Unit Number-17 Understanding and Leading Change Student Name: Student ID: Contents Introduction ..................................................................................................................... 2 Task 01 ........................................................................................................................... 3 Evaluating How External and Internal Drivers of Change Affect the Leadership, Team and Individual Behaviors within an Organisation .................................................................... 3 Internal Drivers of Blake Logitech ................................................................................ 4 Strength of Internal Drivers .......................................................................................... 4 The weakness of Internal Drivers ................................................................................ 5 External Drivers of Blake Logitech ............................................................................... 5 Strength of External Drivers ......................................................................................... 5 The weakness of Internal Drivers ................................................................................ 6 Measures that Can Be Taken to Minimize the Negative Effect of Change in Organizational Behaviour ........................................................................................................................ 6 Evaluating the Measures ............................................................................................. 7 Critically evaluates the long-term implications of internal and external drivers of change within an organisation...................................................................................................... 9 Task 02 ......................................................................................................................... 10 Barriers of Change and Their Influence on Leadership Decision-Making...................... 10 Force Field Analysis of Coca-Cola ................................................................................ 12 Task 03 ......................................................................................................................... 14 Applying Different Leadership Approaches to Dealing with Change to a Leadership Change in a Range of Organisational Context .............................................................. 14 Evaluating the Extent to Which Leadership Approaches Can Deliver Organisational Change Effectively ........................................................................................................ 22 Lewin’s Change Management Model......................................................................... 22 Conclusion .................................................................................................................... 24 1 References .................................................................................................................... 25 Introduction Change is a part of human life which cannot be detached from humans. In every step, humans faced changes and tried to cooperate with the changes. Business is a source of living for humans and this sector also faced changes. In the modern era, it is important to understand the business changes to operate the business effectively. To clarify these topics, this report will discuss changes, drivers of changes and positive-negative impacts of changes in the context of Blake Logitech. 2 Task 01 Evaluating How External and Internal Drivers of Change Affect the Leadership, Team and Individual Behaviors within an Organisation When a business goes through changes, different drivers influence the leadership, team and employees. These drivers have some positive aspects and negative aspects. By analyzing the strength and weakness of these drivers an organisation can get fruitful output by the process of change (Steers and Black, 2015). In this section, the internal driver of changes and external driver of changes will be discussed in the context of Blake Logitech. Strengths Weakness ● Knowledge and skills of the employees. ● Better production process than competitors. ● Unique design and features of the ● Lack of innovation. ● Does not have strong public relation department. ● Unclear instructions from the management. products Opportunities Threats ● Tech industry is growing rapidly in the United Kingdom ● Media and customers get excited about the new product launch ● Developing countries demanding tech products ● Competitors are launching innovative products every year. ● Youtube reviewers are less interested in Blake Logitech ● Competitors have a better marketing strategy. Table 1: SWOT Analysis of Blake Logitech (Self-made) 3 Factors Analysis Political The United Kingdom has a stable political environment for tech companies like Blake Logitech Economic The economic environment is not that much pleasing because of COVID-19 Social People are interested in tech products and they want performance boost with durability. Technological Next-generation gaming is evolving and opportunities are available to do well with the right decisions Environmental Tech products somewhat harm the environment but durable products can reduce wastes Legal The United Kingdom has tech-friendly rules and regulations but to do business internationally Blake Logitech may face difficulties in developing countries. Table 02: PESTEL Analysis of Blake Logitech (Self-made) Internal Drivers of Blake Logitech The internal drivers of Blake Logitech are Production, Company Structure, and Internal Communication. The effects of these drivers are described below: Strength of Internal Drivers ● Applying in Leadership: In Blake Logitech, leaders are getting an extra edge by the knowledge and skills of employees because the leaders can get things done by the employees as early as possible. ● Applying in Team: The team has high productivity which is necessary for tech companies like Blake Logitech. Blake Logitech is getting produced products before the deadline. 4 ● Applying in Individual Behavior: Everyone in Blake Logitech has good time management and focuses on work. It helps to reach the goals and keep the company financially stable. The weakness of Internal Drivers ● Applying in Leadership: In Blake Logitech, leaders has no personal relationship with the employees because of a long chain of command. It causes the communication gap. ● Applying in Team: In Blake Logitech, the team does not feel motivated all the time because of the boring leadership approach. Their innovation is not being used by Blake Logitech. ● Applying in Individual Behavior: Big portion of the people in Blake Logitech is feeling demotivated and sad because of monotonous work routine. External Drivers of Blake Logitech The external drivers of Blake Logitech are technological environment, geopolitical environment and economic environment. The effects of these drivers are described below: Strength of External Drivers ● Applying in Leadership: In Blake Logitech, Leaders are focusing on product development because of the high demand in the market. Therefore, they need an innovative mind and innovative leadership ● Applying in Team: In Blake Logitech, the team has confidence over their work that it will make good results because of the positive technological environment and a stable political environment. ● Applying in Individual Behavior: Everyone in Blake Logitech has a good sense of tech industry so they are applying the knowledge and skills to bring out the best. 5 The weakness of Internal Drivers ● Applying in Leadership: In Blake Logitech, Leaders are concerned about expanding the business in developing countries because these countries often do not have tech-friendly rules and regulations ● Applying in Team: In Blake Logitech, The team is concerned about the economic environment because people are losing jobs in this pandemic. ● Applying in Individual Behavior: Economic environment affects the individual behaviours also like employees of Blake Logitech always stay in fear of sickness and income drop. In a nutshell, Blake Logitech has good potential to do well in the tech industry. The leaders need to focus on the innovation-friendly environment within the organisation. The management needs to assure the employees about job security and hiring capable manager and employees in public relation department can bring various opportunity to get exposure. Measures that Can Be Taken to Minimize the Negative Effect of Change in Organizational Behaviour Process of Changes needs attention from the management to keep the company stable. Changes can bring negative or positive impacts on the organisation (Czichos, 2014). To reduce the negative impact it is important to take some measures which will be discussed in this section. Change can impact leadership. The leaders may shift to innovative leadership approach from the transactional approach. Change can affect employees. If they cannot follow instructions then it might be a problem for Blake Logitech. Changes also affect reputation. By bringing unique changes Blake Logitech can be the Center of attraction. On the other hand, wrong control over changes can affect the company badly. To avoid the negative effect Blake Logitech can apply the measures described below: 6 ● Proper Defining of the Process: The employees need to know every detail of the change process because they are going to execute the steps. Blake Logitech management can present the process details in front of the whole team. A PowerPoint presentation and Excel sheet for the record can make the task easy (Czichos, 2014). ● Effective Feedback Loop: A goal or objective will be set and managers will assess the real outputs compared to expected goals. Blake Logitech Managers will point out the faults and give feedback according to the faults (Onwuchekwa, 2015). ● Effective Communication Process: Verbal, non-verbal and written communication should be clear between managers and employees. Blake Logitech managers need to communicate directly with respective employees and employees need to ask respective managers about the work (Czichos, 2014). ● Improved Coordination: Dots need to be connected between every employee and departments. Coordination means every employee and the department will know about what is going on with others. The goals and timeline will be connected. Blake Logitech can apply improved coordination to make the workflow smooth (Onwuchekwa, 2015). Evaluating the Measures In this section the above-mentioned measures will be evaluated: Strength of Proper Defining of the Process: the employees of Blake Logitech will have a clear idea about what is going to happen and what they can contribute to the process. It will improve the productivity level. Strength of Effective Feedback Loop: Employees of Blake Logitech will be able to know the faults and improve their task. Reaching the goal will be more effective with this measure. Work accuracy will improve. 7 Strength of Effective Communication Process: The relationship between leaders and employees in Blake Logitech will improve which will affect the office environment. Employees will get clear instructions about their responsibility and managers will be able to conduct them correctly. Strength of Improved Coordination: Teamwork will improve and efficiency of Blake Logitech will boost with this measure. Proper coordination will result in quality product and every employee and every department will be part of progress. The weakness of Proper Defining of the Process: This measure can be timeconsuming and if some employees of Blake Logitech miss the meetings, it will be difficult for them to coordinate with others. The weakness of Effective Feedback Loop: Some managers of Blake Logitech may give unnecessary feedback to keep the employees busy which may result in employee dissatisfaction. The weakness of the Effective Communication Process: This process may give birth to jargon in Blake Logitech. Employees may influence managers by unethically praising the managers. The weakness of Improved Coordination: If any team or employee fails to complete any task because of unavoidable circumstances then the whole workflow of Blake Logitech may suffer. Finding a replacement can be a time-consuming process. In a nutshell, it is suggested that every measure has some positive side and few negative sides. But the measure can give efficiency boost to the organisation while processing a change. 8 Critically evaluates the long-term implications of internal and external drivers of change within an organisation Blake Logitech is a tech company and it needs efficient innovative products. Both internal and external drivers of change can help the company to go through a successful change. A critical discussion about the implications of the drivers of change will take place in this section. Internal Drivers of change Internal drivers of change like production process, communication, company structure, etc. influence the process of change. By using each of the drivers with proper attention is what a manager needs to do (Ziegler, 2015). The production process is already doing better than the competitors but the management needs to keep eye on the cost of production to maintain margin. The company structure is not that much innovationfriendly. To compete in the market, Blake Logitech needs to reconstruct the company structure so that employees can pitch the innovative ideas and managers can evaluate fast. Blake Logitech has strict communication system which does not create personal bonding within the organisation. Managers can communicate more with employees with care and empathy. These will help in the long term. External Drivers of change External drivers are a bit risky for Blake Logitech because it cannot control those drivers but assuming the situation and making a draft plan for possible incidents can help the company in the long run (Ziegler, 2015). Using the advantage of a technological environment is necessary for Blake Logitech at this moment. But the company should choose wisely in which area of technological environment it should invest. Building good relationships with other countries can enable Blake Logitech to expand their business. The company needs to evaluate the rules and regulations before this step so that the geopolitical environment cannot do any harm to the company. Budget accessories can improve sales in the pandemic situation while maintaining margin. But it is not suggested to decrease the standard price and quality. 9 Task 02 Barriers of Change and Their Influence on Leadership Decision-Making In previous sections, the discussions about change and the aspects related to change is giving an understanding of changes in the business. Changes need management to get good output from the process. Change is time-consuming and is a complex process. In the time of change process management and leaders faces various obstacles. The management needs to take actions according to the situation to keep the organisation stable. Thus, the change of process faces barriers and those barriers influence the decision-making mechanism. For example, Coca-Cola is a popular multinational company and it is operating in more than 195 countries. It produces coke and this product is widely popular among the customers. Despite being so popular this product faced dark period because Harvard Medical and Science has published research where it is said that coke from Coca-Cola is using an extreme amount of sugar which is as addictive as cocaine (Coke Zero (CocaCola Zero Sugar): Good or Bad, 2020). Considering the health hazard, coke faced low sales figures and hatred from the customers and critics. To get rid of this situation CocaCola decided to launch Coke Zero which will be a sugar-free soft drink. To make this change, the management faced objections and barriers which will be discussed below: ❏ Influence of Third-Party: Shareholders, stakeholders and suppliers are considered as third-party while making a decision. They raise questions about the viability of decisions made by the management and sometimes try to restrain the changes because they do not want to take risks (Pollitt, 2016). In the case of CocaCola, related stakeholders made issues to stop the launch of Coke Zero because they were not confident enough about the new product. Their influences create trouble in the process of change. 10 ❏ Lack of Communication: Companies need to communicate the features, advantage, and contents of the product with the customers. But most of the time companies fail to convey the message. It creates a communication gap between the customer and the company (Pollitt, 2016). Coca-Cola failed to convey that the new Coke Zero is a healthy choice for soft drink lover. Thus, the communication gap creates barriers to change. ❏ Lack of Information: Change brings new or modified things. The market often is not ready to accept the changes because there is an absence of information about the new or modified product. Coca-Cola was accused of using an extreme amount of sugar in its product. Information about diet coke and the healthiness of diet coke is absent in the market (Pollitt, 2016). Therefore, no evidence is available to prove that Coke Zero is a healthier option. This lack of information created a barrier to bringing change in Coca-Cola. 11 Force Field Analysis of Coca-Cola Force field analysis helps to find out the influence of the drivers of change. Identified drivers can be used to get a better result from the process of change. In this section, Force field will be discussed in the context of Coca-Cola. Figure 1: Force Field Analysis (Self-made) Force field model consists of two types of forces. Those are Driving forces and restraining forces. Driving forces helps to drive a change and restrain forces creates an obstacle for a change (Dewar and Rigney, 2015). The driving forces and restraining forces of CocaCola are described below: Driving Forces 12 ❏ Customer Demand: Customers of Coca-Cola wanted healthy product from the company. That is why they decided to launch Coke Zero. Here customer demand worked as a driving force of Coca-Cola. ❏ Market Share: After publishing the research paper about using an extreme amount of sugar in coke. Coca-Cola’s market shares in the soft drink industry started to decrease. Therefore, a driving force drives the company to change its portfolio. Restraining Forces ❏ Customer Expectation: Customer expected harmless soft drink from Coca-Cola. Soft drink is junk food and it is close to impossible at this moment to bring a harmless soft drink. Customers expectation is working as restrain force for CocaCola’s change. ❏ Supplier Complexity: Supplier has zero information about the new product. They were thinking about the business deal with Coca-Cola after the change. Because Coca-Cola is decreasing sugar in its product and the supplier may think it will not be profitable to continue the deal with Coca-Cola. 13 Task 03 Applying Different Leadership Approaches to Dealing with Change to a Leadership Change in a Range of Organisational Context Leadership approach affects every aspect of the business. Change is a part of the business and leadership approaches also create differences here. Leaders choose different approaches to tackle the barriers and make the process of change smooth (Daft and Lane, 2015). It is important to pay attention to every detail while leading a team. Three leadership approaches have been discussed below in the context of Coca-Cola to get a clear view of leadership approaches for changes. Transformational Leadership One of the popular and frequently used leadership approaches is transformational leadership. Every company faces a problem and seek solutions. Transformational leadership is an approach where the leader also invests his or time to find a viable solution along with the team. This approach helps to bring the best from employees because the leader motivates them frequently. When Coca-Cola was facing troubles in the soft drink industry the leader and employee decided to shift to another industry. After that CocaCola brought Costa Coffee. This approach helped Coca-Cola to save scarce resources (Daft and Lane, 2015). Transactional Leadership When leaders need to focus on the result rather than the process of the task, they go for transactional leadership. It helps to make revenue fast but the employees may become bored because in this approach challenges are not that much available. Coca-Cola is now at maturity level and soon it will face decline so the company has limited time to make 14 revenue from the soft drink industry. Therefore, the leaders are now more result-oriented and they are not focusing on the process of outputs (Daft and Lane, 2015). It is helping Coca-Cola to milk the products as much as possible before the decline period. As CocaCola is trying to shift to other industries, it is using transactional leadership to get benefit in the current situation. Innovative Leadership Innovation needed to get an extra edge from the competitors. Innovation helps to grab the attention of every party like shareholders, customers, suppliers, etc. To bring innovation the leader needs to approach innovative leadership. It creates an innovationfriendly environment which leads to innovative products or services. Creative and critical thinker leaders often go with this approach. Innovative leadership can save a company from closing the business. This leadership approach is needed to bring back the past glory of Coca-Cola. Coca-Cola brought Coke Zero as an innovation but this innovation did not work well because of other factors. Therefore, logical innovation is a crucial part of innovative leadership (Daft and Lane, 2015). Trait Approach The trait approach to leadership refers to the concept that good leaders come with godgifted abilities. The leaders do not need to learn leadership. The traits of leadership like drive, self -confidence, tolerant, honesty and integrity grow naturally in an individual according to the trait approach of leadership (DuBrin, 2019). To give an extra advantage over competitors Blake Logitech can go for this approach. There are a lot of individual available both within Blake Logitech and outside of Blake Logitech. Hiring leaders with inbuilt leadership traits can turn the company into a profitable company. 15 Figure 2: Trait Approach (verywellmind.com) Systems Approach Dr Ian Macdonald has developed the Systems Leadership approach. This approach uses good virtues of human to create models of ideal leadership, organisational strategy, and social process (DuBrin, 2019). This approach helps build a system which analyses employee behaviour and provide appropriate leadership instructions through different tools. This approach can be used in Blake Logitech when the leaders want to have a closer look at the employees. It will help the leaders to have a better idea about employees which will lead to the ultimate success of Blake Logitech. 16 Figure 3: Key Elements of System Leadership (weforum.org) Contingency Approach ❏ Fiedler’s model: This model based on a concept which expresses that there is no one best style of leadership. The effectiveness of a leader is grounded in the situation (DuBrin, 2019). The model works with two factors - "leadership style" and 17 "situational favorableness". Figure 5: Fiedler’s model (mindtools.com) For example, if a new leader comes in Blake Logitech and getting little trust from the employees then the Leader-Member Relations are poor. If the task is well defined then task structure is structured. The leader’s position power is strong because the new leader is the boss. The appropriate leading approach will be high LPC (Least-Preferred Co-Worker) according to this situation. ❏ Vroom and Yetton’s model: No single leadership style or decision-making procedure fits all circumstances is the main concept of this model. Factors like time constraints, the quality of the final decision, teamwork are needed to be considered before choosing an appropriate solution (Yoder-Wise and Kowalski, 2016). 18 Figure 5: Vroom and Yetton’s model (mindtools.com) These codes represent five decision-making processes which are Autocratic (A1), Autocratic (A2), Consultative (C1), Consultative (C2), and Collaborative (G2). Generally, consultative or collaborative style is more preferable than the autocratic style. ❏ Path-Goal Theory: This model consists of for main functions of leaders. Defining goals for followers, eliminating difficulties that may avert the accomplishment of goals, illuminating the track to attainment goals, and providing provision to followers are the main functions. the directive, supportive, participative, and achievement-oriented are the four-leadership style of path-goal theory. These styles are not mutually exclusive. Mixing the styles may bring good results in some situations (Yoder-Wise and Kowalski, 2016). 19 Figure 6: Path-Goal Theory (mindtools.com) ❏ Situation Leadership: This approach works with a specific situation along with behaviours and attitudes of other relevant people like employees, teammates, etc. Rather than sticking to a single method this approach suggests changing process and methods according to situations (Yoder-Wise and Kowalski, 2016). For example, if Blake Logitech continues to hire new employees for new projects then the strength and weakness may change from time to time. The leaders need to follow this approach in that situation. Telling or directing, coaching or selling, participating or sharing and delegating are the leadership styles that this approach suggests. 20 Figure 6: Situation Leadership (oregonbusiness.com) Leadership Styles ❏ Autocratic Style: This style is strict and employees are bound to follow what the leader says. The employees have no saying in this leadership style, they only follow the instructions (Fries, 2020). This style is appropriate for manufacturing firms. In creative firms, this approach cannot bring any good results. Coca-Cola or Blake Logitech cannot get benefitted by this style. ❏ Democratic Style: This style is suitable for creative firms like Blake Logitech. This style allows employees to speak. The leaders listen to employee’s opinion and consider their suggestion which makes the work environment more enjoyable and participating (Fries, 2020). ❏ Laissez-Faire: This style is less productive because the leader become inactive and employees work on their own. This style is appropriate for those firms which need employees more than leaders. Manufacturing and creative firms cannot get 21 a good result from this style rather it can harm the productivity of these firms (Fries, 2020). In the summary, there are so many leadership approaches and styles are available. The leader needs to understand the situation and employees while choosing a style or approach. Ignoring the employees or situation may result in the worst outcomes for the organisation. Evaluating the Extent to Which Leadership Approaches Can Deliver Organisational Change Effectively Lewin’s Change Management Model Kurt Lewin designed a model for change management in the 1950s and this is still relatable. This model helps to understand the organisation and structured change. This model explains how a cube of ice like an organisation can melt and become an ice cube again. This model has three main stages and those are described below: ● Unfreeze: This is the first stage and the organisation prepare for the change in this stage. To do that it is needed to breakdown the current situation and finding out what is going wrong in the organisation. This step is difficult and needs patience. It is mandatory to point out why the change is needed in this stage. ● Change: In this stage, a company plans the changes it wants. The mangers set the strategies and goals. Employees get to know about the process and understand the whole change. Execution takes place after planning. ● Refreeze: After executing the planes managers refreeze the organisation to get back to a stable situation. This stage works as a sustainable process. A change needs time to get stable. If any employee faces difficulties to fit in the new structure, then proper feedback can help to settle down. According to the discussion, transformational leadership is needed in the unfreezing stage. Because everyone needs to contribute to the thought about change and leaders need to analyse the situation and find a proper solution along with other team members. 22 In the second stage of Lewin’s Change Management Model, Innovative leadership approach need to be implemented because this stage needs creative ideas and innovation and a friendly work environment which can be provided by innovative leadership approach. In the last stage, the transformational leadership approach can be taken again because employees need feedback and need to settle down properly. 23 Conclusion Understanding the change is important to lead an organisation during the process of change. In this report, change and the other aspects of changes have been described which can be used as a resource for a learner who wants to understand changes from the business perspective. To cooperate with the changes in the business world it is needed to understand and execute every aspect of changes and its drivers. Different real examples have been used to relate the theories practically. 24 References Biasca, R., 2017. Change Management. Ediciones Macchi. Czichos, R., 2014. Change Management. Freiburg im Breisgau: Haufe-Lexware. Daft, R. and Lane, P., 2015. Leadership. Stamford: Cengage Learning. Dewar, D. and Rigney, C., 2015. Force Field Analysis. Red Bluff, Calif., USA: QCI International. DuBrin, A., 2019. Leadership. Mason, OH: Cengage. Fries, K., 2020. 8 Essential Qualities That Define Great Leadership. [online] Forbes. Available at: <https://www.forbes.com/sites/kimberlyfries/2018/02/08/8-essentialqualities-that-define-great-leadership/> [Accessed 9 December 2020]. 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