Understanding and Leading Change: A Comprehensive Report

This report analyzes the concepts of understanding and leading change within an organizational context, focusing on the impact of change on business strategies and operations. It examines both internal and external drivers of change, such as technological capacity, employee morale, customer satisfaction, and competitive pressures, and their influence on leadership and individual behavior within companies like Haier and Whirlpool. The report further explores measures to minimize negative impacts of change, different barriers to change, and their influence on leadership decision-making. It concludes by interpreting various leadership approaches to deal with organizational changes, providing a comprehensive overview of change management principles and practices.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Impact of change on organisational strategies and operations...............................................1
P2 Influence of change drivers on leadership and behaviour....................................................4
P3 Measures that can be taken to minimise negative impacts of change....................................6
TASK 2............................................................................................................................................7
P4 Different barriers for change and their influence on leadership decision-making.................7
TASK 3............................................................................................................................................8
P.5 Interpretation of leadership approaches to deal with changes .............................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Understanding and leading change is identify as an effective concept of developing of
involvements to easily analysis the problems which are grow due to initiating and formulation of
variation in the business entity. Success and growth of an enterprise in mainly depend on its
capability in order to adopt change. Changes is one of the main and essential factor that assist the
business organisation to increase their sales and turnover. It is also beneficial for the organisation
to maintain their long lasting position in marketplace (Aslan and Reigeluth, 2013.). Management
of enterprise plays an important role in finding of such type of changes. For this aim, different
number of change impact models are follow by company about early determination of the effect
of such modification on leadership as well as team building also. This report is based on Haier
and Whirlpool both are electronic industry which are given in this report. This assignment
divided into different parts which cover change on organisation operation and strategies.
Influence of change drivers on individual behaviour and leadership which are also cover in this
project. Different barriers and leadership approach are also determined in this assignment which
highly effects on leadership decision making.
TASK 1
P1 Impact of change on organisational strategies and operations
Change is identify as a scenario which go on due to external and internal forces which are
available in the business environment. As per this force something innovative and different are
come out in enterprise which highly impacts on their business operations and activities. The
effect of variation should be negative and positive which mainly relay on the adaptability of
enterprise strategies and policies. Haier and Whirlpool are electronic industry which render their
services and products in different nations (Clarke and Persaud, 2011). As different number of
internal forces such as technology capacity, lead changes, employees morale and organisation
culture in both business. Through having their business operations and function in different
nations different number of external forces such as PESTLE analysis (Political, economic, social,
technological, legal and environmental). All these are highly effects on company operations in
various countries. Thus, both factors largely impacts the lectureship performance and behaviours
of team as well as workers also. It is seen that, such kind of variation have more effect on
operation and strategies of Haier and Whirlpool.
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Requirement for determination of such type of changes:
The main motive behind determination of such kind of modifications in to develop better
plan and policy which encourage workers in order to perform effective in accomplishment of
common objectives. For this motto, change management effect evaluation models are selected by
Haier and Whirlpool. It support in early determination and reduce their negative effects on its
future operations and functions (Doppelt, 2017). As different number of chances are collect by
the company through recognisation of these modification are explained as below:
Encourage innovation: Determination and formulation of variation encourage the
workers in order to enhance their knowledge and skills about effectively take such kind of force
in their daily basis activity. This changes support to motivate workforce to maximise their
passion further their functions.
Ascertain position of the company in marketplace: If the Electronic business like Haier
and Whirlpool, not render focuses on external and internal drivers of modification them it will
decrease their competitiveness in marketplace. It gives chances to other enterprise in order to
capture large number of market share. So, in order to create their better position and gain
competitive edge which is essential to adopt modification.
Team building: Completion of business goals and targets which is relay on the
employees working and functioning as a team (Fullan, 2014). Lack of consideration of variation
impacts leadership and communication among workforce. So, it is essential for the business to
develop effective team which help them to maximise their profitability and productivity ratio.
Haier: It is a Chinese collective multinational home appliances and consumer electronics
business entity. It was founded in 1984 by Zhang Ruimin at Qingdao, China, UK. They deals in
different varity of products such as consumer electronics, cooling system, small appliances and
many other. Main motive of the company is to provide effective quality in their service and
products to the customer at reasonable price.
Whirlpool: It is an American multinational production and home appliances market in
United states. They deals in different variety of electronic equipments which help them to
maximise their sales and revenues in limited time period. Main motive of the organisation is to
develop an effective image in marketplace.
Impact of change on business operations and strategy
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It is described above that both enterprise deals in electronic products in across the
nations. So, there is more significance of internal part in success and growth of enterprise.
Similarly, various nation have diverse business surround. In today's world, one of the major
alteration which is come out is digitisation (Fyke and Buzzanell, 2013). Through external factors
that also effects on business operations. This will have vast effect on the business strategy and
policy of Haier and Whirlpool.
Strategies Haier Whirlpool.
Marketing strategies It is one of the main and
essential strategy which is
used by them in order to
maximise customer response
in the organisation. There are
different kind of marketing
strategy are applied by the
company such as planning,
social media and many other.
These are essential and
important for the company to
easily introduce their products
and services to the customer
and in marketplace.
It is is home applicants
company which deals in
different kind of electronic
equipments. In this company
applied different kind of
marketing strategy which help
them to easily innovate their
new products and services at
marketplace. In this company
mainly used social media
because today's large number
of the population are spend
their more time on them.
Pricing Strategies It is also important and
essential part of the business
success and development. In
this company use
differentiation pricing strategy
which help them to attract
large number of customer in
limited time period (Gupta,
2011). It is also beneficial for
In this business entity apply
Sikking pricing strategy which
help to attract various number
of customer. It is also
beneficial and significant for
the company to accomplish
their long term goals and
objectives in certain time.
Price of the products is highly
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the company to capture large
number of market share.
beneficial for the enterprise to
improve their position at
marketplace.
Haier: Haier has planned its calculated net income at 2.45 billion US Dollars and revenues at
32.8 billion by the ending year of 2014. As it was a comparatively new organization it desired to
face its challenger successfully and furthermore desired to enter in deeper marketplace and
develop a strong consumer base of its own. Haier selected penetrating pricing and competitor-
orientated strategy and thence set its commodity prices at boundary lower rate than its competitor
companies. Marketing strategies of Haier is also effective over its challengers. The home
appliances company and Chinese Multinational consumer electronics was invented in 1984. The
business sells the big display of electronics items and white goods including computers and
mobile phones, kitchen and home appliances.
Whirlpool. In order to come at a definite strategy the business entity has fix a unit that determine
and analyse the different outgo that incurs during the possession as well as production of the
goods by the customers. This cognition in arrangement with the pricing strategies of the
competitor business organisation is essential in deciding the existent pricing policy of the brand
name or product. Due to its arranged resourceful warehouses, the business entity has been
capable to reduce the costs of its items by quite a margin. Whirlpool develops the strategy of
target market, market segmentation, manufacturing and distributions. Whirlpool is the first
factory-made commodity of home home appliances. The market share of company is above 25%.
P2 Influence of change drivers on leadership and behaviour
There are mainly two types of drives of variation which are known as external and
internal factor. Both factors are highly effects on team, leadership and individual behaviours.
These are explained as below:
Internal drivers: This type of factor existing within an enterprise. The internal changes drivers
which are available in Haier and Whirlpool are technological capacity, employees morale,
organisational culture, financial resources, poor delivery and so on (Hrebiniak, 2013). All these
factors decrease the business capacity in order to achieve their goals and objectives within the
allotted time period.
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Impacts or effects of internal drivers of change: These factors have more effects on the team
and employees behaviour which are functioning in Haier and Whirlpool. This will impacts on the
quality of leadership among the workforce which fall down their capability to perform and work
their various functions in an effective manner. There are some impacts of internal drives on
business performance and effectiveness which are determined as below:
Employee morale: In the organisation confidence level of the workforce is more essential
while performing activities and function of business this assist to enhance their strengths and
skills. If the employees morale is not high, then they are not bound up to their jobs. Thus, it will
develop difficulties and issues in development of effective group. In order to enhance their
passion level, company should render adequate job conditions.
Poor delivery: To accomplish success and growth electronic business like Haier and
Whirlpool require to have proper number of provider to give their products and services to the
clients (Keppel and et. al., 2012). Poor delivery is identify as a main issue in firm which reduce
the profitability and sales margin of the company.
Financial management: Sufficient amount of the money is foremost element for each
and every organisation. In the organisation different departments are work such as human
resource, production, marketing, research and development, needs proper amount of capital to do
their all functions and activities properly. This will impacts on management decision-making
power about introduction of new assets, purchase of raw materials, optimum utilisation or
resources and many other.
External Drivers: It is identify as a factor which are existing in external environment of
company. In this factor, management of bother enterprise such as Haier and Whirlpool doesn't
have kind of control. In these force different factors are considers like customer satisfaction,
political, competitors, economical and so on. These elements have negative as well as positive
effects in employee’s and team behaviours.
Effects of external drivers of change: There are different external factors which highly effects
on individual as well as team behaviours. These are shown as below:
New challengers: These are main problem for each and every business because they
already innovate new techniques, approaches and ideas to satisfy basic and different wants of
clients (Malenfant, 2010). They renders such goods which are already having new features at
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affordable prices. Thus, it is not easy for old organisation in order to modify their goods in
quickly because they have various number of assets.
Technology: It is identify as essential factor which is needed by the business. This force
consider regarding discoveries, inventions and effective approach which support to change over
their raw material into finished goods. This technology give better chances to the Haier and
Whirlpool to maximise their sales and do all activities in proper manner.
Economy: This factor identify the economic situation of the nation that has direct relation
with business performance. If any kind of financial change or fluctuations are develop like
deflation and inflation rate in nations has negative effects on business functions and activities of
Haier and Whirlpool. This factor also decrease the motivation and leadership of entire workforce
who are working in the organisation.
Customer satisfaction: It is one of the main and essential part for the business to improve
their position at marketplace. This force consider regarding the process of evaluation by Haier
and Whirlpool that products and services renders by organisation with motto to fulfil basic
demands of audience (Mukherjee and et. al., 2012). It perform as an indicator about evaluation of
business performance. It also encourage workforce to maintain their performance and
effectiveness for long duration.
Political: It is another factor which is complete rely on rules and regulations of
government. This force mainly related to policies, political stability, legislation, norms and
conditions. Haier and Whirlpool. Having their business operations and functions in different
nations where the tax policy and legislation are not same. This will impacts the leadership
characteristics and administration decision making.
P3 Measures that can be taken to minimise negative impacts of change
Sometimes, it is not easy for the business in order to adopt and handle variation. These
are difficult to bring off these and decreases its effects, Haier and Whirlpool take different
evaluations. Formulation of different models and approaches support the administrator in
recognising the effects of change and fetching appropriate actions to decrease its effects (Parsons
and Cornett, 2011). In this some models and theories are used by the manager which are
determined as below:
Continuous improvement model: It is one of the effective model which support the administer
of Haier and Whirlpool in making continuant betterment in its operations as well as process
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also. It help in reducing the effects of variation and achievement of long term objectives and
goals of enterprise. In this PDCA cycle model is more essential and valuable factor which are
determined as below:
PDCA Cycle model: This framework support in maximising the income and performance of
company. This factor consist four important phase that is essential for the Haier and Whirlpool
to be followed:
P: Plan: For seeing introduction of variation successfully, opportunities or chances are
recognised and plans are implemented by administer.
D: Do: Managers of the both organisation formulate variation at this stage. In this they
analysis it as small ground so that changes effectiveness can be assessed.
C: Check: Under this phase accurate results are measured and checked by quality one an
output are calculated by administer that support in identifying the impact of change.
A: Act: At large level variation are applied that impact in a positive manner and if its
effects in negative way then, mangers applied other models and theory (Suchman, Sluyter and
Williamson, 2011).
PDCA Cycle model is more essential and important for the company to maximise their income
level as well as competitive advantages within predetermined period of time. It is also useful for
the business entity to reduce employees turnover and accomplish their goals and objectives
easily. Haier also apply this theory with the motive to manage all activities and functions of
company.
Bohner and Arnold change effect analysis theory:
Application of such kind of theory help the administrator in decreasing the negative
impact of change on business leadership as well as behaviour also. Better results are identified
impressive evaluation are taken by management to find wanted outcome. Performance of this
concept change the administrator in order to analysis the business performance with standard. It
assist the decision maker in scheming appropriate policies and plans. The concept renders way to
worker that alter them to efficaciously adapt alteration and decrease its adverse effects. Risks,
that originate due to utilising modification can be easily known by management by application
and importance of this theory.
This model and theory is essential and effective for the enterprise to increase their sales and
revenues. Haier use this model with purpose to overcome all issues and difficulties which are
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arise in the workplace. Thus, it is effective and useful for the electronic business to gain
competitive edge within an organisation in an effective and efficient manner.
TASK 2
P4 Different barriers for change and their influence on leadership decision-making
In the organisation different number of barriers and difficulties which are effects on
business either externally and internally. Such obstacle impacts the capacity and capability of
company about adoption of such variation (Thomas and et. al., 2013). To see maximum
regarding such aspects, administration of both Haier and Whirlpool decide to apply Force Field
model which is explained as below:
Force Field model: This framework identify the similarities between the such factors which are
in against and favour of modification in the firm. This analysis consist five phase which support
to collect all necessary data. Thus, it play vital role in formulation of modification in the
company.
Phase 1: Plan for change: It is a first stage which consists description of visions and
goals for which an enterprise get such modification in their business activities and operations. In
this main motto of Haier and Whirlpool behind acceptance of all variation is to accomplish
competitive edge, development of innovation, large amount of market share, gain trueness of
clients and many other.
Phase 2: Designation of forces for modification: It renders regarding such which are
important reason of variation in the business (van der Voet, Kuipers and Groeneveld, 2015). It
can be classified into external and internal parts. There are different internal and external forces
which are faced by the Haier and Whirlpool such as Outdated machinery, require enhanced
productivity, low team morale, customer's demands, uncertain business environment, etc.
Phase 3: Finding of factors against alteration: It is third stage in this role of manager is
to find out different factors against changes. In this they identify internal factors like
organisational Structure, Fear of unknown etc. In case of external factor they find out
government regulations and Commitment to partnership.
Phase 4: Assign scores: This stage mainly consist regarding the rating of forces as per its
weaknesses and strengths about causing authority on organisation activities or functions. Scores
that should be allotted to internal and external forces which are in against and favour.
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Phase 5: Investigation and application: It is a last phase in this role of the manager is to
evaluate the consequences and effects of factor of variation and formulate them in organisation
effectively. It assist to achievement of long term goals and objectives which are explained below:
Barriers of variation and their impacts on decision-making: In the organisation different kind
of barriers like customer's satisfaction, government, workers etc. which highly impacts on
capability of Haier and Whirlpool in order to formulate such modification in an effective and
efficient manner (Yoder-Wise, 2014). These factors also influence on decision-making ability of
administration which is identify as below:
Workers: These are important and foremost part for Haier and Whirlpool to render their
products and services across the globe. If the workforce are unready to work and perform on
innovative technologies and machineries then it impacts on business strategies and decision
regarding achievement of their predetermined objectives.
Government: Legal authority of various nations have various rules and regulations which
is needed to follow by enterprise. If the regulations of few nations not follow Haier and
Whirlpool to formulate variation then it will decrease their profitability and effectiveness in such
part of market.
TASK 3
P.5 Interpretation of leadership approaches to deal with changes
There are various leadership approaches through which organization can deal with
different changes (Bin Taher, Krotov and Silva, 2015). Different leadership approaches are used
to deal with changes and they use many methods and techniques so that they can solve all
problems and issues in the market. Hence firm can deal with many changes which are occurred
in the company. Thus as a result they can maintain good image in market. Thus various
leadership styles followed by Haier and Whirlpool are-
Laissez Faire: In this leadership various approaches are used. Leader allows all members
of group members to take different decisions and hence they can make effective and efficient
decisions in the company. Thus as a result they can make effective an efficient decisions in the
firm. Hence as a result they can make efficient decisions. Advantage is that they can give their
suggestions to the firm while if they do not perform well tot can hampers productivity of the
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