Leadership and Change Management Case Study

Added on - 22 Nov 2020

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Leadership and ChangeManagement
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Introduction to report and key issues of case scenario along with statistical data................3TASK 2............................................................................................................................................4Analysing various causes for changes and types of change experienced...............................4TASK 3............................................................................................................................................7Change situation of organisational, cultural and social dimensions along with importance ofculture and its role in relation to organisational change and links between power, politics andconflicts and their effect on change........................................................................................7TASK 4............................................................................................................................................9Recommendations to lead and manage organisational change, reflecting on leadership issues,employees’ engagement and organisational development.....................................................9TASK 5..........................................................................................................................................12Conclusion............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONLeadership is the practical skill and research area encompassing ability of organisation orindividual for leading or guiding teams, people, employees and other. Change management isaggregate term for approaches to support and prepare group, individual and administration inmaking organisational change (Bolden, 2016). Both are two important priorities for manyorganisation as due to this many businesses fail and develop in market. In order to get betterresults, enterprise should coordinate change management efforts and leadership development.Due to social, political and cultural transformations bring many opportunities for organisation,society and people in current as well as future environment which can be responded throughleadership and change management. The given assignment is based on case study of Zappos.comfounded by Nick Swinmurn in 1999. It deals in clothing retailer, shoes, eye-wear, handbags andaccessories. The report covers situation of organisational change, analysing their multiple causesand consequences in social and organisational factors. Also there are recommendation given toorganisation in terms of lead and manage business change, leadership styles, development oforganisation and employees engagement.TASK 1Introduction to report and key issues of case scenario along with statistical dataEvery organisation has to face issues in organisation due to change in structure, cultureand others. The given report is based on Zappos. It was established in 1999 by Nick Swinmurn.It is a clothing retailer and online shoe based company (Burnes and By, 2012). It was acquiredby Amazon in July 2009 where all stock having value $1.2 billion. The aim of report is to findissues related with organisational change which took place in Zappos and giving solution to it.The organisation faces issues after implementation of Holacracy in businesses. Here,organisation culture changed from traditional to modern that is Holacracy where employees feltdifficult to accept it. It was new concept for staff to follow and accept. Also issue is related withSelf management where staff were forced to manage each and every things by themselves.When notice related to change in management was declared and after one week ofpassing such notice, 14% of Zappos employees that is 1443 took other Tony offer.There were210 employees who left job out of which 20% of tech department. Nick was attracted by idea ofonline marketing where people could easily purchase shoes. As Zappos team moved forward into
Venture Frogs incubators and Tony joined organisation in 2001 as CEO and business grows by$8.6 million in gross sales. The company made $70 million sales in 2003 where Tony becomeCEO and Nick as chairman. The issues arises because of change in culture and design of otherorganisation. Employees faced issues as they are required to give three months notice beforeleaving Zappos. The case study depicted when sales reached $184 million in 2004, Sequoiainvested in Zappos that is $20 million. Tony's personal income was $27 million which heinvested in business. So, this can also be considered as an issue due to which change wasrequired.Change is important in organisation as it allow staff to learn new opportunities, skills,exercise creativity which provide benefits through new commitment and new ideas. Withchange, firm can easily survive in competitive market and provide services to consumer in betterways. Thus, it helps to achieve goal and objectives of business.With change in situation, different environmental impacted has been observed. Asmanagement has change their structure due to which organisation also need to adopt it. Due tochange employment arise in environment, many employees leave their job and accepted otheroffers. Due to management and structure, it has been changed.TASK 2Analysing various causes for changes and types of change experiencedThe business running in environment has to face issue due to various factors (By, Burnesand Oswick, 2012). Similarly, Zappos has also faced issues due to change in organisation and itsstructure. The main issues faced by business are in terms of change inorganisational culture,recruitment and offer, acquisition by Amazon in 2009, down-town project failure and holacracy.This changes took place in business because of many factors which are described below:Change in culture-It is first issuewhich took place in Zappos because of newtechnology. Online shopping is the easiest and best way to do shopping. Due to competitive eraindividual does not have time to go and purchase products from stores. Thus, online platformprovide opportunity to them and view all type of goods, price and order it. This technology needsto be adopted by Zappos as it was acquired by Amazon which is online platform for shopping ofall types of products. This was issues which hamper company and its employees. For survival inmarket, it need to adopt new and updated technology. This company adopted “wow” customer
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