Effective Leadership and Change Management: Unlocking Business Success

The report highlights the leadership skills of Elon Musk and Bill Gates, with a focus on their ability to overcome barriers through organizational appropriateness. It emphasizes the importance of training and development for employees, as well as continuous hard work and dedication to achieve definite goals. The report also mentions the introduction of significant changes in business models by pioneers like Elon Musk.

RUNNING HEAD: LEADERSHIP 1
Leadership
Assessment 2 ( Change Management Report )
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Assessment 2 (Change Management Report) 2
Contents
Context...........................................................................................................................................................3
Introduction of Leader and role in the organization......................................................................................3
Organizational Change...................................................................................................................................3
Part A.............................................................................................................................................................4
Transactional VS Transformational leadership.........................................................................................4
Comparison of transactional and transformational leadership...............................................................4
Transformational Leadership.....................................................................................................................5
Comparing Leadership Types....................................................................................................................5
Key Behaviors of Transactional Leaders...................................................................................................6
Focus..........................................................................................................................................................6
Assessment of leaders................................................................................................................................6
Implication of Transactional Leadership...................................................................................................7
Training and Development........................................................................................................................8
Rewards and Punishment...........................................................................................................................8
Management Structure...............................................................................................................................8
Communication Style.................................................................................................................................9
Part B.............................................................................................................................................................9
Incremental and Radical Changes in the organization...............................................................................9
In tesla....................................................................................................................................................9
In Microsoft.........................................................................................................................................10

Assessment 2 (Change Management Report) 3
Assessment of change in each of the organization with specific example..............................................11
Can radical change be implemented gradually?......................................................................................11
Part C...........................................................................................................................................................12
Overcoming barriers................................................................................................................................12
3 possible barriers in implementing change.........................................................................................12
3 effective strategies to overcome barrier................................................................................................12
Conclusion...................................................................................................................................................13
Referencing..................................................................................................................................................13

Assessment 2 (Change Management Report) 4
Context
The report is regarding the implication of leadership and management of changes in the
organization. Leadership form to be an important part in gaining significant growth. By assessing
the leadership style of an individual it is easy to understand the growth structure and
development skills. In case of gaining market competencies it is evident to manage the
leadership behavior to develop an organization in an effective way. The report distinguishes in
Between leadership style of Elon Musk and Bill Gates.
Introduction of Leader and role in the organization
Leadership act differently around the world in a different way. People around the world
act differently depending upon the circumstances. It is related to community leadership, religious
leadership, political leadership, and leadership in a corporation. Elon musk is a transformational
leader known across the world as the founder, CEO, and CTO of SpaceX; a co-founder, and
product architect of Tesla Inc. As a transformational leader, Musk has confirmed the goals of
Solar City, Tesla, and SpaceX as his vision to alter the world and civilization. Musk has a vision
to reduce pollution by the way of sustainable energy through innovation.
Bill Gates is a transactional leader creating futuristic goals and follows the organizational
goals. Gates is at the positions of chairman, CEO and chief software architect. He is known as
one of the best-known entrepreneurs of the personal computer uprising. In market Bill Gates is
been criticized for his business tactics due to anti-competitive policies.
Organizational Change
Elon Musk is a hard working businessman, designer, engineer, investor, and
multibillionaire. As a change management element, Musk badly needs the automakers to get
heavily involved in electrics. Musk has introduced significant changes in the market. For gaining
market competencies it is evident to incorporate sustainable change. Elon Musk is a bearer of
change and innovation. He has recently managed to form alternate energy supply through
innovative management. The hydrogen fuel cell is showing some serious promise to the future
generation. This has helped them in engaging in a systematic change management process.

Assessment 2 (Change Management Report) 5
Musk’s contempt for the franchise system with his superiority will seems to be promising
on a long run. With the introduction of an effective change management process, the A cheap
battery in homes will let the smart grid with utilities to draw power as required to gain utility’s
load. This will diminish the requirement for standby power generation and permit charging car
batteries speedily without thorning the power drawn from the utility (Bamberger, Biron &
Meshoulam, 2014).
Elon Musk is a change maker and believes in transformation. It is his sheer dedication
that allow in managing the changes taking place in the surroundings. As a change maker, Elon
Musk has incorporated significant changes by improvising the situation. It is due to their
consistent efforts that the organization is outperforming with a high efficiency. He understands
the necessity to incorporate changes in the organization through effective transformations. His
clarity towards the futuristic approach helps in managing the tasks in a well an effective way.
This is promising for the organization to turn the opportunities in an effective way by handling
the changes (Armstrong & Taylor, 2014).
Bill Gates as a change manager has a clear approach in dealing with the situation. He is
the pioneer of carrying out the Work by introducing significant changes in business model. As a
transactional leader, he visit new product teams and ask complicated questions until he is
satisfied. Microsoft is bringing in advanced changes in the system by been the pioneer in the
system. This situation has altogether helped in managing the critical issues taking place at the
first hand level (Boxall & Purcell, 2011).
Part A
Transactional VS Transformational leadership
Comparison of transactional and transformational leadership
Transactional leader is the one who encourage observance with obtainable organizational
objectives and performance prospect. He supervises the organization in an effective way through
rewards and punishments. The Transactional leaders are task oriented focused on gaining
maximum outcome. They take effective measures beneath severe time and resource. They
believe in getting work done under the restraint and in highly-specified projects. This approach

Assessment 2 (Change Management Report) 6
sticks to the status quo and helps in forming an effective management role that pays close
concentration to how employees perform (Bratton & Gold, 2012)
Transformational Leadership
Transformational leadership however focuses on employee motivation and engagement.
The purpose of leaders is to link employees’ sense of self with organizational values. They lead
the organization by setting an instance, so followers can identify with the leader’s vision and
values. One need to understand the ongoing changes taking place in the transformational
approach focused on individual strengths and weaknesses. The leader believes in obtaining
maximum outcome by enhancing their ability and their promise to organizational goals (Collings
& Mellahi, 2009).
Comparing Leadership Types
Both the Transactional and transformational leadership display five key differences:
 A Transactional leader react to troubles as they arrive, while the transformational leader
speak regarding the matter before they become challenging.
 Transactional leaders work within the organizational frame by allowing changes in a
well-defined way. A transformational leader highlights new ideas that are reflected in the
organizational policies.
 A Transactional leader punish the employees as per the organizational standards; whereas
the transformational leaders attempt to attain positive results from employees by
investing in projects and by high-order reward system(Hamel, 2008).
 Transactional leader focus on self-interest of employees by the process of rewarding
themselves, whereas a transformational leader, appeal to group interests and serve for the
organization on a regular basis (Dowling, 2008).
 Transactional leadership is similar to the ordinary ideas of management, whereas
transformational leadership sticks to what is colloquially referred to as leadership
(Dessler, 2009).

Assessment 2 (Change Management Report) 7
Key Behaviors of Transactional Leaders
Bill Gates is a transactional leader who focuses primarily on organizational growth
through traditional means. Microsoft focuses on achievement than comfort, comfort and stability
of the staff. Like when Bill Gates realized that Paul Allen’s (Microsoft Cofounder) involvement
towards a startup company (Microsoft) was not enough, he sidelined Allen from the company
(Harzing & Pinnington, 2010).
There are speculations that Microsoft is not an inventive company. Bill Gates
transformed obtainable products to please markets wants in place of creating new products.
Microsoft is not the market leader, but a standards supplier for the industry. Gates is competitive
in nature and can go to any degree to beat his competitor. As an violent businessman, Gates has
been facing legal issues since its incorporation. Most of the large technology companies are
legally against Microsoft.
The transactional leader is engaged in adaptive communication. He is rude, harsh, and
unconcerned of others’ ideas. He doesn’t like any other person interference in the decision
making. The employees are not involved well in the decision making. This creates barrier for the
organization on a long run. He is actively selecting committed, hard-working individuals at the
initial stages of Microsoft. Bill Gates is a task master and behaves strongly by attributing
different personality traits.
Focus
Transactional leader is focused on his job and depicts sincerity in work. Bill Gates has
confirmed thirty years of experience through clarity of thought and execution dissimilar to the
contemporaries. Bill Gates is smart, competitive and persistent with his approach. He is
persistently focused on gaining competitive advantage through a goal oriented app
Assessment of leaders
Behavior: Bill Gates is at times bossy with an arrogant approach. He believes in getting
work done by the subordinates through a systematic process. As a business leader is a pioneer of
change and force competition in the organization. He has a clear approach where he focuses on

Assessment 2 (Change Management Report) 8
managing the organizational goals through appropriateness. The purpose of the leadership is to
frame the organizational goals by dedicating oneself to the organization (Hendry, 2012).
Action: He believes in taking advances through competitive advantage. He has a clear
approach but follows the old process of operating an organization. On a long run, the
organization is managing the situation in an appropriate way by organizing the goals in the best
appropriate way. The focus is to enable changes in the organization and to manage the
organizational motive. As a leader he has a diversified approach in managing organizational
objectives. It is through his broad vision that Microsoft is able to manage changes. In a well-
coordinated environment it is important to manage the organizational objectives (Price, 2007).
By focusing on the individual employee and his behavior, Bill Gates motivates them to work
efficiently. As a transactional leader, he visit new product teams and ask complicated questions
until he is satisfied.
Situation Evidence: As a leader, Bill Gates is a task master. He is strict with his approach
regarding organizational goals. He has a clear approach towards organizational goals. He
believes in the conventional way of business and uses a distinctive approach regarding managing
the organization. Like when Bill Gates realized that Paul Allen’s (Microsoft Cofounder)
involvement towards a startup company (Microsoft) was not enough, he sidelined Allen from the
company. He believes in investing in only productive activities. This instance depicts his
materialistic nature. He invests in only those activities that help in managing the business
organization. The reason behind the success of an organization resides in effectiveness of work.
He only believes in result and focus on gaining a typical organizational insight (Pynes, 2008).
Implication of Transactional Leadership
The transactional leadership style is used as an effective way of creating organizational
structures that obviously define job role. Bill gates has clearly defined job requirements,
establishes rewards, payment or bonuses. The effective leadership style allow in managing the
situation in the most critical way. Transactional leadership means that if the employees are
working as per the contract, he is been paid all the benefits. In case if they do not comply with
the norms, as certain amount is deducted from his salary as a punishment. An individual receives
the salary and benefits as agreed in return the leader supervise the employee’s actions and

Assessment 2 (Change Management Report) 9
evaluate his performance. Bill Gates as a transactional leaders allocate resources to a task in a
highly responsible way. He praises employees only for gain beyond expectations, not just
meeting those (Schuler &Jackson, 2008).
Training and Development
While managing the organization, it is evident for the employees to use skills and
knowledge to complete the mission. In case if the employees do not perform well, they are
punished. The leader only praises the work when an individual works above expectations. Gates
has an authority to punish the employees if the job is not done in a standardized way. The
implication of the transactional leadership style is implied when the employee lack the critical
competencies to attain the goals. The employees are forced to perform well through an effective
business procedure.
Rewards and Punishment
A Transactional leader reward performance if it exceeds expectations. It is through the
continuous dedication and hard work that the organization is able to gain consistent goals. By
managing exceptions, leaders commend for exemplary behavior and punish for failing results.
All these systems need an inflexible management structure. Employees recognize the rules and
have the same opinion to work under these circumstances. People are motivated by external
compensation or disciplinary actions like loss of pay or job termination. Bill Gates actively
demotivates employees from taking risk as it may harm the organization (Sparrow, Brewster &
Chung, 2016).
Management Structure
The organization is build of an organizational structure. A systematized structure allows
in managing the tasks in a well-organized way. An organization managed by transactional
leaders, follow a clear chain of command. Employees have to follow the command given to them
by the leader. In case if the employees are unhappy they cannot do anything about this.
Employees have to do exactly as per the instruction from their manager (Krupp & Shoemaker,
2014). They have to follow the rules and regulations as mentioned in the profile. The penalties

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are levied for not following the regulations set forth. Microsoft is bringing in advanced changes
in the system by been the pioneer in the system. This situation has altogether helped in managing
the critical issues taking place at the first hand level. The leader in such type of organization has
a complete freedom over the decision making. It is the soul decision of the leader to take
advantage of the situation and to work accordingly. In a competitive organization it is one of the
most effective ways. This process is important for the growth and development in an
organization and developing results(Besson, 2014).
Communication Style
The Transactional leaders follow an effective way through which an organization is able
to manage the goals. Policies and procedures are clearly defined in the organization. There is a
process through which the employees interact with the organization. The steps necessary to
produce a product or service according to well-known methods is used in a better way. This
implies no deviation. Transactional leader communicate in a systematic way. They deal with the
situation by managing the critical process.
Part B
Incremental and Radical Changes in the organization
In tesla
The process of innovation management systems aimed at “using” insights and
knowledge. This help in managing the organization in an effective way. In order to manage the
tasks Tesla has consistent innovative processes and implemented Phase / Gate schemes. All
these intended process help in managing the changes in the best possible way. Elon Musk has
developed a control over the modernism process to reduce the intrinsic risks in innovation
(Hastrich, 2015). These types of consistent innovation management systems manage the radical
innovations on a closely basis. Tesla tries to incorporate r radical innovations at early stages of
the innovation funnel. As a transformational leader, Musk has confirmed the goals of Solar City,
Tesla, and SpaceX as his vision to alter the world and civilization. His goals comprise reducing
global warming by sustainable energy production and consumption through innovation (Neider
& Schriesheim, 2014).

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It is evident that the vivid approach of Elon Musk has helped in managing the situation in
an effective way. The incumbent firms are challenged and the vehicle industry has seen many
changes in the recent time. Tesla is a pioneer of using sustainable energy through electric cars. It
is through the company consistent vision that they are able to make changes in the surrounding
for managing the multiple changes, the organization is able to focus upon the growth and
development taking place in the organization. There are new entrants in the markets to explore
new technologies, services. Tesla is a pioneer of managing changes in the current scenario
through its persistent vision. . He has recently managed to form alternate energy supply through
innovative management. The hydrogen fuel cell is showing some serious promise to the future
generation. This has helped them in engaging in a systematic change management process
(Taylor, 2016).
In Microsoft
The incremental innovations are essential to give updates to obtainable business models,
products and services. Microsoft is the pioneer of carrying out the Work by introducing
significant changes in business model. As a transactional leader, Gates visit new team and ask
complicated questions and proceeds only when he is satisfied. This type of innovation usually
occur in Corporate Innovation structures where the focus is on making new products and
services. Microsoft is using the conventional business model. The organization is still using the
old model to manage the changes and to manage effective changes. In this manner the
organization is able to manage the changes in the most appropriate way.
 The purpose is to create new business models
 To grow revenue and sales
 To protect existing business models(Galbraith, 2015)
This type of innovation only serves to expand the business in order to create radical
innovation until the next disruption occurs. As a change manager He invests in only those
activities that help in managing the business organization. The reason behind the success of an
organization resides in effectiveness of work. He only believes in result and focus on gaining a
typical organizational insight (Boje & Smith, 2010).

Assessment 2 (Change Management Report) 12
Assessment of change in each of the organization with specific example
Tesla has incorporated many changes in term of innovative intervention. They are planning to
launch an electric car internationally for reducing the carbon footprint. The innovative
intervention regarding the organization is important for incorporating changes in the coming
years. This will help in synchronizing the efforts with the team and therefore allows in a
systematic growth and development.
Microsoft is the pioneer of hardware and software products with a wide approach. They have a
competitive approach in carrying out the operations in the organization. In this way they are able
to incorporate changes through a well-organized process. Microsoft is not just the market leader,
but a principle supplier for the business. Gates is competitive in nature and can go to any level to
thrash his opponent. As an aggressive businessman, Gates has been facing legal issues since its
incorporation. Technically the company is performing way too less in term of gaining a
competitive advantage.
Can radical change be implemented gradually?
A radical change is incorporated in a systematic way. It is through the gradual approach that the
organization can implement changes in a best way. This is appropriate for an organization to
manage changes as per the growing market needs. It is through the organizational wide approach
that they are able to link the organizational goals with the performance. In order to gain
effectiveness, change can only be introduced in an easy wayside to understand the growth
structure and development skills. In case of gaining market competencies it is evident to manage
the changes in an appropriate way (Lunenburg, 2012).
Part C
Overcoming barriers
An organization do faced problem in case of implementation of a change. It is not possible to
incorporate change. For gaining efficiency, it is suggested to introduce change in a systematic
way by allowing individual to understand the ongoing competing market requirements.

Assessment 2 (Change Management Report) 13
3 possible barriers in implementing change
Lack of Employee Involvement
In case of a change, it is difficult for the organization to implement the changes. Employees
generally resist to a change. In such a situation it is important to match up with the individual
expectation by forming better relationship
Lack of Effective Communication Strategy
There can be a problem in communicating thestartraegy.IN case of miscommunication,
employees might feel insecure. Most of the problems in an organization arise due to
miscommunication (Miles & Watkins, 2007).
A Bad Culture Shift Planning
There can be a problem in managing the culture shift in the organization. A shift in the culture
can cause problem in managing the effectiveness. Employees might feel bad about the shift in
the culture. These changes are radical in nature and require an appropriate approach.
3 effective strategies to overcome barrier
Communication
This is the best way through which an individual can deal with the problem. N organization can
overcome the issues by dealing with the changes in a systematic way.
Employee Involvement
Employee Involvement is important for an organization in dealing with the issues related to
change. By involving employees it is evident to use effective strategies in gaining organizational
goals. An organization is able to manage the change through an appropriate framework by
dealing with different issues.
Negotiation
It is the way through which the individual with the problems related to the issues. For managing
the organization it is important to deal with the significant situation by dealing in an effective

Assessment 2 (Change Management Report) 14
way. This will help in managing the problems in a critical way. It is through the organization of
resources and appropriateness that one can gain competitiveness (Northouse, 2017).
Conclusion
To conclude leadership and change management is important for a business organization in order
to manage changes. It is through the organizational appropriateness, that it is able to overcome
the barriers. The report provides information regarding leadership skill of Elon Musk and Bill
Gates. For gaining the results, employees are given with an appropriate training and development
process. It is through the continuous hard work and dedication that the organization is able to
gain definite goals. He is the pioneer of carrying out the Work by introducing significant changes
in business model..
Referencing

Assessment 2 (Change Management Report) 15
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