Drax Ltd: Comprehensive Report on Leadership and Resource Management

This report provides a critical analysis of Drax Ltd, a UK-based company specializing in fire alarm and security systems. It examines the company's challenges in managing organizational resources, including human resources, financial resources, and knowledge management. The report highlights the company's shift towards leveraging Internet of Things (IoT), machine learning, and artificial intelligence to regain market share. It analyzes the leadership situation, financial performance, and employee skill gaps, proposing transformational leadership as a suitable approach to drive innovation and address human resource issues. The report recommends integrating the two divisions, fostering a climate of innovation, and integrating leadership with IT to exploit technological advancements, ultimately aiming for sustainable growth and improved resource utilization.

Running head: LEADING, MANAGING ORGANIZATIONAL RESOURCES
LEADING, MANAGING ORGANIZATIONAL RESOURCES
Name of Student
Name of the University
Author Note

1LEADING, MANAGING ORAGBIZATIONAL RESOURCES
Executive Summary
The organizational resources refer to all the resources in the organization that is used by the
organization for the purpose of accomplishing the objectives. Different resources are used by the
organization for the same purpose for instance the financial resources, human resources, physical
resources and the information resources. It becomes important to manage and lead the resources
in a proper way in order to efficiently achieve the organizational objectives without wasting
these resources. The company chosen for the purpose of this study was Drax Company of United
Kingdom. The main aim of the paper is to highlight what are the present challenges that the
company is facing with the use of all these resources and the way in which these can be used
properly.

2LEADING, MANAGING ORAGBIZATIONAL RESOURCES
Table of Contents
Introduction......................................................................................................................................3
Critical analysis of hot topic............................................................................................................3
Leadership Situation at Drax.......................................................................................................3
Management of human resources................................................................................................4
Financial resource management..................................................................................................5
Management of knowledge of employees...................................................................................5
Leadership Style suitable for the present situation at Drax.........................................................6
Conclusion.......................................................................................................................................8
Recommendation.............................................................................................................................9
Climate of innovation and creativity...........................................................................................9
Integrate the two divisions and therefore change the culture of the organization.......................9
Integrating leadership with the information technology to exploit the technological
advancements.............................................................................................................................10
References......................................................................................................................................11

3LEADING, MANAGING ORAGBIZATIONAL RESOURCES
Introduction
The organizational resources refer to all those resources that help an organization in
achieving its objectives. There can be different resources of an organization such as the financial
resources, information resources, human resources and physical resources (Albrecht, Breidahl
and Marty 2018). There exists a strong relationship between leadership in the organization,
operations management, information resources and financial resources and this helps in adding
competitive advantage to the company. In order to properly manage and lead the organizational
resources it is necessary to have an effective leadership in the organization to properly manage
the resources. The company chosen for the purpose of this study is Drax limited that is a UK
based company and is engaged in providing fire alarm products and various solutions to its
customers who are basically people engaged in the security, alarm and other industries
(www.drax.com 2019). The company believes in technological in sights, team work and hard
work. The company is engaged in installing, designing, and other activities related to alarm
systems and other security systems. The company is presently facing many issues related to its
resources such as issues related to human resources, financial resources, information technology
and others. The main aim of the paper is to critically analyze the organizational resources and the
problems related tom managing the same and to show the opportunities for improving the
management and leading the organizational resources.
Critical analysis of hot topic
Leadership Situation at Drax
Drax is a company that has been successful in the field of fire alarms, security systems
and others through traditional methods and it is known for carrying out its activities in a

4LEADING, MANAGING ORAGBIZATIONAL RESOURCES
traditional manner (Ryan, 2016). The company has been able to improve the sales of its
technology products in a traditional manner. However, presently the company has lost its market
share because of its incapability to take advantage of various technological advancement that is
being exploited by other organization in the market and as a result the company has lost its
position. This has made the directors rethink about the marketing strategies and positioning and
shift from a hardware, software seller to a company that makes use of internet of things, artificial
intelligence (Sosik and Jung 2018). This will also help the company to collect and disseminate
the necessary information to the customers and other stakeholders of the company. This will
actually act as a competitive advantage for the company because there is no other company in the
market that has the facility of collecting the data, analyzing the same and exploiting the same.
The company can regain its position in the market in the coming 3-5 years and becoming
competitive in the market by adopting innovative operations and making use of internet of
things, artificial intelligence and others in order to gain a competitive advantage over other
companies.
Management of human resources
However, it has been found that the company lacks a proper innovative and creative
climate and therefore it is unable to carry out all the technological innovations properly (Jensen
et al. 2016). This is one of the major human resource problems that the company is facing that its
employees are not ready and not prepared to carry out all the innovations. The employees of the
company are basically unskilled or not properly skilled to undertake the disruptive technological
changes within the organization. This necessitates the existence of proper leadership style. The
present leadership style is such that they are unable to create a proper climate that promotes
innovation within the organization; the present leader is unable to provide proper training and

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development to the existing employees such that they can be prepared for the paradigm shift that
can help the company regain its position in the market (Dunne et al., 2016).
Financial resource management
The inefficiency of the present leaders can also be seen from the financial reports for the
year 2018 as the company liabilities has increased which shows that the company is unable to
manage its financial resources properly. The company’s liabilities in the year 2017 were
1090067 and for the year 2018 it is 1262351. This also shows that the company is not in a good
position to return its loan amount due to the existence of higher amount of liabilities. The
company is a labor intensive and therefore if the company decides to shift its paradigm, the
decision will be strongly opposed by the employees of the organization. This is so because
people will have a fear of loss of jobs but if the leader can properly explain the reasons for the
same purpose and shows the employees the bigger picture the employee’s resistance will be
reduced.
Management of knowledge of employees
The present leaders are unable to properly recruit and select staff, provide proper training
and development and also unable to motivate the employees. If a transformational leader had
been there he could have motivated the employees by creating good relationships with them and
by providing the employees with proper training and development such that they can be ready
for the technological changes that are going to take place and that will help the company regain
its position in the market (Webb 2017). Due to proper training and development activities by the
leader, the company is facing resistance to change from the employees because they feel that
they would become obsolete (Donate and de Pablo 2015). The leader is unable to properly
manage the employees such that most of the employees are reaming ideal and that is further

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leading to loss of financial resources because the company is unable to make the best possible
use of the employees of the organization. The company is unable to manage its financial
resources properly due to lack of proper leadership in the organization and as a result the
company is unable to pay proper salary to the employees due to which the employees are
becoming less competitive and are not motivated to give their best. If a good leader was there in
the organization, the leader would have made optimum utilization of the resources and there
would not have been such lack of financial resources. The company is not providing proper
training and development that is needed by the employees of the organization to be able to adapt
to the technological changes. Due to the lack of same there is a resistance to change. People are
unable to adapt to the paradigm shift or to support the organizational decision of shifting from
being a seller of hardware and software to making use of artificial intelligence, internet of things
and others. If the employees were given proper training and development then the company
would not have faced such a loss of position in the market and therefore would not have the
scarcity of financial resources. A good leader is one who understands the need for growth of the
individuals for the growth of the organization as a whole. When all the employees have proper
skills through regular training and development they can help to improve the performance of the
organization and therefore can increase the flow of financial resources in the organization in
form of profits and others. The company needs to make use of Internet of things, artificial
intelligence and other technological changes in order to meet the needs if the customers through
its improved services and therefore regain its market position.
Leadership Style suitable for the present situation at Drax
A transformational leader can act as a change agent and carry out the technological
changes in a proper way and make use of the same in order to improve the performance. Without

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proper leadership in the organization, the people will resist any form of change; the people will
not be given proper training and development to adapt to the changing situations in the
organization and the financial resources of the organization will also be used exploitatively and
wasted if the people of the organization are not properly trained. Therefore a good leader can
help to change the present scenario of the organization and help it to regain its original position
in the market and meet all the challenges of the organization that it is facing presently related to
its human resources, technological resources, financial resources and various other resources of
the organization. A transformational leader is one who understands the needs of the employees
of the organization and therefore provides proper opportunities to them for their growth and the
leader understands that it is important to train the employees in a proper way to exploit the
technological resources of the organization and to reduce the unnecessary wastage of financial
resources (Noe et al. 2017). The concept of transformational leader is relevant and applicable in
case of Drax and its present scenario. A transformational leader will help the company in
providing proper guidance to the human resources and therefore overcome all the human
resources issues and will help in exploiting the technological resources of the organization
(Russell and Norvig 2016). By properly training the human resources, the company can help in
taking advantage of the technological opportunities available in the market and also help in
innovating new products and services by making use of internet of things. By providing proper
training the company can also help in overcoming the resistance by the employees and for this
the leader needs to explain the benefits to the employees about the technological changes. The
transformational leader can help in managing the financial resources properly by making use of
modern technologies and by properly training the employees to make use of such technologies.
The transformational leader is one who can not only change the climate of the organization but

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help in creating a new culture in the organization (Rosenbach 2018). The Burke Litwin model
helps in understanding the transformational leadership and their difference with the transactional
leadership. Transformational leadership can help in changing the culture of the organization and
create a culture of innovation and creativity.
Figure 1: Burke Litwin model
Source: (Stone 2015)
Conclusion
From the above discussion it can be concluded that Drax limited is presently facing many
issues related to its resources such as remote staff, there are many issues related to the
recruitment, selection, knowledge management, financial resources management and others. The
paper is aimed at critically analyzing all these issues and provides solution to the same. The

9LEADING, MANAGING ORAGBIZATIONAL RESOURCES
paper is also aimed at finding out the present leadership strategies of the company such as the
present leaders are incompetent to properly manage all the resources of the organization and the
paper also discusses about the leadership style that can help in improving the present conditions
of the company. The concept and theory of transformational leadership is applicable to the
present scenario of Drax to overcome all the problems.
Recommendation
Climate of innovation and creativity
The transformational leader can help in creating a climate of creativity and innovation by
empowering the people to carry out their activities on their own and communicating freely to
give any suggestions such that ideas can be generated from the employees of the organization
regarding various products and services (Antonakis and Day 2017). In this way, the employees
of the organization will become more adaptable and flexible and therefore will not resist any
change.
Integrate the two divisions and therefore change the culture of the organization
The leader can help in integrating the two divisions of Drax services and Drax technology
because both the divisions have different climate, the transformational leader can help in creating
a culture of organizational innovation and creativity by integrating the two divisions.

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Integrating leadership with the information technology to exploit the technological
advancements
Figure 2: integrating transformational leadership with Information technology
Source: (Kahai, Avolio and Sosik 2017)
A transformational leader is one who creates a vision of the organization with the help of
all the employees of the organization, shares the vision with the people of the organization and
helps them in achieving the same by empowering them and motivates to do the same through his
personal charisma, integrity and others (Chen and Hou 2016). By making application of this
framework the leaders of an organization can achieve the desired results of technological
investments.

11LEADING, MANAGING ORAGBIZATIONAL RESOURCES
References
Albrecht, S., Breidahl, E. and Marty, A., 2018. Organizational resources, organizational
engagement climate, and employee engagement. Career Development International, 23(1),
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Antonakis, J. and Day, D.V. eds., 2017. The nature of leadership. Sage publications.
Chen, A.S.Y. and Hou, Y.H., 2016. The effects of ethical leadership, voice behavior and climates
for innovation on creativity: A moderated mediation examination. The Leadership
Quarterly, 27(1), pp.1-13.
Donate, M.J. and de Pablo, J.D.S., 2015. The role of knowledge-oriented leadership in
knowledge management practices and innovation. Journal of Business Research, 68(2), pp.360-
370.
Dunne, T.C., Aaron, J.R., McDowell, W.C., Urban, D.J. and Geho, P.R., 2016. The impact of
leadership on small business innovativeness. Journal of Business Research, 69(11), pp.4876-
4881.
Jensen, M.B., Johnson, B., Lorenz, E., Lundvall, B.Å. and Lundvall, B.A., 2016. Forms of
knowledge and modes of innovation. The learning economy and the economics of hope, pp.155-
182.
Kahai, S.S., Avolio, B.J. and Sosik, J., 2017. E-leadership. The Wiley Blackwell handbook of the
psychology of the internet at work, pp.285-314.

12LEADING, MANAGING ORAGBIZATIONAL RESOURCES
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Rosenbach, W.E., 2018. Contemporary issues in leadership. Routledge.
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