Organization Behaviour & Technological Transformation at Tesco's Assignment

Introduction of Organization Behaviour Assignment Sample

The world is rapidly changing due to many reasons. Globalisation and the rise of technology form the major reasons behind such changes. Organisation as an entity of conglomerated members with a specific aim also undergoes the fundamentals of changes. Organisational changes have been deemed a necessity in this globalised system. To sustain themselves in their respective industries organisations are required to modify and alter their ways accordingly, aligning with the needs of the time. This transformation is an evolutionary process that in turn brings fundamental changes in the formation and structure of an organisation (Waddell et al., 2019). 

Change can be defined as the alteration or modification of various existing features, beliefs, and customs of an organisation. The changes bring about new sets of values, systems, and practices replacing the old or existing ones. The changes occur mainly in the aspect of infrastructure, existing technological approach, and work environment. If it seems that the existing system and practice do not yield beneficial results then only organisational changes are brought about. These changes are quite difficult to pursue as they might bring resistance, both individual and organisational. Despite the issue of resistance, changes if required are brought by the management in the organisation for yielding better results of teamwork and attaining goals.

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Figure 1

Source: (Waddell et al., 2019).

It is quite necessary to welcome organisational changes because it enables an organisation to be capable of combating the challenges posed by the new demands emerging from the modern world. Thus in totality changes bring success and growth to an organisation by catering to the new demands of modern society. Changes not only create an upheaval inside an organisation but also brings about the opportunity for the workers to learn new skills and adapt to new methods of functions. Organisational changes often provide impetus to the creativity and innovation of talented workers who can deploy their talent for the benefit of the organisation (Waddell et al., 2019). Changes if required and addressed increase customer and employee satisfaction which in turn bring about the points of success for the organisation.

Tesco is a public limited company based in the UK and is considered one of the most famous groceries and merchandise retail shops. The company has over four thousand stores and it provides both online and in-store experiences for its customers. The organisation has over three lakh employees and a huge loyal customer base spread across the globe. It is quite natural for Tesco to have times when organisational changes seemed necessary. The organisation of choice is thus Tesco and the change it has undergone is the change in the use of technology. Over the past few decades, it has been seen that Tesco has undertaken technological changes in its organisational structure, for instance, the inclusion of artificial intelligence, digitalisation, and inclusion of technology in general (Alexander, 2020). 

Selection of change

Changes in the organisation are important and have been addressed previously in this report. Changes are fundamental of four types, for instance, technological, strategic, mission, and operational. The company of the choice, that is, Tesco, has undertaken a major important change in its organisation, that is, the technological change. Technological change means the transformation of the managerial functions of an organisation. Organisations use certain methods by which the management teams function, and the organisations might use traditional methods of functioning (Martínez-Caro, Cegarra-Navarro, and Alfonso-Ruiz, 2020.). However, changes in management's functioning process are usually brought about by technological changes. Technological changes are generally materialised by the inclusion of artificial intelligence, by the increase in dependence on various software that makes work easy, and also by digitalisation (Anderson, and Tushman, 2018). 

Figure 2

Source:  (Alexander, 2020).

Tesco the selected organisation has undergone this change of technology in its organisation. Tesco as described previously is one of the largest grocery and merchandise retail shops that are UK based, with a revenue of five thousand crores. Tesco in the following decades has seen its digital transformation, by including AI for maximising the experiences of online shopping. The retail shop used various new technologically sound software for installing the click-and-collect service to its customers. Through this service, Tesco has enabled its customers to get the opportunity to buy the collection of grocery items of their choice by clicking and collecting the items with convenience. For that Tesco has invested heavily in technology companies who helped to build the service. Tesco has the ambition to perfect its operating model majorly by polishing its offline store with the help of technology. Scanners and self-checkout payment posts were installed in the in-stores by the company to reduce human labour, and especially this benefitted the organisation during the pandemic years when physical distancing was the norm (Alexander, 2020). Tesco at the same time installed high-tech cameras that are equipped to detect empty shelves in the shops. Tesco as a brand has always placed its customers first place, and to increase brand loyalty, the organisation has come up with the initiative of providing its loyal customers with a unique ID by which they can shop and scan. Tesco for providing this service has given its loyal customers a card, in which all the details of those customers are stored. And the company has deployed the Oracle management platform for regulating and protecting its customers’ details (Alexander, 2020). 

Perception of Change in Organisation and Effects on Organisation Behaviour

Changes are deemed necessary for organisations but that does not always align with the interest of all investors, shareholders, employees, and the customer base. The perspective of the people, for instance, the investors, employees, and others might be conflicting. However, the perspective must have been the identification of the requirement and necessity of such changes within an organisation. Changes in general, and technological changes in particular inside an organisation bring chaos and total disruption. Traditional practices are when changes bring about possible conflicts and clashes, and along those come fear, confusion, and enthusiasm. The employees majorly and others too face difficulties to let go of older practices of work and it requires time for adaptation. Technological changes brought drastic changes to how work was done thus it is natural that peoples' perspectives would be initially negative towards such change. However, with time as technological changes settle in the perspective of people changes as well (Awadari, and Kanwal, 2019). In Tesco when the technological changes were brought in for the first time, the initial reaction was the same. However, the perspectives changed gradually. 

However, it is not always the case that all the employees and others working in the company would behave the same way. There's a perception that all the employees and management will react negatively to changes. However, it is majorly dependent on two factors, personality and the perception of the individual's work. For instance, traditional and orthodox employees might react negatively as they are naturally against any form of transformation and change. Whereas a creative and innovative employee might react positively, as changes might provide them the opportunity for individual growth (Lewis, 2019). However, Tesco has faced substantial resistance from the employees, especially for the instalment of self-checkout payment posts, which excluded human labour from the in-stores (Alexander, 2020). 

A benefit to the organisation

Tesco has brought certain fundamental technological modifications in the organisation and it has been mentioned before, for instance, the inclusion of AI in online shopping, installing self-checkout payment methods, installing cameras that detect empty shelves in the shops, and also special cards which use technological platforms for data storage. Tesco has achieved quite long-ranging benefits from the technological changes it brought (Hanelt et al., 2021). By the inclusion of artificial intelligence in its website, Tesco has made the online shopping experience for its customers an overall better experience. With online shopping a lot smoother for Tesco customers, shopping began to gain attention and popularity. This increased the sale of Tesco products, and this online shopping almost increased the sale of grocery items from Tesco in the online platform by forty-three percent. This trend increased in the pandemic year as well, when lockdown regulations were open.

The scanning by the customers of the items and the self-checkout payment methods has provided the customers with freedom. These mechanisms include the customers in the process of purchasing items with full freedom. It also excludes human labour from the in-stores, which has benefited the company from the financial aspect. Tesco has been successfully able to cut the economic costs of the employees as the installation of self-checkout payment posts and self-scanners does not require workers to assist the customers  (Alexander, 2020). The special cameras benefited Tesco by providing them with the opportunity to know the empty shelves before the customers arrive there. The camera will alert the in-store workers and the latter will ensure that all the shelves in the stores are full so that customers get the full service. This will increase the brand value of the company and the reputation will rise in turn. 

Lastly, the special card that Tesco gives off to its loyal customers using oracle technology generates customer loyalty. When the customers realize that Tesco is providing them special treatment and their data is technologically secured then it provides a sense of security which in turn increases their loyalty towards Tesco. All the benefits that are generated by the technological change in Tesco are seen is its rise in revenue every year (Alexander, 2020).  

Cause of the change

External

Political: The political climate in each country has a significant impact on Tesco's bottom line. Opening a new shop has political repercussions, as opposed to the cost-cutting measures used by traditional businesses. This is because large stores generally generate employment chances, and the government wants merchants to provide work prospects.

Economical: Profits, one of the most significant drivers of organizational transformation, are directly tied to the state of the economy (Tabrizi et al., 2019). Because of the high unemployment rate, there is a greater likelihood that consumer demand may decrease; thus, Tesco is opening additional shops to generate demand and hire people.

Social: In response to consumer demand for bulk shopping, Tesco now stocks a wide variety of non-food products, including clothing, electronics, mobile phones, and more.

Technological: Inventions in technology are a major motivator for businesses to embrace change. Having a larger clientele is a direct result of happy customers (Tidd and Bessant, 2019). Tesco has used a "self-checkout system," "electronic shelf labeling"  and many more to achieve the same goal.

Environmental: In light of these concerns, Tesco is making adjustments that will result in reduced energy use, less waste during manufacturing, and less harm to the environment.

Legal: The licensing, monopolistic, and price policies of the government all have an impact on Tesco.

Internal

The design of new products and services for the satisfaction of the customers requires technological advancement in the organization. This has led to the transformation of technologies in the organization. To enhance the motivation level of employees the organization needs to implement technologies that will enable the employees to engage with one another. High stress and turnover rate among employees is other internal factor that has enabled the organization to shift technological advancements in the organization (Hopwood, 2019). A high turnover rate may impact the productivity of the organization due to which the organization needs to make more technological developments. Innovations and inadequate skills among several employees are other reasons that may result in the downfall of the operational process of the organization. Innovations and lack of skills among employees are other reasons the organization needs to focus on technological change management.

SWOT analysis 

• Strength: Throughout the United Kingdom, Tesco has established itself as the go-to store for residents. Its sales and profits are greater than those of competing British supermarkets. From what the organization can gather from Tesco's annual report for the year 2021, the company expects to rake in £ 57.8 Billion.
• Weakness: Shares have been under pressure after the company's fiscal year 2021 operational profit dropped by 21.3%, or £1.7 billion. During the first three months of 2022, its share price fell by 8 percent (Harmon, 2019). A small number of Tesco supermarkets and convenience shops are struggling in several nations. Experts are of the opinion that Tesco did not do enough marketplace investigation before entering these areas.
• Opportunity: With the advancement of technology the organization has been successful in the implementing first cashless store which is an opportunity for the enterprise.  Tesco has enabled contactless payments for its millions of customers (Centobelli et al., 2022). The supermarket chain has provided a fresh and appealing option for its 20 million customers to make purchases.
• Threats: When Tesco released its 2017 holiday commercial, it was met with widespread criticism online. People said that Tesco had shown disdain for their Christian beliefs, thus they decided to stop shopping there. Trade agreements and price issues have become problematic for Tesco since Britain's exit from the European Union.

Resistance to the change

Manipulation among senior leaders and organizational politics are some of the organizational factors that are responsible for resistance to change. As a political tactic to show that the choice is incorrect, some members of senior management fight change. Members might be resistant to change for a variety of reasons, including the desire to demonstrate that the person spearheading the initiative is inadequate (Appio et al., 2019). Some senior leaders may fight it because they fear losing influence. They are determined to see the transformation initiative fail. These are some of the organizational resistance to changes. On the other hand, the cost and maintenance of the technological equipment and resources may not be beneficial to senior authorities which results in resistance to the changes.

When there is a genuine technological transformation in Tesco, there is also a good chance that job titles and functions may alter. Employees are resistant to change because they are unsure of their role in the new system. The fear of job insecurity in case of technological change is another factor of resistance to change.

Stress and conflict arising from technological changes in Tesco

Technological stress, sometimes known as technostress, is a term used in the business world to describe the difficulties that certain people have in adapting to new forms of technology. Adapting to the ever-changing dynamics of one's external environment, which has altered social connections and one's conception of space and time, is a major contributor to technostress. Because of this, many people in the workforce have developed a deep-seated fear of and aversion to using computers (Amarantou et al., 2022). The shifting and advancement of technologies in Tesco may develop beneficial results for the organization and the employees. On the other hand, the development and transformation of technologies may lead to stress and conflicts among the employees and senior management, and leaders. Change in technologies may lead to alteration of duties which is one of the concerns of employees. This may lead to conflicts and disagreements among the leaders and followers in the organization. Furthermore, the lack of knowledge among the employees may lead to difficulty for the individuals in coping with the new and advanced technologies. On the other hand, the management may pressurize the employees and workers to develop their efficiency on the technological resources which may not be suitable and feasible for several employees (Neves et al., 2018). This lack of efficiency and effectiveness in handling technological resources may result in stress and anxiety among employees and workers. The increased stress and anxiety may also lead to mistrust among followers and leaders which may further lead to job burnout and turnover rate of the employees In Tesco (Akhmetshin et al., 2018). These individuals are feeling the effects of the recent advancement of digital technology in their personal and family lives as well as their professional lives, which extends beyond the confines of their organizations. This creates an environment where technological strain may flourish.

Recommended strategies to administer the change

 Beckhard and Harris changed model

The present change management model consists of three phases mainly the present, transmission, and future phases. The term "present state" is used to describe how Tesco now functions, including its current structure, processes, personnel, and external and internal environments. By taking stock of where they are, businesses may determine whether they want to make any changes such as technological changes (Fry, 2021). Even if things are going well, Tesco may be interested in making some adjustments if it recognizes a new job, function, or structure it should implement, but its members are not in complete agreement on which way to take the company.

An organization's structure, operations, people, and surroundings all make up its transition state. Existing structures and processes in the technological areas that worked before do not function well anymore, and new structures and methods designed to operate in the future are not yet in place, making the transition stage almost tumultuous and unsatisfying (Karasvirta and Teerikangas, 2022). This is the stage where the stage management process of technologies occurs internally in the organization. The organization needs to focus on certain management strategies for handling and managing conflicts occurring due to disagreements between employees and workers.

The end goal of every transformation is a future state. It is the point when a new organizational structure is implemented and individuals and their surroundings are set in place. To get to this point, the organization worked hard toward the future it wanted.

Conclusion

The change management process at Tesco has led to various transformations and benefits for the organization. It can be concluded that the corporation has been focusing effectively on the areas that need to be changed for the benefit of the organization. With the transformation and changes in technological resources, the corporation has been able to gain a competitive advantage in the relevant market. It has been found that the enterprise focuses on social factors for implementing the changes. With a focus on social factors, Tesco has been able to offer a wider variety of non-food products to its customers. The findings of the report also demonstrate that Beckhard and Harris change management model is one of the recommended models that allows the company to handle and manage the technological changes in the working environment. Manipulation among the senior members of the organization is one of the reasons for resistance to change. The manipulation among senior members results in disagreements among the members which lead to barriers in the change management process of the organization. On the other hand, job insecurity is another reason for the resistance to changes in the corporation. Technological changes may lead to fluctuations in the roles and responsibilities of the employees which is another reason for resistance to changes.

References

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