Organizational Change Management: A Tesco and Aldi Case Study

This report provides a comprehensive analysis of change management strategies employed by Tesco and Aldi, two prominent multinational retailers. The report begins by comparing the impact of change on the organizations' strategies and operations, highlighting the influence of technological advancements and communication strategies. It then evaluates how internal and external drivers of change, such as technological capacity, organizational culture, employee morale, economic factors, and political influences, affect leadership, team dynamics, and individual behaviors within each company. The study applies Kurt Lewin's theory to critically evaluate Tesco and Aldi's responses to change, emphasizing the importance of honest communication and employee involvement. Furthermore, it examines measures to minimize the negative impacts of change on organizational behavior, including the use of efficient communication policies. The report concludes with recommendations for effective planning and change impact analysis, addressing barriers to change and their influence on leadership decision-making processes. The analysis draws on various factors that influence the success of change management, including effective communication, management strategies, and the acceptance of change.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1-Managing the Impact of Change..........................................................................................1
P1: Compare TESCO and ALDI company's where there has been an impact of change on an
.....................................................................................................................................................1
organisation’s strategy and operations........................................................................................1
P2: Evaluate the ways in which internal and external drivers of change affect leadership, team
and
individual behaviours within an organisation............................................................................2
Apply Kurl Lewin Theory and model to critically evaluate the Tesco and Aldi Company's
response to change......................................................................................................................3
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational
behaviour....................................................................................................................................4
Draw conclusions and recommendations with valid justifications for planning effectively for
.....................................................................................................................................................5
change and applying change impact analysis..............................................................................5
P4 Different barriers for change and describe influences on leadership decision process : ......1
P5 Leadership approaches to dealing with change in a range of organisational .......................3
Conclusion.......................................................................................................................................4

INTRODUCTION
Management, transformation and organisational changes has become permanent features
of the business landscape. Changes in technologies affect the organisation in many ways,
innovation of technologies have put muscular business models on capital flows and investors
demands have become less predictable. To meet these changes, firm has to become more
sophisticated by doing best practises for organisational leading change management. In this
assessment TESCO and ALDI company is chosen. Both companies are of same sector i.e. retail
sectors but growth rate and operations of Tesco is much greater than Aldi. Both are multinational
companies of UK. Both companies are public limited companies. This report is concluding
managing the impact of changes in the organisation, leadership management and decision
making power of management. The assessment is critically analysing the forces for meeting the
organisational objectives in leading changes. Comparison of the impact of changes on
organisations and evaluating the ways in which external and internal driver's of leadership affect
the organisation. The barriers for change and determining how it influence the decision making
of both the organisation is also studied in this report.
Task 1-Managing the Impact of Change
P1: Compare TESCO and ALDI company's where there has been an impact of change on an
organisation’s strategy and operations.
TESCO and ALDI company is fighting with the changes taking in the environment. The
strategic planning of the organisation is greatly affected by the leading changes. Retail strategy is
a holistic marketing plan for product or services to reach and influence the consumers.
Technological changes also affect the organisational strategies and operations (Pollack and
Pollack, 2015). Today all the company's are using high power machines which has ultimate
power to manufacture the products very fast and Tesco's machines are much sophisticated than
compare to Aldi. Technological changes is expensive but it is necessary for company to remain
sustainable market share in the environment. As implementing changes need huge fund which is
not easy for any company to come-up with instantly, but Tesco and Aldi company is
implementing the upcoming changes very fast. The changes in technological is dynamic in the
face of technology , But Tesco company is facing much more better than Aldi Company.
Communication strategies are now changing very fast, channel's of communicating to others are
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remove , now the communication become flat which is very effective to the organisation.
Management change also affect the company's strategies, if management of the organisation
changes the whole structure of the organisation which affect the company's (Baynes, Lague and
Attal, 2016). Tesco Company is using much better communications instruments which are
increasing its customer satisfaction and upgrading sales volume and Aldi company is also trying
and doing its best to increase the sales upto the the sales of Tesco.
P2: Evaluate the ways in which internal and external drivers of change affect leadership, team
and
individual behaviours within an organisation.
The working and decision making of the Tesco and Aldi company's is totally influenced by
the business environment. Both company commercial enterprise ventured into secure maximum
profit and to provide best services to the public is the main motive of company. Their are many
ways which are sometimes negative and positive (Bascia and Hargreaves, 2014). Events, things
and situations that occur inside the business and under the control of company is Internal Driving
Forces. Technological capacity, organisational culture, financial management, employee morale,
poor delivery, competition and high wastage affect the changes in leadership, team and
individual behaviours of Tesco and Alsi organisation. Internal driving force:
Technological Capacity: The new discoveries make the old one outdated. The business
community has to keep abstract with the changes in technologies. Egnoring technological
changes is not fruitfull for Tesco and Aldi organisation. Scientist are operating on such
technologies which will change the whole environment of the Tesco and Aldi. But in
comparison the Tesco company's adaption in technological change is much faster than Aldi.
Organisation Culture: The systematic study of the behaviour and attitude of both
individual and group within the organisation is known as organisational behaviour. Tesco has
much powerful success spirit than Aldi company. Tesco has best power of listening to staff and
customer's deand than Aldi. Tesco is forward looking organisation. Both company is risk taker
and they also done their business in well planned and in well organise manner (Thomas, 2017). If
the organisational culture of Tesco and Aldi is not good or going in negative way than it affect
the production of organisation.
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Employee Moral: The strength and level of confidence of Tesco company is more in
comparison to Aldi company. Employees has not committed their job and has no moral if the
company is going downwards. The employees of Tesco is more satisfied than Aldi company
which make positivity in the operation and growth level of organisation. For increasing
employee moral, Tesco Company is introducing more programmes and mental confidence is
also provided by both company.
External Driving Forces are those things or events or situations that occur from outside of the
company and which sometimes not able to controlled by management of company (Chow,
2014). The external forces affect both company in large context.
Economy: Tesco and Aldi both are working in the economy and both are influenced by
the relationship between business organisation and economic environment. The economic
environment is totally depends on the performance of Tesco and Aldi. Inflation and deflation
largely affect the organisational structure financially. Aldi in compare to Tesco is more affected
by inflation and deflations in UK.
Political Influence: The functioning of Tesco and Aldi are directly bearing political
forces. Government policies, political parties, elections, government decisions, political ability,
tax policies are largely are positively and negatively affects the business environment in both the
companies, but Aldi is largely affected as the functioning powers are quite less in compare to
Tesco (Prosser, 2016).
New Competitors: Competition is cut-throat in business world. The level of trouble is
increases when their is new entrant in the business economy. Tesco is fighting more competition
to remain sustain in the market. In retail sector the entrance of new companies is quite easy in
compare to other like in telecommunication sector it is not an easy task for new entrants as it
require huge amount (Lawrence, 2015). But in Retail sector, huge amount is not require for
setting of retail business. Tesco being a huge company in retail sector is fighting competition but
its quality and strategies are so well planned and well defined that is not easy to beat Tasco.
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Apply Kurl Lewin Theory and model to critically evaluate the Tesco and Aldi Company's
response to change
The theory was develop in 1940's for understanding the changes in the organisation. As per the
author, developing the Kurt Lewin theory in the company which helps in evaluating the response
to change. It involves majorly three steps: changing, unfreezing, and refreezing (Bowman and
Raney, 2016). The process of change is needed then moving towards, creating the perception that
a change is needed moving towards the new. This theory analysis the changes in environment
and was designed to weight the driving and restraining forces. Tesco and Aldi both company are
making use of this model to evaluate and adapt the changes as soon as possible. The model is
also about the research for collective , self collective enquiry help in knowing participation in
social economy. The change process is properly describe in this model, that how company would
take advantages of opportunities of changes rather than fear from the changes.
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational
behaviour.
Changes are inevitable, organisation handle it in different and in various ways. Some
changes give opportunities to grow in the business world and some are fearful. The following
are the measures which minimise the negative impacts of change on organisational behaviour.
Be Honest and Thorough: Organisation can gain if it has quality to resist the change as
fast as possible. Rumbling of change, rumours and unhealthy talk in the company is not good for
organisation. The employees and staff of Tesco and Aldi is honest and thorough which is best
for company's performance and their growth. Tesco staff is more efficient in working compare to
Aldi. People make assumptions and develop their thoughts pattern's about what's happening
(Waddell, Creed and Worley, 2016). Its up to company that how it m,manage their honest and
work in right way in right manner.
Show staffer's the personal upside: If company is adopting or implementing some
changes in the business, it is duty to ensure that everyone in the organisation knows about
changes. When Tesco is implementing some changes in its retail market and infrastructure, the
employees of the company is affected at their working place. The changes in the company should
be the opportunities for staff in Tesco and Aldi.
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Work in small doses: The changes in the company dont be overloaded on employyees of
the company. The changes should be absorb by them. The employees of Tesco company are
happy with their job because company implements the changes in right way in right manner.
Aldi company is also resisting changes in its business work which is digestible by their
employees (Waddell, Creed and Worley, 2016). Sometimes acknowledging change is scary can
go a long way towards bringing people on timber
Efficient Communication Policy: Communicating the changes in proper way can make
positive impact on resistance to change. Tesco company has immense communication power
which is great in compare to Aldi Company (Doppelt, 2017). Communicating the changes in
systematic manner would help organisation to get negative impact on the behaviour of individual
and group in the company.
Draw conclusions and recommendations with valid justifications for planning effectively for
change and applying change impact analysis.
In the above analysis of Tesco and Aldi company, the company can only get its
organisational objectives only by the effective communications, effective management strategies
and acceptance to avail the changes rather than fearing from changes. Overloaded changes
should not be their in company, while implementing changes company should take care of
employees. Tesco and Aldi is using model Kurl lewin theory for change which is fruitful for the
company in order to grow in positive direction.
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P4 Different barriers for change and describe influences on leadership decision process :
There are many types of barriers to change. If an organisation understood these barriers to
change then it can help to achieve goals through successful strategies. Change is a main factor
for any organisation, because every organisation has to face environmental factors as well and
environmental factors are continuously changing (Drago-Severson, and Blum-DeStefano, 2018).
All organisations want to implement this factor of change because they believe that the outcome
through this change will be better than traditional approach. Change will maintain and improve
the internal environment of an organisation. It will be very difficult for an organisation to
implement change. There are many barriers to change management such as :
 lack of involvement of employees
 lack of communication
 impact of bad culture
 unknown current state
 complexity
force field model is a main contribution in the change model theory (Fullan, 2014). Forces for
change include internal forces and external forces. internal forces for change in business are :
 general sense
 to increase profitability
 increasing efficiency
 conflicts
 flexibility
 ineffective communication
external forces for change in business are :
 economic conditions which are uncertain
 competition level
 cost of inputs
 taxes policies
 political interests
 social values
 globalisation

 natural resources
 composition
the main factors who usually impact on the organisation are external factors. Any organisation
has to be prepared to accept the changes of an environment. If a company has a characteristic of
adaptability, then it is very easy to accept changes. There are many other factors in force field
model such as ; structural inertia, structure power, work group resistance and failure to accept the
changes. according to the force field model (Drago-Severson and Blum-DeStefano, 2018), it
describes two main factors such as : driving forces and retraining forces. Driving forces are
related to positive forces for change and restraining forces are related to obstacles to changes.
Some steps must be followed in this model such as define the need, brainstorm the driving
forces, brainstorm the restraining forces, evaluating the both forces, review, strategic and
prioritize. This model is useful in making a changes model, because it provides informations that
which factors drive an employee towards or which factor drive away from required state. Self
awareness and intelligence are also main factors in this model which can help an organisation to
make changes.
How it influences the leadership decision making :
force field model of change is a tool in an organisation which is useful to make decisions by
comparing and analysing the forces of this model. This model influence the decision making
process of leadership. It can be explained by these steps such as ;
 describe the plan
 identify the forces
 scores each force
 analyse
 apply
for giving scores, it can be given in these terms :
 forces for change : one for low maintenance cost, second for improved production time,
third for reducing training time and four for customers who need new products (Weston,
Ferris and Finkelstein, 2017).
 Forces against changes : one for impact on environment, second for disruption, third for
loss of staff overtime and cost or four for staff fearful about adopting new technologies.
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When company analyse and identify the forces against change there are two types of factors
might be internal or external :
 internal factors such as : fears of unknowns and traditional organisational structure
 external factors such as : government policies and legislations, obligations and
commitments.
This model is a decision making tool. If both forces in the equal position then it will call as an
equilibrium stage. Leadership decisions are influenced by these factors. By analysing these
forces, organisation can decide that will make changes or not. Forces means which should
influence the business, may be positive or negative. These forces can influence leadership
decisions because these forces influenced the organisational structure. Which can be explained as
: situation of a business or an organisation, decreased maintenance, reliability, cost, time and fuel
economy (Weston, Ferris, and Finkelstein,2017).
leadership is a process which is mainly influenced by individual factors. Apart from these
factors, there are several factors who can also influenced the decision process and these all
factors are part of force field model such as : education and experience, technology, age
differences, time and changes, leadership influences, communication, cognitive biases, belief and
cultural environment. These all factors are aspects of force field model's forces. These factors are
affected by driving forces and restraining forces and then they influenced indirectly leadership
decision making process.
P5 Leadership approaches to dealing with change in a range of organisational
Leadership is the process take corrective actions for maintain the workforces. Tesco
company leadership approach can affect over all business. This company main motive to lead
their business not only UK even all over the world. Tesco manager work on their company
management, human behaviour, social system and socio- technical system approach.
Management science approaches solve their issues through these approaches it cover all the areas
of the decision making and human behaviour. It require higher level of manager in the decision
making (Taylor, 2013 ). Tesco leader play a very important in their business it helps to develop
their culture bonding with the worker and the society through group of specific organisation.
They develop cultural , maintain the relationship with customer and help to grow their business
with loyalty. The corporations help to achieve the organisational goal very effectively manner.
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Tesco has expand their business into international territorial through effective leadership
approaches.
They open Fresh & Easy sore in united states they generating more profit and provide a
quality of product (Giltinane, 2013 ). Tesco leader focus on their business person, result, process.
strong leader can help an organisation to maximize productivity and achieve their goal, so
similarly Tesco leader are very strong they full focused on maximize their productivity and work
on specific area where weak leadership can hurt their productivity. This enterprise build their
morale values and creating a positive or healthy environment. Their employees avoid stress only
concerted their job performance and providing job satisfactions to their worker. They delegates
their responsibilities strong leader handle all the situation so this company leaders handle all the
problems and find out the relevant solutions. Adequate delegation also maintain they providing
employees full corporations.
Tesco leader always motivate other employees for doing good work and meet business
need through one means or others. They people work very hard by using different different
approaches in their business. they provide meaningful guidance and advice their worker. They
coordinates whole staff full fill their need and organisation need. The best leaders will they will
find a way to effectively align each other employees need and talent with their business goal.
Tecso leadership approaches is very honesty and integrity their work and inspire whole staff.
They work whole team and help their teammates for giving a better performance of the business.
They are always good communicating with each other and making a one vision. Tesco leader
take little more than their share of the blame (Doppelt, 2017). They are very creative and
innovative ideas like how to increase their profit, how to capture market, how to run their
business for long term. These are ideas help to maintaining the balances of their business.
Tesco leadership approaches are good all these qualities in their employees these
company people doing work hard and they face are hurdle of this bisiness ans stand their
commitment, passion, empathy, honesty and integrity. They search their business problem then
leader solve their problems (Swanwick and McKimm, 2017). A good leader has futuristic their
business and know how to turn their ideas into real world.
Conclusion
In the above report comparison of TESCO and ALDI company's where there has been an
impact of change on an
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organisation’s strategy and operations has been assessed. Change is very necessary for the
organisation. Through effective strategies changes can be implemented within the organisation.
In this context, the working and decision making of the Tesco and Aldi company's is totally
influenced by the business environment. Both company commercial enterprise ventured into
secure maximum profit and to provide best services to the public is the main motive of company.
Their are many ways which are sometimes negative and positive. This enterprise build their
morale values and creating a positive or healthy environment. Their employees avoid stress only
concerted their job performance and providing job satisfactions to their worker.
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