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.

Various stakeholders such as management, employees, members of board management and
customer can also pressurize the company to undergo change.
Customer : As with the change in time taste and preference of customer are continuously
changing which create a pressure on the organisation to make changes in its product and
services.
SWOT
Strength
Tesco has a strong work force within the
organisation while Sainsbury has a strong
management within the company(Bull and
et.al., 2016).
Both the company has a strong customer base
therefore the companies has to work as per the
demand of the customers
Weakness
Tesco and Sainsbury both need improvement
in business process.
Opportunities
As the market is growing their is huge
opportunity for both the companies.
The companies should analyse the market need
as it is continuously changing
Threat
Both the companies is facing huge competition
in a market.
The consumer behaviour is changing rapidly
In case of Tesco the change has taken place due to internal driver i.e., management of the
organisation while in case of Sainsbury external driver which is technology forces the company
to make changes in its organisation strategy.
Type of organisational change they have affected
In case of Tesco driver of change i.e., management and the type of organisational change
they have affected is personnel change. Means the change in strategies by the management
which is to remove large number of stores in order to simplify operational structure has created
the lay-off of various employees from the organisation. While if we see the case of Sainsbury the
driver of change is technology which is external driver of change and the type of organisational
change they have affected is transformational change. Means the rapid change in technology has
caused the company to make changes as per the demand or change pertaining in the industry.

LO 2
P2. Impact of internal and external drivers of change in leadership, team and individual
behaviour
There are various internal and external factors which can affect the behaviour of employees in
the work place.
Impact on organisational culture:
When a new employee joins the company, the companies culture play a huge role on how the
person is behaving. The organisation culture should be such that where people feel comfortable
to share their views and present their opinion.
When a Tesco decided to lay-off employees and hire about 900 employees for the role of
people partner, colleague relation partner and learning partner who will be working across
multiple sites . The company has decided to give a friendly work culture to its employee where
their ideas will be supported and discussed thus creating a positive impact on employees
behaviour.
Impact on leadership :
The change which occurs due to internal and external drivers also affect the leadership within the
organisation. For example if the company is suffering from a huge loss or is facing a tough
competition in the market(Georgalis and et.al., 2015). Then a management has to change its
leadership style in order to deal with the situation. Change due to external driver cause the
change in leadership style. Similarity if employees within the organisation are not productive or
the customer are more rapidly switching to other brands then also the management need to
change the leadership style. Such as in case of employees, the management can adopt the
autocratic style of leadership where they will force the employees to do work as per rules and
regulation in order to achieve goal of organisation.
Tesco leadership style has also been affected due to the change occurred in the
organisation as a result of change in management strategy. As the Tesco earlier is suffering from
a complex operational structure which is affecting the productivity and profitability of a
organisation. Therefore in order to deal with this situation the company has make changes in its
leadership style by adopting the transformational style of leadership. This leadership style has
helped the company to know the need for change by working with the team and creating a vision
in order to guide the change. And finally executing change in the organisation.

Impact on team :
The internal and external forces affect the team as well. For example when the change in
management is made or the company has to deal with some external changes in such as
technological change or competition in market. The team is created accordingly in order to deal
with such situations. For example when strategies has to made in order to face the huge
competition in market. The company needs to develop a team which consists of member from
each department, so that a proper and calculated decision can be taken(Fernandez and Rainey,
2017).
Tesco has created a team of members which include individual from research and
development department in order to identify the market condition, an individual from finance
department in order to handle all finance related matters such as how the change in management
strategy i.e., lay off and hiring on new employees will affect budget of company, what will be
the impact of close down of stores on company etc. and an individual from human resource
department in order to recruit new employees etc.
However by considering the case of Tesco it can be said that internal as well as external
factor affects team, employees behaviour and leadership of an organisation.
P3. Measures in order to mitigate the negative impact of change on organisational behaviour
Manage change rightly at first : Resistance to change is a common human reaction which occur
at a time of change as employees or people working for so many time in the organisation feel
comfortable with their procedure of work but a sudden change in rules and regulation,
techniques, technologies affects the employees as a reaction the employees does not like this
change(Lines and et.al., 2015). But if change is managed correctly it can mitigate the resistance
to change.
The change in Tesco has created a negative impact on employees as most of the
employees are removed from the company. But Tesco has put its all effort to create a positive
environment in a workplace. The company has used a good management strategy in order to
mitigate the negative impact of change. The company has use this tool in order to engage
employees in the process of change management. The company has engage its senior leaders as
active sponsors of change, the company has also use middle managers and front-line supervisor
in order to provide better guidance to employees and help them to deal with change. A meeting is

conducted for the people of an organisation in order to make them realise the importance of
change and how it will benefit them.
Expect resistance to change : Every company or organisation should be ready for change. As
with the changing world the demands, wants, preference, likes and various other changes are
continuously emerging within the business environment. The company should prepare earlier in
order to deal with change. For example when any new project starts the employee can act as a
resistance to change. Such as the employee may think that this new project may increase their
work load.
Tesco is well prepared as the company knows that changes in strategy will affect large
number of employees. Therefore the company has earlier told the employees that what type of
change company is going to have and what impact it will create on employees(Chen, 2016). As
a result of this action the employees of a company become well aware about the change and how
to deal it.
Create culture of learning : As no company can assure job security to their employees but they
can create a learning culture which will help the employee to take new challenges and enhance
their personal skills which will help them in future.
Tesco conducts the training programme as the company thinks that investment on
employees will increase the performance and productivity of the company.
Engage right resistance manager : The resistance managers are middle managers, senior
managers and frontline supervisors. The leaders and manager of the organisation should take
proper measures in order to mitigate the negative impact of change(Bakker and Hilt, 2016).
Senior leaders : The leaders should evaluate need for change and show their commitment to
change. The leaders should try to motivate employees and make them realise the need for
change.
Managers and supervisors : The managers and supervisors work closely with employees in order
to make them adopt the change. They should support the employees with their work.
Tesco managers and leaders made an effort and stand with their employees to face the
situation and make them identify the reason behind need for change. This step taken by the
managers and supervisors has created a less negative impact(Cummings, Bridgman and Brown,
2016).

M2. Application of various models and theories
Kotter’s change management theory :
Stages
Increase urgency : A sense of urgency is created among employees in this step in order to make
them motivate so that organisation goal can be achieved.
Tesco has informed the employees about the change company is planning for and make
them realise the need for change.
Build the team : This step includes the creation of team of right members with right set of
knowledge and skills.
Tesco has make the team by taking individuals from different department such as finance
department, human resource department, marketing department and operation department in
order to make the team of employees who are having different skill set. It has helped the
company to deal with the change.
Get vision correct : The stage focuses on creating a vision which just not into consideration
strategies only but also take into account creativity, objective and building emotional connect
between team members.
Tesco has decided to simplify operational process in order to do so the company has
make various strategies by taking into account the views of employees so that a strong relation
can be build between management and employees.
Communicate : Communication is most important thing as it avoid any kind of misunderstanding
and to enhance the work process.
Tesco has communicated the need for change and the steps they will take to implement
change in organisation which has helped the company to smoothly introduce change in an
organisation.
Get things moving : To let the things move on a support is needed so that roadblocks can be
removed. And this can be attain by getting proper feedback during whole process.
Tesco has involved its employee in every step by asking them to give regular feedback
and also take the support from expertise to make improvement and analyse if the process is
moving correctly.
Focus on short term goals : The breakdown of goal into small achievable parts is a best way to
achieve success(Models of change management, 2019).

Tesco tries to breaks the goal into several small activities. And has aligned all the
activities in such way so that their goal can be achieved.
Don’t give up : No matter how the tough it is to achieve goal a regular effort should be made.
Tesco has faced huge challenges in its change management process such as resistance
from employees but the company does not stop and continue to carry change management
process.
Incorporate change : The reinforcement of change in organisation is also very important and it
is also necessary to make it a part of work culture.
Tesco has proved its efficient in change management as the company regularly tries to
make changes in its system in order to deal with the change in business environment both
internally and externally.
LO 3
P4 Different barriers for change and their influence on leadership decision-making.
Change is an important process and every firm needs to accommodate regular changes in
its structure so that the operations of the firm can be regularly updated. Tesco plans to change its
operational structure and also adopt simplified methods to serve its customers (Doppelt, 2017).
But in implementing any change, the management has to face many barriers before they can be
finally implemented. The changes encountered by them can be categorized as follows :- Fear of Unknown :- Although much has already been said and discussed about the
necessity of change and its positive effect on the company; there are still many
individuals in an organization who resist it. The main reason for adopting this kind of
attitude towards the change implementation in any firm is the fear of the unknown. The
employees do not know or fully understand how the proposed change will affect them
and their job role (Cameron and Green, 2015). They are afraid that this proposed change
might reduce their present authority or the capacity in which they operate might be
compromised. This fear arises because the employees do not understand what the change
actually is and its scope in the present scenario. Tesco faces this challenge whenever it
plans to implement changes the reason being the vast scale at which it operates. The
ambiguity amongst the employees is very high whenever any change is proposed since
the increased number of operating levels in the Tesco Company at present involves a lot

of people at each managerial position and every individual delivers something different.
The employee taking instructions from so many individuals gets confused.
Influence on Leadership Decision-making :- First of all the change in the operational structure
that Tesco proposes to bring will reduce the number of employees thus simplifying its operations
(Lozano, Nummert and Ceulemans, 2016). This will help the employee in identifying a single
leader or manager who alone will guide them. Thus, the ambiguity surrounding the change and
its effects will get solved and employees will be able to picture the future more clearly. Also,
their fear regarding the scope of changes applicable can be resolved by creating better
communication channels at Tesco between the employee and their manager and entertaining
proper feedback channels. Ineffective Leadership Practices :- The biggest challenge for any organization is
convincing their employees to accept and embrace the changes in the working culture and
the leaders at Tesco play a key role in making their employees understand how the
proposed changes will benefit their company and them rather than resisting it. If the
change management process is carried out in a simplified and proper manner, the leader
can garner support of their employees as they are the most important party in the change
implementation process in Tesco or any other organization (Donnelly and Kirk, 2015).
Influence on Leadership Decision-making :- The leaders need to identify those employees who
are resisting and understand the mindset that they have. They need to identify the problems that
they think they will encounter and the leaders need to ensure their employees by solving their
queries so that their fears can be resolved. Also, the leaders at Tesco can make them understand
that if the changes are not accepted and implemented in the company according to the time
frame, it might lead to the organization becoming redundant. One of the key attractions of Tesco
has been their ability to modify and adapt themselves as per the changing needs of customers and
market trends (Lozano, Ceulemans and Seatter, 2015). For this, the leaders at Tesco need to
develop multiple approaches of dealing with the employees. Resistance to Change :- Proposing Change always leads to disruption amongst the
employees as implementing change implies that they will have to change their present
working styles and formats. It also signifies that their comfort zone will be compromised
with, and they will have to modify their activities. This resistance is generally put up by
the older employees who have been working with the company for a long time, and they

are now required to learn new things or accept new methods for performing the tasks that
were earlier performed differently. Resistance is basically related to the deviation that
will arise in the working capability of the organization rather than the fact that the
employees like or dislike the particular change (Verhulst and Lambrechts, 2015).
Influence on Leadership Decision-making :- At Tesco, the leaders need to make employees
understand that if they do not adapt themselves along with the changing market requirement than
despite having their key skills, it will lead to them being declared unworthy and this will make
them unemployed. Tesco employs a large number of people who began their career with Tesco
and have been with them throughout their journey. The managers cannot simply remove them
and so the leaders need to understand and go over the points which they are dreading about
change implementation. This will help them in understanding the change in a better way and
accept it. Lack of Rigorous Governance :- When the process of change implementation is carried
out, the resistance is bound to occur (Cook, 2015). To deal with this, the management
should create a multifold approach to deal with the employees resisting to change. The
employees should be able to form a clear vision regarding the change implementation and
how they will get affected. This can only be achieved when the leadership is rigorous i.e.
strong.
Influence on Leadership Decision-making :- If the leadership at Tesco is not able to take firm
decision related to its employees, they might lose their command thus creating disruption in the
workplace. The employees who need to be removed must be removed and effective decisions
need to be taken. The employees should be able to trust their leaders and rely on the decisions
taken by them o their behalf and this can be developed only when the leaders know and
understand their employees and know how to tackle them (Altamony and et.al., 2016).
M3. Force Field Analysis and its influence on decision-making :-
Force field is a change implementation process developed by Kurt Lewin. It involves
identification and categorization of employees where the leaders identify 'Driving Forces' and
'Restraining Forces' for change implementation in the company. The driving forces are those
who support the change and the management by encouraging them can influence their fellow
workers. Also, the restraining forces can be managed by making them understand the
requirement of change and the importance of its implementation (Lines and et.al., 2015).

P5 Different leadership approaches to deal with change.
A leader is supposed to act differently with changing situations and specially when a
change is introduced in the organization. Thus, as the process of implementation of change
begins in the company, Tesco adopts a series of different leadership styles which are changing
along with different phases of change implementation. The major change that Tesco is currently
experiencing is change in operational structure of the company. For this, Tesco can adopt two
different models as their leadership styles :-
Situational Leadership :- Under this leadership style, the leader has to adjust their operations as
per the changing situations to fit in them and operate accordingly. There are four categories
according to which the leaders should behave in order to act accordingly in different situations :-
Telling :- Here the leader communicates in one way only and directs everyone regarding their
roles and responsibilities irrespective of the capabilities of employees and whether they are able
to fulfil the requirements of job (Bradley, 2016). For adopting changes in operational structure,
leaders at Tesco need to remove some employees and this can be achieved only through telling
behaviour.
Selling :- Under selling, leaders direct the employees, but they also provide the required
guidance to them supporting their decisions and solving their queries. While implicating the
change in operational structure; leaders need to make employees agree to the changes made and
this can be achieved only when they practice Selling behavioural style.
Participating :- Under this, the leader works alongside their employees and the focus is on
achieving shared goals thorough mutual decision-making between leaders and their subordinates
(Buick and et.al., 2015). While implicating changes, it is necessary for the leaders at Tesco to
adopt this behaviour when the actual process of applying change in the organization takes place.
Delegating :- Here, the leader monitors the various activities that are taking place after they have
been properly delegated to the employees as per their capabilities. In Tesco, after the change has
been implemented by making the necessary modifications in the operational structure, the
leaders need to develop guidelines for regularly monitoring it.
Another leadership mode that can be used is Kotter's 8-step Model for implementation of
change during its different phases (Kotter’s 8-step Change Model, 2016):-
Create urgency :- Here the leaders help the employees in identifying the requirement for change
in the company by comparing the present environment conditions with the company's internal

environment and pointing out the difference in the achievement levels. At Tesco the leaders can
achieve this by comparing their tactics with those of the competitors' organization.
Form Coalitions :- The next step is to form coalitions i.e. teams of powerful and effective
people who can work together to achieve the goals by shared decision making. This will help the
leaders at Tesco, the leaders along with a few selected personnel can help in successful
implementation of change so that the employees feel comfortable with the proposed change and
can embrace it rather than resisting it (Donnelly and Kirk, 2015).
Create Vision :- The leaders should be able to prepare a vision in such a way that they are able
to predict the future after the change will be implemented in the organization. The plan for
implementing of such vision along with their proper solutions and their consequences. At Tesco,
the leaders before implementing the change related to operational structure can formulate a
comprehensive implementation plan and the methods in which the company and its employees
will be affected and how to resolve it.
Communicating the Vision :- After the leaders are satisfied with the change implementation
plan and the predicted effect on the company, they can communicate such change formed to the
employees. It is the most crucial stage where the employees should be capable of envisioning the
change (Altamony and et.al., 2016). Leaders at Tesco need to communicate the planned change
very carefully as it involves changing the structure of the company implying that many
employees would lose their jobs.
Removing Obstacles :- After the change has been communicated to the employees, they are
bound to resist it. This gives rise to the conflicts in the organization and lack of cooperation from
the employees. Since Tesco plans on removing some of its employees, despite giving benefits to
them the employees will resist, and they might involve trade union. The leaders should be ready
to deal with such challenges and manage the workplace environment (Doppelt, 2017).
Create short term wins :- When the change is being implemented, it should be broken down in
smaller steps and then implemented. Along with that it is also necessary that they keep shorter
targets which are easily achievable so that the employees feel motivated and can get accustomed
to the change easily. Tesco can create awards or bring incentives for those who would achieve
the targets at the earliest along with adjusting in their new roles.
Build on change :- This step starts that the early victory which the company achieves after
implicating change is not the sign that the leaders have really succeeded in implementing change

(Verhulst and Lambrechts, 2015). Kotter states that changes run very deep in the organization,
and they need to be evaluated and revaluated time and again so that it can be ensured that the
employees have completely adjusted to the changes and there are no chances of failure. Tesco is
changing its operational structure and this will involves a long duration before the employees get
finally used to the changes implemented.
Anchoring the changes :- This is the final step in implementing changes and here the leaders
need to ensure that every part of the organization has accepted the change and is accustomed to
it. They also need to ensure that the employees are still satisfied with the changes and accept it.
Tesco needs to regularly evaluate every aspect of their organizational structure so that leaders
can be assured that the change has finally become a part of the organization (Cameron and
Green, 2015).
M4. Extent to which leadership approach can deliver change
The organizational changes can be successfully managed only through successful
implication of different approaches of leadership styles according to the changing situations.
Throughout the process of change implementation, leadership plays a key role as the leaders are
the ones who actually make implementation of change possible as they are the ones who prepare
the employees to embrace the changes (Cook, 2015). Through different tactics they make the
employees understand that requirement of change without which the organization can become
redundant. Tesco uses all the leadership styles described above for implementation of change.
CONCLUSION
After going through the research carried out in this report it can be concluded that bringing
change in any organisation is a very important part in any organisation and needs to be regularly
accommodated along with changing market trends. Tesco and the changes that it plans to
implement on its organisation have been discussed along with their impact on the internal and
external environment of the company. This report discussed the barriers towards implementation
of change and how they can influence the decision making of their leaders. Further, the
applicability of various change models which can be used for facilitating change in Tesco has
been discussed. Lastly, Lewin’s change model; Situational Leadership Style and Kotter’s 8 step
model are the models which were used to describe how they can help Tesco in adopting changes.

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