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Understanding and Leading Change BTEC Level 5 LSST

4743Downloads1 I Published: 13 May ,2020

INTRODUCTION

Understanding and leading change is identify as an effective concept of developing of involvements to easily analysis the problems which are grow due to initiating and formulation of variation in the business entity. Success and growth of an enterprise in mainly depend on its capability in order to adopt change. Changes is one of the main and essential factor that assist the business organisation to increase their sales and turnover. It is also beneficial for the organisation to maintain their long lasting position in marketplace (Aslan and Reigeluth, 2013.). Management of enterprise plays an important role in finding of such type of changes. For this aim, different number of change impact models are follow by company about early determination of the effect of such modification on leadership as well as team building also. This report is based on Haier and Whirlpool both are electronic industry which are given in this report. This assignment divided into different parts which cover change on organisation operation and strategies. Influence of change drivers on individual behaviour and leadership which are also cover in this project. Different barriers and leadership approach are also determined in this assignment which highly effects on leadership decision making.

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TASK 1

P1 Impact of change on organisational strategies and operations

Change is identify as a scenario which go on due to external and internal forces which are available in the business environment. As per this force something innovative and different are come out in enterprise which highly impacts on their business operations and activities. The effect of variation should be negative and positive which mainly relay on the adaptability of enterprise strategies and policies. Haier and Whirlpool are electronic industry which render their services and products in different nations (Clarke and Persaud, 2011). As different number of internal forces such as technology capacity, lead changes, employees morale and organisation culture in both business. Through having their business operations and function in different nations different number of external forces such as PESTLE analysis (Political, economic, social, technological, legal and environmental). All these are highly effects on company operations in various countries. Thus, both factors largely impacts the lectureship performance and behaviours of team as well as workers also. It is seen that, such kind of variation have more effect on operation and strategies of Haier and Whirlpool.

Requirement for determination of such type of changes:

The main motive behind determination of such kind of modifications in to develop better plan and policy which encourage workers in order to perform effective in accomplishment of common objectives. For this motto, change management effect evaluation models are selected by Haier and Whirlpool. It support in early determination and reduce their negative effects on its future operations and functions (Doppelt, 2017). As different number of chances are collect by the company through recognisation of these modification are explained as below:

Encourage innovation: Determination and formulation of variation encourage the workers in order to enhance their knowledge and skills about effectively take such kind of force in their daily basis activity. This changes support to motivate workforce to maximise their passion further their functions.

Ascertain position of the company in marketplace: If the Electronic business like Haier and Whirlpool, not render focuses on external and internal drivers of modification them it will decrease their competitiveness in marketplace. It gives chances to other enterprise in order to capture large number of market share. So, in order to create their better position and gain competitive edge which is essential to adopt modification.

Team building: Completion of business goals and targets which is relay on the employees working and functioning as a team (Fullan, 2014). Lack of consideration of variation impacts leadership and communication among workforce. So, it is essential for the business to develop effective team which help them to maximise their profitability and productivity ratio.

Haier: It is a Chinese collective multinational home appliances and consumer electronics business entity. It was founded in 1984 by Zhang Ruimin at Qingdao, China, UK. They deals in different varity of products such as consumer electronics, cooling system, small appliances and many other. Main motive of the company is to provide effective quality in their service and products to the customer at reasonable price.

Whirlpool: It is an American multinational production and home appliances market in United states. They deals in different variety of electronic equipments which help them to maximise their sales and revenues in limited time period. Main motive of the organisation is to develop an effective image in marketplace.

Impact of change on business operations and strategy

It is described above that both enterprise deals in electronic products in across the nations. So, there is more significance of internal part in success and growth of enterprise. Similarly, various nation have diverse business surround. In today's world, one of the major alteration which is come out is digitisation (Fyke and Buzzanell, 2013). Through external factors that also effects on business operations. This will have vast effect on the business strategy and policy of Haier and Whirlpool.

Strategies

Haier

Whirlpool.

Marketing strategies

It is one of the main and essential strategy which is used by them in order to maximise customer response in the organisation. There are different kind of marketing strategy are applied by the company such as planning, social media and many other. These are essential and important for the company to easily introduce their products and services to the customer and in marketplace.

It is is home applicants company which deals in different kind of electronic equipments. In this company applied different kind of marketing strategy which help them to easily innovate their new products and services at marketplace. In this company mainly used social media because today's large number of the population are spend their more time on them.

Pricing Strategies

It is also important and essential part of the business success and development. In this company use differentiation pricing strategy which help them to attract large number of customer in limited time period (Gupta, 2011). It is also beneficial for the company to capture large number of market share.

In this business entity apply Sikking pricing strategy which help to attract various number of customer. It is also beneficial and significant for the company to accomplish their long term goals and objectives in certain time. Price of the products is highly beneficial for the enterprise to improve their position at marketplace.

Haier: Haier has planned its calculated net income at 2.45 billion US Dollars and revenues at 32.8 billion by the ending year of 2014. As it was a comparatively new organization it desired to face its challenger successfully and furthermore desired to enter in deeper marketplace and develop a strong consumer base of its own. Haier selected penetrating pricing and competitor-orientated strategy and thence set its commodity prices at boundary lower rate than its competitor companies. Marketing strategies of Haier is also effective over its challengers. The home appliances company and Chinese Multinational consumer electronics was invented in 1984. The business sells the big display of electronics items and white goods including computers and mobile phones, kitchen and home appliances.

Whirlpool. In order to come at a definite strategy the business entity has fix a unit that determine and analyse the different outgo that incurs during the possession as well as production of the goods by the customers. This cognition in arrangement with the pricing strategies of the competitor business organisation is essential in deciding the existent pricing policy of the brand name or product. Due to its arranged resourceful warehouses, the business entity has been capable to reduce the costs of its items by quite a margin. Whirlpool develops the strategy of target market, market segmentation, manufacturing and distributions. Whirlpool is the first factory-made commodity of home home appliances. The market share of company is above 25%.

P2 Influence of change drivers on leadership and behaviour

There are mainly two types of drives of variation which are known as external and internal factor. Both factors are highly effects on team, leadership and individual behaviours. These are explained as below:

Internal drivers: This type of factor existing within an enterprise. The internal changes drivers which are available in Haier and Whirlpool are technological capacity, employees morale, organisational culture, financial resources, poor delivery and so on (Hrebiniak, 2013). All these factors decrease the business capacity in order to achieve their goals and objectives within the allotted time period.

Impacts or effects of internal drivers of change: These factors have more effects on the team and employees behaviour which are functioning in Haier and Whirlpool. This will impacts on the quality of leadership among the workforce which fall down their capability to perform and work their various functions in an effective manner. There are some impacts of internal drives on business performance and effectiveness which are determined as below:

Employee morale: In the organisation confidence level of the workforce is more essential while performing activities and function of business this assist to enhance their strengths and skills. If the employees morale is not high, then they are not bound up to their jobs. Thus, it will develop difficulties and issues in development of effective group. In order to enhance their passion level, company should render adequate job conditions.

Poor delivery: To accomplish success and growth electronic business like Haier and Whirlpool require to have proper number of provider to give their products and services to the clients (Keppel and et. al., 2012). Poor delivery is identify as a main issue in firm which reduce the profitability and sales margin of the company.

Financial management: Sufficient amount of the money is foremost element for each and every organisation. In the organisation different departments are work such as human resource, production, marketing, research and development, needs proper amount of capital to do their all functions and activities properly. This will impacts on management decision-making power about introduction of new assets, purchase of raw materials, optimum utilisation or resources and many other.

External Drivers: It is identify as a factor which are existing in external environment of company. In this factor, management of bother enterprise such as Haier and Whirlpool doesn't have kind of control. In these force different factors are considers like customer satisfaction, political, competitors, economical and so on. These elements have negative as well as positive effects in employee’s and team behaviours.

Effects of external drivers of change: There are different external factors which highly effects on individual as well as team behaviours. These are shown as below:

New challengers: These are main problem for each and every business because they already innovate new techniques, approaches and ideas to satisfy basic and different wants of clients (Malenfant, 2010). They renders such goods which are already having new features at affordable prices. Thus, it is not easy for old organisation in order to modify their goods in quickly because they have various number of assets.

Technology: It is identify as essential factor which is needed by the business. This force consider regarding discoveries, inventions and effective approach which support to change over their raw material into finished goods. This technology give better chances to the Haier and Whirlpool to maximise their sales and do all activities in proper manner.

Economy: This factor identify the economic situation of the nation that has direct relation with business performance. If any kind of financial change or fluctuations are develop like deflation and inflation rate in nations has negative effects on business functions and activities of Haier and Whirlpool. This factor also decrease the motivation and leadership of entire workforce who are working in the organisation.

Customer satisfaction: It is one of the main and essential part for the business to improve their position at marketplace. This force consider regarding the process of evaluation by Haier and Whirlpool that products and services renders by organisation with motto to fulfil basic demands of audience (Mukherjee and et. al., 2012). It perform as an indicator about evaluation of business performance. It also encourage workforce to maintain their performance and effectiveness for long duration.

Political: It is another factor which is complete rely on rules and regulations of government. This force mainly related to policies, political stability, legislation, norms and conditions. Haier and Whirlpool. Having their business operations and functions in different nations where the tax policy and legislation are not same. This will impacts the leadership characteristics and administration decision making.

P3 Measures that can be taken to minimise negative impacts of change

Sometimes, it is not easy for the business in order to adopt and handle variation. These are difficult to bring off these and decreases its effects, Haier and Whirlpool take different evaluations. Formulation of different models and approaches support the administrator in recognising the effects of change and fetching appropriate actions to decrease its effects (Parsons and Cornett, 2011). In this some models and theories are used by the manager which are determined as below:

Continuous improvement model: It is one of the effective model which support the administer of Haier and Whirlpool in making continuant betterment in its operations as well as process also. It help in reducing the effects of variation and achievement of long term objectives and goals of enterprise. In this PDCA cycle model is more essential and valuable factor which are determined as below:

PDCA Cycle model: This framework support in maximising the income and performance of company. This factor consist four important phase that is essential for the Haier and Whirlpool to be followed:

P: Plan: For seeing introduction of variation successfully, opportunities or chances are recognised and plans are implemented by administer.

D: Do: Managers of the both organisation formulate variation at this stage. In this they analysis it as small ground so that changes effectiveness can be assessed.

C: Check: Under this phase accurate results are measured and checked by quality one an output are calculated by administer that support in identifying the impact of change.

A: Act: At large level variation are applied that impact in a positive manner and if its effects in negative way then, mangers applied other models and theory (Suchman, Sluyter and Williamson, 2011).

PDCA Cycle model is more essential and important for the company to maximise their income level as well as competitive advantages within predetermined period of time. It is also useful for the business entity to reduce employees turnover and accomplish their goals and objectives easily. Haier also apply this theory with the motive to manage all activities and functions of company.

Bohner and Arnold change effect analysis theory:

Application of such kind of theory help the administrator in decreasing the negative impact of change on business leadership as well as behaviour also. Better results are identified impressive evaluation are taken by management to find wanted outcome. Performance of this concept change the administrator in order to analysis the business performance with standard. It assist the decision maker in scheming appropriate policies and plans. The concept renders way to worker that alter them to efficaciously adapt alteration and decrease its adverse effects. Risks, that originate due to utilising modification can be easily known by management by application and importance of this theory.

This model and theory is essential and effective for the enterprise to increase their sales and revenues. Haier use this model with purpose to overcome all issues and difficulties which are arise in the workplace. Thus, it is effective and useful for the electronic business to gain competitive edge within an organisation in an effective and efficient manner.

TASK 2

P4 Different barriers for change and their influence on leadership decision-making

In the organisation different number of barriers and difficulties which are effects on business either externally and internally. Such obstacle impacts the capacity and capability of company about adoption of such variation (Thomas and et. al., 2013). To see maximum regarding such aspects, administration of both Haier and Whirlpool decide to apply Force Field model which is explained as below:

Force Field model: This framework identify the similarities between the such factors which are in against and favour of modification in the firm. This analysis consist five phase which support to collect all necessary data. Thus, it play vital role in formulation of modification in the company.

Phase 1: Plan for change: It is a first stage which consists description of visions and goals for which an enterprise get such modification in their business activities and operations. In this main motto of Haier and Whirlpool behind acceptance of all variation is to accomplish competitive edge, development of innovation, large amount of market share, gain trueness of clients and many other.

Phase 2: Designation of forces for modification: It renders regarding such which are important reason of variation in the business (van der Voet, Kuipers and Groeneveld, 2015). It can be classified into external and internal parts. There are different internal and external forces which are faced by the Haier and Whirlpool such as Outdated machinery, require enhanced productivity, low team morale, customer's demands, uncertain business environment, etc.

Phase 3: Finding of factors against alteration: It is third stage in this role of manager is to find out different factors against changes. In this they identify internal factors like organisational Structure, Fear of unknown etc. In case of external factor they find out government regulations and Commitment to partnership.

Phase 4: Assign scores: This stage mainly consist regarding the rating of forces as per its weaknesses and strengths about causing authority on organisation activities or functions. Scores that should be allotted to internal and external forces which are in against and favour.

Phase 5: Investigation and application: It is a last phase in this role of the manager is to evaluate the consequences and effects of factor of variation and formulate them in organisation effectively. It assist to achievement of long term goals and objectives which are explained below:

Barriers of variation and their impacts on decision-making: In the organisation different kind of barriers like customer's satisfaction, government, workers etc. which highly impacts on capability of Haier and Whirlpool in order to formulate such modification in an effective and efficient manner (Yoder-Wise, 2014). These factors also influence on decision-making ability of administration which is identify as below:

Workers: These are important and foremost part for Haier and Whirlpool to render their products and services across the globe. If the workforce are unready to work and perform on innovative technologies and machineries then it impacts on business strategies and decision regarding achievement of their predetermined objectives.

Government: Legal authority of various nations have various rules and regulations which is needed to follow by enterprise. If the regulations of few nations not follow Haier and Whirlpool to formulate variation then it will decrease their profitability and effectiveness in such part of market.

TASK 3

P.5 Interpretation of leadership approaches to deal with changes

There are various leadership approaches through which organization can deal with different changes (Bin Taher, Krotov and Silva, 2015). Different leadership approaches are used to deal with changes and they use many methods and techniques so that they can solve all problems and issues in the market. Hence firm can deal with many changes which are occurred in the company. Thus as a result they can maintain good image in market. Thus various leadership styles followed by Haier and Whirlpool are-

Laissez Faire: In this leadership various approaches are used. Leader allows all members of group members to take different decisions and hence they can make effective and efficient decisions in the company. Thus as a result they can make effective an efficient decisions in the firm. Hence as a result they can make efficient decisions. Advantage is that they can give their suggestions to the firm while if they do not perform well tot can hampers productivity of the organization. So manager has to consider various factors while implementing this leadership approach.

Autocratic: Manager themselves take whole decision regarding the company. They do not allow all members to the effective and efficient decisions for the company (Brazer and Bauer, 2011). Through this all employees cannot give their advices and suggestions regarding in any matter of firm. Thus as a result they cannot take proper and efficient decisions. Through this it hampers the productivity and reduce the profits of the firm. Thus as a result they cannot take effective and efficient decisions for the firm. Hence as a result firm cannot maintain string position in the market.

(Source: leadership Styles, 2017)

Participative: In this leadership style employees can participate in all decisions regarding the firm. All staff workers can give their advices and suggestions regarding in any matter. Through this they cannot take about decisions (Brisson-Banks, 2010). Hence it directly de motivates the employees and they cannot take all decisions. Hence as a result firm cannot properly performs all activities and tasks and thus it cannot create strong position in the market as well as in front of customers. Thus as a result leader cannot deal with changes properly in the firm.

Transactional: In this leadership style manager give various rewards to all members of group who had achieved their targets. They can give punishment to employees if they are not performing well in the company. Thus as a result it can increase the zeal and potential of all staff members to perform better. Hence as a result they can create different strategies and policies t deal with the changes. As employees are motivated then they give good results and they can perform better. Hence as a result firm can earn more profits and can enhance the market share.

Transformational: In this leader sets goals and targets for all employees. They motivate the employees to perform better (Ellenbogen, Berger and Batjer, 2010). Hence as a result they can perform well and they can easily achieve their targets. Through this they can motivate all members and can easily accomplish their goals. They also interact with all employees so that they can solve all their problems. Through this they can maintain strong position in the market as well as in front of all users. Thus firm can easily expand in various countries.

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CONCLUSION

From the above mentioned report, it can be concluded that changes is one of the main and foremost part of the business success and development. Due to external and internal factors of change management of both organisation determines the requirement to formulate chage effect analysis model which decrease the uncertainty, it is mainly associated with such kind of variation. Company use different models and theory in order to ovecome such change in the organisation such as Continuous improvement model, Bohner and Arnold change effect analysis theory, Force Field model and different kind of leadership approaches. All these are highly essential and beneficial for the company to increase their performance and reduce uncertainty in the enterprise.

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REFERENCES

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  • Brazer, S.D. and Bauer, S.C., 2011. Leading Change to Improve Student Achievement: Novice Leaders Take the Reins. Scholar-Practitioner Quarterly. 5(2). pp.168-187.
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  • Gupta, P., 2011. Leading innovation change-The Kotter way. International Journal of Innovation Science. 3(3). pp.141-150.
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