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MC4F12 - Understanding and Leading Change - Level 4

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Introduction

The present working scenario has changed and it has become important for enterprises to remain updated with the market. Due to globalization innovation in the business surroundings is taking place on a regular basis which needs to be adopted in the same manner so that competitive advantage can be maintained. There are both positive and negative changes that occur in the environment and each one of them has their own impacts. It is required that the administration understands the modifications on time so that planning for the same can be made. It further assists in making the resources available which may be required while implementing the modifications. Hilton is a global chain in the hospitality industry which is known for its quality of services and effective marketing strategies (Alkahtani, 2011). There is a close rivalry present in this industry and therefore continuous changes are made in this enterprise so that it can increase its scope and can maintain an effective position in the hotel industry. The following report will discuss the different issues that come across while bringing alterations in business and other change-related concepts.

Task 1

P1 Compare different organizational examples where there has been an impact of change

Be it any kind of business none of them can remain unaffected by the alterations that are made in business. There are sometimes big changes made and many times small depending upon the current need of an enterprise. As the hospitality sector has various competitors it has to maintain developments on a regular basis so that customer interest can be maintained. The manner in which it is implemented varies from business to business as the products and services they deal in vary from one another. Whenever a new way of doing work is implemented in business it affects the existing strategies of an enterprise and they need to be modified or need to be changed entirely (Anderson and Anderson, 2010). This way it affects the continuity of operations too. In order to understand the impact of change a comparative study of two different sectors is done in which one is Tesco which belongs to the retail sector and the other is Hilton which has an entirely different operation as it is a part of the hospitality business. The impact of change on both these enterprises is discussed below:

Strategies

Hilton

Tesco

Product

It is a part of the hospitality sector whose main product is giving accommodation and entertainment facilities to its customers. Changes are brought to provide more satisfaction to the customers so that they can get higher satisfaction after spending their money.

It is dealing in an entirely different range of products. Domestic products, clothing, and other retail items are found under the same roof at competitive prices.

Price

This organization is known to be relying on cost leadership approaches. The offerings of this organization are provided at competing prices considering prices set by rivals.

Hilton International is known to charge premium pricing for its products and services. The reason clients are charged with higher prices is that they are perceived as superior quality rather than rivals.

Place

This organization has marked its presence on the global level but is largely present in the United Kingdom itself. The operations are carried out through 6900 stores worldwide.

Hilton hotels and resorts are present on the international level as well. These organizations possess a chain of hotels and are more than 570 hotels.

Promotion

Tesco has been taking reliance to opt for numerous strategies that highlight lower prices that are being offered by the organization. There are numerous discounting schemes offered by this organization to enhance sales.

Hilton organization is known to undertake a variety of promotional tactics so that its business position can be attained. This organization is known to undertake discounting schemes and membership programs to retain its customers.

Technology

There are lots of changes happening in the technological sector that impact the operations of the organization. For ex., a New application allows the customer to access their room with the help of digital security. It seems to have a positive impact on an organization.

Changes in the retail sector happen in vast manner. The emergence of the online platform has a huge impact on the sales of an organization in the initial manner. Acceptance of this allows them to improve their sales and profitability


M1 Assess the different drivers for change

In an organization, immense changes take place due to the alteration in the external and internal surroundings. They have the capacity to affect the working capacity of an enterprise. It is important that planning is done accordingly in advance so that the impact of change can be minimized (Bingham and Main, 2010). Human resources is one of the most important assets of an enterprise and is maximum affected by the innovation that is made in the daily procedure. When a change is brought in the working style, policies or strategy it is referred to as the internal change and is brought to raise the existing efficiency capacity of the firm. On the other hand, when a change is made due to alteration in present political, economic, social, or technological issues it is considered as an external change. Such are

D1 Draw conclusions and recommendations with valid justifications for planning effectively for change and applying change impact analysis

In order to understand the impact of change a comparative study of two different sectors is done in which one is Tesco which belongs to a retail sector and the other is Hilton which has an entirely different operation as it is a part of the hospitality business. This type of modification is necessary to be made as it is not a choice but necessary to maintain its position in the market. It can be concluded that change is required to gain higher success and growth for an organization. Most of the time change directly impacts employees because they do not adjust to the changing situation or environment and do not perform work in a good manner.

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Task 2

P2 Evaluate ways where internal and external drivers affect leadership, team, and individual behavior

In the current time period, every company mainly concentrates on reaching specific goals and targets for completing tasks and work in effective manner. There should be better manpower who are doing effective perform and also help in achieving with the organization. Leaders play an important role in business concerns because they are mainly focused on providing accurate direction and path to their employees towards reaching targets and goals in proper manner. Along with this, leaders are required to adopt various leadership styles to get the best outcome or results for doing the effective work. Company managers and leaders are the main key people of an organization and they are setting required targets and goals which help in getting appropriate profitability and productivity. In addition to this, leaders also help in motivating and encouraging their staff members so that they try to do particular tasks to get accurate goals and objectives (Branson, 2010). By doing this, they are getting appropriate success and growth in a better manner.  Motivation and encouragement are effective techniques and methods that assist in increasing the company's profitability and productivity in the large marketplace.

Hilton is the multinational hotel sector that provides effective services and facilities to their customers in a better manner. Also, they are providing the best services so this will help in attracting a large number of guests to their facilities. They try to make and create an appropriate workforce and manpower for appointing effective leaders and managers in the firm. Company leaders are also adopting and using the best suitable styles that are fit for specific situations and with the help of this people can manage and maintain all functions of business in proper manner (Brown, 2012). Managers and leaders have a basic role and duty to appoint those people who are capable of achieving desired company goals and objectives with the help of their skills and abilities. Hilton Hotel always works for increasing their profitability and productivity by creating new ideas and thoughts and also promoting their services and facilities among customers. There are different factors that affect leadership styles such as external and internal drivers that are described as follows:

Internal factors- Internal factors are associated with different environmental factors in the firm that include company structure, people, rules and regulations, events, and systems that can be controlled and managed by an organization. Along with this, SWOT analysis helps in understanding the major impacts which are as under:

Strength

Weakness

Leaders are adopting and using some leadership by which they can manage and maintain people functions and activities in proper manner. They are motivating and encouraging employees for effective working performance within an organization. Also, they can help in achieving desired goals and targets.

In the Hilton Hotel, the main weak point is that they have poor coordination of work among employees and management teams. this will directly affect business operations and its functions.

Opportunities

Threats

They need to gain opportunities related to culture and this will assist in achieving potential goals and targets. This will help in creating company structure and maintaining coordination among workers.

The culture firm is very difficult to adopt and use by company employees because this will directly affect their relationships.


External factors -
This will consist of different factors that occur outside of the firm and such can be beyond the control of an organization. It includes customers, rivals, technologies, politics, economy which directly affect firm operations (Carrington, Deppeler, and Moss, 2010). There are certain external factors which are as follows:

Political factors- There are various government policies, taxation, rules, and regulations which influence business operations and function in effective manner. There are various modifications while the government adopts new changes in the country.

Economical factors- These include inflation, variation in economic rate, and growth rate which change according to the environment so that the company can easily develop and make strategies for the nation's people.

Social factors- In this, customers' tastes and preferences always change so firms have to adopt new policies and strategies for fulfilling all needs and demands of their buyers in proper manner.

Technological factors- there are various changes which are associated with technologies so firms need to adopt the latest techniques and methods that help them enhance their profitability and productivity in a better manner.

P3 Evaluate measures that minimize the negative effect of changes

An organization can try to reach with best possible results and always succeed in determining effective techniques and methods in a better manner. They mainly concentrate on various measures whose main motive is to reduce the negative factors while using changes in the firm (Doppelt, 2017). Measuring the company helps eliminate mainly negative factors and also effectively run the business which makes an appropriate environment. Hilton Hotel is one of the most famous hotels that provides different effective services and facilities to their guests. There are certain measures which are discussed:

Training- it is the major key that helps them in increasing their employee's skills and abilities so that they are able to gain desired goals and targets of the organization. Leaders should manage and maintain their team members to perform well. these are techniques and methods that can used by the firm because this will assist in identifying occurring issues and problems in the company.

Research and development - in an organization, research, and development will play an essential role in analyzing and examining the external market situation (Fagerström and Salmela, 2010). along with this, Hilton Hotels also adopted this research and development method for measuring various factors such as current market trends, customers' preferences, competitors' planning, etc. This will help in analyzing and examining the buyer's taste and choice and also define the strong rivals that develop better strategies for attracting their customers.

Technologies- it is very essential factors that directly affect measuring the changes as per the environmental situations and conditions. An organization can identify and find new techniques and methods for adopting and using manufacturing services and goods in a better manner. Hilton mainly considers new techniques and creative technologies according to the needs and requirements so that customers can be satisfied.

Managing relationships among staff members- it is the best and most effective method which helps in making strong relationships with their customers. The company can improve its business operation and functions within an organization. Company managers of Hilton Hotels make sure to make strong relationships and create a peace system for managing manpower.

Lewin's Change Management Model:

This model is developed by Psychologist Kurt Lewin in the 1950s. According to this model, organization employees have to accept changes for company betterment. The description of this model is described as under:

Unfreeze stage - It is the first stage of transition which is one of the most critical stages in the whole procedure of change management. In this, staff members will understand and evaluate that the firm is going to make proper changes and alterations in working and they have to accept this.

Change stage - In this, employees are moving from old to new directions for gaining better learning and make improvement themselves. It is very complex for employees to accept the new structure of management but the company manager helps them clear their doubts and provides them right direction to do proper work.

Refreeze stage - In this last stage, changes have been implemented and staff members should carry out these things. It is required for respective firms is to advise their employees to make proper guidance, arrangement, monitoring, evaluation, and adjustments. It can be done as per the updated and new technology which assists in gaining appropriate results or outcomes.

M2 Change management model

Hilton Hotels is adopting Lewis's change management model for using different changes in an organization which includes unfreeze, change, and refreeze. it is the first stage which changes the manpower and develops and makes the required modifications. The model helps organizations in developing and making employees accept such changes. With this model, the company can make changes and alterations in business structure and operations effectively. Also, they are

Task 3

P4 Various barriers to change and how they impact leadership decision-making

Changes and alterations should be necessary in each company and it is very essential to determine the various change factors so that the company can survive in the competitive world. Along with this, changes are always carrying out various types of issues and problems within an enterprise (Fullan, 2014). This can be said that changes are something where firm ventures bring out effectiveness and a comprehensive environment at the workplace. its is responsible for making and creating disputes and conflicts while running smooth functioning of the business. Hilton accepts changes for determining the motivational methods and techniques so that it is essential for conducting training and development programs for increasing their staff members and this will help in enhancing company profitability and productivity in effective manner.

There are certain issues and barriers which directly affect leadership decision-making that are as follows:

Lack of effective communication- it is the fact that issues and problems occur within an organization so there can be any reason behind it which can directly affect business operations and functions. It is necessary for communicating with their staff employees and providing effective data and information which make decisions. Company managers have to develop and make while adopting and using new changes so that it is simple or easy for any kind of situation in an organization.

Lack of participation of employees- if an organization does not involve their staff members then this will become a major issue and barrier for the company. Thus, they have a responsibility to allow their staff members to make effective decisions for taking accurate decisions in proper manner. This will make and create for accepting necessary changes because their employees are not ready to accept such kind of modification in the firm.

Organizational cultural planning- this is very essential for each company which directly affects business operations and functions and also makes a positive working environment so this will help in achieving required goals and objectives (Hallinger and Heck, 2011). This is another responsibility to create and make barriers while running smooth business functions and activities.

M3 Force field analysis

There are certain ways in which different issues and barriers in a correct manner through the Force field that are various stages which are as follows:

  • Proposal for change- it is the main reason behind issues that can alternate culture and environment so that it will create major issues and barriers for staff members to understand the system of modification in the company.
  • Recognizing forces for changes- it is the next step that Hilton Hotel tries to recognize and identify major forces that can make changes in the firm.
  • Identifying factors against changes- it is one of the most essential factors where the company will define that the firm does not involve their workers while making decisions of the organization and making corrective actions.
  • Assigning scores- Company management mainly concentrates on change acceptance for developing effective relations with their customers as well as employees.
  • Analyse and apply- it is the last phase where a positive and good environment is needed for smoothly running the business operation of the firm.

The driving forces of change consist of systemic forces and individual/ group speculations are the important forces outdated machinery declining team morale and the need to increase profitability are important factors in driving change. On the other hand restraining forces of change consist of fear, lack of training and lack of incentives are the important attributes that restrict organizational goals and objectives. Factors in driving change give motivation to workers to give their best in organizational goals and objectives in an effective manner.

D2

It is a common tool and method that helps in analyzing factors that are found in complex situations. It shows the problems in terms of different factors or pressures that support the status and this type of pressure helps in change in the desired direction. Hilton Hotel uses force field analysis which assists in reaching potential organizational goals and targets effectively. This can be used for analyzing those areas which require proper changes and alterations.

Task 4

P5 Apply various leadership approaches for dealing with changes within an enterprise

Leadership is determined as the ability and capabilities that influence people's behavior and work to achieve desired goals and objectives. it is required for a company to have better leadership skills which help in setting appropriate targets and goals that can be achieved in a better manner (Malenfant, 2010). Along with this, the leader can inspire and motivate their employees to complete such tasks or work in a given time period.

Hilton Hotel also considers various approaches and leadership styles for influencing the person's behavior so that each and every employee will try to accept such changes and also adopt new innovations, ideas, various modern techniques, and methods in the marketplace. there are different leadership approaches that have been adopted by Hilton that are described:

  • Autocratic style- leaders are adopting an autocratic style to complete the whole task or work from staff members and they are providing accurate guidance for assign work to them. In Hilton Hotels, leaders can adopt this leadership style through which their employees perform work or tasks in order to gain accurate outcomes.
  • Democratic leadership style- it is a very effective method for developing and making business and also this will lead the various changes and modifications. Along with this, leaders are providing accurate feasibility and allow staff members to take part in achieving set targets and goals. Leaders of Hilton Hotels can use this leadership style by they can guide their staff members to lead towards gaining high income and revenue effectively.
  • Laissez-faire- in this leadership style, there is always an absence of a direct supervisor and they are giving freedom to their employees while doing work. it is that leadership that is not best appropriate for the environment of business because this will require more direction and instructions (Parsons and Cornett, 2011).
  • Transformational- It can be referred to as it is one of the most important approaches while making necessary changes. The method and technique of communication help in achieving desired goals and targets in proper manner.
  • Transactional- A transactional leader mainly concentrates on methods such as rewards and punishment and using the best suitable environment. Employees of the firm will provide effective services for achieving set targets for an organization. Along with this, leaders evaluate and measure the performance of staff members for taking corrective actions.

Lewin's change management:

Kurt Lewin developed a change model that includes unfreezing, changing, and refreezing. The model presents a simple and practical model in order to understand the change procedure. The process of change entails developing and creating perceptions that are required for change. These are described as under:

  • Unfreezing - It is very popular where an individual naturally resists changes as they prefer strategies and procedures that they know to overcome. In this, leaders must be motivated and encouraged to analyze the current process with a critical eye and it is possible to produce appropriate results.
  • Changing - In an organization, once an individual accepts the current process that can be improved and there are some potential solutions to the respective issue. It is the next step is to implement changes. This process may be complicated and chaotic and cost can be incurred so it is essential for maintaining morale and confidence.
  • Refreezing - It is the final stage which is most crucial in the whole procedure as often changes will be described in a small amount of time before switching back to their original state. It is important that change is properly reinforced and sustained.

Kotters Change model:

The 8 steps in the process of change which are described as follows:

  • Create Urgency - The idea of change being necessary for the success of an organization can be very powerful and they are developing an environment where an individual should be aware of current issues and problems.
  • Develop a powerful Coalition - It is very hard to lead the whole change procedure and it is essential to build and create a coalition that helps other people in direct manner. The coalition should be based on skills and knowledge.
  • Create a vision for change - A change initiative is likely to be complicated and it can often be difficult to understand in specific for staff members at the lower end of the hierarchy. For this reason, developing a vision that is easy to understand and encapsulates the whole aim is useful for generating income.
  • Communicate the vision - It is required for form is to develop vision which is not enough to generate support, then they required to communicate throughout the organization. It is an excellent opportunity that is used to build a coalition as they are likely to have networks in every area of business.
  • Remove obstacles - It is that step which is essential for developing and building strength of change initiatives but it is required to look for what is likely to eliminate its success and growth level.
  • Create short-term wins - Change procedure often takes a while to reap any award and reward and it can cause to fall if an individual thinks their efforts have been wasted.
  • Build on the change - There are various change processes that fail as complacency creeps which can lead towards the end and the project is not finished carefully.
  • Anchor the changes in corporate culture - This is simply changing the habits and procedures of employees which is not always enough to instill a culture change across the organization. The changes should become part of the core of the firm which has been directly affected.

M4 Evaluate the extent to which leadership approaches can deliver changes

For evaluating the variety of changes and alteration of leadership styles which can help in identifying so that they are suitable for significant extent in managing and leading changes within an organization. It can be said that they tend to have an effect on their workers' behavior and inspire them to do effective tasks or work in a better manner (Salmela, Eriksson, and Fagerström, 2012). There are various styles that provide opportunities to select the appropriate leadership approach in the right manner.

D3 Critically evaluate the effectiveness of leadership approaches and models of change management

A leadership approach is required for the company in order to reach with desired goals and targets in a better manner. It is effectively used in the firm so they can easily provide the right direction to their employees within an organization. There are various models of change management used by Hilton in order to gain desired goals and objectives. Lewin's model is helpful for the company because this can be used to make proper changes in different structures of an organization.

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Conclusion

As per the above assignment, it has been concluded that the environment in which business exists is full of changes which gives impact on policies and strategies of the company. Along with this, it includes several external and internal drivers which have a huge impact on day to day operation of the enterprise. Thus, firms have to focus on adopting proper tools and techniques so that they can survive in these modifications as well as make better strategies for accomplishing goals and objectives. Due to globalization innovation in the business surroundings is taking place on a regular basis which needs to be adopted in the same manner so that competitive advantage can be maintained. Changes and alterations should be necessary in each company and it is very essential to determine the various change factors so that the company can survive in the competitive world. 

 

References

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  • Bingham, D. and Main, E.K., 2010. Effective implementation strategies and tactics for leading change in maternity units. The Journal of perinatal & neonatal nursing. 24(1). pp.32-42.
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  • Carrington, S., Deppeler, J. and Moss, J., 2010. Cultivating teachers' knowledge and skills for leading change in schools. Australian journal of teacher education. 35(1). pp.1-13.
  • Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business, government, and civil society. Routledge.
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  • Parsons, M.L. and Cornett, P.A., 2011. Leading change for sustainability. Nurse leader. 9(4). pp.36-40.
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