Analyzing Change: Leadership Approaches and Organizational Impact

This report examines the impact of change on organizational strategy and operations, comparing examples like GE Capital and Saudi Telecom Company (STC). It evaluates the internal and external drivers of change, and their effects on leadership, team, and individual behaviors, suggesting measu...Read More

Understanding and leading changes in the contemporary times

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Contents
Introduction......................................................................................................................................2
LO1-Compare ways in which change impacts on an organization strategy and operations...........3
Comparison of different organizational examples with the impact of change............................4
LO2-Evaluate the influences that drivers of change have on organisational behaviour.................6
Internal & External Drivers of change and their effect on leadership, team and individual
behaviors......................................................................................................................................6
Measures to minimize negative impacts of change.....................................................................7
LO3-Determine how barriers to change influence leadership decision-making.............................8
Barriers for change and their influence on leadership decision-making......................................8
LO4-Apply a range of leadership approaches to a change initiative...............................................9
Range of leadership Approaches towards change initiative........................................................9
Different leadership Approaches to deal with change...............................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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Introduction
In any organization, it is important to proceed further with the understanding capabilities and
introduce the changes in order to grow and promote the business in the competitive world. This
has been a tendency in almost all the companies and organizations which started off as early as
the 1930s. It is these changes which were introduced from the side of the business leaders so that
their product is recognized and their visions and goals are materialized for the benefit of all those
individuals who were working for them and been well-wishers (Benn, S., Edwards, M. and
Williams, T., 2014).
However, in the contemporary times, the scenarios are changing from company to company or
organization to organization. These changes are due to the growth and promotion of the digital
technologies and the Big Data Technologies. With these in the markets, one is able to observe
the importance of the changes and how understanding is playing a big role from one company
and taking the place at the global levels. Thus, one may comment that “there are changes and
understanding both at the micro-levels and macro-levels”. One has to accept these changes in the
organization and welcome the new kind of activities taking place across all the domains
(Calabrese, 2012).
What are various models of leadership? What are the main theories of the change? Is it necessary
to adopt only one theory or concept or model?. What are main differences between these models
of leadership? How are these models helpful to recognize the changes in the organization? What
are the main characteristic features of these models and approaches of the leadership? Can one
measure the range of the models of the leadership and change? These will be the questions in the
background and one may observe the developments in the strategies and implementations of the
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new innovative products in the organization (Casadesus-Masanell& Ricart, 2010). Can one
redesign the models and approaches as per the needs of the contemporary times or not?
LO1-Compare ways in which change impacts on an organization strategy and operations
The main strategies of any organization are to use their employees in an appropriate manner to
get the best of the resources and to gain the profits at the end of the quarter or the year (Chang,
Dado, Hawker, Cluss, Buranosky, Slagel, & Scholle, 2010.). The best example may be observed
in the operational strategies introduced in the GE Capital. It is a multi-national company and
recognized in the top of the 500 Fortune companies. It has been involved in creating the
strategies for the growth of the company. These strategies allowed the management members to
roll out the changes in many ways and the senior staff members really worked upon the changes
(Harland, Lamming, & Cousins, 1999.). Some of the changes introduced are (Helfat, Finkelstein,
Mitchell, Peteraf, & Winter, 2009):
1. Transparent management
2. Boundary less environment
3. Working in flexible manner
4. On job trainings
5. Customer Centric Company
6. Working on the principles of the Lean
7. Giving importance to quality in each and every domain
8. Growth opportunities
9. Employee=Stakeholder.
10. Change is the philosophy of the company
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With these points at the background, the company envisions to introduce CHANGE is each of
the employees irrespective of the designation and sex and creed. This has created and caused a
big impact on the company (Deshpande & Webster, 2009). There is no saturation point for the
employees as changes are implemented and rolled out from time to time and in many ways. The
training programs are initiated for all levels and the organizational behavior is observed in the
staff and changes are perceived immediately in the personalities, attitude and thinking process.
This helps in bringing in the changes in the process of the levels of the understanding also (Kent,
2005). The newly hired individual knows the responsibility towards the company and showcases
on the shop floor.
The Operations team recognizes and maintains the integrity and spirit of the company. Thus,
there are simultaneous activities taking place one after the other. One is the change in itself
amongst the staff members and senior management individuals. Secondly, the levels of
understanding develop amongst the team members. Consequently, it may be concluded that there
is indeed the impact of the change towards the strategies and operations of the organization
(Kennerley & Neely, 2013).
Comparison of different organizational examples with the impact of change
It is better to cite the example of GE Capital as one of the organizational examples which works
on the principles of the Change. The philosophy was introduced into the company long time ago
and each and every individual working for the company adheres to it strictly. These changes
helped the company not only to grow in every aspect, however, to portray itself as a true
multinational corporate company. It envisaged in carving out the flexible working hours,
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introducing the third party activities, signing up of the agreements and mergers and acquisitions
with small and big companies, introducing the concept of the “business process outsourcing”,
opening new sister concern companies at new locations, etc.
Apart from this, the company designed and redesigned the business products as per the location
of the company. For example, the IT Sector was operating from India, the quality of the business
ventures was operating and functioning from China and BPOs were opened in the third tier and
small countries like Philippines for the operations of the calling industry, medicinal operations
from the Netherlands, etc. However, GE Capital did not restrict itself in the designing of the third
party ventures only. It also focused on the local companies also like GE Money. Through this,
there were two things being captured through single stroke viz. the capturing of the local markets
and launching of the bank products, personal loans, home loans or mortgage loans, sundry
collections, etc. Consequently, the company targeted both the global and local markets at many
locations with the strategy of the philosophy of change.
Similarly, one may observe the manner in which Saudi Telecom Company changed the entire
outlook of the company within the span of a few months. The company was on the verge of
shutting operations at Saudi Arabia. However, with the help of the third party company like
Accenture, it was able to revive the operations, redesigning and revamping the company from
every angle (Martins & Terblanche, 2009). First of all, they changed the website and prepared
the entire company to be automated so that the internal employees are able to contact and
remained in constant touch with the members of the senior management. With the help of the IT
team, the face of the website was changed and customers were much closer to the company and
demanded more products and services from the company (Johnson, 2002). This helped the STC
to introduce new products in the markets for the sake of their customers.
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LO2-Evaluate the influences that drivers of change have on organizational behavior
Internal & External Drivers of change and their effect on leadership, team and individual
behaviors
The introduction of the changes in the organization has an effect on each and every aspect of the
department and individual present in it. It is always recommended to adhere to change for
building the great future and this is possible through the changes (Pettigrew, Woodman &
Cameron, 2011). It is generally observed that there are two kinds of forces present in any
organization viz. the external and internal forces.
The best examples of the external forces are competition, introduction of new technology, facing
the new government and their policies, markets, foreign products, etc. They are said to be simple
by nature. However, these seem to be very difficult to handle on the daily basis. Uncertainty
always exists and products need to design as per the demands and needs of the markets.
On the other hand, the internal forces are easily manageable from the side of the organization.
The changes may be introduced very easily with the help of these forces. However, it is very
difficult to adopt and implement them in the organization. The reason being that changes needs
to be introduced in a slow manner rather than in haste way and repent later on for the failure or
the wastage of the money or the resource (McCuiston, Ross Wooldridge, & Pierce, 2004).
Consequently, it is best to select “PROACTIVE” individuals rather than the reactive ones. It is
always better to work upon the lines of the proactive spirit. This helps in maintaining and
running and smooth functioning of the company and team members. This also helps in spreading
the message of being qualitative
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Measures to minimize negative impacts of change
1. If it is the case that the members of the senior management are observed to be reliable and
trustworthy, then there is no negative impact of the organizational change.
2. However, it is observed that the scenario is very different one wherein there are organizational
changes which are not positive by nature for the employees.This is the case wherein there are
changes in the members of the board or senior management or new staff is recruited and old and
loyal staff members are asked to leave the organization.
3. Therefore, it is not the case that the members of the senior management are always reliable
and trustworthy.
Consequently, there seems to be a way out to minimize the negative impact. There are many
determinants to be observed in the reduction of the negative impact and they are experience,
number of years spent in the company, designations, education, age, etc. (Bamford & Forrester,
2003). However, there are few areas which are more important than the one mentioned in the last
sentence. These are (DiGeronimo, 2018):
1. Brand Value - One must focus on the self-branding attitude and create the impact on the
decision makers and influencers.
2. Future Relevance - It is always good to upgrade the skills through education, new project,
learning new technology, etc. This will always create an impression and clearing the new and
future goals and ambitions (Becker & Gerhart, 1996.).
3. Recommendations - It is always good to get recommendations of the individuals present in
your own circle. They will certainly help in backing up and supporting an individual when need
is really required in the society.
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LO3-Determine how barriers to change influence leadership decision-making
Barriers for the change and their influence on leadership decision-making
There is a need for the strategy to be drawn upon in order to be a successful organizational
change. The main barriers for the organization are the following ones:
a. Less understanding of the immediate change and its effect
b. Negative attitudes of the staff members
c. No transparency between the senior management members and employees
d. No involvement of the employees in the entire process of the change
e. Bad communication skills
f. No leadership qualities
g. Limited budget or lack of finances for new developments
h. No initiatives for introducing paradigm shifts in change
i. Absence of support for rolling out the changes
j. No commitments
k. Failures and bad results in the past
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LO4-Apply a range of leadership approaches to a change initiative
Range of leadership Approaches towards change initiative
The range of the various approaches and the changes incorporated through them may be
understood through the constructive dilemma for the major approaches models of change
management
1. If it is the case that one opts for the Lewin's Model, then it is the case that one must
follow the stages of unfreeze, change and refreeze; if it is the case one opts for
McKinsey's 7s Model, then it has the seven steps to be followed viz. strategy, structure,
systems, shared values, style, staff and skill; if it is the case that Kotter's model is
adopted, then it is the case that one has to lean on increased urgency, building the team,
opt for the correct vision, communicate properly, flow of things, focusing on short term
goals, not giving up and develop the habit of changing from time to time; if there is
support for the Nudge theory, then it is the case that there is reduction and removal of
negativities and introduction of the changes with the positive attitudes; if it is the case
that there is support for ADKAR Model, then it is the case that there are goal oriented
change activities and results are always positive; if it is the case that there is Bridge’s
Model, then it is the presence of the "managing transitions" which brings in changes with
three main stages viz. end, lose and let it go; be in the neutral zone and proceed further
with the new beginning and without any kind of regrets in life; and if it is the case that
there is Kubler-Ross Five Stage model, then it is the case that changes are introduced
through the process of denial, anger, bargaining, depression and acceptance and if it is the
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Satir Model, then it is the case that one follows the late status quo, resistance, chaos,
integration and a new status quo (Andriopoulos & Lewis, 2009).
2. Either it is the case that one opts for the Lewin's Model or it is the case one opts for
McKinsey's 7s Model or it is the case that the Kotter's model is adopted or there is
support for the Nudge theory or if it is the case that there is support for ADKAR Model
or it is the case that there is Bridge’s Model or it is the case that there is Kubler-Ross Five
Stage Model or it is the Satir Model.
3. Therefore, then it is the case that one must follow the stages of unfreeze, change and
refreeze or it has the seven steps to be followed viz. strategy, structure, systems, shared
values, style, staff and skill; or it is the case that one has to lean on increased urgency,
building the team, opt for the correct vision, communicate properly, flow of things,
focusing on short term goals, not giving up and develop the habit of changing from time
to time or it is the case that there is reduction and removal of negativities and introduction
of the changes with the positive attitudes or then it is the case that there are goal oriented
change activities and results are always positive or it is the presence of the "managing
transitions" which brings in changes with three main stages viz. end, lose and let it go; be
in neutral zone and proceed further with the new beginning and without any kind of
regrets in life or it is the case that changes are introduced through the process of denial,
anger, bargaining, depression and acceptance or it is the case that one follows the late
status quo, resistance, chaos, integration and new status quo.
The way out from this Dilemma will be to select either one or two or multiple models and adhere
to their consequences in the organization (Andriopoulos & Lewis, 2009).
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Different leadership Approaches to deal with change
The major and most popular change management models and theories are:
1. The Action Model as given in Collier, 1945; Lewin, 1946; French, 1969; Schein, 1980
2. Lewin's 3-Step Model as given in Lewin,1945; Lewin,1951.
3. Schein's Extension of Lewin's Model given in Schein, 1980
4. The Lippit, Watson and Westley model of planned change which expanded Lewin’s Three-
Step Model to a Five-Phase Model (Lippit, Watson, and Westley 1958)
5. Kotter’s Strategic Eight-Step Model (Kotter 1996)
6. Mento, Jones and Dirmdofer’s Twelve-Step Model (Mento Jones and Dirmdofer’s 2002)
7. Jick’s Ten-Step Model (Jick 2003; Jick 2001)
8. Shield’s five-step model (Schield 1999)
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Conclusion
In the end, it may be concluded that the proper understanding and changes in the organization
may be done through certain processes and steps. There are certain theories and concepts
provided in the organizational behavior and these must be supported in some form or the other.
One may adhere and support single approach or theory or combine two or more concepts or
models or theories to see the changes taking place in the organization and business. This is not
restricted to the business or the product only, it is extended to the staff members and the leaders
also. It is not an easier process, nevertheless with time and experience, the changes may be
perceived and involve each and every individual who is the part of the organization.
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