Assignment on Understanding and Leading Change

Table of Contents
Assignment On Understanding and Leading Change....................................................................................i
Introduction.................................................................................................................................................1
Impact of Organizational Change and Managing of Change in Organizations (LO1)....................................2
a. Impression of Change on Organizations..............................................................................................2
Organizational Change:........................................................................................................................2
Work environment Demographics:.....................................................................................................2
Innovation:..........................................................................................................................................3
Globalization:.......................................................................................................................................3
Development:......................................................................................................................................3
Changes in the Market Conditions:......................................................................................................4
Poor Performance...............................................................................................................................4
Kotter’s 8-step Change model:............................................................................................................5
Lewin's Change Management Model:.................................................................................................7
b. Factors of Change within and outside the Organizations....................................................................8
Technological Capacity........................................................................................................................8
Organizational Culture.........................................................................................................................8
Financial Management........................................................................................................................8
Employee Morale................................................................................................................................8
Poor Delivery.......................................................................................................................................9
Competition.........................................................................................................................................9
Economy..............................................................................................................................................9
Political Influence................................................................................................................................9
New Competitors...............................................................................................................................10
Innovation.........................................................................................................................................10
Consumer loyalty...............................................................................................................................10
c. Techniques used to minimize the Resistant of change in the organizations......................................11
Claim the progressions:.....................................................................................................................11
Impart the change:............................................................................................................................11
Enable the workers to distinguish:....................................................................................................11
Listen profoundly and compassionately to the representatives:.......................................................11
 Enable representatives to contribute:...............................................................................................12
Decision Making Process of the Leadership within Organizations (LO2)...................................................14
d. Obstacles of Change and their impact on the Leadership Decision Making......................................14
Inadequate Employee Interaction:....................................................................................................14
The absence of Effective Communication Strategy:..........................................................................14
A Bad Culture Shift Planning:.............................................................................................................14
Obscure Current State:......................................................................................................................14
Association Complexity:.....................................................................................................................15
Force Field Analysis:..........................................................................................................................15
Various Types of Leadership to Change in the Different Organizations (LO3)...........................................16
e. Different leadership styles to deal with change in the organizations................................................16
Directive:...........................................................................................................................................16
Supportive:........................................................................................................................................16
Directing:...........................................................................................................................................16
Coaching:...........................................................................................................................................16
Supporting:........................................................................................................................................16
Delegating:.........................................................................................................................................16
Conclusion.................................................................................................................................................17
References.................................................................................................................................................18
Introduction
Change can be either positive or negative. It can be either an opportunity or threat to an
organization. Managers should take into consideration every situation and circumstances the
organizations faces in the advancement and growth. Different forces or factors influence the
activities, structures, strategies of the organizations which managers should analyze to find out
whether they will go for change with the situation or not. To begin for any change, managers
first of all have to make the situation for the change, then analyze the driving factors, define
vision and long-term goals, communicate strategies and methods and benefits with the
employees and execute the change process along with employees. Without the participation of
the employees, managers can’t bring any changes in the organizations. Team work is very much
important and role of the leaders have very much influence in the process of change.

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Impact of Organizational Change and Managing of Change in
Organizations (LO1)

a. Impression of Change on Organizations

Organizational Change:
Hierarchical change is the development of an association starting with one situation then onto the
next. A change in nature regularly requires change inside the association working inside that
condition. Change in any part of an organization's task can be met with protection, and diverse
societies can have distinctive responses to both the change and the way to advance the change.
Regularly, the basic demonstration of incorporating workers in the change procedure can
definitely diminish restriction to new techniques. In a few associations, this level of
incorporation isn't conceivable, and rather associations can enlist few supposition pioneers to
advance the advantages of coming changes.

Work environment Demographics:

Hierarchical change is regularly a reaction to changes in the earth. For instance, organizations
that screen work environment socioeconomics, for example, the U.S. Bureau of Labor and the
Organization for Economic Co-task and Development have announced that the normal age of the
U.S. workforce will increment as the time of increased birth rates age nears retirement age and
the quantities of more youthful laborers are inadequate to fill the gap. What does this mean for
organizations? Associations may understand that as the workforce gets more established, the
sorts of advantages laborers incline toward may change (Abdallah and El-Rayes, 2015). Work
plans, for example, adaptable work hours and work sharing may turn out to be better known as
representatives stay in the workforce even after retirement. It is additionally conceivable that
representatives who are miserable with their present work circumstance will resign, bringing
about a sudden loss of profitable learning and ability in associations.

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Innovation:
Here and there change is persuaded by fast improvements in technology. Such change is
propelling organizations to change their innovation rapidly. Sometimes innovation delivers such
significant advancements that organizations battle to adjust. At the point when music CDs were
first presented in the 1980s, they were significantly more engaging than the customary LP vinyl
records. Record organizations were effectively ready to twofold the costs, despite the fact that
delivering CDs cost a small amount of what it cost to create LPs. For decades, record-delivering
organizations profited from this the present state of affairs.

Globalization:
Globalization is another danger and an open door for associations, contingent upon their capacity
to adjust to it. On account of contrasts in national economies and ways of life starting with one
nation then onto the next, associations in created nations are finding that it is regularly less
expensive to create merchandise and convey benefits in less created nations. This has driven
numerous organizations to outsource their assembling tasks to nations, for example, China and
Mexico. For instance, numerous organizations have outsourced programming advancement to
India, with Indian organizations, for example, Wipro and Infosys developing as worldwide
goliaths (Nkomo and Kriek, 2011).

Development:
It is normal for once little new businesses to develop in the event that they are fruitful. A case of
this development is the advancement of the Widmer Brothers Brewing Company, which began
as two siblings blending lager in their carport to turning into the eleventh biggest distillery in the
United States. This development occurred after some time as the fame of their key item—
Hefeweizen—developed in fame and the organization needed to extend to take care of demand
developing from the two authors to the eleventh biggest bottling works in the United States

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Changes in the Market Conditions:
Market changes may likewise make inside changes as organizations battle to modify. For
instance, as of this written work, the carrier business in the United States is experiencing genuine
changes. Interest for air travel was diminished after the September 11 fear based oppressor
assaults. In the meantime, the across the board utilization of the Internet to book plane voyages
made it conceivable to think about carrier costs considerably more proficiently and effectively,
reassuring aircrafts to contend basically in view of cost.

Poor Performance
Change can likewise happen if the organization is performing inadequately and if there is an
apparent risk of the earth. Truth be told, inadequately performing organizations frequently think
that it's simpler to change contrasted and fruitful organizations. Why? Elite really prompts
presumptuousness and inactivity. Therefore, fruitful organizations regularly continue doing what
made them effective in any case. For instance, Polaroid was the main maker of moment movies
and cameras in 1994. Not as much as after 10 years, the organization petitioned for insolvency,
unfit to adjust to the fast advances in one-hour photograph improvement and computerized
photography innovations that were clearing the market. Fruitful organizations that figure out how
to change have exceptional practices set up to keep the association open to changes. For instance,
Finnish mobile phone creator Nokia finds that it is essential to occasionally change the viewpoint
of key leaders. For this reason, they turn heads of organizations to various presents on give them
a new point of view.

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Kotter’s 8-step Change model:

Source: https://www.mindtools.com/pages/article/newPPM_82.htm

Step 1: Create Urgency:

In the first stage, we have to motivate others in order to develop a sense of urgency for change.
This doesn’t mean only to show loss account to employees or past statistics of the company. We
have to communicate honestly and in a convincing way showing what is exactly happening in
the marketplace and in the competition. This will motivate others and create urgency (Raye,
2014).

Step 2: Form a Powerful Coalition:

The coalition is very much important to bring changes in many organizations. Coalitions must be
included from various positions and skills whose power comes from various sources like a job
description, experience, job status etc. coalitions help members of the organizations to work like
a team.

Step 3: Create a Vision for Change:

Whenever we consider any change, many problems and solutions come into our mind. We have
to consider all the possible ways to find out the best solutions to the change that we have decided
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to take into consideration. We have to make a clear vision to express the change and plan to cope
with the change to the members of the team. It also helps to decrease misunderstanding among
the members.

Step 4: Communicate the Vision:

After creating a vision, we have to communicate it frequently with others to so that they can have
directions and instructions about everything of the change. We have to communicate it in every
chance we get opportunity rather than just communicate it in a meeting. Otherwise, the vision
will lose the importance.

Step 5: Remove Obstacles:

In this stage, we have to find out the leaders who are responsible for delivering the changes. We
have to figure out whether the structure of the organization, job definition and the salary system
of the organization are in accordance with the vision that we have already described to the
members.

Step 6: Create Short-Term Wins:

Long-term one goal will make the members depressed. We have to set short-term goals to
achieve the long-term goals. When short-term goals are achieved, members get motivations. We
also have rewarded those members who help to achieve the short-term goal for the organization.

Step 7: Build on the Change:

We should not declare the victory earlier without analyzing the change deeply. If this happens,
then our long-term goals won’t be fulfilled. After the fulfillment of every goal, we have to
analyze more about what to change and how we can improve.

Step 8: Anchor the Changes in Corporate Culture:

At last, to roll out any improvement stick, it ought to wind up some portion of the center of our
association. Endeavor persistent endeavors to guarantee that the change is found in each part of
our association. This will help give that change a strong place in our association's way of life.

Lewin's Change Management Model:

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Unfreeze:
In the first stage, we have to identify what needs to be changed through a survey the
organization. we have to ensure the supporting from the upper management. We have to make
vision and strategy that support our defined change. We also have to clarify if there is an
understanding of the change and every description about the change.

Change:
In the second stage, we have to communicate benefits to the members and answer any questions
of the members and provide information to the members about their job. We also have to provide
lots of opportunities to the employees and provide directions to the members.

Refreeze:
In the final stage, we have to identify the barriers towards the change, ensure the reward system
for the members, and develop the ways for sustaining the change. And finally, we have to
provide support to the members, arrange training for the members and celebrate the success
together.

b. Factors of Change within and outside the Organizations

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Internal driving factors refer circumstances or occasions that are happened inside the business
and these by and large under control of the organization. The fundamental interior main
impetuses are given underneath;

Technological Capacity
The new discoveries make the old one useless. The business community has to keep itself up to
date with the technological changes. And it is also an important issue as it develops the business
situations and circumstances in the long run.

Organizational Culture
Organizational behavior can be defined as the sequential and procedural study of the behavior
and attitude of both single and team within the organization. Organizations that have a powerful
success spirit, and always embrace change and listen to staff and customers are said to be
forward-looking. Forward-looking organizations, they are risk takers and also they did their
business very well. So the organization is the essential part of a company.

Financial Management
Finance is just like blood supply of a business. There is a very deep positive relationship between
money and the business. According to this view financial management has a powerful stand in
the business organization. In a company, the finance management takes a decision about fund
distribution like the purchase of raw materials, introduce new assets, proper fund distribution etc
(Agnihotri, 2014).

Employee Morale
The level of confidence and strength of a person or group is very important to a company. The
employee has no morale or they are not committed their job, the company going in down words.
The employees are satisfied with their both company and job, which will make a positive energy

For increasing employee morale the Corus Company introduce more programs and also they
provide mental confidence to the employees.

Poor Delivery
Poor customer service or delivery is a universal problem that impacts on the bottom line and
profit margins in all types of industries, business, and services throughout the world. The time
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plays an important role in the business. Customers need goods and services at their own time;
otherwise, they select another comfortable company or services.

For example; The Corus Strip products UK (CSP) The Corus Company, there were delays in
delivering steel to customers on time. So that leads to loss of business.

Competition
Globalization has sharpened the competition. Introduce new ideas, technologies, innovations,
techniques etc. are the main parts of the business competition. To face the competition every
organization suffers more things like expense, organization problems, external problems etc
(Alexeev, 2014).

For example, Corus steel company cannot compete with other companies because the production
of steel in the UK could be more expensive than from than other countries. For this reason, the
Corus Company faced many problems in the business world.

External driving forces are those sorts of things, circumstances or occasions that happened from
outside of the organization or association. Furthermore, now we can examine about, what are the
outer main impetuses of an organization.

Economy
There is a personal connection between the business firm and the monetary condition. The
execution of business depends upon the monetary condition. At monetary variances like
expansion or flattening severely influence the business.

Political Influence
The political powers are specifically bearing on the working of the business. Political impacts
like belief system of gatherings, Govt. arrangements, Govt. choices, political security, assess
strategy, and so on are decidedly or contrarily influenced the business condition.

New Competitors
Rivalry makes challenge the business world. New contenders make more trebles for different
organizations since they present new innovation, thoughts, developments, and client fulfilled
merchandise and ventures with sensible cost. In any case, old organizations can't focus on them

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too on the grounds that their machines, advances and every single other thing are old, and they
can't supplant it. For instance, minimal effort makers in Eastern Europe were taking business and
it could prompt diminish request with higher expenses (Owen, 2015).

Innovation
It is likewise an essential viewpoint as it shapes the business activities over the long haul
business. Innovation incorporates creations, disclosures and new and better methods of changing
the assets into the definite item. Innovation helps in playing out the activities in much better and
less expensive way. The client expects higher determinations, so it can keep up just new
advancements (Peltokorpi and Hasu, 2014).

Consumer loyalty
Consumer loyalty is a business term, is a measure of how items and administrations provided by
an organization meet or outperform client desire. It is viewed as a key execution marker inside
the business and is a piece of the four viewpoints of a Balanced Scorecard (Palin, 2016).

c. Techniques used to minimize the Resistant of change in the organizations

These methods will enable us to limit, diminish, and make less excruciating, the protection from
the change that we make as we present changes.

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Claim the progressions:
Regardless of where the change began—and switch can appear anytime in the association,
notwithstanding starting with marketer—they should possess the change themselves. It's their
duty to execute the change. They can just do that successfully, in the event that they advance
back, take a full breath, and plan how they will actualize the change with the general population
they impact or supervise in the association.

Impart the change:

It's the ideal opportunity for the change to proceed onward. Once the choice is made, manager's
upsetting time is finished. Regardless of whether they differ or not, once the association, the
gathering, or the group chooses to proceed onward—they have to give it their best shot to
influence the chose heading to succeed. Whatever else is damage and it will make their life
hopeless and it can even get them let go (Burnes, et al, 2016).

Enable the workers to distinguish:

Advantages to the gathering, the office, and the association ought to be focused, as well. Be that
as it may, nothing is more essential to an individual worker than to know the positive effect
without anyone else vocation or occupation. Workers must feel that the time, vitality,
responsibility, and center important to actualize the change are remunerated similarly by the
advantages they will achieve from rolling out the improvement.

Listen profoundly and compassionately to the representatives:

Managers can't know or experience the effect from an individual worker's perspective. Possibly
the change appears to be immaterial to numerous representatives, however, the change will truly
affect another worker's most loved undertaking. Listening to the representatives and giving them
a chance to express their perspective in a non-judgmental condition will decrease protection from
change.

Enable representatives to contribute:

On the off chance that managers have conveyed straightforwardly, they have given the course,
the method of reasoning, the objectives, and the parameters that have been set by their
association. Inside that system, their activity is to engage the representatives to roll out the
improvement work.

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Decision Making Process of the Leadership within
Organizations (LO2)

d. Obstacles of Change and their impact on the Leadership Decision Making

Barriers to change refer those factors which resist the change in the organizations. These
obstacles prevent companies to adopt or take any steps towards the change. Some barriers to the
change are given below

Inadequate Employee Interaction:

Employee interaction is an important factor because the employee is the person who is mainly
the persons who perform at field level to bring the change. But if they interact inadequately then
the change won’t result in a success.

The absence of Effective Communication Strategy:

The organization should have an appropriate communication strategy. Without an appropriate
communication, strategy leaders can’t transfer their direction and information to the employees
and control the performance.

A Bad Culture Shift Planning:

The organization should consider the feelings and emotions of the employee because the change
will affect them very much. A cultural shift in the organization should be decided on the basis of
the information obtained from the employees. Otherwise, they will not provide their performance
fully (Espedal, 2017).

Obscure Current State:

Change is always an unpredictable and very complex process. So before the change begins,
management should survey every pros and con of the current situation and analyze it to find out
whether it is necessary to change or not. Unknown situational factors prevent the change of the
organization (GILLINGHAM and SWEENEY, 2012).

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Association Complexity:
The complex structures of the organization slower the change process. Some organizations have
so much complex structure such as highly formal communication structure discourage the
change process as it takes more time to transfer the information and direction to the employees
(McNeeley, 2011).

Force Field Analysis:

The force field analysis refers to a method which has four steps:

1. Explore the adjust of energy

2. Recognize the key players engaged with basic leadership
3. Recognize who is for and who is against change
4. Recognize approaches to impact those against change

First of all, marketers investigate the balance or equilibrium of the power. Marketers analyze the
factors that force the change. There are basically two types of factors that force the change. The
first one is the “driving force” and the second one is “resisting forces”.

Driving forces refer to that factor that influences to seek the change in the organization. it may be
an internal force or may be an external force. The labor market, Marketplace, economic change,
technology, governmental laws, and regulations are some of the external forces. Employee
problems and administrative procedure refer to the internal forces.

Resisting forces refer those factors that seek to maintain the sustain situation or status of the
situation. Uncertainty, Concern over a personal loss, Group resistance, Dependence, Trust in
administration, Awareness of weaknesses in the proposed, Change etc are important resistant
forces that sustain the status quo.

When the driving forces are greater than the resistant forces, managers can easily begin the
change process as the situation is favorable to the organization (Obioma, 2015).

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Various Types of Leadership to Change in the Different
Organizations (LO3)

e. Different leadership styles to deal with change in the organizations

According to Hershey and Blanchard, the characteristics of the leaders can be classified in two
ways.

Directive: Leaders who clearly just communicate every pros and corn with others and carefully
control every aspect of the employee performance.

Supportive: Leaders who are very friendly with the teammates and encourage and motivate to
share their views and opinions and help to improve their performance (Howard and Ulferts,
2017).

According to these two types of characteristics, Hershey and Blanchard classified leaders into
four different types considering the ratio of the high or low decree to the characteristics
(Chapparamani, 2012).

Directing: Leaders define everyone’s role, job, position, power etc. That’s why sometimes it’s
called one-way transformation of order.

Coaching: Leaders help their subordinates by providing with support, data, and direction
necessary to perform properly.

Supporting: Leaders take every decision with consulting with their subordinates and consider
their decision very much.

Delegating: Leaders transfer the decision making right to their subordinates and make them to
take the right decision freely.

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Conclusion
Future is unpredictable. Business is not out of this. Business is also unpredictable. In different
stages in the business process different changes need to be occurred. Managers have to take
appropriate initiatives to begin the change process. Different changes in the business
environment, internal or external, give opportunities to managers to bring change in the
organizations. Changes in other regions like technological also influence the organization in
other regions to bring changes. Today, marketplace is very much competitive. To keep pace with
this competitive world, managers should bring changes and apply the changes in the
organizations. Otherwise, they will lag behind than other organizations. And for this reason, the
have to analyze current situations of the business world continuously and analyze different
approaches of change to apply and gain success in today’s competitive market.

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