Impact of Leadership Styles on Co A After Acquisition by Co B

This report provides a comprehensive analysis of the leadership changes that occurred at Company A after its acquisition by Company B. Initially, Company A, a 200-year-old firm, employed transformational leadership, fostering employee motivation and satisfaction. However, the acquisition led to a shift towards autocratic leadership, resulting in employee dissatisfaction and turnover. The report examines the impact of this change on leadership, information systems, operations, and finance, focusing on the challenges of operational and strategic management. Utilizing the congruency model, the analysis evaluates the acquisition's success, emphasizing the importance of employee benefits and rewards. The report compares the pre-acquisition transformational leadership with the post-acquisition autocratic style, highlighting the negative effects on employee morale and the overall organizational structure. Recommendations are offered to address the issues and improve the leadership practices.

Leading and Managing Organisational Resources

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
ANALYSIS ....................................................................................................................................4
CONCLUSION...............................................................................................................................9
RECOMMENDATIONS..............................................................................................................10
REFERENCES ............................................................................................................................12

EXECUTIVE SUMMARY
Company A is A 200 years old firm, which is famous across the world. The changes
occurred in the organization when it is acquired by the large organization Co B. It was acquired
to increase the profitability and productivity within the firm. Acquisition brings structural and
cultural changes within the organization, the main change that occurred in the organization is its
leadership practice. The acquisition was done for increasing the profit sharing ratio of the firm
and to enhance its productivity. The company is trying to give its best to bring innovations and
specifications into its working. Many employees of Co A was not satisfied with its acquisitions
as they tend to leave the company because they believe the opportunities after the acquisition is
not as per their requirements and not suitable for them.
INTRODUCTION
Leading and managing changes occurring in the organization is one of the most crucial
aspect of the organization. It revolves around developing skills among the employees for
acquiring occurring changes. Generally changes occurred to modify the working of the
organization and to enhance the productivity and profitability of the organization. Leading and
managing changes is the concept which deals with the variations that are taking place in the
organization. Their main significance is to increase the profit sharing ratio of the organization
and to provide overall development to the organization. The main focus of this report is revolves
around the acquisition of Co A by large organization Co B. it occurs for increasing the
productivity and profitability of the organization. Co A is approximately 200 years old firm
which is famous across the world. As per the modernization, Co A adopted the approaches of the
transformational leadership within their organization. The main significance of the
transformational leadership practice is that in helps in bringing changes among individual and
social system of the organization. It also helps in creating and generating positivism among the
employees for establishing their values and tends to develop the leadership qualities among each
and every member of the organization. Tranformational leadership approach is very positive and
it bring motivation among the employees regarding their jobs ad provide satisfaction to them.
Before acquisition, the Co A also initiated measures to bring decentralized culture within the
organization by developing teams for short period of time, this provide methods to develop the
staff more effectively and efficiently. The working patterns of the Co A, before acquisition are

based on the criteria of developing individual along with the organization. But after the company
is being acquired by the large organization Co B, there are various of changes that occurred in
the organization. Before acquisition company is following transformational leadership technique
their employees are highly motivated and satisfied, but as soon as acquisition takes place the
leadership strategy was converted into autocratic leadership style, Autocratic leadership style is
also known as authorized or dominant leadership style, in this the leader controls all the
decisions and role of others in decision making process is relatively less, generally autocratic
leaders are those who take all the decisions, judgements and ideas without consulting others.
They rarely take advice from others and behave in a very dominant manner. As the company
started following autocratic leadership style it creates a adverse effe3ct on the employees of the
organization, as this leadership style is not used by many organisation because it tends to create a
sense of demotivation and dissatisfaction among the employees. The main aim of this report is to
analyse and evaluate the changes occurred in Co A, and their impact on the employees. The
report will concentrate on the changes occurred in leadership, information system, operations
and finance. It will also lay emphasis on the challenges of the operational and strategical
management and leadership patterns of the organisation. The main aim of this report is to
analyse the strategies and operation to evaluate whether the acquisition is successful or it prove
to be failure.
ANALYSIS
Leadership is the foundation of any organization, as it the main criteria which is used to
provide guidance to all the other members of the organization. Leaders are the one who leads the
working of an organization (De Hoogh, 2015). They influence others in order to complete the
work in a desired manner. Leadership is the working base of the organization without it, it
becomes very difficult for the organizations to work in a desired manner. Organizations can not
work properly without the proper leader. It provides goals and objectives to the organization and
also provides guidance to accomplish that goals and objectives. It is consi benefits and
compensations from their new leaders and organizational heads and because of thisdered as a
most significance measure to analyze the working of the organization (Chege, 2015).
Leadership is a very huge concept and there are number of theories, concepts and models
that are present regarding the different measure of the leadership. All other members of the
organization follow their leader to develop and built the values and the vision of their work.

Charismatic leaders, are the one who provide clear and specific vision to the followers in
order to provide evaluation to the employees. They combine the individual interest with the
organizational interests and helps in enhancing the performance of the employees (Dinh, 2014).
Leadership I the concept with various numbers of definitions and meanings , it is most
accurate technique varies from patterns and features of the leadership that can be used in
particular situation. This report is based on the three types of the leadership styles; autocratic
leadership style, transformational leadership style and transactional leadership style
(Hersey,2014).
Co A, is a 200 years old organization which is acquired by large organization Co. B. the
acquisition is done in order to increase the productivity and profitability of the organization. But
there are several changes that are occurred in the organization after its acquisition by the Co B.
The main change that occurred was changes in its leadership patterns (Hoffman, 2018).
The new leaders of the organizations are the one who tend to follow the autocratic leadership
styles. Autocratic leaders are the one who takes all the decisions and implementation without
even discussing with the other members, they are the dominant and the rude leaders who does
not give much importance to their employees. Such leaders does not involve others in decision
making processes and in case they involve them they don't use any of their suggestions. Co A is
acquired by the Co B, the new leaders of the organization are very dominating, controlling and
retains all power within them. It has also been seen that their behavior with the employees is
little rude (Katsikea, 2015).
Autocratic leaders restrict the contribution of other members of the organizations as they
don't consider the values and suggestions of the any other employees of the organization.
Autocratic leadership is not very popular among the organizations as it reduces the motivation
and satisfaction level of the employees, such leadership practices reduce the satisfaction level of
the employees as they tries to manipulate the employees and force them to pursue their ideas and
suggestions they hammer the individuality and the self determination of the employees
(Kim,2017).
The leaders of Co A featured by authoritarian leadership which in other terms can be
considered to make elaboration on analysis. Though it carries some benefits and weakness the
traits and characteristics that are efficiently followed to acquire the desired goals and objectives.
Co A opted rigid working trends and rigid structure and the rules are made importantly to

consider that are outlined to get communicated effectively. Leaders almost concentrate on
making all the decisions related to companies and there is absence of involvement of group (Renz
and Herman, 2016). The major hindrance that are caused by members of group as they do not
consider and trust the decisions that are made by leaders of Co A. beside this factor the leaders
focus on elaborating the process and methods that have to opt by the workers. Apart from this
huge time and concentration is mad eon focusing the tasks that are important and innovations are
made that are required to create effectiveness in bringing out effi The leaders of Co A featured
by authoritarian leadership which in other terms can be considered to make elaboration on
analysis. Though it carries some benefits and weakness the traits and characteristics that are
efficiently followed to acquire the desired goals and objectives. Co A opted rigid working trends
and rigid structure and the rules are made importantly to consider that are outlined to get
communicated effectively. Leaders almost concentrate on making all the decisions related to
companies and there is absence of involvement of group (Renz and Herman, 2016). The major
hindrance that are caused by members of group as they do not consider and ciency.
The focus are also made on the efficiency as they lack in particular employees due to non
coordination or misunderstanding of process and methods. The small groups are enhanced with
training methods in practical to enhance the execution (Goetsch and Davis, 2014). This analysis
allows the employees to build trust and further on maintain discipline and obey the rules
appropriately.
While on the other hand the leadership strategy followed by the Co A, before acquisition
is transformational and transactional leadership styles.
Transactional leadership is the management leadership style which revolves around the
supervising, organization and monitoring the performance criteria of the individuals, such
leaders promote their employees through rewards also assign punishment to them whenever they
commit any big mistake. Where as transformational leadership style is the style where leaders
work with their followers to develop the skills among them in order to provide assistance and
guidance to them. They inspire their followers in order to provide motivation to them. Both
transformational and transactional leadership provides motivation to their employees.
Since the new organizational heads of the Co A is adopting autocratic leadership styles
and due to this employees turnover is taking place in the organization. Because of this situation
there are several types of problems that are being faced by the Co A, this puts a question upon

the strategical and operational leadership of the organization. For better assessment of the
problem the company has used the congruency model, that will help in providing overall view to
the working of their organization and the areas where it is lacking. Congruency model, is used
to examine the working of the organization depend upon its operational system. In this method
various approaches of the company is being analyzed as it is broken into separate elements, and
the model is used to evaluate each and every part of the organization (Saurombe, 2017). As per
the model there are various fundaments that effect the working of the organization. For example
the one who is highly skilled and conduct his work with full potential expect rewards and
benefits for developing their career and gaining recognition within the firm. Structure of the
organization is defines as the pattern or manner of the organization upon which its working are
depended. It includes behavior, beliefs, cultural and traditional aspects and diversity within the
organization. It also lay emphasis on the leadership styles followed by the organization. As per
the situation of members of Co A, it has been seen that their members are not getting any kind of
benefits and compensations from their new leaders and organizational heads and because of this
the talent of the organization are leaving the company for analyzing the better opportunities. It is
very important for the organizations to provide benefits and rewards to the employees who
deserves and give their full potential in success and development of the firm (Naff, 2017).
Before acquisition of the Co A by the large organization the working criteria of the
company was people oriented and their leaders believes in following transformational and
transactional leadership styles in order to provide motivation and satisfaction to their employees.
As per some reports and study it has been seen that transformational leadership provides
various kinds of benefits to the firm and to the individuals, it is seen as a strategic fit for the firm
as it provides positive supervision to the members and employees of the organization and also
helps in creating positive working environment for the employees. Autocratic leaders restrict the
contribution of other members of the organizations as they don't consider the values and
suggestions of the any other employees of the organization.
Autocratic leadership is not very popular among the organizations as it reduces the
motivation and satisfaction level of the employees, such leadership practices reduce the
satisfaction level of the employees as they tries to manipulate the employees and force them to
pursue their ideas and suggestions they hammer the individuality and the self determination of
the employees (Northouse, 2018).

Since the new organizational heads of the Co A is adopting autocratic leadership styles
and due to this employees turnover is taking place in the organization. Because of this situation
there are several types of problems that are being faced by the Co A, this puts a question upon
the strategical and operational leadership of the organization. For better assessment of the
problem the company can use various strategies to identify , that will help in providing overall
view to the working of their organization and the areas where it is lacking (Snell, 2015).
The Co A is 200 years old company will full expertise in its area of working and because
of that they are famous on global level across the world. Variety of products are offered by Co
A, to their customers. It is famous among their customers because of their quality, standard of
products, reliability and durability. In UK the only steam turbine producer is Co A. the members
of the Co A, always indulge in enhancing the quality and standards of their products and tries to
brings innovation and creativity in to their working in order to increase the trust of their
customers. The demand of the products offered by Co A keeps on increasing at a high pace
because of their quality and creativity (Peter, 2018).
The operational management of the Co A was different pre and post acquisition of it by
large organization Co B. Before acquisition the company use to follow decentralization system
to encourage the values and importance of the culture within the employees of the organization.
This helps in creating values and beliefs among the employees and also helps in keep them
motivated and satisfied towards their work. Before acquisition, the Co A also initiated measures
to bring decentralized culture within the organization by developing teams for short period of
time, this provide methods to develop the staff more effectively and efficiently (Schermerhorn,
2014). The working patterns of the Co A, before acquisition are based on the criteria of
developing individual along with the organization. Co A never believes in compromising the
quality and standards of their products and they always provide better and accurate services to
their employees (Renko, 2015). The culture of the Co A was very motivating and positive as all
the members are highly motivated towards their work and conduct their operations with full
accuracy and efficiency. The communication system of the organization across countries is very
sound and it tends to bring positivism among all the organizations . Though being in different
countries the employees still work as a team and have a proper communication channel for
maintaining the flow of information and managing quality (Neale, 2016).

The total overall workforce of Co A is consisted of 500 people. Though restructuring is
a very common strategy for cost cutting and many companies comply with it for cutting
expenses. The new leadership policies used downsizing as a strategy for cost reduction and in
consequence 10% of the entire workforce has been made redundant (Veloso, 2015). It has been
found that 89% of companies that adopted downsizing had a purpose of cost cutting, yet only
46% of those companies achieved their goal. Yet the outcome of this action not only yields
reduced cost in return many companies are negatively affected in terms of losing skills and
experience. In Co A Leadership practices followed by the new leaders after acquisition of the
company was the topic of stress , as the significance of leadership practices vary from culture to
culture (Nguyen, 2017). Leadership is a very huge concept and it is different in each and every
organizational cultures. It is very important for the leaders to develop the quality to handle
individuals of different cultures and traditions in order to maintain transparency in the
organization. All the managerial activities of the organization are conducted by its managers and
operators. In an organization leaders have more authority then managers as they are the heads of
the company. Leaders are not the one who directly interact with the members of the
organization. Managers communicate with the employees and all the other staff members on the
behalf of the leaders. For effective working of any organization it is very important for their
members to make optimum utilization of the available resources, in order to avoid the situation
of spoilage or losses.
CONCLUSION
While, delivering performances by the staff and employees of Co A, the hindrances and barriers
that are caused due to autocratic leadership styles have been detailed in this report also, the
policies and procedures that need to modify as the performances are lack behind have been
discussed. The absence of involvement by leader in the process of decision making create
barriers in the execution of results as they company lack in nuances. The employees by getting
involve in the decision making process can allow the management to suffer low in terms of
meeting enhancement. This is because, the effectiveness can be brought out by the employees as
they render by performing roles and responsibilities, they understand the need which can create
innovations in the process by considering their suggestions. Also, the traits and characteristics of
leadership cannot be learned or taught in school or colleges, this have to explored with the
exchange of knowledge, skills and traits and behavioral enhancements. Every person carriers

their own perception which can be developed by the exchanging of their thoughts and
understanding the needs effectively. Leaders of Co A carry own morale, creativity, and thoughts
this could be explored more when the are chances of exchanging the thoughts and views takes
place. The lack of involvement of employees in decision making process have been detailed
which questions the method of autocratic leadership. As, it has to be modified to bring out the
effectiveness in order to meet the efficiencies in results of Co A. Also, all the responsibilities are
hold by the leaders of Co A which again create barriers and question the other departments for
the functioning of roles and responsibilities. This create barriers and the method of holding
responsibilities in styles of autocratic leadership have to be developed and modified. This
modification indicates towards the effectiveness and positive results o0f transformational
leadership styles that was already existed in Co A. one of the negative factor or characteristics
and feature of Autocratic leaders are they executed the results by hitting and punishing the
employees and other staff which create negativity in the environment. This lead to fear, threats
and other things which allow the employees to get away from effective performances. The
necessary modifications and implementations of process and methods have to be made by the
company A in order to meet the efficiencies in results. This bring out the performances by
exploring the talents and knowledge and skills that are employees in creating nuances
RECOMMENDATIONS
The issues that exist and raised due to autocratic leadership c should be converted by Co
A to meet the competencies and results effectively. In case if it is not transferable there are
certain and specific recommendations regarding process and methods (Schermerhorn and et.al.,
2014 ). By which the changes can be retained and reformed. The following are the feedback that
are described in this report to bring out the efficiencies. Recommendations of, the process of
decision making are partially considered as this should be modified by involving the staff and
employees of Co A, as they can suggest and complaint in better forms. Better in the sense the
process is performed by the employees every day hence, they could suggest the leader which can
bring enhancement. Also, another hindrances that cause by leaders due to completion of work is
done by threats and punishments which is highly annoyed able. The effectiveness cannot be
brought out in this environment. Human beings or any of the well beings cannot survive under
threats and punishments as they definitely lack in one of the consequences that have to met by
them effectively. Apart from this all the roles and responsibilities are hold by the leaders of Co A

which create though of favoritism, among the employees and staff. To coordinate and manage
efficiently in order to gain the results of the Co A that have already set by the department of
management. This allow the leaders to stay limited to the thoughts skills and knowledge that
personally acquired by oneself (Yoder-Wise, 2014). Also, the credit of the performed work which
are done by employees are grabbed by the leaders which is unfair in terms. This create huge
hindrances and barriers for the further functioning of Co A. there is complete absence of
development of skills and knowledge cannot be widely used. The modification have to be
executed by relating the consequences which resulting negatively in the premises of Co A.
Further on, the trust have to be build by the leaders by avoiding the employees about their roles
and responsibility. Leaders discourage the employees by assuming about their lack of ownership
while promoting of specific tasks for the company which have to modify and implementation of
new rule sand policies have to done effectively. Hence, the styles of leadership will not be
grabbed by specific training methods, books or any kind of making search. It is explored
elaborately by distributing the knowledge and skills that may lead the Co A to face the situations
of positivist by resulting them effectively.
REFERENCES
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