BTEC HND Business Unit 41: Organizational Change and Leadership Report

This report examines organizational change, focusing on Marks & Spencer (M&S) and its strategies. It explores the impact of internal and external drivers of change on leadership, team dynamics, and individual behaviors. The report compares M&S with Primark, analyzing their approaches to technological and organizational changes, including the adoption of new technologies and the implementation of monitor-and-course-correct strategies. It also discusses measures to minimize the negative impacts of change, and the barriers that affect leadership decision-making. The report highlights how employee morale, innovation, customer demands, and competitor actions influence change within an organization and the corresponding adjustments required of leaders and teams. The content is structured around the BTEC HND in Business unit on Brand Management, providing insights into change management and leadership within a retail context.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 : Managing the Impact of Change.....................................................................................1
P1. Compare different organisational examples.........................................................................1
P2. Ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.............................................................................4
P3. Measures that can be taken to minimise negative impacts of change...................................6
TASK 2............................................................................................................................................8
P4 Barriers of changes and their impact upon leadership decision making in organizational
content.........................................................................................................................................8
TASK 3..........................................................................................................................................10
Covered in PPT.........................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
Organizational change refers to alterations or modifications made in order to gain some
profitability or competitive advantage. An little alterations among culture, strategies, technology
and other attributes of the company in response to failure in an attempt to achieve goals and
objectives (Ashley and Empson, 2013). The changes in an organisation occurs when the
standards are changed. These alterations can be continuous or for a distinct period of time as
each organization go through with the present changes.
The organizational change is a field of management theory that focused on the phases
that companies undergo as they develop. This report is about Marks & Spencer which is a UK
based multinational organization dealing in retail sector of clothing and beauty products. It was
founded in 1884 by Michael Marks and Thomas Spencer and currently working with about 1000
stores in Europe. The present report emphasizes on different roles, approaches, and strategies of
a leader while applying organizational change. Along with this, barriers of change have been
analysed with reference to their influence upon decision making. In addition, the measures to
minimise negative impact of changes on organizations are discussed.
TASK 1 : Managing the Impact of Change
P1. Compare different organisational examples.
For the development of a company, the organisation structure is important and this
artefact is based on cultural identity of a company. There are different firms, working in various
sectors to achieve their goals and objectives. So, there are many problems which every
organisation have to face and generally these alterations occur in the organisation strategies,
technologies, policies, etc. To grow the business, changes in business environment is good but
sometimes the uncertain risks undertakes. This can affect an organization both in positive and
negative ways. Therefore it is the responsibility of a manager to come over with the new services
and the products which satisfy the needs of customers in the marketplace (Cornish-Bowden and
Cornish-Bowden, 2012). Under this, Marks & Spencer is one of the leading companies in retail
sector of clothing and beauty products, they also need to review their current performance and
bring about modifications within organisational premises to ensure their sustainability in
competitive environment.
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On other hand its competitor, Primark is an Irish fast fashion retailer company which was
headquartered in Dublin, who involves in same business with same product. The mail goal of
this company is to render high and rich quality of clothes. The strategies used by this company is
establishing cost and product leadership. Both of the companies introduced some alterations
within the enterprise to sustain in marketplace. A comparison chart has been explained below ,
so that both the organization should be aware about changes impact on their functions :
Basis Marks and Spencer Primark
Technological changes For this, company has adopted
Stormwear Technology so as
to keep the users protected
from wind as well as rain
(Downes and et. al., 2016). By
the use of this, company has
gained strategic edge in market
as this is a new concept not
brought forward by any other
company. This will directly
impact positively on
operations of Marks and
Spencer and on other strategies
as well because adoption of
this technology will make
company unique in the
industry and this is what
exactly customers are looking
for and i.e. uniqueness. On the
other hand, if it is talked about
financial terms, than adoption
of technology and
implementing it in every single
store of Marks and Spencer
If it is talked about technology
changes, Primark Brand has
implemented, Custom-built
LED which basically displays
Primark much more eye
catching than its competitors
into high visibility locations
throughout the market. This
makes company more
attractive than its rivals and
directly grabs attention of
customers. With the help of
this, their sales might increase
which will directly put positive
impact upon production and
performance level as well.
Apart from this, negative
impact that this technology
carries is that it consumes high
electricity and somehow
company is wasting natural
resources through which
electricity is being made.
Again to reduce the negative
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could lead company to invest
heavy money. Henceforth, to
overcome this impact,
organisation needs to adopt
specific strategy and i.e.
monitor and course correct and
through this approach, Marks
and Spencer could reduce
investment of money to an
extent.
impact, company has used
monitor and course correct
approach where Primark was
using solar systems in areas
where weather mostly stays
clear.
Differences in Organisational Approaches to Change
Both of the changes made by M&S and Primark related to technological driver is being
done for good. But, it can be said that Marks & Spencer's basic approach which has been adopted
for change, is technological structure and this includes series of steps in order to bring alterations
among workstation. These include analysis of market gap, review of the variances between
organisation's current and desirable performance to fill the gap and then bringing alterations and
modifications in activities and processes. This is done so as to adapt itself as per customer needs
and requirements. On the other hand, Primark focus upon continuously evaluating the internal
and external environment of organisation so as to ascertain any necessary changes that need to be
brought. These changes are then communicated to employees to gain their support and then
executed within the enterprise. This focuses on the modifications according to the customer need
and choice (Finn, 2012).
Similarities in Organisational Approaches to Change
Monitor and course correct approach is being considered as the same concept that is
being adopted by M&S and Primark in order to reduce the negative impact of change. But, both
of them have applied for different reasons.
P2. Ways in which internal and external drivers of change affect leadership, team and individual
behaviours within an organisation
Every organization in today environment is looking to pace their changes, because
without change business would likely lose their competitive edge and fail to meet the need of
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their customers. In that case there are many factors both in positive and negative aspects that an
organization have to face, as these factors affect the functioning of an organization. Any change
in these factors need to change in an organization. A Driver's change is an internal and external
force that shapes change to an organization. These are those factors which bring change in
overall industry, which includes change in products, strategy, designs, services and operations.
The change in an organisation, also bring change in the role of leaders (Gnan and et. al., 2013).
The leaders have to follow some best approaches for the growth of an organization. The
alterations among company brings the change in plans and policies, so the team should adopt the
new alterations and should guide and motivate their subordinates about the changes. An
individual should follow the guidelines of their superior and adopt the changes occur in a
company. Modifications basically occur because of a variety of internal and external factors,
over which leaders sometimes have very little or no control. There are some common change
drivers start with internal drivers and end to external forces :
Internal drivers of change and its impact
Some of the internal changes which can affect roles of a leader towards individuals and
teams in M&S are:- Employee morale – Since, employees in present time are being considered as asset for the
company. Therefore, their morale could basically be taken as internal driver of change
because whenever a company makes alterations, an employee mainly carry a fear of
loosing job and because of this they looses their morale. This automatically impacts upon
leadership because a leader might require to adopt any other leadership style from the
existing one in order to motivate staff. Morale of staff would also directly impact upon
team as well because a team member's psychological state is not appropriate, it will
directly impact negatively on whole performance of the team. This could be understood
with an example, where M&S brought updated machine for receiving payments, here
financial team might carry fear of loosing their job. But, if company's seniors supports
them using right tools of training than they might reduce the negative impact of change.
 Innovation – Innovation is a key element which is to be considered by every organisation
because this could help in developing new and creative ideas. Innovation is the basic
aspect for an organisation which is kept in consideration to enhance the sustainability in
the market. Any innovation took place in existing training modules which were being
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used by Marks and Spencer to train its employees, here to sustain at marketplace
company would have require to adopt changes. Therefore, it could be considered as
internal driver which would directly impact positively upon performance level of staff
(Goldstein and et. al., 2014). Away with this, based on updates made in training system
of Marks and Spencer, it is may be possible that leaders may require to change existing
policies as well like set targets and so on. On the other hand, based on adopted training
system, it is may be possible that team member's would require to make alterations within
the team based on their capabilities. Along with this, if it is talked about individuals than
this change will put positive impact upon performance level. For an example :- Marks
and Spencer is looking forward to improve its sales by 15%. Therefore, adoption of new
training module (change) would directly enhance skills of staff which will aid company
in meeting its targets.
External drivers of change and its impact Customer Driver's Change – The biggest external driving force for an organisation are
customers. The loyal customers wants regular updates about the new customs and trends
in the market. The changes in M&S are drive on the basis of the customer needs and the
strategies are planned, so that they can grab the opportunities. To adopt any change in an
organisation, the involvement of top management (Leaders and managers) is required.
This will directly impact upon leader's style which was being followed previously where
leaders were following autocratic leadership style but as per the requirements of
customer, it is required for leaders to use transformational style. Apart from this, both
team and individual's behaviour might also get affected because M&S would definitely
make alterations in its products as per the requirements of customers. For an example:
Change in taste of customer, would require leaders to analyse what requirements that are
needed to be made. Here, they might take help of staff to make alterations in existing
products.
 Competitor's Driver's changes -The new challenges takes place in the market by existing
competitors. Sometimes an organization like M&S have to adopt changes according to
the strategy of the competitor like Primark. Such as if Primark has decided to expand
their market share and should change their policies then M&S have to expand its market
share and change policies and survive in the market for a long period of time. Basically,
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competitors strategies that has been adopted by them may directly grab attention of
targeted customers of Marks and Spencer. In order to take right decision, it is may be
possible that leaders would require to take charismatic leadership style from any other
leadership style. Along with this, team and individual's behaviour also might get affected
because of different reasons of change. This could also be understood with an example
where Marks and Spencer's have to adopt much more unique strategy of promoting their
products from its rivals. Here, leaders would develop much more effective team then its
rivals and if leaders take help of individuals their behaviour towards company might also
get positive.
P3. Measures that can be taken to minimise negative impacts of change
Business environment involves various activities that are executed in organisation in
order to maximise profitability of company. This execution of activities involves many changes
that are implemented by management team in organisation. It can be said that these changes have
positive as well as negative impact on company's profitability. In relation to M&S, it can be said
that it is important for the manager as well as for the leaders of this company to analyse impact
of change before implementing it and also adopt few steps and policies for minimising negative
impact of change. They can also adopt relevant techniques with the help of changes can be
implemented in a positive manner. Some measures that M&S can take to reduce negative impact
of changes are as follow - Positive attitude– At the time of implementing change at a company like M&S it is
required to employer to carry positive attitude for their staff members so that issues could
easily be resolved of them because an employee may carry fear of loosing job when a
company updates itself as the individual might not have skills to go with the change with
ease. Therefore, positive attitude carried by seniors of M&S for its employees could help
firm in bringing alterations right on time (Groebner and et. al., 2013). Train and prepare– This is being considered as one of vital approach which could help
Marks and Spencer in reducing the negative impact linked to a change that company is
going to make. In this, training plays a crucial role because this basically helps existing
staff in preparing the individuals for adopting the change that is made by Marks and
Spencer. With the help of this, skills and knowledge of individuals basically easily be
improved and this could help them in working in the company with the change.
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 Supervise employees – Another crucial aspect, which could directly help a Marks and
Spencer in bringing change at workstation. Since, it has already been found that an
employee whenever finds a change at workplace, he/she gets nervous and may carry fear
of loosing job. Therefore, supervision provided by Marks and Spencer, could basically
help employees in working effectively with changes which has been made by the
company.
Since Marks and Spencer is looking forward to bring changes among existing operations
through adopting new machinery. This is being done to speed up the manufacturing process of
products (clothes). This will directly bring fear among minds of staff that they might loose their
jobs because of less knowledge related to changes that has been made by the company. In order
to reduce this negative impact PDCA model has been implemented which is mentioned beneath:
PDCA (plan-do-check-act):
Plan: In order to reduce the negative impact, it will be required for leaders to develop a
proper plan like at the time of opting the change, Marks and Spencer's leader would directly
develop a proper training plan so that their knowledge would directly get enhance and perform
well with accepting the change.
Do: Implementation of the plan of providing training to employees will be considered as
the second step of this model where leaders would start giving training to staff. Through this,
employees will start gaining knowledge and will improve skills as well.
Check: Just after implementation of the plan, it will be required for leader of Marks and
Spencer to analyse that if staff is gaining knowledge or not. This could be done through looking
at their weekly performance which has been given by them.
Act: This is the last step, where actions are being taken by leaders of Marks and Spencer
like any modifications required in training sessions so that employees would basically get to
know about everything related to new technology.
Through this, negative impact of change could be reduced to minimal.
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TASK 2
P4 Barriers of changes and their impact upon leadership decision making in organizational
content
It has been analysed that understanding change management would basically lead a
business organisation to develop innovative strategies and through this, maximum benefits could
easily be gained by the company (Kotter, 2012). Apart from this, it is being found that change is
a factor which every single business company looks for. In present context, vital aim of
managers of Marks and Spencer behind bringing change in their business is to improve
production level of the company and to maintain the business environment (Hughes, 2016).
Barriers of change management: Basically, every single individual do not accept
alterations. Thus, this could be considered as one of a barrier which could possibly prohibit
company to bring changes. Apart from this, it is being found that mainly gaps changes and
eventually have a negative effect on day to day production process of Marks and Spencer. A few
barriers of change which could impact negatively on performance level and these are given
beneath:
Lack of Employee Involvement: This is being considered as one of the most basic
barrier, which shows and stops a business organisation like Marks and Spencer to bring changes
at workplace. In context of Marks and Spencer, it is having the most loyal employees but then
also they resist change because they feel like a little alteration made by the Marks and Spencer
bring fear among their minds of loosing their job. Henceforth, a sense of fear among employees
and they less support in formation and implementation of policies could basically push back the
organisation and would stop them from making alterations. This generally puts impact upon
decision making of managers as they may forget to involve employees (Kumar and et. al., 2013).
Lack of Effective Communication Strategy: In present time, every single company looks
to bring modifications in their operations so that to gain many competitive advantages. Here,
lack of communication based strategies would basically create confusion among employer and
employee and this could lead Marks and Spencer's decision making process as well. It is being
found that, managers along with the leaders as well of Marks and Spencer basically consist with
an idea that staff members would basically adapt rules and the policies as well at the time of
implementation of change.
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Force Field Analysis: Force field analysis model has been implemented for identifying
the study related to the change management (Saha and et. al., 2013). Along with this, Professor
Kurt Lewin was the person who proposed this model and basically it consist with two different
factors like facilitating and restraining of change and these are mentioned beneath:
Facilitating Factors: In this context, there are a range of elements, involved within or
outside business environment that basically helps an organisation like Marks and Spencer to
make alterations as per the requirements (Lewin's Change Model, 2018). Basically, outdated
machinery and unviable processes of technology which needs change and this could help
business organisation to improve its profit margins. Such factors influence leadership behaviour
in Marks & Spencer as leaders are the one who are responsible for communicating the need of
change to staff of company. Also, they align the behavioural characteristics of personnel towards
facilitation of change across organisational premises (Storey, 2016).
Outdated machinery: Technology is carrying a rapid changing nature. Thus, machinery
used by Marks and Spencer will definitely get old one day. Here, it is the responsibility of
leaders to analyse the market and try to adopt new updates at workstation so that to go with the
flow. Here, leaders decision making process might get affected because, new updates in
technology also requires training which is needed to be given to staff. Therefore, leaders might
require to give training twice in a week where they were giving only once.
Obsolete technology: Since outdated technology like obsolete payment systems used by
Marks and Spencer could slow down the process of receiving payments. This may lead its
competitors to many advantages. Leaders would require to adopt right payment system for the
company to change the existing one where he/she also require to give training to staff so that
they could directly start using as this will faster the process of payment.
Restraining Factors: Such factors can include governmental regulations and customers
who may not be willing to accept the change which has been made by company like Marks and
Spencer. These are such individuals or groups associated with Marks & Spencer that restrict the
change to be adopted in organisational context (Yoder-Wise, 2014).
Governmental regulations: This is being considered as one of the most crucial
restraining factor that would stop Marks and Spencer to make alterations. For an example,
company is looking forward to bring payment system in the store that is basically fast but is not
allowed in most of the countries. Here, it will be required for leaders to make decisions related to
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different areas where company is performing and the regions where the new adopted payment
system is banned. Through this, leader would easily find out where they have to keep the existing
payment system and where it is required to make alterations.
Customers: This is one of the factor which basically stops Marks and Spencer from
making changes among products and services. This could be understood with an example, where
M&S is looking to improve its food products. But, a major part of consumers are not finding it as
right decision. Therefore, it could basically put impact upon decision making of a leader where,
he might train staff to show benefits to consumers at the time when they visited the store.
TASK 3
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