Unit 17: Understanding and Leading Change
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4.0 Introduction
This paper focuses on the changes the management and the leadership style in terms of the
company named Tesco. It is one of the largest merchandise retailers not only in UK market but
also in EU market. In this paper, the different barriers for change and their influence on
leadership decision-making discusses are discussed. This study also mentions some approaches
to dealing with change in term of Tesco. Finally, this paper evaluates leadership approaches that
can deliver organisational change effectively along with their advantages and disadvantages also
discusses.
4.1 Explain different barriers for change and determine how they influence
leadership decision-making in Tesco
Barriers for changes
Barriers indicate the limitations of drawbacks of something. The barriers are negatively affecting
the regular activities of a firm including Tesco. The barriers are mentioned below:
Lack of employee involvement
The lack of employee involvement can be considered as the main problem of changing the
management structure of a firm. This problem is also faced by the Tesco. Due to this barrier,
Tesco can’t implement their changing management in an efficient manner. The employees are
not feeling better, and also feeling uncomfortable with the new environment and culture (Smith,
2015).
Lack of effective communication strategy
Lack of effective communication strategy is another important barrier for changing management
structure of a firm. The management body of Tesco should not only announce the changing to
the employees but also gives information for positive impact of change (Christopher, 2017).
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Increased resistance to change
Due to the change in environment of the firm, most of people feel uncomfortable with the new.
For this reason, employees and other staffs are strongly resisted against the change (Linky,
2014).
A bad culture shift planning
Planning is an important part of management. But a bad culture of shifting planning is not well
for the firm. It will negatively affect the employees and bring barriers to change the activities.
The management body of Tesco should concentrate a long term planning and give proper
guidelines to the employees by which they don’t feel uncomfortable regarding the change
(Smith, 2015).
Unknown current state
The change of the structure of an organisation should be based on the current state. But it is very
difficult to bring change in the structure without proper analysing and understanding the present
status of the firm (Smith, 2015). Tesco management should evaluate and consider the current
state of the firm and take necessary steps to bring change.
Organization complexity
Due to complexity of organisation procedures and techniques of productions, it is very difficult
to bring change in the management strategy. It will negative affect the changes of the
management. Tesco management should evaluate the complexities of the firm and take necessary
steps to bring change (Christopher, 2017).
How barriers for changes influence leadership decision-making
Employee retention levels may drop
If the consideration of employee satisfaction of a firm is escaped from the changes of the firm, it
will bring difficulties and make the employees dissatisfied (Christopher, 2017). It will also affect
negatively on the leadership decision making.
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Drop in customer service
If the consideration of customers’ satisfaction of a firm is escaped from the changes of the firm,
it will bring difficulties and make the customers dissatisfied. If customers are dissatisfied, it will
reduce the profitability and liquidity as well as the brand image of the firm (Nwagbara, 2010).
Negative impact on productivity and performance
If a firm brings changes its environment, production procedures and others, it has positive and
negative effects. But most of the study supports that it has negative impact on productivity and
performance (Linky, 2014). Due to changes in the process and procedures, employees feel
uncomfortable and they are not familiar with the change. For this reason, it decreases the
productivity of the employees that also directly affects the performance of the both firm and
employees. The change also negatively affects the project team members’ performance that also
negatively affects the overall project. Tesco should concentrate on these factors for bringing
change on their business activities.
4.2 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making
Force Field Analysis can be regarded an analysis in which the change in drive and resist change
are get into equilibrium. In this analysis, one of the forces like driving forces must be strength or
other forces like resisting forces must be weakened at the time of changing. Force Field
Analysis is an important analysis to make decision of changing the management of an
organisation. It is a necessary task to find the method of Leadership within Tesco for brining
change.
Driving forces Resisting forces
Internal Vision Internal
Need to increase profitability plan/Goal: Fears of the unknown
Effective management and Current organisational structure
leadership Restructure Cost including training costs,
Available resources the current redundancy cost and restructures
Capability of investment Tesco costs.
External Express into External
Innovation of technology Metro store Obligation towards customers
Changing demographic trends in East Government legislations
Technological innovation London Commitments to stakeholders
High customer expectation National and organisational
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Industrial development
However, the pattern of culture and environment of the firm has an effect on the changing in
Tesco. The management of Tesco should consider the pattern of culture and environment of
them to bring change in the firm. The development factors also are considered by Tesco. The
cost factors also affect the change of the Tesco. Already, the Human resource department of
Tesco has spent lots of money to give training to the employees and other motivational forces.
([Link]). Tesco also makes expense for restructure development that has also an effect on
overall changing and profitability of the firm (Frost, 2018).
Before changing the overall process of a firm, it is very much needed to consider the interest of
employees and other parties. The key benefits of change are not only for the firm but also for the
interested parties like employees. After change, the manager should mange the change in a
proper method to reduce the barriers of the change. The project manager also acts an
communicator between upper level users and lower level users of the change (Joseph, 2018). The
change manger has to consider the all potential risks and uncertainties to reduce these and attain
the ultimate goals of the change (Webster and Webster, 2018). Due to a poor management of
change, the profitability and liquidity as well as the performance of the firm can be reduced that
also affect negatively on the timeline of the project.
Approaches to dealing with change in a range of Tesco
There are various types of approaches are found. But management should use those which help
to attain the goals and maintain the collaboration among all parties of a firm. In the following,
the four approaches are described that are used to get collaboration:
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Transformational Leadership
The style of Transformational leadership is considered as the type in which leaders inspire and
motivate the employees regarding the capability of them for attaining the goal of the firm. The
transformational leader drives the subordinates according to the plans and strategies to
accomplish the overall objectives. The transformational leader also gives empowerment and
drives the subordinates for attaining the predetermined performance of the subordinates (Bass,
2015). This type of leadership is necessary for all sectors of the firm to maintain the all activities
effectively and efficiently (Avolio and Yammarino, 2012). This style is also important for
running out the activities of the firm and Tesco can use this leadership style for bringing change
in their production and technological changes.
Participative leadership: Participative leadership can be defined as the style of leadership by
which subordinates can participate in decision making process. It is considered as one of the
useful styles of leadership of motivating and inspiring the employees. It also ensures the
satisfaction level of employees that also enlarge the performance of the overall company. Tesco
can use this leadership style for bringing change in their production and technological changes.
Transactional Leadership
In Transactional Leadership style, normally leaders are set up the activities at a predetermined
date and very much aware about the performance of day to day work of the employees. They
motivate the employees to do the regular tasks with ensuring quality for attaining the goal of the
firm. They like discipline and systemic way of doing work as well as motivate the employees by
giving rewards and incentives according to the performance of the employees. Tesco can use this
leadership style for bringing change in their production and technological changes.
Kotter’s 8 steps change model:
Step one: Create urgency
In case urgency, it is considered that the total part of the firm are receiving the change positively
and they asking for it. It is the first motive of the change in the firm activities.
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Step two: Form a Powerful Coalition
In the second step, I have to form a powerful coalition that means the convince people for
changing the structure of the firm. In this step, I have to get consent not only the employees but
also the key members of the firm.
Step three: Create a vision for change
Vision is important for the change. Without vision, everybody resist the change that reduces the
productivity and performance of the firm. For this reason, it should be very effective if the vision
of the change is identified.
Step four: Communicate the vision
When I set up my vision, it is my responsibility to communicate with vision effectively and
efficiently. The vision should be familiar with all within the firm and the process of attaining of
this vision is also known to all.
Step five: Remove obstacles
After changes, I should find out the potential obstacles that negatively affect the vision of the
firm. I should also find the potential solutions of potential obstacles and remove at all from the
change.
Step six: Create short term wins
In the step six, it is a wise decision to set up a short term win figure for a month or a year. In this
step, I should compare the actual and planned performance of the employees and takes necessary
steps where necessary. These remedy actions may help in doing well in my changing activities.
Step seven: Build on the change
According to Kotter, some projects may not be successful due to lack time combination. The
result of the change must be known to all as quickly as possible because it motivates the
subordinates to do well in the future.
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Step eight: Anchor the Changes in Corporate Culture
At the last stage, I would recommend that manager should anchor the changes in corporate
culture. This culture is considered a part of the firm. My corporate culture evaluates the
performance of the employees regarding the vision of the firm.
4.4 Evaluate the extent to which leadership approaches can deliver
organisational change in Tesco
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Transformational Leadership
The advantages Transformational Leadership are numerous. It increases the employees’
innovation and creative power and also gives knowledge about the working process in a
challenging environment. Leaders have capability to maintain the followers effectively and
efficiently that helps to attain the goals of the firm. However, Transformational Leaders need
adequate orientation about the nature of people and the nature of environment. But due to lack
orientation, leaders can’t focus the ultimate goal of the firm that negatively affect the
organization for a longer period of time.
Transactional leadership
Firstly, the Transactional leaders set the activities and aware about the performance of day to day
work of the employees. This leadership technique helps to motivate the employees by giving
rewards and incentives according to the performance of the employees that helps to attain the
goal of Tesco. However, Transformational Leadership style has negative impact on the
satisfaction of employees because leaders give pressure on the employees to maintain the regular
activities of the firm.
Participative leadership
In the system of participative leadership, subordinates can participate in decision making
process. It helps to motivate and inspire the employees and also ensures the employee
satisfaction. The employees do not have enough knowledge about the decision making system
that is the main disadvantage of the participative leadership.
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Kotter’s change management theory
The Kotter’s change management theory follows some steps that create more effective the
leadership process and the changing activities. It ensures the accomplishment of all activities
with an efficient manner to accomplish the goal of the change. However, this process can’t give
the opportunity to escape one process to another when necessary and it is a time consuming and
costly method of changing.
Conclusion
The study has represented the changes the management and the influence of the change on
leadership style and decision making of Tesco. Tesco is one of the largest merchandise retailers
in the not only British market but also all over the world. This study discussed the different
barriers for change and their influence on leadership decision-making discusses. This assignment
also mentioned some approaches to dealing with change in a range of Tesco. In the last section,
the assignment evaluated the leadership approaches that can deliver organisational change effectively
and also their advantages and disadvantages. This study reveals that Tesco should concern about the
barriers, leadership style, and employee satisfaction at the time of change.
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