Organizational Change Management at Tesco: A Comprehensive Report

This report analyzes the management of change within Tesco, focusing on its digital transformation. It begins by defining the nature of transformational change, specifically the shift towards online grocery channels, and uses PEST and SWOT analyses to evaluate the external and internal factors influencing this change. The report identifies key stakeholders, including employees, managers, investors, and customers, and discusses their roles in supporting or resisting the planned changes. It explores strategies for managing stakeholder resistance through effective communication and policy adjustments. The report also examines the impact of change on knowledge management, tracking, and migration, and evaluates relevant models to aid senior managers in diagnosing and planning organizational change, comparing two models to offer insights for strategic decision-making.

Managing change in
Organisation

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Question 1....................................................................................................................................1
Question 2....................................................................................................................................4
Question 3....................................................................................................................................6
Question 4....................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Managing changing in organisation refers to the systematic approach that concern with
change in knowledge, tools and resources and it also involves in defining and adopting
corporate strategies, procedure and technology to accept the change in external
conditions (Adenle and et.al., 2017). In this report the company that is chosen is Tesco,
which is biggest retail sector in UK that deals with many goods and services. In this
organisation the transformational change is digital technology as it there is major
change in the management prospective that leads to coming up with online grocery
channel and that brings major change in the company. The topic covered in this report
are nature of transformational change in the organisation and process faced by
management and using relevant models, theory, concept. Identifying the senior
managers that support or resist any planed change and discussing the way they
managed it effectively. Apart from that impact of change that surrounded knowledge
management, knowledge tracking and knowledge migration is being studied in this
report. Justifying the relevant models, theory that helps in company and comparing two
models that will help the senior managers to diagnose and plan change in organisation is
being evaluated in this firm.
MAIN BODY
Question 1
Defining nature and type of transformational change in management
In the any organisation there are many processes that facilitates in achieving better
profit and success that leads to many advantages to the management. This is important
to bring any change in the company that gives positive change in company. The main
reason of every firm of success is their adoption of new technology and process that
leads to achieving the profitability and efficiency in the managerial process (Al-Ghamdi
and et.al., 2020). In the company Tesco, the transformational change that comes is
change in technology as it introduced the concept of online grocery channel and
providing the goods and services online and enhance the experience of costumer online.
Organisation has always been the first one to adopt the technology and new business
model by establishing online platform for buyers. Making more innovative and
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upgradation that become easy to deliver the procedure of services and giving the best
experience to them will facilitates them to achieve new heights of success. To bring this
necessary change in management Tesco has generated many managerial changes and in
employees training to make them convince about this transformational change.
Following model and theory is being identified to face the key drivers-
PEST Analysis is the method that will help the company to identify the external factors that
access different ways to influence its operation to make the necessary decision. It is difficult to
maintain its efficiency and effectively in the management. In the company Tesco, the
transformational change that taken place is “Digital Transformation” in the management and
impact of this on the basis of this analysis is as follows-
 Political factors- This is factor concern with political stability and interest rate,
bureaucracy, corruption and tax policy in the country. This factor has impact the
efficiency of the change that is bring in the organisations and will influence the
working conditions of firm and gives major challenges in the management
process. This factor impact proper working of different department and
maintaining the whole process that define the restrictions in implementing this
transformational change in the business. This factor impact in taking decision
making as there are certain rules and policies that influence the major process in
management.
 Economic Factors- This factor includes the growth rates, international factors,
disposable income, unemployment rate and taxation policy that impact the
success of organisation. This factor is important in the terms of making relevant
change in the process of company and taking appropriate decision. The change
that is brought in the firm has been impacted by this factor as digital
transformation will bring important alteration in different policies and must be
follow the change as per the requirement.
 Social Factors- These factors concern with taste and preferences of costumer,
social attributes and trends in target market. This factor has brought significant
impact as they start accepting the change and take participate in new change. This
is positive change for the costumer as they are able to make purchase from online
mode and take the advantage of services and that also increase in their buying
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experience. This is essential factor and main reason for company that make them
possible to take this modification due to change in their taste, behaviour and
preferences. This becomes important to take appropriate step to satisfy the
demands of costumer and make it necessary to deliver the best shopping
experience to them.
 Technology factors- This is factors include the different methods that include
infrastructure, legislation and competitor technology that highly influence the
working condition of company and that leads to certain issues (Wester and
Mobjörk, 2017). In this company Tesco, the transformation change that exist in
management and this is important to bring it order to developing better
organisation. The change is digital transformation that means opening online
stores and providing facilitate to costumer as it starts providing the cash free
transaction at their stores and implementing technology to upgrade its overall
system to boost the productivity.
To analyse the different factors that influence the strength and weakness of organisation the need
to examine the techniques is SWOT analysis (Walzel, 2020). This is tool helps the company to
know about its internal and external factors so that they examine in better way. For the company
Tesco, the change that is bring into the management is “Digital Transformation” that how it
influence the working conditions is being studied.
Strength Weaknesses
 Tesco, is the reason that company able
to take this decision is having bigger
brand image in the market and that
makes it easy to implementing.
 Having better market share will leads
to proper management and gives
strength to them to implement the
digital transformation in company
(Stenvall and Virtanen, 2017).
 Innovation is always been major
reason that gives major growth to the
 The main weakness of company
is that it changes its leadership
system at very fast pace and that
leads to inefficiency in
management. Through that
digital transformation is
difficult to implement in the
process.
 Shortage of product is also main
reason that create problem for
company and because that
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company and due that this change is
possible.
putting them online is bit
difficult for the organisation.
Opportunities Threats
 Growth in the online business is new
opportunities for the company and that
facilitates in increasing in the customer
base. Through that company brings that
change in management and grab it as
fast as possible.
 Better financial position of company
will help the management to bring the
major changes (Schumacher and
Scherzinger, 2016). This facilitates in
taking big decision like digital change
as it require lots of investment.
 The company has faced many
economic recession and impact the
major business and drop the
performance of company. Due to this
digital transformation change will be
quite difficult to implement this.
 Competition is being big threat that
gives the major threat to the market
share of the Tesco. According to give
more competition to other companies,
Tesco has given more competition
through bringing digital change in the
management.
Question 2
Identifying the key areas of stakeholders that resistance to planned change
Stakeholders can be described as a party which pertains interest in an organization and is
affected by managerial decisions of business (Chaudhury and et.al., 2016). It is typically a
corporation of investors, customers, suppliers, employees as well as government. Hence, such
stakeholders can be internal or external to an enterprise. While considering impact of managerial
decision of Tesco in context to digital transformation, following things are be stated:
 Employees: Employees are the one who have to ultimately perform operations or tasks in
relevance to any strategies that is formulated by managerial team of an organization.
Hence, while formulating strategies for digital transformation of Tesco it is essential to
encourage employees to be an active participant of such transformation procedure. It is
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critically required to communicate working staff of a company regarding its future
planning and implement training activities because performance level of employees of a
company pertains huge impact on success or failure of strategical change of Tesco.
Hence, employee management serves as a primary responsibility for leading change.
 Managers: Implementation of change in an organization requires huge efforts of
managers. As, managers are responsible for effective implementation and success of such
changing strategies. Hence, digital transformation of Tesco pertains major influence on
its managers as managers are required to effectively monitor performance of business by
implementation of changes that are required. It leads to growth and expansion of an
enterprise in longer run. Managers are responsible for planning regarding tasks that is to
be performed in a business and serves as a disturbance handler. Essential role is played
by managers in this transformational efforts. Manager of a firm plays a key role in
context to identification of issues and determination of potential resolutions.
 Investors: Investors are highly affected by operations of business and its profitability due
to involvement of high amount of monetary value in an organization. Hence, it can be
stated that investors are majorly interested in strategical change of business as its success
or failure pertains huge impact on return of investors (Cheese, 2016). Digital
transformation of Tesco will enhance its profitability in an upcoming period and ensures
higher sustainability of business. Reason is that digital transformation id highly required
in this constantly changing digital era and it ensures higher level of customer engagement
as satisfaction level of customer improvises. It helps company in earning higher
profitability which indicates that an organization is a potential platform for investors for
investment of fund.
 Customers: Implementation of strategies for digital transformation of an organization
enhances quality of services that is provided by a company to its customers. Hence,
satisfaction level of customers improve which increases their loyalty towards brand. It
ultimately results in enhancement of level of profitability of an enterprise. It helps
company to be a market leader and provides competitive edge to business. Further, it can
be stated that brand image and attractiveness in the perspective of customers increase due
to implementation of changing strategies for transformation of a company digitally.
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The areas where main area that is support the resistance need to be identified into proper manner
and that leads to certain complication in bringing new changes and policies. The following are
the areas of Tesco are-
 Employees- These are main areas where organisation is need to be consider and require
lots of efforts and time. As, for the company Tesco, this is area need to be analysed in
proper manner and make necessary to adopt the changes (Chung and et.al., 2017). As,
they are going to do work on ground level and they usually resist to make change in
management process.
 Management policies- This is main area that resist in change in management and will be
difficult to make any major changes in the company. This is necessary to consider this as
they are quite rigid and difficult to implement any important changes in the process.
Stakeholder has to face many issues regarding the many
The strategies that used in resistance to changes and that could be managed in the
management of organisation. These strategies will help in achieving the better change
and remove the obstacle of resistance in change in the company. In the company Tesco,
these strategies will help in bringing the managed process and facilitates the effective
working. Following are the ways-
 Communication- Many times the problems exist in the organisation because of
lack of communication between top management and employees (Dalcher, 2016).
This leads to miscommunication and confusion among them and this also become
problem in making any changes in company. Through effective communication
this could be solved easily and make the employees comfortable and relaxed. In
the company Tesco, the transformational change could be applied in the firm and
will remove the resistance in change among employees.
 Leadership commitment- This is important way to bring any major change in
the firm as this play necessary role in order to achieve the target. This consists a
style that exist in any manager who has this quality and makes essential change in
the behaviour of employees. In the company Tesco, efficient leader will able to
bring the positive change by inspiring through their act (Ellis, 2016). As,
convincing the employees about accepting digital change in management could be
bring only by effective leadership role played by leader in organisation.
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Question 3
Evaluating the issues that impact the change of process through different ways
The company has changed the major management process in terms of giving the best
experience to its costumer and providing the better services to them. This is important policies
that really to be alter as per the time and demand in the market. As “Digital transformation” is
big and positive change that comes in the organisation and leads to success and growth in near
future. The main motive of this is to bring and transform the new technology as this important
for company to consider this stages. As due to this modification in the process will lead to
important changes in the company. The issues that has been faced by Tesco while bringing this
innovation and through that it overcome this issue are Knowledge Management, Knowledge
tracking and Knowledge migration. The ways through which this change has been managed are-
Knowledge management is main reason is to improve the organisation 's efficiency and
save knowledge within the firm. Through this company able to identify, capture and create the
knowledge in the organisation. In Tesco, this knowledge management is able to manage the
process are as follows-
 This management will help in improving the efficiency in company through
accumulating the knowledge to employees in better manner (Guthrie, Manes-Rossi and
Orelli, 2017). This also leads to proper management by providing the whole information
to them about their respective change in the organisation.
 It will facilitate in increasing the collaboration among employees and concentrate on
providing best service to the costumer. This transformational change “Digital
Technology” in management needs to be updated according to the various ways. To
educate and providing trainings to the employees is also important to be done.
 To managing the whole process and providing the organisational knowledge to its
employees will increase awareness about new policies. Giving the main advantages to the
firm will lead to employee on-boarding as this going to facilitates in maintaining the firm.
To guide them properly is necessary and accordingly provide the training to them.
Knowledge tracking refers to measuring the performance and knowledge of employees at
specific level and that promotes the efficiency in organisation. In the Tesco, this change will give
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major impact the company and through which it able to manage this to ensure better experience.
Following are the ways through which it could be control-
 To observe the change in the employees performance and behaviour that how well they
are understanding the knowledge that is provided by the company (Jasińska, 2020). This
is essential to monitor their day to day activities at regular basis.
 Maintaining the overall effectiveness in the performance of employees will help the
organisation to check whether this change is positive or not at bigger scale. This is
necessary to make them understand the need to bring this change in the management
process.
 Covering all aspect of monitoring the task of employees will facilitates in providing
better output. Some methods are there which will be useful in measuring their task and
important as well to ensure better productivity in the company (Schiuma and Lerro,
2017). As, bringing new technology is necessary and need to learned by employees so
that they can perform efficiently.
Knowledge migration refers to the giving the ability to build the comprehensible knowledge base
in sales force. This is service that leads to many ways that encourage self service model. The
way it manages in the organisation are as follows-
 It helps in managing the whole issue and change in management and that facilitates in
achievement of task and objectives. This will simply provide the collection of different
ideas and simply apply to the employees.
 Digital change will help in building the new knowledge in employees and it is important
to fulfil it in order to achieve the objectives (Johnson and et.al., 2016). Some important
method will help the company to promote the understanding and knowledge among them
and that leads to proper management activities and functions.
 The importance to bring this change is to develop the need of this technology and also
ensure that all employees are able to understand this concept so that they effectively able
to perform. Some mandatory changes need to be done by organisation to facilitate them
to educate them from new techniques and innovation. This is necessary to build that
confidence and motivations among employees so that they could able to face the
challenges.
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Question 4
Analysing the models that plan the change in management
In managing the changes in the organisation there are many ways that company needs to
be look at and must provide with various methods to monitor it in better way. The new
innovation that brings into the management will impact the business process (Rosenbaum, More
and Steane, 2018). Positive change is necessary in every company and must be properly
managed and monitor by senior management or top management. The models are there which
need to be implemented are Kurt lewin's change model and McKinsey 7 model.
Kurt Lewin's change model concern with three steps such as Unfreezing, Changing,
Refreezing. This model will modify the changes in management process and serve modern
change models. Three steps are as follows are-
 Unfreezing- This concern with creating the awareness about the change to the
employees before applying it to the management. Making the best way to understand the
need of change in organisation must be properly communicate to them so that they could
easily understand the requirement. For the Tesco, this is important for senior manager to
make the employees aware about the need of digital change in business. This is essential
for senior manager to examine the behaviour and create that environment for employees
to take advantages of it.
 Changing- This starts with move to other step and recognize the change in the process
and transition new state of being in the nature (Lenz and Viola, 2017). This is difficult to
change the environment of organisation in better way as it require lots of effort and
hardship to implement this in business process. Some major struggle is to make it
carefully planned and executed and this process is quite important in order to achieve the
best results. Some needs and requirement are important to change in management
process. The is the best to make this change is to increase the communication with
employees and make them understand properly about whole concept of innovation.
 Refreezing- This is final stage of this model where it symbolize the act of reinforcing,
stabilizing the new stage after the stage. This refers to sustain the change and consider it
as the goal of company and no longer resist the forces. It is necessary to make them
implemented with appropriate steps and that dominant the behaviour and freeze these
new changes. For the company Tesco, they can connect into the culture by identifying
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the change and barriers. As, company is emerging the change of digital transformation
than it is important to provide them training related to that change.
The other model that is important to implement in the organisation in changing the business
process. The other model is McKinsey model that is developed to connected seven areas such as
Structure, Strategy, Skills and Staff, Systems and Shared values (Mangundjaya, 2019). It will
help in managing the organisational change and implementing new strategy. In the company
Tesco, this model will help the senior manager to adopt the change. Following are the factors-
 Strategy- This is developed by firm to achieve the sustain competitive advantages and
that successfully implemented the market. In the company Tesco, sound strategy is able
to articulate the long terms and will useful in mission, vision. The digital change in the
market will help the employees to achieve new skills and experience in working and
proper strategy to apply in organisation will useful for both.
 Structure- This represent the way of business divisions and units that are organised and
involves the information. It proofs as most visible method to change the framework in
company. In the company Tesco, this structure will help in maintaining the best way to
understand the need of this innovation in the management and Digital change is very
new idea and consist many changes.
 Systems- This refers to certain processes and procedure of company and how decision
needs to be achieved. In the company Tesco, this change require lots of modification in
all activities and functions as everything is going online store and making cashless
options for costumer will require many alteration. So, this has to be properly systematic
and defined to achieve that (Marzec, 2019).
 Skills- It concern with abilities that employees and competencies during any
organisational change. In the company Tesco, this skill must be very to bring this new
change and all relevant skills and capabilities need to be acquired to do the task. The
knowledge of digital world and its different methods and applications should be clear to
the employees. The expected output could be fulfil only by proper knowledge among
employees.
 Staff- This concerned with type of employees that is being recruited, trained and
motivated by organisation to compete the desired changes. In the Tesco, this element
become necessary in future terms as this facilitates in completing the working in the firm
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as the requirement of proper skilled and qualified employees are important to accomplish
the task. The need to give proper attention on tier qualification, skills will facilitate in
competing the change in organisation.
 Style- These termed as how well top managers interact the manager to their employees
about concerned topic (Robinson and Gilfillan, 2017). In the company Tesco, the proper
implementation is could be possible only by the performance of senior level managers as
they are interacting with employees and make this task possible through their act. Some
necessary changes need to be done by top management and accordingly the performance
of employees is decided and maintained.
 Shared values- This is core element of 7s Model where it consist of norms and
standards that able to guide the employees to perform in the firm. In the companies
Tesco, this element decides the overall efficiency and effectiveness. As, the need to
adopt the change will facilitate in achieving the change because senior managers has the
responsibility to make employees aware about the new change in the company.
CONCLUSION
From the report it has been concluded that organisational change management is one of
essential technique for managing an individual side of change. Managing change engrosses
preparing along with supporting manpower, devising necessary steps for change together with
monitoring pre- or post-change practices for ensuring successful execution. One of change is
transformational change that is challenging change type which needs multiple degree of
cooperation and different suggestions. Nature of change process includes any alteration in
elements of company, different types of forces and hence forth. Change is natural and is always
keep changing that accelerates exponential rate. Stakeholders involved in change of entity are
employees, managers and so on. There are key steps adopted by business managers for the
purpose of managing change in context to issues which surrounded knowledge management and
migration. Letwin and McKinsey are two model which assist managers in diagnosing as well as
planning change in the business.
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