Change management basically defined as a systematized way, technique or system that assist in dealing with workforces and other associates in order to manage changes that usually occur so as to acquire desired outcomes from commercial activities (Suchman, 2011). In context to this, leaders used to play an important role in all venture as they are the only person who are having the ability to encourage as well as promote each and every worker to work as per the modifications that may took place in specific division. The present report is based on the title ‘Understanding and leading change’. In this project two firms have been compared named as “Thomas Cook & Cosmos Tour” so as to determine the level of impact of alternations on their schemes and various operations related with tour and tourism. Besides this, discussion is also carried on about influences of different internal as well as external elements of change on the behaviour of each individual, team members and leadership too.
P 1. Comparison of different organisations and impact of change on their strategies and operations
Thomas Cook is considered one of the leading British travelling or peripatetic company whose name has been listed on the Stock Exchange of London. It comprises of large number of workers that is recognised as approx. 21,788 in recent years. They used to cater various kinds of hospitality services (Fagerström, 2012). Some of their work is associated with insurance, designing world - wide trips packages, passport and so on.
On the other hand, Cosmos Tour is another venture which act as independent tour operator. This was founded or set up in the year of 1961. It has been observed that they are allied with the Globus Travel Group that is working on global level. This company was developed in 1928 and also used to deal with tourism sector. The headquarter of Globus Travel Group is sited at Lugano, Switzerland. At the same time, Cosmos Tour is treated as the one of the optimum leisure, trip and travelling firm which is catering assorted forms of outing packs.
Both of them are being impacted by the modifications or changes occurring in business environment. Such effects can be positive or negative as well. This could be better understood by below written points :
Changes linked with prospects of technology
Thomas Cook is a famous organisation whose size is very high as they are supplying services inter- connected with tourism to large number of people who are existing not only in UK but also present in different other sector of world. Thus, they are having strong customer base. After the emergence of changes in the technological field that is nothing but its development as well as growth of modern technology, this referred venture is being negatively impacted since level of competition increases in drastic manner (Salmela and Eriksson, 2012). Several other companies are rising who act as their rivals; thence quantity of overall user is getting reduced on regular basis. This in turn causes the decrement in sales rate of Thomas Cook. Hence, it can be said that organisational existing strategies is effected negatively and needs to be changed in proper manner so as deal with such kind of issues.
Whereas, it is somehow small in size in comparison with Thomas Cook. Its schemes are not getting so much impacted because of this. On the other hand, this has been seen that their capacity of production is being enhanced day by day as they are utilising modern techniques for completing chores at daily basis. Thus, it could be stated that changes in technology brings positivity for Cosmos Tour.
Variation in external elements
Exterior components involve principles and standard made by legal bodies, entry of new venture dealing with similar area, substituted merchandise & services, etc. If these kinds of factors get modified on continuous basis, then give adverse influence on entire performance and working of denoted corporation as they always have to change their plan of action in accordance to the condition of above discussed outsider component. For example, imposition of high tax rates from the side of government leads to the wastage of huge amount of money of Thomas Cook as profit earned by them goes on paying such taxes only.
They are also being effected in same manner due to emergence of changes affiliated with exterior factors like norms and rules of governing body, growth in the number of firms that work as tour operators and many more (Parsons and Cornett, 2011). The existing plan of action as well as working of Cosmos Tour also get influenced negatively since whole strategies needs to be altered as per the current scenario of such external elements.
If changes in context to structure occur then overall operations of Thomas Cook would get hampered because they have to reconstruct all departments such as Human resource, production, accounts & finance, etc. Accomplishment of these work will consume more money along with extra time since they are having vast size.
On the contrary, as this types of modification also disturbs the existing working level of Cosmos Tour. They have to invest large sum of revenue in order to cope with changes happened regrading framework of organisation (Hallinger and Heck, 2011).
P 2. Ways in which internal & external drivers of change affect leadership and other factors
Frontrunners and managers are considered as most valuable part of an enterprise since they used to play the role of an instructor who usually provide correct directions along with forming appropriate principle for entire workforces. This as a fruitful aid in accomplishing each and every predetermined organisational ambitions and objectives as well. In simpler word, it could be stated that leaders are having especial ability, power and quality that help them impacting on the manners & nature of performance of workers (Malenfant, 2010). This is done by motivating or inspiring whole manpower to complete specific task in fixed interval of time. In addition to that, if any change emerges in market place, then company like Thomas Cook has to work accordingly so as to make their strong presence in front of different rivalries. At the same time, leaders are having responsibility to carry out all works as per the modifications which happened recently. For doing the same, they try to encourage their team members so that no one goes against it and give their contribution properly.
As Thomas Cook is associated with sector of travel & tourism, instance changes used to occur at this region due to various reasons like change in need or demands of travellers, offering of low priced services by their possible competitors, entrance of other ventures in existent, market location and many more. These all things lead to influence various aspects of referred organisation like behaviour of each worker, whole performance of team, entire leadership, etc. These prospects would be understood by mentioned discussion :
Internal factors :
Interior dynamics are treated as those that may impact complete commerce from inside. Some of them along with their effects are described as follows :
Culture of corporation : Culture is considered as a significant aspect that fully impact on the leadership of Thomas Cook. Members of this venture include work – forces of different division, employers, suppliers, tour operators, etc. comprise of variants attitudes, nature, behaviour, standards, structure, thoughts regrading ethics and moral (Fagerström and Salmela, 2010). Thus, if any alteration took place, then it is very tough task to convince all people for start their work as per the changes as they become of habited of past tradition. Therefore, in this context leaders as well as managers get influenced riskily or adversely since they have to manage all chores in proper manner.
Nature of the workers : Employees are having different nature and that is why each of them react to changes in contrasting manner. Some of the worker might get convinced with the assistance of leaders or from their inspirational speech which they used to deliver for motivating personnels to accept challenges and act accordingly. On the other hand, there are few employees also who may not get convinced and as a bad result, they oppose changes. Such kind of opposition are shown by the means of strikes, working improperly, lower attendance of staff members & so on (Fullan, 2014). Thus, here front runners come in danger since owners of higher authority of referred organisation order them to look after these forms of chores and provide them duty to complete the daily basis work associated with tourism in accordance to the changes. Therefore, leaders get mentally disturbed as they feel pressure on their heads.
External factors :
Exterior components give straight effect on the commercial operations as well as procedures from outside surrounds to the Thomas Cook. Consequently, managers and front -runners are required to focus on these forces. For the same, they need to take efficient decisions associated with each and every policy, standards & prospects of company so as to make good positioning in market even after adapting changes.
External factors might not be handled by the members of administration but they would manage it in correct style. Some of the external factors are highlighted as follows :
Economic condition of nation : Uncertainties or fluctuations occurred in the rate of economy of country wherein Thomas Cook used to operate could greatly effect on entire commercial actions of denoted corporation. If it gets reduced then as a worst result, firm might go in loss. Leaders are the one who get impacted as they have work as per the quantity of revenue earned by them.
Rise in competition : This is a main element which give effect on performance of team and whole leadership of Thomas Cook. It has been seen that large number of new competitors are coming in current market place of tourism industry and they are also delivering alike services at minimum costing. Thus, it might create complications in field of trading capacity as this would reduce drastically since people may receive more options and could chose easily from existing one according to their budget (Doppelt, 2017). But it will decrease the selling rate of venture. In this context, leadership is getting negatively impacted as leaders got pressurised from the similar. Orders of proper management comes in their shoulder. In order to complete this duty, they have to take use of suitable strategies like supplying tour packages with extra offers, reduction in price of current travelling trip, creation of innovative services, etc. At the same time, work load get enhances and from that each member of team feel stress - full.
P 3. Measures which could reduce negative effects of change on organisational behaviour
Thomas Cook should focus on minimising the above discussed adverse implications of changes so that it may not hamper or disturb their standing position or performance at market place. There are several techniques which could be utilised in this context are stated as follows :
Examination or investigation : It is measured as helpful method for inspecting trends of contemporary markets and thus aids in collecting info about prevailing or current circumstances. Consequently, Thomas Cook have to conduct such types of activities related with research or surveys so as to determine facets associated to senses of taste of each customer, choices preferred by them and competitors as well which are present in marketplace. This proved to be helpful in reducing negative effects of changes as company can easily design different plan of action in accurate mode. In addition to that, leaders and employers of referred firm could also research about the demands or wish of every staff member. In this way, they can prepare a scheme in order to convince them effectively in minimum period of time.
Good relationship with workers : Employees are only the person who is having capacity of accomplishing different kinds of works. If supervisors would not make healthy relation with them then they might not coordinate at the time of change management. Therefore, it is very essential to generate positive kinship with personnel who are performing at work station (Carrington and Deppeler, 2010). In this context, Thomas Cook should promote their mangers as well as leaders to go close to their work – forces so as to develop friendly relation. For doing the same, employers have to resolve each and every issues like reduction in salary per year, problems regarding leaves, compensation amounts, incentives, work load and many more. This in turn help in seeking attention of large number or almost all workers towards organisation and they would surely contribute when company needs them specially during implementation of changes which emerges in market and different other regions. Hence, effects of modifications might be trimmed down in effectual manner by coordinating with staff or team members.
Providing proper training : After convincing personnels for the executing or working according to the alterations, the next job of referred enterprise is to arrange suitable and attractive training & development sessions for newly as well as old individuals who are being a part of their venture. In this programme, a leader is provided to each group who is responsible for giving correct direction or guidance to personnel so as they become able to work accordingly changed strategies and plan of actions (Brown, 2012). This as a good outcome, supports workers in getting familiar about specific ways that how changes can be implemented and regular working would be carried on similar style. Hence, Thomas Cook will easily recover from the adverse – full effects with the assistance of catering correct trainings classes to their whole manpower.
P 4. Different barriers for change and its influence on leadership decision-making
Change could be stated as the system which would generate optimistic energy in the business environment. It is usual that barricades and clatters arise at the time of varying any type of scheme within organisation. Therefore, it is necessary to handle such kinds of difficulties so that Thomas Cook will become capable of running their commercial events in operative ways. They are facing abundant complications in respect to the variations as occurrence of change may give effect on their entire operations. There are some main barriers of change which is influencing on process of decision making of front – runners. This concept can be better understood by below defined terms :
Barriers affiliated with communication : This is seen as an chief cause which is responsible for fights, conflicts among team members and leaders. It also effects badly on the connections of individuals within Thomas Cook. For example, if there would be unclear announcement of significant messages amongst workers, then complete working which is being conducted for executing change gets obstructed since no one has correct information regarding their job. This in turn, also give undesirable influences on decision making of leaders since working wold nit carried on according to their order. Hence, whole performed result will go in vain. Accordingly, employers of denoted venture ought to take use better communication methods so as to transfer appropriate data to every workforce in context to enforce modifications as per their wish. It is recommending to use modern tools and techniques like social media applications such as Facebook, twitter, emails, What’s app & so on. This is considered as cheapest mode of communication (Branson, 2010). In addition to that, managers would remain 24 hours connected with their group associates and could easily inform each of them about modified plans.
Less participation of worker : This is treated as key fault of almost all enterprises as they do not involve their team workers in the process of decision making. If personnels in Thomas Cook are not engaged in taking important judgements then, they will not show more interest in working according to the imposed changes (Alkahtani, 2011). In this respect, decisions which are made by front runners as well as leaders might not be accepted by employees as they feel themselves not a part of their firm. Thus, company should promote every team member to come for contributing in giving their point of views on specific topic so that venture could have reached at essential conclusions along with their manpower. This will encourage as well as motivate workers in supporting at the time of enforcing changes.
P 5. Different leadership approaches for dealing with change within organisation
This is important to deal with modifications which may rise in business environment or within corporation. In this regard, Thomas Cook could take use of different leadership approaches that is proposed by great leaders or scholars (Anderson and Anderson, 2010). Situational leadership is given through Paul Heresy as well as Ken Blanchard in the year of 1969 which discuss about the methods and tools which leader often optimise in order to manage entire modifications which are adopted in the structure of organisation. This light over the follower and leader relationship that render systematic structure in regard of evaluating the condition which is based on the mentioned condition:
The direction amount as well as guidance which manager render in operating entire organisational task. Beside from this, based on 4 competencies of leadership that is mentioned below:
The readiness and passion level which follow exhibit at the time of performing goals and task. Beside from this, here are mentioned the major four competencies of leadership under:
- Diagnose : Initially consider the present condition that are trying to affect.
- Adapt : Alter the workforce behaviour as per the demand of consequence.
- Communicate : Interact the message with each and every individual to adopt and make modification.
- Advance: Finally, movement management.
The discussed four elements are essential for the leadership in regard of make modification in the environment of corporate. This type of leadership suggests the company to make the alternation as per the circumstances. Upcoming leader cannot accept the certain style of management but in order to settle accordingly, they require some specific time. Under this concept, entire task is eliminated among worker as per the expertise in regard of meeting the objectives in best manner.
The company, Thomas Cook is involved with the operations and developing need to follow the style of leadership for effective goals accomplishment. Adopting change is a complicated process for the leader, to accept which, organisation face various negative consequence and problems to manage effective communication. Here are mentioned some of the elements to consider entire process of change that is stated as below:
- Manager of organisation is accountable to consider what is require for change whether they render authentic results to them for upcoming time on which basis, decision are undertaken.
- Leaders adopt the modification and try to avoid resistance among worker in order to implement the change within structure easily (Alkahtani, 2011).
Hence, Thomas Cook should have undertaken entire mentioned element for initiating alternation in effective manner:
Kotter's 8 Step Change Model
This approach is eliminated into the mentioned phases in regard of adopting the company's change within the dynamic work environment that is mentioned as below:
- Raise Urgency : In this phase, organisation should evaluate the adoption urgency of changes and interact with worker in order to undertake further procedure.
- Create Direction for Team : As per this element, leader keep their best efforts in regard of directing the members of team for the adoption of change in most convenient manner. There main focus remains cooperation and coordination among individuals.
- Develop Vision : Organisation need to form the basic vision in regard of achieving their aims in certain period of time.
- Interacting for Buying in : In this phase, leaders consider the major opinions and view point of group members at the certain time in regard of attaining a proper vision of organisation cause of leading the proper vision through managing effective communication.
- Empower Activities : In this phase, enterprise inform, train and empower their public or people for the change elements and components in regard of meeting the outcome in more significant manner.
- Build Wins for Short Term : Short term achievement are more encouraging. So organisation require to form target that are short term for rapid effective result along with inspiration (Carrington, Deppeler and Moss, 2010).
- Don't let up : For reaching the certain easily for altering firm's aim on several aims and goals despite of certain target.
- Create Constant Change : Through implying the changes and make proper modification for better outcome within organisation.
Thomas Cook is a large tour operator organisation that are coordinate various activities and practices in regard of sustaining within enterprise and managing change in effective manner. Through managing activities, they can meet the proper outcome and resolve their issues in most efficient manner.
As per the above mentioned report it can affirm that leadership is very essential part of an organisation that can help in managing people and adopting the alternation within the working organisation. There are various framework and approaches that can undertake in regard of promoting and supporting modifications within the working organisation. There are various barrier and conflicts that an organisation while developing and making alternation. Through, adapting Kotter change model, they can implement the alternation in effective manner.
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