Assessment Report: Understanding and Leading Organizational Changes

This report delves into the complexities of organizational change and leadership, using Marks and Spencer and Unilever as case studies. It begins by examining the various drivers of change, both internal and external, and their impact on organizational operations and strategies. The report then evaluates how these drivers influence leadership, team dynamics, and individual behaviors, also addressing the negative consequences of change and proposing mitigation strategies. Furthermore, it explores the barriers to change and how to influence decision-making through leadership, including the application of force field analysis. Finally, the report discusses different leadership approaches for navigating organizational change, providing a comprehensive overview of change management principles and practices.

UNDERSTANDING AND
LEADING CHANGES

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1 ..............................................................................................................................................1
Various examples of drivers that impact on organisational change. ..........................................1
Task 2 ..............................................................................................................................................3
Evaluate internal or external drivers of change that affect leadership, team and individual
behaviours....................................................................................................................................3
The negative impact of changes on organizational behaviour.....................................................5
TASK 3............................................................................................................................................7
Barriers to change and influencing decision-making to leadership.............................................7
Force field analysis for influencing organization decision-making ............................................8
TASK 4. ........................................................................................................................................10
leadership approaches to deal with organisational contexts......................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Business changes can lead to an organisation to success and can impacts its sustainability in
long run. Change in organisation allows company to comply with its strategies and produce new
plans so that it acquires sustainability in competitive market. This study is focus on
organisations that are Mark and Spence and Unilever. M&S and Unilever is British multinational
company with its headquarters in London. M&S specialises in food products, apparels and home
products. While, Unilever products largely include energy drinks, beauty or personal care
products, healthcare products and also largest soap producer around the world. The report is
focus on large companies of UK that are affected by covid-19 with explanation of various drivers
for changes that impact an organisation's operations and strategies. Further, the report elaborate
about external or internal drivers of changes that influence leadership, team and individual
behaviours within an organisation. The report also discuss measures that must be taken to lower
down negative impact. Lastly, elaboration of various barriers to changes that influences
leadership and various leadership approaches that dealing with change in organisational contexts.
Task 1
Various examples of drivers that impact on organisational change.
There are changes that occure in organisations and require maximum restructuring. Changes
can bring negaive or positive impact. Change Management refer as methods that involve both
factors like external or internal in which it determines changes. In below paragraph comparison
is done for two companies namely Unilever and Marks and Spencer. Unilever is u\mulitnational
ocmpanie that operates in different types of products that majorly includes food products, home
apparels, baby products and furnitures et. While, M&S is also one of the leading brand in UK
and operates in cloths and fashion apparels and have its own brand.
Importance of change management: Change management is important for many key reasons that
explain below:
Factors related with external:
External factors is considered as a plan of action that play large part in structure change.
Globalization and constant growth in new digital method are try to force companies to react.
Proper handling of such external factors is likely to threaten success of an organisation.
Enable functional changes:
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Majority of companies who functions within modern organisation is likely to pay attetnion to
change management that includes following key points:
Keep track of all related issues and provide solutions.
Enhance services to internal and external factors.
Strategic plan to overall objectives of industries.
Impact analysis:
Impact analysis is defined as change effect analysis and include detailed study of activities of an
organization and developed by Robert S. Arnold and Shawn A Bohner. According to this
analysis, goods and services determine and examines its potential impacts over a time. As per
Bohner and Arnold, it indentifies that there main three types of impacts analysis:
Traceability
This variants connect between specifications, need, tests and design elements. Traceability
allows scope of any modifications that to be analysed and identified. If any team of an
organisation will acknowledge effects of changes than it enable them to react instantly and
efficiently.
Dependency
In dependency elements, it connects parts of relationship of between variables and parts and
clear connections to both of them. Variants in dependency take place at more detailed level.
Experiential
Variant of experiential pays more attention to fact that at how level of changes is powerfully
connected to experience of experts. Knowledge of those experts play important role in these
segments.
Both companies make various changes in their goal, objectives, policies etc.
Strategies – Unilever company now shift its focuses to more on its websites, while M&S also
enlarge its digital websites because of negative impact of covid. Hence, both companies shifts
from its physical stores to online.
Goals – Unilever improve its online sales by 80 percent during Covid. While M&S helps
transform 1000 of local communities with its goods and services.
With the help of PESTLE analysis, external factor is determined of both companies:
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PEST analysis : PEST analysis is used to examine various external factors that includes
political, social, economical and technological that impact an organisation. Let's discuss more in
detail about these factors.
Political
Political factors includes government rules and policies that may impact on an organisation.
Political stability, fiscal policy, trade policy and taxation polices are also involve in these factors.
Unilever is one of the largest company that now mark its presence globally. As Covid situation
arises, Unilever must abide by the frameworks that is set by Food and Drug administration, for
example, company should avoid to open stores for longer hours (Klofsten and et.al 2019). While,
Mark and Spencer that mainly operates in UK but also has many locations abroad but because of
Covid, M&S unable to operates its business in another countries that hugely effect its
profitability in long run. Hence, both companies start increasing its online business to overcome
the impact of Covid.
Economical
Economical factors impact on economy and its performance as a whole that directly impact
on profitability of an organisation. That factors includes interest rates, raw materiel and foreign
exchange rate. Unilever faces sharp fluctuations in currency market because of Covid. As a
result, Unilever unable to expand its business and its sales are also decreasing from last year
(Putting purposes into practice.2021). As financial crises arises because of Covid and lead
decrease in demand for high quality products for M&S as consumer has low disposable income
and its home and sales were down by 29.9 percent (Covid-19 efffect:Mark and Spencer to slash
7,000 jobs.2021). As a result, consumers unable to spend on luxurious products (Prange and
Pinho, 2017). Unilever ensure safety of its workplace as well as try to protect incomes and jobs
of all its employees. On the other hand, M&S would try to provide more flexibility and wants its
employees to do multitasking.
Social
These factors mostly pay attention to environment and determine social trends as these help
companies to acknowledge needs and requirements of customers that includes education,
lifestyles, attitudes an cultural trends. Unilever has seen drastic change in demand as because of
Covid, people now prefer more hygiene or in-home food products. Therefore, company are
adopting this type of demand patterns, apart from this company also supports communities with
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donations. M&S also need to change its business plan during Covid situations and just focus on
food and clothing divisions and as as result its food stores traded throughout lock down.
Technological
These factors hugely influence operations of business. Unilever unable to produce new
products as no resources are available that company put in research and development and unable
to capture correct market. Therefore Unilever focus on existing goods and increase its sales
through digital platforms (Liere-Netheler, Vogelsang and Packmohr,2018). M&S need to shut
down its physical stores because of Covid. Hence, M&S stated that its sales are now on track as
it launch an online food services through partnership with Ocado.
SWOT analysis :
Strength
As Unilever is operating almost in 190 countries and has global footprint, hence its presence
nearly not affected by Covid that much. Unilever also enjoy competitive benefits over its closet
competitors like P&C because of its flexible pricing. M&S has been in market since last 136
years and made partnership around the world. Hence, its huge experience in market did not effect
its brand name.
Weaknesses
Apart from strength, Unilever an M&S also faces weaknesses. One of the biggest weakness
of Unilever is that its goods can easily exchanged with substitutes goods. M&S sales are
decreasing in some of its stores by end of 2019 as because of its poor supply chain system and
unavailability of products.
Opportunities
With emergence of digitalisation or globalization, lifestyles of consumers are change to more
western and as a result, company now have tremendous opportunity to diversifies its consumer
base (Sriyakul,,and et.al 2019) .M&S has its online stores but as compare to its competitors like
Amazon, company is far behind. As a result, M&S should focus more on growth of online stores
as people mostly use e-commerce websites.
Threats
The global crisis during Covid severely impacted profitability of Unilever. With lower
disposable income, consumers buying less and focus more to save money. M&S should focus on
its strategy because of huge competition arises in marketplace of UK and across the world.
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Task 2
Evaluate internal or external drivers of change that affect leadership, team and individual
behaviours.
There are many drivers that influence decision of leaders and impact on profitability or
productivity of an organisation. Following are key drivers of internal or external factors:
Internal factor
As this factor is challenging but company have more control over these changes. When an
organisation is restructure then a new management hire or may be a new product is developed.
Key internal factors are:
Employees
Employees are main resources for organisation and its culture. Hence, HSBC have control
who they hire. If company employ wrong staff member in its management then it negatively
impact performance and its overall operations (Gravesand Sarkis, 2018). Therefore, it is vital for
HSBC to develop a strategic hiring process that mainly focuses on making smart recruitment
process. HSBC must select employees that fulfil mission or goal of company and this is
important for maintaining as powerful culture. If employees are well-trained then it will reduce
work load of leadership as it did not affect productivity of company while, less efficient
employees will inlfuence leader's decisions.
If employees work as a team than it brings more efficiency, while chances of conflicts arises in
team if they ignore importance of cooperation.
Individual behaviour can be influence by gender, race, attitude in an organization. Male
domination can effect individuakl behaviour in an organisation.
Support and capability
For a successful organisation its essential that it provides a thorough training to its
employees. All those employees who are supported with proper amount of learning process are
consider as more efficient and fully satisfied with their company. On the other hand, if
employees are not supported then it will influence decision of leaders, teams or individual
behaviours as it will decrease overall performance (Bavik, Bavik and Tang,2017) .
Resources
HSBC must provide employees with all its necessary tools and equipments so that they
perform their job effectively. If company unable to provide their employees with important
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resources then it may lead to conflicts and impact on team or individual behaviours. Therefore,
HSBC need to support employees so that they perform their job effectively.
External factor
These factors tend to be very challenging as company has less control. External factors are
constantly pressurize companies to innovate and adapt those changes. Following are main
external factors that impact leadership, individual behaviours or team:
Economic Situation
Economy is one of the essential factors that influence success of HSBC. All these factors
includes fluctuation rates, economic crises can affect consumption of potential buyers and
directly impact leadership or team behaviours. As economy changes over time and goes through
expansion and contractions, as a result HSBC must carefully plan its strategies and then
implement it (Galvin,and et.al 2018).
Technology
Technology play vital tools in every company. HSBS must create policies and procedures so
that it efficiently determine electronic communications. Providing its employees or leaders with
updated software or devices will enable company to improve employees morale and create more
efficient surroundings to work.
Preferences of customers
Satisfying demand of every customer are must for HSBC as it is important for its survival in
marketplace. HSBC services must fulfilled and served needs of customers and cannot develop
without fulfilling this mission. If HSBC is unable to meet requirements of customers like there
financial services then it will impact on leadership and its decision-making.
Leader must make decision while considering demand of every customer otherwise it will
decrease sales of goods and services.
Team must work as per rules set by leaders so that it will not affect growth of company.
Individual Behaviour also changes as per changing preferences of customer and impact on
demand of goods.
Competition
Competition exists in every type of industries. HSBC must overcome its competition by develop
innovation, better customer services and should understand core advertising skills so that is
attracts more customers. On the other hand, if HSBC is not prepared for its changing competitive
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market then it may negatively influenced company and leadership as market expectation
increases and buyers disloyalty (Shen,and et.al 2018).
The negative impact of changes on organizational behaviour
Ensuring the negative impact that affected to employee and promoting morale in their
workplace for separating level in the respect of process. This is the following negative impact of
changes in organizational as:
No surprise, please:-
HSBC bank transparency along with open communication for their employee through
which they can create relationship and trust between each other (Poisson, 2019). As changes
could keep them supporting and also bring some strong relationship between manager as well
employee at their working area. For having better platforms and while moving forwards can be
changes that taken place.
Engaging employee:-
The performance management conflicts, an employee can be performing their roles for
developing self-confidence and within their progress. Discuss the strategies that could help them
in improving their performance level in organization or begin with working their dialogue which
might be included various ways moreover agrees on their transition plans.
Create culture of learning:-
Employee in HSBC bank need to learn more about their working and policies in which
they work for gaining more benefits. Where individuals or team taking new challenges and
developing their leadership and functional skills for setting up their future success or helping
next employee.
Burke-Litwen
These process represent the input to organization, external environment, internal
environment, individuals and organizational performance (Radomska and Kozyra, 2020). First
external environment represent the outside of organization in which they are mostly affected and
give their feedback for working with them and gaining huge amount of profits. In HSBC bank
they are externally affected by government laws, consumer behaviour or conditions in
marketplace.
Individuals or organizational performance this factor has overall output of organization
and also commonly represent them with having various different ways including productivity,
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turnover and customer satisfaction. Leadership skills plays important role in developing their
bank and making their more strategies for having their better marketing position (Smartt, Casey
and Ferreira, 2018). Organizational culture norms and value seems to be more important and
having less formal towards mission along with strategies.
Lewin’s three-step model
This models represent simple and vert practical model for understanding their change
process in organization. This can be also widely used for on the basics of changing their many
modern models, such models are discussed below:-
Unfreezing:-
Communication is especially in part of making their development and could keep them
with having better successfully in business. Different ways of thinking people, current level of
acceptability, organizational structure and their behaviours might be examined for employee
which must be important for changing or creating for maintaining competitive advantages.
Changing:-
Implementation and moving towards their works can lead to have their changing in
environment along with working in various policies and procedures. During the changes in steps
people in HSBC learn more about their process, new behaviours or ways of thinking about
working concepts in company (Heinert and Galindo-Gonzalez, 2020). Throughout the process of
employee can be the big reason for having changes and it might be benefited them once for fully
planning.
Refreezing:-
The changes made in process, goals structure and offering many benefits or people in
HSBC could be help or accepted the new norms at their workplace. Positive rewards and
acknowledgements which are often used to reinforce the state because it can believe that
behaviour will likely to be repeated.
TASK 3
Barriers to change and influencing decision-making to leadership
This task states about the different barriers to change and determine their leadership
decision-making from the departmental store. Furthermore, also explain about the Force Field
analysis while by using the driving and resisting forces along with they influenced form
decision-making in stores.
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Liberty is state that have being free within their society from oppressive or control
restrictions by authority on one way life. Presently, company produces a thousand of shoes pairs
throughout one day with high manufacturing units, they also owned exclusive showrooms along
with that high presence in various countries. Liberty manufacturing their bases includes six more
facilities with across of numerous states.
Barriers must be understood by change which could help in business for identifying their
successful and create strategies along with implementing changes. Change is more another
aspects in departmental store such as Liberty and their targets are shifted from one place to
another places for having goodness in organization. Changes in organization might be important
for implementing changes and bring more significant needs to have impact on their organization
structure. Once leader know how to overcome with their barriers effectively, it should be easy to
plan or change in implementing plans (Chukwusa, 2018). Here are some barriers which need to
be changes and decision-making can be taken easily for individuals barriers to be change in
leadership in Liberty store:
lack of employee involvement:-
This is common barriers which needs to be changes while by management for making
their store more effective and leadership can easily take their decision for future implementing.
In general, employee must have to be changes and unless they also involve in working with
change process. Liberty store highly likely that loyal members in team or individuals of
employee will resist their changes. Leaders in organization can bring their more efforts for
making their changes successfully while by involving process as much they can possible. Getting
involves with their employee they must nee to listen to workforce opinion along with that
assuring them that changes are being made that is good for the organization as well for
themselves. Sufficient resources can be drive towards them which should be necessary, through
they can feel comfortable and adjust them with new development in organization.
Effective communication strategies:-
In Liberty some store in different countries they have no effective on communication
strategies. Here leaders also things about once they need to announce about the changes which
have been made in organization and some employee will ready to go with adjustment in new
development policies (Alavi and Gill, 2017). Barriers could be that communication strategies
which make their introduce to be changes, meanwhile leaders in organization must need to stop
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announcing to their team members or individuals. As by them on only it could be easier to know
about what changes have been done and how to be adopted by them as well adjusting.
Organization complexity:-
Liberty store begin to develop them in market and bring their more changes, it could be
done by implementing plans or little changes in complexity of organization structure. It might be
more effective barriers for leader to take their decision-making in organization while because
they are quite difficult for understanding their employee. Leaders can easily break this barriers
by quality, high effective projects along with changes management. It could be wise for making
their organization more complexity furthermore developed them with having various strategies.
Culture shifting planning:-
Sometimes in company planning do not have any ideas about their changes in people and
how they will react with their culture changing (Schauper and et.al., 2020). But for this team
must concentrate on implementing planning to administration structure in which they are
working with having area of responsibilities furthermore reporting structure about their work. In
Liberty leaders sometime can fail to make decisions that might be based on intuitions or feelings
of employee. Hence, for overcoming with this barriers planning team in organization compulsory
for making their profits as per their according and not to overlook on employee feelings in their
work.
Working environment:-
Liberty store leaders mindsets must be clear about their working environment as they
have to reinforce their employee feeling, trigger emotions and highly expectations of work etc.
Employee in organization also need to understand their working area along with feel them
comfortable in which they are working. Leader decision-making must be more clear about their
goals and make different ways to developed their team with sufficient, if they step back than it is
mandatory for leaders to asked question and help them out. Team or individuals employee also
try to understand their leaders feeling and make their organization in gaining huge amount of
profits.
Force field analysis for influencing organization decision-making
Force Field analysis provides framework for looking their factors, influencing various
situation either looking for the driving movements towards achieving organization goals
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