Understanding Organizational Change Types

a. What do you understand by Change?

Change has been defined by Armstrong, 2004, as a “signifies that the willingness of the affected parties to embrace and function in a newly established order and their commitment to effect and implement the changes”. The generic definition of change, as defined by Hughes, (2006) is "any alteration in the status quo”.

There are four type of change: Strategic (change in the mission, when acquired); Structural (decentralization); People oriented (self, actualization- motivation, loyalty, training, relationships); and Process oriented (in manufacturing operations).

b. What are the different types of changes in an organisation?

Strategic Change

Occasionally in the sequence of ordinary business activity it is fundamental for the management to modify the company's procedure to accomplish the objectives of the organization which may include changing its key way to deal with business as the business sectors it will focus on, the type of product it will sell, how they will be sold, its general key direction, the level of worldwide action, and its different associations and different joint‐business plan.

Structural Change

Structural changes include the progressive system of power, objectives, basic attributes, authoritative methodology, and the board frameworks. Structural change might be as basic as executing a no‐smoking policy, or as included as rebuilding the organization to meet the client needs more viably.

People oriented Change

This kind of progress modifies the mind-sets, practices, abilities, or execution of workers in the organization. Changing people‐centred process includes conveying, encouraging, leading, and collaborating inside groups. This centre could involve changing how issues are explained, the manner in which workers learn new abilities, and the idea of how workers see themselves, their occupations, and the company.

Process oriented Change

Process oriented change is frequently identified with a production process or how the company makes product or delivery services. The selection of mechanical technology in an assembling plant or of laser‐scanning checkout system at grocery stores isinstances of process-oriented changes. According to a demand, company must to reengineer techniques to accomplish ideal work process and profitability.

Explain briefly how change can be perceived as positive?

There are some positive impacts of changes as:

Staying current - Change can aid a business to remain current with industry patterns, which can make it more appealing to potential clients as help to keep current clients. (ex: if a contender creates and advertises a profitable product, a business can guarantee that it doesn't fall behind by creating and promoting a similar product of its own.)

New opportunities - The capacity to grasp change can help workers in a business by making new chances. (ex: a worker who zealously puts forth a concentrated effort to learn the new computer office system can prepare also other workers who are unenthusiastic). According to Lewis and Sahay (2017), by accepting this influential position, the worker may situate himself as somebody who is fit for accepting extra obligations, making him a potential contender for future advancement.

Encouraging Innovation - Organizations that are capable at taking care of or in any event, grasping change can cultivate a domain that empowers advancement. Workers who feel that their thoughts will be considered by a director or entrepreneur might be additionally ready to think innovatively, which can enable a business to develop. One great item or showcasing thought can have a major effect in the achievement of an independent company.

Increased efficiency - Change can expand the proficiency of work forms, which can make for increasingly fulfilled clients, as workers. A new computer system can help a specialist in accelerating a production system in a factory.

Improved Attitudes - A philosophical or work force change in an association can positively affect workers dispositions and confidence. An adjustment in HR theory that takes into account an increasingly relaxed workplace, for example, implementing an easygoing clothing regulation, might be invited by representatives. At the point when a nearby disapproved of supervisor is supplanted with one who is available to new thoughts, employees may feel that they have more inputin regard to their activity.

d. Explain briefly how change can be perceived as negative?

Change can be perceived as negative when employees perception of change is unpleasant or depressing about it. There are some negative perceived of change as:

Mental Stress - There might be numerous reasons for expanded feelings of anxiety, including apparent injustices or unfairness, absence of convenient correspondence by managers or dread of future changes.

Loss of Loyalty - Many organizations look to pay rates and benefits as the main spots to reduce when hoping to make changes that include cost-sparing. At the point when this occurs, it is obvious that a few workers will leave the organization to look for business somewhere else (Lewis, 2019).

Increased Time Away from Work -At the point when company changes are declared, especially when there is scaling back included, workers use to divide into one of two gatherings: those who will endeavor to control their destiny and those who need to get out before the progressions happen. The rest of the workers adapt to the progressions by keeping away from them.

Life Changes - Some company changes require major rebuilding, bringing about clearing life changes for various employees. Normal changes that contrarily impact a part of the workers are pay cuts, loss of benefits, downsizing in work position, work misfortune or movement to another city, state or country. These can be pulverizing changes to workers, especially those who are supporting families.

Activity 1

P3 How can the negative impacts of change be minimised? What measures would you recommend?

According to Gary S. negativity is often the result of a loss of confidence, control, or community. Knowing what people are negative about is the first step in solving the problem. While there is "nobody size fits all" way to deal with taking care of representative divisions, here are some different ways to limit the negative effect as:

No Surprises, please– Transparency and open communication assists with making trust among leadership and workers. Propelled flagging that change is noticeable all around will offer individuals a chance to get ready intellectually and genuinely for change and a superior stage for rotating and pushing ahead once the progressions have occurred.

Engage Employees in the Conversation as Early as Possible____ Early engagement of employees in effective and productive conversations could bring forth the benefits involving clarification of the communicated visions and goals associated with the projected change implementation processes and associated outcomes (MEE-YAN and HOLBECHE, 2015).

•Consider Notice: Working notice_____ Working notices are considered to be the most effective instruments in terms of instilling the sense of authority associated with that of the slated change implementation process which could be judiciously combined with elements of responsibility and humility.

Create a Culture of Learning____ The measures of complications and hyper-turbulent market scenario in the contemporary global market require approaches involving system thinking at the organisational collective operational levels so as to effectively resolve the complicated problems and to preempt the long-term consequences involving organisational change implementation processes.

Provide Career Transition Support____ This involves effective investment within the organisational human resources through which the risk of productivity loss, as concealed cost to that of the organisational change, could be minimised through ensuring that all of the affected employees, including the retained and retrenched ones, could be enabled to effectively navigate the restructuring process (Cameron and Green, 2019).

P1 :Compare different organisational examples where there has been an impact of change on an organisation’s strategy and operations

What do you understand by Drivers of Change?

LEWIS (2011) has observed that change drivers are internal or external organisational stimuli which could shape such a process involving change management within the respective organisation.

What were the recent changes that took place in Marks & Spencer? What (external and internal drivers) drove that change?

The internal and external drivers of change in the M&S could be identified to have been multiple in numbers. PENDLETON and FURNHAM(2012) have determined that these have been the following:

Physical environment

All of the 375 direct UK stores as well as the 155 stores operated by the franchises in 28 different territories within the global market were identical in their work management procedures, brand image projection and in design of the floor layouts. These had imposed limitations to changes regarding the business environment, the geographical locations and customer lifestyle influence on the product offerings.

Intangibles

Changes in market fashion and cost structures of products contributed to the reduction in customer loyalty and this culminated in the undervaluation of the ‘St Michael’ brand of M&S since the company did not develop a knowledge management mechanism involving accumulation and analysis of data on customers and suppliers.

Operations

The organisational refurbishment programme had caused sufficient disruptions of customer management efforts and this involved the decline in quality of display of offered products as work and casual clothing had been displayed at the same outlet in an haphazard manner (Shah, Irani and Sharif, 2017) Furthermore, M&S did not institute any loyalty or credit cards based purchasing facility when the market rivals had implemented the same.

Services

The cost control drive had left poor services at the shop floors of M&S as such efforts had reduced the numbers of sales assistants in such stores. Furthermore, fitting rooms were not available at such facilities and customer satisfaction data survey outcomes were not taken into consideration.

Bargaining capability of purchasers

The bargaining power of customers had definite influence on the impetus of change implementation for M&S. This involved the classical clothing purchasers becoming price sensitive and other high image seeking customers turning into fashion sensitive ones. Premium price payment inclinations also had reduced in terms of the UK populace supporting British products. Consumer orientation had altered as well.

What were the recent changes that took place in House of Fraser? What (external and internal drivers) brought about that change?

The internet

The disruptive influence on High Street by new digital technologies such as Internet based advertisement and product offerings had been profound and digital retailer organisations such as Amazon had become dominant through undermining conventional bricks and mortar based retail outlets (STANFORD, 2013). However, HoF had responded slowly towards grasping the extent of change through delayed actions in terms of setting up internet offering platforms and this had been the reason that trade body of the Interactive Media in Retail Groups had termed House of Fraser as online laggards failing to embrace the opportunities associated with Internet based trading.

Dearth of proper USP

In the age of Internet based trading, customers require special impetus to visit conventional departmental stores and House of Fraser had accumulated large numbers of smaller stores such as Army & Navy, Dickins & Jones, DH Evans and others. However, the High Street giant did not consider the necessity of preserving the diversity across the High Street and did nothing to offer proper, distinctive substitutes to such defunct brands. This undermined the unique selling points and diminished the attractive quotient of the company to gain competitive leverage (Jackson and Sparks, 2005).

Redundancy of stores

The initiation of the organisational revamping effort of House of Fraser witnessed the company having 59 departmental stores at UK. This constrained the services improvement efforts of the company severely as the organisation required to effectively slim the portfolio down due to years getting spent in acquisition of ever greater numbers of stores even at the costs of legacy lease arrangements (NORTHOUSE, 2010).

Management and ownership inefficiency

The retailer had been plagued consistently by 15 years of management turbulence where the ownership was changed twice and acute dearth of clarity prevailed concerning the long term strategy of House of Fraser. The uncertainty begun prominent during 2003 (the hostile takeover bid from billionaire Tom Hunter), in 2006 the company was bought by a consortium led by Baugur of Iceland in £351m, an attempted takeover occurred during 2013 by Galeries Lafayette (the leading French departmental store) and in 2014, the Nanjing Xinjiekou, the Chinese component of the Sanpower group, bought the company for £480m. All of such dynamic events had instilled a revolving door syndrome within the management of the retail chain and this did much to blight the efficacy of the management structure of the retailer (Rippin, 2005).

Floundering of the rescue plan of House of Fraser

One final attempt to rescue the High Street retailer stalwart was performed through sales to the Hamleys owner, the Hong Kong based Chinese C.banner, however, this deal also floundered since C.banner did not have the financial robustness to support the ageing stalwart of High Street retail. The share value of C.banner declined by 70% in 2 months and the share placing was pulled away by the company and this sealed the fate of the HoF.

M1:Assessment of drivers for changes on organisational operations

The focal points of operation are strategies, planning, restructuring the organisational structural configurations, products, services and operational procedures. Al-Ali, Singh, Al-Nahyan and Sohal (2017) have determined the internal change drivers to be organisational vision and mission, principles, organisational capabilities, measurement regarding optimization of existing capabilities (such as reduction of unit costs), procedural experimentation, organisational culture and leadership elements associated with such organisations. The external change drivers have been identified by Galli (2018) as change agents in the form of existing customer bases, lead users, commercial critics, technological ground breaking improvements which could occur at the junctures of product launch or service introduction.

Positive outcomes of change in M&S

1: The issuance of anticipatory directives in the form of working notices related to the change implementation process within the organisational architecture of M&S. This served as rational management of anticipation through organisational commitment and resolution.

2: Self-prompted initiatives by the HRM officials of M&S have been undertaken where restructuring has been underway. The long term benefits have been intended to be the improvement of fundamental attitudes of employees towards the restructuring of organisational working architecture. This process has involved constant encouragement, occasional interviewing practices and regular coaching sessions where direct feedback attainment from the employees could become definite possibilities.

3: Saving operational costs through lean supply chain management and facilitation of transparency as well as of response time was achieved.

Positive outcomes of change in House of Fraser

1: Commitment towards putting of customers at the heart of every operation which is performed by the retailer. This has involved simplification of management structure with greater focus on training of teams.

2: Strategic partnership with Practicology to identify the strategic opportunities for change within the organisational operational prospects and in the operating model as well as team structure which involved the performance of an 18 month long project on this subject.

Negative outcomes of change for House of Fraser

1: Closure of 31 of the 59 legacy stores which affected 6000 staff.

2: The Company Voluntary Arrangement did not effectively perform.

3: The establishment and recent upgrade of £25m e-commerce platform on April 2017 caused incremental problems regarding e-commerce and e-tail services which contributed to slump of sales of the products which are sold through the online services of HoF.

Negative outcomes of change for M&S

1: Decline in the like-for-like clothing as well as in home sales has witnessed a 1.2% measure in the first three months of 2018.

2: Conflict had emerged as the entrenched sense of employee entitlement was incrementally influenced by the implementation of changes concerning the demands of the market. This entire process entailed the decision of the revamping all of the operational procedures of M&S.

P2: Evaluate the ways in which internal and external drivers of change affect leadership, team and individual behaviours in organisations

The psychological impacts of change implementation on employees, as individuals and as team members, are as multifarious. Uncertainty becomes a definite factor since change implementation could encompass all of the affected personnel and this involves the retrenched employees who could determine to work through the adverse emotional aspects regarding the discontinuation of their services to avail new employment opportunities through the utilisation of strategies provided to them by the career transition support programs of involved organisations (Carter and Varney, 2018). Furthermore, in case of the retained employees, the factor of trust enhancement requires to be positively performed since such remaining employees would witness their former colleagues being taken off by the organisational support policies. From a definitive perspective, the cost of downsizing could be reduced as well through the reduction of the overlooked losses involving employee turnover, absenteeism and litigation.

M2: Using theories and models below critically evaluate the response of Marks and Spencer and House of Fraser to change

Systems theory

M&S

People

This involved the institution of the Operating Committee regarding management of responsibilities. Objective has been to instil accountability for the day-to-day business operations and strategic initiatives.

Task

The restructuring of the task designations of the company has involved appointment of new Executive Directors in the following manner:

1: Andy Adcock (Directors of Food).

2: Jo Jenkins (Womenswear, Lingerie & Beauty).

3: Sacha Berendji (Retail).

4: Amanda Mellor (Group Secretary & Head of Corporate Governance).

Design

The Operating Committee has been entitled to improve the product and service specifics such as clothing and home offers for the premier customers and investment benefit management for the shareholders. This is part of simplification of organisational structure to enact fast tracked decision formulation processes (Wilson, 2016).

Strategy

Such efforts involved the enhancement of discretionary capabilities of organisational employees with greater sense of responsibility and professionalism which could empower them to engage in the creativity relevant processes such as identification of problems, searching for information and alternative ideation.

Technology

This has involved establishment of an innovative Technology Operating Model to drive efficiencies in adopting industry agile strategies. The Tata Consultancy Services has been appointed as the technology partner for this purpose.

HoF

People

Cross functional workshops with the team members from disciplines such as marketing, logistics, merchandising and IT. This was part of Project Gold initiatives to deliver effective training programs to executives.

Task

Development of a unified customer insight team has ensured unification of HoF brand, multichannel functions and CRM operations. Customer insights management is also the responsibility of this team.

Design

Greater emphasis has been provided to the creative outcomes in work process management. The ultimate objective has been to formulate a shared vision and meaning amongst the employees through which implementation of change could achieve the least measures of resistance from the employees as well as obtain the maximized measures of productive outcomes.

Culture

A culture of active listening and attentive engagement with the employees to facilitate the communication improvement potentials on part of the restructuring work processes through structuring the information feedback loop the status of the employees could be determined has been instated.

Technology

New drive towards e-commerce and IT capability enhancement and improvement of the group website were undertaken. This culminated in the launching of a new Australian website for sales along with development of online loyalty recognition scheme.

Strategy

Decision has been made to increase the shopping based bonus point extensively through offering new customers purchase bonuses. The objective has been to incentivise the customers to maintain their brand loyalty towards HoF. Improvement of Buy & Collect facilities at 17 stores has been undertaken so as to expand deliver upgrades.

Continuous improvement model

This improvement model could as well be interpreted as an instrument of motivation enhancement process for the employees of both M&S and House of Fraser. This bottom-up theoretical construct could be identified to have been reflected through the applied change measures at HoF and M&S. In case of capturing of opportunities and implementation, MoS has implemented creative brand image restructuring to manage loyalty whereas HoF has been instrumental in technology application based customer centric sales development. In terms of sharing of knowledge, customer awareness and conversion management efforts have been implemented at M&S and HoF has striven towards multichannel forefront sale development to merge the offline and online operations so as to enhance the strategic comprehension of multichannel retailing and digital role specific capability enhancement (Sapiens, 2018).

Burke-Litwen Model

This theoretical construct could be identified to be reflective of the various measures which have been implemented by both HoF and M&S to manage the overall business transformation. The transformational factors, which are coloured in purple, in the above demonstrated image are transformational factors which have been managed at both the organisations as extensively embedded processes. The predominant changes have occurred in these segments and substantial consequences have been imparted on rest of the segments as well, especially in the red coloured segments. Transformational factors have been consistently affected by external environments emanating external change drivers. On the other hand, the processes demonstrated in the pink segments are transactional factors which extensive implications regarding the commercial value of the products and services of both HoF and M&S. The implications of implemented changes have also extended on market competitive scenarios, customer preferences and perceptions about the product and services of organisations, the overall economic environment of the markets (inflation, recession or depression) and the existing economic or financial regulatory structures.

D1 Change impact analysis

The impact could be explained that particulars of change process implementation and impact could outline the specifics related to the shared responsibility of the employees and the organisational hierarchies of both M&S and HoF. This has the added benefit of completely precluding any measure of manipulation which the employees could perceive from their stand points regarding the future of their careers. This observation is reflective of the Experiential component of the Bohner and Arnold Change Impact Analysis structure.

Activity 2

P4What are barriers to change? Explain making reference to Individual and organizational barriers)

The change necessity is incumbent on the measure of the intensity of change barriers which might exist in terms of complications of successful planning and application of intended transformations. Todnem (2005) has identified such barriers to be the following:

Individual barriers

1: Restricted understanding regarding the change and associated impacts.

2: Negative attitudes of the employees towards change.

3: Dearth of commitment towards organisational shift/lack of enthusiasm.

4: Previous negative experiences regarding change initiative failures.

Organisational barriers

1: Failure of employee involvement structures.

2: Inefficient communication measures.

3: Resource constraints (budgetary/human/technical etc).

4: Inappropriate management support systems.

M3: Using Force-field Analysis, explain and analyse the driving and resisting forces and show how they influence decision-making in Nokia

The Force-Field Analysis of the business environment of Nokia could outline the organisational change drivers in the following manner:

1: The necessity to formulate extensive strategic partnerships with Microsoft to jointly establish a new mobile connectivity digital ecosystem. 2: The organisational aim to gain value and volume based growth through connecting greater subscribers to the developed market environment. This could be explained as the next billion target. 3: Next generation technology based focused investment and innovation. 4: Greater necessity of speed and accountability based results obtainment.

On the other hand, Diefenbach (2007) have observed the change resistance factors as the following :

1: The constrictions imposed on the organisational dynamism through over reliance on unwieldy operations through Symbian systems. This was a device centric mechanism which was incompatible to the platform and application centric global telecom market. This had exacerbated problems of development of new codes and phone models through increasing numbers of incompatible systems versions. 2: The pervasive fear of executives to acknowledge the inferiority of Symbian over iOS of Apple. 3: Dearth of skills and engagement inclinations with new working models and application ecosystems. 4: Technical incompetence amongst top managerial personnel which contributed to inability to asses technical limitations while organisational objectives development. None of such personnel were engineers. 5: Pervasive organisational culture of agile response provisioning to competitors which institutionalised organisational fear since top leadership elements were all temperamental personnel who were not well accustomed to external environment and remained focused on quarterly target achievement completely.

D2: Critically evaluate how it influences leadership decision-making to meet organisational objectives of Nokia

Implications on decision formulation procedures

The permeation of fear within the lower rungs of Nokia ensured that organisational leadership elements had been exclusively concerned with protection of internal resources and personal careers. Failure of motivation of intermediate managers through heavy handed approaches ensured decisional stagnation. The human factor was excluded from the structural and economic factors and this culminated in the temporal myopia of business insights which restricted innovative leadership abilities. The outcome became evident as the increasing constriction of strategic options for Nokia and the management struggled to find responses to strategic changes in the external market environment.

Apply leadership approaches such as Situational leadership, Kurt Lewin’s change model and Kotter’s 8-step change model in the organisational contexts of Nokia.

a)Explain Kurt Lewin’s change Model

The Unfreezing phase would be required to involve preparation Nokia for change acceptance through collaborative leadership styles to constantly challenge the status quo so that leaders and subordinates would have to embrace the culture of change. In the Change phase, Nokia would require to implement the organisational framework through which emotional intelligence management could be instituted through mandatory combinations of Millennials and Generation Z leaders at the decision tables. Furthermore, at the Refreeze phase, proper supervision would be required to be utilised to measure the organisational structural functional efficacies, the limitations imposed on bureaucracy and resolution of internal rivalries which had prior to the change implementation process. In terms of measuring the impacts, the formulation of learning culture within Nokia could enhance the resource utilisation related psychological perceptions which could further their individual capabilities in the changed working environments.

b) Explain Kotter’s 8-step change model

According to Galli (2018), Kotter’s 8-step change model could be applied to Nokia in the following measures:

1: Formulation of a forum to raise existing issues and to hold discussions regarding the probable solutions of the same (Urgency Creation). 2: Formulation of executive committees with a judicious combination of Millennials and Generation Z based leadership elements so that diverse knowledge, experience and skills could be available (Formulation of Coalition). 3: Acceptance of responsibility of business initiative failures would be required to be accepted by the hierarchical managerial personnel in spite of the possibility of loss of roles, status or bonuses (Creating Vision of Change). 4: Consistent performance appraisal of middle level managers (Communicating Vision of Change). 5: Restructuring of existing top order of executives (Obstacles Removal). 6: Reformation of existing horizontal resource platforms (Short Term Objectives). 7: Reformation of resource allocation and product management policies with reorientation of sales priorities (Building on Changes). 8: Provisioning of effective incentives for outperforming managers (Anchoring Changes).

Explain Situational Leadership.

The element of flexibility is integral to the Situational Leadership process. In this context, fluidity of leadership styles and modifications performed on leadership approaches as per the requirements are instrumental in success achievement. This flexibility of operations and organisational culture could be applied at Nokia through restoration of Nokia Ventures Organisation (NVO) under the leadership of top management executives to as to nurture different critical projects prior to transferring them to the core operations segment. This would be a visionary venture based on dynamist and transformative leadership approaches. The purpose would be to refocus on applications based on Internet of Things (IoT) as well as to realise the multimedia based healthcare growth potentials through future mobile networks.

D3: Critically evaluate the effectiveness of the above leadership approaches and models of change management in delivering organisational change

According to Cummings Bridgman and Brown (2016), the above demonstrated leadership approaches and strategies associated with the minimisation of negative effects of change management have been demonstrative of the requirement on part of the organisational leaders and executives to have a clarified perspective regarding the efficacies of such strategies and the associated assistance measure provisioning to the employees during the change implementation based restructuring process. However, Spangenberg and Theron (2013) have opined that it would be required for Nokia to first resolve the inherent contradiction amongst the long and short term based activities and performance requirements. This could further develop the intended changes in the organisational culture through which learning from failure of own organisation and those of others could be inculcated in development of better products and services.

References List

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Carter, A. and Varney, S., 2018. Change capability in the agile organisation.

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Galli, B.J., 2018. Change management models: A comparative analysis and concerns. IEEE Engineering Management Review, 46(3), pp.124-132.

Jackson, P. and Sparks, L., 2005. Retail internationalisation: marks and spencer in Hong Kong. International Journal of Retail & Distribution Management.

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PENDLETON, D. and FURNHAM, A. (2012) Leadership: All You Need to Know. London: Palgrave Macmillan.

Rippin, A., 2005. Marks and Spencer–waiting for the warrior: A case examination of the gendered nature of change management. Journal of Organizational Change Management, 18(6), pp.578-593.

Spangenberg, H. and Theron, C., 2013. A critical review of the Burke-Litwin model of leadership, change and performance. Management Dynamics: Journal of the Southern African Institute for Management Scientists, 22(2), pp.29-48.

Wilson, D., 2016. Marks & Spencer: the quest to master the new millennium. The Business & Management Collection.