Sainsbury's Leadership and Change Management Report

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Understanding and Leading Change
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Table of Contents
Introduction................................................................................................................. 3
LO1............................................................................................................................. 4
LO2............................................................................................................................. 8
LO3........................................................................................................................... 12
LO4........................................................................................................................... 14
Conclusion................................................................................................................ 16
Reference List...........................................................................................................17
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Introduction
Understanding and leading change is the way through which an individual is able to
help other members of a certain group to move towards a particular outcome in order
for there to be more productivity. It is important for that to be changed within an
organisation as it helps the business to adapt to the market and become more able
to earn profits and revenue and expand further. For the particular purposes of this
report, the case of Sainsbury’s has been taken into consideration. Sainsbury’s is an
international retail organisation that operates majorly in the United Kingdom and
various other places around the world. The revenue of the company is over 25 billion
pounds as per the statistics of 2018 similarly the number of employee present within
the organisation is over 180,000 as of the same year. In this particular report, several
aspects such as Internal and external factors that are prevalent within the United
Kingdom and others will be discussed along with which the effect they have on
leadership, teamwork and others.
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LO1
P1 Compare different organisational examples where there has been an impact
of change on an organisation’s strategy and operations.
Change that occurs within an organisation may be of several types which include
alteration in employee base, increase or decrease in reserves, different strategic
approaches by managerial heads and others (Elsmore, 2017). When change occurs
within an organisation then the whole business environment changes and new
decisions must be taken that help the organisation to perform better. In order to cope
with the new arising alterations, a reasonable amount of time and competencies
within the employees is required so that their productivity is maintained. There are
three types of changes that can occur within a business context which encompasses
slow change, moderate change, and fast change. All these three different layers of
changes indicate different phrases at which alteration occurs. It is the responsibility
of the managerial heads to help the employees move through this transitional
process in a quick and easy manner. This would help there be no deterioration in the
level of product quality which is maintained in the organisation. For the consideration
of this report, two organisations will be selected who will be compared in order to
illustrate how change within the organisation can impact the operations and
strategies of the business. The two organisations that are suited for this report are
Sainsbury’s and Harrods.
Organisati
on 1
Organisat
ion 2 PEST Drivers of
change
Impact on
strategy
Impact on
operations
Sainsbury’s Harrods Political Within the
UK market,
there are
Many
elements
such as
Brexit,
government
till date, the
cold war and
others
(Clarke et
al., 2017).
There is a
higher level of
tension within
the minds of
the managerial
heads as they
are unable to
formulate
strategies
because of the
ever-changing
turmoil in the
political
sphere. This
causes that to
be
unfavourable
delayed
decision
making.
Since
business
policies that
are created
by political
parties are
run sure this
directly affect
the output
rate of
operations.
The
operations of
Sainsbury’s
and Harrods
of have both
come to a
standstill as
without the
managerial
heads giving
them
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permission to
work for word
Econom
ic
After the
effects of the
economic
recession,
instability in
the stock
market and
others
Within large
organisations
such as
Sainsbury’s
and Harrods
these factors
influence the
recruitment
process as
employees are
either
unavailable or
if the ones
which are
available are
not that
equipped to
perform.
With the
financial
market being
unstable both
Sainsbury’s
and Harrods’
have a lower
amount of
chance to
raise funds
from the
market and
import that
into the
operations of
the
companies.
This prevents
the
organisation
from
elevating
their output
rate.
Social A decrease
in the birth
date,
increased
usage of
social media
preventing
face to face
interaction
and others
(Yule, 2019)
Large
organisations
such as
Sainsbury now
have a smaller
base of a
consumer to
target their
product
towards. in
addition to that
organisation
such as
Harrods have
the opportunity
now to put
their
Both
organisations
will have a
lower amount
of chances to
recruit
employees
from the
market as the
population
rate is low.
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advertisement
strategy more
on to the
online field as
there are more
opportunities
there.
Technol
ogical
Increase in
the use of
automation
causing
there to be
fewer people
being
employed.
Elevated
usage of
artificial
intelligence,
virtual reality
and others
(Rhodes,
2015).
Organisations
such as
Sainsbury’s
now have the
opportunity to
lay off their
current
employee
base and
implement
new machines
for
productivity.
Harrods
similarly, have
no
implemented
artificial
technology
features within
the website so
that
consumers are
now able to
interact with a
robotic feature
that addresses
the questions
Sainsbury’s
and Harrods
now have the
chance to
Increase the
number of
commodities
produced as
automation
devices
board has
that to be
more
operations.
This would
bring in
revenue and
profit for both
of the
companies.
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LO2
P2 Evaluate the ways in which internal and external drivers of change affect
leadership, team and individual behaviours within an organisation
A SWOT framework is a technique through which internal capabilities or drivers
such as strengths and weaknesses are evaluated and the external drivers such as
threats and opportunities are investigated as well (Brooks et al., 2014). SWOT
analysis has been performed in the case of Sainsbury’s below:
SWOT
Table 1: SWOT analysis
(Source: Noe et al., 2017)
Strengths
 It is one of the largest retail organisation within the United Kingdom and has a
high degree of goodwill
 The organisation has a vast level of experience when it comes to leadership
and management of employees for productivity (Phadermrod et al., 2019)
 The organisation has estimated multiple types of advertisement methods in
the market through which the brand value of the company has reached
several heights in the past decade.
Weaknesses
 The company has had unstable rates of profit in the past few years causing
the managerial have to be unsure about the direction of the company.
 The merger that the company has undergone with Argo has been a failure
causing that to be a financial loss.
Opportunities
 The company has the opportunity to diversify on to multiple locations within
the UK market as well as international location and increase its target
audience.
 The company can implement different types of automation technology with
which the productivity rate of the business would increase (Pantano, 2014).
Threats
 The company faces a huge amount of competition from current players within
the market such as Morrison's, Tesco, Mark and Spencer and other retailers
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 With the increase in labourers within the market the amount they charge for
work is elevating as well
Leadership - Leadership is the way through which a group of people attracted to a
specific word within the organisation to achieve productivity.
Team - It is a collection of people who work together in order to share the
specialised abilities and skill each individual has to obtain the maximum utility.
Individual behaviour - Individual behaviour of employees encompasses the type of
conduct a single employee has in the spear of the organisation (Sen, 2017).
The way in which the SWOT analysis affects all of the above three mentioned
practice has been illustrated here down below:
Change Interna
l and
externa
l factors
the impact
upon
leadership
behaviour
the impact
upon Team
behaviour
the impact
upon
individual
behaviour
Measures to
be
implemented
Employees Interna
l
There is a
democratic
form of
leadership
present
within the
organisation
that helps
the
enterprise
to allocate
more work
as per skills.
With the high
level of
goodwill that
is present
within the
market, the
teams which
are present
within the
organisation
would be
motivated to
work.
Owing to the
inconsistent
profit that is
operating
within the
business the
individual
employee
might be
motivated
towards
working.
Performance
metrics can
be
maintained
within the
organisation
through which
the amount of
productivity is
employee
and manager
redhead
performs is
recorded
(Anitha,
2014). This
would enable
there to be
higher
accountability
.
Work
culture
Interna
l
The
leadership
heads
within the
organisation
health there
to create an
The higher
the level of
different
teams is
present within
the
organisation
The
individual
philosophies,
values from
ideologies
make up the
thought
In order to
improve the
work culture
which is
present within
the company,
the
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ethical and
legal
atmosphere
through
which there
is more
positivity
(Northouse,
2018).
the more
specialised
work can be
performed
which would
help the
business to
achieve
differentiation
.
processes
that spread
within the
organisation
and elevate
the work
culture.
managerial
heads must
implement
new forms of
leadership
ideologies
through which
the thinking
processes of
employees
can change.
Customers extern
al
Leadership
helps there
to be better
customer
relationship
s as the
wants and
needs of the
consumers
are
anticipated
by the
heads.
Different
teams within
the
organisation
would help
them to be
created more
products that
are specific to
the needs of
the
customers
(Woodcock,
2017).
When the
consumers
interact with
the
employees of
the
organisation
then they
must feel a
sense of
positivity and
that should
be portrayed
by the
individual
behaviour
In order to
develop the
customer
relationship
within the
organisation
soft skill
courses must
be introduced
through which
employees
are able to
better interact
with
consumers.
Competitor
s
extern
al
The correct
form of
leadership
helps there
to be
anticipated
actions
which are
taken
against
competitors
for that they
are
outranked
Diversify
portfolio
teams would
be able to
operate the
low degree of
profit within
the company
and perform
better than its
competitors.
A particular
an employee
within the
organisation
might feel
threatened if
there are
many
organisationa
l players in
the market as
he might
worry about
his job.
In order to
undercut the
existing
competitors
of the
company a
low-cost by
the system
must be
introduced
through with
new and
existing
consumers
are drawn
more towards
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Sainsbury’s
(Ansoff,2018)
P3 Evaluate measures that can be taken to minimise negative impacts of
change on organisational behaviour
In order to measure the types of the negative impacts that prevail within the
organisation, Burke-Litwin change model shall be utilised. This model helps to
identify the cause and effect relationship that exists between the twelve different
dimensions within an organisation (Hill et al., 2014). The dimension includes aspect
such as leadership, motivation, systems, individual values in organisational culture,
and others.
Figure 1: Burke-Litwin change model
(Source: )
After evaluating all the twelve aspects that have been portrayed above, the following
negative results have been determined:
 The leadership which is developed within the company can be more structure
in nature through the implementation of autocratic management where which
the subordinates will be given clear instructions without debate.
 There is a lack of motivation within the organisation due to the inconsistent
profits that have been travelling within the enterprise in the last few years.
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 The organisation information infrastructure is outdated and requires this to be
an upgrade so that devices and computers can be updated with current
software.
 The organisation requires there to be more differentiated employees who
have multiple types of scales in order for there to be higher productivity (Noe
et al., 2017).
 Ineffective awards are given to the employees in the form of motivational
speeches, work leave and others. The lack of tangible rewards is causing that
to be a decrease in the moral of the employees.
 There is an unclear climate present within the organisation where the
organisational policies of the business are not understood by the employees
which are present.
 In addition to the above, the business mission and vision are not clearly
stated as well to subordinates as there is no clarity on which direction the
subordinates heading.
 Improvement is required on the financial account front as proper budgets,
profit and loss statement, cash flow statement and others required to be
made.
 The work climate within the organisation must be controlled through the
assessment of the attitudes of the employees and competitors in the market
(Wheelen et al., 2017).
In order to minimise all of the above mentioned negative results the following
actions must be taken to mitigate these results
 The company should move its leadership technique towards a more autocratic
and stick form of Management thereby which there would be lesser time
wasted on exchanging thoughts and higher time would be given on getting
more results.
 In order to raise the profits of the organisation, the business must focus on
creating new products that are specific for the retail market and would be able
to catch the eye of consumers in a good manner (Hill, 2017).
 New updated systems must be implemented within the organisation with
updated windows, graphics card, Intel processors, and other factors which will
help the data management team of the organisation to be more productive.
 Tangible rewards must be provided to the employees of the organisation with
facilities such as 401(k), monetary bonuses, vacations and others.
 The policies and rules of the organisation must be continually re-told by the
leadership of managerial as this would help that to be much more clarity.
 Governance professional must be hired within the organisation so that better
legal compliance is present within the business as it would help that to be
lesser known as excel and illegal activities. In addition to that, a tax assessor
can be appointed as well within the organisation so that Sainsbury’s get to
know how to lower the amount of tax which should be paid by them (Hill et al.,
2014).
 In order to analyse the market in a much more effective manner research
must be conducted through primary and secondary analysis by which an
understanding of how the competitors of the period will be attained. This will
enable the managerial heads of Sainsbury’s to plan the strategic directions of
the business in a much more effective manner.
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LO3
P4 Explain different barriers for change and determine how they influence
leadership decision-making in a given organisational context
Force field analysis is a strategic technique through which it is determined what
type of desired states are required within the organisation to move the business
forward in the industry (Swanson and Creed, 2014). In order for an organisation such
as Sainsbury’s to arrive in the desired decisions that are stated by the managerial
heads of the company, two factors must be evaluated. These two factors include
driving forces and restraining forces. Driving forces are elements that are positive for
the organisation in order to move change and restraining forces are those elements
that perform as a hindrance to their being changed.
Figure 2: Force Field Analysis
(Source: Antonakis and Day, 2017)
The managerial heads within an organisation always is towards minimising the level
of restraining changes and trying to optimise the driving changes that are present
within the market. In this particular study, a higher emphasis will be put on the
restraining factors so that it can be understood what elements stop Sainsbury’s from
performing in an optimal manner. The multiple different barriers for restraining
factors have been illustrated here down below in order to have a better
understanding of how to tackle them:
 Intercommunication gap - If there is an effective communication present
within the organisation then thoughts and ideas that are required in order for
there to be productivity are not present. In addition to that ineffective
communication also leads to being a lesser amount of employee relations
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