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Organisational Change & its Causes

Organisational Structure &


Change Management
Student: - Muhammad Tayyab Riaz

Student ID: - SC1165

Course Name: Organisational Management and structure


Program/ Major: Business Administrative Management
Research Question or Problem: Analyse organisational Change & Causes.
Number of Words in the Body of the Course Paper: 1000 Words
Adviser/ Tutor: Mr. Theo
Reason for taking this course: To get the knowledge and understanding of
Organisational Structural change & its causes.

Organisational Change & its Causes

Executive Summary:This paper is aimed at discussing the impact of change in the organisation and its causes. In this
paper organisational management is mainly concerned with the changes in the organisation and their
influence on the organisational management.

Organisational Change & its Causes

Table of Contents
Introduction...........................................................................................1.0
Managing The Change..........................................................................1.1
U.K Retail Industry...............................................................................1.2
Tesco.......................................................................................................1.3
Change Management Tesco.................................................................2.0
Types of Organisational Change.........................................................3.0
What Causes The Change in TESCO.................................................4.0
References..............................................................................................5.0

Organisational Change & its Causes

1.0 Introduction
The change is destined in the birth or growth of the organisation. In current business world, most of
the organisations are facing dynamic and aggressive changing in the business environment. In order
to survive in the modern business cosmos or planet, there are only two flipsides for the organisation
available, change or die; there is no third alternative. Organisation that learn, endure and handle
up with changes will progress and flourish and the other who fails to do so will be wiped out. The
chief compulsion which make the distortion or change desirable but inevitable are technological,
economical, political, social, legal, labour and international market environment. The recent survey of
some of the worlds major organisation have shown that the successful organisation are those that
are continuously interacting with the environment and making changes in the structural design or
strategies according to the need.
According to BARNEY AND GRIFFIN, the primary reason cited for organizational problems is the
failure by managers to properly anticipate or respond to forces for change.
Thus in the dynamic society surrounded by current organizations, the question if change will occur is
no longer relevant. Instead, the issue is that how the managers flourish with the inevitable crossfire of
changes that confront them daily in attempting to keep their organizations applicable and current. In
any other way the organization will find it difficult or impossible to survive.

1.1 Managing of Change


We can describe the change as the alteration of making the thing different.
The word change refers to any alteration which occurs in
the overall work environment of the organization.
From the above definition we can closure that the changes ahs following characteristics;
1. Change result from the pressure of both internal and external forces in the organization. It
disturbs the existing equilibrium in the organization.
2. The change in any part of the organization affects the whole of the organization.
3. Change will affect the various part of the organization in varying rates and speed and degree
of significance.
4. Change may affect people, structure and technology and other elements of the organization.
5. Change may be reactive or proactive. When change is brought about due to the pressure of
external force, it is called reactive change. Proactive change is initiated by the management on
its own to increase organizational effectiveness.
http://www.scribd.com/Dabang_Rana/d/30511072-Managing-Organizational-Change-andInnovation

1.2 UK Retail Industry


The retail in the UK is the most ambitious and antagonistic and fast growing one. By end of 2008,
11% of Vat registered businesses in the UK were retailers, with the total number of currently at
180,875. Approximately 8% of the GDP is generated from the retail sector of UK, balancing about
one fifth of the UK economy. In 2007, the total combine sale of this (retail) sector in the UK was larger
than the conjoin economy of Denmark and Portugal, 265 billion of sales was done by the retail
sector.

Organisational Change & its Causes

1.3 Tesco
Tesco is the largest retail chain of UK and has outlets in every part of the country with 2,115 stores
and 280,000 stores. Internationally it is the third biggest chain in the world, employing 440,000 people
in 4000 stores across 14 countries.
1.1a Tescos Competitor
Tesco, 14 years before overtake Sainsburys as UKs biggest supermarket. Tescos main operation
is sales of grocery and household appliances. Four major supermarket chains in the UK have
following market share;

Supermark
ets

Consum
er

Tesco
Asda
Sainsbury's
Morrisons

6,351,531
3,410,431
3,175,543
2,233,137

Marketshare Aug
2008
31.60%
17.00%
15.90%
11.10%
Source:

+/-from July
2008
0.3%
0.1%
0.1%
0.2%
TNS-World plane

1.1b Self Check Out Machine


This introduction of the self checkout was strategic change. The purpose of the self checkout was to
accelerate the check out processes and reduce labour cost associated with point of sale.

http://www.scribd.com/doc/38560002/Change-Management-TESCO

2.0 Change Management Tesco


Change management is the study of why organisation need to change, how change affects, how to
response to change in the environment.
Routines associated with effective change management are:
1. Establish a clear change management strategy and communicate this vision with other
organisations.
2. Communication is the most effective key to successful implementation.
3. Creation of an open climate to express individual creeps and use of positive ideas within the
organisation.
4. It is important to set clear targets with major change programs.
5. Success of the organisation lies not only in specific skills but also in creating an alternative
type of organisation.

Organisational Change & its Causes

3.0 Types of Organisational Change


The organisational change can be differentiated in many different ways; following are some of the
types of organisational change;

Incremental Change
Incremental change is very important for the successful change management, in order to the
organisation prolong. We must break everything down into bite size pieces. If we dont, the
employees will conquer and the organisation will have to face moral suffer.
Incremental change is highly significant change and may stop employee resistance
http://managingabusiness.com/change/incremental-change

Transformational Change
A change in the organisational culture is essential and it comes out from the previous strategy
and evaluation of the organization, which the organisation has used in the past. It usually
helps the organisation to regain its cardinal and key alignment with its environment.
An organisation may need more fundamental transformational change if it has drop collision
with the market change.
http://www.businessdictionary.com/definition/transformational-change.html

Strategic Change
The strategic change means changing in the organisational vision, mission, objectives and the
adopted strategy to achieve the organisational goals. It deals with the board and organisationwide issue. It is used to understand that how the competitive subjection are attempting
changing their strategy time to time.
http://wiki.answers.com/Q/What_is_strategic_change

4.0 What Causes The Change in TESCO


In the 1990s Tesco was the midsized retailer in the U.K. After that TESCO applied effective and
efficient market strategy to become U.Ks best retailer and today it has become one of the big retailer
of the world.
The key and the major strategies of the TESCO will be discussed below;

Organisational Change & its Causes

Creation of Value for Customers


Tescos strategy is to create more value to its customer by implementation of self-checkout in
order to make the shopping experience exciting for its customers.
Growing Customer Base
There are many reason of the success of the TESCO, one of which is its fast growing
customer base. They implemented self check out in order to give ease to their customers on
check out. They can use the self check out which is faster and simple.
Technological Innovations
In the growing age of the technology it is important for the organisation to enhance its
technology if they want to be successful. Tesco has implemented the self check out to improve
its operational efficiency.
Cost of Labour
Tesco maximize its profit by implementing self check out machine and reduce the labour cost.
For instance instead of employing five cashiers Tesco has provide the means of five self check
out machine and only cashier will be required to attend customers on five machines.

5.0 References
http://wiki.answers.com/Q/What_is_strategic_change
http://www.businessdictionary.com/definition/transformational-change.html
http://managingabusiness.com/change/incremental-change
http://www.scribd.com/doc/38560002/Change-Management-TESCO
http://www.scribd.com/Dabang_Rana/d/30511072-Managing-OrganizationalChange-and-Innovation