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Strategic and Operational Leading Change

University: Nelson College London

  • Unit No: 7
  • Level: High school
  • Pages: 15 / Words 3825
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 296
Question :

This sample will let you know about :- 

  • Discuss about the types of organisational changes.
  • Discuss about the different barriers of leaders.
  • Discuss about the measures to minimize negative impacts of change.
Answer :
Organization Selected : H&M and Arcadia Group Ltd

INTRODUCTION

In order to grow and expand in global market it is important that leaders of business bring changes in their strategies and operations and take risks so that changing customer needs can be efficiently met and high profits can be earned. It is important to understand the changing market conditions so that negative impact of these changes can be minimised and competitive advantage can be gained. Change in organisational strategies can also help in increasing the motivation of workers, decreasing operating cost of business, deal with rivalries etc. so that profits can be maximised (Neumann, James and Vince, 2019). This report is based on two companies H&M and Arcadia Group Ltd who are dealing in the same sectors i.e. retailing in branded clothing for customers. H&M is a multinational clothing retail company which deals in highly fashionable clothing for all ages customers. Arcadia is located in London, UK and owns high street clothing retailers Burton, Dorothy Perkins, Topshop etc. In this report the drivers of change which leads to changes in organisational strategy and operations will be discussed along with the discussion of barriers to such changes. Further leadership approaches will also be discussed that will be suitable to deal with changing business environment.

TASK 1

Organisations where there have been impact of changes

Strategies of organisation are the set plans, actions and structures that are decided by managers so that the company objectives are achieved in desired manner. These strategies are formed by aligning them with company mission and vision so that long-term goals are achieved. They also help in gaining a competitive edge in market so that large number of customers can be attracted and sales of company can increase (Nelson-Brantley and et. al., 2018). Changing business situations affect company strategies and they need to be changed so that business can continue to survive in market. A comparison of impact of change is given below:

Basis

Arcadia Group Ltd.

H&M

Political changes

Impact: The political situation of UK is generally stable however due to Brexit company might face issues in trading freely with EU markets which means that company sales might decrease along with decrease in free flow of raw materials.

Strategic changes: Due to increase in prices of company products it is important that strategic changes are made which can help it in increasing its sales. Company can switch to economic pricing from premium pricing so that the loss of sales in EU can be managed by increasing sales in UK and other regions.

Operational changes: Arcadia can start selling its products online so that a large number of customers can be reached and sales of company can be increased (Espedal, 2017).

Impact: Brexit might affect company business in UK as there will be trade restrictions which can affect company's market in EU. The price of its products might also increase which will directly affect company sales and revenue.

Strategic changes: The company can improve its supply chain management so that the rise in price due to Brexit can be managed by maintaining good relations with its suppliers and customers (Bohman, 2019).

 

Operational changes: The company can improve its online sales by improving customer satisfaction through the usage of technological developments, feedbacks etc.

Social changes

Impact: The preference and taste of customers keep on changing and also their switching cost is very low which means that they can switch to other company products very easily which affect company sales and increase inventory cost due to unsold items.

Strategic changes: The company can decrease its prices of cloths and increase the quality of its products so that high quality clothes can be made available to customers at low costs which will increase their satisfaction.

Operational change: The company must include various offers, discounts, rewards etc. so as to increase its sales. Also through online sales the company can deal with its inventory costs by selling more items and giving offers on its sales which will help in attracting a large number of customers (Neumann, James and Vince, 2019).

Impact: The spending preference of customers is increasing more on education and tourism which has affected their purchases of clothes and decreased company sales.

 

 

Strategic changes: Through decreased pricing of company products and promotion of its online shopping the company can increase its sales and deal with decreased company revenue.

 

Operational change: Improved CRM, offering discounts, easy payment methods, return and refund policies, fast delivery etc. can help the company in increasing its sales and improving its relations with customers which will help in increasing its sales (Drago-Severson and Blum-DeStefano, 2018).

Drivers of change including types of changes in organisation

There are both internal and external drivers of change which affect an organisation due to which changes are made in company policies and strategies so that the negative impact of drivers of change can be minimised. It helps in maintaining the sustainability of business in changing business environment. Following are the drivers of change affecting Arcadia Group Ltd:

  • Internal: These are the changes made by board of directors of company which affect the way in which company is run like change in overall goals, purpose, strategy, structure etc. of organisation.
  • External: These are the external changes which occur from outside the company like new competitors in market, technological innovations, governmental policies, customer demands etc. Get Assignment Examples ? Talk to our Experts!

Types of organisational changes:

  • Remedial changes: These changes are made by managers of Arcadia when they identify a need to improve the company's performance or deal with financial distress. In remedial changes correction in strategies or policies, way of doing work etc. are made so that improvements which will help in achieving fruitful results for company.
  • Transformational changes: These are radical changes made by company in their business model, company structure, culture and management so that effective response can be made towards the changing external environment. These changes help Arcadia to survive in the changing market environment and deal effectively with changing customer taste and preferences (Al Barwani, Flores and Imig, 2018).

Read Also: Destination Management Services

TASK 2

Ways in which drivers of change affect leadership, team and individual behaviour

An organisation is affected by both internal and external drivers of change and it is important that the company bring change in its strategies and policies so that the negative impact of these changes can be minimised and company continue to exist profitably in the market. Internal drivers of change affect organisation's structure which impacts the way in which company is run while external drivers of change bring changes in company strategies and policies so that changing external environment can be dealt with in an efficient manner. Following are the impact of changes on behaviour of individuals, teams and leadership in Arcadia Group Ltd:

Internal drivers of change:

  • Resources: The resources of company are assets which are used by it to perform its basic operations and functions like human resources, capital resources, monetary resources, raw materials etc. Change in any of these resources affect the behaviour of people involved in company like if there is proper availability of funds then employees will be motivated to perform their work in an efficient manner. Also leadership style of leaders will be affected and they will decide as to how the work needs to be delegated and progressed so that it can be completed on time. Effective teams will be formed in company so that funds are utilised efficiently so as to complete work on time (Alavi and Gill, 2017).
  • Capabilities: If the workforce of company do not utilise their capabilities and potential to their full extent then changes in company strategies and policies are made so that company objectives are achieved in a desired manner. Also when there is a requirement of workforce in company new recruitments are made so that overall performance of company can be enhanced. This affects behaviour of individual as they have to adapt to new company policies, leadership will be affected as they will follow different styles so that the capabilities of workforce can be efficiently utilised.

External drivers of change:

  • Government regulations: Changes made in government policies, rules and regulations can affect the company and lead to changes in its structure, culture etc. For example if government increases tax rates on raw materials then there will be changes in company strategies so that increased prices does not affect its sales. Individual behaviour will be impacted as change will increase stress of work for employees, teams will have to work in an effective manner so that sales can be increased. Leadership will also be affected so that teams can be directed to increase their work capacity (Byers, 2017).
  • Customers: The taste and preference of customers keep on changing with the increased technological advancements which means that companies have to bring innovations in their products and services so that customer needs and wants can be satisfied. This affects individual behaviour as they have to work more efficiently to satisfy customers, leadership style will be changed to democratic so that innovation in can be brought. Teams will behave in a responsible manner so that new and innovative ideas can be brought which will help in increasing customer satisfaction.

Measures to minimize negative impacts of change

There are different types of attributes and behaviour of employees when implementation of changes occur in company therefore it is important to minimize the negative impact of changes on employees so that their motivation and efficiency of work do not get affected. This also help company in raising their productivity which help it in gaining a competitive edge in market and achieve its goals in an efficient manner.

  • Employee engagement: The participation and involvement of employees in activities of organisation such as decision-making process can help in reducing negative impact of change on employees. This will lead for organisation to implement changes in an appropriate manner. As the value of employees views assist them to engage in various organisational activities. This also motivate them to adapt changes effectively. With this, the employees can use their skills properly which help organisation to decrease the impact of changes (Cacciolatti and Lee, 2016).
  • Effective communication: The Communication plays an important role between organisation and employees. As it help in delivering appropriate information to employees that will help them to interpret those information in their work settings. It also develops understanding of change that are recently implemented in an organisation. It enhance organisation to motivate to remain competitive in market. Want to get Assignment help? Talk Our Expert Now!

Theories and models which can help organisation in dealing with change

The Burke Litwin model determines various drivers of change and rank them based on their importance which affect company strategy, mission, leadership, organisational culture etc. This model was developed in 1960 by George H. Litwin and W. Warner Burke which can help leaders to identify drivers of change on time so that appropriate changes can be made in company which help in minimising their negative impact. Through this model leaders can assess all the organisational and environmental factors so that required changes can be made and they can be implemented successfully in the company. According to this model external factors are the major drivers of change which include change in market conditions, legislation, competition and economy. Thus it is important that mangers of company continually scan the environment and effectively implement changes so that behaviour of teams and individuals can be monitored and controlled (Dawson and Andriopoulos, 2014).

Conclusions and recommendations with valid justifications

The analysis of change impact was formed by Arnold and Bohner. This help in identifying impact and consequences of changes that are newly developed with in organisation along with identification of need of new changes. With this, risk can be analysed by identifying impact of change resources and schedules. It has been analysed from above discussion is that there are internal and external drivers are occur which impact company. From this, company can bring changes by maintaining sustainability of changes with company can be occur. The internal factors can be initiated and controlled by managers while the external factors can bring up changes with in strategies of company. The change can be effectively implemented with in internal system firm of organisation. As the technical advancement help Arcadia Group Ltd. This help organisation in attaining objective of change in the environment of organisation. There are some recommendations which are need to be necessary which influence change so that it can be done effectively (Doppelt, 2017).

  • The appropriate and effective communication must be implemented with in organisations so that all data and information can easily conveyed to them. This will lead to them about change and the process of executing changes.
  • The involvement of employees must be necessary in decision-making of organisation that can help them adopt changes by using their own skills.
  • The leaders and managers of company are necessary to manage and monitor employees. This help them to change perspective towards change of employees which also help in raising performance of them with in business of organisation.
  • There some factors on which change are depends so it is necessary to analyse those changes as it assist the organisation in implementing changes in environment of organisation.

TASK 3

Different barriers of change which affect decision-making of leaders

While implementation of change in organisation leaders face various barriers which affect their decision-making so that changes can be implemented in an efficient manner. These barriers need to be removed so that change can be accepted by all the employees of company and company can sustain in changing market conditions. Following are the barriers of change which are faced during implementation of change:

  • Unknown current situation: When the current position of company in market is unknown then it becomes difficult to implement change effectively. It is important that managers of Arcadia Group Ltd assess and understand the current state of company in market which will help in understanding the impact of change on company. This affect decision-making of leaders as they first analyse company's current state before implementing change (Lawrence, 2015).
  • Lack of effective communication: If there is no effective communication strategy in company then it creates a barrier in change implementation. Thus it is important that leaders at Arcadia establish effective communication so that all the employees can be informed about change which will help them in adapting to change efficiently.
  • Complexity: If the company structure is complex then it becomes difficult to implement change in desired manner which means that the leaders of Arcadia needs to simply its processes, products and systems. It is important that a diligent, high-quality and highly effective project and change management approach is adopted so that change can be efficiently implemented in company.
  • Less employee engagement: When there is lack of employee engagement it becomes difficult to implement change as employees are essential resources of company who must be involved so that their resistance against change can be minimised. Democratic leadership style can be followed in Arcadia so that employee engagement can be increased and change can be implemented in company.

Use of force field analysis

The force field analysis model was given by Kurt Lewin in 1951 which can be used in decision-making while implementation of change in an organisation. This gives a comprehensive overview of the driving and restraining forces which work on an organisation so that changes can be brought when the equilibrium of these forces get disturbed. The managers of Arcadia Ltd needs to continually analyse these factors which will help in implementation of change in an effective manner. When the driving forces of change becomes strong or the restraining forces become weak then changes occur in company.

Critical evaluation of use of force field analysis

Force field analysis is a change management technique which help in analysing various forces which work on company and help in determining when change can be brought in company. Change is brought in company when the equilibrium between the driving forces and restraining forces gets disturbed. This tool help the managers of company in systematically analysing the factors which are found in complex problems so that decisions can be made regarding implementation of change. This tool must be used in companies so that all the driving and restraining forces can be analysed so that change can be implemented efficiently which can help company in achieving its goals and objectives (Maccoby, 2015).

TASK 4

Leadership approaches to deal with change

Leadership refers to the ability of an individual to influence the work of others and motivate them to work in a particular direction so that company objectives can be achieved. It is important that while implementing change in company appropriate leadership approach is adopted by leaders so that work efficiency and performance of employees can be improved and company goals are achieved. Following are the different leadership approaches which can be followed in Arcadia Group Ltd:

  • Autocratic leadership: In this approach leaders of company control all the decisions and directs employees to work in a defined manner. In this approach employees are not involved in decision-making which means they have to work as per the instructions which are given to them by leaders. This approach can be adopted in company when a complex change is introduced so that employees can be directed to work in a particular manner and confusion can be minimised (SammutBonnici and Galea, 2015).
  • Democratic leadership: In this approach a democratic style is adopted in which views and opinions of all employees are considered while making decision. Through this approach employee engagement can be increased and the motivation of workers can be enhanced which help in improving their performance. This approach is adopted by leaders when a change is implemented that directly affects the work of employees and requires the involvement of employees.
  • Situational leadership: This approach is adopted by leaders in certain situations so that team members can be lead in an efficient manner depending on situation. This approach can be used in Arcadia when changes are implemented so as to deal with immediate situations which will help in leading the employees in a desired manner. This approach can help in dealing with certain situations in an efficient manner and achieve short term goals in an effectively (Scott, 2018).

From these approaches it can be said that democratic leadership is the best approach which can be adopted in company so that employees can be involved while implementation of change. This approach help in making efficient decisions by considering the ideas and opinions of all the employees. This approach help in motivating employees which is also essential in adapting to change easily and quickly and also minimising their resistance to change.

Examine the approaches of leadership by using models and theories

Lewin's change management model can be used by Arcadia Group Ltd so as to implement changes in company in an efficient manner. As per this model there are three stages of implementation of change which are unfreezing, change and refreezing. Unfreezing means initiating the implementaion of change process which includes boosting and encouraging the employees top accept changes in company. Change is the process of implementation of change in company where different leadership styles are followed and change is communicated to all te members of company. Refreezing is the stage after successful implementation of change in company and everyone adapts to change in a positive manner. The application of model is time consuming as it involves various stages for implementing change in an efficient manner (Neumann, James and Vince, 2019). Take Management Assignment Help Now!

Critical evaluation of leadership approaches

It is analysed that democratic leadership style must be followed in companies during the implementation of change in company which can help in involving employees in decision-making and making which encourage them to accept change easily. This also improved integration of employees ion change management process which is important so that beneficial results can be drawn from change which can help in dealing with adverse environmental conditions.

CONCLUSION

From the above report it can be concluded that change is an important part of an organisation to remain competitive in the market and deal with changing business conditions in an efficient manner. It is important that strategic and operational changes are made in company as per the impact of change on company. Also there are various internal and external drivers of change which needs to be analysed so that company can survive in the market. Various theories and models can help in efficient implementation of change so that employees can easily adapt to change and help the company in achieving its objectives.

Read More - Equality and Diversity in the Workplace

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