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The rapid growth in commercialization and inventions in technology has increased the possibility for businesses to expand and grow prospectively. Companies have leveraged innovative ideas and technological advancements in favour of their company to meet the desired objectives. Organisations have aligned their operations with specific change approaches so that resource efforts can be properly used within the company. The present business world has evolved thoroughly that has necessitated the incorporation of definite change and operational approach transitions (Rosenbaum, More and Steane, 2018). The most important aspect of an organisational change is to determine the type of change the company require. On the basis of that, a company directs its approaches to fulfil the necessary criteria. The importance of change has widely been recognized among corporate professionals. The concept of change provides the opportunity for the companies to expand their growth and increase their revenue collection. The present report will focus on the aspects of change and how that shapes organisational performance.
LO1: Compare ways in which change impacts an organization’s strategy and operations
The concept of Change in Business Context
In order to put it another way, a company’s transformation is the process by which it moves from its current state to its desired future one. Changes range from the incremental, such as streamlining payment operations, to the radical, such as completely rethinking a firm’s product offerings in the phase of growing competitors (Shaw, 2017). Typically, it refers to an occurrence that has a significant impact on the company’s day-to-day activities. In the corporate world, there are three forms of change: developmental, transitional, and transformational. If a company wants to enhance the way things are done, resolve an issue or seize an advantage, they need to implement a change in the company. It’s almost impossible to enhance an organization without affecting the way its people conduct their jobs on a daily basis.
Changing something just for the purpose of changing something is not an impactful approach. A big external pushing factor, such as significant budget reductions, the need to handle huge new market segments or significant advances in productivity/services, is typically the catalyst for organisational transformation (Baddah, 2017). In order to go from a highly explosive, entrepreneurial organisation to more steady and structured growth, companies often have to undergo a major organisational shift.
An Introduction That Introduces the Chosen Organizations and A Brief Rationale of The Choices
This report will attempt to analyse the change approach in two distinct organisations which are operating in the retail industry.
Tesco: Tesco is one of the largest retail supermarkets in the UK. The brand has developed a significant reputation in the market that has led to its incredible performance even after the pandemic (Bove and Benoit, 2020). There are more than 2,300 Tesco supermarkets and convenience outlets and 326,000 workers employed by Tesco plc. Approximately 1,900 Tesco shops are located in the United Kingdom, where Tesco stands as the UK’s biggest recruiter and the biggest food retailer. Tesco operates its business in the Czech Republic, Hungary, Poland, the Republic of Ireland, Slovakia, and Turkey in the European continent. The firm’s Tesco.com website is the world’s biggest online retailer.
Asda: Asda was founded in Yorkshire in the 1960s and has since become one of the country’s biggest retailers. Shoppers may find the company outlet in a wide range of locations throughout the UK (Naeem, 2021). Aside from Walmart, Asda’s parent company, it’s the only grocery store in the United States that focuses on providing consumers with everyday low prices (EDLP). Everything revolves around the EDLP approach.
These two companies have been selected to analyse the contrast or similarities of their organisational change approaches with a critical justification.
Assessment Of the Different Drivers for Change That Have Affected Each of The Selected Organizations Over Recent Years
The decade’s finale has had an unanticipated consequence. The year 2020 will be remembered for a worldwide pandemic, a declining price economic graph, and a large surge of retail outlet shutdown and sector collapses that will shape much of the retailing industry (Baddah, 2017). The way people buy now is vastly different from how they used to shop a decade ago, the reasons are varied such as new technology, customer behaviour, and aspirations affecting the retail business. For instance, the rise of e-commerce has provided both possibilities and risks to traditional merchants. People have moved away from exploring and purchasing on the high street and moved toward internet outlets. As a consequence, the way people see brands has changed. The way people purchase, both in-store and digitally, has been fundamentally altered as a result of recent technological developments.
The emergence of direct-to-consumer businesses and enterprises created almost solely on social media has occurred during the last decade. In an effort to bring customers back into brick-and-mortar shops, offline retailers started experimenting with different techniques. Therefore, the entire aspect of retailing and shopping has diversely been shaped in both positive and negative contexts (Mishra, Shukla and Sujatha, 2021). For both Asda and Tesco, change has become an essential factor as an aspiration to incorporate the evolving trends into a significant consideration in strategizing operational tactics. There are different drivers which influence the change approach in Tesco and ASDA. A PEST analysis will illustrate the kinds of factors that often amply a change within the organisation.
PEST Analysis
Political
Political stability often inspires companies like Tesco and ASDA to incorporate change in their operations or strategies. Competition and overpriced goods are discouraged by government legislation such as marketing power regulations. As Tesco is the biggest food store in the United Kingdom, these regulations have an influence on them because they can no longer misuse their market power. The same goes for ASDA, for example, in 2019, the company had witnessed a strong fall 2019, mentioning political turmoil as a factor (Waddell etal., 2019). During this phase, like-for-like sales at the UK grocery chain fell 0.5 per cent, compared with a 0.5 per cent gain in sales in the previous quarter. However, the company said that customers’ anxieties about Brexit had a negative impact on sales during this time period. Although it had held the online grocery sales at a steady position.
Economical
The retail sector generated £97.0 billion in financial output in 2020, accounting for 5.2 per cent of the UK’s gross domestic product. During the coronavirus epidemic, the retail sector’s economic production declined by 2.5 per cent in 2020 compared to 2019 (Amado and Ambrose, 2018). But by end of 2020, the industry’s economic production had restored to pre-pandemic rates. In the first quarter of 2021, output declined 2.8 per cent from the first quarter of 2019. Different sorts of retail establishments have been affected by the epidemic in a variety of ways (Amado and Ambrose, 2018). These statistics indicate that the retail sector has a major impact on the economy and is also dependent on the economic stabile as the power of customer spending is the core for a steady industry performance which was heavily ruptured by the pandemic in 2020-2021.
Social
Social changes also influence organisations and the way they incorporate their strategic measures. For instance, the inclination of the customers to move from conventional shops to online stores is a great development that has changed the perspectives of customers and their buying behaviour. Tesco and ASDA both had to change their orientation and opted for the investment and attention in the online platforms. Especially after the pandemic, maintaining the governmental measures of social distancing and safety, both had to strive to cater for the customers through the online stores (Jones and Comfort, 2020). Tesco has also changed its store layout strategically to offer customer convenience and safety, simultaneously. Along with that people are now becoming health conscious and demanding organic and low-fat foods which is not completely addressed by the company.
Technological
Technology has changed the perspectives of people and how they prefer to shop. Customers have changed the way they prefer in-store shopping as well (Jones and Comfort, 2020). They want technological implementations and better technical adaptations to make their shopping experience better which has changed the way retailers used to map out their strategic priorities.
Comparison on how each organization has responded to the drivers for change, considering similarities and differences in each organization’s approach to dealing with change
Change strategy in Asda: An Asda strategy of transformation has been unveiled by the retailer in reaction to the shifting retail landscape. It has been a major change in consumer behaviour and attitude during the epidemic, with the supermarket continually rising ahead of the competition and tripling its shipping rates to proportions that were supposed to take 9 years. By year’s end, Asda expects to be able to fulfil one million online orders every week, a 90 per cent increase in output since March (Jones and Comfort, 2020). To keep up with the rising number of consumers who are shopping online and will remain to do so, the supermarket plans to create 4,500 new jobs at its store-based eCommerce activities throughout the nation.
Deputy store manager and section leader positions have been planned to be replaced by two new positions Operations Manager and Online Trading Manager, to represent the considerable number of orders currently collected from shops, as recommended in the reorganization of several store-level management responsibilities. Around 1,100 employees are affected by these suggestions, which would result in an overall rise in the number of store-level managers in the company (Naeem, 2021). It is anticipated that a single multi-skilled back-office employee will fulfil activities in the cash office, management, human resources, and training, having an influence on around 3,000 colleagues. With a decrease in cash management, the suggestions incorporate training employees to do several back-office duties utilising new technology and methods.
Changes In Tesco: In an effort to make everything as “safe and easy” as feasible, Tesco has revealed a few modifications in its shop. The new guidelines have been posted on the store’s website, and the company says the modifications were made in response to consumer complaints (Deák, 2020). They have responded to the customer input and made a few modifications to enhance the customer experience. Tesco shared their initiative in a statement posted on social media.
According to Tesco, these are the modifications they’ve made:
A greater number of check-outs will be available, making the overall customer journey simpler.
Priority entrance for the NHS, emergency responders, and caregivers.
On Wednesday mornings from 9-10 a.m. and on Sundays during shopping hour there is still priority shopping accessible for those who are most in need.
New signs and movement restrictions are also listed on the company’s website, as well as other social distancing tactics.
Though the changes have been implemented by both the companies on the situational level yet their implications might be fruitful for the companies in the upcoming years as well (Brown and Harvey, 2021). One similarity that has pushed both the companies to realign their operations and the tactics for customer engagement is the impact of a pandemic. Both the company had to start the respective incorporation in a response to the pandemic situation and changed customer preferences. And the dissimilarity of both the approaches is the difference in the change approach (Rothwell etal., 2021). On one side, Tesco has focused on its store realignment and on the contrary that Asda has tried to uplift its operational processes to increase its capacity and accordingly enhance its sales volume.
Assessment of The Different Drivers for Change in Each of The Given Examples and The Types of Organisational Change They Have Affected
Tesco- Tesco has enacted its strategy to increase customer experience in response to the pandemic situational demand which has been a global need or driver for this change. Tesco had to prioritize its customers’ safety and wellbeing while being considerate about their preferences. They had to adhere to the national measures to eliminate the threat of infection spreading and comply with the standards provided by the government. Therefore, this approach to change can be attributed to the political drivers to an extent (Rothwell etal., 2021). Tesco has also incorporated the rearrangement to enhance its operational excellence and in consideration of its customers’ demand for a standardized store experience. It is a well-planned strategic change approach that not only ensured customer safety but also represented Tesco as a compassionate brand to its customer for its approach to providing priority entry to the NHS and emergency workers. This has heightened the market position of the company and uplifted its brand value to an excellent extent which will further increase revenue streaming by extending the customer base.
Asda: Asda on the other hand incorporated the change in response to the pandemic like Tesco yet their change approaches are focused on the increase of capacity by leveraging mostly the human resources. The pandemic has necessitated the company to develop the change to manage its operational efficacy and meet customer demands. The company has implied its changed perspective through the people it employs. Human skills have been the focus of Asda to incorporate change in the organisation (Creed etal., 2019). Therefore, skill development has been given enough importance in the company. Training has been emphasized because the employees are expected to utilize their expertise in combination with technological knowledge. Asda has realised that in order to deliver excellent service to its customers especially during the pandemic, managing efficiencies and resources is necessary. They have also increased their capability to deliver products per week which will allow them to meet the demand with a specific number of supplies (Amado and Ambrose, 2018).
By analysing the two different approaches taken by two separate retail entities, one aspect came to the surface that although their beginning of incorporating these changes was driven by the situational crisis of the pandemic yet both the companies have a separate focus on their change prospect.Asda and Tesco both have incorporated remedial changes to deal with the situational needs in the time of pandemic.
Conclusion
The attempt of this report is to compare the change attributes of Tesco and Asda. Both the companies have significantly established a specific market reputation and dominance over the years. Multiple transformations might have been taken into consideration throughout their operational trajectory by these two companies. But the current development and competitive intensification in the retail industry has necessitated a complete overhaul of the existing processes to compete in the market and stay relevant with the current development in the market. The importance of having a change mechanism in the company has been realised by these companies which enabled them to take the right measures to increase their strategic alignment with the present situational demand.
Comparing the change approach of these two companies has brought out some similarities and differences which is crucial to consider to understand the change dimension of a company. Additionally, key drivers of change have also been identified in the context of both the companies which indicated the external influencing factors of change in a simplistic manner. In a nutshell, the entire report has attempted to produce a coherent set of ideas associated with leading change in a company and how external factors affect change within a company.
References
Rosenbaum, D., More, E. and Steane, P., 2018. Planned organisational change management: Forward to the past? An exploratory literature review. Journal of Organizational Change Management.
Shaw, D., 2017. Managing people and learning in organisational change projects. Journal of Organizational Change Management.
Baddah, A., 2017. The Influencing Factors of Organisational Change Management: A Literature Review. Ahi Evran Üniversitesi ?ktisadi ve ?dari Bilimler Fakültesi Dergisi, 1(1), pp.42-58.
Mishra, P., Shukla, B. and Sujatha, R., 2021. Human Resource Management for Organisational Change: Theoretical Formulations.
Waddell, D., Creed, A., Cummings, T.G. and Worley, C.G., 2019. Organisational change: Development and transformation. Cengage AU.
Amado, G. and Ambrose, A. eds., 2018. The transitional approach to change. Routledge.
Creed, A., Waddell, D., Cummings, T. and Worley, C., 2019. Organisational Change: Development and Transformation.
Rothwell, W.J., Imroz, S.M. and Bakhshandeh, B. eds., 2021. Organization Development Interventions: Executing Effective Organizational Change. CRC Press.
Brown, D.R. and Harvey, D., 2021. An experiential approach to organization development. Pearson Education.
Bove, L.L. and Benoit, S., 2020. Restrict, clean and protect: signaling consumer safety during the pandemic and beyond. Journal of Service Management.
Deák, Z., 2020. SEO Based Analysis of Online Grocery Stores During COVID Lockdown. Management, Enterprise and Benchmarking in the 21st Century, pp.29-35.
Jones, P. and Comfort, D., 2020. A commentary on the United Kingdom’s leading food retailers’ resilience plans in the face of climate change. Journal of Public Affairs, 20(2), p.e2047.
Naeem, M., 2021. Do social media platforms develop consumer panic buying during the fear of Covid-19 pandemic. Journal of Retailing and Consumer Services, 58, p.102226.
LO2: Evaluate the influences that drivers of change have on organizational behavior
1. Introduction
In the present world, change has become very significant as the world is transforming at every pace with the rapid up-gradation of technology and digitalization. Furthermore, another factor is globalization is also contributing to the rapid change simultaneously. Due to these factors, it has become so crucial for an organisation to adopt change (BUC??A and Rotariu, 2017). As, due to the vast amount of opportunity caused by globalization and technological advancement, businesses are looking for opportunities. As a consequence, competition has become neck to neck. Therefore, organisations are looking for opportunities to grab in order to gain a competitive advantage. In this regard, adapting change management is the vital key to unlocking the door of a wide range of opportunities for organisations.
2. Understanding the Impact of change upon Organisational Behavior
Change is an inevitable part of an organisation that determine the sustainability of an organisation within a market. Change can lead Tesco to stay up-to-date on the industry trends which enable an organisation to make a successful new product (Sharma and Andotra, 2020). Change management also fosters business innovation and benefit in enhancing business efficiency.
A change may also lead the people of Tesco adapt to new aspects which often lead to an increasing level of stress and anxiety among the employees. Along with this employees are often seen to go through a phase of shock, fear and failure. Furthermore, a change within Tesco may also impact its team dynamics. It is all dependent upon the ways change is handled. These processes can either strengthen a team or weaken a team (Sharma and Andotra, 2020). Different people may react differently in a changing scenario within the organization. In order to mitigate such issues, Tesco’s leaders can play a vital role and initiate a change management plan to deal with the changing situation. Tesco employees are likely to react to change in a variety of ways and for a variety of reasons while working as a team. This may have a significant effect on a team’s dynamic and efficiency. Many people’s attitudes about their job and the organisation might deteriorate as a result of changes causing irritation and uncertainty for the team members. As a result, changes in senior management may have a beneficial or negative impact on the company’s business objectives. Personnel management, administrative support, and development and expansion of a corporation can all be impacted by shifts in senior leadership.
4. Identification of the Key Drivers of change
4.1 PEST Analysis of Tesco
Political
Economical
Britain’s largest grocery retailer operates in multiple countries around the world which expose the organisation to multiple political circumstances. Political factors include tax rates, acts of legislation, stability of a country. Due to the financial instability all very the globe, governments are instructing to create more jobs for the regional population as Tesco deliver a wide range of employment opportunities which as a result impact the growth of product demand and contribute to the diversification of the workforce (Adamyk, 2019).
Economic factors are one of the direct and primary aspects which have a direct impact upon Organisational profitability. Its impact upon the product demand, profit, product price, cost etc. Any type of policy change leads the organisation to face a major change in the Organisational delivery model. Presently labour cost is a significant factor that can impact Tesco. For instance, the annual wage bill of Tesco is 4.5 billion. In the year, 2018, the wage rate has increased by 4.4% for 25 years which may cost Tesco to face additional millions of pounds in the UK (Adamyk, 2019).
Social
Technological
The shopping trend of consumers is altering day by day. Now a day’s people have a busy schedule and they expect fast delivery of products on the same day of the order along with a flexible return policy. In addition to this consumers also prefer one-stop shopping. Tesco should concentrate on these matters to mitigate such issues. Furthermore, the demand for products is related to cultural beliefs and attitudes which needs extra attention.
Another issue in society is obesity and due to this cause customers are becoming more concerned about their health. It is crucial to adapt to the change and mitigate this issue with the introduction of organic foods.
Tesco was hugely facing the issue of poor consumer service but thanks to technology, which benefits Tesco to mitigate the challenges. Technological advancement and embracement have opened a new horizon for the organisation (Ji, Li and Xia, 2019). Tesco has implemented RFID technology to enhance the in-store experience of the consumers. It also helps in automatic stock counting and removes it after-sales. Tesco has also developed a mobile payment system called PayQwid which will enable consumers to pay as they want.
4.2 SWOT Analysis
Strengths
Weaknesses
· The major strength of the organisation is it is the biggest grocery retailer in the UK. According to the annual report of 2018, the annual profit of the firm has risen by 28%.
· The organisation has the leading market share. It has a 27% market share and has also become one of the most preferred retail organisations in Ireland (bin Mohd Shah, 2018).
· Tesco has failed to operate in America and China and in 2017, the firm have exit from both of the country.
· Their lost cost strategy is benefitting the organisation to remain the market leader in the UK but it might impact the revenue of the company.
· High debts and credit card liability are impacting the financial profit of the organisation.
Opportunities
Threats
· Tesco can enhance their opportunity by upgrading their online shopping and adding a home delivery service will give a perk to the organisation.
· The organisation have multiple stores in different developing countries and expanding the organisation in different emerging markets like, Turkey, South Korea will deliver an ample amount of opportunity to the organisation (Fatricia, 2017).
· Tesco can also initiate a cashless store to prevent the consumers from health risks caused by touching coins and notes.
· In places where Tec is underperforming, the organisation can initiate a joint venture with the local firms to gain profound market knowledge.
· Other supermarkets, like Walmart, ASDA, and Aldiis giving huge competition to the organisation and threatening Tesco’s market position.
· Christmas ad controversy in 2017 has led the organisation to face multiple issues including social media backlash and product boycott as it induced disrespect towards the Christian faith (Fatricia, 2017).
5. Application of Theoretical Approach in order to Plan for Change
The system theory approach is related to the concept that every firm is dependent upon the environment for several resources. Consumers purchase the product, service and suppliers deliver essential materials to the employees who serve labour, a shareholder who invest and the government who regulate (Matozoet al., 2021). According to the viewpoint of Cutlip, Center and broom in order to manage and adapt to change public relations play a crucial role.
In terms of continuous improvement, Tesco can apply the Kaizen model within the organisation. The meaning of Kaizen is an improvement which was originated in Japan. In the implication process, Kaizen has two elements: flow kaizen and process kaizen. The first deals with the procedure of information, product and service flow and the second emphasize making small changes that contribute to improving efficiency. The main principle of a theory which will help Tesco to embrace change is “Fail fast, fail forward”.
6. Application of Burke-Litwen model to Enhance Efficiency of Change Management
Burke Litwin Model of Organisational change defines and build a relationship of cause and effect. According to the model, there are 12 Organisational elements that control the changing procedure of an organisation. These elements are many external environment, mission and strategy, leadership, structure, Organisational culture, management practice, systems, tasks and skills, working environment, individual’s needs and values, motivational level and organisation and as well as individual performance. This model will benefit the organisation to cover all the causes of change and benefit Tesco in formulating a strategic decision. Furthermore, this model will also benefit the firm in understanding the basic cause and impact of relationships which facilitate in acquiring a complete understanding of the Organisational change.
7. Conclusion
In the present world, embracing change within an organisation is very significant as it is associated with Organisational sustainability. There are certain challenges an organisation face during the procedure of change adaption. In this regard, understanding the main causes and solving the challenges is the best option for the organisations as well for Tesco.
References
Adamyk, K., 2019. PESTLE Analysis on Tesco PLC.
bin Mohd Shah, M.A.S., 2018. The viability of halal food industry for Brunei economic diversification: SWOT analysis. Journal of Social Sciences, 3(3), pp.1220-1233.
BUC??A, G. and Rotariu, I., 2017. THE IMPORTANCE OF MANAGEMENT FUNCTIONS IN THE TRANSFORMATION PROCESS OF AN ORGANIZATION. Revista Economic?, 69(4).
Fatricia, R.S., 2017. STRATEGIC ANALYSIS OF TESCO SUPERMARKET. Jurnal Manajemen Terapan dan Keuangan, 6(2), pp.69-86.
Ji, P., Li, G. and Xia, H., 2019, December. Research on Entrepreneurship in the Background of Sharing Economy. In 2019 3rd International Conference on Education, Economics and Management Research (ICEEMR 2019)(pp. 626-629). Atlantis Press.
Matozo, K., Baljinder, P., Thamma, R. and Kirby, E.D.,2021. Kaizen Usage in Automation.
Sharma, J. and Andotra, N., 2020. Exploring the Mediation Impact of Innovation and Adaptation to Change in Learning Organisation-Performance Outcomes. OPUS: HR Journal, 11(2), p.45.
LO 3: Determine How Barriers to Change Influence Leadership Decision-Making
1. Introduction
Once Tesco has determined what type of development they can anticipate to see as a result of the system, it is vital that they determine how they will deal with any potential resistance to the change. When it comes to assessing the opposing elements, a Force-Field Analysis of such components is required. Listed below is a high-level summary of the key impetuses and countervailing factors that must be addressed.
2. Analysing Barriers to Change at Tesco in Relation to Change Needs
In the relation to the organisational objectives for change that lies in bringing modification in operations in Tesco stores to respond to the COVID-19 situation, based on the opinion of Sultan (2020), the company can focus on two major needs to assess its driving and resisting forces, as well as identify barriers towards change.
Creation of Efficacy, Swiftness and Innovation
In order to increase efficiency As well as providing an online purchasing option, Tesco has put all of its shops open 24 hours a day, seven days a week.
Competencies at the Core
For organisations to generate healthy profits, they must have something that consumer’s value uniquely. Core competencies are defined as the ability to provide something that customer’s value distinctively. Tesco, for example, offers its customers the option of obtaining a membership card in order to retain them.
2.1 Force Field Analysis
Kurt Lewin created this model in 1951, and it has been in use ever since (Muldoon, 2020). It suggests that there are two types of forces at work in an organisation, such as the “driving force” and the “resisting force”. The “driving force” is responsible for keeping the systems of the organisation in an equilibrium state, while the “resisting force” is responsible for keeping the systems out of equilibrium (Shrivastava, Shrivastava and Ramasamy, 2017). In the unfreeze stage of Lewin’s change model, this framework has been created to assist leaders in identifying the driving and restraining factors that are at play in the change process. As a contribution to the theory of change management, Lewin’s Force Field Model is noteworthy (Sultan, 2020). Change management is that component of strategic management by leaders in which an organisation attempts to guarantee that it adjusts to the environment in which it works. The following analysis of driving and resisting forces in the change process that Tesco aims to implicate has been aligned with its objective of responding to the changing situation of retail in times of COVID-19 pandemic.
Driving Forces FOR Change
Need for Change at Tesco
Resisting Forces AGAINST Change
Economic Forces
· Creation of Efficacy, Swiftness and Innovation
· Competencies at the Core
Stakeholders
Socio-cultural Forces
People
Technological Forces
Material
Legal, Political and Ecological
Money
Business Growth and Profitability
Competition
2.2 Driving and Resisting Forces to Determine How They Influence Leadership Decision Making
2.2.1 Driving Forces to Change
Economic Forces
When it comes to a company’s future, profitability is the most significant thing to take into account. Tesco is generating jobs by opening additional shops since the high unemployment rate raises the possibility of decreased demand for products.
Socio-cultural Forces
Consumers’ expectations for mass purchasing have prompted Tesco to provide non-food products such as clothing, electronics, mobile phones, and other accessories, allowing them to buy more conveniently for themselves.
Technological Forces
All firms are being forced to shift because of new technology advancements. If customers are happy, they will spread the word about the business. Tesco, for example, uses a “self check out system” and “electronic shelf labelling” to accomplish the same thing (Sultan, A2020).
Legal, Political and Ecological
Government regulations, such as licensing, monopolistic legislation, and pricing policy, have an impact on Tesco’s operations. For the most part, the success of Tesco is dictated by domestic politics (Brannen, Mughan and Moore, 2020). Traditional businesses are pushed to reduce costs, but major stores typically give employment chances and the government encourages merchants to generate job opportunities, therefore building new stores is also due to the political influence.
Business Growth and Profitability
When a company grows, it opens up new possibilities for product development and company expansion. Tesco’s primary goal is to produce money, which drives the company’s growth and diversification efforts.
Competition
Tesco competes with a number of other retailers, including ASDA and Sainsbury’s (Sultan, 2020). In order to thrive in this fiercely competitive environment, it is critical to develop innovative ideas and technologies.
2.2.2 Resisting Forces against Change
Stakeholders
Stakeholders play a critical role in the process of transformation. For instance, a supplier is a member of the company’s external stakeholders. Changing Tesco’s pricing structure is a huge concern for the company’s suppliers (Brannen, Mughan and Moore, 2020).
People
People are the most important aspect of any change, and they do not just appear out of pure nothingness. Individuals who are unable or unwilling to adapt to new circumstances, a failure to answer and embrace the change process will result, if they do not respond.
Material
In addition to the previously mentioned elements, audit reports, corporate data and market needs are all very relevant in the case of Tesco, the failure of the move might be attributed to the lack of the same Tesco’s success in the UK market would not have been possible if they hadn’t done a thorough market study (Sultan, 2020).
Money
As an additional resource, money has the potential to provide all the other resources necessary for a successful transition. Tesco, for example, plans to establish additional “Fresh and Easy” shops in the United States with the support of its current cash resources (Sultan, 2020).
2.3 Different Barriers for Change
2.3.1 Schein’s Model of Organisational Culture
Fig 1: Schein’s Model of Organisational Culture
(Source: Cacciattolo, 2014)
Among the three levels (“surface manifestation or artefacts”, “values” and “basic assumptions”) of organisational culture model by Schein, surface manifestation is discussed here. Culture is always forming and changing, and this practice tends to affect all elements of human functioning at some point (Cacciattolo, 2014). This is also taught in relation to the key challenges of external adaptation and internal incorporation that arise during times of transition. Tesco, with its slogans such as “Every Little Helps”, is attempting to spread a notion; a habit and behaviour that will help each individual deal with the challenges that they are experiencing. Every employee serves as a type of brand ambassador for the firm, and it only takes one disgruntled employee to tarnish the company’s reputation, causing numerous people to believe that Tesco is a horrible company. All this is due to negative word of mouth.
As per the second level, Tesco has established a organisational value to ensure that this does not occur with another surface expression (Brannen, Mughan and Moore, 2020). Tesco’s primary goal, which may be expressed in terms of organisational value, is to ensure that consumers remain loyal to the Tesco brand, as is the case with all significant retailers in general. Here, the major barrier is rapid process of implicating such major change through inclusion of all key stakeholders in the process of complete customer satisfaction. Another major barrier, in terms of basic assumptions, in the needed change is that organisation is misalignment in the increasing demand of customers for organic food and the core culture of the company of “understanding people to make things better”.
3. Conclusion
The analysis using force field model by Lewin has identified six driving forces and four resisting forces for change in Tesco. Alongside, the barriers of change have been explained through the Schein’s model of organisational culture.
References
Brannen, M.Y., Mughan, T. and Moore, F., 2020. THE CREATIVE USE OF INSIDER ETHNOGRAPHY AS A MEANS FOR ORGANIZATIONAL SELF INVESTIGATION. The Routledge Companion to Anthropology and Business, p.27.
Cacciattolo, K., 2014. Understanding organisational cultures. European scientific journal.
Muldoon, J., 2020. Kurt Lewin: Organizational Change. The Palgrave Handbook of Management History, pp.615-632.
Shrivastava, S.R., Shrivastava, P.S. and Ramasamy, J., 2017. Force field analysis: An effective tool in qualitative research. Journal of Current Research in Scientific Medicine, 3(2), p.139.
Sultan, A., 2020. Effective leadership and its impact on organisational performance: retail industry (Tesco) (Doctoral dissertation, University of the West of Scotland).
LO4: Apply a range of leadership approaches to a change initiative
1. Introduction
Leaders play a very significant in terms of change management procedures within an organisation. A leader is responsible for setting a clear vision and goal and making the employee aware of this. In this regard, the leaders play a very significant role as they motivate the employees, guide them throughout the work in order to accomplish the objectives. In the present context, change is very crucial as the technology and the embracement of digitalization is evolving rapidly. Leaders here play the most crucial role as in the process of embracing new aspects employers are required to go through certain changes where leaders deliver motivation and encourage commitment among the workforce. Hence, efficient leadership contribute towards successful change inside the organisation.
2. Identification of Appropriate Leadership Style for Determining the Activities
As mentioned leadership are the key driver of change inside an organisation. Leadership style is associated with the behaviours and characteristics of a leader which determine their way of responding, directing. Guiding, motivating and managing the workforce. Great leaders benefit an organisation to make fortune by inspiring and collaborating with the employees to indulge in the mission through effective performance and innovative ideas and application.
Effective change in an organisation means multiple aspects like technology, service, strategy and structure needs to be altered as per the external changes and requirements. In the procedure of change, a leader has multiple roles to play make a crucial decision, become a role model among the employees, communicate with the employees, engage with them to understand them and become a representative (Nandasinghe, 2020). A leadership style in the change management procedure, determine the ways how all the activities will operate. The right leadership style makes the change management procedure successful where a wrong leadership approach can demotivate the employee and can impact negatively the change management procedure.
Generally, there are five leadership styles, such include, Authoritarian leadership, delegation leadership, participative leadership, transformational leadership and transactional leadership. Situational leadership style was studied and formulated by Kenneth Blanchard and Paul Hersey. This leadership approach support that as per the requirements, a leader or a manager can change their leadership style in order to fit the development level of the employees. In situational leadership, the decision of changing the leadership style is entirely upon the leader, it is not concerned whether the follower will adopt it or not. In this leadership, the change of leadership style is a continuous process for meeting the need and requirements of the organisation depending on the circumstances (Al-Khamaisehet al., 2020).
Telling and Directing
In this leadership, the leader of the organisation take a decision and inform other employees regarding the decision. This is an extremely top-down approach where employees do what they are told to do.
Selling and Coaching
In the selling and coaching style, leaders are very engrossed in their daily activities. In this case, also the decision is made by the leader but employee inputs are taken before the implementation of the decision.
Participating and Supporting
This leadership style delivers many responsibilities to the leaders. Leaders are responsible for giving direction but the decision making is for the employees (Alajmi and Alsawalhah, 2021). Leaders deliver feedback and motivation to the employees.
Delegating to Employees
In this style, leaders are less involved with the employees. The employees can choose their tasks and direction to accomplish the task.
Fig 1: Situational Leadership
(Source: Alajmi and Alsawalhah, 2021)
According to Sanjayaet al. (2022), employee’s development level decides the right leadership style for a leader. For initiating change within Tesco the Delegative and Supporting leadership style will be most efficient as here a leader can identify the challenges faced by employees and guide them while working. In the delegative leadership, Tesco leaders will be able to understand the core of the employees and leave them to decide their way which will improve Organisational productivity (Maghsoodlooet al., 2018). Along with this, Tesco leaders will also be able to prevent employee burnout and enhance the level of employee satisfaction within the organisation. When employees will be satisfied, they will be more engaged in their work and their productivity will be improved. As per the view of Halim (2021), Tesco will be able to enjoy more innovation and foster growth inside the firm.
3. Understanding aspects of Change Initiation
Leaders and managers play the most important role in terms of initiating change. Most of the organisations support the fact, it is the leader whose effort enable successful change inside an organisation. In the implication of change management procedure, a leader can apply multiple strategies in order to make the change management approach more efficient. The leader can make a clear and apparent vision that helps the employees to easily understand and inspire them. When a vision is shared, it will outline the changes required inside the organisation and what will stay as it was (Ali and Anwar, 2021).Instead of reading and hearing the vision in order to make the employees understand the vision, the leaders can communicate the vision through multiple mediums, multiple times which will determine a better understanding and will help the employees to understand the fundamental cause of the change.
The changing procedure of an organisation is a journey that necessitates required strategy before as well as after the implementation. In this regard, leaders can ask questions to the employees and conduct surveys to understand the willingness of the employees. Along with this, during the procedure, leaders should recognize the milestones and actions of employees to support the change. It is very crucial for a leader to support their employees as the main craft will be built by them. Support increase motivation among employees (Cameron and Green, 2019). During the change procedure, employees face multiple feelings, like anxiety, fear, fatigue, anger etc. A leader can develop multiple learning opportunities for the employees to enhance learning opportunities in order to teach them how to handle workplace changes. For instance, an experiential training session will encourage individuals to check their behaviours and skills which will allow them to understand more what needs to be changed. It is also important for leaders to stay sympathetic to the employees’ emotions during the change management procedure.
4. Evaluating Change theories and Models
In the change management process, Kotter’s 8 step model has gained massive popularity. John Kotter in the year 1996 has introduced Kotter’s 8 step model in his “Leading change” book (Laig and Abocejo, 2021). According to the model, there are eight steps in the changing procedure, which include,
Increase Urgency
In this process, a sense of urgency should be created among the employees as well as among the managers. Everyone inside the team should understand a need for change which is crucial for Organisational growth. With adequate support, it will become difficult to achieve the momentum of change and achieve a long-lasting alteration. The main purpose behind this step is to prepare employees for the coming transformation.
Build a Guiding Team
In this step, employees are brought together in a team with adequate skills, qualifications and connections to make the change effort realistic. In this regard, a leader should maintain a shared understanding, common comprehension of the mission and should have a clear idea of the roles and responsibilities.
Develop the Vision
The main object of this step is to develop a sensible vision and deliver guidance and efficient strategy to help the team to achieve the goal.
Communicate for Buy-in
This step primarily focuses on effective communication of the strategies and vision in an efficient manner which will encourage the organisation to support change initiatives.
Empower action
In this regard, leaders should check the barriers to understanding people who are resistant to change. Here, they can implement proactive action to reduce the obstructions.
Develop short term wins
To keep momentum during the journey and celebrate small victories encourage the change procedure and improve Organisational performance.
Don’t Let Up
In this step, leaders should ensure that the team works are persistent in regard to achieving the vision with consistent measurement of the progress.
Make Change Stick
To make the change stick, leaders need to ensure that the infrastructure, values, processes and norms are well aligned.
Fig 2: Kotter’s 8 step model
(Source: Laig and Abocejo, 2021).
5. Conclusion
The entire report has analyzed the importance and role of a leader in terms of change management. After analyzing the entire report, it can be stated that in the procedure of change management, leaders are the most crucial driver. Kotter’s 8 step model is one of the most efficient approaches in terms of change management as it is very systematic and effective for gaining successful outcomes of the change.
References
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Al-Khamaiseh, Z., Halim, B.B.A., Afthanorhan, A. and Alqahtani, A.H., 2020. Exploring and developing items measuring situational leadership II (SLII). Development, 3, p.D4.
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Halim, A., 2021. Leadership Style's influence on workforce productivity. Jurnal Economic Resource, 3(2), pp.1-8.
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Nandasinghe, G., 2020. Leadership and organization performance: A review on theoretical and empirical perspectives. Global Journal of Management and Business Research, July, pp.25-30.
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