Navigating Sustainability Change: Leadership and Stakeholder Management
Added on 2020-01-07
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Business DevelopmentLeadership ManagementProfessional DevelopmentTeacher DevelopmentLanguages and CultureEnvironmental SciencePolitical Science
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Change managementand strategic leadership
TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................3Task 1 ..............................................................................................................................................4Task 2...............................................................................................................................................41. ..................................................................................................................................................42....................................................................................................................................................83..................................................................................................................................................134..................................................................................................................................................155..................................................................................................................................................18Conclusion ....................................................................................................................................20REFERENCES..............................................................................................................................212
INTRODUCTION Strategic change management is a process of managing change in a structured andprofound manner to accomplish the business aim and objectives. Change management is a broadaspect that refers to managing the impact of new technology, business processes, modification inbusiness structure, culture, etc. (Goleman, Boyatzis and McKee, 2013). It is the method ofproviding guidance and inspiration required to develop and employ vision, mission and strategiesof company to attain business objectives (Avolio and Yammarino, 2013). It is an effectivemethod that renders direction to the entity which also assists in driving success for corporation.Change management will help in development of business by identifying and implementing ofstrategies which are required within organization. With the help of strong strategic leadership,managers can stimulate the employees to accept changes enthusiastically. In addition to thisaspect, it uses leadership as a tool to have constant change by making modification in processesand quality of human resources (Aaker and Joachimsthaler, 2012). Strategic leadership plays aviable role in identifying the upcoming opportunities, ascertain business threats and build avision for future that is followed by each member of the organization (Safi and et.al., 2016). In the present report, various aspects of strategic change management and leadership willbe studied in context of Royal Dutch Shell. Per the latest report of 2016, it is listed as the seventhlargest corporation in globe in terms of profits. Royal Dutch Shell is also ranked in 2013 amongthe Fortune Global 500 list of the world’s largest entities (Strom, Sears and Kelly, 2014). Theorganization owns human inventory of more than 90,000 employees. The entity has operations inover 90 nations. Company further produces 3.1 million barrels of oil equal per day and possess44000 service stations around the globe.In this report, learning will be shown about the impact ofclassical and contemporary management and leadership styles on change management andstrategies. Further, evaluation of internal and external triggers of change that can affect theoperations of company will be provided. Also, stakeholder’s analysis to ascertain the risk of planwill be provided. Thereafter, analysis of the impact of present management and leadership styleson planned change management function will be provided. Description about the contribution of3
HRM practice on the success on Royal Dutch Shell performance management process will beprovided. TASK 1 Covered in PPT TASK 21. Impact of classical and contemporary management and leadership styles on changemanagementChange is refers to that situation where some differentiated policies and procedure areintroduce within organization. However, Royal Dutch Shell consider of some significant changesthat are climate, natural gas, carbon capture and storage and energy transitions because theirimpact in huge on economy. The present section will focus on the impact of classical andcontemporary management and leadership styles on change management within Royal DutchShell. It is a multinational oil and gas company that was found in 1907 and incorporated inNetherlands. The vision statement of company reflects its earnest desire to make difference inthe society through its human resources, team of dedicated professionals, who value thecustomers of company and support in sustainable development. The term leadership can be simply defined as a method through which top executivesprovide direction and develop an inspiring vision to facilitate human resources to attain theorganizational aim and objectives. Leadership is also defined as a method of influencingindividuals to cooperate in the attainment of common goal of company. Overall, leadership isnothing but an act of articulating vision, embodying core values and developing the surroundingswithin which organizational goals can be attained (Preston, 2012). Over the period, leadershipand management styles have changed significantly. The classical management approach is alsoknown as scientific management theory which focuses on improving the productivity ofemployees. As per this theory, leaders should develop a standardized process for performingeach job by proper consideration on scientific management. Also, the leader can use wageincentives as a tool to increase the productivity of employees (Hannah and et.al., 2014). Classicalmanagement theory emphasizes on the selection of workers for a job as per its skills, knowledge4
and abilities. On the other hand, contemporary management theory focuses on improving theoverall performance of employees. It further ensures proper direction, coaching, guidance andsupport by leader to employees to enhance the quality and quantity of work performed by it. Inaddition to this, at present the leaders concentrate more on delegating the responsibility ofdecision making to employees to boost their morale. Leadership style plays an important role inassuring attainment of overall goals of Royal Dutch Shell (Tymon and Mackay, 2013). Tosustain in increasing complex and dynamic environment, it is crucial for company to adapt itselfwith environmental changes. To facilitate such changes, top executives are required to make useof strategic leadership.Management theory during the period of change:The classical management approach is based on the notion that employees have onlyphysical and economic needs and that the social needs and requirement of job satisfaction doesnot exist or are not vital. Therefore, to facilitate the change process, management can providevarious monetary benefits to the individual. This will encourage employees to accept changeeasily and meet the individual goals aligned with the objectives of firm. On the contrast, thecontemporary management theory assures proper motivation by manager to employees so thatthey give their best performance. Further, it involves proper communication betweenmanagement and employees. On the other hand, strategic leadership can be defined as individualefficiency to predict, envision, maintain flexibility, think strategically and work with others toinitiate changes that will develop a viable future for company. With this aspect, manager assureproper involvement of employees during the change process. This helps in reducing resistance tolarge extent. In addition to this aspect, contemporary management includes intensive training anddevelopment session which also help in preparing employees for the new change. Efforts madeby a company to align its mission, objectives and strategies with outside environment is the coreaspect of strategic management which is the orbit of strategic leadership. The effective directionunder contemporary management approach enable manager to assure that employees take changeas a challenge and help in bringing new revolution in the company. In addition to this aspect,effective goals and objectives can be set and modes for attaining them can be determined.Different contemporary and classical leadership styles that can be used by management of entityare described as follows:5
Different Leadership styles:Autocratic style: It is classical leadership style where leader dictates business policiesand procedure and determine what objectives must be attained. In this leadership style,leader exercises its direction and control over various resources. Further, autocraticleadership is recognized by the situation when all the major strategic decision of businessis taken by leader itself without the involvement of others. Therefore, subordinates arerequired to follow the decisions without any questions (Eberly and et.al., 2013). Thisleadership style is appropriate in situation when there is little time for discussion andquick decision making is needed. The leader use both rewards and punishment to get thework done. However, this leadership style has disadvantages as it may result intodissatisfaction among employees as they are not part of decision making process. Theemployee may resist on accept the change as it is directly imposed on them withoutobtaining their suggestions. Democratic leadership style: It is important leadership style where all the majordecisions are taken by leader after ensuring effective participation of members. In thisstyle, leader delegates the authority to take decision which results into generation ofcreative ideas from the side of employees (Hayes, 2014). The leader also providesvaluable feedback to employee which help in providing them guidance and coaching.Since, employees are part of decision making process they have high productivity due toimproved job satisfaction. Also, they accept change as a challenge are easily consentedfor new changes as they are part of decision making process. Moreover, Royal DutchShell is following democratic style because here, everyone is getting opportunities duringtime of decision making process. In addition to this, in organization every employees areparticipated with their ideas and some innovation by exchanging freely and in describedway so that they may reach out goals easily and effortlessly. Therefore, through this, theyget motivated and rise in performance level took place. However, in this change can takeplace easily because organization has incur lot of idea for that problem and everyoneopinion is measured by organization.Laissez faire leadership: In this style, entire authority to make decision is delegated bythe leader to employees. This style is appropriate when the group members are highly6
skilled, motivated and efficient for performing on their own (Avolio and Yammarino,2013). Therefore, team members have high sense of responsibility which also results inempowerment of employees. However, in this, style is ineffective as employees mustperform without direction and supervision. Charismatic leadership: It is the process of stimulating behavior in others throughpersonality, persuasion and communication. In this style, leader inspires their followers toperform things in a better manner (Rosenbaum, More and Steane, 2016). In this style,leader states vision that renders the sense of community by connecting present with abetter future. Bureaucratic leadership: It is the leadership style which is based on assuring thatemployees follow rules and perform accurately and consistently. The leader in this styleimposes strict and systematic discipline on the followers. Therefore, leader can maintainproper control over employees (Kuntz and Gomes, 2012). There are various contemporary theories and styles that can be considered by themanagement of company:Transformational leadership: In this style where leader works with subordinates toascertain required changes in company, they develop a vision to guide that change byusing inspiration (Rossberger and Krause, 2015). They are the leaders that influencefeelings in their employees which stimulate them to perform beyond their potential. It isthe proactive leadership style that facilitates in changing the corporate culture byemploying new ideas within Shell. However, Royal Dutch Shell may cause manychanges whether they are related to individual and system of firm. In addition to thisthought it creates valuable and optimistic change which will help in meeting out endgoals which are developed by leaders of organization.Transactional leadership: This is an effective leadership style that enables the leader toguide and motivate employees by providing them direction to ensure that they attainoverall goals of company in exchange of various rewards and benefits or avoidpunishment. Main concern of this leadership style is to improve the productivity of teammembers (Crossman and et.al., 2013). In Royal Dutch Shell, transactional leadership isalso known as managerial leadership because they focuses through supervision on7
performance of individual and organization. Moreover, through this, Royal Dutch Shellleaders may promote cooperation by providing rewards and punishment withinorganization.Trait theory: It is important theory that states that efficiency of leader depends upon theattributes of leader. As per this theory, the success of leadership depends upon thepersonal characteristics such as, self-confidence, charisma, honesty and integrity,decision making skills, creativity and intelligence etc. Furthermore,Royal Dutch Shell isbenefited by trait theory because it help in identifying in traits which leads to differentiatepersonality from leaders to non leaders. In organization every employee thinks thatleaders are born not made because they consist of some specific quality in theirpersonality.Contingency theory: As per this theory, the efficiency of leader depends upon thedecisions taken by leader in contrasting situations. The success of leadership relies onvarious factors such as nature of task, personality and skills of leader. In Royal DutchShell contingency theory consist of general state that effectiveness of leadership aredepend upon situation by containing numerous factor in it. Some of factors are related tonature of task which leader has been provided and leader's personality because it isaffected by group in which leaders are residing. Emotional Intelligence: It is important theory that enable leader to understand theemotions of its employees and use same in improving the performance of company.With the help of this leadership style, leader can gain the trust, commitment of the teammembers. It further assists in attaining the mutually beneficial objectives (Kerzner,2013). To facilitate emotional intelligence, leader must have self and social awareness,self and relationship management etc. Therefore, with the help of effective leadershipstyle, the management of Royal Dutch Shell can avoid the problem of change resistanceamong employees. The leadership style will help the leader in influencing the memberstowards new business practices. As per the changes needed in business, management candecide the leadership that must be used by it.2.Evaluating the external and internal triggers of change8
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