Change Management and Leadership

This assignment provides an in-depth analysis of the change management kaleidoscope model. It explores the theory's application in various contexts, such as leadership, management, and organisational development. The model is used to understand the complexities of change and how it can be managed effectively. The assignment discusses the cultural web model and its relation to the kaleidoscope theory, providing insights into the dynamics of change within organisations.

LIVE CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Contemporary approaches of leadership................................................................................1
Organisational culture............................................................................................................2
Change management (Kaleidoscope model)..........................................................................4
Power and politics..................................................................................................................7
Knowledge transfer................................................................................................................8
Globalization..........................................................................................................................9
CONCLUSION..............................................................................................................................10
RECOMMENDATIONS...............................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Merger and acquisition is the business strategy that helps companies in expanding their
business globally and diversifying their risk. Present study is based on Co A which is the 200
year old engineering firm that conducts its operations globally. It is acquired by Co B which is
the big firm. Before some time, entity has made changes in its practices and gone through large-
scale transformation (Bolden, 2016). Leaders of Co A used to follow democratic leadership but
now, they have to follow autocratic leadership styles. After that leadership, power, culture of the
firm has got changed drastically. Current assignment will discuss contemporary approaches of
leadership. Furthermore, it will explain kaleidoscope model of change management. Study will
describe impact of globalisation and knowledge transfer on business unit.
TASK
Contemporary approaches of leadership
Merger and acquisition is the process where two firms decide to work as a single firm.
The main objective of these entities is to expand their business and generate more revenues in the
organisation (Ellis and Bach, 2015). In such condition, higher authorities of the firm are required
to adopt correct leadership styles so that they can lead team members well and can retain them in
the workplace for longer duration during the merger and acquisition phase. There are various
types of leadership approaches, these are explained as follows:
 Transformational leadership: It is the type of leadership in which leaders of the entity
encourage changes and motivates others so that changes can be implemented in the
workplace effectively. Leaders behave like a facilitator and they engage the employees in
the change management process so that they feel involved and support in brining positive
changes in the organisation. The main aim of adopting transformational leadership style
is to make changes in attitudes of the workers and build commitments (Söderhjelm and
et.al., 2018). By this way, entity becomes able to meet with the organisational goal and
objectives. Transformational leadership concentrates on increasing communication
between managers and employees and giving proper guidance to the staff members so
that people accept challenges and perform well in the changed environment. At the time
of merger and acquisition, managers of CoA firm needs to adopt transformational
leadership style (Johnston and Marshall, 2016).
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 Transactional leadership: It is another approach of leadership in which leaders of the
company push the people those who are making mistakes. Leaders closely monitor
performance of employees. If higher authorities feel that people are not performing well
then they create pressure on them so that they performance level can be raised (Bush,
2015). Leaders of the firm encourage people by giving rewards but also give punishment
as well so that errors can be reduced. In this, managers divide the work in such manner
so that pre-determined goal of the entity can be accomplished.
 Situational leadership: It is the type of leadership approach where leaders of the company
identify the situation and accordingly create environment (Babbar and et.al., 2017). If
there is required to make it flexible then they make flexible policies but if it requires to
control over activities then they make it harder. On the bases of situation, leaders of the
organisation behave. It is considered as effective approach when changes are taking place
frequently. This hybrid approach support the leaders in managing operations well and
meeting with the objectives. After the merger and acquisition, Co A has adopted
situational leadership and now employees have to perform different task in the
organisation (Haggblade and et.al., 2016).
 Autocratic leadership: It is the approach where leaders possess high power and they do
not involve employees in decision making process. Leaders make decision and impose on
the lower level. Staff members are bound to follow their instruction.
 Democratic leadership style: It is the type of style in which managers and leaders involve
people in decision making process (Shaw and Leberman, 2015).
Organisational culture
Organisational culture is the belief and values of the company. On the bases of these
assumptions, entity makes coordination with its employees and create environment so that
people can perform well in the corporation. After the acquisition of Co A with Co B, cited firm is
required to use cultural web model (Vermersch, Carteado and Johnson, 2016). Cultural web
model consists six major elements. That supports in conducting operations well and creating
healthy culture in the organisation.
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Illustration 1: Cultural web model
Source: (What is the Cultural Web, 2012)
This cultural web model assist the firm in identifying current practices of business, what
needs to be done and what changes are required in the firm.
These six elements are explained as follows:
 Stories: It is related with the past records and thinking of the people towards the firm.
There are many people those who have different perception for the company and they
discuss positive and negative things about the entity. Co B conducts operations in many
countries and has high market share (Cohen and et.al., 2018). Company is popular for its
quality equipment and services. That is why, it has positive brand image in the market.
 Rituals: Co A adopts autocratic leadership style where employees are getting dominated
by their higher authorities. These rituals impact on behaviour of employees and many
workers feel dissatisfied with the organisation. Tough norms and strict regulation affect
overall efficiency of the employees to great extent.
 Symbols: It is considered one of the main element that explains culture of the
organisation (Ampou and et.al., 2017). Co A has created the disciplinary working culture
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where all employees are required to wear formal dresses. No workers can come to the
workplace in causal wears.
 Organisational structure: It is the element that explains the belief of the higher authorities
and how they behave with their employees. Earlier to acquisition, Co B was following
flat structure where employees were able to coordinate well with the higher authorities.
But after this acquisition, company has to follow tall structure where leaders of cited firm
follow top to down communication process (Alexander, Murray and Thompson, 2017).
Higher authorities circulate instruction and all workers are forced to follow these
guidelines.
 Control system: It is the way of controlling over the business functions. Higher
authorities have to make effective control over the activities so that issues can be
minimized on time. After acquisition higher authorities of the firm were allowed to
control over the business and they implement tough norms so that issues can be
minimized in the firm and performance of the business can be increased.
 Power structure: CEO, director possess high power and they can influence decision of the
business to great extent. After acquisition CEO of the Co A gets power to make changes
in the practices and control over business operations (What is the Cultural Web?, 2012).
By using this cultural web model it is analysed that Co A currently has the tough culture
where employees do not get power to share their views. Employees of the business unit always
have to follow instruction of higher authorities and have to work in frequently changing
environment.
Change management (Kaleidoscope model)
After acquisition held between Co A and Co B then drastic changes have taken place in
the business units. It is essential to manage the changes impressively so that entity can sustain in
the market for longer duration and can gain success. Co B is required to implement Kaleidoscope
model (The Change Kaleidoscope PowerPoint Diagram, 2017). This is considered as an
effective tool that supports in managing modifications well. This model describes that there are
several designs that need to be adopted by the firm in order to manage changes in the business
successfully. These are such as path, role, changes etc. It is the model that is produced by Hope
Hailey and Balogun. It is the useful instruments that support in the progress of corporation. Co B
is required to give more power to its stakeholders such as employees etc (Bolden, 2016).
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Power
From the given case it is found that Co A has acquired Co B. After this acquisition,
many changes have taken place in the Company B. Management team has started following
guidelines of Co B. Cited firm is conducting its business globally. After the acquisition company
has to work under autocratic leadership over transactional. This has affected performance of
employees and due to which people were feeling dishearten in the organisation (Söderhjelm and
et.al., 2018). In such condition, it is essential for the Company B that to make some changes in
the firm so that it can gain competitive advantage. Higher authorities need to adopt participative
leadership style. They have to involve employees in decision making process and have to
communicate well with them. This is the way through which organisation would be able to
manage its operations well and will be able to enhance satisfaction level of workers (Ampou and
et.al., 2017). By this way, all people will like workplace environment and they will perform their
duties well.
Mangers of the Co B are required to motivate people and have to implement innovative
ideas so that employees can manage their work effectively. This will help in making them
positive towards the firm and they will contribute well in achieving success. There are several
models and approaches that can be implement by the Co B in order to improve its decision
making process and raising business performance. Whenever firm has to make sensitive changes
then it can implement this kaleidoscope model (Cohen and et.al., 2018).
Diversity
This acquisition has affected culture of Co A to great extent. Earlier to the acquisition
people were doing their work effectively and managers have created positive workplace
environment. But after acquisition situation get modified completely. Co B was having changed
leadership approach that can create issues for the employees because now they will have to
follow strict rules and regulations. Authorities have redundant 10% of the workforce from the
organisation (Haggblade and et.al., 2016). This shows that company is required to manage
diversity well so that staff can retain in the workplace for longer duration. Due to poor
management strategies now, Co B is unable to manage haemorrhaging talent.
Scope
It is found that after this acquisition employees have to work under tough environment
and they are not ready to work under this atmosphere. Leaders of Co B were used to implement
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transactional leadership style, they encourage employees so that they feel happy and perform
well in the workplace but due to acquisition leadership styles have been changed and now people
are not accepting the new practices of business unit (Babbar and et.al., 2017).
Time
Co B is required to make quick changes in its practices otherwise it can get failed to
sustain in the market for longer duration (The Change Kaleidoscope PowerPoint Diagram,
2017). Company is not giving power to its stakeholders and not analysing their value thus, most
of the workers are feel dishearten and they are leaving their jobs soon. Now, it has become
essential for the cited firm that to make changes in its practices, culture and leadership
approaches quickly so that skilled people retain in workplace for longer duration.
Illustration 2: Kaleidoscope theory
Source: (The Change Kaleidoscope PowerPoint Diagram. 2017)
Preservation
After the acquisition, assets of the Company A have been merged with Company B.
Workers are the important assets to the business but after the acquisition most of its skilled
labour were redundant by the firm (Bolden, 2016). That is why it is essential to understand value
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of skilled people and manage them well so that overall operations of the corporation can be
improved.
Capabilities
Managers of Company B are not able to manage changes well. They have to encourage
employees and have to make them understand necessity of changes but due to poor efficiency of
managers, workers of Company B are not accepting the modifications and they are resisting
changes (Shaw and Leberman, 2015).
Readiness
It is very important for the higher authorities of company B have to pay attention on
needs of employees and fulfil their needs. By this way they will be positive towards the brand
and will accept changes in the organisation (Vermersch, Carteado and Johnson, 2016).
Power and politics
Power and politics are essential aspects of business unit. If entity fails to give power to
the employees then it would be difficult for the firm to sustain in the market for longer duration.
As after acquisition held then employees of Company B has to work under pressure. Workers do
not get power to share their views and implements innovative ideas in workplace. Top
authorities take all the decision and impose their decision of workers. This impact on moral of
the staff members and they fail to perform their duties well (Cohen and et.al, 2018). Some times'
politics create negativity in workplace because skilled labour do not get promotional
opportunities and the persons those who do not have much knowledge the get chance of
promotion in the organisation. This demotivate the employees and they think to leave their jobs
soon (Haggblade and et.al., 2016).
Managers and higher authorities of Company B work to fulfil the individual goal. This
acquisition has created negative workplace politics in Company B, people those were in the
Company A since starting get first chance to get promotion and the employees of company A
does not get this opportunity. Furthermore, managers were behaving unethically with the
company B employees (Ellis and Bach, 2015). Earlier to this acquisition, company has given
power to their employees and involve them in decision making process. But after the acquisition
all power has gone to the higher authorities and they do not involve people in decision making
process that affect the moral of them and they feel uncomfortable in business unit.
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Centralise power, no involvement of staff members and poor values to the employee
discourage the employees and they fail to accept changes effectively. Many times, they do not
put their hard efforts to complete the given responsibilities effectively (Babbar and et.al, 2017).
Tough rules and regulation, unethical behaviour decreases moral of them and they become
negative towards the brand. That is why, staff turnover rate is increasing in the organisation and
productivity rate of business is getting affected. Management of Company B is required to create
positive workplace politics. They have to motivate the team members and have to give them
power so that they feel happy in organisation and perform their duties well. Higher authorities of
cited firm definitely needs to develop political culture in such a manner so that all employees get
fair opportunity to grow and they can easily understand the nature of organisation (Shaw and
Leberman, 2015). By this way they will be able to perform well and it will help the organisation
increasing productivity of the business.
Knowledge transfer
There are different types of issues that are faced in relation with the changes that has
taken place. The perception that is carried out by individuals differs and there will be people who
face issues in relation with accepting the changes that has taken place. Co A adopts autocratic
leadership style and Co B used democratic. After acquisition issues were faced from the side of
Co B as they have to adopt total new type of leadership style. In democratic workers are
provided with the opportunity to share their view (Bolden, 2016). In other words, suggestions
provided by employees are taken in to consideration for decision making. On the other hand, in
autocratic leadership all the workers are not allowed in decision making top managers are
involved and they take decision from the situation that are faced. Both these are different type of
leadership but the main issue will be faced by workers of Co B. This way, they might work as
per their preferences and can raise conflict situation. In a working environment support of each
employee is highly important so that the task can be carried out in effective manner. All the
workers need to have strong interaction with each other so that they are able to know the type of
skills and capabilities that they possess. Further, there will be differences causes due to post that
each of the worker possess. All the top managers will not have proper information regarding
workers who are from the firm that is accrued. Thus, more opportunity will be provided to Co A
and this can raise conflict situation. Major issue will be faced by workers of Co B as all the
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management strategies applied need to be known by workers so that they can put on their full
efforts to support the organization.
Further, training is an important aspect that is required to be provided to employees so
that they are able to develop or enhance their skills and capabilities. With this respect, all the
workers should be properly monitored so that the areas in which development is required can be
identified. Moreover, it also makes employees to know each other more closely and thus it will
be beneficial for the organization. Further, workers can also get changes in relation with the roles
and responsibilities that they were performing (Cohen and et.al., 2018). Changes in roles take
place when management is able to identify the skills and capabilities that each one possesses.
Apart from this, there may also have difference in pay that is provided. All these areas can only
be developed with proper support by employees and each of the work which are to be
implemented need to have time take so that all workers get adjusted with the new environment.
In addition to this, management need to consider that issues that are faced by new workers so
that they are able to develop trust and confidence among employees. In order to perform any role
it requires to have motivation level so that tasks can be done with willingness.
Globalization
In addition to this, Company A has acquired Company B which provide number of benefits
in terms of globalisation. Securing is a standout amongst the most time-productive development
procedures. It offers the chance to rapidly get assets and centre capabilities not right now held by
organization. There is close immediate section into new product offerings and markets, for the
most part with a perceived brand or positive notoriety, and existing customer base. What's more,
the dangers and expenses regularly connected with new item advancement can drop
significantly. Along with this, company can easily expand its business at global level in
appropriate manner. By having an analysis of diverse features the issues can be resolved in
desired manner.
Moreover, company can also have easy access to resources which need to be referred in
desired manner. By having focus on such kind of practice the overall practice can be advanced.
International business environment affects the organization in different ways. All the companies
are moving towards the global expansion and because of that they have to suffer various factors
which influence the strategies and activities of the business in a great way. The increase of
Globalization has also increase many controversial and the complex issues as the economies and
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societies are becoming more independent with the increase in interactions with each other. In
addition to this, by having continuous development of measures the overall development can be
taken into account.
CONCLUSION
Above study can be summarized that Company A hot acquired by Company B but this
acquisition has made drastic changes in the practices of business unit. After that cited firm was
unable to manage its operations well and retain skilled labour in organisation for longer duration.
Company A is the global brand, operating in India, UK, China and many other nations.
Customers are satisfied with the product and services of business unit. Acquisition has changed
culture of the organisation and leaders have adopted autocratic leadership style. After that
employees are not allowed to take participation in decision making process and they have to
follow instruction of the higher authorities. This autocratic leadership demotivate people and
make them negative towards the brand. In order to manage changes in organisation, company is
required to adopt Kaleidoscope mode. It has to pay attention on power, scope, readiness,
capabilities etc. and accordingly managers have to make changes in the business. Company A
was performing well in the market because it was having efficient workforce but Company B is
not concentrating on its employees and are not giving value to their human resource. That is why
overall growth of the firm is getting affected.
RECOMMENDATIONS
In order to run business successfully, it is essential for the Company B needs to make
changes in its practices. Recommendations are as following:
 Company B has to manage diversity in the organisation. Higher authorities need to fulfil
needs of employees and have to fulfil their requirements so that they feel satisfied and
perform their duties well in the workplace.
 Higher authorities should follow participative leadership style. Managers have to involve
workers in decision making process and have to take their feedback time to time. By this
way, they will feel happy and will contribute well in achieving organisation’s goal. It will
develop healthy relationship between employees and management plus people will accept
changes easily.
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The Change Kaleidoscope PowerPoint Diagram. 2017. [Online]. Available through:
<https://slidemodel.com/templates/the-change-kaleidoscope-powerpoint-diagram/>.
What is the Cultural Web?. 2012. [Online]. Available through:
<http://www.innovationforgrowth.co.uk/Blog/what-is-the-cultural-web/>.
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