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Impact of Change on Operations and Strategy in an Organisation

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  • Unit No: 17
  • Level: High school
  • Pages: 17 / Words 4329
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 631
Question :

Topic- Understanding leading change

word limit is 2000 - 2500 words

Learning outcome:

LO1. Compare ways through which change impacts on a firm’s operations and plan of action.

LO2. Assess the drivers of change which influences organisational behaviour.

LO3.  Find how barriers to modification influence leadership decision-making.

LO4 Utilize extent of leadership approaches to change initiative.

Scenario

MARKS AND SPENCER-

As per the chairman of M&S, Archie Norman, the company has no ‘God-given right to stay in business. While addressing the investors at Wembley Stadium, chairman cleared that M&S does not have a God-given right to exist although being much loved brand of British. One of the retail veteran warned that M&S is standing at burning platform after being slow to develop over last two decades.

he retailer is not resting on its 134-year old laurels.  Chief executive Steve Rowe along with the Norman is fearless to upset the apple cart if it means to secure a future for one of the UKs famous High Street names and an employer of 85,000 in the digital world of retail.

HOUSE OF FRASER

House of Fraser has been in the headlines as it is the struggling retail giant as it was entering administration which was bought out by Mike Ashley’s Sports Direct mere later.

It is unclear if Ashley can raise the 169-year-old company. House of Fraser’s who have 17,500 employees, including 11,500 concession staff, are concerned about the future. It also told customers that gift cards and vouchers will be invalid online or instore.

The chain had marked 31 of 59 branches for closure after the running cost have become unsustainable. The chain also employs 17,500 people across the UK and Ireland.

Activity 1

Utilizing the scenarios of Marks and Spencer and House of Fraser, you are asked to research and compare on the impact this large-scale change has upon these two operation and strategy of organization.  Present an essay.

The essay should include the following:

  • Comparison of the impact of change on organizations operation and strategies. Assess the various drivers for change in all the given examples and the types of organizational change which affected.
  • Measure the ways of internal and external drivers that affect leadership, team and individual behaviors of Marks and Spencer and House of Frazer.
  • Assess measures to minimize negative effect of change on organizational behavior.
  • Use Continuous Improvement model, Systems theory, and the Burke-Litwen Model to measure the response to organizational change.
  • Give conclusion and recommendation along with justifications for planning for change and utilizing Bohner and Arnold change impact analysis.

Activity 2: Barriers to change and leadership’s role in change management

Scenario

Leadership Challenges at Nokia.

Leadership is leading and not just holding and defending on to the things. Moreover, equal success is that leaders are surrounded by people who want reinforce status quo and protect from negative news, views. The next thing is to develop culture where individual argues and question for different way of doing business.  Here, organization get it the trouble as organization has been developed in such a way that falls in CIA trap which is Complacent, Inward Focused and Arrogant.

  1. Nokias reliance on management philosophy led to overtake by Apple and Samsung.
  2. Strategic agility assists to structured chaos.

Nokia’s top management was formed to meet new competitors with an ‘agile’ mentality and willingness to keep the firm in a constant state. Leadership role in success and failure is of importance.

Nokia has employed as consultant. The goal is to aid the leadership at Nokia to be prepared for the barriers when the organizational restructuring takes place. Required to:

  1. State barriers (internal and external) for change and find how they influence leadership decision-making in Nokia.
  2. Use force field analysis to examine driving and resisting forces and how they determine decision-making
  3. Assess usage of force field analysis of meeting Nokia’s objectives.
  4. Utilize leadership approaches such as Kotter’s Eight Step Model, Kurt- Lewin’s change Model and Situational Leadership to deal with change.
  5. Measure leadership approaches to organizational change effectively applying models and frameworks.
  6. Assess the effectiveness of leadership approaches and models of change management.

Learning Outcome

Pass

Merit

Distinction

LO1 

Comparison ways in which impacts change on an organisation’s operations and strategy.

P1.

Comparison of organisational examples of impact of change on an organisation’s strategy and operations.

M1

Measure the various drivers for change with examples and types of organisational change which affected.

D1  

Give conclusions and recommendations for planning for change and apply change impact analysis.

LO2 

Assess determinant of change drivers on organisational behaviour

P2 Assess the ways (internal and external) drivers of change that impact leadership, team and individual behaviours.

P3 Assess measures to minimise negative affect of change.

M2

Apply theories to measure response to organisational change.

D1 Give conclusions and recommendations for planning for change and apply change impact analysis.

LO3.

Ascertain how change barriers determine decision-making in leadership

P4

State change to barriers and find how they influence leadership decision-making.

M3

Apply force field analysis to driving and resisting forces and display how they influence decision-making.

D2 Evaluate the usage of force field analysis.

LO4

Utilize leadership approaches to a change.

P5

Use leadership approaches to deal with change.

M4

Assess the extent to which leadership approaches can deliver organisational change.

D3 measure the effectiveness of leadership approaches and models of change management.

Answer :
Organization Selected : Marks and Spencer

INTRODUCTION

Organisational change termed as a modification and alteration within an organisational workplace structure. If an organisation get duly affected by any of the external and internal factors then it is signified as organisational change. It is one of the most important component that stimulate organisation towards more competitive advancements (Alvesson and Sveningsson, 2015). Organisation by having adaptable nature towards its policies, strategies, working climate and structural relationship modern corporates can effectively able to adapt changes in a well defined manner. In this report two activities are covered. In first project discussions has been conducted on House of Fraser and Marks and Spencer while activity 2 has been conduced in Nokia. In this report formative discussions has been made on, impact of change upon operations and strategy of each of the organisation along with different drivers of change. Along with this, report include ways in which external and internal drivers of change affect individual and team behaviours and leadership with House of Frazer and M & S. Further this project include measures as to reduce negative impact of change. In addition to this, application of Burke-Litwen Model, continuous improvement model and system theory is being covered in this report. Lastly, recommendation is provided to company.

Activity 1

P1 Evaluate Measures that can be Taken to Minimise Negative Impacts of Change on Organisational Behaviour

Change is defined as one of the most important process of an organisation despite of their size and scope that lead them towards gaining high competitive advancements. It has been evaluated that change is having positive as well as negative impact over functioning of organisation. In order to deal them in best effective manner and reduce negative impact of change it is essential for Marks and Spencer to undertake significant strategic measures. There are some of the efforts mentioned below that can be undertaken by company:

  • It is essential for Marks and Spencer to make sure that there is continuous market researching in order to effectively evaluate current trends and measures within business environment. With the help of this company can effectively able to adopt changes in proper time frame and further communicate the same to employees as to ensure their proper support in a well defined manner.
  • Marks & Spencer is required to carry out training as to provide effective knowledge to employees for the change which is going to be implement by entity. Main motive of these training sessions must be to effectively prepare employees to cope with instant change and handle those situations without getting panic and execute the change in best effective manner.

P2 Compare Different Organisational Examples Where There has been an Impact of Change on an Organisation’s Strategy and Operations

Organisational structure is defined as a framework that defines different measures within which activities of organisation takes place as to fulfil goals and objectives of entity in a well defined manner (The changing state of Retail. 2019). Some of the activities include supervision, responsibilities, roles and duties. Along with information flow is being covered in this.

House of Fraser and Marks and Spencer is the selected organisation as per according to the given case. House of Frazer operate their functioning in retailing sector and is a British department store. Company was founded in the year 1849 while having headquarter in England , U.K. Products of company include home ware, fashion clothing, gifts, cosmetics, toys and more. While Marks and Spencer is a British multinational organisation operating their services in retailing sector. Company was established in the year 1884 and have its headquarter in London, United kingdom.

Mentioned below a formative comparison among Marks and Spencer & House of Fraser is being defined below:

Basis

Marks and Spencer

House of Fraser

Technological Change

As to make significant modification in the process of ordering, entity is undertaking advantage of point-of-sale (POS) system. Along with this, in order to have regular check on latest design availability of products, organisation adopt personal digital assistant. In addition to this, company offer online shopping facility to customers in order to provide them ease while purchasing.

 

As to offer their products with latest design in time effective framework company undertakes use of innovative technologies (Latham, 2013). For this entity make reduction in defects with an aim to increase overall organisational profitability. Further as to maintain long term sustainability in present high competitive marketplace entity is required to make significant upgrade in their technology as per according to dynamic environment (Lillard and Al-Suqri, 2019). In addition to this, it has been identified that without having online sites, entity can lead towards shortfall in their overall profitability ratio.

Technology Adopted

Marks and Spencer enforced mobile augmented reality app as their promotional tool within their 959 stores around UK (Marks & Spencer reveals technology transformation programme. 2019). In addition to this, entity undertakes advantage of “location intelligence” technology as to easily track down footfalls within their stores.

Organisation take use of different form of software's as to ensure effective organisational performance. As per in accordance with current technological change organisation implements numerous form of software's like performance management software and more.

Structural Change

Company opted for vertical integration with their manufacturers as to introduce new products in time effective manner. It has been analysed that Online website make significant boost in overall sales of organisation in U.K. In addition to this, entity adopted control policy in order to manufacture organisational products with high quality. Further organisation made formative collaboration with California-based Fetch Robotics in order to undertake advantage of artificial intelligence in order to duly manage inventory stock in a well defied and effective manner (Gersch and Franz 2019).

It has been analysed that as to make significant increase in overall sales and profitability of organisation House of Fire make expansion of their business operations in European countries in which they are not yet established. Man reason to expand their business is to keep products prices at low cost as to duly attract attention of customers in a well defined and effective manner.

Differences in Organizational Approaches to Change

As per the given report, this has been identified that both of the mentioned entities operates their functioning within same retailing industrial sector. Apart from that it has has been determined that both Marks and Spencer & House of Fraser face different types of issues within their organisational structure. It has been identified that, Marks and Spencer effectively ensure flexibility within their design (Cruz Roche, Romero and Sellers-Rubio, 2019). In addition to this, they are having strategical agreements with of domestic manufacturers in order to ensure timely delivery of products as well as services. In order to ascertain success it is essential for organisation to effectively evaluate market trends. While, House of Fraser offer their products as well as services with lower price range as per compared to their competitors. For this organisation undertakes use of “cost leadership”. Further it has been analysed that within entity there is a separate team those who engage in the process of evaluating current prevailing trends within industry.

Similarities in Organizational Approaches to Change

It has been analysed that both of the companies deal within same industrial sector, this indicates certain form of the similarities among them (Kotter, 2012). Marks and Spencer and House of Fraser offer wide range of products and services to customers with an aim to make significant increase in organisational profitability. In addition this, it has been evaluated that while operating their functioning in same segment, trends as well as approaches are being followed within organisation are same most of the time. Along with this, both of them have same aim which is to ensure long term sustainability by offering qualitative products as well services to customers as to provide them effectively satisfaction.

M1 Assess the Different Drivers for Change in Each of the Given Examples and The Types of Organisational Change they have Affected

Change lead towards improvement, it is essential for manager to adopt diverse range of change smoothly in organisational structure. It has been evaluated that changes within internal and external environment constantly lead towards affecting each and every business activities. These changes can takes place at individual and at either at organisational level. It has been analysed that both internal as well as external factors acts as essential element with the proper understanding of which managers can effectively able to gain wide range of opportunities. Mentioned below the drivers of change that facilitated both the firms to bring about the changes is being defined:

Technological advancements:

Technology is changing with its fast phase which is required to be adopt by organisations in order to serve their customers at best (Pantano and Dennis, 2019). This factor significantly facilitate both of the retailing organisation. In order to offer high quality products as well as services entities are required to implement technological advancements in their workplace structure as to ensure high competitive advancements. In addition to this, with the hep of strengthening IT department both of the retailing entities can execute their organisational functioning in an advanced level that further lead them to gain high growth rate in respective industry.

Rivalry:

This is an another factor that duly facilitate both of the companies to bring structural as well as technological change in their workplace structure. In this it is essential for organisations to effectively evaluate strategical policies and measures that has been undertaken by their rivals and then take use of advanced level of strategies as to stay one step ahead of their competitors. This significantly aid companies to ensure competitive advancements and potential growth in marketplace.

D1 Draw Conclusions and Recommendations with Valid Justifications for Planning Effectively for Change and Applying Change Impact Analysis

In order to effectively manage change, it is essential for management undertake use of effective change management. With the help of this, company can effectively able to ensure high growth opportunities and profitability. Mentioned below there are some certain measures that are required to be implement by both of the entities as to manage their operations in a well defined manner:

Strong Leadership:

In order to make employees compatible with change, it is essential for leaders of both the entities to ensure that there new skill development undertake place in organisational workplaces structure on continuous basis. This will help organisation to manage complexity and uncertainty in a well defined manner while further providing formative direction to employees.

Monitoring staff behaviour and attitude:

In this Marks and Spencer and House of Fraser is required to engage their employees in the change process from the starting to end phase. In addition to this, they are also required to formulate effective communication channel. Further it has been evaluated that, entities are required to create a work environment as to direct employees towards change in best effective manner.

By undertaking all these measures into concern, entities can effectively able to implement change within their structure and can further stimulate employees to adopt these changes in a well defined manner.

Also, Read:- Evaluation of Organisational Behaviour

P3 Evaluate The Ways in Which Internal and External Drivers of Change Affect Leadership, Team and Individual Behaviours Within an Organisation

This has been evaluated that organisational change is one of the most important element as it is inevitable. With the help of change entities can effectively able to stimulate their growth. In this manager hold the responsibility to effectively identify current prevailing changes and formulate plans. This effectively benefit companies to ensure their long term sustainability in a well defined manner and further gain more competitive advancements against their competitors. It has been identified that by undertaking advantage of change entities can effectively able to gain advancements from wide range of opportunities that are prevailing in marketplace. Apart from that, it has been identified that dynamic changes also impact upon working of organisation in number of ways. It has also been seen that lots of changes makes most of the employees to resist change. Thus, in order to effectively implement change within workplace structure it is essential for organisation to effectively implement their strategies, policies as well as processes as to ensure organisational growth in best effective manner:

Drivers of change-

It is defined as a inclusion of elements that lay down impact upon overall functioning of organisation or industry (Pantano and Vannucci, 2019). It has been signified that participants of industry are being significantly pressurised to make significant modification in their activities that lead towards change within organisations. Drivers of change can undertake within both internal as well as external environment. It further impact upon leaders and team, individual behaviour within organisational structure. In order to simulate change in best effective manner and and ensure successful implementation of change it is essential for leaders to undertake well effective decision-making and further make best effective plans, procedures and policies in order to strengthen resources of entity in a well defined manner.

Internal factors and their impact:

Internal factors involves those factors that are mainly under control by managers within entity. Mentioned below there are some certain form of internal factors are being defined below:

Organizational culture-

Organisational culture include factors related to traditions, values, perception and believes of the personnel those who are performing their work in organisation. This lead towards impacting upon employees employees behaviours. It is essential for organisation to have best effective strategies as well as policies as with the help of this company can ensure effectively employee turnover, productivity and profitability and more (Cummings and Worley, 2014). Within House of Fraser working premise of it has been seen that due to the presence of Corporate Culture Favouritism, employees feel discriminated on the basis of their skin colour. While on the other hand, in Marks and Spencer good relationship with employees depicts employee retention ratio in a best effective manner.

Poor Delivery-

It has been seen that companies face issues that are mainly linked with delivery and quality of services that further lead towards impacting upon organisation probability ratio in all of their outlets. In relation with Marks and Spencer, this has been evaluated that customers do not get their delivery in time of their purchased products via online store. The main reason behind this is improper way of supply chain management. In addition to this, it has been evaluated that House of Fraser offer satisfactory products as well as services to customers as to maximise satisfaction level of customers in a well defined manner.

Financial Management

Finance termed as am life blood of each and every organisation despite of their size and scope. Thus, it becomes essential for an entity to duly manage their funds in well effective manner as to undertake all other activities in best effective manner. With the proper management of funds an organisation can effectively able to conduct their other activities that are related to purchase of raw materials, new assets etc. Within Marks and Spencer it is essential for company to ensure that they produce products as well as services by maintaining product quality in lower rate base. While on the other hand, by making large base of investments organisation can effectively able to ensure long term returns and can further able to make significant increase in overall sales base .

External forces and their impact

In this elements of external parties impact upon functioning of organisation. In addition to this, it is not under control of leaders as well as manager of company (Cummings and Worley, 2014). Thus, it is essential of top executives of organisation to formulate well effective plan as well as policies in order to overcome pressure of external forces upon functioning of organisation.

Technological Change-

Technology is changing at its fast rate that affect organisational operations in number of ways. There are lot of innovations as well as advancements that undertakes in external environment. Thus, it becomes essential for entities to take advantage of updated technologies in order to ensure more competitive advancements. In context with both Marks and Spencer and House of Fraser it is essential for both of the companies to make significant improvement in their technology and upgrade them in regular manner

Globalization-

It involves diversification as well as expansions of operations of organisation at international level in order to increase profitability of entity in a well defined manner. It has been identified that with easy entrance there is presence of high competition. In order to ensure effective growth resources are required to be maintained in a well effective manner. In relation with Marks and Spencer, it has been analysed that company gained effective competitive advantage due to their popularity. While on the other hand House of Fraser does not have effective recognizationa as they are only confined to United Kingdom marketplace.

Impact on leader, individual and team

Leader

A leader must examine and interpret the changes and their effect on the manpower. They will change their policies by adopting a suitable leadership style as per the situation.

Individual

Employees have individual tasks and resist changes when it occurs in the organisation. They should be motivated by the leaders to accept changes and work for increasing their productivity.

Team

Manager of team is responsible for providing direction. Hence, they must focus on rearranging their guidelines for team members which would be accepted by all.

M2 Apply Appropriate Theories and Models to Critically Evaluate Organisational Response to Change

In order to make significant reduction of the negative impacts of each and every change upon organisational functioning, company undertake use of PDCA model. Mentioned below stages of this model is being defined below:

PDCA Model

Plan- It is defined as initial stage of PDCA model in which organisation indulge in the process of evaluation of main cause of issue. In order to effectively conduct this function company undertake the process of market research. In context with, Marks and Spencer it as been identified by their management is that there are significant number of technological changes prevailing in within global retail environment. In order to overcome this issue entity is required to prepare themselves with the help of well defined strategies as well as planning and offer effective training sessions as to make employees compatible with change. This will lead entity to ensure effective growth while dealing with change in a well defined manner.

Do- formulation of well defined and effective plan for probable constants during the time period of change, while next stage is related to best effective execution of planning in order to deliver positive outcomes for Marks & Spencer. In this, Marks and Spencer brought structural as well as technological changes within their organisational structure. With the help of this stage company can make reduction in their wrong decision making aspects.

Check- This phase within PDCA state a contract among desired and actual performance with an aim to significantly control activities in a well defined and effective manner. In this, with the implementation of techniques related to monitoring effectively benefit Marks & Spencer to have regular check an evaluation of both the changes effectiveness.

Act- At this phase of PDCA model there is a documentation and reporting of change in being done. In this changes are mainly put in order to use practically (Hintz and Bahia, 2013). Act stage offer proper guidance to Marks and Spencer in relation with changes success and failure.

As per the discussion it has been determined that, all the mentioned stages in PDCA effectively offer benefit formative assistance to Marks & Spencer as to make reduction in negative impact which is duly linked with change.

D2 Draw Conclusions and Recommendations with Valid Justifications for Planning Effectively for Change and Applying Change Impact Analysis

Organisational factors significant posses the power to effectively influence overall business environment in many different manner. These elements exist in internal as well as external environment. This bring organisation to undertake use of effective strategies as to deal with these challenges in a well defined manner. Changes also affect probability as well as growth of organisation. Thus, it becomes essential for Marks and Spencer and House of Frazer to undertake use of Bruke Litwin Model in order to effectively overcome negative impact of change upon organisational functioning.

In the year 1992, Bruke Litwin developed this model. This model was developed by Litwin in order to understand various parts of an organization. This model is used by various companies in order to know about the affected areas and their interrelation.

External environment-

In external environment there are different types of factors such as competitors, markets, legislation etc. In this it is important for organisations to effectively understand external environment factors impact upon organisation functioning (Aslan and Reigeluth, 2013). Marks and Spencer and House of Fraser aim towards providing qualitative qualitative products and services to their customers. For this, both of these entities are recommended to frame plan as well as strategies in order to overcome the impact of external factors upon activities of organisation.

Mission and Strategy

Every entity have their own set of mission and vision that are being established by them as to achieve organisational goals in best effective manner. As Marks and Spencer and House of Fraser conduct their functioning in retailing industrial segment with a common aim which is to fulfil requirements and demands of consumers in a well defined manner. For this, recommendation is being given to organisations in respect of taking use of strategies and policies as to fulfil organisational mission and vision in a well defined manner.

Leadership-

It has been analysed that behaviours and attitudes of sub-ordinates get influenced by leaders. Leaders act as key element in a team. Thus, they are required to motivate and increase morale of employees in a well defined manner. As both House of Fraser and Marks and Spencer operate their functioning in retailing organisation thus, it become essential for both of the entities to provide effectively guidance to their employees. For this, they are recommended to use different types of leadership styles and policies as to ensure sustainable stability in this global competitive environment.

Organizational Culture

It refers to the beliefs and values which exist within the organization. Cultural changes evolves over the time period as a result of various different changes in the organization. The manager of the companies should interpret and keep in mind the desired state for the company. This will be in terms of how they expect employees to behave within an organisation.

Structure-

Strong changes of external environment lead organisation to change their structure. In order to implement effective changes restructure and re-engineering is being done by entity that duly affect responsibilities, relationship etc (Anderson, 2016). In this, it is essential for both Marks and Spencer and House of Fraser to effectively posses understanding of all the factors that affect organisational operations. In addition to this management of company is being recommended to take advantage of strategic opportunities in order to fulfil requirements and expectations of consumers in a well defined manner.

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