Understanding and Leading Change: Business Report (HND Unit 17)

This report, focusing on HND Business Unit 17: Understanding and Leading Change, examines the multifaceted aspects of organizational change and its impact on business strategy and operations. It delves into the influence of both internal and external drivers, such as technological advancements, customer demands, and competitive pressures, on leadership approaches, team dynamics, and individual behaviors within organizations. The report uses Apple and Samsung as case studies to illustrate these concepts. It also evaluates measures organizations can implement to mitigate the negative effects of change on organizational behavior, identifies barriers to change, and analyzes various leadership strategies employed during periods of transition. The analysis includes how organizations can adapt and thrive in response to market dynamics and technological advancements, emphasizing the importance of strategic planning, effective communication, and employee engagement. The report offers a comprehensive overview of change management, providing valuable insights for leaders and managers navigating complex organizational transformations.

Understanding and
Leading change

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1 Impact of change on organization’s strategy and operations.................................................4
P2 Evaluation of ways through which internal or external drivers of change affect leadership,
team and individual behaviour....................................................................................................6
P3 Measures taken by organization to reduce negative impact of change on organizational
behaviour.....................................................................................................................................9
TASK 2..........................................................................................................................................11
P4. Different barriers of change and their influence on decision making.................................11
TASK3ar.......................................................................................................................................13
P5 Different approaches of leadership while dealing with change:..........................................13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Organizational change is involves go over and modifying management structures and
business processes. Every business today must change to survive against competitors and to
remain competitive. To be successful in today’s competitive world, companies need to find ways
to behave more efficiently and cost effectively. This leads to changes being implemented in
organisations. Culture of organisation is affected by the internal and external behaviour of
environment. Business environment is dynamic in nature which alters frequently due to market
trends, customer demand, needs and desire for unique products (Alkahtani and et. al., 2011). The
whole attitude of environment enforces company to make changes in their working style in order
to remain sustain in competitive market. Understanding of changes is considered one of the
essential factors for making business operations more progressive in nature. Modification in
traditional hierarchy required in order to reduce the market threads and explore opportunity in
order to gain competitive edge over competitors. Changes have multiple negative effects in
organisation climate like anxiety, fear of retrenchment, demotion and reduction in compensation
policy. So their is a need to make great discussion of all problems of working employees with
leaders through training session which help a lot o overcome from the phase of depression and
instability. The main object of whole efforts is to prove that changes in management strategy,
policies bring good outcomes in long run. The report includes Apple and Samsung involved in
telecommunication sector with major objective of providing quality services to their target
audience.
TASK 1
P1 Impact of change on organization’s strategy and operations
Business runs in society. And society’s environment is dynamic. Hence if there are
chances in change in any component of society, then it impacts on business also. Organization’s
strategy stands for plans and decisions made for running of business. These strategies not only
help in running company smoothly but also prepare management to face future uncertainties. To
become successful in industry company have to modify its policies. If any company does not run
as per need of environment it will get lost and consumer does not recognize it. So there is direct
impact of change in any market component it affects company either in positive or negative way.
These frequent changes make organization to compete in industry and beneficial for growth as
well.

Sometimes it is mandate for organizations to modify its policies and plan. There is
technological change then it will be beneficial for company and individual as well. In case of
technological upliftment, there is requirement of less workers and production will be done with
more speed (Aslan and Reigeluth, 2013) . From the view of employees, they feel more motivated
and interested to work new technology. But for some people this change is positive while for
others it is negative. Leader or manger has to analyze views of different individual so that plans
can be implemented more effectively. Samsung and Apple are two major companies deal in
mobile industries all over the world. Apple is a big organization as compared to Samsung. These
big companies get more affected by change in environmental factor. Impact on Apple and
Samsung are discussed below:
Basis Apple Samsung
Technological changes Apple produces high cost
mobile phones. It deals in Ios
so as per customer need there
is requirement of updated
version. It requires huge cost
for research and development
and planning.
There is requirement of
upgraded technique for
customer satisfaction.
Samsung has to change its
technology as per society need
and competitor strategy. It
provides chances of reduction
in production time though it
requires fund as well.
Change in external
environment
This company deals in
different operating system as
compared to other companies.
There are different group of
society which are target
customers of Apple. They
gets affected by external
factors but as Hence it gets
less affect from external
environment, still they have
to alter their plans and
There are large group of
customer range with which
company has to deal. There
occupy large customer share.
To make existence in market
they have to modify their
strategies and operations
manager has to analyse market
factors and motivates
subordinates to achieve them.

policies.
Structural changes This is internal factor of
company. This is also major
issue due to which company’s
performance may get
affected.
There is problems arise in
company when there is change
in management of
organization. Some personnel
are resist to change as they are
scare of losing their job, it
causes problem for company.
So management of Samsung
provide them feeling of
security.
Management of any company has to deal with it when there change in environment of
business. Managers have to try to come up with some new idea to resolve problem and modify
their working style (Fagerström and Salmela, 2010). It is important task of superiors and top
level personnel of Samsung and Apple to check regular what need of society is and come with
that alternative idea and motivate union members to achieve organizational goal. Apple is a
company who are rigid regarding their technological factor, this proves to be negative impact for
company’s growth.
P2 Evaluation of ways through which internal or external drivers of change affect leadership,
team and individual behaviour
Any change in society either due to internal or external affects business in various ways.
Company management has to check with which company can deal. These factors affect
leadership policies also. It means working style also gets disturbed. Apple and Samsung also deal
with these changes, there are five ways which affects leadership, group and personal behaviour: Technological led driver: In mobile industry technology is most important aspect. Hence
companies have to keep check on technological changes take place in society. It not only
speeds up their growth but increases customer faith in brand.
 Investor led driver: every company want finance to boost up, managers or top level
personnel has to analyze all options of investors. Such factor should be opted which does
not need huge cost and formalities.

 Customer led driver: Customer is king of any brand. This is the factor which provides
business heights or lows. Samsung and Apple have regularly research about change in
desire of consumer.
 Government led driver: Business runs in society and government works as watch dog in
society. This reduces the chances of fraud in society. As per change in any legal formality
then company have to modify its plans and operations.
 Competitor led driver: Business runs in society where many other companies exists.
Samsung have many competitors. If it does not provide services as per need of consumer
then it reduces their brand value and shifts to other company (Finnigan and Stewart,
2010). These factors hamper working of company and in case no importance is given to
these then there is less chances of growth. Companies have no control over such ways but
they can reduce its effectiveness up to an extent. Companies have to use PEST to deal
with external forces. Political: There are changes in rules as per change in political party. Samsung and Apple
operate its business in different parts of world. Change in this force affects individual
behaviour also.
 Economical: Any resource opted by company must be cheapo and easily available, this
not only reduces cost but also make ease to operate business. Apple and Samsung
research and analyze about such things.
 Social: Business runs in society, hence companies have to take care of changes happen in
culture. Alteration in society is reason to alter companies’ operations also. To develop
business there is requirement to measure social changes.
 Technological: Techniques up gradation is as important as development of business. It is
required to measure changes take place in society and hence give research to opt most
suitable way to accept it (Foltin and Keller, 2012).With external environment internal
factors are equally important. As they also affect company and it is also needed that they
are analysed carefully. Corrective measures are taken reduce effect of these factors. They
not only affect business growth but employee’s behaviour as well. Internal factors can
measure by SWOT analysis.

 Strength: For Apple it is beneficial that they serve different operating system as
compared to other companies. Hence they have less competitors in market. While in case
of Samsung they have high brand value as compared to others.
 Weakness: Apple serves to niche market, they accesses to limited group of society. Their
products are costly as compared to other companies. Hence this proofs to be negative for
them. Samsung competes with all brands, so they have alter their policies accordingly.
This frequently change does not bring quality.
 Opportunity: Companies have to search in market that what all opportunities they can
grab. This provides edge over competitors. There are sometimes good options which
company can avail and expand in market.
 Threat: It is something of which company has fear. In UK initial people are more prefer
to use Apple phones but as they are expensive and limited edition. People start switching
over other brands. It creates fear of losing customers in the mind of company.
Changes that affects leadership
These above changes affects the individual behaviour also. There is change in nature of
leaders and managers also, they consider such things which are more beneficial for company as
well as employee. In case of change there are many things which motivator has to take into
consideration. There is more queries arrive as comparison to normal.
Changes affects individual and team performance
Change not only affects individual behaviour but also affects team performance. As there
is need to motivate team and there is feeling of competition in organisation which may cause
conflicts. Above discussed drivers may affect individual and team behaviour as under-
 Bad communication- Communication is most important thing that take place in
organisation. It can be noted with the help of communication way employer can know
how staff react towards change.

 Loss of job- Due to change in company's policies that there are chance employees's may
feel fear of getting loss of job. Due to this fear employee may not accept the
modification.
 Poor timing- While communicating any change in organisation it is important that it
must be communicated at right time. In case of wrong timing this is also a reason of
failure to accept it.
 Lack of rewards- Change is beneficial to organisation, but workers will accept it if that
change is beneficial for them also. If there are less rewards employees will not accept
changes.
 Office politics- This is the main task which has to taken care while applying any change
in company. Office politics create such environment in company that there is unity in
company, that influence maximum number of people and they reject the modification.
P3 Measures taken by organization to reduce negative impact of change on organizational
behaviour
Change makes little more efforts to accept and move on. There are many factors which
affect operations and smoothing working of organization. Top level management has to analyze
working style in organization and then try best to apply them on organization. Leader has to be
positive and adaptable to change so that they can motivate employees to accept it. Company
should apply following steps to reduce effectiveness of changes-
 Creation of pathway: It is duty of manager to create a path with which subordinates can
work and try to achieve objectives of company even after getting change in market. It
requires lot of planning (Fyke and Buzzanell, 2013). Various alternatives are analyzed
and among them best should be opted.
 Explain about plans: After choosing best technique it has to be delivered to staff so that
effective efficiency application can be done. There are various queries by workers,
manager has to clear them all and provide comfortable environment.
 Participation in meetings and seminar groups: In case of any major change in
environment industry organize seminars. Management of company has to participate in
them so that they can come to know about current scenario. This will provide ease to

them while planning as well. There will be discussion and many more new ideas came in
mind.
 Managing planning and its implementation: Afterwards company has to plan its
policies. It is not mandatory to accept policies as it is. Company can make chances as per
need and availability of resources and then afterwards proper implementation has to be
done (Gupta, 2011). Implementation of plan with suitable goals and targets: Every organization has its
objectives for which they operate. Hence while applying plans to job it is required that
there is specific goal. There can be short terms goals, it motivates employees also to work
efficiently.
 Praise employees- To make employees motivated manager has to motivate them.
Employees work with more energy if they are getting praise from top level management.
 Employees commitment- Top level management have to make employees committed
regarding task assign to them. It is important as they feel competitive towards what they
are assigned.
 Personal interview-After applying change in working style in organisation, it is
important that manager has to ask personally from employees about their feeling towards
change. In case of any query manager has to clear them.
Proper delegation- There is proper delegation of authority to employees. According to it
only responsibility is assigned. It reduces the chances of confusion in accountability.
From the above discussion it is concluded that not only company gets affects from
environmental change employee and consumer behaviour also changes, which ultimately
hampers organization. External as well as internal factors equally disturb operations of company.
Samsung has more competitors and have huge consumer range. They have to plan their
strategies as per need of society and policies of competitors. Hence they follow steps above
mentioned so that they reduce chances of conflicts in company. This not only improves
efficiency but also provides growth to organization.

TASK 2
P4. Different barriers of change and their influence on decision making
There are different hurdles which influence the decision making of company. Many
studies designed to examine the positive challenges of good leadership as an ongoing process
may have various application that impact on attainment of organisational objectives. Model
given by Edgar Schien professor of management Emeritus who give the brief detail about the
effect of changes on organisational culture. Many problems arises which is related to government
and political conditions, internal external environment affected by high competition or other
personal disputes between the strategic, middle and operational level which create barrier in
decision making.
When leader at top level takes the decision related to introducing new product in market due
to customer demand, increase prices, quality, supply and logistic change and adaptation of new
technology (Hallinger and Heck, 2011). The main problems arises related to survival and
retention due to frequent changes in internal and external environment which shows the negative
impact on the behaviour of internal employees and they are resistance to change. Further
problem of restructuring the organisation culture which make organisation more ethical and
enhance their brand equity. Some of the models and approaches in aspect to Thomas cook as
follows:-
Self efficiency perceptions and resistance to change
At the time when new changes are adopted in organisational culture especially in internal
environment then employees under the premises has self perception that alteration affect their
ability, skills, talent and their career advancement. Thus, they resist changes because of
scarceness of any weakness coming during whole process and this thinking of staff make
modification impossible. A lot of time, energy and cost involved to change the perception of
employee from negative opinion into positive one.
Another problem arises at the time of upgrading new technology, initiative by leader for
digitalisation of whole process because employees are not trained and educated for the use of
new technology so leaders required organising training programmes for giving education for
usability of technology (Hintz and Bahia, 2013). It create barrier at the time of matching with
competitors position in that particular fields.
Force field analysis:-

This model is given by Kurt lewin which supports the culture change but some
opposition created against such approach. Leaders find difficulty at the time of taken hard
decisions because he or she is not specialised in every field which create barrier. Hurdles arises
in the form of lesser participation by employees, more labour turnover, frequent modifications in
external environment and dilute of brand image due to staff negative attitude regarding new
technology. Sometime forces are against changes due to existing organisational structure which
act as a barrier in reorganising modern structure for different departments.
For example Apple is multinational US based company face difficulty at the time of competitors
come with android software at cheap price which attract customers.
Situational resistance to change
This whole theory is situation based i.e. company make changes according to the set vision
and objectives of organisation. The main objective behind this approach is altering working
culture of organisation so that organisation policies, procedures and way of offering their
products and services attracted their set target audience and provides a competitive edge over
competitors (Jones, 2011) ..Sometimes company adopt rigid style in their working style so in
such case this theory doesn’t work and act as a barrier in organisational decision making and
change management.
Case study:-t
Under this situation leader plan to gather whole employees at one place through training
development programs. In this case study related to recent market situation is given in which
staffs has to deal. The main objective of leader behind it to gather the different opinion,
innovative ideas from every employee in order to take rational decision related to alteration in
upcoming market strategies. But this vast discussion brings clashes in relation between superior
and subordinate which act as a barrier in decision making of organisation.
Lack of communication:-
Mostly it has seen that in large organisation where communication network is wide.
Sometimes ineffective communication with all the employees invites rumors and fears into
workplace, particularly at the time of downsizing or a merger. In such cases confusing
environment created in the minds of employees because they unaware about the thing that
happen in organisation due to lack of training and development.
Employee Resistance:-

This problem arises with the existing employees who always resist to adopt new environment
culture. For example Apple is large software company where new innovation regarding
technology done frequently. Sometime major alteration disrupts employee familiarity and this
leads to dissatisfaction among them.
Planning
it means deciding in advance all the policies, strategies company need to formulate in order to
achieving the targets effectively. However company does not follow step by step planning, so
those change which give benefit to organisation create problems. For example if Apple think to
adopt new organisation structure then top management has to consider whether these alterations
is compatible to old system. For effective planning company need to assign all the task to
individuals according to their specialisation zone.
Some other points that act as barrier and influence decision making:-
 lack of coordination for managing beginning and ending in changing process.
 Barrier sometime not understand which leads to low morale, high staff turnover.
 Success are not recognised, communicated or celebrate which is very important to
increase the pace of change and gain the commitment to new ways of doing things.
 At the time when progress are not measured and learning are not reviewed that act as
barrier in decision making.
TASK3ar
P5 Different approaches of leadership while dealing with change:
Laissez faire leadership style:
This leadership style is described by Lewin, Lippitt and white in 1938. According to this style
all the rights and power to make decision is fully given to the workers or in other word it is also
known as delegative style in which the leader believes in freedom of choice for his team. For
example in apple this style is most popular because every employee get the chance to express his
opinion and take decision in their own capacity related to every task. Under this major
disadvantage is that leader has less control over subordinate which sometime lead to hasty
decision.
Transactional leadership style:
This leadership style based on performance results. If employee perform well receive
rewards and if they show less interest then liable for punishment. For example in Apple