- Give all the strategic and operational changes in Tesco.
- Evaluate change management theory with all tactical options.
- Give all the organizational planning and development.
- Give all the key areas and the individual resistance in Tesco.
Changes take place in business environment due to several factors and these modifications are implemented in the organisation for enhancement as well as better growth in future. Changes is the continuous and ongoing procedure which comprises transformation in structure or strategies which assist enterprise in surviving and sustaining in their market position for long duration (Al-Haddad and Kotnour, 2015). White water metaphor is the term which means changes take place drastically whereas, Calm Water means modifications are done to be in slow pace.
This report is based on Tesco that is an British Multinational grocery retail company and it is introduced in 1919. respective organisation having approx. 2500 stores in UK, Ireland, Hungary and so on. This project is going to define white water as well as calm water metaphor which assist in assessing planned and unplanned approaches related to change. For enterprise, it is important to analyse external factors in better manner for implementing business strategy effectively. This create implication for Human Resource division which needed to handle sift and apply related theories in system for achieving business objectives.
1. Analysis of white water metaphor resulted from planned and unplanned approach to change
Change is process or act by which something becomes different. It is essential part of any organisation for enhancing and leading market image and position. In order to cope up with dynamic changes, top management have to make strategies plan for survival and growth in business. Every company have to go through this phase in their lifetime once. The firm need to formulate unique and innovative business ideas for designing system and conduct business activities as per market conditions. Changes can be because of external and internal forces. External are marketplace, technology, economic changes, government laws and regulations, labour market (Appelbaum and et al, 2012). Similarly, internal are change in organisational strategy, new equipment, workforce changes and employee attitudes. But as per scenario given in assignment the two important metaphor are calm and white water.
Calm water metaphor envisions company as large ship by crossing calm sea and experiencing occasional storm. In this captain of ship and crew knows everything because they have made trip many times before. It dominated thinking of academics and practising managers. In this the changes took places very slowly and calmly which is occasional disruption of normal flow of events and can be easily planned. White calm metaphor is the description of organisation which describes small raft navigating raging river. It is lack of predictability and environmental stability which requires firms and organisation continually adapting to survive. It is very fast and quick changes took place at surrounding and are unplanned and unexpected. The calm water metaphor is best explained with Kurt Lewin's three step description of change process which is described in context of Tesco:
DET18AB24 Employee Relations Equality
Kurt Lewin's three step model
Change Management Model was proposed in 1940s by Lewin for adapting and to deal with changes. It has three main stages which moves from current state to desired future (Lewin's Change Management Model. 2018). In order to explain this model example of cube of ice is taken in which customer like cone of ice which is explained:
- Unfreeze- It is the stage of melting of ice.
- Change- It means mould into cone shape.
- Refreeze- The water for new desired shape.
Now will explain more about this model in depth by applying golden rules.
Stage 1: Unfreeze- It is stage of transition and most critical stages in entire process. It is about creating motivation for change which is intrinsic to an individual for working on better result achievement. It helps in improving readiness and willingness of people to move from existing comfort zone to transformed situation. Here, communication is important for support and involvement of people. Tesco also has gone through this phases. As it has to introduced self service in order to survive in market.
Stage 2 : Change- This stage is actual implementation of change and accepting of new ways for doing things. Here people are unfrozen and actual change is implemented. In this step, effective planning, communication, encouraging individual for endorsing change. As this is not easy for people to accept changes . Here, Tesco implemented those changes to satisfy customer requirements. It implemented those change to remain leader in retail industry.
Stage 3 :Refreeze- In this stage people move from transition to much stable state which is regarded as state of equilibrium. The people accept or internalize new ways of working or change and establishing relationship. The staffs are rewarded, positive reinforcement, recognised for accepting and strengthening new changes and behaviour. By applying self service at Tesco, it has gain goodwill and image at market place. This model is implemented in three ways:
changing attitudes, behaviour, skills of individual at workplace
changing organisational culture, climate and interpersonal style
changing existing structure, processes and systems of organisational.
Planned Changes is deliberate decisions which are made in organisation. It is implemented in planner manner for achieving goal and objectives. It can be internal and external changes (Babalola, Stouten and Euwema, 2016). Internal includes changes in service or product, organisational structure & size and administrative system. External includes technological innovation and advancement in communication and information processing. Here, in order to survive in world of technology Tesco introduced customer relationship programme named as (CRM) which has brought successful operations in management.
Unplanned changes is result of occurrences which are unforeseen. They are unexpected changes which took place at corporation. It can also be internal and external changes in which internal are performance gap and changes in demographic composition. Similarly, external are global economic competition and government regulation. Tesco is serving products to all individuals to retain customer loyalty and brand value.
Changes at Tesco
Tesco has significantly made strategic change on growing market in UK. It is established and made plan for growth, which allowed to strength business and drive expansions at new markets. As environment is dynamic so firm need to cope up with those changes and survive in surrounding. Here, Tesco also adopted changing need and want of people, market in order to survive in competitive era. It has undergone some changes for set up such as introduced self service to remain competitive and satisfy customer requirements. It is significant to accept such changes to remain leader in retail industry. It has also faced environmental impact from fossil fuel using for packaging issues. The company has placed itself in list of highly growing and fastest market in world. It has also planned to become 0 percent carbon business by 2050 and reducing emissions to 30 percent of product which sell by 2020 (Brown and Osborne, 2012). It is also considering health benefits for consumers by providing information on nutrition for improvement of health. Even they make healthy options for customers by providing promotions and price, reformulating products and healthy ranges. Currently, Tesco working and strategy developing for demographics changes of all races. In order to boost domestic economy, it has local buying strategy on demand of customers. It has formed internal support and recognition to avoid employee management conflicts. Thus, in this way Tesco has adopted following changes to survive in competitive era and survive effectively and efficiently.
2. Evaluate why the shift from calm water of white took place in Tesco by considering internal and external forces of change
Business environment is dynamic in nature which result in modification on daily basis which may be trend, likes, preferences of customers, technology and so on. For better growth and sustaining in market it is necessary for Tesco to adopt all the necessary changes within required time (Doppelt, 2017). Changes take place due to alteration in external as well as internal environment. The concept of calm water metaphor has been reduced as the changes are occurring on daily basis and very fast pace, that is the reason, company like Tesco have to adopt to changes very rapidly in order to compete with their competitors effectively. Concept of calm water metaphor has been decreased because alterations are taking place on daily basis as well as very fast pace, that is the reason, enterprise like Tesco have to implement changes very rapidly so they can compete with their competitors in effective manner. Thus, respective firm have to shift from calm water metaphor to white water metaphor for long term survival in competitive market area. Moreover, there are several factors such as internal and external which have wide impact on the performance of Tesco as well as their functioning. Apart from this, same enterprise can implement different business strategies for accomplishing desired success and future growth. These are as follows :-
- Growth Strategy – With the help of this strategy Tesco can introduce new product in their new as well as existing market area. So they can achieve growth and maximise profit.
- Merger – Tesco can merge an another organisation also with them for business expansion, adding new products and so on.
- Product differentiations – This is the best strategy for achieving competitive advantages by providing unique as well as better quality of products and services to customers.
- Forces of changes – There are several factors which pose direct and indirect both effect on the company. Some of them are important which is mention below :-
Internal factors :-
- Changing Political Climate – Political conditions or other environment factors have wide impact on Tesco. Laws and regulation change or enacted by the governmental bodies posed great effect on corporate world (Edmonds, 2011). Moreover, it is important for respective enterprise to implement each and every law because it is important for smooth functioning and avoiding illegal actions. Time to time government made required up gradations in the laws and legislations . Thus, it is the responsibility of Tesco to update them in their working on regular basis.
- Lifestyle changes – This is the most dynamic term because lifestyle of an individual change when modification in weather take place. May be due to taste and preferences alteration so according to all these Tesco have to implement modifications in their goods and services. For sustaining in market and also for better future advantages.
- Marketing conditions – This is the external factor which rapidly change because desire, preference, requirement as well as expectations of customers get modify. For Tesco it become difficult to maintain their position in dynamic marketing condition. Apart from this, there are various other competition out there in market area because of same offerings as well as better prices. Thus, in this condition Tesco have to keep on developing new and innovative things to be leading multinational retailer.
External factors :- These are the factors which rule inside an company and are too many. Some of the crucial internal forces are as follows -
- Nature of workforce – As per the modification in the recent time nature of workforce changes from traditional to modern (Fullan, 2014). For instance, in the early time employees work in an company for decades but now this thing get alter and staff member work for an enterprise not more than 2 or 3 years. This situation result in high turnover ratio of capable staff members.
- Systemic forces - Company is made up of various systems as well as sub systems which are interrelated with each other. The subsystems of organization are connected directly with the company, so it influences the behavior of firm. Thus, Tesco have to manage changes in better manner and systematically manage forces for better working.
- Deficiencies in existing management structure -In Tesco several deficiencies may occur which may result in improper management, unsatisfied employees, losses may increase, lack in coordination and uniformity etc.. so to come out of this Tesco have to make alteration in their management structure, arrangements as well as procedures (Kempster, Higgsand Wuerz, 2014). Thus, it is necessary to make all these changes so that company not suffer heavy losses.
3. Analyse cultural changes which has main implications for Human Resource department and business strategies
Change in business plays a crucial role in an organization as it provides a wider perspectives or area to firms so as to grow successfully. Thus, in order to do the same Human Resource Department are solely responsible because after considering the market environment they make modifications. In relation with TESCO, so as to gain success company is making alternations according to market environment on a regular basis (Klev and Levin, 2016). Basically, changes are done considering values, beliefs, attitudes, behaviour etc., so that effective environment can be provided to its employees. Therefore, in order to do the same HR department provide proper guidance to workers which enable them in becoming habitual and resistance to change. Bellow Kotler's change model is explained for analysing cultural change that have an impact on human resource department.
Creating Urgency: It is one of the important element which is basically performed by the department of HR department. This can be done by evaluating and understanding different threats and risks which can further arise in future. This will moreover, assist company in formulating an effective strategies and action plan for eliminating the risk in an effective manner. In addition to this, by creating urgency company can grab the opportunities that are present in the market area.
Forming powerful guiding coalitions: With the help of this, HR department tend to find out effective leaders within the company who can influence stakeholders so that they can be involved in the process of change (Kotter, 2012). In order to bring alterations it is required to bring whole team along with the people that consists with power. Therefore, once company formed change coalition than it is required that a employees work as a team so that momentum of change can be maintained.
Developing a vision and a strategy: Each company has its vision by considering which firm tend to perform its job. As a result, it aid them in fulfilling all their set objectives and targets in speculated time frame (Lee and Kotler, 2015). Moreover, this can be achieved by considering values, and behaviour etc., Other than this, it is important for leaders to communicate expected change in an organisation effectively to its customers so that they can easily understand the same and work accordingly.
Communicating the vision: Communication is an effective process for interacting with employees and other subordinates. Thus, in relation with TESCO, if they want to achieve their targets than it is crucial that leaders interact with their employees and communicate their vision to their workers so that work can be done effectively.
Removing Obstacles: For resolving issues and problems HR department plays a crucial role as they require their assistance for doing any kind of activity. In order to do the same, it is important that they have proper knowledge about the structure and procedure because it has to be maintained as per the company's vision (Lefebvre, 2013). In addition to this, leaders should be able to identify the cause and effect which can work so as to remove obstacles.
Create short term wins: While achieving targets it is important that leaders set short term targets and goals as achieving them it can boost the morale of employees. This can keep employees motivated and achieving targets becomes easier. For instance: TESCO, for a short period of time, is setting its sales and profitability they want to achieve and doing the same it is increasing the confidence level.
Consolidating gains: Achieving targets and objectives is not the only task, as the HR department should evaluate the performance on a regular basis so that growth and success can be evaluated. Therefore, if any kind of changes is required than it can be done in an effective manner for obtaining targets and objectives.
Anchoring change in the corporate culture: In an organisation change plays an integral role as it is important that an employee is fully supported by leaders towards the change.
With the help of the above-mentioned change model, Kotler's generally used by the HR department to analyse and interpret issues, threats and opportunities (Smith, 2011). Therefore, with the help of this model company can reduce failures which will ultimately lead the company towards success. Thus, it can be said that most the firm opt this for to have significant growth.
From the above discussion, it has been concluded that for every company it is necessary to implement as well as adopt changes. So they can retain their position and grow constantly in the market area as well as competitive business environment. There are mainly two concepts i.e., calm water metaphor which stands for slow modification. Whereas, another is the white water metaphor which is related to drastic changes which take place in the business world. Enterprises in present times have transformed their all process as well as operations from calm to a white metaphor for surviving in the competitive world. Tesco is one of the leading company which adapt to each and every changes possible which can beneficial for the company. Looking for assignment help contact our experts now.