Report on Understanding and Leading Change: Strategy and Operations

This report examines change management within organizations, focusing on a comparative analysis of Toyota and Jaguar. It begins by exploring how various internal and external drivers, such as political, social, competitive, economic, and technological influences, impact the strategies and operations of both companies. The report then delves into the effects of these drivers on leadership, team dynamics, and individual behavior, utilizing the Bohner and Arnold Change Impact Analysis model to assess these impacts. Furthermore, it evaluates measures to mitigate the negative effects of change on organizational behavior. Task 2 delves into the barriers to change and their influence on leadership decision-making, utilizing force field analysis to identify driving and resisting forces. Finally, the report explores different leadership approaches to navigate and manage change effectively, offering recommendations for successful change implementation. The report uses the provided assignment brief to address the learning outcomes and assessment criteria, offering a comprehensive overview of the topic.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparing various organisations that has been an impact of change on the strategy and
operations of the company......................................................................................................1
P2. Evaluation of the ways in which internal and external drivers of change affect leadership,
team and individual behaviour...............................................................................................4
P3. Evaluation measures that can be taken to minimize negative impact of change on
organisational behaviour........................................................................................................8
M1. Assessing the various drivers for change and types of organisational change...............8
M2. Evaluation of response of organisation to change by applying appropriate theories and
models...................................................................................................................................10
D1. Conclusion and recommendations.................................................................................11
TASK 2..........................................................................................................................................12
P4. Explaining various barriers for change and how they influence leadership decision-
making..................................................................................................................................12
M 3. Utilising the force field analysis for analysing the driving as well as resisting forces and
the way they influence decision making. ............................................................................12
D 2. Evaluating the uses of force field analysis in context of meeting organisational
objectives..............................................................................................................................13
TASK 3..........................................................................................................................................13
P5. Different leadership approaches to deal with change.....................................................13
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Change management in the organisation is a procedure and collective term of all
approaches to support and prepare individuals, teams and industry in making change in
company. The report is based on Toyota, Japan's biggest car company that was founded in 1933
by Kiichiro Toyoda. The industry is headquartered in Toyota City, Aichi and in Tokyo.
The report will evaluate the ways in which the internal and external drivers of the
changes have impact on leadership, team and individuals of Toyota and some suggestions will be
given to thecompany to overcome or move ahead with the changes. Report compares two
organisation; Toyota and Jaguar to understand how they respond to the changes. Some measures
also will identify that helps to minimize the negative impact of the change in an organization.
TASK 1
P1. Comparing various organisations that has been an impact of change on the strategy and
operations of the company.
Organisational change is the process of changing strategies, procedure, processes, culture
and technologies of Toyota.
Illustration 1: TOYOTA
(Source : Car manufacturing
industry, 2018)

Bohner and Arnold change impact analysis model- The change impact analysis is
identifyied by Bohner and Arnold as identifying the potential consequences of a change (Cullen-
Lester and Yammarino, 2016). There are three types of impact analysis techniques introduced by
both the analysts;
Traceability- The traceability of IA establishes links between specification, requirement,
design elements. It allows the scope of organisational change to be analysed, determined and
monitored. Traceability automatically marks the changes in the company so that it is clear which
people and operations are affected by a change.
Dependency- In dependence variant of IA links between variables, parts, modules to
determine the consequences of an initiating change. Under this technique, when it is clear in
advance who and what are dependent upon each other, it is immediately clear that what affects
changes will have.
Experiential- This variant of IA focuses on the fact that the impact of changes is related
to how experts of industry experience this. This help in understand that what happened in
previous, similar situation and what was its impact?
There are various drivers of changes that make impact on strategy and operations of
Toyota and Jaguar that will be analyse on the basis of Bohner and Arnold Change Impact
Analysis;
Driver of Change Impact on Toyota Impact on Jaguar
Political and social influences
As the company is global the
political and social change
affect in both positive and
negative manner. Industry's
strategies and procedure is
changing according to where
the company is being operated.
Organisation is able to produce
products according to the
demand, taste and price points.
The impact of political and
social changes on the operation
and strategy of company is in
mix manner.
The constant innovation led
them to manage social change
and their pricing strategy
segment which narrow th
market and strong science and
educational culture helps them

It gives strong motivation for
globalization. The impact has
provided the organisations
employees with better
motivation and guidance.
to manage social changes
(Cummings, Bridgman and
Brown, 2016).
The impact on political
changes on people of Jaguar
are negative as it create
negative environment by
influencing the people of the
organisation in following
wrong working practices and
not following the desired
policies and procedures.
Competition
Competition impact Toyota in
both positive and negative
ways. The competition is high
and to gain a competitive edge
firm has to work on upgrading
themselves and have to make
changes constantly.
The company always believes
in continuous change and
mould the operations and
strategies accordingly with the
change. The impact of
competition has made the
organisation develop more
products and services to satisfy
its consumer needs. Also, it
has helped the organisation to
On the other hand, Jaguar
offers their products on only
premium pricing the change of
competition do affect their
organisational strategy but
only in one segment.
The managers and supervisors
of Jaguar Bolster the hard
skills and develop multiple
channels of communications.

be a better service provider.
Economic changes
The economic changes have
negative impact on the
operations and strategies of
Toyota.The effective strategies
are developed by hiring
efficient people. It cuts down
the cost of production and
labour. It overall improves the
organisational efficiency and
growth.
The rapid change in needs and
economic condition is one of
the critical aspect and can
affect the operation and change
process of Jaguar in negative
manner (Doppelt, 2017).
They need to understand the
employee's need and economic
conditions are met in most
suitable manner. It is important
to implement the strategy in
order to reduce CAPEX and
OPEX.
Technological advancement
This change gives Toyota a
competitive edge and impact
in positive manner. Toyota has
surrounded itself with
innovative and creative
designers and engineers to
keep that competitive edge
alive (Espedal, 2017).
It affects the people of Toyota
in positively as they get
opportunities to learn more
and enhance their skills.
In comparison, Jaguar also
adopt this technological
advancement change with the
demand of world. For instance,
the change process involve in
operations and strategies are
focus on being ahead with
utilization and providing the
latest technology in their
product to consumers.

P2. Evaluation of the ways in which internal and external drivers of change affect leadership,
team and individual behaviour
Factors Leadership
behaviour
Team behaviour Individual
behaviour
Internal drivers Resource
Management
Change in
Resources are
essential to
streamlining the
change process
and it can
enhance the
human skills and
financial
resources as well.
It may affect
leadership in
positive manner
and leaders and
managers can
adopt the changes
with high skill of
team.
This change
affect team
behaviour by
focusing on
diverse
improvement
method.
The organisation
need to open up
communication
for effective
utilization of new
resources and for
enhancing the
behaviour of team
of both the
organisation.
Change in
resources are
responsible for
proper evaluation
of employees
behaviour
towards change.
Toyota need to
improve their
utilization of
resources that
help in easily
design the change
action that is
beneficial for
individuals in the
form of
operational
advancement.
Along with it, the
firm need to be
focused on its
employees and
organisational
resources in order

to improve its
products and
consumer
services.
Organisational
culture
The culture of
organisation
affect the
behaviour of
leadership as the
style of leadership
is depended upon
organisational
culture.
In the case of
Toyota; they need
to adopt the new
changes that is
going to make the
leadership work
effectively and
their behaviour
towards work will
consistent.
The culture of
Toyota includes
teamwork in their
basic
characteristic.
They always
motivate
employees to
work in team and
It has
collaborative
company culture
that basically
relies heavily on
team work
(Hassan, 2018).
On the other hand
jaguar's culture is
strongly
following their
beliefs and values
Individual
employee
perception differs
due to differences
in cultural
aspects.
Jaguar has
creative company
culture in which
leader allows
individuals to
utilize their
creativity and
encourage them to
think out of the
box.
Toyota's
organisational
culture guide
individuals and
give them a sense
of direction to
understand and
manage change.
The culture has

impacted the
leadership many
ways as it has
provided the
leadership with
new different
ways to tackle
problems. Along
with it, the
organisation's
leadership has
found effective
ways to deal with
problems and find
its solutions as
well.
External drivers Adopting new
technologies
The change of
technological
advancement and
being with new
emerging
technology is
important for a
leader. This allow
leader to develop
new strategies to
cope with the
changes
effectively and
Toyota and
Jaguar constantly
adopt new
technologies in
the organisation
that is important
for innovation
and meet
consumer demand
but the
continuous
change is difficult
to adopt by team
New technologies
affect individuals
as well but they
can train easily by
organisation to
adapt and learn
the changes. This
change is
beneficial for
individuals to
enhance their
skills and
knowledge by

able to manage
and lead people
effectively.
Technologies
have impacted the
leadership in
various ways as
the arrival of new
technology has
provided the
leadership with
new options and
value. Also,
technology has
made things easy
for a leader.
and that have
negative impact
on their behaviour
towards their
work. Both the
companies have
to cope with this
change by
enabling effective
leadership that
ensure team is
having proper
training and
development.
proper training.
Toyota and jaguar
have to improve
the
communication
style that helps
leader or manager
to inform
individuals about
new techniques of
organisation in
order to make
them understand
the level of
psychological
effect of the
change.
P3. Evaluation measures that can be taken to minimize negative impact of change on
organisational behaviour
To minimize the negative impact of change Toyota can adopt various strategies. It is
essential for the organisation to minimize negative impact of the changes in Toyota to manage
the overall organisational behaviour (Lawrence, 2015). It can be done through;
Provide effective training- Training is one of the most effective foremost measure that
helps Toyota to minimize the negative impact. After passing information about the changes
within the organisation, Toyota has to conduct training and development programmes that help
in analysing where the need is arising of training and the level of training needed by employees.
Communicate the change and motivation- It is the most essential measure that can be
used by Toyota to minimizing the negative impact of changes. They need to implement effective

structure that open up and simplify the communication channel by that top level can easily
communicate the specific changes to low level. The leader is responsible for motivate them
through communication style and managers are responsible for providing needed resources to
drive them and manage them in effective manner (Mupepi, Mupepi and Mupepi, 2019).
M1. Assessing the various drivers for change and types of organisational change
The driver for change in the organisation are; internal and external drivers. Internal forces
include; systematic forces, structural changes of an organisation, change in technology, etc. and
external drivers for change include; political, economical, technological, governmental
regulations, change in needs and preferences of consumers and competitive pressure.
Political and Social factor- Political factor include; tax policy, labour law, trade
restrictions, political stability, etc. Social factor are lifestyles, values, change in trend, change in
consumer preferences, need and demand, etc. Personal values affect employee's need, motivation
and priorities After the crisis of 2007, government of UK has changed rules and regulations for
developing companies and allocation of resources. In order to meet the criteria of government
laws and legislations, Toyota need to make changes in their operations for purchasing of crude
oil.
Economical factor-It includes; labour costs, consumer behaviour, interest rates, inflation
rate, etc. For example; Changes in tax rate and currency exchange influence the business
planning, people and process that are responsible for operations, developing and implementing
strategies of Toyota and to overcome modification that are required by taking proactive decisions
(Nelson-Brantley and et.al., 2018). Economical factor affect business in terms of low profitablity
growth and low income growth.
Technological advancement: For example; manufacturing industries such as Jaguar have
automated their operations with computerized numerical control, robotics, computerized process
of designing and drafting engineering drawing of goods. Organisation consists a host of
computerized technologies that are used to obtain, store communicate information, etc. with the
help of this technology placement it helps business to make new changes and adopt new changes
and new technology that affect the business effective growth management changes. .
Types of change- There are various type of organisational change that has impact on
organisational culture, strategy and operations;

Strategic and Structural change- This type of change is usually implemented at the
organisational level, that may affect different components of a company. Strategic change
includes making change to overall strategy, mission, goals and purpose of an organisation
(Peters, 2019). Multinational company like Toyota is bringing change in the overall
organisational philosophy by taking a step ahead for availing the advantage of being a leaner
organisation.
Structural changes involve the hierarchy of authority, goals, structural characteristics,
management system and administrative procedures. Toyota often finds it necessary to redesign
the structure of the industry due to influences from the external environment. Almost all the
changes in how Toyota is managed falls under this category of structural change (Salman and
Broten, 2017).
Process and People oriented change- This change often related to organisation's
production process or how the company assembles products or deliver services. Toyota may
need to re-engineer processes to achieve optimum workflow and productivity. The people
oriented change alters the behaviour, attitude, performance or skill of employees in the
organisation (Schedlitzki and Edwards, 2017). It involves; motivating, communicating, leading
and interacting within the teams.
M2. Evaluation of response of organisation to change by applying appropriate theories and
models
There are various theories and models that are used to respond to the changes but the best
suitable model is Bruke Litwin.
Burke Litwin Model
The Burke Litwin change model strives to bring change in the performance of Toyota and
the employees and of team. It establishes the link between internal and external drivers that
affect performance (Smith, Lewis and Tushman, 2016). This model is consisted 12
organisational elements;
External environment- The key external factor such as; Government and political and
technological are the key external factor that have direct and indirect impact on the Toyota.
Mission and Strategy- The mission of Toyota is To attract and attain customers with high
valued products and quality services and the strategies are according to it to fulfil this mission.

Leadership- Toyota followed situational leadership that works according to the situations and
crises in the organisation.
Organisational culture- Toyota's organisational culture defines the response of employees to
challenges the industry face in the market. The culture of organisation support innovation and
continuous improvement.
Task & Skill- this is the another element that helps to adopt new change within the company.
individual dedication and skills helps company to make effective changes and also adopt good
environment for the business.
Values and needs of Individual- this is the another element that helps company to adopt new
changes within the company environment. for that, company needs to fulfill individual personal
as well as professional needs to make them happy and satisfied. this process can help to adopt
new changes within environment.
Motivation level- motivation level can also helps to resist change and adopt better environment
that helps to keep environment positive and helps to adopt new changes. motivation level helps
to accept changes and take better strategies to resist new changes and growth.
Individual and overall performance- it is the another factor that helps company adopt new
changes. through individual overall performance can make good changes for the change.
individual leader or employee can easily accept changes if they all are well motivated and
confident towards their goals and services.
The common reason that is included for failing of change initiative is that all areas in
cited organisation is therefore affected due to it. This model will help in revealing out the areas
of Toyota that is going to be affected and also their interrelation with each other.
D1. Conclusion and recommendations
It has been concluded from above identification and analysis that change management
have positive as well as negative effect on organisations and on their performance. Toyota adopt
technological advancement in order to adopt the technical change. The negative impact of the
changes on Toyota and jaguar include; Fear and stress in employees and creating conflict
environment, etc. On the other side, the firm also make changes its pricing strategy to gain high
competitive advantages in marketplace (Cullen-Lester and Yammarino, 2016). It is

recommended to Toyota to use various theories and models to effectively plan and apply the
change impact analysis in the company;
Kaizen- This means that change for a better and this continuous model also helps to
improve flow of operations as well as process. This method boost up the morale of employees in
order to actively participate in the change.
TASK 2
P4. Explaining various barriers for change and how they influence leadership decision-making
Poor communication- In Toyota the major barrier in adoption of effective change is
there is no effective communication style. It results in less knowledge of particular changes in
Toyota if leaders is not able to properly communicate the changes that can create stress and
conflict in Toyota.
Lack of involvement of employees- The employees have fear of change in Toyota and
they come in stress in certain situation that is because their involvement is less in process of
change and lack of involvement create less trust and accepting change and working effectively (5
Barriers of change management, 2018).
Ineffective leadership- Leaders are responsible for communicating and motivating
employees to work better and encourage them to accept the changes and also responsible for
leading them towards the change. On the other side, leaders should provide proper guidance to
them in order to deal with the change such that provide training sessions (Cummings, Bridgman
and Brown, 2016).
In order to overcome this, Force Field Analysis is the change process help Toyota to
implement the changes. This is a method in which a team as well as a firm can easily predict in
advance what resistance are to be occurring when the changes are proposed. Therefore, Force
field analysis also helps Toyota in order to manage the change as well as develop strategies for
implementing a change (Doppelt, 2017). This model influence leadership decision making by
analysing the force driving movements that helps to achieve the goals and restraining movements
towards a goal i.e. hindering forces.

M 3. Utilising the force field analysis for analysing the driving as well as resisting forces and the
way they influence decision making.
Restraining forces within force field analysis are the factors acting to restrain or decrease
the driving forces. These may include apathy, hostility, and poor maintenance of equipment. In
addition to this driving forces are those which effects situation and drive organisation towards
particular direction. Those drivers which are supporting of a stated goal or objective, they tend to
initiate a change and keep it going. For instance, in context of Toyota the factors which might
encourage firm to bring change at workplace are competition , customer demand, decline in sales
and profitability. Whereas, few employees in an enterprise might refuse to accept change due to
fear of losing job or any other threat etc.
D 2. Evaluating the uses of force field analysis in context of meeting organisational objectives.
Force field analysis is useful in context of determining the factors which might force an
enterprise to implement change. It helps management in identifying the requirement of change at
workplace. Force field analysis is useful technique for addressing those factors which might
resist change.
TASK 3
P5. Different leadership approaches to deal with change

Notes:
Situational Leadership: The approach of situational leadership provides Toyota with excellent
opportunities to develop and maintain a style of leadership which is effective and efficient at the
same time.This approach was developed by Paul Hersey and Kenneth Blanchard. It is often used
by Toyota to determine its leadership qualities and judgements. Below mentioned are the ways in
which this approach helps Toyota's leadership and management:
Telling and Directing: During directing and telling the leader of Toyota makes the required
decisions and informs other about it. This is also known as micro management and is one of the
finest approaches in leading an organisation towards change. This helps Toyota in understanding
the needs of its stakeholders and organisation as well.
Participating and Supporting: From participating and supporting the leader ensures that he is
participating and supporting in each and every organised activity of the organisation and its
employees. The followers and employers are passed with more responsibility. The leader does
provides the direction but the decisions are up to the followers.
Selling and Coaching: In selling and coaching the inputs are asked by the employees or the

followers where the decisions are made by the Toyota's leaders and managers. Also, the leaders
and managers are involved in day to day activities.
Notes:
Systems Leadership: The leadership style make use of such principles about the behaviours of
human to create good leadership models, social process, systems design and organisational
strategy. The leaders in this style are able to predict the behaviours of the people with effective
tools and strategies. Below mentioned are the ways in which systems leadership helps Toyota:
By organising the employee's mindset: The system's approach makes sure that the employees
are working as per their natural potential. By avoiding a number of complications and providing
them a systematic way to work properly. It helps the employees of Toyota to work with an
organised mindset.

Developing individual comprehension: The system's leadership style makes sure that the
leader's of Toyota have better understanding of their overall staff and employees. It helps the
employees to develop a better understanding and comprehension and clear their path in
achieving desired goals and objectives.
Guiding: The system's approaches guides the employees towards better understanding of the
organisational structure and its leadership. It creates required awareness and make them have a
better knowledge of the overall organisations functions and workings. In turn, it makes Toyota to
function better and achieve desired goals and objectives.
Notes:
Effective leadership styles and approaches assists in developing environmental culture in a way
that it delivers motivation and satisfaction to employees. Appropriate actions are directed
through various leadership approaches which helps in effectively driving the change within the
organization
Critical analysis

Both the leadership approaches are essential and effective in managing change within Toyota,
situational leadership approach helps in managing a change in certain situation as arises for
example at the time of some serious issues. On the other hand system approach helps to manage
change by measuring the potential of each and individual. The situational approach has a major
limitation which is lack of effectiveness in leadership skills. The system approach is also not
much useful when there is no individual with good potential.

CONCLUSION
From the above report it has been concluded that constant changes are important in every
organisation. The changes may have negative or positive effect. The report has been analysed
that Toyota need technological advancement, effective leadership strategy. It had been concluded
that drivers of a change definitely affect the company's strategy as well as its operations and
there are many ways through which these negative impact can be minimized by various models.
There are various types of organisational changes such as; structural, strategic, people and
process oriented.

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