Leading and Managing Change Report: Tesco, Economic Climate, and HR

This report provides an in-depth analysis of change management strategies, focusing on Tesco's response to economic challenges, particularly those brought about by the COVID-19 pandemic. It examines the impact of the economic climate on Tesco's operations and identifies suitable approaches, including Kurt Lewin's change model and the change Kaleidoscope model, to address these challenges. The report evaluates the role of HR in supporting these approaches through training, development, and strategic alignment with business goals. It also explores the challenges of managing resistance to change and proposes strategic approaches to overcome them, offering insights into how Tesco can adapt and thrive in a dynamic business environment. The report highlights the importance of communication, employee engagement, and strategic planning in successful change management.

Leading and Managing
Change

Executive Summary
Managing and leading change tends to use effective range of communication approaches in order
to make sure the prominent impact of change in order to feel informed and effective involvement
of the overall process. It also tends to identify and also become quite responsive regarding the
impact of change, uncertainty and loss in order to make sure the progress in desired manner.
Effective management of change undertake several factors in order to consider the effective level
of strategy and policy decisions undertaken as the operational system that tends to depict the
effective feedback for the senior managers regarding the prominent impact of change. The report
tends to cover suitable change factors that tends to occur due to current economic climate and
also consider effective approaches to deal with changes. Besides this, it also identify prominent
support for these approaches undertaking business strategy and ways to deal with it.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explain change which occur because of existing economic climate and suitable approaches to
deal with change.....................................................................................................................3
Evaluate how HR tends to support these approaches considering business strategy and impact
of external factors...................................................................................................................6
Explain various challenges and strategic approaches to deal with effective resistance to
change.....................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Change is undertaken as the prominent phenomenon that occur in several ways
considering the prominent impact on various situations. For this, change is also important and a
continuous activity within the business environment by undertaking prominent business scenario
in terms of identifying both internal and external business environment which put major impact
on the functioning of company (Cowne, Frankl and Gerschel, 2018). The report is based on
Tesco, which is a British multinational general merchandise company headquartered in England,
UK and it is the third largest retailer in world in terms of its gross revenues. Company has its
outlets in around seven countries across Asia and Europe and also founded by Jack Cohen in
1919. Moreover, the report tends to cover significant changes which occur because of economic
climate and also need to consider planned and unplanned approaches to carry forward the
business operations. Besides this, they also tend to evaluate how HR can support considered
approaches with the help of business strategy and other factors. Lastly, effective challenges are
discussed for strategic approaches which are taken to deal with resistance to change.
MAIN BODY
Explain change which occur because of existing economic climate and suitable approaches to
deal with change
Because of the prominent impact of COVID-19 on the functioning of business and
overall economy, Tesco need to put emphasis on the suitable analysis of UK and their significant
challenges that somehow become cause and drivers considering the potential gain to the
economic condition of UK and also tends to close door for the international market and regional
productivity gaps. For this, the economic condition of UK become significant challenge in terms
of addressing the long-standing shortfall for the productivity level considering the advanced
economies. By undertaking the prominent analysis of the economic condition of UK the suitable
and effective gaps are identified considering the manufacturing concept (Donald, 2019).
Outbreak of COVID-19 leads to put negative impact on the running and functioning of company
and also tends to reflect the lower average productivity of UK undertaking the retail sector which
is related with advanced economy.
Besides this, the comparative international approaches suggest that the level of UK is
relatively low considering the investment and Research and development in terms of spending

things for the workers and undertaking the low productivity and skill which is the main reason
for the productivity shortfall. Along with this, it tends to put major impact on the running and
functioning of company and somehow negatively influence the sales and revenues of Tesco. In
terms of dealing with the existing circumstances, prominent changes are considered like
contactless delivery, opting advanced technology considering health and safety factors and so on.
For this, planned approaches are considered which is the effective process in terms of
preparing the whole company considering the prominent goals for new direction and also tends
to refer the suitable culture for the internal structure, process and rewards undertaking various
aspects. Therefore, by identifying the prominent changes and suitable economic conditions that
put major impact on the running and functioning of Tesco, and for this, company tends to opt
planned approaches in terms of overcoming and dealing with the significant changes. So, these
approaches are discussed as:
Kurt Lewin's change model:
It is considered as one of the significant planned approach which is useful for company
by considering the current scenario. As by this, prominent changes are identified considering the
complex situation and overall journey as it tends to involve various stages for the significant
misunderstanding in terms of accomplishing their goals and objectives undertaking prominent
stability and equilibrium (Beech and MacIntosh, 2017). Therefore, this process is effective
considering the organisational change and also tends to take effective shape in terms of
transforming the whole process until unfreezing. Therefore, its prominent approaches are
discussed as: Unfreeze: It is undertaken as the first stage of transition which is one of the most
complex stage of the whole process of change and its management. For this, it tends to
undertake the prominent enhancement for the readiness and desire of individuals to
change by fostering the effective realisation in terms of shifting from the comfort zone to
transformed or changed situation. It also tends to consider the prominent awareness of
change by identifying the requirement of change and enhancement for effective
motivation in terms of accepting the new ideas to work for better results (Rintoul and
Bishop, 2019). Besides this, in this stage, suitable communication plays an important role
in terms of getting desired outcome and also tends to engage individuals for the overall
change process. In relation with Tesco, they tend to bring considering the outbreak of

COVID-19 which put negative impact on the company and employees as well. It leads to
increase additional cost of company and somehow other safety factors tends to become
burden on the performance of employees that put negative impact on the overall
productivity of Tesco. Besides this, employees tend to resist regarding their overall
burden in terms of boycotting change. Change: This stage is considered as the transition stage undertaking the actual execution
of change. Moreover, it leads to include the significant acceptance considering new ways
in terms of conducting things. Besides this, in this stage individuals are unfrozen and also
towards the actual change which is executed. For this, employees need to consider careful
planning and effective communication that leads to motivate the suitable engagement of
individuals considering the change which is important (Sumintono and et. al., 2019). In
regard of this, it is also believed that this stage is not quite easy considering the
prominent uncertainties and also quite fearful to opt for the change process. In relation
with Tesco, the employers need motivate their employees in terms of opting the
prominent change by undertaking the significant uncertainties and fearful consequences
in terms of opting the change process. For this, employees need to consider prominent as
it is for their betterment and also try to deal with significant changes by developing
prominent strategies which is useful in dealing with various risk factor. Refreeze: In this stage, individuals tend to move from one stage to another which is
undertaken as the transition and also somehow tends to deal with prominent changes in
terms of being more stable which is considered as the state of equilibrium. Moreover, in
this stage individuals tends to accept the internationalise idea for innovative ways in
terms of working effectively and also tends to accept it as the suitable part of their life by
developing prominent terms with them. In relation with this, it also tends to strengthening
and reinforcing the new ideas and thoughts for the positive and better support and
concerning policies which is useful for company in terms of transforming the ways for
prominent working (Hughes, 2018). In relation with Tesco, the employees tend to make
themselves quite comfortable within the change in terms of considering significant
factors undertaking the existing situation of economic change and climate which is
beneficial for both the employees and employers in terms of opting change for their
betterment and smooth functioning of an organisation.

The change Kaleidoscope
The change Kaleidoscope model is useful in order to help the change agent by facing the
bewildering arrangement of effective execution of decisions which are needed and made
regarding the change that should be executed. For this, the Kaleidoscope has three rings in which
outer one is concerned with broad strategic change, middle one is concerned with particular
contextual factors which are required to formulate change and inner circle tend to give menu for
the choices and interventions which are available for the change agents. For this, few features are
mentioned as:
 Time: It represent the time for long time strategic growth and development and by this
how company react on the crisis. Scope: It depict that how much the company will impacted and change in an effective
manner for the transformation.

 Preservation: It undertake the aspects of culture, working, abilities and individuals which
should be retained. Diversity: They tends to identify they several departments like research and development
and marketing by having various sub-cultures. Capability: It undertake the abilities that exist in order to cope up with changes and
undertake the individuals, managerial and organisational level. Capacity: It represent the resources like managerial time and money which is available in
order to invest for the change process. Readiness: Here, the staff is aware considering the needs for change and the way which
they are committed for change.
 Power: In this,, the authority and autonomy is represented of change agents to make
effective changes.
Evaluate how HR tends to support these approaches considering business strategy and impact of
external factors
The above discussed approach is implemented and executed by the HR manager in terms
of having effective and critical functioning of company considering the contributing areas for the
growth and success of business. In regard of this, HR also have significant impact for the
company and also majorly influence the overall business strategy. In regard of this, in terms of
eliminating burden from employees, company need to recruit more and more employees which is
helpful to respond effectively for the economic change and tends to plan effectively for the
concerning issues of business (Bateman, Snell and Konopaske, 2017). In regard of this, the HR
manager of Tesco tends to opt training and effective retaining for employees in terms of
implementation of effective strategies and critical functioning of human resource functions by
undertaking new and advanced technology, new equipment and legal regulations undertaking the
demand and new expectations from the customers the need suitable and effective information in
terms of developing skills for employees. Along with this, the HR manager also need to train
their employees in terms of acquiring prominent skills and also tends to retain them considering
the existing skills which are no longer required.
Business strategy:
Training and development: In terms of opting prominent change, it is important for
company to significantly provide training to their employees which is useful in regard of offering

them effective training and developing that helps them in performing with full potential in terms
of increasing productivity. Along with this, it is also helpful for company in terms of dealing
with significant changes and also helpful in opting suitable change concerning the essential
factors. Besides this, the prominent strategy is also useful for Tesco in terms of overcoming from
the suitable barriers that can become hurdle among them regarding their effective functioning
and survival with the dynamic situation (Mavin and Yusupova, 2020). Besides this, training and
development is also helpful for company in terms of retaining them for the longer period of time.
For this, the HR manager tends to opt significant recruitment strategies in terms of attracting
talent which is also the complex function of HR and it is essential significantly at economic
crises.
In this, the HR manager need to conduct hiring program considering the human resources
and leadership strategies for company which is effectively related with having right individuals
for the right objectives. In terms of this, the HR department tends to conduct signifiant research
for their technical skills and expertise and also tends to fit for the cultural factors undertaking the
essential problems (Doppelt, 2017). In regard of this, effective on-boarding and proper
development is important considering the talent factor that leads to make sure the progress in the
company and also represent the significant ability for an organisation in terms of retaining and
effective growth of employees.
Redefine cultural values: It undertake the prominent method in terms of redefining the
cultural values of company. It tends to consider the change management strategy which depends
on the prominent assumptions of individuals undertaking the social well being for the cultural
norms and values (Head and et. al., 2018). In terms of Tesco, their HR manager tends to develop
effective culture for the continuous development for one way in terms of having effective change
and also undertake the mind set of employees in order to ask things for effective change. In
regard of this, workforce of Tesco are quite receptive to the new method of working and consider
effective ideas for the continuous development that comes with effective change.
External factors:
The significant external factors which should be considered by company in terms of
shaping future regarding the business opportunities and also become potential threat which are
mentioned as:

 Technological advances: As per this factor, Tesco tends to opt various new strategies
which are useful in terms of having effective purchase of concerning products and
services by undertaking the effective use of devices and also identify the significant
impact of new technology by considering their impact on significant sources and supply
of goods. By considering the prominent outbreak of COVID-19, it is identified that
company tends to opt significant and advanced technology which is useful for them in
terms of having contactless delivery and also use artificial intelligence and other high-
tech functions including prominent technology considering the business goals and
objectives (Olins, 2017). Therefore, it is useful for Tesco as it leads to generate
profitability and also tends to increase overall performance and productivity of
employees by undertaking the needs of customers. By considering the significant culture,
efficiency and suitable relationship for the business it leads to impact the overall
technological infrastructure by exerting the impact on the overall security of confidential
information and trade benefits. Cultural and social factors: As per this factor, it leads to undertake various factors that
are increased in number and also tends to identify prominent factors that leads to put
positive impact in terms of implementing change for the better working conditions
(Beech and MacIntosh, 2017). Along with this, considering the viewpoint of Tesco, they
need to consider the effective trends and factors which are beneficial for company in
terms of having effective growth and development. Besides this, Tesco also tends to
consider online platform in terms of delivering significant products and services to their
customers by considering prominent safety measures. For this, Tesco also tends to
achieve effective growth considering the suitable trends for the online delivery. Away
with this, arrival of new trends also tends to put negative impact on the running and
functioning of company as it leads to negatively impact the overall performance of
company (Dick and et. al., 2018). Moreover, respective company need to undertake
prominent needs and preferences of customers by identifying the perspective of
employees as well which is helpful in terms of executing change as proper analysis of
these factors become beneficial for company in terms of implement changes by
eliminating significant risk factor. Hence, company need to consider suitable demand

considering the overall performance of basic functions and also tends to face difficulty
regarding the products which are consumed by customers.
Recommendations
Therefore, it is important for the company to organise environmental scans on the annual
and semi-annual basis and it also tends to make sure the frequency by staying in the existing
external factors that prominently impact the company in both positive and negative manner. This
process effectively depict the significance of small and medium sized business organisations
undertaking the brand and revenues for the larger corporations which is quite susceptible to have
effective impact on the external factors. In regard of this, the HR manager of Tesco tends to
support business strategy and external factors effectively as these put major impact on the
running and functioning by eliminating negative factors over it. Besides this, it also leads to
suitably combine the external forces in terms of shaping for the environmental conditions of
company. Along with this, it is also essential for the HR manager of Tesco in terms of
undertaking effective culture and social factors which is useful in implementing prominent
change for the growth and development of company.
HR of Tesco
In terms of having effective management and smooth functioning of company, it is
beneficial for company to have prominent managerial actions which is effective and capable
enough in terms of having effective management in company (Rintoul and Bishop, 2019). For
this, company also develop suitable teams which is useful for them in order to have prominent
development of the company in dynamic business market. In regard of this, the leaders of Tesco
tends to use situational leadership style in order to deal with changes and helps in surviving in
the critical situations. This leadership style is beneficial for company in terms of having effective
development and growth of company.
Explain various challenges and strategic approaches to deal with effective resistance to change
Changes are essential regarding the betterment and smooth functioning of an organisation
and it is helpful considering the understanding and Critical situation that tends to create strategic
changes in terms of accomplishing organisational objectives. Moreover, changes also tend to
impact the functioning of company in positive and negative way and also become barrier for an
organisation. In regard of this Tesco need to deal with offering their product considering the

prominent economic changes that impact the functioning of company which are mentioned as
below: Ineffective communication: At the time of executing change it is essential for the
employer to significantly communicate with their subordinates considering the change
factor that helps in neglecting resistance of employees. In regard of unhealthy
communication tends to lead towards the significant development of various issues that
leads to occur dissatisfaction among employees and conflict that influence the decision-
making process of an organisation. In terms of managing the prominent barriers the
manager of Tesco in terms of having essential communication skills by which we can
prominently clarify their doubts of employees and also communicate change in
prominent way that leads to make initiatives for the healthy working environment of an
organisation (Alavi and Gill, 2017). Hence in terms of the managers of Tesco tends to
take prominent decisions in terms of bringing suitable transparency and clarity among the
members of company by developing effective communication among the employees
which is helpful in considering growth and success for company in terms of eliminating
barriers for an effective communication. Resistance to change: It affects the resistance of employees towards the change as it can
become major hurdle in terms of executing change within an organization (Sumintono
and et. al., 2019). It tends to influence the overall performance of Tesco in an effective
way by which company face complexity regarding the implementation of the decision
making. Along with this change tends to face resistance by which organization try to help
their employees by involving them within the decision making of company and also those
employees who are against the change as it leads to develop positivity with an
organization (Haunton, 2020). In relation with Tesco their leaders prominently engage
Their employees within the effective decision for the execution of change and convince
them by considering their growth and prominent development which is beneficial for the
employees and Organization regarding their prominent development. Therefore, in terms
of the leaders of Tesco they can opt participative leadership style it is helpful in
eliminating resistance of workers at the time of implementing change.
Strategic approaches