LEADERSHIP AND CHANGE MANAGEMENT
Change management is vital in organizations, and therefore entities should take the initiative of identifying the strategies that should be embraced in the change management process. However, in some instances, change initiators are faced with a myriad of challenges since they have to deal with the resistance to change by some of the stakeholders of the firm. The case study of Pemancar is one of the scenarios that can be used to explore the aspect of change and the significance of deploying the use of appropriate strategies in addressing the concept of evolution. Pemancar’s case study expounds on the inception of new organizational culture in a company that was absorbed by a European multinational corporation. The primary rationale for the establishment of a new organizational culture was to help in enhancing high performance, accountability and better communication in the organization.
Nonetheless, the process of change in the entity was faced with a myriad of challenges since the employees were submerged in the older culture, and they found it challenging to embrace the change. To understand the concept of change as explored in the particular case study, it is imperative to analyze the diagnostic models for change and ascertain the model that can be used in explaining the scenario. As well, the exploration of the interventions that can be deployed in a particular case study would help in shedding light on how entities should respond to change. Moreover, the evaluation of the anticipated resistances should improve in coming up with the recommendations that would help in curtailing resistance to change in the organization.
Critical Evaluation of the Diagnostic Models
Diagnostic models are essential since they help in the identification of the problems that face an organization and the rectifications that should be undertaken to mitigate the challenges. In the change process of an organization, it is vital to carry out the diagnosis of the entity to ascertain the needed change and the anticipated outcomes for the change (Hayes 2018). Moreover, the determination of the useful diagnostic model that applies to a given organization is essential. Models for diagnosing an organization can help in figuring out the root causes of the challenge that face an entity and provide suggestions for curtailing the problems (Hayes 2018). Among the two models that are embraced in diagnosing change include; the Kotter’s integrative model and the Weisberg’s six box model.
According to Kotter’s integrative model of diagnosing an organization, it is imperative to consider the external environment of the entity by evaluating the pressure that emerges from the low-cost entrants (Kotter 1980). Moreover, the determination of the demographic change and the political pressure on the entity is vital when diagnosing an organization. After the identification of the external environmental factors, the model requires that the management of the organization should ascertain the organization processes that should be improved to deal with the pressures from the external environment. Among the organizational process that are evaluated when diagnosing an organization by using the Kotter’s integrative model include; the communication of the suppliers with the staff individuals, the directions and initiatives of the company, the quality of the products offered by the entity and the strategies deployed by an entity in maintaining the relationships between logistics clients of the organization (Kotter 1980).
In the deployment of Kotter’s Integrative Model of Organizational Dynamics, it is vital to evaluate the aspect of alignment in the organization and the factors that influence the performance of the organization in both the short term and long term duration (Kotter 1980). In the short term period, the effectiveness of the organization is determined by the presence of processes that help in the effective use of resources. As well, the model presumes that a capable entity during the short term period should be characterized by the decision making processes that ensure the effective and appropriate use of resources. For the medium-term duration, the success or effectiveness of the entity is ascertained by the alignment of the structural elements of the organization. For long term duration, the efficacy of the firm is determined by the potential of the entity to adapt to both internal and external alignment for the long term period. The assessment or diagnosis of the entity through the utilization of the Kotter’s Integrative Model requires that the evaluator should explore on the tangible assets in the organization and the type of employees who work in the particular entity (Kotter 1980). As well, it is patent to assess the formal organizational arrangements of the entity by evaluating the operating and structure systems of the entity. The fifth aspect that should be considered in the evaluation or diagnosis of the organization through the use of Kotter’s integration model is the social system and structure of the organization. A critical examination of the social and cultural structures of the entity would help in determining the extent to which the organization aligns both its culture and its activities.
In the evaluation of the organization through the embracement of the Weisbord’s Six Box Model, it is crucial to ascertain the essential mechanism and determine how they are used in the organization. According to the model, it is crucial to emphasize on one output and verify the extent to which the customers are satisfied with the given output. If the customers are not satisfied with the given output, it is crucial to consider the reasons for the dissatisfaction
The Weisbord’s six box model is a diagnostic model which was developed to help in evaluating the issues of an organization and ascertain the strategies that should be implemented to improve the entity to stay competitive in the market. Marvin Weisboard incepted the model for the sole purpose of helping companies to evaluate and assess the functionality of their organization (Weisbord 1976). One of the merits associated with the deployment of the Weisboard’s 6 models is that the framework can easily be adapted to any kind of business activity. The model can be understood by critically evaluating the elements of the structure (Weisbord 1976). The initial concept of the Weisbord’s six box model entails the identification of the purpose of the business and the strategic objectives of the company. In the evaluation of the entity, Marvin Weisboard presumes that an in-depth understanding of the type of business and the arena in which the business competes would help in coming up with sound strategies for, maximizing the competitive advantages of a company. The next step as postulated in the Weisbord’s six box model is to assess the structure of the entity by determining how the organization operates (Weisbord 1976). The evaluation of the structure of the organization is vital since it provides insights into the potential of the in terms of production and the costs of production (Waterman, Peters & Phillips 1980).The analysis of the structure of the company would aid in the ascertaining of the responsibilities of each of the stakeholders of the organization and their contribution to the performance of the organization. The third step in the diagnosis of an organization by utilizing the Weisboard’s six box model is to ascertain the relationships that are prevalent in a particular company. Ideally, a company is linked with people, and it should take the initiative of managing the relationships (Weisbord 1976). As well, an organization is required to maintain its relationship between technologies and people to attain optimal results. If there are conflicts between people and machines, the management of the entity should take the initiative of determining the strategies for mitigating the conflicts (Waterman, Peters & Phillips 1980).
The model requires that the management should identify a concise and clear plan to help in addressing the conflicts. In the framework, Marvin explains that an organization should be diagnosed or evaluated based on the rewarding system that it uses to reward its employees. The establishment of a good reward structure in the entity can help in developing a positive culture that operates from the top to the bottom of a firm (Weisbord 1976). The aspect of leadership is another essential element when it comes to the diagnosis of an entity by embracing the Weisbord’s six box model. The primary rationale for evaluating the direction of the firm is that strong leadership brings about a sense of purpose and confidence. Besides, the model emphasizes the evaluation of the prevalence of essential mechanisms in the entity. The presence of technologies and other facets that help the organization to perform its roles is crucial to the success of the organization (Weisbord 1976). Nonetheless, it is important to denote that the mechanisms are subject to change, and the entity needs to be updated on the current changes.
Table 1: Strengths and Weaknesses of each of the two Models
The Weisboard’s 6 box model .
The model takes into consideration both the external and internal environment. The interrelation of the boxes may simplify the relationships between the internal factors.
The model groups the internal factors into reasonable and distinct groups.
The model is simple in nature and it is easy to implement the strategic resolution due to time pressure. The model cannot be embraced in carrying out a complicated diagnosis due to its simplicity.
Kotter’s Integrative Model
The model highlights the effective aspects of the organization in the long term, short term and medium duration. The elements of evaluating the effectiveness of the organization differ with time.
The model that can be used in the evaluation or diagnosis of the Pemancar organization is the Weisboard’s six box model. The primary rationale for using Weisboard’s six box model in evaluating Pemancar is that the model considers both the external, internal environmental factors. A close examination of the case study of Pemancar demonstrates that the organization shows that the entity has an articulated mission which expounds on the purpose of the entity. From the case study, it is evident that the mission of Pemancar organization is to emerge as the famous producer of automobile products in the region and in other parts of the world (Abdullah & Siti-Nabiha, 2012).The organization anticipates achieving its mission by offering high-quality products that satisfy the needs and demands of the customers. Pemancar has an in-depth belief that each individual of the entity should contribute to the excellence of the organization (Abdullah & Siti-Nabiha, 2012). As well, the firm has incepted corporate values and philosophies that guide employees and all stakeholders in performing various activities in the organization. Under NOVA, the entity aims at creating value in their daily operations.
A close evaluation of the structure of Pemancar entity demonstrates that when the entity was under the governance of KLCorp, it was headed by the plant manager who was tasked with the responsibility of overseeing all the operations of the firm. The numbers of employees in Pemancar entity are approximately 1700 with 130 of the workers occupying the supervisory role. The middle and the managerial level of the firm consist of 100 employees. The clerical level also consists of 100 workers (Abdullah & Siti-Nabiha, 2012).The operative level of the entity is occupied by 1,370 employees. In the new management, NOVA requires that each individual should be responsible and that the duties can be delegated downwards. The employees are required to be accountable for their activities and performance. The plant operations at Pemancar are run by a new management team which comprises of outsiders, experts from Nova and the old management team (Abdullah & Siti-Nabiha, 2012). The current structure of Pemancar is a flatter and leaner structure, and it is aimed at promoting a sufficient flow of communication within the organization. Pemancar does not handle the sale function since it is carried out by a separate marketing company.
The critical assessment of the aspect of relationships in the entity depicts that under the new management (NOVA) shows that the firm effectively manages conflicts with its technologies by replacing the older technologies with the current and up to date technologies. NOVA worked to ensure the use of new production technologies and machines to ensure high productivity level at reduced costs. Nonetheless, the way in which Pemancar manages conflicts between people under NOVA raises concerns. From the provided information, it is clear that NOVA works by retrenching the underperforming employees of Pemancar (Abdullah & Siti-Nabiha, 2012).The retrenchment of underperforming workers is one of the drawbacks regarding the management of conflicts by the entity. Besides, it is heeded that an employee who fails to perform in one plant is transferred to another plant.
The evaluation of the reward system used in an entity is crucial since it gives a reflection of the extent to which the organization values its employees. Besides, it can help to deduce how extrinsic motivation is achieved in the entity (Bel, Smirnov & Wait 2018). A critical review of the rewards offered to Pemancar employees by using the identified model shows that employees experience operational problems which negatively affect their performance-related incentives. When Pemancar is assessed in terms of its leadership, it is noted that the top management such as the senior operators perform supervisory roles especially when the employees of the organization have failed to perform in accordance to the anticipated standards (Abdullah & Siti-Nabiha, 2012).
Regarding the helpful mechanisms that are prevalent in the Pemancar entity, it is heeded that under NOVA, the organization embraces the use of non-financial indicators to ascertain the level of performance of the organization. A close evaluation of the cost control systems deployed by the entity depicts that the organization controls its costs by reducing both the scrap levels the time costs. As well, the management of the entity embraces the use of performance evaluations to determine the extent to which the bottom line employees have improved. A critical examination of the operations of Pemancar depicts that the entity monitors both operations and performance of the organization by requiring the various departments to submit their monthly reports for evaluation (Abdullah & Siti-Nabiha, 2012). Moreover, the organization has incepted a strict cost control whereby every figure is evaluated and compared against the previous figures. As well, the entity utilizes a standard volume to determine whether it has attained the expected volume of production.
Through the use of the Weisboard’s 6 box model in evaluating Pemancar, it is evident that the organization needs to improve on the way in which it manages its conflicts mainly when the employees have not performed in accordance to the expected standards. As well, the entity should enhance its relationships with the new technologies, particularly when the bottom level employees use the new machines. Moreover, the organization should improve the ways in which it manages the stress of the employees in the organization. Notably, employees in Pemancar are not assured of the security following the previous retrenchments. As such, the entity should come up with a mechanism of dealing with such a scenario in the
A close evaluation of Pemancar’s case study demonstrates that the entity had already incepted the changes and the employees were not satisfied with some of the changes due to fear of being retrenched if they do not meet the expected standards of performance. Among the suggested interventions for the ascertained issues include; human resource issues, technological processes and human processes issues. The three identified interventions can be analyzed from the viewpoint of the 3D Intervention model.
From the evaluation of the current situation in Pemancar, it is clear that Nova retrenches its employees whenever they fail to attain the expected standards. I presume that such an initiative is not useful or appropriate for Nova and therefore, Nova should ascertain the best approaches for dealing with non-performing employees. Nova should come up with the strategies that would help the entity to enhance employees’ careers, manage performance and attract competent employees in the entity. One of the strategies that Pemancar can deploy to manage the performance of the employees under the current leadership is to perform a regular evaluation of the skills and knowledge of the employees.
The review of the capabilities of the employees would help in determining the learning demands of the employees and identify the gaps that should be filled. Such an initiative would help the organization to incept a training program that considers the learning needs and demands of the employees in the organization (Sartori, Costantini, and Ceschi & Tommasi 2018). The customization of the training plans is also needed for the entity to ascertain the learning style of each employee an ultimately design a training program which is effective for each of the employees (Parsells 2013).Ideally, employees in the organization have different weaknesses and strengths, and therefore they need different learning styles. The entity should take the initiative of recognizing and rewarding its employees. As well, it is essential to discuss with the personnel to ascertain their difficulties, challenges and offer feedback to the top management (Bel, Smirnov & Wait 2018).
Regarding the technological issues that are prevalent in the Pemancar entity, it is imperative for the leaders of the entity to ensure that they communicate the changes in technology and the use of new machines to the employees. The organization should invest time in training its employees on how to make use of the latest technologies in the most effective way. The current leadership of the entity should come up with strategies for coordinating its departments, designing labor and structuring the techniques for incepting its products and services.
The introduction of new product recipes, new product specification and the embracement of new technology and machines by Nova in Pemancar intensified the challenges of the employees in the workplace since they were not fully accustomed to the deployment of new processes (Abdullah & Siti-Nabiha, 2012). Ideally, it is the responsibility of the change initiators to help employees adapt to the implementation of new technologies (Sartori et al 2018). Nova should develop a collaborative culture in which it shares its ideologies with all the employees of the entity. The change initiators should evaluate the latest technology from the basic level and identify the anticipated change due to the inception of the new technology. Instead of assigning supervisory roles to individuals who are acquainted with the embracement of the latest technology only, it is essential for Pemancar to consider the inception of a modern approach in providing training to employees. The presence of the support system to help in addressing transition difficulties would help employees to embrace the use of new technology effectively (Higgerson 2016).
From the diagnosis of the entity by the particular model, Pemancar faces communication challenges and decision-making problems. Employees in the organization are pressured with deadlines and set targets. However, workers are not free to present their issues to the management. Instead, they think of being retrenched any time; thus, they work under stress. Pemancar should streamline its ways of communicating with the employees to ascertain their challenges and ensure that the problems are addressed. Nova should also embrace the use of an effective decision-making process when making essential resolutions in the entity. As noted earlier, the marketing function of Pemancar is performed by a separate company due to the non-performance of the marketers of Pemancar (Abdullah & Siti-Nabiha,2012).The mentioned act by the entity is not appropriate since it will limit the chance of other employees to learn the sales and marketing skills. Before making any resolution, it is imperative for Pemancar to consider the outcomes associated with a particular decision.
Anticipated Resistance and Recommendations
People can demonstrate less commitment towards change, especially when they experience adverse effects in the previous changes. When employees feel that the change does not favor them, they tend to resist change (Gill 2002).People might fail to respond to change due to self-interest, lack of trust and misunderstanding, different evaluations and low tolerance to improve (Hayes 2018). One of the expected resistances in the entity is that Nova might resist the suggestion of continually motivating non –performing employees and subjecting them to training which will equip them with the required skills for delivering the assigned roles in the organization. As well, employees might refuse to attend the incepted training programs to help them in gaining knowledge on how to use new technology.
Employees may decline to participate in the training due to self-interests or their lack of tolerance to change. Besides, stakeholders of the organization may resist developing training programs for equipping employees with skills and expertise of using new machine due to high costs associated with the implementation of the new training programs. Moreover, the entity may still offer supervisory roles to the top management since it may presume that employees may not perform as expected. Besides, the entity might consider it a waste of resources and time since providing employees with the chance to improve might take an extended period.
Ideally, it is essential to come up with the initiatives of responding to resistance an ensuring that all the stakeholders of the entity react positively to change. One of the strategies that should be deployed to curtail the resistance to change is to offer support to the individuals affected by the change. The initiative is crucial since it would help in winning the support of individuals who fear the consequences of embracing change (Hayes 2018). Moreover, encouraging participation and involvement of all stakeholders affected by the change would trigger individuals to respond positively to change. A shared perception of the demand for change can enhance the motivation for change. It is imperative for Danial to ensure that the attitude to change is shared among all stakeholders or the affected individuals. The application of Kotter’s model of change is vital since it will help in creating the urgency for the ascertained interventions (Griffith 2001).
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