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Business is basically one sort of organization which is operated through applying effective and efficient managerial system. When we are not usually happy with the current system of any particular business system, then we want to make shift to the expected and desirable stage. It is said that, everyone does not resist change but they resist strictly to be changed. In this study, we are going to work on a selected organization about how to plan and implement the proposed any particular change by the change agents or actors. The selected organization is Tesco which is one of the biggest British multinational groceries and merchandise. It basically produces and sells food, clothes, operate bank etc. (Tesco.com, 2018). In this study, we are going to discuss about various aspects related to planning and implementing the change with business.
Describe the Internal and External Factors that contribute to the need for Change in Organizations
- Internal factors contributing to change: Internal factors refers to the internal business environment which create sense of urgency to change. The factors are described in below in the organizational context of Tesco.
- Organizational mission statement: Organizational intended mission statement of any particular organization like Tesco lead to make change within the organization. As the main business mission of Tesco is to create a better position through providing better service to the customers (Gragg & Cassell, 2009). So, this sort of mission led the organization to be strategic.
- Organizational vision statement: The organizational vision of Tesco is to make this company super giant in terms of quality service delivery and product sale. So, this vision leads the organization to innovate new things in terms of operational management.
- Resources: Internal business resources like human, technological and financial resources define what sorts of changes are needed and realistic (Haller, 2010).
- External factors contributing to change: These sorts of factors are derived from the external environment of any organization like Tesco.
- Economic: The economic factor or the current market situation persuade any particular organization to bring change (Venkataraman & Pinto, 2011). For example, if the current economy of any country is developed in terms of per capita, the Tesco have to develop world standard or costly food products.
- Technological: Technological factors like social media usage, people technological sense urge to bring positive change in products like developing new feature in Tesco mobile.
These sorts of both internal and external organizational factors lead to the matter of bringing new change within the environment.
Analyzing different Types of Organizational Change
Different types of changes in terms of Tesco are analyzed in below.
Different types of organizational changes:
- Organizational structure: In terms of organizational management structures changes can be brought. For example, Tesco can be more convenient in terms of its flat management structure because it deals with the corporate activities.
- Procedural change: In the form of organizational service delivery system or the product distribution system, Tesco can bring positive change. For example, taking online order and delivering products through courier.
- Staffing change: Tesco can train and develop the staffs and employees to make them competent to the new brought change.
- Rules and regulations: Organizational bureaucratic complexities and their procedural burdens should be minimized (Wilson, 2009). For example, enhancing new and smooth communication channel through social media.
These are different sorts of organizational changes these changes can be brought if we want to make Tesco as a very competitive and standard groceries around the world market.
Explaining the Benefits of Planning Organizational Change
Conducting plan before making any sort change can be beneficial during the period of implementation and evaluation. Some benefits are explained in below.
Benefits of Planning Organizational Change
- Effective change management: A well-planned and effective change management can be easier to make its proper management. During implementation, change actors can work based on the planed management.
- Reducing stress: Any sort of new change or develop is the matter of fear to the change actors (Moffat, 2017). If the changes are planned and well-coordinated and there is proper guideline, then their stresses can be reduced in a great extent.
- Maximum utilization of existing resources: An effective change management plan guides to the proper utilization of the existing financial, human, technological resources properly. These sorts of resources can be utilized and expected results are generated.
- Opportunities to develop news sills: New changes create new opportunity to learn something beneficial. If the change is made intentionally, the employees can learn new things which are already under their concern.
These are the illustration of the probable benefits of planning organizational change.
Explaining Processes for Managing Change
Change management is the continuous procedure through which change is initiated, implemented and evaluated. Based on a theoretical framework, the processes of change management are explained in below.
Process for Managing Change
- Kortter’s 8 steps theory: Following this theory, the processes are illustrated in below.
- Creating sense of urgency: It is the initial stage of change management process. In this stage, the change players identify current organizational crisis and the potential changes needed for the organization (Kotter, 2018).
- Creating a guiding coalition: In this stage of change management processes, the change actor or change agent form a team with the actors so that the change management procedures can be proceeded forward. For example, HRM.
- Developing the guiding coalition: Strategies are set through which the intended changes will be gone forward.
- Communicating the change vision: Stakeholders especially, the change players are communicated the proposed change content and its mission and objectives so that they can implement change smoothly (Kotter, 2018).
- Empowering broad based action: Leaders minimize the existing hassles in the way of bringing the new change.
- Generating short win: The change leader generate a quick win so that stakeholders can be satisfied and they feel motivated in contributing to the change management.
- Consolidating gains and produce more change: Hiring, promoting and recognizing of the new specialists are done so that more changes can be brought.
- Anchoring new approach in the culture: The taken changes are applied and sustained in the existing organizational culture.
These are the processes through which change is taken place and it can be easily implemented based on the organizational context of Tesco.
Explaining the Skills needed to Manage people through Organizational Change
In order to implement and consolidate the proposed change successfully, it is badly need to manage the existing change players. In below, the needed skills are explained.
Skills needed to Manage people through the Organizational Change
- Communication: leaders have to develop a barrier free communication mechanism through which he/ she can remain in touch of the fellow workers.
- Feedback: By taking feedback from the employee performance from the employees, the leaders can manage people in term of how they are working and contributing to the change processes.
- Performance management: Performance management basically creates and develop such a working culture in which employees are rewarded for their good performance and punished for their bad performance (McCullagh, 2010). By developing this system, people can be managed through organizational change.
- Team working: Developing and establishing team working lead the employees to be entered into a working environment culture by which the can get cooperation and assistance from the other coworkers and their skills can be developed.
Thus, employees can be managed in terms of the brought change.
Describing Reasons for Individuals to Resist Change
It is said that, people doesn’t resist change but they resist being changed. There are some sorts of reasons behind change management suggested by the change specialists.
Reasons for Individuals to Resist Change
- Inertia: Employees usually want to remain and stay in their comfort position and as they want to maintain their traditional legacy, so they do not want to go through any sort of change.
- Timing: Most often organizations bring change in inappropriate moment when the employees are not ready to embrace the changes. For example, sudden social trends due to having cinema or social media effect, changes can be needed in making new stylish clothes but the change actors may not be ready always to accept the change (Bradutanu, 2015).
- Peer-pressure: Sometimes the group of people or the team members do not want to embrace change, at that the case the individuals do not want to take change although they have intention to embrace the change.
- Surprise: If the employees are not consulted before applying any change, then the can resist the change.
These are the reasons behind resisting change by change actors.
Explain how Leaders and Managers can Overcome Resistance to Change
- How leaders and manager can overcome resistance to change: Based on the leadership theory developed by Tannenbum and Schmidt, the way to overcome the resistance to change is explained in below.
- Tells: Leaders should describe or narrate the intended goals and objectives and the benefits for minimizing the resistance, then the employees can be agreed to face change (tutor2u, 2018).
- Sells: Leaders make decision but the make discussion and interact with the employees before making the ultimate decision.
- Consult: Before making or bringing any sorts of changes, the leaders should make consultation and discussion with the employees so that they can realize the benefits of the change (tutor2u, 2018).
- Joins: Leaders make clean the way to change and the employees go forward to embrace change.
By doing so, the employees’ participation can be enhanced as the change is made buy-in with the employees and as the employees are consulted so they make smooth participation to the change management process. Thus the, change management becomes successful.
Explain the Role of Organization Culture in the Management of Change
Organization culture refers to the behavior and system of work procedure which they follow during their business operation. Organization culture influences behavior of employees, their attitude and process of interaction with others within organization. As prominent and large business organization Tesco plc has some organization culture which impacts their employee’s behavior and working process. In this context Charles Handy an Irish philosopher provide a theory which consist of power, task culture, person culture and role which are followed by Tesco, describe in below-
- Power: this indicates that when power contained by few employees and management of company take decision. For this reason those employees get some facilities in Tesco and have great role in change management of organization. In this context, low hierarchy employees less impact on decision making and other work process (Oestreich, 2007).
- Role culture: Tesco has various specialists in different sector based on their skill, experience and quality so that company can get better outcome from employees where tasks are distributed to them according to their skilled sector. This type of employees is responsible for their work and able to take decision in change management of company where they have to play vital role; this is role culture.
- Task culture: this is consist of some members who are work for solving problem within company and has great impact on solving various problems faced by company. In Tesco Company there also some common employees who have same interest and solve problem together.
- Person culture: in the context of person culture employees think that they are very important for the company and play vital role in their company. In Tesco this type of employees give importance on their interest than Tesco Company’s decision. In general sense this has negative impact on company because decision of company is more important than personal decision (Handy, 2011).
Impact of specific role in change management:
There have some culture in Tesco which have great impact on change management of Tesco, such as-
- Communication: communication is the way of interact with each other and best way to handle any difficult situation. Tesco is a large company so here need to good interaction with employees in order to operate business in better way. To bring good change in company combine work and decision has vital role where communication among employees have is must. Good communication system in Tesco helps to make them one of the profited companies in the world (Green, 2009).
- Committed manager: manger plays vital role in a company where good decision making of manager leads company to achieve their goals in better way. In Tesco Company, manager holds vital role to bring good change in company and manage change in better way. Change is common and company has to face change during operating where manager has to be strongly committed to his duty and with employees (Smith and Smith, 2010.
- Actions of employees: good culture is key component of good operation of company’s activities where employees have to various actions to make good culture in company. In Tesco Company there have good culture of working procedure which make them competitive in market. To initiate good culture in company they take various actions in related to improve company’s working procedure.
- Recognition: recognition motivates employees to do their job in better way. For this reason Tesco recognize their employees work and contribution so that they can deal with change in better way.
- Change in physical environment: to deal with change and manage change in better way Tesco initiate change in their physical environment such as soil, water supply and so on (Handy, 2011).
So these are some major factor which is needed to manage the change in better way and bring good change to improve company’s profit.
Speaker note: Better technology and decision making is needed for the reducing cost. So by measuring cost Tesco can monitor their implementation of change.
To ensure better quality company implement various change in their Company where better quality indicates good implementation of change (Green, 2009).
Speaker note: Good adherence with change indicates good result of change so this is important tools for monitoring change of a company.
Good time management indicates progress of work where change in company takes time. If company can adjust their time with after initiate change refers good impact of change (Horton, 2003).
Speaker note: When Tesco Company evaluates their process in the context of effectiveness they can find out the improvement of program? On the other hand evaluating efficiently helps to identity best production point where company should produce.
Evolution of effectiveness helps them to measure success and efficiency helps to measure success in production.
So evaluating is very much important for the process which is initiated by Tesco in term of their effectiveness and efficiency (Brännmark & Benn, 2012).
Speaker note: maximize the output is one of the key objective of Tesco where they can measure success of change by measuring output.
Tesco Company can justify their change process through comparing new process result with baseline effectiveness which will helps them to find out result of new change process (Green, 2009).
By measuring cost and quality Tesco can justify their new process where better quality with lowest cost indicates betterment of change process.
Business is basically one sort of organization which is operated through applying effective and efficient managerial system. When we are not usually happy with the current system of any particular business system, then we want to make shift to the expected and desirable stage. It is said that, everyone does not resist change but they resist strictly to be changed. In the following discussion, we have described various sorts of factors to change, change planning, implementation and evaluation in the light of various sorts of change related theories and approaches which are applicable to the organizational setting of Tesco.
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