In present business world, it has become vital for organisations to understand and focus on changes that are being faced by them. It is necessary because, if firms do not absorb these alterations right on time then it may lead to face ample number of issues (Kotter, 2012).Difficulty here, can be related to profit margins, long term sustainability and so on which may create. In this report, firm which has been chosen i.e. AEGON which is a multinational pension, asset management and life insurance company, it's headquarter is in The Hague, Netherlands. It was found in 1983 and from than it is continuously offering its services to millions of people with 28,318 staff members.
Assignment will show a number of organisational examples, internal and external drivers of change affect leadership, steps through which minimisation of negative impacts of change on organisational behaviour can be done. Lastly, assessment will cover different leadership approaches so that deal can be done with alterations that are being faced by business firms at global business environment.
P1. Compare different organisational examples where there has been an impact of change on an organisation’s strategy and operations
In modern era, it is being found that most of the business organisations are performing in various sectors with an aim of earning profit margins or for welfare of the society. Apart from this, firms have made own kind of approaches do deal with different situations which can put them into trouble (Doppelt, 2017). In present case, since AEGON which is a multinational pension, life insurance and asset management organisation, is looking forward to become a well-known brand in all over the world, but government-imposed price controls and as company is doing business with different local entities, it has impacted negatively on their performance level and reduced profit margins as well. Here, some of factors like innovation, technological development, economical fluctuations, taxation policies have been considered as some of major reasons which impacted the most and made AEGON's Ceo to create a new culture so that change can be brought in and modifications can be made so that objectives of the organisation can be attained right on time.
It is being found that modifications are required for every single organisation so that it can sustain at marketplace for a longer period of time. It may show impact on business as positive and negative way. Therefore, an industry manager needs to analysis of latest trend of demand and market place of customer so that changes can be done as per their requirement according to present scenario, AEGON based on the UK and one of the world's largest life insurance and pension companies. It provides life insurance, owns and asset management and adviser business in UK. It is helping AEGON for moving to acquire that are related to long term savings and protection business with in the UK. After sustainable economic condition of country, many new venture are launching business in same field in fast manner.
It impacts on productivity and productivity of this business so, to make its orientation tight in market place and give a hard competition to rivals like Aviva Plc (Yoder-Wise, 2014). For business maintain growth need to some changes that are helping in growth like create changes in technologies and regular interval in part of work according to time. In order to know how to changes are effected to functions of AEGON and its competitor Aviva Plc, a distinguish shows between both companies are as follows -
AEGON is a largest life insurance company in UK which operates its business on several locations with in AEGON group. They are operate business
Aviva Plc was founded on 2000 (18 years ago) in London by sir Adrian Montague. After changes responses are as modify business structure. With the help of trends, it getting success in running business.
Changes in external factors
In business environment of an organization represent several factors which are shows impact direct and indirect manner. In external environment including changes in politics, technological changes, economics rates and fluctuations ion taxation rate. These factors are effected to AEGON company and bring to modification on working system. It has operated on big level so there is need to huge amount of capital. So it is not effectively bringing changes on big level and not failed to bring much alteration in working system. These are affect to sustainability and performance on market place. So mangers have to formulate new strategies in effective way for positive response.
Aviva Plc is rival company of AEGON group that are based on UK. Aviva plc operates business on big level to execute functions. So for response to change it has made several modifications in company structure. With the help of market trends it getting success in running business on market place.
In order to bring changes in business environment, it is necessary for AEGON to develop policies and strategies in systematic manner. But before implement strategies and policies, mangers should notice impact after changes on techniques and system of the business structure. If its impact are shows as negative so it can be reduced (Hrebiniak, 2013). They prepare a perfect plan for company and presenting in front of investors to convince to invest in new project which will be helpful for operating entire activities in correct way.
After implementation proper strategies in effective way, it is necessary for managers to appoint work force in suitable manner. They are influence to employee for accept changes and work accordingly new project that can be completed on time. In component to this, there are required to necessary training to employees according to new task with new system work. After training they become able to working properly and in effective manner.
P2. Evaluate the ways in which internal and external drivers of change affect leadership, team and individual behaviours within an organisation
In every organisation manager play important role who take entire responsibilities to manage work place in effective manner. In broadly, they analysis several activities in order to trends of market place and create modification in business structure. (Wagner, 2016). According to case study managers play an effective role to measuring changes of drivers that can be as follows -
Customer led services –
This type of key driver bringing changes in working system and part of organisation. So there is required to fulfil of demands of customer and satisfied in high manner. Here, customers of
Competitor led services –
In present scenario, government has provided help to several entrepreneurs for launch business plan easily. After establishment in market arises competition for existing companies like AEGON. There is manager play important role and prepare new strategies for company to reduce impact on business and organisation run in profitable manner.
Technology led services –
Due to fast change in technology, it is required to managers they are bringing latest technology that will become in market. These technologies provide better services to all companies in suitable manner.
SWOT Analysis of AEGON -
· AEGON has a global existence with strong market position in key markets.
· For sells its products company maintain multiple distribution channels because it will be helping to reduce distribution risk after expose.
· This company have strong capital strength for market development and 24000 employees.
· It is expertise in life insurance, pensions and asset management.
· The company has significant aspect to risky independent debt are related to European countries.
· It is extremely dependent on the American markets for profits and also dependent on subsidiary dividend contribution.
· The population of United Kingdom getting huge opportunity related to retirement market.
· For reduce fluctuations in financial market company focusing on its core business because they are provided opportunity in big way.
· The company mostly finds opportunity in Indian and Chinese insurance market because of population.
· The company faces sub-prime crisis due to low policy rate according to environment.
· After adaptation solvency 2 company going to faces competition for capital.
· There is an increases
Impact of changes on leadership, team and individual behaviour of AEGON company -
Due to changes in external and internal business environment, there is requirement for leaders and managers to change their style according to the situation that will create in company. They can adopt leadership styles such as democratic, autocratic, transformational and strategic and more to lead employee in a proper manner.
After successfully implementation of changes into work place manger require take a meeting with whole team regarding to different task. But during in work process team create many problems on work place when they are performing because they belongs to different back grounds. Due to this, many conflicts are arising among them.
When any changes are occur in company it will influence on workers as individual basis. In organisation have different types of employees and they have different type skills and capabilities that are using for work. When new technologies are brought in business that time some employees feel unsecure regarding their role in company.
P3. Evaluate measures that can be taken to minimise negative impacts of change on organisational behaviour
Change is essential part of business life because it allows an organization to adapt something better from the environment and improve its market position. It is process that affect all business due to which all managers of company get prepare their personnel, process and strategy for change. Change in an organization can affect business in both way negative and positive. Positive impact of change in AEGON are- it boost morale of employees, maintain day to day operations, improve process, motivate employees etc.
but it has also some negative impact on the respective organization such as- manager of respective firm has to plan new strategies which is time taking and develop mental stress, when AEGON adopt change they do cost cutting which directly impact on employees’ salaries and benefits etc. So to avoid negative impact of change on AEGON their managers take some measures, which are describe below:-
Provide effective training:- When change is brought in an organization it is responsibility of mangers to provide effective training and development program so that they enhance skills and knowledge which are required to operate effectively as change occur. Training program can include online models, blended learning approach incorporating face to face training sessionor on the job coaching and mentoring. AEGON provide appropriate training and skills development session according to the requirement so that employees can easily adopt change and work effective and efficiently.
Measure the change process:- Through help of change management process a proper structure should be placed to measurer impact of change on business and ensure that thereshould be continuous reinforcement opportunities occur to create proficiencies. An organization must evaluate and analysis their change management plan to determine its effectiveness. AEGON use change management process to identify impact of change in their organisation and make strategies and plan accordingly to build opportunities for business in the change environment.
Time to time market analysis:-An organization must analysis their market time to time so that when change occur they can plan strategies accordingly which help in conducting business in proper way. By analysing the market company can plan strategies which ensure change that will carry business in the right direction strategically, financially and ethically. AEGON must do time to time market analysis which help respective company to analysis their market and accordingly they plan their goal and objective and strategies to fulfil it in effective and efficient manner.
Determine impact and affects :- Once the change occur in an organization management should determine impact of the change at various organizational level. Then they must review and analysis effect of it on each business unit and determine the ways how it can cascades through the structure of organisation. It is start from making blueprint of the information and plan whether training and support is needed. AEGON should determine and analysis the market after change occur and plan appropriate strategies and training program according to requirement.
Develop communication strategy:- when an organization is going through the change journey, management must highlight and communicate the change to the employees so that they get prepared. Company should determine effective ways of communication for group or individual which will bring them on board. The communication strategy of an organization must include a proper timeline for how change will be communicated to all, key messages and channel and media of communication plan used by organisation. AEGON must choose appropriate communication method and channel which help them to communicate their change journey to their employees, so that they get prepared and can adopt change easily.
P4. Explain different barriers for change and determine how they influence leadership decision-making in a given organisational context
Change is necessary aspects of all organization and its targets shifts from one state to another for the betterment of organization. But barriers always develop a gap in standard and current actual practices, which creating negative effect on the day to day production process of an organization.
Once a company know how to solve or avoid barriers, it will be easy for them to plan and implement changes in firm. There are various barriers of change management which influence decision-making of leadership in an organization and understanding of barriers helps business to create successful strategies and plan for identifying and implementing the change. Below is description of some major barriers of change which influence decision making of leader in AEGON:-
Lack of employee involvement:- It is the most common barrier of change management process. In an organization employees always have fear of change, unless they get involve in management process of change. It is also biggest mistake for leader of a firm that their employees are not involving in change management process. Efforts of leader can get successful when their employees get involve in the change management process as muchas possible. Employees involvement means listening to opinion, accounting for output and ensuring employees that change is good for the organisation as well as for them. Decision making of leader at AEGON get affected because there is lack of involvement of their employees like they has fear of change , they didn't involve in decision, they didn't give any ideas or suggestion, they only focus on those work which is assign to them.
Competitive Forces:-Competition, external threats, technological change, market condition and economic forces are some of the common barriers of change management process in an organization. All these forces influence the decision making of leader because when there is change technology, market condition and other competitive forces organization leader has to update and make new strategy and plan according to the current situation. Like in AEGON the leader makes their decision by analysing and evaluating competitive forces such as competition, external threats, technological change, condition of market and economic forces so that, it will help respective organisation in growth and earn more profit.
Integration:- Implementing and managing the change in an organization is considered as re-engineering an aircraft while it's in flight. Change management process is always a moving target. A leader of an organization should implement that system of business process which support change, as change occur in organization structure or process employee’sturnover will goes parallel. Leader of AEGON make such strategies and plan which support the change process and help in smooth functioning of the respective organization.
Unknown current state:-Change is always important but difficult for an organization which have lack the idea of their current situation or state. For some entities it is a common habit that introduce and implement change without conducting an analysis and understanding current situation or blue print of firm. To get over it leader of workplace must analysis and fully understand current blueprint of organisation before try to introduce any change. The leader of AEGON goes through blueprint or situation and understand it clearly before making any decision, it is because it became easier to plan and transition the future state or situation.
Organization Complexity:- There are some situation when organization begin to develop complex process, making of planning process and implementing change bit complex. The complexity include complex process, products and system all those which contribute to change barriers it is so because it is difficult for leaders and members of organisation to understand it. To overcome it leader of AEGON introduce and develop a keen and skilful approaches which help in tackle respective organization in fast growth as well as complexity. The respective company can break or avoid this barrier by employing diligent, quality and highly effective and change management approach.
There are other many barriers of change management process which affect the leaders decision making process in AEGON, but there are also ways through which respective company can avoid or overcome there barriers, which make easy to implement the change management process in AEGON.
P5. Apply different leadership approaches to dealing with change in a range of organisational contexts
Leadership is ability of an individual or group of people to influence and guide followers or other members of an organisation. It involves establishing a clear vision, sharing vision with others so that follow willingly, providing information, knowledge and methods to realise that vision (Fykeand Buzzanell, 2013). Moreover, coordinating and balancing conflicting interest of all members and stake holders. Further, leadership style is manner and approaches providing direction, implementing plans and motivating people. In organisation employees includes total pattern of explicit and implicit actions perform their best as leader that is beneficial for an individual as well as organisation. The different leadership approaches dealing with change in organisation of AEGON are as follows:
Trait approach of leadership looks for a series of physical, mental, or personality traits that effective leaders possess that neither non leaders nor ineffective leaders possess. In this theory a leadership is an early assumption that leaders are born due to belief, possess correct qualities and traits that are essential in a trait leaders this approach of leadership defines or identifies behaviour characteristics that are beneficial for an organisation. If AEGON follow this leadership approach then, a leader should have abilities to deal with challenging situation. In this approach success and failure lies within hand of respective leader who is handing business. Moreover, implicit in this approach is assumption that traits produce patterns of behaviour of employees in consistent situation.
A situational approach is a set of values and attitudes with which an individual or group has to deal in process of activity and with regard to this activity organisation plan and results are appreciated (NHS England,2016). In organisation context to AEGON, situation sometimes become complicated affairs and become difficult for a leader to deal with complex situation. Moreover, this approach influences constraint of a leader who must adapt his own style of leadership to handle different situation. Further, this approach is revised over period of time so that is used extensively in a respective organisation and development.
The functional approach on other hand, posits that it is not series of leadership characteristics that make a leader, but rather a leader is someone who acts like and communicate by leader. One of the important task of functional leadership is to provide appropriate guidance to all members. Moreover, it also assumes that leadership is defined by behaviour of a leader and its corresponding effect on team or group of members. In organisation context of AEGON, this approach of leadership helps a leader to examine different sets of function activities that are necessary for an organisation.
Moreover, this type of leadership works for creation or formulation of an organisation purpose and achieving its objectives. In essence, a function leader should have a clear vision and creating task that are necessary to help an organisation in accomplish that vision. Thus, this leadership provides effective role so that an individual provides to an individual and group to meet needs of respective organisation.
Rational approach of leadership focuses not on traits, characteristics, or function of a leader, but instead focus on types of relationship that develop between leaders and followers (MacKian and Simons, 2013). In an organisation context to AEGON, a rational leader has capacity to think rationally due to consequences, discover causes and think logically to have a rationality in their decision making process. In this type of leadership, the leaders are not emotionally week they take decision which is beneficial for an individual as well as organisation.
The above discussed are different approaches of leadership that help AEGON to know which leadership in suitable for their organisation. Herein, they should be appropriated in choosing best leadership approach that is beneficial for achieving their goals and objectives of organisation. Moreover, leaders should able to handle with changes that occur frequently in workplace and able to meet right decisions according to situation.
From the above discussion it has been concluded that, in a business changes are continuous in nature. Both internal and external factors influences activities of an organisation. AEGON has continuously influenced by changes that have impact on organisation strategy and operations activities of an organisation. They have also evaluated different internal and external drivers that have effected leadership, team members and individual behaviours of employees in a workplace. They have used appropriate theories and models to overcome with changes that result in ineffective for their organisation. Moreover, measures are adopted certain measure to minimise negative impacts of organisation change behaviour. Further, by implementing different approaches of leadership that help AEGON to deal with various organisational changes that result effective for their organisation.
Kotter, J.P., 2012. Leading change. Harvard business press.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
Yoder-Wise, P.S., 2014. Leading and managing in nursing-E-Book. Elsevier Health Sciences.
Hrebiniak, L.G., 2013. Making strategy work: Leading effective execution and change. FT Press.
Wagner, W.E., 2016. Leadership for a better world: Understanding the social change model of leadership development. John Wiley & Sons.
Fyke, J.P. and Buzzanell, P.M., 2013. The ethics of conscious capitalism: Wicked problems in leading change and changing leaders. Human Relations. 66(12). pp.1619-1643.
NHS England, 2016. Leading change, adding value. British Journal of Healthcare Assistants. 10(6). pp.302-303.
Organisation behaviour is considered as one of key aspect for every business firm so that goals and objectives can be accomplished. It has been noticed that by having an analysis of diverse behavioural values related to human resources the issues can be resolved in desired manner. In...ReadMore
This report is focused on entrepreneurship and understand the barrier for business start-up. In this report nature and culture economics over entrepreneurship and characteristics of business person associated with impact of personal situation factors, including education and...ReadMore
The digitalisation is very important in order to fostering the growth of enterprise. Business function are needed to be performed in systematically manner so process of digitalisation is seems to be important. With the help of this, timely information can be provided and organisation...ReadMore