Globalisation have dramatically accelerated the pace of change in modern organisations

Globalisation go through dramatically accelerated the pace of change in modern political sympathiessIntroductionTechnology explosion and globalisation have dramatically accelerated the pace of change in modern organisations (Prastacos 2002). Organisational Change has become a compulsion in arrange to maintain competitive edge or be successful in modern businesses and a difficult process to fulfill in practice due to its complex nature (Hamel et al, 1996)The objectives of this report argon to look at the significance of change within an organisation, relation between bureaucratism and hierarchy, stakeholders, models for involving stakeholders, models for change and etc within Tesco.Tesco was founded in 1924 by Sir Jack Cohen and had earlier roots from selling groceries in Londons East End marts. The scratch line store to be open was in 1929 in Burnt Oak, Edgware. The first Tesco self-service store was opened in St Albans in 1948. In the 1960s, Tesco started to sell fresh prov ender, c downhing and household goods in addition to groceries and opened stores in high streets of towns across England. In the 1990s, Tesco started to expand its operations tabooside the UK into Eastern Europe. In 1992 Tesco opened its city center stores downstairs the branding of Tesco Metro. In 1995 Tesco introduced the loyalty card and by the end of the 90s diversified further into banking. In the year 2000, Tesco is Britains leading food retailer with 845 stores. It prides itself on quality, guest service and a guest-friendly environment.Task-1Question-1Significant change within an organizationA description of the use of ICT for Internal External Communications of the business Information and chat technology has totally transformed, over the last few years, which has led to a major change in the way communication flows through a business. This has had a massive affect on the way Tesco operates today, as they are a service-related organisation, as they dont produce their own goods. Some examples of changes in technology that have had an order on the way Tesco communicates internally and externally areEmail- Is used to replace old methods such as faxes, telephone calls and letters, as e-mail is a lot quicker, especially if the message has to be sent to to a salienter extent than one person, it is more convenient than conventional methods, it is also used to correspond with suppliers.Internet- This gives Tesco to create a communication link with the global market this allows better communication between staff and customers that are overseas. Tescos website allows its customers to see what they are doing externally (e.g.) how they help the local biotic community, it also allows them to look Tescos range of products and services. Customer can browse through 24 hours a day from anywhere in the world.Network Databases- Has allowed Tesco to replace the old traditional ship canal of filling and storing information.Customer Service-At Tesco any question s or complaints can be dealt with over the phone or through the Internet, this makes the communication process a lot quicker. requital Methods- There are a issue forth of ways in which Tescos customers can pay for their goods or services, close to of the payment methods that are accepted at Tesco areCheque- Details can be printed aside at the till, using the information given to produce a receipt. Cheques can be used to pay up to a given price.Debit Card- This allows the customer to pay for their goods or service without any cash, the transaction is automatically checked at the customers bank account, the payment is guaranteed at once it has been checked if there is enough in the persons account.Credit Card- This is a similar process however, the money is not taken from the customers account, the sale is paid for at the metre. Customers whitethorn also ask for up to50 cash back.IT in store Operation- Information Technology is essential for any large organisation affectively, it is used for many a(prenominal) in store operations, for example, monitoring sales, ordering stock etc.Tesco sell thousands of products, therefore they use electronic computerised merchandising systems, to order the correct products to the correct place without these event of system it would be a very long process.Goods are no longer entered manually, which inwardness accurate pricing is guaranteed, because Tesco sell thousands of products, severally item has an respective(prenominal) barcode usually printed somewhere on the package, this allows Tesco to monitor their stock levels, which means that once a certain amount of a particular product is sold the computer will automatically re-order the product, this is known as the Sales Based Order.Home Shopping- Tesco has introduced a home shopping service with the use of information technology, this enables people to order their shopping from home using the internet, this is done through a computer programme, it allows its custome rs to order any of the products that the particular branch sells, orders can be placed 24 hours a day, orders are delivered to the customers home. These home shopper customers have to register and are given a personal ID number, payments for shopping can be made by calculate and credit cards.Responsible some factors for significant changeThe major sources of changes are the Environmental firstly, taking the shape of economic and political change where we had the rise of opening economy and market led economies. Moreover, new work patterns have emerged where more pat-time workers and permanent employees are used nowadays, and with the rise of competition from Europe, Japan or transnational muckles have made it difficult to cope correctly with employees. Finally, we must note the various and fast technological advancements which take place and the shortening of product demeanor cycles that lead to short range strategies and increased flexibility. These factors are discussed as bel owCompetition in MarketplaceSince year 2004, Tesco, who considers to be a market draw as a Grocery retail field in the UK not only go about first ever fall in its profit on sales hardly also faced fierce competition from existing new concatenations of food retailing market. It is true that falling sales and the first loss in the companys history have forced them to look at about group changes.The UK food retailing market is mature and highly competitive. In addition, the UK market has been affected by negative inflation in the food sector. This negative inflation has been driven by the so-called Wal-Mart effect i.e. downward pressure on prices from Asda / Wal-Marts aggressive Every Day pitiful Price strategy it was the Wal-Mart effect that pressurized TESCO into a price war.Changes in Attitude of CustomersDue to high competition, company has faced a considerable change in attitude of customer towards its products. As a maneuver, Tesco has been making continuous attraction s trategies for its customers to keep them in close inviolate in order to remain at top position. So, they always try to bring most attractive goods for the customers. The new option in the goods has been very well up advertised nationwide as a result customers are very well attracted towards Tesco.Political factor Public concern about the effect of out of town superstores on town centers has grown and both latest and future planning policies will seriously hamper future development. Though conversions of existing stores allow some increase in selling space it is limited. Community organizations have since gained momentum consequent to the Competition Commissions ruling and have been lobbying neighborhoods to boycott supermarkets and large food manufacturers and sort of support small independent suppliers, processors and retailers at the expense of large supermarkets like TESCO.Economic vexationes cannot control their environment however much they would wish to, instead they must react / adapt to changes within the environment, and this is particularly true in relation to the economy. In periods of recession, many businesses are forced to reduce staffing levels, whilst in sweep through periods of high growth businesses may seek to expand the size of their workforce to cater for increase levels of demand for their goods / services. Whilst the UK economy has seen steady boilers suit growth, there has for some time been a cycle of boom and slump within the economy, which has forced businesses to redefine their staffing needs.SocialThe U.K population on a whole is far more health conscious than in previous years. There has been a trend away from genetically modified foods towards organic foods.the great unwasheds wealth increases, with the decrease in time for shopping. Besides, people enjoy a busier lifestyle, fewer people cook everyday for themselves. Therefore, the ready meals have become welcome by consumers.TechnologyThe increasing colony of businesses on technology to gain competitive advantage over competitors, and the subsequent need to keep pace with technological advances have resulted in increasing accent being placed on organisations ensuring that their staffs skill base is constantly re-assessed and developed, through training and enlisting to keep pace with the use of technology.The Grocery retail sector is a major user of new technology. The increasing use of electronic data interchange, laser and self-scanning and other point-of-sale equipment has been a feature of recent innovations by retailers. The use of loyalty cards and the provision of financial and other services have also involved the introduction of sophisticated computer-based systems.GlobalizationIn the presence of globalization factor, Tesco also change its policies accordingly. This is considered to be one of the major changes in Tesco operations. Same trend has been showing in international regions also. By that company is work on a change to build str ong reliable partners.ConclusionOrganisations are a vital part of our society and serve several principal(prenominal) needs and demands. How an organisation is managed in relation to actions of concern and the decisions made have an impact on all pertain including other organisations, the community environment as well as individuals. As consumers plays the lifeblood role in Grocery Retail industry, TESCO approach remains Re-active, were it adopts low price strategy to attract customers. Also TESCO is ofttimes forced to change their strategy as the competition changes.Question-2Relation between bureaucratism and hierarchy to the organisational structure and changeA bureaucracy is a typeface of organisational structure that is found in many large-scale organisations. It appears in both public and private organisations and is a structure that still exists in the majority of industrial organisations in the world, despite being around since the 18th century.Ideally bureaucracy is ch aracterised by hierarchical liberty relations, defined spheres of competence subject to impersonal rules, recruitment by competence, and fixed salaries. The main aims of a bureaucracy are to be rational, efficient, and professional. German sociologist, Max Weber was the most primary(prenominal) student of bureaucracy, and he describe bureaucracy as skillfully superior to all other forms of organization.Bureaucratic systems have a greater sense of direction and purpose than other types of organisation structure and this helped by the hierarchy of positions and well developed rule system that is consistent in a bureaucracy.Hierarchy structure is sometimes called the Pyramid structure. In this structure there are few people who working above others. These people such as Marketing Manager have more authority over their employees. In many businesses each part of the department is divided into specialists departments where they deal with different task but have the same overall aim. f ocusing in this structure is led by Vertical Communication, which means that the communication goes from the top of the structure to the bottom of the structure.Advantages and disadvantages of bureaucracy and hierarchy organisational formWeber emphasise (Conley, 2002) both the advantages and disadvantages of bureaucracies.Advantages of bureaucratic systemBureaucratic system is a very effective way of structuring an organisation. So, it has some advantages like as belowBureaucracies provide a hierarchical structure whereby workers can rise through the ranks to positions of relative power.Progression is based on technical expertise thereby increasing the professional management of organisations.The development of written rules offered protection to less powerful workers and provided a basis for trade union negotiation.Bureaucracies replaced nepotism and favouritism with impersonal social relations and the basis for equation of treatment.Disadvantages of bureaucratic systemAlthough, b ureaucracy organisational form is very effective for an organisation but it also offer various drawbacks which are as belowHierarchies and rules validate power structures and status divides in workplacesRules cannot cover every eventuality and are themselves subject to interpretation. Over-attention to a rigid set of rules can often hinder the hushed running of an organisationBureaucracies can create iron cages which dehumanise workThe advantages of hierarchy structure areA leader or leadership aggroup can give the business a directionA leader or team could make quick appropriate decisions on behalf of the organisation.Employees are figure out about their position and Span of control within the organisation.Employees know who to report to in events of problems instead of going to the owner directly for irrelevant issues.Employees become motivated because they get a chance to become supercharged to a higher tier.The disadvantages of hierarchy structure areDecisions can often ta ke time to follow the chain of command.Employees can be demotivated if there are considered as at the bottom of the hierarchy.Decisions may be made by a few that are not in the interest of everyone on the organisation.After researching I have found out that the main structure that Tesco operate in is Hierarchy I think that this is a good structure mainly this is because there are more advantages then drawbacks plus this is a good structure to operate in for a big company like Tesco.Question-3Compare and contrast of bureaucracy and hierarchy organisational formBureaucracy can have a positive effect on the organisation it could also cause alienation and sense of purposelessness from workers within the system. Working in a large bureaucratic organisation may wee-wee the feeling that they are mere cogs in a huge machine, and therefore lead to unmotivated staff and a decrease of efficiency. Communication through the hierarchy may well be slow in a bureaucratic system, due to the tendenc y towards centralisation, which would affect the initiative at the lower levels.Due to the bureaucratic systems being well suited to predictable and stable situations, they are not very flexible and therefore bugger off it hard to deal with conditions of change. The rules of a bureaucracy are very rigid and are designed to achieve organisational objectives. However due to the rigidity it may obstruct the attainment of goals and lose sight of its overall organisational objectives.Although bureaucracy has proved its need in the current business environment, there are still several downsides, not only for the organisation, but also for the employee. many argue that in the twenty-first century, a bureaucratic organisation will be too expensive to maintain. It will also be incapable of responding promptly to change and will not be using the innovative resource of its members.Due to the hierarchical system, problems are usually passed upwards, preventing employees contributing to decisi ons, which will not promote proactive behaviour and can be damaging to an organisation.Task-2Question-1Stakeholders A stakeholder in an organization is any group or individual who can affect or is affected by the achievement of the organizations objectives. (R. Edward Freeman, 46).In the changing business world, a wide range of stakeholders may have an involvement with an organization, such as shareholders, customers, investors, employees, the media, government and non-government organizations.Internal and attached stakeholdersInternal stakeholders imply normal employees and managers of a business. In Tesco, the shareholders, the customers and other groups or individuals are involved in the business. These people are called connected stakeholders. All these are very important to Tesco.1.Employees All the employees are important stakeholder to Tesco. The reason for this, that employees are closely involved with organisation. They have a strong deviate on the business and the way t hat the business runs. The expectations that the employees have on Tesco areA clean and safe working environmentJob security emulous pay rates and benefits such as discounts on Tesco products amuseing and rewarding workOpportunities for promotion and career structureBonuses2. Managers All mangers as well as the directors of the company are stakeholders. In Tesco the manager has a major say on how the business should be run. The expectations that the manager has on Tesco aredeveloping a local or national reputation as a successful mangerworking the business to make it bigger than it is nowFor example at Tescos, those with a high achievement need such as Duty managers or departmental managers tend to seek situations where they have personal responsibility for solving problems, managing projects or for overall performance.3. Shareholders This group of stakeholders are interested in the financial part of the Tesco. The expectations that the shareholders has on Tesco areShareholders of Tesco wish to receive a large and increasing proportion if thecompanys profitsThey also hope the companys share price will rise4. Customers Tesco are mainly focused on customers. This means that Tesco has to fill the expectations of their customers. These includeGood quality products delivered on timeFair pricesAfter sales service and support, especially for high- technology products.This shows how Tesco are influenced by their customers- Tesco, the UKs largest retailer, buys enormous amounts of products from suppliers and so has great influence.5. Suppliers They are expecting to be paid on time and receive regular orders from their customers. Tescos suppliers are interested in any development that might affect the number and size of the orders.Tesco buys its own brand products from suppliers. All products are supplied to Tesco in a finished state.6. Bankers Banks and other financial organisations lend money to Tesco and will be concerned that their money is saved. They want Tesco to run successfully and to earn profits.External stakeholdersExternal stakeholders include individuals or organisations that have interest in the business but do not do anything and have no relationship with that business.1. Government agencies The government has lots of reasons to be interested in TescoThe Inland Revenue collects income tax and corporation tax for Tesco. It is interested in the financial affairs of TescoCustoms and Excise collects Tescos taxes. It collects foster added tax (VAT)2. Pressure groups These organisations are groups of people who combine to promote a particular view or cause. Pressure groups attempt to influence Tesco byCampaigningTaking direct action against some firms.Tesco responds to pressure group because they want to have a good public image.3. Local communities and society vexationes are an important part of the society. Local communities expect Tesco toprovide stable employment for the communityAvoid causing environmentally pollution, noise or other problems that might offend the community.Question-2Models to involve stakeholdersIn recent years, two useful models -a) the Power/ intimacy Matrix (Mendelow cited in Johnson and Scholes, 2002208) and b) Power/ goad/authenticity Model (Mitchell, et al., 1997) have become popular.Brief Introduction of these Two ModelsTo assist the analysis, the introduction of the two models is in short explained in this section.a) The Power/Interest Matrix (shown as Figure 1) implies the political priorities for managing stakeholder relationships by assessing the level of interest and power for each stakeholder (Johnson and Scholes, 2002 208). steepLowHighLowPowerEmanaging environmentStakeholder Management Publications Management Portal.filesimage004.gifC DA BLevel of Interest AFigure 1 Stakeholder Mapping the Power/Interest MatrixSource Johnson and Scholes, 2002 Adapted from A. Mendelow, Preceedings of the Second International Conference on Information Systems, Cambridge, MA, 1991.SourceIt can be seen from Figure 1 the stakeholders in fragment D have the most important role among other stakeholders in the success of the strategy. Due to their high power, organisations should give adequate emphasis on the stakeholders in Segment C and attempt to meet their expectations. As for stakeholders in Segment B, organisations need to provide enough information to satisfy their high interest in the strategies or issues. Under some circumstances, some stakeholders (Segment A) neither have power nor interest, so it is unnecessary to invest too much in this group.b) The Power/Urgency/Legitimacy Model, illustrated as Figure 2, divides stakeholders into seven types and uses them to reflect a different degree of stakeholders salience which is related to the three raw material attributes power, legitimacy and urgency perceived by organisational managers (Mitchell, et al., 1997).LegitimacyPowerDormantDiscretionaryDefinitiveDominantDependentDangerousDemandingUrgencyFigure 2 Power/Urg ency/Legitimacy ModelSource Based on Mitchell, Agle and Wood 1997Mitchell, et al (1997) made detailed explanations for the three attributes.Power means the possibility for a stakeholder to influence the outcome, originating from coercive, legitimate, expert, referent and reward. Urgency indicates time sensitivity and criticality of the situation. Regarding Legitimacy, it refers to the desire of stakeholders to judge the properness of the issue, based on norms, values and beliefs.Both two models are helpful to managers in pursuing success in stakeholder management. However, it is important to realise the limitations that each model might have in order for effective utilization of them.Question-3Stakeholder mapping in Power/interest matrix modelStakeholder mapping identifies stakeholder expectations and power and helps in establishing political priorities (Johnson, G Scholes, K. 1999 215). This mapping can be carried out by means of Power/Interest Matrix (Johnson, G Scholes, K. 1999 215), which classifies stakeholders in relation to the power they hold and the degree of interest they show to the organisation (Refer to Figure 4).LowA Minimal EffortB Keep InformedHighC Keep SatisfiedD Key PlayersPowerLevel of Interest Low HighFigure 4-Stakeholder mappingPower/Interest Matrix (Johnson, G Scholes, K.)Apply Power/Interest Matrix to Tescos StakeholdersConsidering the comments of Power/Interest Matrix for each group, we can ignore Segment A because it only has minimal effort on Tesco. As to Segment C and D, they are all key stakeholders and their expectations should be satisfied continuously. While for Segment B, it has high interest in Tesco and should be properly addressed through informing information to it.Indeed, stakeholders of Segment D (Owners, surpass Managers, and etc) have the expectations of good payback and dividends which require Tesco maintains its profit generation in its strength business Traditional Imaging. On the other hand, these stakeholders also seek for smashing growth in somewhat more potential business such as Digital Imaging. Stakeholders of Segment C (Customers) always expect better value for money, and they also enjoy the alternatives and value-added products Tesco provided, which ask Tesco to integrate Traditional Imaging with Digital Imaging to generate more innovation.ConclusionGenerally, the expectations of stakeholders of Tesco are diversely and variously. It is clearly that we should find out the key stakeholders and balance their expectations. Here, Owners, Top Managers, Creditors and Customers are identified as key stakeholders of Tesco and in particular their expectations are assessed separately.Obviously, Power/Interest Matrix points out the type of relationship which the organisation need to establish with every stakeholders group. Thus it is helpful in assessing the political ease or difficulty of particular strategical as well as in planning the political dimension of strategic changesTask-3Questi on-1Models for changeThere are various models of change are realised over the period of time. Every organization can develop adapt any of those models in change process according to the individual circumstances. Two important models of change which can be used during change management are as followsBusiness Process Re-engineering (BPR)Total Quality Management (TQM)I have shortlisted two organizations for the said topic in order to expedite a brief report about adaptation of different models of change as and when necessitate by them.The first organization was Tesco, London, UK. I worked as Manager Administration with this company for two years. When I joined the organization, it was in a recession stagecoach due to certain circumstances. In those situations, management of the company including me decided to develop adapt the Business Process Re-engineering (BPR) model of change.1. Business Process Re-engineering (BPR)- BPR has four basic key components Business Processes, Manage ment Measurements, Jobs Structures, and Values Beliefs. BPR is considered to be a much more top-down managed form of change. BPR is best defined asThe fundamental rethinking radical design of business processes to achieve dramatic improvements in critical, contemporary measures of performance.For clarity, it is appropriate also to define what BPR is not. BPR is not automation, restructuring or reorganisation, or delivering although these may be consequences of a BPR exercise. It is also helpful to consider why Tesco contemplated BPR given its radical nature. There were three probable reasonsThe business was failing there was no option but to invoke radical change.Business difficulties were foreseen pre-emptive measures were deemed necessary to avoid business failure.The organization, rather than resting on its laurels wished to build on its success invoked radical change to expatiate its lead over the competition.2. Total Quality (TQ)-This model of change was developed ada pted by the organization operating by the name of Integrated Business Services (IBS), London, UK. In said company I was worked as Manager Sales Marketing. The company is the top rated production manufacturer house of various technical products including aerospace materials. TQ change model was used by the company in January 2004. The Brief description of the model is as followsTQ comprises change invoked through four key components Systems, Processes, People Management.TQ is best defined as meeting customer requirements in a context in which every individual in the organization is a customer of the process preceding their own, a supplier to the process succeeding their own. Thus customers are internal to the organization as well as external.Additionally TQ is a competitive concept because it is concerned with being the best, where best is defined by the market place rather than by the product or service supplier the best companies will achieve the level of superiority that is usually high. Customer focus is the essence of TQ.Question-2Necessary go for planning the implementation process of the Business Process Re-engineering (BPR) model-The Four Cornices of BPR Considered by Tesco plc-1.Business ProcessesThe essence of BPR for Tesco plc lied in the adaption of a process orientation. The characteristics of such an orientation wereMultidimensionalCross-functional working in organization required combining many tasks into one job or process, in so doing, eliminated hand-offs, reduced administrative overheads associated with controlling the previous fragmented steps provided a single point of contact for process-related queries.Continuous Improvement BPR recognized continuous improvement in the form of process maintenance continual re-examination redesign of processes which, with time, once more became fragmented.2. Management Measurements-The achievement of a process orientation demandedProcess MappingExisting processes were process-mapped to establis h what currently happens why, that was, to develop an understanding of current process.Benchmarking World-wide cross-industry process comparisons were then be used to establish best practice provided a possible basis for process re-design.3. Jobs and Structures-The results of BPR in this regard were typically the side by side(p)Flat StructureFlat structure was adapted, a process rather than functional orientation, which together with process-teams performed managerial functions, reduced bureaucracy the requirement for complex, multi layer managerial hierarchies.Job SpecificationJob descriptions became comprehensive included details of required level of key competencies such that increased objectivity accuracy could be utilize to selection appointment processes.4. Values Beliefs-Creating sustaining a process orientation in the Tesco plc demandedLiving the ValuesSenior management lead by example in Tesco plc in this regard. For example by demonstrating the notion of being cu stomer-facing by spen