Centre name:
ICS Learn
Candidate name:
ERIC MWAI WAMBUGU
CIPD Membership
Number:
Qualification title:
57016335
Unit title(s):
Unit code(s):
3SCO
Assessment number
Supporting Change within
Organisations
40552/14
*Online Class Date
06 January 2022
*Tutor Name
Matt Clowrey
Draft
☐
1st Submission Date
2nd Submission Date
21057904
ICS student
number:
CIPD Level 3 Foundation Diploma in Human Resource Practice
Formative
25th November 2022
☐
☒
Summative
Word Count
1619
Word Count
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Contents
INTRODUCTION ....................................................................................................................................... 3
WHY BOOCH NEEDS TO CHANGE............................................................................................................ 3
External Factors .................................................................................................................................. 3
Political Factors ............................................................................................................................... 3
Economic Factors ............................................................................................................................ 3
Socio-cultural factors ...................................................................................................................... 4
Technological factors ...................................................................................................................... 5
Environmental Factors .................................................................................................................... 5
Legal Factors ................................................................................................................................... 5
INTERNAL FACTORS................................................................................................................................. 5
WAYS CHANGE AFFECTS ORGANIZATIONS ............................................................................................. 5
Strategic change.................................................................................................................................. 5
Structural change ................................................................................................................................ 5
Technological change .......................................................................................................................... 6
COMPARISON OF APPROACHES TO CHANGE PROCESS USED IN THE ORGANIZATION .......................... 6
Kurt Lewin’s 3 stages change model ................................................................................................... 6
Kubler-Ross change curve ................................................................................................................... 6
Kotter’s 8-Step Change Model ............................................................................................................ 7
Comparisons and Recommendations ................................................................................................. 7
BEHAVIOURAL RESPONSES SEEN WHEN CHANGE OCCURS IN AN ORGANISATION. .............................. 8
WAYS THAT HR CAN SUPPORT INDIVIDUALS DURING CHANGE............................................................. 8
REFERENCES ............................................................................................................................................ 9
INTRODUCTION
Booch is a company that was first started in 2016, that makes fresh, raw kombucha for the Kenyan
beverage market from locally sourced ingredients. They sell in bars, restaurants, yoga studios, gyms
and are available for purchase on online outlets.
Booch’s small batches are not processed in any way and no artificial flavourings or preservatives are
added, so every bit of goodness brewed goes into the bottle and is not compromised. Besides being
made in Kenya, all of the ingredients are Kenyan and as close to organic as possible. The Oolong tea
is grown and fermented in Kenya, the cane sugar from Western Kenya, and the fresh ginger and
berry flavourings from farms across Naivasha.
The company has experienced some exponential growth as the Kenyan market has started to shift
towards sustainably sourced healthy products. Due to this growth, there is a need to change its retail
strategy in order to meet the growing demand of its consumers.
WHY BOOCH NEEDS TO CHANGE
Failure to introduce effective change can have a high impact: loss of market position, loss of key
employees, and reduction in employee engagement and motivation. As Booch’s consumer base
grows, there is a need to take charge of the company’s supply chain and decisions that are made
with regard to the overall corporate strategy that the organization is following. The factors that
affect change are divided into internal and external factors.
External Factors
These are factors that the organization has no control over. A pestle analysis can help the
organization determine the market situation and can also be a form of proactive risk analysis to
respond quickly to changes in the business environment.
Political Factors
Government policy on price stability can prevent high rates of inflation which affects the price of
products and purchasing power of consumers.
Many of the tax and regulatory relief measures extended at the onset of the COVID-19 crisis have
been discontinued in response to the improving conditions. The reduction in value-added tax (VAT)
and corporate income tax (CIT) rates announced following the pandemic expired at the end of
December 2020, but the personal income tax (PIT) relief for the lowest-earning taxpayers (with
monthly incomes up to KSh 24,000) continues (World Bank Group, 2021).
Economic Factors
The economic factors of production, consumption and capital flow have a significant influence on
business success, sustainability and profitability. Governments manage economic factors partly
through tax laws and by controlling interest rates. Interest rates, exchange rates, recession, inflation,
taxes and changes in supply and demand can pose risks to the company.
A good understanding of the economic risks is an important factor in smart decision-making while
adapting to change to develop the most efficient countermeasures to gain a competitive advantage.
Inflation continues to rise across global economies. As per the IMF data, “global inflation is forecast
to rise to 8.8 percent in 2022 from 4.7 percent in 2021”. In Kenya, inflation is creeping upward. In
September, as a monthly count, inflation came in at 9.2 percent up from August’s 8.5 percent (IMF,
n.d.).
Socio-cultural factors
Since the company must increasingly rely on a complex network of suppliers and other third parties,
they are therefore exposed to even greater risks. Most socio-cultural risk factors fall into one of
three categories: demographic, societal/cultural and belief/attitude-related factors.
Demographic factors include population growth, immigration and emigration rates which has been
linked to forced labour which can result in reputation risk of the business if forced labour is
identified in the company’s supply chain (www.ilo.org, 2019).
Technological factors
Technology plays an increased role in the production, marketing and sales of Booch products.
Refrigeration technology has made shipping the product easier increasing its availability. The rise
of social media marketing platforms has led to growth of awareness to the products offered and
further exploitation of these platforms may prove useful to increase sale by raising awareness of the
product.
Environmental Factors
The environment can affect a firm’s business strategy, primarily from the standpoint of access to raw
materials. Some environmental factors to be considered are such as geographical location, the
climate, and weather, waste disposal and other environment-related laws.
Legal Factors
The organization must constantly gather real-time information on current and pending changes in
laws and directives to minimize risk and avoid infringing general economic regulations because this
type of risk factor covers a large number of issues including foreign exchange and trade rules,
property rights and state control of business activities (permits, licenses, concessions).
The owners of Booch have also ventured into craft beer making. In order to make and sell beer in
Kenya, companies need an excise and manufacturing license from the county they reside in.
However, to get a manufacturing license they need to submit beer samples produced from the
equipment that they intend to use for future batches.
INTERNAL FACTORS
For an organization to enact change successfully, it must use its internal factors to determine how it
moves forward, both as a self-contained organizational entity and in response to its external
environment. Internal factors originate from the organization, unlike external factors, and the
company controls these factors.
They include:
-
-
the mission and vision which typically sums up the values of the organization and are the
basis of all the short-term and long-term goals which are the strategic plans for the
organization
leadership style
communication
Organizational culture and structure
learning and development.
WAYS CHANGE AFFECTS ORGANIZATIONS
Strategic change
The business implements strategic change to achieve goals, boost competitive advantage, or
respond to market opportunities or threats. A strategic change includes making changes to the
business’s policies, structure, or processes. The upper management and the Chief Executive Officer
often bear the responsibility for strategic change which may include updating the business mission
as it grows, restructuring and innovations.
Structural change
These are changes that occur due to internal and external factors and involve major shifts in
management hierarchy, team organization, and responsibility attributed to different departments.
Outcomes may include business mergers and acquisitions, job duplication, changes in the market
and process and policy changes.
Technological change
Involves introducing new software or systems to improve business processes. The organization
identifies new technology and implements a digital strategy for improving profitability.
Organizations can invest in digital technologies to manage change initiatives and can leverage digital
adoption platforms to deliver effective employee upskilling and reskilling programs for employees.
COMPARISON OF APPROACHES TO CHANGE PROCESS USED IN THE
ORGANIZATION
Kurt Lewin’s 3 stages change model
When the organization is undertaking changes such as software implementation and digital
transformation Kurt Lewin’s 3 stages change model can aid employees to adapt to change.
Lewin’s change model can be implemented when the organization is changing its processes,
structures, and systems. The change should also be anchored to the organizational culture, such as
sustainably sourcing of raw materials and maintaining the original quality.
Kubler-Ross change curve
Focuses specifically on managing emotional reactions to change. It can be used when hiring new
employees and taking them through onboarding and training. It can affect both new employees and
general employees and therefore adequate communication needs to be done to avoid negative
reactions.
Kotter’s 8-Step Change Model
Focuses more on changing processes and systems. This model is outcome-oriented and provides a
framework for accelerating transformations by creating a sense of urgency and instituting change.
Comparisons and Recommendations
The Kubler Ross’s and Kotter’s 8-step models put emphasis mainly on the people of the organisation
rather than focusing on the change itself, while Kurt Lewin’s model was developed to help leaders
facilitate and understand transitions but does not discuss ways in which leaders can deal with people
who are resistant to change.
Booch's management can use these models to deal with employees' and the entire organization's
reactions to changes. Due to the fact that both the Kubler-Ross model and Kotter's model can
address issues in both individuals and the organizations during transition, they can be utilized and
modified in conjunction with one another to mitigate the disadvantages of the other.
BEHAVIOURAL RESPONSES SEEN WHEN CHANGE OCCURS IN AN
ORGANISATION.
There are various changes to personal transition that is experienced by employees. The Kübler Ross’
Change Curve Model can be used to highlight stages of natural emotional responses.
1. Denial – this is the first stage where an individual sets up a defense mechanism to deflect
the actual occurrence of the change. There is a deep decline of employee productivity in this
stage.
2. Fear/Anger – some people are afraid of coping with the change, afraid for their job security,
and uncertain of their future. Any change initiative has the potential to spiral out of control
in this stage, resulting in significant change failures.
3. Acceptance – this is a borderline positive/negative emotion. It is the final stage of the
change curve as individuals come to terms with change. Once employees accept the change,
you must cement the change into your organizational culture to avoid reverting to old
habits.
WAYS THAT HR CAN SUPPORT INDIVIDUALS DURING CHANGE
People professionals have an important role to play in the change management process. Typical
tasks HR can perform to facilitate change include:
1. Provide a change management plan for training. To evaluate the effectiveness of their
employee development and training programs, organizations can perform these measures,
according to HR Technologist:
 Measuring performance results
 Give pre- and post-training assessments
 Mining data
 Conducting polls and tests
2. Acting as a key communicator about the change – Confusion may occur when determining
expectations of the change. It is important that HR practitioners listen carefully to any
queries that are raised where employees might be expressing personal concerns about their
job security and redundancy situations. HR should lead the stage on monthly or quarterly
review meetings to assess the penetration level of the various changes communicated in the
organization.
3. Help the change team to anticipate resistance and provide resistance mitigation suggestions.
Actions for addressing and mitigating resistance include:
 Utilizing a structured change management approach from the initiation of the
project
 Engaging senior leaders as active and visible sponsors of the change
 Recruiting support from people managers as advocates for the change
 Communicating the need for change, its impacts, and the benefits to employees
REFERENCES
www.ilo.org. (2019). Labour Migration in Africa. [online] Available at:
https://www.ilo.org/africa/areas-of-work/labour-migration/WCMS_670561/lang-en/index.htm [Accessed 6 Oct. 2022].
World Bank Group (2021). KENYA ECONOMIC UPDATE, Edition No. 23. [online]
worldbank.org. Available at:
https://openknowledge.worldbank.org/bitstream/handle/10986/35946/Kenya-EconomicUpdate-Rising-Above-the-Waves.pdf?sequence=1&isAllowed=y [Accessed 14 Oct. 2022].
IMF. (n.d.). Inflation to be Elevated for Longer on War, Demand, Job Markets. [online]
Available at: https://www.imf.org/en/Blogs/Articles/2022/04/27/blog-cotw-inflation-to-beelevated-for-longer-on-war-demand-job-markets-042722 [Accessed 23 Nov. 2022].