Leadership And Employee Resistance At Mno Company

Part 1: Resistance to Change in MNO Company

Ashley is the CEO of MNO Company, an organization he has been working for the last two decades. Although he is not the owner, Ashley has been the CEO for twelve years. He has worked in different departments with numerous people, some of whom left the company through retirement and change of job. Ashley is a good problem solver, communicator, and command employee respect, some characteristics that make him a good leader. As a manager, Ashley is result-oriented and works with established procedures and rules; it makes him fit for the CEO position.

Over the last ten years, the company board of management adopted new changes in the departments, which in turn create changes in the organization — there was a change of familiar rules as well as norms that Ashley was used to. Among the changes in the departments include the hiring of younger employees, adoption of new filing and management information system, and job reorganization. Similarly, there are new performance appraisals, on-job training to increase employee knowledge, skills and competencies as well as a retrenchment of excess employees aimed at balancing the high wage bill in the firm. The changes have brought disadvantages and advantages to the company in equal measure.

Ashley wishes to make some changes in the organization which collaborate organizational strengths with employees’ competencies. He wishes to reorganize the employees into new groups based on individual competencies. Ashley aims to balance the department’s workforce, so there are equal growth and contribution from the departments. The employees have developed their own niches in the company and with their diverse cultural and demographics background; they oppose Ashley changes and improvements. Some employees believe that the changes might derail their promotion and career development, while others feel the changes are inappropriate to the firm’s strategic direction.

The young employees believe the reorganization is outdated as it does not include employees’ views in decision making. Employees propose a more elaborate strategic decision that operates within recent and trending strategic thinking practices. The staff believes trending strategic thinking will keep the company at par with competitors and accomplish the firm’s objectives, mission and vision.

However, Ashley views employees’ suggestions as an attack against his goodwill and experience in addition to resistance to change. He feels that every decision made is faced with a curveball of suggestions from the staff who aim to demean his leadership and pursuit of change. Ashley understands he can do better to bring employees on board in his decision making hence becoming a democratic leader with dynamic views.

Questions

• What kind of leadership and management style does Ashley portray? Is it suitable to influence organizational change in MNO Company?
• What roles does a manager have in influencing organizational change? Does Ashley showcase any of the roles?
• Which management change theories best suit the case study and in what ways can it establish suitable changes?
• Did the employees or Ashley respond well to change directed towards the firm?

Part 2: Discussion

In an ever-changing business world, an organization has to make modification in its operations to keep up with increasing competition and customers’ expectation. The organizational change relates to a process where an organization changes some operational procedures, organizational culture or structure, technologies as well as the effects associated with these changes (Jones, 2013). Organizational change involves concepts like developing strategies, adjusting and modifying operation based on such strategies (Al-Haddad & Kotnour, 2015). In the end, a company advances to become innovative and adapt to the changes.

Organizational change gets influenced by the leadership and management style that the administration adopts. Notably, there are numerous leadership and management styles which include autocratic, democratic, laissez-faire, management by walking about, transformational and transactional leadership (Boykins et al., 2013). Each management and leadership style comes with advantages and disadvantages. Based on the case study, Ashley adopts an autocratic leadership and management approach. In autocratic management and leadership, management controls everything (Kocher, Pogrebna, & Sutter, 2013). Ashley feels the employees do not regard his leadership and management style. He believes his decision is final. In this approach, there is disregard of employees’ view where the company’s objective is meeting targets by any means. An autocratic approach is not suitable for MNO Company. Research indicates that involving employees in decision making improve their performance hence increased company’s profitability and growth (Dobre, 2013). Applying the approach causes the resistance to change, as seen in the case study.

A democratic leadership style is suitable to influence successful organizational change. It involves the leader or manager listening to employees’ views but making the right decision based on company policies and employees’ well-being (Boykins et al., 2013). A manager gets involved in the day-to-day running of a business with an understanding and involvement of subordinate employees. Similarly, transformational leadership that ensures leaders share a vision with the team can influence successful organizational change (McCleskey, 2014). It inspires the staff to make the necessary effort and work effectively and efficiently towards shared goals. Furthermore, laissez-faire leadership and management can also work in MNO Company. However, the style requires experience team members as there are less supervision and monitoring; employees make individual decisions.

The organizational change follows a well-defined approach and models to realize the benefit associated with the change. Notably, there are numerous models to change management, as discussed below. The Lewin’s change management model proposes three primary stages of change, namely, unfreeze, change and then refreeze (Cummings, Bridgman, & Brown, 2016). According to Lewin, the unfreeze stage prepares the expected change by breaking the status quo. An organization looks at its operations and identifies issues it wishes to change. Change stage involves the real transitioning where individual embraces changes and development. In this stage, good leadership and communication are fundamental as they steer the organization in the right direction; the elements are a critical ingredient to success (Cummings, Bridgman, & Brown, 2016). The refreeze stage involves a situation when changes have been accepted, implemented and embraced, and the situation is stable. Employees and management get comfortable and confident with the acquired changes and aligns their efforts with implemented change (Cummings, Bridgman, & Brown, 2016).

McKinsey proposed a 7S model used in impacting management change. According to McKinsey, a strategy is necessary as it offers a plan for implementing the change (Ravanfar, 2015). It gives a step-by-step procedure. The structure stage relates to the ways the organization gets divided. The division is necessary to allocate change start-point. The system stage showcases how day to day operation will be carried out in the firm (Ravanfar, 2015). It presents where the change will start and how it will be performed. A firm inspiring to make a change must have shared values. They are the foundation for which the company runs. The style stage describes the manner changes and leadership get adopted or implemented (Ravanfar, 2015). It is necessary to conduct a suitable style as implementing change has numerous challenges. McKinsey also recognizes the importance of staff (Ravanfar, 2015). Employees’ attitude and working capabilities get affected by changes as seen in the case study where staff reprises against the modification. Lastly, McKinsey suggests that for change to be successful, management should understand employees’ skills and competencies (Ravanfar, 2015). Overall, the McKinsey model proposes a directional factor to change management.

Kotter’s change management theory proposes an 8-stages model to change focusing on key principle associated with people’s response to change (Pollack, & Pollack, 2015). First, Kotter proposes creating urgency among people (Pollack, & Pollack, 2015). It creates some motivation that gets things moving. Second, a manager must have a team that agrees with the need for change (Pollack, & Pollack, 2015). Managers should convince people about the benefit of change by creating a coalition with influential individuals within the firm. People in the team should hold a variety of competencies. Third, there is a need to create a clear and correct vision (Pollack, & Pollack, 2015). It involves taking into account strategies, creativity, objectives and emotional connection with followers/staff. Fourth, after creating a vision, it is necessary to communicate with the followers. The vision should be communicated frequently. The leaders should ‘walk the talk’ by becoming an example of the communicated vision.

Fifth, success in change management requires an individual to get things moving. It includes removing any obstacles and roadblocks (Pollack, & Pollack, 2015). It helps in implementing the needed change. Sixth, motivating the employees is vital in achieving change through simple and short wins. Creating short-term goals eliminate unnecessary pressures and reduce rooms for failure. Seventh, never giving up by building on the change helps achieve long-term goals. Each short-term wins builds an opportunity and foundation to achieve long-term change. Lastly, management should incorporate the change into the company’s culture (Pollack, & Pollack, 2015). The change should be visible in every operation within the firms with continuous effort to improve the change.

Other change management approach includes the ADKAR Model, a goal-oriented model. The approach proposes a sequential achievement of goals so as changes to occur. It is useful in identifying gaps in the change management process. The Nudge theory bases its argument to change on encouraging and inspiring others to change. It focuses on choices responsible for directing changes. The Bridges’ transitional theory is another notable approach. Although the theory focuses on transition than change, transitioning happens when individuals are undergoing change.

Leaders play a crucial role in change management. In the case, Ashley, as the CEO, has the responsibility of making a decision. Managers and leaders control the resources, equipment and initiate change. The ability to accept or reject a proposal or action put them into an important part in influencing change. Leaders and managers prioritize the options available based on individual assessment and firms’ strategic objectives. Managers and leaders act as sponsors or advocates for change. Notably, managers initiate change by championing the modifications (Cameron & Green, 2019). They provide funds and directive of achieving a proposed change.

Leaders and manager inspire change by acting as the role models. They should ‘walk the talk’ that others may follow. Employees watch their managers and leaders evaluate their consistency with proposed changes. If they believe the leaders do not hold up to the changes, the staff becomes reluctant. Therefore, leaders should be aware of their influence to change management. Communication is another crucial role a manager plays in change management (Simoes & Esposito, 2014). Notably, leaders and managers are the voice of change. They share information, procedures, and updates followers on the way forward. They interpret the message to staff that follows the direction set in change management.

Managers and leaders face ethical challenges when undertaking organizational change. Ethical dilemmas are common in management and leadership decision-making. For example, a firm may decide to venture into a business that releases dangerous effluent into the atmosphere. Although it is a profitable business, the firm must consider ethical standards of minding the community around them. In the case study, MNO Company had ethical considerations to make when retrenching some employees to maintain a manageable wage bill. The ethical theory of utilitarianism suggests that decision should provide the highest benefit to the majority (Frey, 2013). However, the firm had to lay off employees who might not concur with the ethical theory. Organizational change test firms’ ethical awareness, as there are some factors that oppose ethical concepts.

Leaders and manager undertake necessary decision aimed at improving an organization’s operations and profitability. Sometimes, some of the decisions are unsuccessful. In organizational change, employees get affected by leaders’ and managers’ actions. Some followers respond to a manager’s decision by opposing the change. As indicated in the case study, MNO Company’s employees did not agree to Ashley change management strategies. Some believe that the decision is not congruent in trending strategic thinking. Employees’ refusal to conform to management changes is a suitable response if the change follows occupational ethics and market standards. Leaders must evaluate decisions made more so those that affect employees. Poor decision making can lead to high employee turnover hence losing experience and competent employees to competitors (Al Mamun & Hasan, 2017). Leaders and managers should undertake democratic and consultative management style, which incorporates staffs’ feedback in management actions.

A manager can implement change using different strategies. First, they can propose incentives. Under this strategy, employee recognition and reward system can help implement change. Leaders appreciate employees’ effort by recognizing them in public. Second, redefining organizational cultural values helps staff fit in the new norms. A firm culture that recognizes continuous improvement initiates and enhances employees’ attitude towards change (Hrebiniak, 2013). Third, if the need for change is urgent, exercising authority can help implement change. Managers exert authority hence reduces employee opposition. The change is quickly and efficiently implemented. Lastly, if employees show adverse resistance, recruiting change champions can work. Frontline employees may be the champions of change by describing the benefit associated with the proposed changes. They collect feedback and disseminate information that persuades others to change. An outcome evaluation strategy that evaluates the long-term effect of the change is significant in measuring change benefits. It measures whether there is the achievement of the main goal of a decision based on predetermined results.

Take a deeper dive into Judicial Review with our additional resources.

References

• Al Mamun, C. A., & Hasan, M. N. (2017). Factors affecting employee turnover and sound retention strategies in business organization: a conceptual view. Problems and Perspectives in Management, (15, Iss. 1), 63-71.
• Al-Haddad, S., & Kotnour, T. (2015). Integrating the organizational change literature: a model for successful change. Journal of organizational change management.
• Boykins, C., Campbell, S., Moore, M., & Nayyar, S. (2013). An empirical study of leadership styles. Journal of Economic Development, Management, IT, Finance, and Marketing, 5(2), 1.
• Cameron, E., & Green, M. (2019). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
• Cummings, S., Bridgman, T., & Brown, K. G. (2016). Unfreezing change as three steps: Rethinking Kurt Lewin’s legacy for change management. Human relations, 69(1), 33-60.
• Frey, R. G. (2013). Act‐utilitarianism. The Blackwell guide to ethical theory, 219-237.
• Hrebiniak, L. G. (2013). Making strategy work: Leading effective execution and change. FT Press.
• Jones, G. R. (2013). Organizational theory, design, and change. Upper Saddle River, NJ: Pearson.
• Kocher, M. G., Pogrebna, G., & Sutter, M. (2013). Other-regarding preferences and management styles. Journal of Economic Behavior & Organization, 88, 109-132.
• McCleskey, J. A. (2014). Situational, transformational, and transactional leadership and leadership development. Journal of Business Studies Quarterly, 5(4), 117.
• Pollack, J., & Pollack, R. (2015). Using Kotter’s eight stage process to manage an organisational change program: Presentation and practice. Systemic Practice and Action Research, 28(1), 51-66.
• Ravanfar, M. M. (2015). Analyzing Organizational Structure based on 7s model of McKinsey. Global Journal of Management And Business Research.
• Simoes, P. M. M., & Esposito, M. (2014). Improving change management: How communication nature influences resistance to change. Journal of Management Development.