Leadership & Change
Leadership & Change
Leadership & Change
Group Members
ABSTRACT What is change? Change is a process of varying from one situation to another situation. Change can be occurred in anything, but when we come to business world, change has a broader scenario. In business organization change come for a reason, that is for the better future of organization and for better outcomes. In this research we studied that how the organizational change is occurred and why it is necessary. Organizational change always depicts major strategic decision of a company, it occurs when a company feels the need of change in order to gain competitive advantage in business environment. IBM is good example of change, that has achieved remarkable success and is one of leading IT firm in world.
to attain enhanced productivity. A leader should highlight the key objectives and process of change to successfully manage and implement change. Not, only it helps the leadership of company facing less resistance from employees but also aid in building strong level of trust.
Leading the Organization Leadership is all about inspiration and leader should have clarity of vision and ability to inspire all group of company including internal as well as external stakeholders though effective communication. A leader not only struggles to achieve goals but also motivates his subordinates to achieve goal by developing a sense of confidence and responsibility. The following are Seven Myths of Change Management Organizational change management creates value Resistance can be overcome Change is constant Change can be managed The change agent knows best Accepted wisdom is to follow the steps Big changes require big changes
BRIEF INTRODUCTION The change and ability to change play vital role behind success of every organization. Nowadays change management is used to access required changes in an organization. Its a systematic approach of leading employees, team members and organization from existing to desired future state. In todays competitive environment its getting imperative to adapt change in every aspect to gain a competitive edge. Leadership of company needs to identify changes required in terms of operational capability to improve effectiveness and efficiency of labor
However the leader must possess following features; Focusing Effort. According to this a leader is one who eliminated ambiguity by clearly defining, strategies, goals and objectives that pertain to solve problem and proves to be value addition to organization success. Building Shared Vision. Along with seeing big picture and having clear vision, a leader engages all stakeholders whether they are internal or external to accomplish organization objective collectively. Supporting a Developing Culture A true leader is one who makes corrective decision by accepting mistakes as part of working and providing support to its subordinates by supporting them on particular task in constructive way Facilitating Change Leaders not only accept change but also anticipate change in timely manner. A leader must avoid the negative impact of change by building a harmony between stability and change and foreseeing its effect on different parts of organization.
leaders and leadership as successful managing. The two are inextricably associated. Leader set vision and manger strive to achieve those by motivating and building relationship with its team members and subordinates. Leadership At The Top: The Need For Emotional Intelligence In Organizations However the need of effective leadership is need of 21st century and awareness of emotional intelligence among senior mangers is growing day by day.
The Seven Elements of Emotional Leadership Self-Awareness. It is associated with your internal emotions and how you manage your feelings. Its the awareness of leaders about variety of leadership traits to deal in tough situation. Emotional Resilience. Its the ability to perform under pressure as it is observed in every business, therefore leaders must do well under such circumstances. Motivation. It is a must element that empowers leader to achieve success and drives them to gain result under tough situations. Interpersonal Sensitivity. A leader must have this trait to deal with number of people in daily business matters. Its the skill that enable leader to understand perspective while arriving on a decision. Influence. Its the most important trait as it help leader to understand viewpoint of others as well as
Managing the Organization Mintzberg explained that We are now over led and undermanaged. Mintzberg proposes that, instead of differentiating between leaders and managers, we view managers as
influencing them to make right decision with respect to given situation. Intuitiveness. A leader must have the ability to foresee things and when information is not provided or facts are fuzzy a leader has to use insight to make informed decisions. Conscientiousness and integrity. Its an essential attribute to prove commitment to planned action despite the fact that situations are tough and one is facing many challenges in delivering results. Hence, it can be concluded that leadership main role is to create vision and doing the right things, however managements accomplish this by doing things right. On a whole its well clear that both leadership and change management are complementary to each other. Leadership sees big pictures and its management must have ability to achieve desired result. In fact an effective leader cannot oversee operational matters without management and without leader management cannot achieve desired results that are in line with company goals.
of force in change process. On force drive change while the other act as counter force to resist change. No change is possible when these two forces are equal therefore to implement change the driving force must be greater than the resisting force. Example: Continental Airline journey from poorest performing Airline to airline of year is practical example of Lewin change management model. Continental Airlines integrated many organizational changes after suffering from two bankruptcies. The GO Forward Plan of continental airline is entirely based on three stage model. The accomplishment of turnaround was multi-aspect but one important attribute of whole change process is employee engagement. It includes encouragement and empowerment through town hall meetings to make them more engaged in plan. All this highlights the importance of employees engagement as it reaps more fruitful results than just merely ordering and directing them to accept task. Leaders should understand the importance of group involvement as it helps in successful application of change.
ORGANIZATION DYNAMICS AND CHANGE Kurt Lewin change management model is one of best model to implement change straightaway. This three stage model referred to as unfreeze, change, freeze. This model ensures the organization act in response to current business environment. The main ideology of this model is that there are two type
CULTURE AND CHANGE A culture can be defined as set of shared attitudes, values, goals and practices that are common in group. Similarly we can define an organization culture as a set of shared attitudes, values, goals and practices of the employees of that organization. According to William Managing Transitions: Bridges;
because it is deeply associated with company history and quite a portion of it is below surface of awareness. So order to embrace change and to take benefit from it, following steps must be followed: Explore the core value and belief of your organization and there relation to behavior of its members. Sometimes they are also associated with stated values. Beside your core values and belief, acknowledge, respect and discuss the subcultures prevailing in your organization that may be helpful in accomplishment of goals. Eliminate the differences between conscious and unconscious values and belief and choose the best in favor of organization objectives. To ensure proper implementation and for better results, repeat the above steps as new members belong to difference culture and they must be assured to value the importance of currently prevailing culture in the organization. Assess the Company Culture A number of proven methods are used to assess the culture of any company. Many companies hire services of consultants who use different measures, but the best way is to observe the behavior of people around you. It comprises of their interaction with other, their behavior towards the happening in the company and how do they perform under various circumstances. Another important aspect is to pay attention to sayings of your team members, clientele and suppliers.
Every organization experience some change in culture with the passage of time and evolve accordingly to compete in modern era. Likewise we can say that if any employee leaves the company, the company may experience some change in culture as a result of new hiring, however if companys culture is strong with solid background, it may not change much. Every new employee comes up with new ideas and it cast a little impact on working styles of that company. In modern era of business, change comes swiftly and organization must be ready to accept change and proceed to get in line with highly competitive business world. All these changes also results in change of organization culture. Most of time these changes are positive but they can have a negative impact too. More than often, organizations are unlikely to anticipate the change. These changes can be major or minor but more important is to anticipate these changes and their impact on organization culture in near future. Culture change on other hand is more difficult and time consuming
Analyze your public impression in market and use evaluations to strengths your findings.
No doubt change is bit difficult for organizations but change is also an ongoing process. Source: Dyer, William G. Strategies For Managing Change, 1984
Determine the Desired Company Culture After examining the prevailing culture of your company, the next step is to choose the culture that best fits your company and how you want to see your company in near future. Analyzing the culture of your competitors also help you in understanding the market dynamics and assists you to draws inspirations from well performing organizations. Besides company culture, vision is perceived as long term objective, but it can also be slightly altered to get in line with market dynamics. APPROACHES TO CHANGE Thurley and Wirdenius (1973) proposed five approaches to manage change effectively. Let us discuss each of them in detail:
Directive strategies: This strategy as the name implies, dominates the mangers power to impose change with little or no involvement of people. One can say that use of power to impose change is common practice in this type of strategy. It has an advantage to make decision quickly but on other hand it also has disadvantage that it does not take into account the views of other team member and subordinates. All view points, valuable ideas, recommendations and useful information from others is neglected in directive strategy and most of time it is discourage by employees.
Align the Company Culture The next step is to make sure your company culture reflect your strategic goals and provides a gateway to achieve those goals. To ensure this, following measures must be adapted, Identify good things in existing culture, make improvement where needed and create an action plan accordingly. Refine your formal policies and day to day operations. Draft strategies for desired action and behavior. Make sure you to properly communicate new cultures to all.
Expert strategies: This approach is expertise base rather than power base. Using this approach management main focus is on appointment of expert resources to solve the specific problem. This type of approach is usually used for technical problems and management
appoints specialist to lead the project. It industry is good example of this approach where project are carried out under supervision of senior technical experts. As this is purely problem solving based approach, so there is little involvement of other people and there is possibility that those affected by these change may not welcome the solutions.
from employees and to gain full support for them that are needed for development of shared values. Beside its merit, the demerit of this approach is that its also time consuming and take much more time to give results.
Participative strategies: This strategy is based on involvement of all from top to bottom that are affected by change. As compared to others, this approach dominates involvement of employees rather than senior management in decision making. View of all are considered before finalizing a decision and support from external factor is also an option but external factor are not involved in final decision making process. Although its consensus driven approach but it also more time taking as the discussions among participator might take longer than usual. However its plus point is that the changes through this approach are supported by all members of the organization. It provides employees learning opportunity and experience to help them better understand the way its organization work.
Negotiating strategies: In this approach, senior management negotiates or bargains to make change more effective and also accept the needed adjustment and acknowledgments in order to implement change. The bright side of this approach is that the consent of end users are taken into account who are most affected by these changes. They have opportunity to speak and share their ideas. However the only flip side of this approach is that its more time consuming than other approaches as it involves negotiating with others. The advantage of this approach is that all employees support the whole process as they feel involved till the end.
Educative Strategies: This approach is more centered towards educating employees, changing values and belief and winning their trust in order gain advantage in long run. Management conducts necessary trainings and initiate employee development programs to overcome resistance
CRITICAL PERSPECTIVES TO CHANGE According to Kanter, Rosabeth Moss, Barry A. Stein, and Todd D. Jick. The Challenge Of Organizational Change, 1992, Change can impact organization culture in many ways. It can be positive or negative however, its the responsibility of leadership to deliver best effort and make the change as smooth as possible. The employees of organization are not liable to administer the change. Their duties vary from person to person depending upon their hierarchal position in the organization. It also depends on other factors like age, experience, skills, stability, motivation etc. Leadership is one who is responsible to supervise whole process of change which can bring positive impact on organization culture and provides them clear direction to achieve goals. Beside senior level management the role of manger is of utmost importance in whole process as he needs to act as a bridge between top management and employees. A manager needs to understand view from both sides and make employees understand the importance of change in best favor of organization. Above all a manger should convey message in a friendly tone rather than imposing the change as it would not be well welcomed by employees. It has been observed that change is not accepted in positive ways and lot of resistance is faced by leadership. This conflict of view is natural and deeply associated with emotions. While implementing change one
must be ready to show tolerance and patient and make other understand the best part of change process. The psychological Contract also aids in successful implementation of change process. With the help of models and diagrams it helps management understand the effects of change at fundamental level. Change also varies from person to person like the employees who are well experienced, reliable and valuable, often resist the change. On contrary to it, the employees who are not of much value to organization are not much resistance to change. In some organization where high level of commitment is expected from employees, it has also been observed that they are not much likely to embrace change. These people have been used to their previous working environment but once they understand the need of change they respond much likely as before the change process. Erik Eriksons interesting Psychological theory, highlight important aspect of human nature, according to this theory age factor is the one that helps in analyzing the priorities of different people and the motivation factor that influence them the most. The best way to implement change is to understand the basic need of employees in better way. Another factor is the strength and weakness of the people that can also assist you in understanding their behavior and helps you understand their point of view before implementation of change. It also helps them to value the change that
best
future
of
CONCLUSION In todays competitive business world the need for organization change is considered to be strategic imperative. Learning the need for change as well as its successful execution has been well understood. The loop hole in this process is that while gaining competitive advantage over competitors, leadership and management often makes hasty moves which leads to negative effects. In this whole change process they ignore the fundamentals to bring change including prerequisites and principle that provides solid foundation in this change. Due to lack of preliminary measures they are unable to identify mistakes and they are always wondering about what went wrong despite exhaustive efforts to make change successful. Although leading and managing is not as simple as it looks like however, use of proven measure that have been practiced for years can help leader to improve organizations success.
LEADERSHIP DEVELOPMENT CHANGE AND SUSTAINABILITY Every organization is not of same size therefore, change can be introduced depending on organization size in order to attain corporate sustainability. Heller, Robert. Managing Change, 1998, highlights the benefits of change as ideal transformation is linked with integrated plan of action. The following are key point of integrated plan. Identify where you stand now Build up a vision - the dream organization Measure the timescale Evaluate the willingness for change Set the strategy for action plan Secure necessary compliance Stretch beyond compliance Set a performance benchmark Initiate the change program Keep up the momentum
BIBLIOGRAPHY Ansoff, H. I. 'Managing surprise and discontinuity: Strategic response to weak signals'. In H. Thorelli (ed.), Strategy + Structure = Performance, Indiana University Press, Bloomington, IN, 1977, pp. 53-82. Bailey, G. and J. Szerdy. 'Is there life after downsizing?', Journal of Business Strategy, 9(1), JanuaryFebruary, 1988, pp. 8-11. Beaver, W. H. 'Financial ratios as predictors of failure', Journal of Accounting Research, 5, 1966, pp. 71-111. Bibeault, D. G. Corporate Turnaround: How Managers Turn Losers Into Winners, McGraw-Hill, New York, 1982. Cameron, K. S., R. I. Sutton and D. A. Whetton. 'Issues in organizational decline'. In K. S. Cameron,R. I. Sutton, and D. A. Whetton (eds), Readings in Organizational Decline, Harper & Row, Cambridge, MA, 1988, pp. 3-19. Cameron, K. S., D. A. Whetton and M. U. Kim. 'Organizational dysfunctions of decline', Academy of Management Journal, 30(1), 1987, pp. 126-138. D'Aveni, R. A. 'The aftermath of organizational decline: A longitudinal study of the strategic and managerial characteristics of declining firms', Academy of Management Journal, 32(3), 1989, pp. 577-605.
Dumaine, B. 'The new turnaround champs', Fortune, July 16, 122(2), 1990, pp. 36-44. Finkin, E. F. 'Company turnaround', Journal of Business Strategy, 5(4), 1985, pp. 14-24. Goldstein, A. S. Corporate Comeback: Managing Turnarounds and Troubled Companies, John Wiley & Sons, New York. 1988. Goodman, S. J. How to Manage a Turnaround, Free Press, New York, 1982. Gowen, C. R., III and J. W. Leonard. 'Turnaround strategies to reverse declining corporate performance', Southern Ohio Business Review, 4, 1986, pp. 4-8. Grinyer, P. H., D. Mayes and P. McKiernan. Sharpbenders: The Secrets of Unleashing Corporate Potential, Basil Blackwell, Oxford, 1988. Grinyer, P. H. and P. McKiernan. 'Generating major change in stagnating companies', Strategic Management Journal, Summer, 1990, pp. 131-146. Hall, W. K. 'Survival strategies in a hostile environment', Harvard Business Review, September- October, 1980, pp. 7585. Hambrick, D. C. 'Turnaround strategies', In W. H. Guth (ed.), Handbook of Business Strategy, Warren, Gorham and Lamont, Boston, MA, 1985, pp. 270-298.
Hambrick, D. C. and S. M. Schecter. 'Turnaround strategies for mature industrial-product business units', Academy of Management Journal, 26, 1983, pp. 231-248. Hardy, C. H. 'Investing in retrenchment: Avoiding the hidden costs', California Management Review, 29(4), Summer, 1987, pp. 111-125. Hofer, C. W. 'Turnaround strategies', Journal of Business Strategy, 1(1), 1980, pp. 19-31. Hofer, C. W. and D. Schendel. Strategy Formulation: Analytical Concepts, West, St. Paul, MN, 1978. Kurt Salmon Associates. Financial Performance Profile, Richard D. Irwin, Homewood, IL, 1985. Miller, D. 'Common syndromes of business failure', Business Horizons, 20, 1977, pp. 43-53. Neter, J. and W. Wasserman. Applied Linear Statistical Models, Richard D. Irwin, Homewood, IL: 1974. O'Neill, H. M. 'Turnaround and recovery: What strategy do you need?', Long Range Planning, 19(1), 1986, pp. 80-88. Pearce, J. A., II. 'Selecting among alternative grand strategies', California Management Review, Spring, 1982, pp. 23-31. Pearce, J. A., II, D. K. Robbins and R. B. Robinson, Jr. 'The impact of grand strategy and planning
formality on financial performance', Strategic Management Journal, 8(2), 1987, pp. 125-134. Ramanujam, V. and J. H. Grant. 'Research on corporate decline and turnaround: Progress, problems, and prospects'. Paper presented at the Academy of Management Meeting, Washington, DC, 1989. Reichert, J. F. 'Brunswick's dramatic turnaround: An interview with CEO Jack T. Reichert', Journal of Business Strategy, 9(1), 1988, pp. 47. Robbins, D. K. and J. A. Pearce II. 'Entrepreneurial retrenchment among small manufacturing firms', Journal of Business Venturing, 7, 1992, in press. Schendel, D. E. and G. R. Patton. 'Corporate stagnation and turnaround', Journal of Economics and Business, 28, 1976, pp. 236-241. Schendel, D. E., R. Patton and J. Riggs. 'Corporate turnaround strategies: A study of profit decline and recovery', Journal of General Management, Spring, 3, 1976, pp. 311. Slatter, S. St. P. Corporate Recovery: Successful Turnaround Strategies and Their Implementation, Singapore, Penguin, 1984. Sloma, R. S. The Turnaround Manager's Handbook, Free Press, New York, 1985. Stewart, J. Managing a Successful Business Turnaround, American Management Association, New York, 1984.
Whetton, D. A. 'Organizational decline: A neglected topic in organizational science', Academy of Management Review, 5(4), 1980a, pp. 577-588. Whetton, D. A. 'Sources, responses, and effects of organizational decline'. In J. Kimberly and R. Miles (eds). The Organizational Life Cycle, Jossey-Bass, San Francisco, CA, 1980b, pp. 342-374. materials) and assets (receivables, cash, plant and equipment).