to motivate them to follow the
direction so as to achieve success and organisational growth is said to be a leader (Richards,
2018). Thus on the basis of this, a leadership is said to be comprising of following:
 Set clear goals
 Provide direction by influencing
 Proper guidance as well as supervision
Unlike management skills, leadership skills cannot be learnt over time but can only be
improved through mentoring as well as coaching. The perfect example for this is Mr Bill
Gates, who despite of facing many failures in his life, achieved success and made a huge
name in the industry through Microsoft. Another perfect example is Mr Steve Jobs, who
through his capable leadership and mentoring helped Apple to become the top most company
in its industry (Franckiess, 2012). However, many forces or drivers of change do exist within
every organisation that has an impact on the leadership, individual as well as team
behaviours. These can be classified under internal and external drivers of change which are
explained as below:
Internal:
 Organisational Behaviour: The organisation where the culture is powerful and effective
can easily achieve success as their leaders easily welcome the ideas and suggestions of
their employees and thus achieve growth.
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 Employee Morale: The positive attitude as well as the energy possessed by a happy and
satisfied employee helps organisation in achieving maximised productivity (Richards,
2018).
 Poor customer service: The poor quality of services provided to consumers impacts the
profit margin of the company and hence the leaders as well as teams are expected to
improve their services in order to fulfil requirements.
External:
 Changes in technology: New and improved technologies, better ways of doing business
do impacts the leadership behaviour as well as the individual and team behaviours.
 Customer Requirements: In order to meet new customer requirements, the leaders as well
as the employees need to upgrade their thinking as well as way of doing business in order
to keep with their competitors (Franckiess, 2012).
 Competition: As new competitors try to make efforts to enter the market, the leaders as
well as the team players increase their efforts in order to remain competitive.
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P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.
Changes are always resisted as they are considered to be uncomfortable because they require
new methods of doing the same things and hence are resisted by the organisational
employees. Therefore, organisations can take the following measures in order to minimise the
negative impacts arising out of change on the organisational behaviour:
 Engage employees in change process: There is fear of unknown as well as getting
changed inside the employees and this can be prevented only by engaging employees in
the process of change and communicating with them the changes in advance (McQuerrey,
2018).
 Ask employees about their feelings: In order to successfully implement change, it is
important for the leaders to understand the feelings of their employees and issue they
have regarding change.
 Effective delegation: In order to create a sense of belongingness, management must
delegate the employees with important responsibilities regarding change (McQuerrey,
2018).
 Ask for commitment from employees: For the successful implementation of change,
employees and their commitment towards change process is of great importance.
Managers must make sure that the employees feel positive towards change and are
therefore committed.
 Keep the employees updated: In order to prevent any kind of misinformation, keep the
employees updated about all the information.
 Praise employees: Managers need to praise employees by listening to their suggestions
and ideas attentively and recognising them for their hard efforts.
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 Train and prepare: The organisation must provide its employees with proper training in
order to make them prepared for the coming changes and to learn new skills and
knowledge required after change (McQuerrey, 2018).
M2: Apply appropriate theories and models to critically evaluate organisational response to
change.
In order to evaluate the organisational response to change, the Kotter’s 8 Step Model of
change can prove to be helpful which is explained as below:
Kotter’s 8 Step Model of change:
(Source: https://www.managementstudyguide.com/kotters-8-step-model-of-change.htm)
After doing research on various organisation undergoing change, Kotter introduced 8 Step
model of change.
Apple Kotter’s 8 Step Model of Change:
1. Establish a sense of urgency: During 1980, which is considered as the year of
Macintosh, Steve Jobs created a sense of urgency in Apple by announcing that they are
going to introduce Macintosh first in the market.
2. Build guiding team: Apple has always been successful in building proper partnerships
and guiding teams in order to achieve its purpose. In order to introduce iTunes in the
market, the company made partnerships with various music companies (Juneja, 2018).
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3. Create a vision: In order to become a huge name in the industry, Apple created a vision
of providing its customers with more than just computers and hence developed
smartphones as well as iPods and iTunes.
4. Communicate the vision: In order to encourage its employees to achieve its purpose,
Apple provided them with personal computers in order to make them feel not just
working for the company but being committed to perform better.
5. Empower other to act on vision: In order to help employees improve their skills as well
as their performance, the company provided personal computers to their employees for
home usage as well.
6. Create short term wins: Apple successfully created short term wins for their employees
in order to boost their morale and keep the process going in right direction (Juneja, 2018).
7. Don’t let up: After the successful implementation of every change, Apple did not stop
and hence keep on improving its products and services with the help of constant
innovation.
8. Stick to change: Apple has always been capable of adopting new approaches of doing
things and constantly improving their products and services for the better.
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