Lead Change: Impact of Autocratic Leadership Style on TAKAHE Homes

This article discusses the impact of autocratic leadership style on TAKAHE Homes, a leading construction company. It explores the positive and negative effects of this leadership style and identifies barriers to innovation and growth. Recommendations for change management are also provided.

Running Head: LEAD CHANGE 0
Lead Change
(Student Name)

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Executive Summary
A human being is the main source for the company to grow in the competitive market. It
is greatly required for the companies to hire perfect candidates for their work that support them
in achieving targeted goal. Therefore, it is required to satisfy the employees of the organization.
One of the leading companies TAKHAE Home is wholly managed by Jack Brown. The
company was introduced in the year 2011 after an earthquake occurred in such country. The
demand for new home and repairing of the home has been increased that provide a platform to
the company to enter in such a market in an effective manner. In a recent situation, the company
faces certain challenges due to high competition in the market. It is required for the company to
change its leadership style to compete in such competitive mare. The company has adopted an
autocratic leadership style that affected the overall performance of the company at a greater
level.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Role of Leader in an Organization...................................................................................................3
Current Leadership style of TAKAHE Homes................................................................................4
Impact of current leadership style....................................................................................................4
Barriers to Innovation and growth...................................................................................................5
K. Lewin – change management model..........................................................................................6
Conclusion.......................................................................................................................................6
Recommendations............................................................................................................................7
References........................................................................................................................................9

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Introduction
TAKAHE Homes is owned as well as operated by Jack Brown who was born into the
family that is involved in the Canterbury building industry. In the year 2010 and September
2011, the demand for builders has been increased due to earthquakes occurred in such country.
According to the statics of New Zealand, approximately 100000 homes was required for
repairing as well as about 10,000 properties needed rebuilding. Such natural disaster provided
great opportunities for the construction industry in Canterbury. It provides a new platform for
Jack to expand its business and established TAKAHE homes in the year 2011. In the initially
they have started repairing the damages homes then they moved on to building new houses. The
company has grown substantially from having five employees to having 52 employees by
January 2017. Jack as the managing director has also been making the business decisions. He is
the whole and sole decision maker of the company.
They have earned a great reputation for doing their great job. They work closely with the
architects to give them valuable advice to their clients on the right building as well as a material
option to make the building process easy as well as worry. The working environment of the
company is quite rigid, they have administrative as well as the accounting department that
consists of five employees. They lead in the market in a more effective as well as efficient
manner. However, the company has faced certain challenges related to the management of the
company at a greater level (TAKAHE Homes, 2018).

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In the following part, there will be a detailed discussion on the leadership and
management style that the company adopted in which they suffer from the challenges and the
manner or the way they can cope up from the challenges faced by them in an effective as well as
efficient manner.
Role of Leader in an Organization
With the help of effective leadership style, the individual can influence the behavior of
other employees in the company to attain a common purpose or the goal that is willingly
cooperating with each other for the fulfillment of the same (Lorinkova & Perry, 2017). It inspires
as well as motivates other to achieve the common goal of the organization in more effective as
well as efficient manner (Herdman, Yang & Arthur, 2017). There are different types of
leadership style that are explained in the below points:
Autocratic Leadership style
It is one of the leadership styles that gives full power or the authority to the leader,
manager or boss. In which style the leader takes a decision without consulting with their
subordinate or their team members. He makes all the crucial call s that are then communicated to
the team members, as well as they, are expected to work on the instructions immediately
(Rosenbach, 2018).
Democratic Leadership Style
Such style is more participative in nature where the leader involves the team members
while making the critical decision. Such leadership style is mostly adopted by those companies
where the team members are highly skilled as well as experiences. The essential and effective

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part of such leadership style is that the communication is active upwards to the downwards
efficiently (Li, Gupta, Loon & Casimir, 2016).
Laissez-faire leadership style
It is one of the leadership styles that give the maximum scope for the innovation as well
as flexibility. It works best for the creative teams that are having self-motivated as well as
experienced individuals who do not require the level of invigilance as well as supervision
(Nawaz & Khan, 2016).
Current Leadership style of TAKAHE Homes
In the recent, TAKAHE Homes has adopted autocratic Leadership style in which the
managing director, Jack take the whole decision without consulting or discussing with others. He
oversees the entire operation with minimum consultation with his staff that made the company
ore particular about making the decision for the purpose of business. the company has a hallmark
of complete control by the leader of the group overall the decision that is made for the group
with little or no input from the subordinate members of the group (Iqbal, Anwar & Haider,
2015). Some of the employees shared their ideas or views with some innovative structure to run
the business, however, Jack didn’t adopt such manner as he would not able to trust their
subordinates related to the decision making of the company. In such manner, Jack has adopted
autocratic Leadership style in their business in which he has taken the decision by his own
without consulting or depending on the decision of their subordinate. The role of subordinates in
such a process is less or no more than made the environment of the company more rigid and
highly structured in nature (Amanchukwu, Stanley & Ololube, 2015).

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Impact of current leadership style
There is a great impact of autocratic Leadership style that has been adopted by Jack on the
company at a certain level. Such impacts are explained in the below points:
Positive
 By adopting such leadership style in the company, Jack would able to take quick decision
especially in the stress filed situation that helps the company to react and make a decision
in a more effective manner without waiting for the consent on others. It created success
door for the company in a more effective and efficient manner.
 It also created a clear chain of command oversight in which the subordinated did not able
to feel confused related to whom they need to answer and make coordination with them.
It enhanced the structure of hierarchy in a more effective manner (Fiaz, M., Su, Q&
Saqib, 2017).
Negative
 The leadership adopted by the company also enhanced the level of demotivation among
the employees. They are not able to feel free to share their views and resist them to learn
new experiences that force them towards the factor of demotivation at a greater level in
the organization that decreases the overall performance of the company.
 The innovative ideas that can help the company to achieve growth in the market cannot
be earned by the company by adopting such a leadership style. The employees are the key
resources of the company that made the company more successful. They are the main
individuals that deal with the situation. Therefore, they know the actual situation of the

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things happen in the business s they can able to participate in decision making of the
company in a more effective manner (Cunningham, Salomone & Wielgus, 2015).
Barriers to Innovation and growth
TAKAHE Homes has faced lots of barriers to innovate, growth as well as changes in
their workplace due to the certain reasons as they are explained in below points:
Culture
Culture plays a vital role in innovating things in the workplace. The organizational
culture of the company should be in that manner that can motivate the employees towards the
growth and innovative ideas that is required for the company to grow in the competitive market.
The working culture of the company is not flexible. The employees of the company were not
able to take the decision by their own; they need to be dependent on their supervisors that make
the organizational culture rigid in nature (Coad, Pellegrino & Savona, 2016). Moreover, the
junior members in the company also being bullied by their supervisors however the company has
not taken any action to address such complaints that crated unhealthy environment in the
company and the employees do not feel comfortable in such environment that affected the
overall performance of the employees as well as the company at a greater level. Furthermore, the
employees of the company resist to adopt any changes in their workplace, when administrative
staff suggested jack to implement a computer system that could manage the surveys of
consumers as well as analyze the data of management, then the supervisors argue on such topic
to not implement such system in the workplace that represent lack of coordination among the
employees of the company that create barrier to growth and changes in their workplace (Love &
Roper, 2015).

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Knowledge
Knowledge is one of the effective sources for the business to foster growth and success in
the market. The company has hired a skill full and experienced candidate in their business that
can support the company to grow in such a competitive market. However, they have not been
provided any efficient platform to represent their talent and can share their knowledge with Jack
that can enhance their performance. Jack was the only individual that has taken every decision
related to business without consulting with others. The employees are not appreciated in the
company for sharing the ideas that demotivate them at a greater level. One of the experienced
employees David was excited to share the innovative ideas as he has investigated in Japan. Such
idea could gain a new competitive advantage to the company, unfortunately, Jack has rejected
such idea that disappoints David for not being appreciated that create resistance among the
employees to share their knowledge as well innovative ideas that can help in growing the
business in more effective and efficient that. Therefore, the limit of sharing knowledge can create
a barrier to innovation, growth and any changes in the workplace at a greater level (Roper, Love
& Bonner, 2017).
K. Lewin – change management model
It is one of the cornerstone approaches to the organization that is relevant in the recent
scenario. The change managing is one of the complicated journeys that may be simple, as well as
most, involve several stages of transitions before attaining the stage of equilibrium or any
stability (Al-Haddad, S., & Kotnour, 2015). TAKAHE Homes will face high competition in the
Canterbury housing market. Therefore, the company is required to adopt the changes in their
workplace to compete and sustain in the market in a more effective manner (Huarng & Mas-Tur,

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2016). The process that can be adopted by the company for making changes are explained in
below points
Stage 1- Unfreezing: it is one of the most critical stages in change management. It
involves readiness as well as the willingness of the people to change by fostering as a realization
for moving from the existing comfort zone to a transformed situation. In such stage, Jack needs
to analyze where it is highly required for making a change in the workplace. They need to work
on creating a healthy environment in their workplace to motivate employees (Hornstein, 2015)
Stage 2-Change: it is one of the processes of accepting a new way of doing things. It is
the process in which the individual is unfrozen as well as they implement actual changes. Jack
can implement a computer system that could manage the consumer survey as well as analyze the
team management data. It would help the company to control the quality and cost of the products
in a more effective manner (Wojciechowski, Murphy, Pearsall & French, 2016).
Stage 3-Freeze: it is the stage when people move from the stage of transition to a much
more stable state that can be regarded as the state of equilibrium. For refreezing the behavioral
change of the employees, the company needs to introduce performance-based pay; implement
the open-system of feedback or guiding as well as facilitating the employees in accepting the
new behavior pattern at work (Hussain et al., 2018).
Conclusion
From the above analysis, it can be concluded that management of business play a vital
role in the growth and success of any business. TAKAHE Homes is one of the leading
constructing companies that is owned and introduced by Jack Brown in the year 2011. The

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company has earned a great reputation in the market that foster growth and success of the
company in a more effective manner. They have expanded their business in a more effective
manner however; the company has faced certain issues related to the management of the
company. Jack has adopted autocratic leadership style in their business in which most of the
decision has been taken by Jack without consulting with others that rests the employees to share
their view and ideas with their supervisor. The company has also not provided a proper platform
for the employees to share their issues or concern that increases the level of demotivation among
the employees at a greater level. Moreover, the employees have also bulled by the superiors that
created the main issue for them to the created an unhealthy environment in the workplace that
directly affected the overall performance of the company at a greater level. In the recent
scenario, the company also faces the challenge of a competitive market that creates an issue for
the company to sustain in such a competitive market. Therefore, there is required to change the
management of the company at a greater level to enhance the overall performance of the
company as well as the employee. The company needs to motivate its employees as well as need
to concentrate on their quality work to enjoy a competitive advantage in the competitive market.
Furthermore, they also need to create a healthy working environment in their organization to
grow sustainably in the market in a more effective as well as efficient manner. By adopting a
change management model the company can adopt the changes in a more effective as well as
efficient manner.
Recommendations
From the above analysis of the management of the company, there are certain
recommendations that are been provided to the company to enhance their overall performance of
the company as they are explained in below points:

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Healthy environment
The company should provide a healthy environment for its employees. The employees
are the main source of earning a profit in the competitive market. Therefore, it is required for the
company to create a healthy working environment in their workplace that made them feel
comfortable and motivated towards the targeted goal of the organization in a more effective
manner.
Participation of employees
Jack has adopted autocratic leadership style in their workplace in which Jack is the only
individual who takes the decision related to the business activities without consulting with their
subordinate. Therefore the company should make the participation of the employees in the
decision making related to the business activities that would help the company to resolve the
issues in a more effective manner and the employees would also feel motivated while
participating in the activities of the business. They will not feel rest in sharing their ideas that can
help the company to grow in such a competitive market in a more effective as well as efficient
manner.
Provide a platform for communication
The concern and issues of employees are highly ignored by the company as the
supervisor bulled their subordinates and juniors harshly that forces the employees to leave the
job as well as that also affected on the overall performance of the employees at a greater level.
The employees feel demotivated in such environment where their issues of concern are highly

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ignored. Therefore, the company should provide a healthy platform of communication with their
employees that can help them to share their issues in a more effective manner
Appreciating Ideas
The company should appreciate the ideas of their employees while they are sharing with
them. It would help the employees to come with more innovative ideas and other individuals will
also feel motivated to share their views and ideas for earning appreciation form their managing
director. It is one of the possibilities that such ideas may work in the organization to grown,
therefore, the employees should be appreciated for sharing their ideas through rewards that help
in motivating them and enhance their performance in more effective as well as efficient manner.
Focus on quality
To compete in the competitive market, the company should focus on the quality of their
services that made them leaders in such a competitive market in more effective as well as
efficient manner. Moreover, the company can introduce computer system through which they
can survey the data of consumers as well as other management activity of the company that can
help them in enhancing the overall performance of the company in a more effective and efficient
manner.

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