HNBS 317: Organizational Change and Leadership Strategies Report

This report delves into the critical aspects of organizational change and leadership, using Tesco and Sainsbury as case studies. It begins by defining change and its various types, highlighting how these changes impact a company's strategies and operations. The report explores both internal and external drivers of change, such as competition, technology, and management restructuring, and analyzes their influence on leadership, team dynamics, and individual behavior. It further examines measures to mitigate the negative impacts of change, including managing change effectively and fostering a positive organizational culture. The application of relevant models and theories, such as SWOT analysis and PEST analysis, is discussed, alongside an in-depth look at barriers to change and their influence on leadership decision-making, including the use of Force Field Analysis. Finally, the report considers different leadership approaches to dealing with change and assesses the extent to which these approaches can successfully deliver change within an organization. The report provides a comprehensive understanding of the challenges and strategies associated with leading and managing change in a business environment.

HNBS 317 Understanding and Leading Change

Contents
INTRODUCTION.........................................................................................................................10
LO 1...............................................................................................................................................11
P1. Example of the organisation where change has created an impact on strategy and operation
...................................................................................................................................................11
M1. Drivers of change...............................................................................................................12
LO 2...............................................................................................................................................14
P2. Impact of internal and external drivers of change in leadership, team and individual
behaviour...................................................................................................................................14
P3. Measures in order to mitigate the negative impact of change on organisational behaviour15
M2. Application of various models and theories.......................................................................17
LO 3...............................................................................................................................................18
P4 Different barriers for change and their influence on leadership decision-making...............18
M3. Force Field Analysis and its influence on decision-making :-...........................................20
P5 Different leadership approaches to deal with change...........................................................21
M4. Extent to which leadership approach can deliver change..................................................23
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................26

INTRODUCTION
Organizational Change is a very important aspect for any organization that wishes to
excel. Understanding the requirement of change along with the changing environment and the
implementation of the change plan thus developed is a very crucial activity in a company (Hayes,
2018). Tesco Plc is a British multinational company having its headquarters in Welwyn Garden
City, Hertfordshire, England, United kingdom. Tesco is the third largest retailer in grocery
market in the entire world having its stores spread over seven countries. The company was
founded by Jack Cohen and despite originally being a grocery store; it has diversified in books,
electronics, financial services and internet services retailer. Tesco is listed on London Stock
Exchange and is a part of FTSE 100 Index. The report here highlights the change and its impact
on the strategies adopted by Tesco. Further, the internal and external factors that affect the
implementation of change and the behaviour of team and individual behaviours have been
discussed. It also shows the measures that can be taken to minimize the negative impacts of
change implementation and the application of appropriate theories and models. The barriers in
change implementation and its impact on the decision-making of the leaders including the force
field analysis is also conducted in detail. Lastly this report discusses the different leadership
approaches in organizational context.

LO 1
P1. Example of the organisation where change has created an impact on strategy and operation
Change : Change can be defined as a situation or phase where company or organisation faces a
transformation(Walker and Bordoni, S., 2016). When the strategies of a company and their major
actions are altered such situation is said as change. Change is also known as turnaround,
reorganisation and restructuring.
There can be various types of change such as
Personnel change : Such type of change occurs within the organisation due to mass hiring and
lay-off of employees. This type of change creates anxiety and fear among staff members.
Unplanned change : The actions taken in order to deal with unexpected events. This type of
change is not predicted earlier this happen suddenly.
Transformational change : Such type of change occur when an organisation make changes in its
strategy according to the changes occurring in its industry.
Example of Tesco where personnel change has created an impact on strategy and operation
The Tesco has faced challenge with its operational structure. The driver of change in this
scenario is internal drivers. The management of a company face many problem with the
operational structure of the company. Therefore in order to deal with this the company has
planned to make a change in its strategy. And as a result the company has simplified operational
structure in order to improve the efficiency and to give line managers a clear view of their
colleagues and customers.
The company will remove about 226 stores in order to simplify the operational structure.
The change which a company has decided to implement in an organisation will affect about 1700
employees.
Example of Sainsbury where transformational change has created an impact on strategy
and operation
As the technology is changing rapidly which is creating an impact on customer
purchasing behaviour also. Therefore in order to attract more customer toward their product the
company has decided to make use of new technologies. The company is trying to make
continuous improvement in its change. A regular market research is done by the company.

As the change in buying behaviour of customer has taken place. Now the customer prefer online
shopping rather than buying from stores. The company is trying to keep pace with the new
technologies in order to maintain its customers and attract new one.
M1. Drivers of change
Change creates affect almost every business. Therefore if a company wants to experience a less
or no negative impact of change than the company should analyse the market regularly, should
try to investigate the changes occurring within the industry. Change within the company may be
due to various factors such as competition, technology, new management etc. These factors are
known as drivers of change and it can be broadly classified into two categories
1. External drivers of change :
Such type of forces are hard to manage. The external drivers of change can be competition in a
market. Change in technology, politics and legislation, economies etc. As the competition in a
market is increasing day by day which is pressurizing the company to change its strategies
accordingly in order to survive in the market.
PEST
Political factors : Tesco as well as Sainsbury can get affected by the various governmental
policies. Change in government rule and regulation also cause the company to make changes in
its strategies, tax policy and trade control, war. Ant trust law, trade control various tariff are
factors which can affect both the company(Morandin, Long, and Kremen, 2016).
Economic factors : Job growth, globalisation, interest rate, inflation are some of the factors
which can affect Tesco as well as Sainsbury.
Social factors : Population, demographics, major events, consumer buying pattern are some of
the social factor. These are some factors which can affect the companies process and force them
to make change in the organisation.
Technological factor : Impact of new technologies, licensing and patents, research funding. For
example if we consider the case of Sainsbury the change in technology has caused change in
customer buying behaviour also.
1. Internal drivers of change :
The change in management or organisational restructuring can be cause of change in an
organisation. Change in staff, introduction of new equipment and employees attitude can also act
as a drivers of change.