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21st century is a time period of competition. This competition has let the rapid growth in technology. The advancement in technology has fostered the organisation to improve the product rapidly. It brought the continuous change in the trend, new trends comes fades away in a short span of time. Change comes with lots of opportunity and threats. In order to capitalize the opportunity and minimize the threat it is important to work according to certain model and principals of change that helps organisation to work strategically with the challenge of change. Since change comes with various challenges because change challenges the people well established habits and belief. In this context it becomes immense important for the manager that a find out a mid-way for the ease of the people working in the organisation (Alavi and Gill, 2017). Morrison Company is one the leading retailer in the U.K. and has introduced various new patterns in market successfully.
P1 Change impact on different organization’s strategies and operations:-
Change is everywhere and inevitable the most important aspects of change coming from – people ( customers and employees), technology, social and cultural trends, competitors etc. As the economic, legal, political social trends and technical environment transform the way people live and work those impact on the organization strategy , procedures and day to day operations. According to current scenario changes are essential for each and every organization irrespective to size ( big, small, medium) for their survival and if an organization has not taken the right decision right time it can be lost its market share and image among customers. To analyze the various factors at different level top management formulate the strategy to introduce and implement change in the company and these strategies are vary from one organization to another depend upon situational requirement and company’s objective and goal here we are taking two companies Morrisons and ALDI both the companies are related to retail sectors and provides same offering (product range ) in clothing, groceries ,domestic commodities etc.
This company’s is known for the adaption of technological change and superfast delivery supply chain for get high revenue company always update its all system technically and give benefits to both employees at workplace and delight customers by their offerings (Anderson, 2016).
Respect to ALDI, emerging technology and technological advancement impact the process of the company and its working on it to use the technology to introduce new innovative products in market which fulfill the need of their customers.
Influence and changes of external factors
External factors of any business effect the operation and strategy of the company like changes in govt. policies, economic changes, business cycle, rivals actions etc. Its has both positive and negative impact on the company its depend on the top management how to use company’s strengths and weakness to create new opportunity and mitigate threat.
The all business operate between external and internal environmental factors which are the similar for the all firms these factors leads to adapt change according to present scenario in most suitable manner.
Presently Morrisons has approx 500 stores in U.K. and other location worldwide. The total number of employees working with company 132000 approx who deliver best services to delight the customers. The company gives tough competition to its rivals like Tesco, walmart, ALDI. The company serve the customers in wide variety of range products related to food, drink, appreals, household commodities etc.for working at large level company has to adapt flexible model and diversify and divisional structure at workplace.
As compare to Morrisons, ALDI have approx10000 stores around 20 countries at worldwide and expanding its business at rapid growth but Morrisons, tesco, walmart are the biggest competitors (Doppelt, 2017)
As per above discussion we know that the any change occurs in external factors impact on internal factors (link to each other) so its duty of the managers of the Morrisons to initiate and implement new strategies at workplace which has favorable impact on the company before taking decision company management should keep in mind following points:-
To take competitive advantage at market place the top administrative formulate the policies to consider all impacts of its steps and how to cope with the challenges faced during implementation.
After formulate the strategy management successful implement the strategy and control all factors at various level due to change and analyze positive and negative impact on the company due to change in operations )(Fragouli and Ibidapo, 2015).
P2 External and internal drivers of change which impact on leadership, team and individual behavior within an organization
Change is inevitable in history of an organization. If change introduce in an organization its disrupted the internal working and operation at various level. There are various external and internal drivers which leads towards change in company’s structures, strategy and decision making process these are following:-
- Customers (end consumer):-
Customers are called the king of the market if a company wants to growth and survival at marketplace firstly knows the need and wants of their clients and understand what will be their customers next desires? So company’s top management have to change their structure (divisional, departmental, central etc.), process (production, supply change, employees task modification) and strategy according to their client recommendation and behaviour (Van der Voet, Kuipers and Groeneveld, 2015).
Competitors leads to change in a company’s operation due to their invention they capture market and make the rival’s products and services outdated from the market this type of activities leads an organization towards change their agendas and policies.
- Technology drivers:-
Today’s world of technology and tremendous changes take place in market which effects organization operation. In technological world a company must adapt those changes to survival and compete with their competitors and satisfy their customers needs.
- Investors :-
Investors are those individual or firms whose invest money to getting better outcomes for their investment and these leads to favourable condition for an organization to adapt change which is beneficial for the company and investors (Painter and Clark, 2015).
- Government’s initiative:-
Governments policies and agenda leads a company to change their policies which is suitable according to present circumstances example:-governments agendas, plan, export -import policies.
External and internal factors of Morrisons are followings:-
External factors are:-
The business cycle different phases impact the company strategy at different level. Rate of unemployment, inflation rate, taxation are the reason which influence Morrisons firm to change their present strategy to deliver better to their customers.
Morrisons company incorporated under all the legal rules and regulation to operate business activities smoothly. U.K. government passed various laws to secure customers and employees rights. The company’s all campaign influence by the government agendas like:- U.K. government concern about the employees health and nutrition foods etc. so company run a campaign to aware people by the tagline “take good care of your customers, employees and society”.
- Social :-
There are drastic change in lifestyle of people in U.K. like:- they are become more health conscious and passive about their health and choose organic products instead of fast food this has impact on growth rate of the company and the firm change their product line according their customer requirement.
- Technology :-
Technological advancement and improvement leads firm to adapt changes in technological field which leads firm to first mover advantage of these type of innovation and capture wide market place (Lloyd, Boer and Voelpel, 2017)
Internal factors are:-
Morrisons has supermarket chain in U.K. which has offer largest product portfolio and wide variety of products to satisfy different type of customer segment needs. it’s known as the company’s strengths to acquire wide marketplace and its also known as its well delivery process of products at time which build a positive image among customers.
As compare to its competitors ALDI, Tesco etc. Morrisons has less numbers of outlet and its limited geographical stores considers company’s weakness to reach wide customers base.
Change in people lifestyle ,preference and behavior creates opportunity for firm like:- organic food and company provides wide variety of products to customers and compete their rivals to satisfy their eagerly needs.
Technological changes, numbers of competitors and their action create threats for the Morison’s. In addition organic foods awareness and their prices are consider as the threats for the company.
P3 Measure to minimize negative impact of change on organizational behavior
When change introduce in organization employees of company resist to adapt the change and various challenges faced by the top administration at the time modify and change their strategy and policies and its negative impact on organization day to day working (Komives, 2016).
There are various steps taken by top management and HR manager to minimize the effect of change on organization behaviour these are following:-
At the time when change occurs in a company leaders are face many problems and that can be resolve through communication with employees and communicate them the benefits and requirement of change like its essential for both individual and company growth.
Participation of employees at various level makes favourable for the company while drafting change strategy for this they know well and understand why this step important and compulsory for the company.
- Conducting meetings and seminars:-
Through various meeting and seminars leaders are communicate employees about the recent steps taken by the top management and also introduce the procedures how change take place and its positive impact and resolve the complains and queries of the employee respect to change management policies.
- Education and training:-
The team leaders provides necessary education and training to their team members according to task accomplish by the employees and also identify the strengths and weakness of the employees and use their skills set to achieve company’s target (Jones and Harris, 2014).
A leader play an important role when change take place in an organization to motivate employee and build their confidence to adapt the necessary changes occurs in the company and create a good image of the company and also mitigates the barriers which resists to adapt the change by the employees.
Employee resist the change due to their fear of unknown, job loss and habit to perform certain task this time HR managers play an important role to negotiate them at various level respect to salary, working hours, working condition, training etc.
It’s a leader task to motivate team members to complete their task and build their confidence through understand their strengths and weakness well and use them in effective manner to accomplish organizational goal.
- The “A VICTORY” Model:-
“A VICTORY” Model is facilitate the factors behind change and successful implementation of change and serve the review behind the application of change.
A:- Ability- this steps review the existing abilities and capabilities of the company in terms of technology, market share , product range, management role ,employee skill sets , financial resources etc. and find out the availability of existing resources.
V:- Value- in this review the compatibility of top managements attitudes and practices with the company’s value system, culture and norms are change suitable for the company (Hillson and Murray-Webster, 2017)
I:-Idea /Information:-At this management of the company’s task to provide complex information in simple form so they can manage the negative impact of this and understand the need of change by the all members of the administrative committee.
T:- T- In this analyze it is the right timing to introduce change in the company? and firm ready to adapt those changes.
O:-Obligation – the top management perceive the all complications and benefits behind change purpose. Are they ready to take responsibility of this process? and committed towards their goal.
R:- Resistance:- what is the level of employees resistance of change? And how can the manager overcome through this.
Y:- Yield:- what are the benefits and outcome behind change and are the leaders ready to implement it.
P4 Different obstacle for change and determine their influence on leadership decision-making
Organisation are comprises of multiple managerial levels and functional departments. Each department perform many actions and activities. Since these department perform various tasks their activities are planned and controlled by efficient leaders. In the event of change it become challenging for the leaders to control and planned the action of work force as the efficiency of the team goes down due to impact of change on team. The leader plays important role in this phase as they motivate and encourage the team to work hard in the diverse situation (Gupta, 2011). They keep on telling the benefits of change. How this change will benefit them in their personal and professional growth. At this time workforce faces many barriers which stop them to work and become a productive resource for the firm since it becomes the culture barrier.
- Resistance to change: The most common barrier to change is the resistance to change. This barrier is addressed by various management guru and leaders. However this resistance happens due to the fear of being failure. People avoid adopting change because they fear the happening of failure. They feel trying new thing may create hardness in life and may affect their position and efficiency. This resistance can be minimized by involving employees in the change management process. When employees are included in the change process they are aware of the planning and process and most important thing they understand the reason and need of change hence they give their best to introduce change.Another way to reduce resistance is to empower employees. By empowering employees leader can manage change effectively. Empowerment let the employees accountable for their steps hence they act more responsibly.
Change influence he decision making of leader in many ways. It also affects the leadership style and sometimes results into the shift or change in leadership pattern. Various model and theories are gives by various scholars to help leader in taking right and efficient decision in change management (Fullan, 2014). Below give the model for the decision making in change management:
Force field analysis: Force field analysis model is given by Mr. Kurt lewin in 1940. This model works to figure out a mid-way between force to change and resistance to change. This is a very effective tool in change management.
Phase1 Plan of change: The 1st step is to make a plan of change. This should comprise of all steps included in change as well as the impact/benefit of change.
Phase2 Needs/force of change: The next step is to figure out the need of the change. This step should address the justification of the change. This step should address following questions:-
- What purpose this change will serve?
- How much it is needed?
- Benefits from this change?
In this step the company should gather the information and urgency of the change. A micro level research should be done to gain more realistic and concrete data so that the result could become more realistic (Fragouli and Ibidapo, 2015). It is also required because the change may contribute in enhancing the internal strength of the organisation.
Phase3 Barrier to change: The next step is to figure the obstacle of the change. This step is related to the work force. An in-depth research is required to understand the concern of the team with regards to change. This step should answer the following question:
- Fear attached with the change?
- Workforce prospective about the change?
- Any obligation related to government legislation or industry standard.
In this step, organisations need to understand its internal strength to change. Any change which has more weight than its organisation strength could be riskier.
Phase4 Assign score: After making a chart of force in favour of change and in against of change the next task is to assign the number/weighted to each force. On the basis of importance of each step the weighted should be assigning.
Phase5 Analyse and Apply: In this step organisation should analysis it’s favourable and unfavourable forces. With the basis of this a mid-way should be created which create a balance between driving force and resisting force. In this change management the task of the leader is to create and maintain the balance of driving and resistance force.
P5 Different leadership approaches to manage changes
Leadership is skill to understand people, manage them and motivate them to work. Leaders require a skills set that help them to perform tasks. At the time of change few managerial and leadership approaches becomes more important than others. There are 14 principle of management given by Henry Feyol and various leadership styles (Doppelt, 2017). Each leadership style is suitable for specific work and condition. All these tools help leaders to work with effectiveness and efficiency. Given below describe the few of them:
- Directing: The most important element of the leadership is to direct people. The word direction is related with the directing people individually. This is a one to one approach hence leader need to focus on each and every employee their strength and weakness the applicability of the same in the given scenario. Directing the employees according to individual strength and weakness is important because a situation may be easy for one employee but may be tougher for another employee. This all depends upon individual capabilities and interest area. The leader should give the direction according which help employees to work efficiently even in the diverse situation.
- Controlling: Another important element is to control the action and activities of the employees. After giving the direction to the employees it is important to control the action of the employees. This is an important approach as it saves the organization resources and time (Anderson, 2016). Controlling is done by the leader to give specific and work area to employee. It helps employees to understand their scope of work. This is also important as it controls the activities of the employees with this workers do not get enter into others people work. Hence organization conflicts are minimized and a harmony is created.
- Monitoring: Monitoring is keeping eyes on the work of the employee. It is not a micro-management. Micro-management is negative in nature. Monitoring is done to watch the procedure of the employee. This is required for giving feedback to the employees for their work as well as it is also useful in creating training or counseling session for the employee. This is a very important approach as it helps leader to suggest improvement area to the employee as well as assisting the employee in case if the employee is facing any issue or difficulty in performing the task.
- Coaching: Coaches establishes a goal before its team and prepare its team to achieve goal. In change management a goal is decided according to that leader decides the strategies to achieve these goals. Coaching is a very effective tool as it helps leader to work as a team with it employees. Like in each team everyone has their own work area and responsibilities. On the same leader create a team of people according to the potential and capabilities of the employees the task are assigned to the team member. As a team work together and helps each other achieving their goal in the leadership of their coach. On the same way team work together and help each other to achieve their task.
- Support and assistance: The next approach of leadership is to offer support and assistance. Sometimes a person who is going through with the change find it difficult to manage the impact of change hence it affects the emotional structure of the employees. It may sometimes result into low morale and negativity in the employees. At this time it is immense important for the leader to offer an emotional support to the employee (Alavi and Gill, 2017). It is much needed for the leader to build a connect with employee and help to overcome this situation by providing proper counseling and consultancy. The leader in this situation should work a supporter and sometime also assist the employee in their task as well.
- Empowerment: The literal meaning of the empowerment is to strengthen people. In the current scenario the efficient leaders are those who make their team more strong and capable.In the event of change a leader should empower their employees by delegating more authority to their subordinate. The more authority comes with more responsibilities. This makes employees accountable for their work and decision hence they experience a sense of responsibility as well as accountability. With these employees understands their role and importance in the organization and work with more dedication and sincerity.
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Change is the only constant thing in this universe. In this project a need and importance of the changes are elaborated. By reading this project one would be able to understand the context of change as well as its applicability in current business scenario. The major impact of change and barriers of change are also addressed in this project. The role of leader in this event of changes is also described very well. Once can easily understand the happening of resistance to change through this project. All important and famous models are described in this project. By reading this project one would understand that change is mandatory and it comes with lots of challenges but it is very important and beneficial also. Change is very challenging but it could be easier to handle if few managerial concepts are used and applied successfully.
- Fragouli, E. and Ibidapo, B., 2015. Leading in crisis: Leading organizational change & business development. International Journal of Information, Business and Management. 7(3). p.71.
- Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John Wiley & Sons.
- Gupta, P., 2011. Leading innovation change-The Kotter way. International Journal of Innovation Science. 3(3). pp.141-150.
- Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude. Routledge.