Leading Change Report: Understanding and Leading Change in Business

This report provides a comprehensive analysis of leading change within Tesco and Nokia, exploring the impact of change on their strategies and operations. It compares the effects of change on organizational structure, technology, marketing, and human resources. The report evaluates the influence of internal and external drivers on leadership, team dynamics, and individual behaviors, examining factors such as political, economic, and technological shifts. It also assesses measures to mitigate the negative impacts of change on organizational behavior and analyzes barriers to change using the force field analysis model. Furthermore, the report critically evaluates various leadership approaches and change management models, including Kotter's eight-step model, to determine their effectiveness in driving organizational change. The report concludes by summarizing the key findings and offering insights into effective change management practices.

Understanding and
leading change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
a) Comparison of the impact of change on each organisation strategy and operations and
assessment of the different drivers for change in each of the given examples and the types of
organisational change they have affected...................................................................................4
b) Evaluation of the ways in which internal and external drivers of change affect leadership,
team and individual behaviours within both Tesco and Nokia...................................................7
c) Evaluation of the measures that can be taken to minimise negative impacts of change on
organisational behaviour within the organisation.......................................................................8
d) Critical evaluation of the organisational response to change with the help of Systems
theory, Continuous Improvement model and the Burke-Litwen Model.....................................9
TASK 2..........................................................................................................................................11
a) Analysis of different barriers for change by using force field analysis model as well as
crticall evaluation how it influences leadership decision making to meet organisational
objectives of TESCO ................................................................................................................11
b) Different leadership approaches in context to Tesco or Nokia.............................................14
Source: Kotter's eight step model of change, 2019...................................................................17
c) Critical evaluation of the effectiveness of leadership approaches and models of change
management in delivering organisational change. ...................................................................18
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19

Kotter's eight step model of change. 2019. [Online]. Available Through:
<https://www.managementstudyguide.com/kotters-8-step-model-of-change.htm>.................20
.........................................................................................................................................................1

INTRODUCTION
Understanding and leading change refers to the process of introducing new plan and
identification of different available opportunities so as to expand business and craft improvement
in existing process of operation with the help of co-ordinated staff members. Leading change is
the essential requirement for every organisation so as to sustain for long period of time in market
position and to develop business as per the customers and market requirement. Present report
will analyse the comparison of the impact of change on TESCO and Nokia organisation strategy
and operations. Tesco is a British multinational groceries and general merchandise retailer with
its headquarter in UK, whereas Nokia corporation is a Finnish multinational telecommunication,
information technology and consumer electronics company. In addition to this evaluation of the
ways in which internal and external drivers of change affect leadership, team and individual
behaviours within both firm as well as measures to minimise negative impacts of change on
organisational behaviour is being explained din this assignment. Furthermore, analysis of
different barriers for change by using force field analysis model is also being done. Lastly,
critical evaluation of the effectiveness of leadership approaches and models of change
management in delivering organisational change is also being focused in this report.
TASK 1
a) Comparison of the impact of change on each organisation strategy and operations and
assessment of the different drivers for change in each of the given examples and the types
of organisational change they have affected.
Change in management is a systematic approach that ensure efficient and seamless flow
of change within an organisation. It help in minimising impact of related incident and services
within an organisation. Moreover, change is a standardised methods and procedures that are
used for changes that occur within an organisation as well as need to maintain proper balance
between need of change and potential determinant impact it may cause.
Positive Change:
Staying current: In today's context both TESCO and NOKIA need to adopt changes as
per time and requirement so that they can stay competitive in marketplace of same industry line
respectively.

New opportunities: Changes usually create opportunities in competitive marketplace.
Herein, Nokia are able to grab opportunities in competitive marketplace as they are coming up
with new and attractive smart phones. On the other hand TESCO are coming up with new and
attractive packages in order to create opportunities ans attract large number of customers.
Negative Change:
Life changes: Change also create a negative image in today's context. Such as with
advancement of technologies people life are changing. They are more convenient towards
technologies.
Loss of loyalty: With the adoption of tools and techniques the organisation are losing
loyalty of customer and employee in competitive marketplace. As now a days organisation are
more attracted towards advance tools and techniques which are automated in nature as it dosenot
require and man power work.
Impact of changes of each organisation and operation in different drivers of change are
determined below:
BASIS
EFFECT ON TESCO’s
STRATEGY AND
OPERATIONS
EFFECT ON Nokia's
STRATEGY AND
OPERATIONS
ORGANISATIONAL
STRUCTURE
Herein, TESCO are following
hierarchical organisation
structure in their organisation.
In which each task have its own
procedure from higher
management to staff member as
per their job designation as well
as their roles and responsibility
so that goals and objectives can
be determined within stipulated
period of time. Moreover,
mangers of TESCO are
following are hierarchical
structure.
Herein, NOKIA are maintaining
flat organisational structure in
operating and functioning their
day to day business operation.
Herein, mangers has change its
structure so that don't want to
have high level of authority
between managers and staff
members as well as carry out
their work without any
difficulty.

TECHNOLOGY
In Case of TESCO are
adopting different
technological changes are
determined as per their working
structure. Herein, managers are
adopting updated software and
using digitalisation process in
serving their customer and
marinating record of each
process in an effective manner.
In order to attain high customer
loyal as well as remain
competitive in market place.
Herein, in case of Nokia
technological changes are
determined on social media
marketing process as they are
now promoting their cell phone
product in order to grab
attention of large number of
customers. As this change will
help them to enhance their
market share as well as attract
more customer towards its
product and services which they
are offering in competitive
marketplace.
MARKETING
STRATEGY
Moreover, with the adoption of
hierarchical organisational
structure managers will able to
attract large number of
customers as per effective
performance and able to
achieve goals and objectives
within stipulated time period.
Herein, managers of Nokia are
adopting high marketing
strategies as well as involving
employees and staff members
equally in decision making
process and able to adopt
changes with effective planning
and strategies.
HR (RECRUITMENT) The human resource department
of TESCO are operating large
number to talent employees for
their organisation purpose in
order to fulfil their goals and
objectives respectively.
Moreover, they are using online
Herein, Nokia are recruiting
and hiring right candidate as
they want to capture more
market share. As earlier they
have lost their market share that
adversely affected its
productivity and profitability in

recruitment process. competitive marketplace.
b) Evaluation of the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within both Tesco and Nokia.
In an organisation both internal and external driver plays an crucial role in operating day
to day business activities. Additionally, both external and internal drives affect on changes in
leadership, team and on behaviour of an individual in an organisation. Herein, both organisation
TESCO and NOKIA are playing their roles and responsibilities in an effective manner. As this
help them to achieve their goals and objectives respective.
What's went wrong:
TESCO
TESCO is one of the biggest supermarket has suffered loss in United Kingdom retailer. This
result steady slums in sales over five years.
NOKIA
In earlier days NOKIA ruled cell phone industry. With adoption of Android smart phone has
adversely effected killing its handsets. Thus, it created difficulty in coming up again in
competitive marketplace.
Herein, there are certain internal and external factors that affect its leadership, team work and
individual behaviour in their working culture which are determined below:
External Factors: External factors are refer to those drivers in which an organisation does not
have any kind of control over it. Moreover, this factors affect adversely on an organisation
performance in a competitive edge.
Political factor: Political factors are those factors which include government
interferences and changes in taxation policy that affect an organisation activities. Herein, both
TESCO and NOKIA need to adopt certain changes as per government rules and regulation where
they are operating their business activities. Moreover, its adversely affect on team work and
behaviour of an individual in performing task within an organisation.

Economical factor: Economical factor includes changes in interest rate, employment law
and inflation rate which affecting leadership, teams and individual in an organisation. Herein,
both TESCO and NOKIA are adversely affected in adopting decision due to inflation rate and
changes in rates that affect them in operating their business function effectively. Additionally.
ow inflation rates and low interest rate the buying power of customer is also declining which
adversely affecting productivity as profitability of their business.
Technological factor: Technological factors are associated with changes in technologies
that are helpful for an organisation in increasing its productivity. With the adoption of new and
advance technologies both TESCO and NOKIA will able to take significant decision which help
them in achieve their goals and objective within stipulated time period. Moreover, it will lead to
enhance team performance as well as an individual can increase their knowledge and skills in an
appropriate that is helpful for both organisation and individual.
Internal factors: Internal factors are those drivers which are control by an organisation. Herein,
some of the internal factors that affect leadership, team work and individual behaviour in an
organisation are determined below both in TESCO and NOKIA
Financial management: Funds are an essential part of a particular organisation in
operating and performing their day to day business activities. Herein, mangers of TESCO and
NOKIA need to have sufficient funds in operating their business activities. Moreover, if they
have lack of funds then it will significant affect performance of leader, team members as well as
changes occur in an individual behaviour. Thus, it is necessary to have sufficient funds so that
they can meet up market demands as per the need and preferences.
Cultural difference: In today's context there are cultural difference as employees belong
from different state and region. Moreover, the mangers of TESCO and NOKIA are facing
problems that effect organisation productivity and profitability. Hence, cultural difference
usually affect leader in decision-making process which is beneficial for an organisation.
c) Evaluation of the measures that can be taken to minimise negative impacts of change on
organisational behaviour within the organisation.
Tesco organisation can adopt the following measures in order to minimize the negative
impact of change in the organisational behaviour:
Engage employees in conversation: In order to avoid the negative impact of change
taking place in the management structure, people and process it is essential to engage employees

in very activities of an organisation like in decision making process, planning of strategies and
policies, listening of viewpoints of team members. It can be done only if the management adopts
the democratic style of leadership within the organisation.
Advantage:If the management of Tesco will allow each employees to take part in every
activities of an organisation as well as will allow to take decision by themselves then it will turn
into advantage for the firm as each employees will feel like to work for an organisation which
will result in increase in productivity and profitability ratio of a firm.
Disadvantage: In case if the firm adopt autocratic style of leadership which means all
the power lies in the hand of manager and employees are asked not to interferer in any matter
then in this case it will turn into disadvantage for the firm in the form of decrease in productivity
and increase in employees turnover.
Creating culture of learning: Lack of skills and knowledge is also one of the reason
why individual resist change. So in order to develop the knowledge and skills level of each
workers, manager should adopt the culture of learning on a continuous basis and for this manager
should ask the leader of team members to render effective training and development session to
each employees.
Advantage: If the management of Tesco will adopt the culture of learning on continuous
basic then it will be turn into advantage for the firm as it will help the company to easily cope
up with changing situation. Thus, it will lead in increasing the productivity and profitability ratio
of the firm.
Disadvantage: In case if the management of Tesco company doesn't adopt the culture of
learning on continuous basis then it will turn into disadvantage for the firm. Employees will
remain unskilled and cannot adopt the changing environment flexibly which would result in
decrease in the productivity level of the firm.
d) Critical evaluation of the organisational response to change with the help of Systems theory,
Continuous Improvement model and the Burke-Litwen Model.
In order to evaluate the organisational response to change taking place in management
structure manager of Tesco can effectively use system theory, continuous improvement model
and Burke-Litwen model which are examined below:
System theory: This theory is the study of interdisciplinary systems which is a cohesive
conglomeration of interdependent and interrelated parts that is either man made or natural. This

theory is term to be very much useful for Tesco in evaluating the organisational response to
change as it helps in analysing whether different operational activity of an organisation is carried
out in a systematic manner or not. The main goal of this theory is to discover system's
conditions, constraints, dynamics and elucidating principles for purpose, methods, measures etc.
which can be applied to system at ever level of an organisation and in every field so as to achieve
optimized sequentiality. In addition to this it will also help the management of TESCO to be
more specialized concentration on each component which will help in increasing the productivity
of firm.
Continuous improvement: It is an ongoing approach useful for longer duration in order
to enhance processes, products and services. It mainly occurs gradually and aims to make small
incremental changes over a period of time. It becomes parts of a larger change management
initiative. It mainly adopted to change and enhance the business processes so as to increase
efficiency and minimise costs. As the changes in the process, people and management structure
are small thus it is often less resistance and take-up in greatly improved. It consists of four step
quality assurance methods which includes:
Plan: Under this step, the company identifies opportunities and make suitable planning
for changes. For example, planning to make changes in management structure.
Do: Under this stage, the changes has been implemented so as to increase efficiency and
business performance. For example, implementing of planned changes through cutting off jobs.
Check: Under this, the outcome or result has been analysed after implementing planned
changes in order to determine whether such change brings profitable for company or not. For
example, whether cost of company is decreased or not after cutting of jobs.
Act: Under this, action has been made after identifying the issues or problems faced by an
organisation after implementing of changes. For example, increasing employee retention can be
tackled by providing rewards to existing employees according to their performance.
Burke-Litwen model: This model will also be term as essential technique which can be
used by management of Tesco in order to evaluate the organisational response to change in
management structure, people and process as this model strives to bring in change in the
performance of an organisation and of a team by establishing the link between performance and
the external and internal factors which affect the performance. In addition to this it will also

helps the management of Tesco to assess the environmental and organisational factors which can
be tweaked so as to ensure successful change.
TASK 2
a) Analysis of different barriers for change by using force field analysis model as well as crticall
evaluation how it influences leadership decision making to meet organisational objectives
of TESCO .
Understanding barriers to change management will help organisation to create successful
strategies for identifying and implementing change. As change is an essential aspect which every
organisation must avail it, but there exist certain barriers to change of management structure,
people and process. So in order to develop effective an successful strategy management of
TESCO must analyse the different types of barriers which the business might face. It is very
much important for the management of firm to identify potential problems early as this will help
business to develop tailored change management approach in order to overcome difficulties and
hurdles. Therefore barriers to change management can take place due to many factors like
limited understanding of the change and its impact, negative employees attitudes, poor and
inefficient commination etc. and as as result it will lead to financial losses, performance and
productivity of an organisation will drop down.
Internal barrier for employees:
Poor employee participation: This is one of the internal barrier which restrict in
accepting change environment that is taking place in the management structure, people and
process. Without proper participation of workers an organisation cannot achieve its desired goal
on time as well as it may lead to increase in employees turnover. So in such situation decision
making of leader get influenced as a leader of Tesco must motivate and encourage employees to
accept the change environment by rendering them appropriate training session. Thus, it will help
in creating the sense of belongingness in workers for accepting the change in an organisation. In
addition to this management of company must also involve each employees in decision making
process while implementing new strategies and policies within an organisation.
Insufficient skills in employees: This is the another reason because of which barrier for
change can take place. If the employees of the Tesco company will be unskilled and will not
have perfect and appropriate knowledge about the concept and environment in which the

organisation exist then it may result as a barrier for change of management structure, people and
process. This is because unskilled employees will be unable to adopt the change environment
within an organisation. So in this case decision making of leader get highly influence as the
leader of Tesco need to take decision of rendering training and development session to each
unskilled employees so as each workers being highly talented and skilled in every aspect in
which the organisation operates in activities.
Internal barrier for management:
Lack of communication:This is one of the reason which can act as a barrier for change
and it highly influence the decision making of leader. If there exist lack of communication
among leader and followers than it will lead in downfall of productivity and profit margin of
business. So leader of TESCO company needs to render clear information about the change in
environment and use of change in technology to employees through proper training session.
Thus, it will help in increasing the effective implementation of the change of management
structure, process and people of an organisation.
External barriers:
Technology: If the management of Tesco carry out its different operational activity
through the use of old technology then it will lead in decrease in productivity of firm and its will
also act as a external barriers for change of management structure, process and people. So in
order to increase the profit margin and the productivity management of Tesco need to adopt the
updated and modern technology which would help in coming up with superior quality products.
Therefore such change in management greatly influence the decision making of leader as the
leader need to take decision of rendering trainings session so that each employees be aware about
the use of updated technology.
Legal:As government legal laws and regulation keeps on changing like discrimination act
has been implemented as a legal law. If the management of TESCO will frame strategies and
policies without taking into consideration government legal laws then it will act as a barrier for
change of management structure, people and process . So in order to overcome these barrier firm
must frame policies as per the legal laws and a leader should ensure that each employees perform
there activities taking into consideration the legal laws.
Force- field analysis model: