Leading Change and Creativity in Organizations: A TESCO Analysis

This report provides a detailed analysis of how TESCO, a leading multinational retailer, manages and implements organizational changes to maintain its competitive edge. The report examines recent changes within TESCO, including technological advancements, operational structure modifications, and cultural shifts, highlighting their impact on the company's performance and employee dynamics. It applies Kurt Lewin's three-stage change management model to understand the process of organizational change, focusing on unfreezing, change, and refreezing stages. Furthermore, the report assesses the risks, opportunities, and challenges associated with these changes, particularly concerning employee resistance, and suggests strategies for mitigating risks and fostering a positive work environment. The analysis covers various aspects such as technological changes, simplification of operational structure, and cultural adjustments, emphasizing the importance of effective communication, employee involvement, and training to ensure successful change implementation and organizational sustainability. The report concludes by offering insights into how TESCO can effectively manage and resist change, ensuring that the organization can adapt to the evolving market conditions and maintain its leading position.

Leading Change and
Creativity in
Organisations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................9
RERFRENCES..............................................................................................................................11

INTRODUCTION
Leading change and creativity within organization is essential to compete with the rivals
across marketplace. It is the clear commitment and ownership within the company, concentrating
on prioritized set of the changes, rendering sufficient resource for executing, clear accountability,
long term planning, continuous improvement and effective program management which helps
the companies in gaining overall goal and objective.
TESCO is the leading grocery and general merchandize as multinational retailer. It has its
headquarter within the Welwyn Garden City, England, United Kingdom. There are 6,800 total
stores of company. The total revenue of company is 63,911 million. They employ more than
450,000 employees within their organization which indicates that company has huge employee's
retention. The above report includes the several changes which have been taken within the
TESCO. Further it includes the application of change management model. Report further carried
froward with the risk, opportunities and challenges which are faced by company while
implementing changes within the TESCO. Report ends with the several risks which had been
faced by company if change is not resist by the employees and how the leaders can effectively
mitigate such risk within the company through several strategies.
MAIN BODY
Recent changes within company-
Organizational changes:
It refers to any of the alteration which occurs into overall work environment.
Organizational change is essential characteristics of many organizations. A company should
develop adaptability towards change otherwise it would either to be left behind or swept away by
several forces for change. Chang into the organization is inevitable in the progressive culture.
Modern companies are hugely dynamic, adaptive and versatile to multiplicity of change. It is
alteration of the structural relationship and individual role within the company. This is largely
structural in the nature (Lambert, 2019). A company could be changed in many ways. Their
technology can be changes, their structure, its people and all another element could be changed.
The organizational changes call for the change in individual behaviour of worker. Some recent
changes which have been occurred within the company are as follows-
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Technological change-
The technological change is often introduced as element of the large strategic change into
the organization, whereas sometime it takes place by their own. An essential aspect of changing
technologies is determined who in company would be threatened through changes. For becoming
successful, technologies should be changed and must be incorporated across the overall system
of organization, and management structure should be developed for supporting it. The
advancement of various technologies into the TESCO let the companies to achieve their overall
goal and objective (Smith, 2019). The companies by developing several technologies can reduce
the labour work so that they can render great services to the consumers and allow them to have
an amazing experience with the company as whole. Technological change within company help
them to enhance their quality of services and rendering the appropriate goods and services to the
consumers. Companies are moving forwards towards improving technologies within TESCO let
them to increase their revenue and profit further. Thus, the company can sustain in market for
long term and compete with the rivals into the marketplace. Because several technologies
development and improvement contributes into the overall success of company. Company could
make changes to their technology infrastructure, system, automation, software and hardware etc.,
Operational Structure Change-
Structural change could also occur due to the strategic change as per the changes
organization decided to acquire other business and further should integrate it, along with that due
to the operational change or the changes into managerial style. For example, organization that
wishes to implement more participative changes into the decision-making could, might needed
for changing their hierarchical structure. TESCO had also decided to simplify their operational
structure so that they can improve their efficiency and render line manager the clear
accountability for consumer and colleagues experience. The compliance manager and people
manager's role would be eliminated from the big stores and fulfilment centres within the United
Kingdom. The customer experience manager's role into the present 266 stores would be
eliminated, and providing their line manager with direct accountability for the consumer
services, in line with across all other stores of TESCO. This change would affect the 1,700
colleagues who will be supported for finding the alternative role across business wherever it is
possible. As result of these change, 900 newer roles across broader remit would be developed as
Learning Partners, People Partners and Colleague Relations Partner who are working across
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multiple site by stores, distribution and fulfilment. New colleagues administration role has also
been developed for supporting management teams across large stores and fulfilment centre. This
helps TESCO to implement this changes into the organization helps them to sustain in
marketplace for long term. And this efficiency has also been enhanced greatly.
Cultural changes-
Culture plays an essential role into the organization which let the company and its
employees to perform their tasks within the organization. The culture within company refers to
pervasive value, belief and attitude which characterize a company and guiding their practices.
Any changes within this area could have a significant impact on each and every aspect of
TESCO. This could have direct impact on the compliance, productivity and innovation within
the company (Aitkenhead and McCann, 2017). Greatly this is helpful for TESCO to maintain a
positive work culture within company that helps them to motivate their employees and further
working for the betterment of company. The company can enhance their operational activities
within their stores through this culture change. Employees will also further retain with company
and work for the growth and development of TESCO. They can further gain huge profit and
margin if their employees are working for the company positively and contributing for the
company's overall success. They can easily have innovation and advancement into the
technologies if the company is having a positive and good working culture. There is no
biasseness and culture difference within the employees let the employees to achieve overall
company's goal and objective effectively.
Thus, there are several changes which can be implemented by companies into their
operational, production, innovation, technologies, structure and culture so that they can gain
huge success and growth further.
Application of related theory-
Kurt Lewin's three stage model or planned approach for the organization is one of the
core stone model that is related to the current scenario even. In 1950, Kurt Lewin had developed
the simple framework which is helpful in understanding procedure of the organizational change
that is known as Three-Stage Theory that are Unfreeze, Change and Freeze. As per the Lewin,
change for an individual or organization is the complicated journey that might not be simple and
thus it includes various stage of the transition or misunderstanding before achieving stage of
stability or equilibrium. The steps involved in the model are explained below-
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Unfreezing-
It is the primary stage of the transition and one of major critical stage in the overall
procedure of the change management. This includes readiness along with willingness of
individual to change by fostering the realization for moving with present comfort zone to the
transformed situations (Hodges, 2016). It includes making individual aware of requirement for
change and enhancing the motivation for accepting the new methods of working for gaining
better outcome. Within this stage, effective communication plays an essential role for achieving
desired support and evolvement of individual in the process of change.
Change-
This stage of model is also known as stage of the Transition or stage of actual
implementation of the change. It includes acceptance of new methods of performing activities
and doing things. It is the stage into which individual are unfrozen, and actual changes into the
organizations are implemented. During the stage, effective communication, careful planning and
encouraging involvement of people for endorsing change into the organization is essential. It had
been believed that this stage of the transition is not that much easy due to some uncertainness or
fear within the individual of consequences for adopting the change process within the company.
Freeze-
Within this stage, the individual move from stage of the transition or change too much
stable state that can be with regard as state of the equilibrium. This stage of refreezing is ultimate
stage in that individual accept or internalize the new ways of change or working, accept it as part
of the life and develop new relationship (Dorac-Kakabadse, 2017). For reinforcing and
recognized new behaviour or change in way of working, worker must be rewarded, recognized
and rendered positive reinforcement, supporting strictures and policies will help in reinforcing
transformed methods of working.
The TESCO can further apply this change management model into the effective change
management process son that they can easily implement change into the company. They had also
faced many challenges while implementing changes into the organization then further for
implementing the change management process into the company they can include their workers
in procedure of the change management by effective communication and reinforcement of the
desired behaviour. Further, for refreezing behavioural change of worker, they had introduced the
performance based pay, and had also implemented open system of the feedback for their
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employees so that they can get huge success about how they can accept the change into the
TESCO and how further they can resist the change into the organization without affecting their
overall performance. The Lewin change model can be applied to the organization in three
different ways that are -
 Changing attitude, behaviour, skill of people working within the TESCO.
 Changing existing organizational system, structure and procedure (Smith, 2019).
 Changing climate, interpersonal style and culture within the TESCO.
The Lewin model is stressed on interdependence of several unit along with subunit into the
TESCO. This model assumes that TESCO function below the static condition and move from
single state of the stability to other state of the stability in the planned ways, but present day
company function is turbulent in the scenario and the uncertain environment of business. Hence,
The change can be effectively implemented into the company by controlling several modes of
effective communication and involvement of employees greatly into the process let them feel
motivated and valued by the employers and thus the change can be easily accepted by them. The
various training in the favour of change can also be given to the employees as there are new
technologies into the company. Through the training program employees can easily learn that
how they can operate the technologies effectively (Muluneh and Gedifew, 2018). The new skills
and knowledge also helps them to enhance their performance greatly. Stress management
techniques can also be implemented by TESCO for their employees so that they can easily cope
up with the stress, negotiate ensuring the compliance. Thus, this how TESCO could effectively
manage and resist the change into the company. By implementing this strategy into the
organization they can let their employees to easily adopt the several changes across the TESCO
significantly. Company can greatly compete with their rivals through having the specific changes
within the company. The company could enhance their efficiency by accessing through these
changes and gain huge success further.
Assessing and adoption of company's resistance and readiness and opportunities-
There are several risks, opportunities and challenges which are being faced by TESCO
will accumulate these changes within the organization. The company could use several strategies
in favour of that changes so that they can implement such change into the company.
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Risk-
There are many risks faced by company if they are implementing these operational
structural change, terotechnological changes and cultural change into the TESCO. If these
changes within the company are not accepted by the employees then company can face risk into
the business practices. If employees do not resist the change of culture within the organization
then they could not work positively for gaining the overall goal and objective of company. And
thus at last their performance will be affected greatly and however this will result in job lefts by
the workers (Henderson, 2017). The same with the changes into the operational organizational
structure within the TESCO as per their simplification, 1700 colleagues job is on the risk zone
and thus this will result in the situation of crisis within the company as the huge number of
workers will be job less this could have negative impact on the TESCO. The technological
changes within the company can also have created a negative situation across the company as if
employees could not resist with the new technologies then performance of workers will be
affected greatly and thus this will result to the performance of company greatly. Thus, the sale,
profit and revenue will decline because quality of the products and services is not maintained by
company as whole. This will create the situation of risk for company as there sales and revenue
are decreasing.
Challenges-
While implementing changes within the company, TESCO is facing several challenges
within it. It will be more challenging for company to integrate and develop new technology
within the TESCO at existing platform in several ways which do not cause great logistical issue
for the company. Other challenge is to let staff that how they can utilize this new technologies
within the TESCO. If employees are not believing that this technological change would make
their job easy, they will argue to the company that why the change have been made into the
company (Cornett, Knackstedt and Deshler, 2018). Thus, the employees must adopt and learn
how they can access with new technology and reduce their workflow greatly. If company fails to
communicate with their employees about the plan and progress towards implementation of
change this can let the company to face challenges regrading this. They would not feel valued
and thus disruption of work has been affect the work performance of employees. Thus, more and
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more communication and interaction has been made among the employees and employer so that
they can let their employ to resist change. The low morale of employees is also a biggest
challenges for TESCO to implement such change into the company. It will become difficult for
workers to have smooth flow of transition across the organization and might could impact
efficiency and productivity as well. If workers are not much happy with the decision of
company, they are far likely to implement these decision in such manner that they can gain
success (Brown, 2018). Changing the structure within company will hit the overall morale of
workers as they will realize that they are losing their power within the company. It is big
challenges for company to maintain the morale and motivation of their workers so that they can
achieve their overall objective of change into the company. The another challenge for company
can also be lack of proper planning. The change across organization is not been made with
planning and complete project then this will become challenges for TESCO to change the old
system into new one within company. Change made within the company is very quickly then
also it will be difficult for company and employee to resist that change and somehow the overall
performance of company will be affected to great extent.
Opportunities-
By implementing changes within the company there are several opportunities which are
associated with TESCO. This changes in culture, technologies and structure let company to
enhance their efficiency. The company could easily sustain in market for long term with its
improved efficiencies as they can render great services to their consumers. By having a positive
work culture within the organization let the employees to work for the betterment of company.
The employees with positive attitude will work for the achieving goal and objective of TESCO.
Employees with great morale helps company to deliver satisfactory services to the customer at
their store. The company by implementing various technologies into the stores they can let their
customer to enjoy satisfactory services which are provided to them at store (Sibley and et.al.,
2017). The company can gain huge success if they can effectively fulfil needs and demand of the
consumer to great extent. TESCO could render great quality services and product to them so that
they can let their consumer to have enjoyed the superior services and goods of company.
Hence, there are many risks, challenges and opportunities which are associated with
company while implementing several changes within the TESCO. This can be helpful for
organization to achieve their objective and goal greatly. The company could also enhance their
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revenue and profitability within the marketplace and effectively compete with rivals all the way
across the market.
Risk facing in adoption as and when time arrives and mitigation of risk by leadership
team-
While adopting the change there are several risks which are associated with company and
their employees. The resistance to change is one of the major risk for manager of TESCO as it
can take many forms. Employees of company may resign, they might show the tardiness, lack of
the motivation for working, enhanced absenteeism, need of the transfers, shoddy work, wild-cat
strike and declined productivity etc., This all is the risk which is to be faced by company while
adopting the several changes within the organization. Companies are gaining huge profit and
revenue if there are employees are working productively for the betterment of TESCO. If
employees are not resisting the change within the company then they could be on strike against
such change. And thus this could affect the overall working of TESCO significantly. The
employees can also left jobs if they are not able to adjust themselves with the change instant
retention of employees in large number can affect the overall profitability of company and thus it
can develop a situation of risk for company (Sibbet and Wendling, 2018). As staff is not
sustaining with the change within the company then the absenteeism within the employees will
be raised and thus they can't be able to render great services to their consumer due to lack of staff
and thus this could also result into the lack of management within the store. This would have a
negative impact on their customer and somehow they will be fail to deliver great services to the
customer and if they are not satisfied then they will shift to another store or brand. However, this
will affects the overall profit and revenue of stores significantly. There can be situation of
conflicts within employees, and then they could not perform well into their operation and
functional activities. This will directly affect the company's productivity and this will affect the
overall TESCO. Company's market share will also reduce to great extent as there is
mismanagement into the company. And thus they could not compete with its rivals and gain
huge competitive advantage against it.
Mitigation of risk by leadership-
The risk within TESCO which are associated with change across the organization can be
easily mitigated by the leadership team of company significantly. They can implement various
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strategies in favour of employees so that they can easily resist with the change. Leader of
TESCO should firstly plan before implementing the change within the organization so that
change can be implemented to the organization slowly so that each and every individual within
the company can sustain with the change throughout organization. They must provide proper
training to the employees if it is required so that there employees could easily adjust themselves
with the change across the company. If any problem is being faced by the employees the leaders
must guide them that how they can resist with the change greatly. The regular communication
and interaction with employees by leader and manager let them to solve the problem if anyone is
facing and then encouraging them to work for the betterment of TESCO. The proper guidance
and instruction should also be given to the employees with regard to changes which must be
taken into the company. Appropriate step which must be taken by each and every company is
that they must involve their employees into the process of change this will help them to feel
motivate and valued by the TESCO. The motivated employees will work for the growth and
development of company. Thus, the overall productively of employees will not be affected, and
they will be working for gaining the objective of TESCO. The employees will manage with the
change across company (Min, Johnson and Ziedonis, 2019). The proper education and
information to employees let them to understand the change within the company, and so they can
easily resist with the change. Leadership team plays a crucial role in letting their employee to
accept the change within TESCO. Leader and manager should support their employees so that
they can positively work for the growth and development of company. Sometime this motivates
and encourage their employees by rendering them emotional support, listening to them and
rendering training in the new skills let them to feel employees valued by TESCO. They can also
encourage them by rendering them incentives in favour of such so that they will work for the
growth of company with positive attitude further. Hence, this all strategies and policies will help
leader and manager of TESCO to let their employees to accept the change within the
organization so that they can easily enhance their efficiency.
CONCLUSION
From the above study it can be concluded that the leading change and creativity within
the organization is essential. A company can enhance their profitability and revenue by
implementing several changes into their organization. This is helpful for company to raise their
efficiently greatly and compete with their rivals into marketplace. The organization by
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implementing several new technologies and innovation into the company and enhance their
productivity and thus they can render great quality product and services to the customer. By
having a positive culture within the company helps employees to work for the growth and
development of organization. The organization by motivating and encouraging employees could
easily gain their overall objective and goal to greet extent. Company must communicate with
their employees on regular basis and give feedback to their employees so that they can easily
adopt change and thus company can enhance their profitability and revenue.
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