Major Impact of Change on Organization Strategies

Task 1

P1. Comparison of different organisations and the Major Impact of change on their strategies and operations

Change management is an effective business approach that requires modifications and alterations in the firm to maximize opportunities easily. It considers different policies, working approaches, rules and the organisation's culture. Through this management, a firm can easily build a proper business environment for employees and customers too. Operational and functional approaches always require positive changes by accepting impactful challenges from the target market. For this, managers of firms make effective strategies to adapt these transformations easily to the working environment (Anderson and Anderson, 2010). A successful organisation always implement several changes to getting higher competitive advantages. NEXT is a leading clothing brand that provides effective services for men, women and children both groups. This organisation faces tough competition from several business firms. Brief details of some organisations as -

NEXT- NEXT is a multinational British clothing brand that also provides effective services in footwear, home products and branded clothes. This organisation was established in the year of 1864 by Joseph Hepworth. NEXT has around 700 stores in several countries, of which major stores are in the UK and others are in different continents. This firm provides quality products and services at affordable cost to their customers. The firm uses different promotional tools to attract customers easily toward their services. NEXT has an attractive logo that makes it a unique image in the target market. The main objective of this organisation is to provide affordable service and products to their customers.

H&M- H&M is a Swedish multinational clothing retailer brand. This organisation was established in the year of 1947 by Erling Persson. Hennes and Mauritz is a fast fashion for men, women and teenagers. This company operate their 4500 stores in approx. 62 countries. The firm has around 1,32,000 employees who provide effective and quality services to target customers. The firm uses different promotion techniques by online services to operate effectively in different countries (Bingham and Main, 2010). Through this, they build a large number of customers with their brand and its products. H&M adopt several changes in their business policies and procedures to get connected with several customers and grab different opportunities.

Both organisations are dealing in the retail industry but their working criteria are very different to each other. NEXT and H&M are the two largest clothing brands but the major differences between them are -

P2. Internals and External Drivers of Change That Affect Leadership, Team and Individual Behaviours

For a business organisation, it is required to make changes and alterations in operational and functional activities to achieve desirable growth and income. Through this management firms can attain their predetermined targets easily. NEXT is a multinational clothing brand so for them it is required to make appropriate changes in their products and services on the basis of customer's requirements and needs. Through this, they can build strong relationships with them to get long-term achievements and benefits. In this process, internal and external drives of changes have a major impact on key employees and their working abilities (Doppelt, 2017). For this employees of NEXT need to analyse several factors that can affect negatively their business approaches. After analysing such elements, management and managers are required to make an impactful strategy to take proper control of them or minimise their negative impacts. These factors can be:-

Internal drives of changes -These are pre-existing elements of a firm that are affected by several changes in business activities. Internal factors of change are controllable so that a firm can easily recover from its impacts. Different factors of internal drives are -

• Strengths: NEXT is a well-known clothing brand that provides effective and quality services in several countries. Basically, clothes and their quality are major strengths of a firm that help to make their effective image in the target market. Changes in product demand can affect directly teamwork and individuals because these are the only elements that help to maximise product demand in the target market.
• Weakness: NEXT Implement advanced technology in their business activities but they do not have well-trained and experienced staff who can understand the major impact of technological change in their business activities. Sometimes these factors affect negatively leadership approaches, teamwork ability and individual performance as well. For this, they need to use a training process in their business approaches to properly implement advancement in their activities (Fagerstrom and Salmela, 2010).
• Opportunities: For a business organisation, it is required to make positive changes in these activities to get higher opportunities easily. For this leader of the firm needs to provide appropriate direction to their workforce to get such opportunities easily in their business approaches. Teamwork of individuals also can be a beneficial move to make desirable alterations and modifications in business approaches.
• Threats: NEXT faces threats from competitive organisations and other firms that provide similar services to customers at the cheapest price. These activities impact negatively on operational and functional activities. For this leader and individuals of the firm need to make an impactful strategy to reduce its negative impact by managing their own product image and goodwill in the target market.

External drives of changes - These factors are out of the control of the business because they do not exist in the firm. For them manager needs to make impactful planning because these factors are hard to control easily. These can be:-

• Political factors: These elements are basically related to governmental policy and regulation that they make for several organisations. For this leader of the firm needs to analyse its negative and positive impact because these are mandatory to implement in operational and functional approaches. Team teamwork of individuals provides higher benefits in order to impact such drives (Fullan, 2014).
• Economic factors: These factors are related to economic changes and alteration. All these factors have a direct impact on an organisation's policy and procedure as inflation, interest rate, monetary policy, exchange rate, and growth rates. These factors have a direct impact on the business procedures so the leader of the firm needs to implement an effective policy that helps NEXT survive in such situations easily.
• Social factors: In the retail industry, these factors have a major impact on several organisations. For NEXT, it is required to analyse customers and market demand to provide them with quality products. In this procedure leader needs to make a strategy to analyse market strategy and employees need to implement them to get several opportunities from this. Changes in market demand aid in making effective changes to rebuild a new image easily (Hallinger and Heck, 2011).
• Technological factors: NEXT, is required to implement advanced technology in its business process to achieve desirable outcomes and growth. However changes in technology can negatively on firm, so this leader needs to provide training to their employees for implementing such ideas in their business procedure.

P3. Measures for minimising negative impacts of changes on organisational behavioural

In a business organisation, it is required to make timely changes and modifications to adopt new ideas and creativity easily. NEXT is the most popular clothing brand that provides effective services to customers on the basis of their requirements and needs. For them, it is required to make effective alterations in their business procedure to get higher competitive advantages. This modification has both negative and positive impacts that affect business activities. Positive impacts provide an opportunity to maximise business structure and get desirable income while negative impacts are not bearable. So for this management, NEXT needs to manage organisational behaviour properly to minimise the negative impact of change as -

• Research: This is the most important factor that an organisation require to manage. It is all about the proper analysis of each and every element of change that can affect the operational and functional activities of the firm. Through this, the manager of NEXT can make an impactful strategy to implement positively these changes in the firm and minimise their negative effects easily. It helps to analyse each and every marketing element that can affect negatively the firm (Malenfant, 2010).
• Training: These are the most important factor that helps to maximise an organisation's profitability and productivity. NEXT is a well-known clothing brand in which a large number of employees are working. Management and manager of the firm, it is required to provide them with effective training and learning to develop their interpersonal skills and working approaches. Through this, employees understand several aspects that how to implement changes positively in the firm. Effective training always aids in minimising the negative impact of external drives because a trained workforce implements several challenges easily (Parsons and Cornett, 2011).
• Technology: For a business organisation, it is required to adopt advanced technology in their business activities because through this NEXT can easily make effective modifications and changes in their business activities. A firm always requires several changes through innovative ideas and creative thoughts. NEXT is a retail organisation that provides quality clothes and other products to customers. Changes in Trends and fashion have a major impact on customer's choices and demands, so NEXT needs to implement those factors that help to adopt quick changes in the firm. In this process, advanced technology provides several facilities to make desirable modifications in the firm and reduce the negative impacts of changes in organisational behaviour.
• Healthy relations with employees: In a business organisation, employees of the firm are known as their key strength who provide effective services in order to achieve the target objectives and goals of the firm. So for this management requires to build strong and healthy relations with their employees to build a mutual understanding while making any changes in the firm. Through this, they can resolve issues and problems from the firm and maximise profitability and growth. All these activities build a path of success for NEXT to achieve its objectives.

Task 2

P4. Different Barriers to Change and Their Influence on Leadership Decision-Making

A business firm, it is required to adopt new ideas and creative thought to attract several customers easily toward their services. In this process, change management helps to implement innovation in the firm and its business activities. NEXT is a well-known clothing brand that provides its products and services in several countries. In this firm leaders and managers provide their effective contribution to attain future targets easily. The manager of the firm is the creator of target objectives and goals while as leader manages activities effectively to attain them at exact timing. A leader is an individual who can implement changes easily in the firm (Salmela, Eriksson and Fagerstrom, 2012). So the barriers to change influence in decision-making approach of leadership. Major issues for changes are -

• Lack of employment involvement: This is the most important factor that has a direct impact on the decision-making process of leadership. In an organisation, it is required that all the employees work together to achieve business objectives and goals easily. In this process leader needs to make proper involvement of them to maximise their productivity and working skills easily. Lack of employee involvement has a negative impact on the decision-making process of leaders. So for them, it is required to provide equal responsibility to their workforce in order to positively implement changes in the firm.
• Lack of communication: In a business organisation, it is required that employees communicate positively with each other. Through this, they can resolve issues and barriers of each other. All these activities assist in building a positive working environment in the firm to get higher competitive advantages easily. It is the responsibility of the leader to build effective communication between their employees to understand their own issues that require resolution at a time. Through this, leaders build confidence in their employees to convey their ideas in front of managers and leaders.
• Organisational cultural planning: In an organization, it must be required to have a positive working environment because it has a major impact on the performance of employees and organisational behaviour as well. Through this, leaders manage the focus of employees toward future goals and objectives.

Force Field Analysis:

• Step 1. Proposal for change: This is the most important stage that determines the purpose, goals and objectives of changes in the firm.
• Step 2. Identify forces for changes: This step determines drives of changes that can be internal and external. For NEXT, it is required to identify those factors properly to manage strategy according to them (Suchman, 2011).
• Step 3. Identify force against changes: In a business organisation, it is required to make proper involvement of employees while making any modifications and changes. For this, they need to provide proper responsibility to them on the basis of their skills.
• Step 4. Assign scores: In this process firm needs to analyse the impact of changes and business requirements to overcome them properly.
• Step 5. Analyse and apply: After examining all business activities, changes and their impact I am required to implement them properly in the firm to get maximum profit easily.

Task 3

P5. Different Leadership Approaches for Dealing with Change Within the Organisation

In a business organisation leaders play a most important role on the basis of different situations and working needs. Their main objective is to provide appropriate guidelines and direction to their workforce to achieve target goals easily. In NEXT, managers and leaders always influence employees to adopt new ideas and technology to maximise their productivity easily. There are different leadership styles are given below on the basis of their behaviour and working approaches -

• Autocratic style: These types of leaders are basically working in proper manner. They analyse each and every situation properly and collect data on the basis of employees' performance and their skills. They are the most effective personalities who manage each and every situation in proper way by their abilities and working approaches.
• Laissez-faire: These leaders are very practical in their working approaches they believe in providing responsibility to employees for maximising their working skills easily. This type of leader uses different aspects, methodologies and tactics for resolving any kind of issue in the firm.
• Democratic leadership styles: This is a most effective leadership approach in which the leader provides opportunities to each employee to participate in each situation. Through this, they can achieve target goals and objectives in an effective manner. For NEXT, it can be a beneficial approach for leaders while adopting changes in the firm (Thomas, 2013).
• Transformational: These leaders are very different to others because they analyse each business transaction and activity to get maximum opportunities easily. Through this, they have strong control over each and every business activity.

Conclusion

As per the above report, it has been summarised that changes are required in a business organisation to get different opportunities easily. For this management and managers of the organisation are required to analyse drivers of changes to make an impactful strategy for this. Through this management firms can attain their predetermined targets easily. In this process, internal and external drives of changes have a major impact on key employees and their working abilities. After analysing such elements, management and managers are required to make impactful strategies to take proper control of them or minimise their negative impacts. A successful organisation always implement several changes to getting higher competitive advantages.

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References

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