Organizational, transformational and management changes are becoming permanent changes of the business landscape. Organisational functions and operations are greatly affected by the changes in many ways. Innovation and creations in technologies have become very powerful nowadays (Komives, 2016). In order to meet changes, company has to become more refined and polished by doing the best practices for management for organisation leading changes. In this assignment, Marks and Spencer and ALDI companies are chosen. Both the organisations are of similar industry i.e. are retail industry. Marks and Spencer is a very big company than H&M Company. Both are multinational companies of UK. In this report, impact of leading changes on organisation will be analysed as well as the ways in which internal and external drivers of changes affect the behaviour of leadership, team and individual. Furthermore, report will be critically studying the forces for meeting the objectives of organisation in leading changes as well as comparison of the impact of changes on organisations will be discussed.
P1. Comparing the impact of change on an organization's strategy and operations of Marks and Spencer and H&M.
Marks and Spencer and H&M are facing as well as overcoming all the changes that are coming in environment. The operation, functions and strategic planning are largely affected by leading changes. In retail sectors, companies planned and make many strategies for business smooth operations and functioning of company (Glass, and Cook, 2016). All these strategies of retail industry are usually planned for influencing consumers. Organisation is also largely affected by technological changes. Strategies and operations of companies are affected by technological changes as company has to again formulate those strategies which require resources. In the modern world of globalisation, people are more demanding and advanced. New machines, equipment and tools are used by company which are very fast, production capacity is very fast by all these innovations. In order to compete and sustain in the market, both the companies have to adopt all these changes especially technological advancement.
Technological expenses are very expensive as in implementation of all these changes, it requires high amount of fund. Marks and Spencer and H&M; both companies are adopting all these changes rapidly. So, both are giving tough competition in the market. Strategies of communication is also changing rapidly and there is a very fast advancement in technologies. Communication is becoming very flat and straight, now there is no need (Hillson and Murray-Webster, 2017). There are some major changes that have been taken into consideration by company like H&M and Marks and Spencer. Some of these are as follows-
Structuralchanges- Process of communication is related with development and improvement which will be followed by company. In order to run the business, there is smooth and positive flow of information (Johnson, 2016). Effective channels and process of communication assist in the reduction of complexity and make it easy to follow.
Process-It is concerned with the modification or changes in activity processes that will assist in emergence in productiveness. Efficiency of organisation is also risen that aids in management and control of activities and actions that are been considered by retail organizations. This will amend chances of acquiring a good outcome from activities of business and optimum utilization of resources.
People- In order to bring proper alterations and modifications in organizations, enterprises look after recruiting and selecting highly qualified persons and make alterations in their obligations and duties timely to gain an impressive emergence incompatibility.
P2. Evaluating the ways in which internal and external drivers of change affect leadership, team and individual behaviours within an organisation
Internal and external factors play a vital role in effective implementation of changes. It will assist in looking through effectual management of functions and operations which are followed by both companies that help in effectual implementation of changes in M&S and H&M. Factors that are controlled by organization itself are known as internal factors whereas factors that are not controlled by company are known as external factors. By doing SWOT analysis, company can assess its internal factors while external factors are assessed by doing PEST analysis.
The assessment of external factors is as follows:
Political Factor- Political factors affect the organisations in large. The political conditions prevailing in UK are affecting M&S and H&M in the significant manner. Organisation’s effectual laws and regulations assist in better management of business activities. It will also facilitate an emergence in compatibility and ascertain of policies. Furthermore, political element will affect setting up of rate of tax, quality and standards as well as employment laws that are followed by organisations (Nelson-Brantley And et.al., 2018).
EconomicFactor- Economic factor involves the entire economy of country and any changes in economy affects organisation’s functions and operations. Economic system of country will assist in looking after the functions that will help in effective management of business operations which results in great emergence in different economic factors. Economic factor has negative impact too as rise in trade policies results in reduction in salary, wages and rise in the price of goods and services.
SocialFactor- Social factors are mostly depends on company's work culture, surrounding as well as atmosphere. In order to control the negative effect of social factor, company has to improve and develop the quality of product according to the expectations of customers. M&S and H&M; both companies formulate their strategies according to the demand and expectations of society.
TechnologicalFactor- In the world of modernisation, technological advancement plays a crucial role in development and growth of company. Companies have to adopt the changes coming in the environment in order to sustain in the market. Satisfaction level of customers is also satisfied by the innovation and creations that company made in their products and services.
From all these factors, the entire organisation is affected. The behaviour of team, individual and leadership is largely affected by all these factors. Both the companies are accepting and overcoming all the changes in the factors in very effective way (O'Donnell, and et.al., 2015).
Beside this, for internal assessment of M&S and H&M will conduct SWOT analysis in order to improve and amend the work performance of the company are as follows-
From above table, it was analysed that both companies has somewhat same result while doing SWOT analysis.
P.3. Evaluate measures that can be taken to minimize the negative impacts of change on organizational behavior.
There are so many measures which is being followed by organization to reduce and minimize the risk element that has been faced by company. The external and internal factors lays very heavy impact on the functions and operations of company. There are some factors that lays negative effect which is need to be taken in consideration that will aid a good management of the activities of business as well as aids in emergence in customer satisfaction and activities. There are some majors that company follows for smooth functioning of business are as follows-
TeamEngagement- Marks and Spencer and H&M both companies are looking after there teams as it is very important to have better management of team in organisation in order to achieve goals and objective of company. Top authorities of company are encouraging the participation of employees in decision making activities so that feel motivated to do there job. By taking there involvement in decision making activities, company will come up with innovations and creations. It will also assist in building a good relationship between the organisation and employees.
Propertrainingandlearning- Providing training and learning will assist in good management of company. The performance of company will also be improved by giving training to employees as well as employees feel they are special and valued. Training and learning programmes also helps in raising revenues and profit of company. M&S and H&M companies are also conducted training and learning programmes for there employees in order to bring efficiency in there work (Rothwell, Stavros, and Sullivan, 2015).
Communication- Effective communication is the essence of each and every business. Effective communication plays efficient role in development and growth of company. If there is communication gap within organisation, then there will be negative impact on the profitability and image of company. In order to gain better satisfaction level of customers, proper and full fledged knowledge of communication is required. Companies are using various principles and models of communication to improve communication. Besides this, effective communication will aid in better management as well as control of the requirements and needs of the company and avoid communication gap and misunderstanding. M&S and H&M companies both are working hard on the boosting effective communication in there organisation, So that they can earn more profit and gain high customer satisfaction.
Work in small doses- In order to earn profit as well as earn customer satisfaction, it is very important that changes which company is going to implement within there work should be in small doses, it should not be burden on them (Uhlemann And et.al., 2015). Employees of H&M are satisfied by there change-management system as changes are implement in right manner. Employees of Marks and Spencer are resisting to changes as they put burden on them which is nor digestible by them.
Conclusion and recommendation with valid justifications for planing effectively for change and impact of change.
From the above paragraph, it was analysed that if company want to achieve its goals and objectives, there should be proper and system way of communication as well as effective strategies of management (Fullan, 2014). Burden of implementation of changes should be avoid by company so that employees turnover will be controlled and they feel satisfied. Both companies can use models of communication to improve there communication. There are some recommendations for effective applications of changes are as follows-
Systematic planning is very important, before the implementation of changes which results in an up-gradation of customer satisfaction as well as employees too.
Beside this, taking feedback from employees as well as from customers will also be fruitful for the company. By taking feedback, the company can test its feasibility.
P.4. Explain different barriers for change and determine how they influence leadership decision making in Marks and Spencer.
There are different barriers for company that has great impact on overall functional and operational activities of company. It will also have great impact on company's profitability. In order to implement these change, it is very essential to have systematic and proper management and handling of business operations (Feldman, Hart and Milosevic, 2017). Leadership decisions and behaviour of managers and leaders is also affected by change in very impressive manner. There are some major barriers to the changes that are been implemented by Marks and Spencer are as follows-
Employee's resistance-This is one of the major barriers that has great impact on the implementation of the changes that are been implemented by company. Sometimes changes are easy and sometimes changes are not so easy. Employees has to come out from there comfort zone when changes are implemented, so sometimes they resit to changes. They did not adopt changes which are adopted by company. The employee's avoid facing these changes which in turn become the major barriers in implementation of changes. Some times Marks and Spencer resist to changes that are implemented by company.
Communication gap- Communication gap is also a major barrier in implementation of changes and even it leads to entire disturbance in the functions of organisation. Communication gap is occurs when there is difference in sending message and receive message. It can be arise by any methods like alteration in message, noise, wrong selection of channels of communication. In order to minimise these gaps, company has taken some initiatives so that it will reduce. Beside this, miscommunication lead to entire disturbance in the performance of company. The profit of company is also affected, companied image is also largely affected by miscommunication. Marks and Spencer is doing its efforts in reducing miscommunication and make use of effective channels of communication.
Lack of skills and knowledge- This is also one of the critical barriers that company faces while implementation of changes in organisation (Espedal, 2017). Employees does not have proper knowledge as well as skilled so they did not understand the positive and negative impact of changes. Before implementation of change, it is very essential to have proper knowledge of impacts of changes as well as its pros and cons of implementation of changes. It change-management has full-fledged knowledge of its impact on organisation as well as on employees. The proper addition of the functional knowledge will assist in good assessment of the actions that will assist in proper growth in level of customer satisfaction. Further, it will cut down the chances of failure of company.
Interpersonal relationship- Interpersonal relationship among employees and company are very important for company growth and development. It has indirect effect on change-management as it lead a significant effect on the activities of company which is being followed by firm. The performance of work is also affected by interpersonal relationship among employees and organisation. In order to smooth functioning of organisation, it is very important to prevent those issues which are causing bad impact on the relationship among employee's and company (Yoder-Wise, 2014).
From the above paragraph, it can be stated that it is very essential to have proper management system at Marks and Spencer. Proper selection of communication channels is very necessary, fully-fledged knowledge is also very essential and healthy and happy relationship is also very important (Daft and Marcic, 2016).
P.5. Apply and evaluate different leadership approaches to deal with changes in a range of Marks and Spencer.
There are so many leadership approaches as well as models to guide leaders in effective way. These approaches and models plays a vital role in attaining the target and objectives of company. If company has good leaders than company will reach its goals in very effective manner. Leaders and managers guide the employees within the company to adopt the changes which company is following as well enhance there performance. Further, they also aid in making companies good management system within the organisation.
There are some approaches of leadership which leaders of Marks and Spencer are following are as follows-
Autocratic leadership approach- In this leadership approach, leaders take decision himself without asking anything from others in company. This approach also states that strictness very necessary within the company to handle the employees. But this type of leadership is good at some point as overpowering is not good sometime (Doppelt, 2017). This type of leaders neglect the demands and wants of employees which is major disadvantage of this approach.
Democratic leadership approach- This is the leadership approach which focus on each and every participation of employees. In this type of leadership, employees are motivated to great extend as they feel valued when there reviews and ideas are taken in decision making activity. Leaders in this approach focus on company's growth and development by expanding company in the field of innovation and creation. Other than that, leaders also focus on uprising employees satisfaction. Beside this, democratic leaders will bring better productivity in the company.
Transactional leadership approach- In this type of leadership approach, leaders plays important role in the functions and operations of company that cause company to survive in the market. In this approach, leaders assigned duties and responsibilities to employee's according to there knowledge, quality, skills and capabilities. They also reward employees for their good performance and achievements. It includes the effectual reassessment of the workers and furnish them with impressive appraisals and advantages. This will assist encouraging and motivating the manpower to execute well and amend the affectivity of the organisation (Burke, 2017).
Transformational leadership approach- In this approach of leadership, leaders focus on brining changes in the work procedures and structures that assist company to improve and develop the structure of company in well manner as well as develop the effectiveness of the company. By bringing changes, employees will get proper intellectual simulation and facilitate effective communication between manpower and company. Further it will also provide high customer satisfaction.
From all above approaches of leadership, it is found that, all leadership styles has its positive and negative effect. Marks and Spencer is following all these approaches of leadership in there organisation which is beneficial for company in reaching to there goals and objectives of the company (Archer, 2015).
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On the basis of the above report, it is concluded that adopting changes plays an efficient role in the development and growth of the company. This report also makes understood about to implement these changes in an effective manner. There are different barriers for a company that have a great impact on the overall functional and operational activities of the company and it has a great impact on the company's profitability is also discussed in this above assessment. Moreover, there are so many measures which are being followed by the organization to reduce and minimize the risk element that has been faced by the company. The external and internal factors lay a very heavy impact on the functions and operations of the company are also included in the above assessment.
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