Change Management and Organisational Development Report for Tesco

This report examines Tesco's change management and organisational development in response to the UK's economic climate, particularly the impacts of Brexit and COVID-19. It explores the extent of changes within Tesco, analyzing the effects on job losses, financial instability, and the availability of goods. The report details the three phases of transition experienced by Tesco and identifies strategic approaches and tactical options available to handle the situation, including Kotter's, ADKAR, Lewin's, McKinsey 7-S, and Kubler-Ross change management models. Recommendations are provided, focusing on adapting to government policies and using necessary precautions. The conclusion emphasizes the importance of change management theories and models for organisational development and achieving excellence in a competitive market. References are also included.

Change management and
organisational development

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Table of content
• INTRODUCTION
• To what extent did Tesco changed according to current economic
climate
• Strategic approach and tactical options available to Tesco to
handle the situation
• Recommendations
• CONCLUSION
• REFERENCES

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INTRODUCTION
• Change management play a crucial role in every organisation as it makes
organisation ready for the present market situation. In order to deal with
change management, an organisation has to hire professional employees
who are dynamic and efficient. Government policies related to business
mainly emphasize on change management and also impacts on the
survival of a business in the economy.

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To what extent did Tesco changed according to current economic climate
Economic climate plays a major role in functioning of a company at
the market, it also decides the revenue generation of a company. In
order to survive in the market, a company has to perform all of its
operations related to economic policies of a country. Due to the two
major forces that are Brexit and COVID 19,UK economy and
businesses of UK are hit hard.

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Continuation
• The major changes caused by two major forces with respect to Tesco company are explained below:
• Loss of jobs- Due to the spread of global pandemic COVID 19 and Brexit, Tesco has undergone through huge financial loss in its
operations which led to unemployment of thousands of persons working in the company (Anthony, 2017).
• Financial instability- Financial instability for Tesco has been also created by COVID 19 and Brexit, they mainly led to decrease the
number of customers and effected on the revenue generation of the company.
• Availability of goods- Tesco has mainly suffered in its operations and after the impact of COVID 19 virus in UK.

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Three phases of transition
• Three phases of transition states the situation of a business before the impact of a major factor and after the impact of that factor. These stages are
helpful in clarifying past and present situation of a company. Tesco has undergone through three phases of transition after the impact caused by
COVID 19 and Brexit which are mentioned in detail below:
• Ending- COVID 19 pandemic in UK has ended several businesses in the economy and have caused shutdown of several businesses in the
economy. After a few months of Brexit, the gross domestic product of UK declined tremendously.
• Neutral zone- Neutral zone is the stage which comes in between the end stage and the new beginning. Under this stage the guidelines related to
COVID 19 were relaxed by UK government.
• New beginning- This is the most important phase in transition which includes conducting new operations in the market and formulate a head start
(Brones, 2017). New beginning is fresh start of a business, which majorly focuses on market entry of a business entity with changed strategy.

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Strategic approach and tactical options available to Tesco to handle
the situation
• Kotter's change management model: Kotter's change management model is most practised model in bringing change in an organisation. This model
includes various stages which helps in increasing output of the employees in an organisation.
• Increase in urgency- This stage focuses on creating a sense of urgency by the employer in mind of employees in order to develop their engagement in
work.
• Build team- Team building includes creating an association of people with correct skills in the organisation to complete a task.
• Communicate- Effective communication should be done at Tesco in order to bring transparency in the operations of the company,this will enhance
results and operations.
• Focus on short term goals- Tesco should focus on short term goals instead on focusing on the long term goals to achieve efficiency in its functioning.

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ADKAR model
• ADKAR change management model: This model includes a multi-dimensional
approach in performing change management system (Carvalho, and et. al., 2019).
This model contains five major elements which are mentioned below:
• Awareness- There should be an awareness about desired change in the mind of the
management, evaluation of necessary that Tesco has to go through should be in mind
of the managers.
• Desire- It should be in mind of the manager at Tesco that every employee in the
company must become a part of change.

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Lewin's change management model
This is most suitable model which brings desired change in an organisation, it also brings changes in the structure of an organisation.
This model includes three major elements which are explained below:
• Unfreeze- This is the initial stage in this model which includes preparedness of the employer for change. It contains communication
as a major element in the functioning of an organisation (Chetana, 2017). The major task for the managers is to develop a resistance
power in the employees for bringing necessary change.
• Change- Acceptance of the essential change in the organisation comes under this stage, it includes the implementation of desired
changes.
• Refreeze- Once the change is achieved by the business, this stage includes re-involvement of the employees with their respective
routines. This stage also includes assessment of the desired changes in an organisation.

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McKinsey 7-S change management model
• This model is a good choice in bringing necessary change in the business (Dorling, 2017). Tesco must implement this model in order to redefine its
operations in the global business. This model consists of seven crucial categories which are explained below:
• Strategy- This category consists of performing a future planning in the business, it includes development of a precise plan for a business. Tesco should
adopt this category and deploy professional management in formulation of a effective strategy to deal with the consequences caused by COVID 19 and
Brexit. Company must plan a strategy which is reliable and flexible for conducting effective marketing operations.
• Systems- In order to compete in the market, Tesco should use information and technology in its operations in a precise manner to deal with the new
situation related to market in UK.
• Shared values – Shared values include various ethics used by an organisation in order to implement a strategy. These values determines the relationship
between employees and help the business to grow in the market.

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Kubler-Ross five stage change model
• This model of change management mainly brings out various changes related employee management. Employee management is essential
for every organisation in order to achieve maximum efficiency in output from the workforce in an organisation (Pedler, 2017). Tesco can
adopt this five stage change model in order to change its employee management effectively after the situation of COVID 19 and Brexit in
UK. The five stages in Kubler-ross model are explained below:
• Denial- This stage comes when employees refuse to do work as they do not want to change. Tesco should adopt all necessary measures in
order to stop the denial by the employees in order to bring necessary change.
• Anger- Anger brings conflicts and grievances in the organisation, which leads to inefficiency in its operations. Tesco should deploy
professional human resource management to tackle grievances and conflicts which are coming in between its operations after COVID 19
and Brexit.

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Recommendation
In order to survive in the market after impact caused by COVID 19 in the economic and social environment of UK, Tesco should follow
all the policies and regulations imposed by the UK government in a precise manner. Tesco should also use all the necessary precautions in
supply and selling of its goods and services to the customers. The company should fully sanitise its product and their should be thermal
scanning performed for the customers who are entering at Tesco stores.

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Conclusion
From the above stated report, it can be concluded that UK's decision to leave European Union has impacted Tesco in many
different ways and caused a major change in the organisation. COVID 19 outbreak has also caused many changes in UK
business which are hard to handle for the organisations. It can be concluded that using various theories and models of change
management, many organisations can adopt change in order to facilitate organisational development. It can be also concluded
that in order to become competent in this era of stiff competition, organisations have to go through various roles and
responsibilities which facilitates them in achieving excellency in their functioning. This report also concludes, how the
professional management in an organisation helps an organisation in delivering excellent products and services.

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REFERENCES
• Renter, A., 2019. Personnel management in western europe-Development, situation and concepts. In European approaches to international
management(pp. 351-368).
• Singh, S.K., 2018. Sustainable people, process and organization management in emerging markets.Benchmarking: An International Journal.
• Sumathi, G.N., Thangaiah, I.S. and Sundharam, V.N., 2019. Impact of organisational culture and people factors on knowledge management
process: case study in an IT service company.International Journal of Knowledge Management Studies,10(2).pp.205-225.
• Online
• Models of change management in an organisation.2021.[Online]Available through:<https://blog.smarp.com/5-change-management-models-to-
take-a-look-at>

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