Organizational Change and Leadership

This assignment delves into the complex relationship between organizational change and leadership. It examines how changes within an organization affect leadership styles, employee motivation, and overall performance. The analysis draws upon various theories and models related to organizational behavior, change management, and leadership effectiveness. Students are encouraged to critically evaluate the role of leadership in navigating organizational change and driving successful outcomes.

ORGANISATIONAL
BEHAVIOUR AND
THE
MANAGEMENT OF
PEOPLE

Table of Contents
INTRODUCTION...........................................................................................................................1
DEFINITION OF TOPICS..............................................................................................................1
Motivation To Work...................................................................................................................1
Leadership...................................................................................................................................1
Managing Change.......................................................................................................................2
THEORIES......................................................................................................................................2
Motivation Theories....................................................................................................................2
Leadership Theories....................................................................................................................3
Change Management Theories....................................................................................................4
APPLICATION OF THEORIES.....................................................................................................5
Transformational Leadership Theory..........................................................................................5
Kotter's Change Management Theory.........................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organisational Behaviour is a specific area of practice which is associated with behaviour
of individuals within a company setting. It is one of the most crucial aspects within a business
organisation which helps a company in identifying their behaviour and to ensure a better
conceptualisation of the belief system followed within the company (Kitchin, 2017).
Furthermore, another prominent function of the organisation is management of people. The
following report is based on General Motors one of the most reputed automotive organisations
within the UK. It covers three effective topics: Motivation to work, Leadership and Managing
Change and it includes thorough definition of authors related to these topics, two theories for
each topic and their application in these two organisation.
DEFINITION OF TOPICS
Motivation To Work
According to Herzberg (2017), Motivation is a phenomenon which is defined as a reason
or motive of individuals to effectively perform a specific task. In addition to this, this element
could also be outlined as a set of internal processes which ensure inclination of people towards
working. According to the author, motivation within human beings is directly influenced by their
behaviour towards a given activity.
As per the views of Miner (2015), Motivation refers to a driving force which stimulates
behaviour of individuals within an organisation for the agenda of initiation and sustainability of a
behaviour. It is a desire which influence a person or group to perform an activity to attain
something specific.
Leadership
In accordance with the viewpoints of Antonakis and Day (2017), Leadership means a
social construction as well as a firm action or set of behaviour inflicted within certain individuals
to lead other people within a team or organisation to achieve a desired goal. It is a goal
influencing procedure which takes place between leaders and subordinates.
Grin, Jones and Holt (2016) define leadership as a direct setting which is appropriately
connected to movement, change and persuasion. It is an effective construction of a novel strategy
which influences behaviour of other individuals within an organisation.
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Managing Change
According to views of Beech and MacIntosh (2017), Change is an element which refers
to a shift or transition in a pattern in which things or processes happen. Moreover, Managing
change is a process to appropriately analysing and evaluating this transition and manage the
same to ensure utmost effectiveness in procedures and practice of an organisation.
As per Al-Haddad and Kotnour (2015), managing change is leading an organisation from
a particular state of affairs to a new and unique set of pathway. It requires organisations to adopt
several different methods and approaches to ensure effectiveness in working of the company.
THEORIES
Motivation Theories
Maslow's Motivation Theory
One of the widely used motivational theories, this theory is based on effective needs of
individuals working within an organisation, fulfilling which leaders can assure effective
motivation within their individuals (Bester, Stander and Van Zyl, 2015). This theory highlights
five essential needs of each individual which are described below: Psychological Needs: These are basic amenities like shelter, water and food which are
the most dominant needs that must be fulfilled by leaders to keep the employees
motivated. Safety Needs: This need reflects an individual's need for protection and security. This
requires leaders and managers within organisations to provide job security, insurance
policies, etc., which provides their subordinates of having a sense of security within the
firm. Belongingness: After the above needs are fulfilled, the next type of needs is the sense of
belongingness among individual to experience acceptance within social groups. This is
very important for organisations to fulfil in relation to motivate their workforce. Self-Esteem: It is crucial for employees within an organisation to be effectively
respected, valued as well as appreciated by other employees. This need must be fulfilled
for consistent motivation within the workplace (Coccia, 2015).
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 Self Actualisation: This desire within an individual reflect development and growth of
their fullest potential. To attain this, they get motivated by complex tasks, opportunities,
etc.
Herzberg's Motivation Theory
As per this theory, there are several factors within a work place which motivates an
individual and results in job satisfaction along with necessary motivation. However, there are
several other factors which are termed as Hygienic Factors which which demotivate individuals
as well as cause dissatisfaction. These two factors are described below: Hygiene Factors: There are several factors within organisation which, If not suitable,
could induce dissatisfaction within the organisation. These could be low salary,
ineffective working conditions, unsuitable security and safety needs. Motivating Factors: These are those factors which induces satisfaction if they are
increased, such as enhanced job satisfaction, having achievements and responsibilities,
etc.
Difference Between Maslow's Motivation Theory and Herzberg's Motivation Theory
There are several differences between both these theories, however, the most evident one
is that while each level within Maslow's Theory provide satisfaction to individuals along with
opportunities for moving onto next levels within this particular theory. Whereas, in case of
Herzberg's Theory, it is not necessary that each type of need identified from the theory does not
effectively provide satisfaction to individuals, only motivation factors accomplish the same.
Leadership Theories
Contingency Theory
This leadership theory emphasises on the fact that effectiveness of a leader depends upon
how well the situation is aligned with the leadership style followed by the leaders. It works on
certain assumptions that no leadership style is better and its effectiveness depends on the
situation, There is one prominent theory set out by Fred Fiedler, according to which, the purpose
of this theory is to match the leadership style followed by individuals with an effective and
compatible situation. The method this theory uses is Least Preferred Co-worker Scale (LPC)
which has two outcomes. High LPC score denotes that leaders are people oriented while low
LPC score denotes that leaders are task oriented. Thus, according to the theory, while the latter
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are most effective when they experience higher positional power, the former has most
productivity when the leaders has positive relationship with people.
Transformational Leadership Theory
Transformational Leadership is the approach which emphasises on ways in which leaders
within an organisation could develop positive as well as valuable change within the subordinates.
Furthermore, one of the lead researchers in this phase modified the original work and presented
quite an effective theory for leadership. As per Bass' Transformational Leadership Theory, there
are four components of this leadership which are mentioned below: Intellectual Stimulation: As per this component, transformational leaders invite and
encourage creativity within their subordinates. These employees are motivated by given
power to explore unique and new methods of performing activities. Individualised Consideration: According to this, an open communication strategy is
implemented within the organisation to ensure support and encouragement to employees. Inspirational Motivation: A clear vision is facilitated within the organisation and
appropriate integration of employees' goals with this vision is achieved by the leaders. Idealised Influence: According to this component, leaders act as a role model for their
subordinates which ensures respect and trust within employees.
Difference between Contingency Leadership Theory and Transformational Leadership Theory
There is a significant difference between contingency theory and transformational theory.
For instance, within the contingency theory, the focus of leaders is to establish effective
relationship in relation to accomplishment of goals and objectives. However, within
transformational leadership, change within processes or organisational structure drives the
leadership to maintain appropriate relationship from employees to reduce their resistance.
Change Management Theories
Fisher's Model of Change
This model of managing change revolves around the acceptance and handling of change
by employees of a company. The main focus of this model is to describe all the behavioural
aspects which takes place within employees with respect to change. The overall focus of this
theory is upon the transition phase and laying down certain prediction markers with respect to
receiving the change.
Kotter's Theory of Change
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Focus of this theory is on the people of the organisation rather than change. Furthermore,
this theory effectively takes place using a top-down approach. A sense of urgency is created in
theory with a focus on maintaining momentum during the change.
Difference Between Kotter's Change Theory and Fisher' Change Management
The main difference between these two theories is that the application of both these
theories differ in respect of context and implication. This is because, Fisher's Theory is limited
with respect to showcasing transition of change and does not appropriately lay down the
prediction markers. Whereas, in case of Kotter's Change Management Theory, the application is
quite detailed at each stage, which makes it quite prominent for applying within different
organisations.
APPLICATION OF THEORIES
General Motors is quite a wide company and has a huge workforce which is effectively
required to be managed. Furthermore, the firm has announced recently to go fully electric by the
end of the year 2023 (Auto industry undergoing change; analyst says GM is getting ready,
2019). With so many people within the organisation, along with such change, it is necessary for
the company to manage the individuals in the company along with applying relevant and
effective theories to manage change within the company.
There are two theories which are applied by General Motors, which are discussed below:
Transformational Leadership Theory
There are several changes within the company and organisational functions and structures
in recent years. In addition to this, the CEO of the firm has emphasised on changing the
operations of the scenario and has taken several initiatives regarding transforming the scenario of
the company by 2020. For this agenda, the firm has implemented transformational leadership
(Mary Barra Is Remaking GM’s Culture—And The Company Itself, 2019)
The firm has implemented the theory by Bass and has followed its several components in
ways which are explained below:
 Inspirational Motivation:
There was a vision adopted by the CEO of the company which emphasised on
transforming the inner working and functioning of the company that could compete within the
dynamic environment and ensure sustainability in the firm. This vision was effectively
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communicated by the company to their subordinates within different departments and how this
would help them as an employee of General Motors (Katou, 2015).
 Individualised Consideration:
The CEO throughout the announcement has been quite considerate about building
effective relationships with the employees of the firm. Furthermore, regular interaction as well as
consideration of their viewpoints has been an integral part of the overall leadership adopted by
the CEO of the organisation.
 Intellectual Stimulation:
Different ideologies and methods were welcomed, along with provision of appropriate,
relevant and necessary training and development programmes for their employees to cope up
with the change. Such application of this leadership theory led to flow of strategically sound
ideas well as constructive framework for the company. Furthermore, it also encouraged the
organisation in relation to working with utmost creativity and effective mindset.
 Idealised Influence:
CEO of the company appropriately acted as a role model for their subordinates. This was
accomplished through creating a strong vision, believing in the same and communicating the
employees regarding the vision. Furthermore, the leadership style which was adopted by the
CEO set up ethical standards for the people of General motors along with effective standards
which allowed subordinates within General Motors to work more appropriately.
Kotter's Change Management Theory
As for changes within the organisation, General Motors applied Kotter's Change
Management theory which allowed the company to cope up with the change within their systems
in a very effective manner. In addition to this, adopting this would also help them to accomplish
their vision of going complete electric by 2023.
There are several stages within this theory, which has been appropriately applied by the
organisation. Application of Kotter's Change Management Theory is mentioned below: Creation of Urgency: The CEO of General Motors analysed the overall market with
respect to analysing the potential areas of opportunities which identified the need for a
massive change within the operations and functioning of the firm. Furthermore, this also
required the company to communicate this need to the subordinates as well. This helped
the CEO to develop a sense of urgency within the firm (Weng and et. al., 2015).
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 Powerful Coalition: However, each change is followed by resistance and it took quite an
effort by General Motors to appropriately convince the employees in relation to the
change. However, with the effective leadership of the CEO, this has been quite a
productive stage for the company. Vision Creation: A vision was appropriately created related to the change by CEO of
General Motors. Furthermore, the utmost consideration that was given while developing
this vision was for it to coincide and align with vision of subordinates within the
organisation. Communication of Vision: There were several meetings which were held within the
company for the CEO to communicate the vision set by her to the people of this
organisation. However, the firm also indulges with periodic meetings to effectively
communicate the progress in relation to the change. Obstacle Removal: All the possible roadblocks were analysed by the company and CEO
took necessary steps while implementing this change to remove these very obstacles
which resulted in an effective as well as appropriate performance of employees with
respect to change. Short-Term Wins: There were several short term objectives set within the company to
analyse the performance of the firm with respect to change. This allowed the firm to
ensure consistency in its implementation along with better management of change. Building On: During the process, The CEO effectively worked towards creating and
identifying new opportunities for General Motors which could be ceased appropriately by
the implementation of change within the firm.
 Anchoring the Change: With all the necessary steps of this theory analysed and
performed effectively, CEO has adequately anchored changes by bringing in necessary
aspects in relation to the overall anticipated changes and future consideration, which has
brought up pace within the firm in accepting and implementing the change (Bakotić,
2016).
CONCLUSION
Thus, it is concluded by the report above that organisational behaviour and management
of people are necessary practices that must be adopted by companies to ensure effective working
and consistent growth. It is crucial for defining different aspects like motivation, leadership and
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managing change, which allows a better understanding of these concepts. In addition to this,
each factor mentioned above must be backed up with several theories to review their possible
application. Lastly, applying the same within an organisation enhances its suitability and
appropriately assist the firm in accomplishing their objectives.
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REFERENCES
Books and Journals
Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model
for successful change. Journal of Organizational Change Management. 28(2). pp.234-
262.
Antonakis, J. and Day, D.V. Eds., 2017. The nature of leadership. Sage publications.
Bakotić, D., 2016. Relationship between job satisfaction and organisational performance.
Economic research-Ekonomska istraživanja. 29(1). pp.118-130.
Beech, N. and MacIntosh, R., 2017. Managing change: Enquiry and action. Cambridge
University Press.
Bester, J., Stander, M.W. and Van Zyl, L.E., 2015. Leadership empowering behaviour,
psychological empowerment, organisational citizenship behaviours and turnover
intention in a manufacturing division. SA Journal of Industrial Psychology. 41(1). pp.1-
14.
Coccia, M., 2015. Structure and organisational behaviour of public research institutions under
unstable growth of human resources. Coccia, M.(2014)‘Structure and organisational
behaviour of public research institutions under unstable growth of human resources’,
Int. J. Services Technology and Management. 20(4/5). p.6.
Grint, K., Jones, O.S. and Holt, C., 2016. What is Leadership. The Routledge Companion to
Leadership. p.3.
Herzberg, F., 2017. Motivation to work. Routledge.
Katou, A.A., 2015. Transformational leadership and organisational performance: Three serially
mediating mechanisms. Employee Relations. 37(3). pp.329-353.
Kitchin, D., 2017. An introduction to organisational behaviour for managers and engineers: A
group and multicultural approach. Routledge.
Miner, J.B., 2015. Organizational behavior 1: Essential theories of motivation and leadership.
Routledge.
Weng, R.H., and et. al., 2015. Exploring the impact of transformational leadership on nurse
innovation behaviour: A cross‐sectional study. Journal of Nursing Management. 23(4).
pp.427-439.
Online
Auto industry undergoing change; analyst says GM is getting ready. 2019. [Online] Available
Through: <http://www.advertiser-tribune.com/news/local-news/2018/11/auto-industry-
undergoing-change-analyst-says-gm-is-getting-ready/>
Mary Barra Is Remaking GM’s Culture—And The Company Itself. 2019. [Online] Available
Through: <https://www.fastcompany.com/90355262/how-black-girl-gamers-is-teaming-
up-to-take-on-the-trolls>
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