Understanding and Leading Change in Organizational Contexts
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This report explores the impact of change on organizational strategies, leadership decision-making, and behavior. It evaluates measures to minimize negative impacts and applies various leadership approaches for effective change management.
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Understanding and Leading Change 1
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Table of Contents Introduction......................................................................................................................................3 Task 1 – Management of the impact of change...............................................................................4 P1. Comparison of different organisational examples where there has been an impact of change on an organisation’s strategy and operations...................................................................................4 P2. Evaluation of the ways in which internal and external drivers of change affect leadership, team and individual behaviours within an organisation..................................................................4 P3. Evaluation of the measures that can be taken to minimise negative impacts of change on organisational behaviour..................................................................................................................4 Task 2 – Leadership decision making.............................................................................................8 P4. Explanation of the different barriers for change and determining how they influence leadership decision-making in a given organisational context........................................................8 Task 3 – Leading change...............................................................................................................11 P5. Application of the different leadership approaches for dealing with changes in a range of organisational contexts..................................................................................................................11 Conclusion.....................................................................................................................................13 Reference list.................................................................................................................................14 2
Introduction Rapid growth and development is leading to the occurrence of rapid changes taking place. There are different changes that take place within and outside an organization. Both the internal changes and external changes have a direct impact on the operations of an organization. This report comprises of a plan and anticipation to deliver organizational changes. This report is also going to help in the predetermination of timely and appropriate interventions need for the maximization of the benefits and minimization of the risks of organizational changes. The report comprises of the comparison of ways in which changes affect the strategies and operations of an organization along with the evaluation of the influences, which the drivers of change have on the behaviour of an organization. The report also comprises the determination of the different barriers to change that influence the decisions made by leaders and the application of a range of leadership approaches to a change initiative. The report is going to help in development of knowledge about the changes taking place within an organization and the ways in which the impact of changes can be managed within an organization. 3
Task 1 – Management of the impact of change P1. Comparison of different organisational examples where there has been an impact of change on an organisation’s strategy and operations. Large and small firms experienced different changes in the current situation of the market. The alternation of the situations has huge impact on the organisational aspects. As the globalization is increasing rapidly, the opportunities for the organisational growth are increasing simultaneously. Individual employee of the organisations needs to understand the variation that is happening in the diverse market (Slack, 2015).The organisations implement strategies that can assist to accomplish the pre defined objectives of the company in minimum time. The administration team of the organisation must recognize the objectives and execute the strategies accordingly. The alternation can be hard to predict as the outcome of the new strategies is uncertain. The strategic alteration in the organisation is important as the service and product quality of the company is directly dependent on it. Process:the corporate strategy of changing procedure can be divided in four different parts that includes review, implementation, planning as well as monitoring. These are the four parts that are essential to execute any alternation strategy within the organisation regarding the working process. The first phase in considered as planning. In this phase, the managers of the organisation determine the objectives that need to be accomplished and build the strategies accordingly (Dohertyet al.,2014).The planning phase also includes testing as well as researching. The next phase of changing procedure is implementation as the strategies need to be implemented properly after planning it. The managers of the organisation review the strategies in order to distribute it in team members who have efficient skill set regarding the task that is allocated to them. The next phase is monitoring. The management team of the organisation monitors the whole work process to supervise the strategies if it is effective or not. The managers alter the strategies according to the outcomes (Veal, 2017). In the case of Apple Inc, the managers work in an efficient way to increase the productivity and efficiency as it can be seen in its products. 4
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Significance:the strategies of the organisation are implemented to direct the decision making of the management team that is effective from the broad room to front office. The strategic planning is considered as the road map that assists the organisation to have proper vision about the business. The alternationin strategiesdirectlyaffects the operations of the organisation (Bryson, 2018). Samsung and Apple Inc. implement proper strategies in its work process as well as maintain the schedule of the employees with proper structure. In this way, both of the organisations provide elite class products for the customers. The organisations also alter the strategies to efficient the productivity. The management team of Samsung and Apple Inc explains the strategies to the employees that assist them to understand the working process of the organisations. P2. Evaluation of the ways in which internal and external drivers of change affect leadership, team and individual behaviours within an organisation The work culture of the organisations is mainly based on various internal factors such as policies, trainingmaterials,newslettersandphilosophicalstatementsaswellasinterpersonal relationships. In order to keep the employees satisfied and happy, the company should establish respectable relationship for individual employee (Sekaran and Bougie, 2016). Samsung and Apple Inc are considered as the major companies which provide appropriate instructions for individual employee that assist the employees to accomplish the goals faster. The additional instructions help the employees to work with efficiency. The organisations can expect efficient outcome from the employees when sufficient instructions are given to them. Structure:The current operations of the organisations are directly dependent on the structural aspects which belong to the internal factors of the company. The organisations divide its work between the teams that consist of employees who have similar set of skills. The organisational structure has huge impact on the work process of the employees as it increases the efficiency (Cameron and Green, 2015). For example, Apple Inc implements the structural aspect in the working process as the staffs do not have control over the final product. The company strategically implement the structure within the work place that assists the employees to understand the allocated work easily and they can work efficiently to reach the goal faster. External factors: 5
The organisations need to interact with the customers in order to do business. The image of the organisations is highly influenced by the perspective of the customers. The customers of a company are considered as the most valuable aspect that belongs to the external factors. In case ofmovingawayfromthepotentialexternalcustomers,thecompaniescanfaceseveral complexities regarding the income. The companies need to make strategies that can provide satisfaction to the potential customers (Northouse, 2015). The organisations should implement sensitivemethods of communicationthat can assist the companiesto maintainthe right impression on the external audience. In order to establish positive impact on the society, the organisations need to maintain professional correspondence as well as letters. In the case of Apple Inc, the website of the company welcomes the visitors and provides information to them regarding the most recent products. In this way, the company maintains a good image to the external audiences. Economic:Another external factor that is important for the company is economic aspect. This external factor affects the success of the business. Any alternation in the organisation regarding the economic aspect can cause several complexities within the company. The economic situation plays a vital role in the business of the organisation (Bolman and Deal, 2017). In case of Apple Inc, the company faced several complexities in the economic condition when the CEO of the company, Steve Jobs passed away. These types of alternations in the organisation directly affect the organisational growth. After the blunder, Tim Cook took over the position of CEO and executes the changes effectively. P3. Evaluation of the measures that can be taken to minimise negative impacts of change on organisational behaviour. The above discussion shows that there are different types of negative impacts on the behaviour of an organization that take place due to the changes taking place in the organization. Changes are of various types (Ghitulescu, 2013). For example, adaptive change and constructive change are the two most common types of changes taking place in an organization. The measures to be taken for minimizing the negative impacts from changes on organizational behaviour are different from one another depending on the type of changes. 6
Both internal and external drivers of change can have an influence on the behaviour of individual, behaviour of teams as well as leaders (Jacobs et al., 2013). However, it is required to develop a number of strategies and measures that can be used for the minimization of the negative impacts of change on the behaviour of an organization. These measures can be applied as and when required for the prevention as well as reduction of the negative impacts of change on the overall behaviour of an organization. These measures can be taken irrespective of any sector and any structure of a company. The two most effective measures that can be adopted for minimizing the negative impacts of change over the behaviour of an organization are the following – Using systems theory and continuous improvement models for the prediction and proactive planning for change – The systems theory refers to an interdisciplinary study of various systems that had been proposed during the year 1940 by Ludwig Von Bertanlanffy and further developed by Ross Ashby (Luhmann, 2017). This theoryrelates to more than one branch of knowledge that involves information about the nature of the complex systems present in the society, science and nature. This framework helps in the investigation and description of a group of objects (an organization, a society, a single organism, etc.), which work collectively for the production of some result (Willems and Polderman, 2013). The use of this model can be useful for the prediction and specification of the teams, individualsand the overall behavior of an organization. This specification of organizational behavior and the prediction of the changes in organizational behavior through the application of systems theory help in getting an idea on the way the organizational behavior are going to be negatively affected due to changes. This prediction can in turn be used for the proactive planning of tackling and managing changes in an organization. For example, any company can use systems theory to predict and proactively plan the changes that are going to take place in the company. The continuous improvement model can also be used for the minimization of negative changes in the organizational behaviour due to changes (Fryeret al., 2013). The continuous improvement model refers to an on-going effort of an organization for the improvement of products, services and processes. The efforts can seek “breakthrough” improvement as well as “incremental” improvement over a period. This model can be helpful for the minimization of negative impacts 7
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of changes on organizational behaviour. This is because this model focuses on a continuous improvement of products, services and process irrespective of any changes taking place in the organization, thereby helping in the prediction and proactive planning for change within an organization. Using the Burke-Litwen model for making the change process effective as well as efficient – The Burke-Litwen model is another effective strategy for making the process of change efficient along with the minimization of the impact of changes on organizational behaviour (Spangenberg and Theron, 2013). This model helps in showing the different drivers of changes within an organizationalong with ranking them in termsof significance.Thismodel isexpressed diagrammaticallybyshowingthedifferentdriversofchangebasedonimportanceor significance. The analysis and assumption of these drivers are helpful for making the process of change more efficient and effective, as the drivers of change are already known. It helps in dealing with change drivers with more effectiveness. The diagrammatical expression of the most significant factors of change has been illustrated below – 8
Figure 1 – Figure showing the diagram of the Burke-Litwin model (Source:Stone, 2015) However, apart from the above mentioned measures, there are various other measures, which can be used and applied for minimizing the negative impacts of change on the organizational behaviour. A few of them are – Creation of a new and effective way for the communication of the changes, new initiatives and progress with the employees of the organization Marketing the new and changed business strategy to each individual, groups, team and personnel working in the organization Selection of a group or handful number of change agents working in key positions of the organization, who will help in managing the planning as well as implementation of changes The discussion of the measures and strategies made above are the most useful and effective measures for the minimization of negative impacts of changes within an organization. These measures can often prove to be the best and most essential measure for prevention of the resistance of employees and personnel towards the creation of resistance for change. 9
Task 2 – Leadership decision making P4. Explanation of the different barriers for change and determining how they influence leadership decision-making in a given organisational context Change is one of the most significant aspects of a business and targets to shift from a particular state to another for the betterment of the business (Hayes, 2014). As discussed earlier, changes are of different types. Different types of changes face different types of barriers. Getting an idea of the barriers for change can be helpful for a business for the creation of successful strategies for the identification and implementation of changes within an organization. Conduction of a baseline assessment is one of the most effective processes, which will be helpful for an organization to identify the actual and potential barriers in the path of change. Barriers always act as a major gap between the current and recommended practices, which eventually have a negative impact on the production process and operations of a business. In order to prevent the arousal of large number of barriers in the path of change, the most appropriate way is to pinpoint the major barriers for change. The barriers to change also act as an influence on the decisions made in leadership. The most common barriers in the implementation of changes and their effect on leadership decision-making are the following –Lack of employee involvement –The lack of employee employment is one of the most common barriers in the path of change (Mimuraet al., 2015). Employees always tend to fear change. Until they are involved in the process of change, in most cases it is found that the most efficient and loyal employees of a company resist change. The biggest blunder of most organizations is not involving its employees in the process of change. This acts as a factor of fear among employees and leads to the rise of the lack of desire of the employees to embrace any new culture, which eventually makes them act as a barrier to change. At the same time, lack of employee involvement also acts as an influence eon leadership decision-making. The decisions made by a leader mostly turns out to be ineffective since there is no involvement of employees in the decision-making process and the decision that is actually made. 10
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Lack of an effective strategy for communication –Various organizations does not have an effective strategy of communication (Cummings and Worley, 2014). In most of the organizations, it is found that leaders assume that as soon as they announce a change that is taking place, people will be ready for adjusting to changes and will get ready for the implementation of the change. However, it is the most silliest and ineffective ways of introducing change, which leads to the arousal of forceful resistance of employees to change. An effective communication should be adopted to introduce the change to employees along with telling them how they should adopt the change and what will the benefits of adopting the change. Communication is one of the most essential factors for becomingasuccessfulleader.Withouttheadoptionofaproperandgood communication strategy, it is impossible for leaders to reach out to the employees or subordinates and poor communication leads to resistance to change. Lack of effective communication strategy influences leadership decision-making in negative way. The decisions taken by a leader does not satisfy the needs and perspective of employees, leading to resistance to change. Unknown current state –Any change is difficult for companies that do not have an idea of their present state (Pugh, 2016). Any trial of introducing and implementing changes without any conduction of an assessment or an understanding of the present blueprint of the organization is one of the common habits of many companies. Such companies fail in realizing that the failure of analysing the present blueprint of the company acts as a barrier to change they hope of introducing and implementing. The blueprint helps in going through the blueprint and understanding it evidently makes it easier for a company to plan and changeover to the desired state. If the current state of an organisation is unknown, it becomes difficult for leaders to make effective decisions. The decisions that are taken by leaders without knowing the current state or blueprint of an organization are often the most ineffective and wrong decisions taken by the leaders. Organization complexity –This is another common barrier to change. There arises a certain situation in a company when the company starts developing complex processes, which makes the process of planning and implementation of change more complex in nature (Burke, 2017). The complexity in an organization can be of various types such as complex processes, complex systems and products, all of which contribute to the barriers 11
of change because they become make it difficult for personnel to understand. The break of the barrier of organization complexity helps in making the process of change introduction and implementation easier. Organizational complexity makes it difficult for leaders to make decisions, as the decision-making process of leaders become complex due to organizational complexity. Competitive forces –In several cases, external forces are the drivers of organizational change. For example, external threats, competition, market conditions, technological change, economic forces, etc. act as a barrier to change (Flemmig and Beikler, 2013). These forces act as a barrier to the path of bringing about any kind of changes within an organization. The competitive forces act as an influence on leadership decision-making. This is because the decisions taken by a leader have to be taken by considering the impact that the competitive forces are going to have on their decisions. The barriers to change mentioned above can act as a barrier to change in Apple Inc. Apart from the above factors, many other factors act as a barrier to change. For example, fear of unfamiliar or unknown, ineffective leadership, a bad culture of planning shifts, etc. also act as a barrier in the path of change. These factors can be acting as a change barrier for Apple Inc. as well. The barriers to change play a huge role in influencing the decision-making of leaders. The force field analysis conducted by Kurt Lewin gives an overview of the forces for change and the forces against or resisting change (Burnes and Cooke, 2013). According to the force field analysis, the forces for change are of two types – external and internal (Swanson and Creed, 2014). The externalfactorsincludemarketplace,technology,economicchanges,labourmarketsand government regulations and laws (Sarayrehet al.,2013). On the other hand, the internal factors comprise of people problems and administrative processes (Burnes and Cooke, 2013). The factors that act as resistance to change are uncertainty, dependence, group resistance, concern on personal loss, and awareness of the weaknesses in the proposed changes. Each factor acts as an influence in the process of leadership decision-making. The barriers to change mentioned above also act as a barrier in effective decision-making of leaders. However, doing the correct thing is important for leaders when dealing with change because changes mostly affect people. The decisions that are taken by a leader should be taken by considering this fact. 12
Task 3 – Leading change P5. Application of the different leadership approaches for dealing with changes in a range of organisational contexts The large-scale sustainable changes taking place in different organizations require emotionally intelligent and strong leadership for succeeding (Doppelt¸ 2017). The framework of leadership comprises of moral purpose of making positive difference, understanding change, building and improvingrelationships,creationandshareofknowledgeandcoherencemaking.This frameworkcollectivelyhelpsindealinginresistancetochangeandtransformingthe organizational culture. The art or the success of leadership remains in having different types of approaches to a situation or organizational context and knowing when the right approach can be used. Various approaches of leadership can help in overcoming various resistance to change and hepintheeffectiveimplementationoforganizationalchanges.Thedifferentleadership approaches that can be used for dealing with changes in a range of organizational contexts are as follows – Situational leadership –The situational leadership approach refers to a leadership style that has been developed by Paul Hersey and Kenneth Blanchard (Giltinane, 2013). This approach of leaderships refers to a style of leadership when a leader adjusts his style of leadership to fit to the level of development and changes taking place in the organization he or she is working (Sethuraman and Suresh, 2014). The leader has the right of changing his or her style of leadership according to the situations arising in the organization. The situational leadership is the most suitable leadership approach for dealing with changes, as this leadership approach adopts the suitable leadership style as and when needed. For example, if the operations management of Samsung plans to bring about a change in the processes of manufacturing its mobile phones, it is obvious that the employees of the company might be resistant. In such a situation, the leaders of the company can adopt situational leadership to deal with the resistance of employees and implementation of the change. 13
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Transformational leadership –Transformational leadership approach was introduced by James MacGregor (Avolio and Yammarino, 2013). According to this approach, the leader works with his or her subordinates in order to identify the change needed, creation of a vision for guiding the change with inspiration and executing implementing the change withthecommittedgroupofsubordinates(Northouse,2015).Transformational leadership is also an effective leadership approach because adoption of this leadership approach involves working with subordinates, which help the leader in management of change. For example, if Apple Inc. focuses towards cutting off the costs of the company, changes are required to be brought in the different processes and functions of the company. A leader can implement this change using transformational leadership. Transactional leadership– Transactionalleadership is another form of leadership approach that focuses on organization, supervision and performance of the subordinates and organization in which the leaders themselves promote compliance with followers through both punishments as well as rewards (McCleskey, 2014). For example, due to increasingcompetitioninthemarket,Samsungmightrequiretobringabout organizational changes. The barriers to this change can be tackled with adoption of transactional leadership through the compliance of the leaders with the followers by offering rewards to them. 14
Conclusion The discussions made in the report has been helpful for getting an overview of the different types of changes taking place in an organization and the ways in which changes can be managed. The comparison of different examples from organizations helped in understanding how does changes affect the strategies and operations of organizations. The evaluation of the ways in which external and internal drivers of change influence leadership, team behaviour and individual behaviours in an organization helps in understanding how does the behaviour of personnel in a organization are affected due to change. Similarly, the evaluation of the measures that can help in minimizing negative impacts of change on the behaviour of an organization helps in acquiring knowledge on how to manage changes by minimization of negative impacts. The discussion of the different barriers for change and the determination of how the barriers influence decisions made by an organization helps in understanding the barriers faced by the leaders in an organization in decision-making. Lastly, the application of various leadership approaches to deal with change helps in understanding how leadership can help in the management of changes in an organization.Thus, the report helps in gathering a comprehensive knowledge on change management. 15
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