Historical Context Of Change And Its Effect

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Undoubtedly we can say that, change is the only thing that has got a permanent nature in the world. Change is a never-ending process. It occurs in every people, society, nature, situations and the same case with business too. Business sector undergoes continuous changes. It is very necessary if the change is leading to an improvement. For the development of business environment and the management modern and advanced changes should be adopted by the business man. Certain changes include difficulties and others bring prosperity to the business. Due to economic variations, political factors, life style and income of people, natural factors, competitors movement many organizations welcome changes.

Organizational change can be defined as the different ways through which the organization attains their desired goals and meet the objectives. It includes the process of re-structuring the resources of the organization which can be men, machine, money, materials and methods. This is carried down in- order to improve the efficiency and effectiveness and also the quality and productivity. An organization goes through two main stages like declining stage and growing stage. A declining organization will always think how to regain their customers? On the other hand, a growing firm thinks about developing new products and some well advanced organizations give more importance to stake holders. Organizational change is highly important because it comprises of producing newer products, services and is helpful except in some cases.

There are different types of organizational change. They are: planned and unplanned, incremental and transformational, etc. If all the individuals comprising the organization are well known about the type of change which the management is following then they can easily cope with the difficulties and complexities at the time of adopting changes.

Planned and unplanned change: - planned change is a change which is identified by the management of the organization in advance. They will be aware about the need of a change for the development of the organization and make plans. It is proactive in nature. It includes strategic plans and reorganization. They involve more confusion and will be unsettling. Even though planned change is known by the whole business team, often it is difficult to conduct and implement in an highly organised manner since it involves lots of chaos.

Unplanned change is reactive in nature and is not organised by the management in advance. It acts as a sudden surprise to the employees. For example, when sudden restrictions from the Government, political factors, natural calamities, quick business loss, when the CEO leaves the organisation and when expected return is not attained, employees strikes. These all results in unplanned changes in the organization.

For the occurrence of an organizational change, the management should include five stake holder groups and they are mentioned below:-

A stake holder is a person, group, system or an organization and they have particular interest in the working of the organization. They can involve in the company's activities and even they are affected by the decisions of the organization. They invest resources and gets benefits in return.

Change recipients: - They are the receivers of the changed products, services or other outcomes. Example: users of new software or accounting packages or employees working in two merged organization.

Decision makers: - They decide is there any need for a change in the business or not. The scope of change is determined by them and they provide directions to adopt changes. Example: Chief Executive Officer or the sponsor of a project.

Resource holders: - They have the right to provide resources like men and money for accepting the change. Example: Chief financial officer, line manager

Program implementers:- They are the group who have given the responsibility to bring changes to the organization. Example: project manager, program manager

External parties: - They are not the actual recipients of change but the impact of change will fall on them. Example: business suppliers broader community

Many approaches and models are there for managing changes in an organization. They are Strategic Management Models, Lewin's Change Management Model, Plan Do Check Act Model, McKinney 7S Model and Action Research Model.

Strategic Management Model:- Strategic Planning is undertaken by most organizations. Strategic Management includes setting goals and strategies, evaluating the business and provide proper control. It checks whether the implemented strategy is going on in a right way and if not replacing them with new strategies. New strategies are set up to meet the changing business circumstances, movement of competitors, business environment, social factors, economic factors and political factors. Implementing strategic plans systematically and having a regular and definite nature is called strategic management. Strategic plan concentrates on the whole organization where as business plan focuses on a product or service. Strategic plan tells us where the company is going, how it is going to attain its objective and whether it attained or not. Strategic planning has got various models, perspectives and approaches and it all based on the nature, size, culture, complexity of the organization.

Lewin's Change Management Model:- It is also called Freezing Model and has three divisions.

The unfreeze



In Unfreeze Model, the problem is divided into many parts and conducting a detailed study on each part.

The transition model is the one where the process is on going with the study face to face and especially when the transition is going on

Refreezing model is where the type of process is when the organization is in the process of absorbing the new process.

Kurt Lewin gave a caption for this change saying it is like an ice. How is it possible for ice to obtain another shape without evaporating?

A number of models which are perspective are being used in the strategic planning process. The way the plan develops normally depends on the leadership, complexity, size, expertise of planning and the nature of the organization.

Every organization must adopt changes for its development but the management should investigate properly before adopting such changes. Some other approaches involve technological aspect like replacing the old technology process with a new one. Other changes include traditionally changing the employees' customs or the rules to be followed in an organization.



Bureaucracy: The term bureaucracy is derived from the word "bureau" which indicates any work place. And later (2000) "bureaucracy" originated out of that and which meant rule. Bureaucracy means administering big organizations and implementing fixed procedures and rigid rules for governing the organizational operations. It can be referred as an administrative structure, or a process or a system. Bureaucracy is applied in public and private administrations. Certain aspects of bureaucracy to carry out the operations are applied even by the non government organisations.

Almost all of the government fields apart from the political foundations and ideological feelings are managed through the bureaucracy leaded mostly by the prime minister of president of heads of the states. Large or small domestic companies as well as established multinationals make a control of their operational activities through the bureaucracy. This is achieved by developing standards of proactive and goals from different management teams under the top management team. Some of the nongovernmental organizations also have certain aspects of Bureaucracy in their operational functions.

Various aspects of Bureaucracy

Bureaucracy is actually referred to a process in administration, structure or system of administration. It can also be said as the governmental administration through a series of bureau or establishments from a team of non elected officials authority of hierarchy and governing procedures related with the various departments. This shows that the Bureaucracy is the administration of large and sophisticated complex type of organizations. It shows the administration of complex and rigid hierarchy according to the standards and procedures structured. It can also be said as the administrative system of objectives, functions, qualification, authority, hierarchy, function, fixed rules, etc. most of these characters are existing in the organizations which are large and administrated by the government such as corporations, armed force, hospitals, schools and courts. Bureaucracy is the structure of administration which exists in private as well as public organizations in relation to the hierarchy of pre established competence. The Bureaucracy functions in the delegation of work performed by the departments and individuals which is controlled by a central management.

Strength and Limitation of Bureaucracy

The limitations and strength of bureaucracy is rooting to the evolution of new theories which are opposing and so the concepts rooted to different theories. The most important opponent and proponent of bureaucracy are Karl Marx max Weber respectively. The theories and statement of these personals had made the bureaucracy different opinions.

Strength of bureaucracy

Max Weber had a positive idea of the bureaucracy where he ideally described the organization and the rational in the administration of these kind of organizations. Most of these characters are normally obtained with the help of concentrated administration, application of impersonality, equalization of social and economic concepts, etc. according to Weber's perspective; the bureaucratic organization consists of 7 principles. The first principle relates to the official business conduct in continuous basis, the second principle relates to the official business in strict circumstance with the member duty, the third principle states about the vertical hierarchy which is ruled with the supervision rights and appeal. The fourth principle relates to the non ownership of the necessary resources in accountability of manner of resource. The fifth principle relates to the division of income, personal interests and official. The sixth principle relates to the non-appropriation of the positions and officers. The seventh principle relates to the official business documentation.

In accordance to these principles the organization experts receive expert coherent and systematic designation of delegation of tasks and position. Each and every official will know his work and contribution area in order to achieve specific tasks. Due to the work coherence the informational flow and efficiency decisions comes from various department and personal hierarchy.

Bureaucratic organizational example includes the military which is a stark example. It is because of that it consists of codes of conduct and hierarchical position. Decision making includes the directions of the armed force which is eliminated from the respective duties. Weber had given an ideal picture for the bureaucracy, these ideas are recognized and subject to abuse. According to the theories said by Marx there are certain tasks that are inclusive of the official casts, clergies, etc. most of the social rules are shows the lack of opportunity and discrimination of the subject or persons. As a result of bureaucracy, the revolution of industrialization was developed and power was increased due to international relations. Due to this, the world was segmented into developing, developed and underdeveloped countries under where it shows the relations of domestic governance. The fourth was given as the consequences of mass production. These systems of bureaucracy shows the burden and cost of society.

QN-2-2-A AND 2-2-B


Tesco was just like a typical food retailer previously where they only focused on the tangibles such as place and products where they ignored the intangibles such as service and customer service. They continued this a long way when they realized that the global market is not going the way they realised before. They came t know thet the supermarket industy is not in the way as before and is changing frequently. They understood thet the old configuration could not work anymore. Hence Tesco started on creating new store concepts and initiatives that are customer focused. The reward system of Tesco was described as "… a reward scheme that embeds multiple relationships, extending beyond the simple relationship between Tesco and their customers. The scheme introduces customers and other businesses to each other, through a brand or relationship web, and thereby builds brand experiences and value. The brand building aspects of Tesco Clubcard are discussed under earning rewards, deals, and integrating channels" (Rowley, 2005, p.198).

For the technical complaint, the web page asks the customer to specify his or her Internet Service Provider, type of Internet connection, anti-virus software, and type of firewall used. Then finally, the customer is asked to specify the full details of his or her query. Finally, for the general query, the customer is asked to specify the area where the query is related to, as well as the full details of the query. Both the technical and general query form also requires the customers to provide a full detail about their personal profiles (Tesco.com, 2005a).



"Success breeds failure" is one of the old market caption where it says that the business world is just constant. This includes many basic factors such as the business location, customer preference, the product demand, mediums used and so on. The 4ps of marketing - product, place, price and promotion is not even affected with the randomly changing business world. Todays business situation shows that the ones who can change according to the market situation can survive and others persist.

Supermarket industry is one among the highly affected industries due to globalization. The aim of previous supermarkets were to expand their business in their home country and establish their name locally. However, due to the cheaper products being produced in China made them to outsource and expand their branches all over the world. Walmart is one of the example for such an organization which made them the second largest retailer in the world. Their aim is to expand internationally which made them do as as well. As of January this year, the company owns and operates 11 units in Argentina, 25 in Brazil, 235 in Canada, 34 in China, 92 in Germany, 15 in South Korea, 623 in Mexico, 53 in Puerto Rico and 267 in the UK. However each supermarket have their own competitors in every nation. Wal mart have their competitors - Tesco and Sainsbury's in the United Kingdom.

But what are the UK competitors' reactions to the Wal-Mart invasion? Tesco's corporate affairs director stated this when asked about Wal-Mart's arrival in the UK:"We had been expecting Wal-Mart for some time. When it arrived, we were ready'' (Whysall, 2001).



According to Hawkes, there are two different factors which drive the adaptation and exploration of CRM by food retailers in terms of competition and technology. The technology to enable retailers to track specific customers with the help of card system through the bar codes and customer identification cards which could be scanned. This enables the retailers to target their customers give promotions to their customers using different products. Food retailers which are non traditional and such as drug stores, super centres, convenience stores, farm makers etc have resulted in having too many outlets and which is not growing too much according to the alternatives in shopping. The competition forces made a decline in prices, increase profitability and growth in sales, efficiency, etc. as a result of this impact, the retilers such as tesco came to focus more on customer service. Thismade them to keep them the current customers while makeind new customers offering them many benefits . the loyalty club cards offered by tesco was in such a condition for the customer service. According to Harvey, the supermarket situation and condition in the United Kingdom is in a way changing the competiton in terms of the convenience that could be offered to the customers and customer loyalty rather then the normal way of discounting the product price. An example of this was thet walmart was in trouble during their entry to the United Kingdom as they were in the way having problems with their pricing strategy. Further they collaborated with ASDA and came to learn about the UK and their situation of the market. They came to study about the national consumer behaviour from ASDA. However, tesco never had such a problem since they were in the Uk and were not having any problem to experience as a new entrance since they were already a retailer in the United Kngdom. Based on the experience in the retail sector, they started the way of offering loyalty cards wich helped them in maintaiing the customer loyalty and made them to offer their products at a low rate making them a discount retailer.

Another change in the marketing strategy of tesco was ther introduction to internet. By this the company came to be wider by having wider audience than before and so they they expanded to different countries and hence became the communication expansion through Tesco.com. through the website they made thet the customers have an option to inquire through e-mail, about their concerns in product deliverty and other queries such as technical and general queries. The comments was accepted as follws: "Books, Music, Video, DVD, Flowers, Games and Wine".