CHANGE MANAGEMENT

Organisational Change Management

By



INTRODUCTION1

EVALUATION OF THE CHANGE PROCESS2

MANAGING ORGANISATIONAL CHANGE3

AREAS OF ORGANISATIONAL CHANGE6

DRIVERS OF CHANGE6

Internal Drivers7

External Drivers7

DRIVERS OF CHANGE IN TESCO7

Developing Customer Value8

Increasing Customer Base8

Innovations of Technology8

Competition8

Labour Cost9

THE PROCESS OF ORGANISATIONAL CHANGE9

OBJECTIVES OF CHANGE MANAGEMENT AT TESCO11

THE CHANGE IMPLEMENTATION PROCESS11

RESISTANCE TO CHANGE12

RESISTANCE MANAGEMENT AT TESCO13

SYSTEM FOR UNDERSTANDING AND INVOLVING OTHERS IN THE PROCESS OF CHANGE AT TESCO14

Stakeholders14

Measures or Processes15

Effectiveness of Communication15

Effectiveness of Training15

EXTENT TO WHICH CHANGE WAS SUCCESSFUL IN MEETING OBJECTIVES AT TESCO16

Increase in Sales16

Cost Effectiveness16

Customer Satisfaction17

IMPLEMENTATION OF MODELS FOR ENSURING THE CHANGE AT TESCO17

Business Process Reengineering18

Kaizen18

CONCLUSION19

Organisational Change Management

Introduction

Tesco is a multinational chain of retail stores, the headquarters of these retail stores are in the UK. In the year 2008, Tesco became the fourth largest retailing store in the world, transforming the fifth largest distributor Metro AG, the first movement of positions among the top five companies in the sector since 2003. Originally, Tesco was specialising in drinks and food, it has expanded into areas like software, dental and medical assurance, telecommunications, internet services, digital downloads, compact discs, renting and selling DVDs, financial services, electronics and clothing.

Organizational change is inherent in the activities of any company. The company needs to change, because changing the environment in which it operates. An organization that cannot be changed, no longer count in the modern economy. Making organizational changes in the company is usually conscious process, organized and controlled by the operator. This is especially when change is forced (e.g. by changing the labour laws) or if the change is needed (e.g. to improve the process of distribution of goods). It happens, however, that the changes taking place in the company involuntarily (e.g. through interaction with clients or conduct new employees). Among the main reasons for introducing organizational changes are mentioned:

Changes in the company during its operation (e.g. an increase in the number of employees, the introduction of new devices, change of location, the use of new communication systems, job rotation, the change of the legal form of business, etc.);

Changes in the business environment (such as the emergence of a competitor, the introduction of new management methods, decrease labor force skills, changing labor laws, natural disasters, the collapse of sub-contractors, etc.).

Errors in the same style of the enterprise (e.g., hiring the wrong employees, generating excessive costs, Failure of projects to finish, high staff turnover, conflicts between employees, etc.)

Organisations that are able to compete effectively in today's rapidly changing environment of business, that is characterised by economic globalisation, improper information technology, restructuring, downsizing, and new employee-employer relation, should be ready to bring considerable changes in the mean they operate. In distinct areas; these changes can be identified. For instance, these changes can be observed in behaviour and attitude. On the other hand, the major changes in organisations are technological ones. At times, these organisational changes are not aimed to bring change in behaviour; however, these changes more or less always do in some manner. One more type of change is related to replacing workers; when higher management is not satisfied with the productivity rate, ...