Role of Management and Leadership Theories to Bring Change in Business

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ROLE OF MANAGEMENT AND LEADERSHIP THEORIES TO BRING CHANGE IN BUSINESS

Table of Contents

Purpose of Report

INTRODUCTION

Change Management Theories and Leadership Theories

Change Management Theories

Lewin change model

Kotter’s Change Management Theory

Kubler Ross grief cycle

The Prosci ADKAR model

Leadership Theories

Nudge Theory

Trait Theory

Behaviour Theory

Great Man Theory

References

 

Purpose of Report

The main aim is to justify the role of management theories and leadership theories in a particular business to improve its efficiency or we can say to reduce or minimise the concerns and make sure business runs smoothly. The four theories of management and leadership explained will be used in car customising business namely “HQ ARTS”.The main gist of report is about HQ ARTS NZ which is an Auto Customisation shop based in Manukau, at 149 Great South Road, Manurewa, Auckland, New Zealand. It’s owned and operated by Director Sukhdeep Singh Maan (HQ ARTS NZ, 2018). The company was established in 2015 and is classified as “Motor accessory shop operation”.HQ ARTS NZ provides affordable and high quality auto customisation services for all types of cars. Auto customisation services include Led Lighting, Sound and Security system, Window Tints and car wraps. Moreover the company also deals with home and office tints. HQ ARTS NZ focuses on specifications given by the buyer to built a car or we can say that HQ arts modify cars according to need, wants and demands of the customers. HQ ARTS NZ maintains a loyal customer base through customer oriented focus on business (Bizdb.co.nz, 2018).

INTRODUCTION

This report aims at analyzing the change management and leadership theories and all the tools and techniques associated with these theories. The change management theories and leadership theories plays a key role in the overall success of the organization as it provides the organization with efficiency in its operations. The HQ ARTS NZ is a New Zealand based firm which provides their customers with an automobile customization services to make it look better. The efficient change management plan provides the firm with a huge efficiency in its operations. And the leadership theories play a significant role in the efficiency of the change management plan.

Change management is the process in which the tools and techniques to manage the people side of change to achieve a required business outcome. When the business is not stable then the higher authorities brings in the change to prolong the efficiency of business.

Leadership means the person in charge of team in an organisation who is able to guide and influence the behaviour and work of others. Leadership is the potential to influence. It is also defined as the capacity to influence a group towards the realization of a goal. Leaders are required to develop future visions, and to motivate the team to achieve the visions.

Leadership theories play a significant role in maintaining efficiency in the organization as it provides the firm with:

  • Motivation
  • Providing guidance
  • Creating confidence
  • Building moral
  • Builds work environment
  • Co-ordination
  • Initiates action

The successful leader is the person who has all of the above qualities in it. Leadership plays a very critical role for the success of business(MSG, 2018).

This report is about   the change management theories and leadership theories for the success of organisation. The business in which these theories will be implemented is HQ Arts.

Change Management Theories and Leadership Theories

The theories of change management and leadership which will be discussed and implemented arelisted below as follows:-

  • Kurt Lewin Change Theory
  • Kotter’s Change Management Theory
  • Kubler Ross grief cycle
  • The Prosci ADKAR model

 

And some of the Leadership theories are listed below as follows:

  • Nudge Theory
  • Trait Theory
  • Behavior Theory
  • Great Man Theory

Change Management Theories

The change management theory of Kurt Lewin is called change theory or three phase model. This theory is based on 3-step process (Unfreeze-Change-Freeze) that provides a high-level of effort to change. It gives a manager of a particular company a framework to implement a change effort, which is always very sensitive and must be as easy as possible (Morrison M. , 2014).  By using this theory the leader or higher authority of certain organisation can do following changes –

  • Make any change
  • Reduce  the disruption of the operational structure
  • Make sure that the change is adopted and implemented permanently

The 3 phases of the Kurt Lewin model give us guidance on how to make people to change: a manager will implement new processes and re-assign tasks, but change will only be effective if the people involved accept it and help putting it into practice it.

Lewin change model

The Lewin change model basically involves three phases which is represented below as follows:

Unfreeze – Change – Freeze

When a formation of particular company is in place for some time, habits and routine have automatically settled in. The company is going in the right direction, but people and processes may have strayed.  The main aim of unfreeze is to get rid of tasks which are not useful anymore. Moreover it helps the employees to change their habit of doing things one way and bring in the new methods and learn new things on daily basis.

 

Change is  “implementation” of plan

When the team member opens up his mind and start doing the similar tasks in new ways it means the change has started.  The change process takes some time to get implemented and be effective. The employees need to take responsibilities and new tasks which help them in learning and developing further but on the other hand first the organisation slows down a bit.

A change process is an investment, both in terms of time and the allocation of resources. After the new organization and processes have been rolled out, a certain chaos might ensue, but that is the price to pay in order to attain enhanced effectiveness within the structure.

 Freeze is also called refreeze and it means “making new change stick”

Change will only beneficial totally if it’s made permanent. Once the organizational changes have been made and the structure has regained its effectiveness, every effort is made to implement and fix them and make sure the new change in organization becomes the standard. Further changes will be made down the line, but once the structure has found a way to improve the way it conducts its operations, “re-freezing” will give the employees the opportunity to thrive in the new organization and take full advantage of the change.

 

When a change is made for upper level group then the survival time is very short and it soon returns back to previous level therefore it indicates that it is not suffice to define the objective of planned change in group performance as the reaching of a different level.  The permanency of new change should be mentioned as primary objective (Morrison M. , 2014).

According to the studies in Journal of Innovation and Knowledge, to have a continuous growth of the organization and to have an efficient performance of the operations of the firm a change is necessary. The three steps process of the Lewin’s change model is discussed in this study and the studies also suggest that Lewing change management theory provides a constructive framework to the organizations in order to have an efficient performance of the firm. This conclusion of efficiency of Lewin’s change management theory has been concluded on the basis of the theoretical and practical implications (Hussain at al., 2016).

Kotter’s Change Management Theory

Kotter’s change management theory is one of the most popular and is used y many organisations in the world. This theory has made d by John P. Kotter, who is professor at Harvard Business School  and author of several books based on change management. This change management theory by him is divided into eight stages where each one of them focuses on a key principle that is associated with the response of people to change.

  • Increase urgency –  For achieving company objective the team is motivated by creating sense of instant changes required.
  • Build the team – This step of Kotter’s change management theory is linked with getting the right people on the team by selecting a mix of skills, knowledge and commitment.
  • Get the vision correct –  this stage deals with creativity, emotions  and objectives

to create the correct vision among team.

  • Communicate – Communication with employees regarding need of change is also an important part of the change management theory.
  • Get things moving – the feedback is very crucial as it helps to identify roadblocks and implementation of new strategies in more solid way.
  • Focus on short term goals – Focusing on short term goals and dividing the ultimate goal into small and achievable parts is a good way to achieve success with minimum pressure.
  • Don’t give up – being consistent is the key to success and it is important not to give up while the process of change management is on the go, no matter how hard things look.
  • Incorporate change – Besides managing change effectively, it is also important to reinforce it and make it a part of the workplace culture.

(CLEVERISM, 2015) 

 There are several benefits of using Kotter’s change management theory in an organisation because it is a step-by-step process that is easy to follow and incorporate. The main idea behind it is to accept the change and prepare for it rather than changing itself. No doubt everything on this planet which has advantages also have disadvantages as well. Same is in case of Kotter’s Change management theory because whether it is a step-by-step process, no step can be skipped to reach the one after that. The entire process given in this model can be very time consuming (Venkateswaran, 2014).

According to the studies in Asian Journal of Research in Business Economics and Management, the change management theories of Kotter could be implemented in Small Medium Enterprises according to the practitioner’s validation criteria. The implementation of the Kotter’s change management theory would allow these firms to have more efficient and productive environment at the workplace which would result in the overall growth of the organization. There are several suggestions provided in order to maintain efficiency in the organization like assessment of the checklist for the change, Goal execution tracking mechanism and rewarding system for the employees in order to have an efficient implementation of the change management plan (R. Rajan, 2017).

Kubler Ross grief cycle

This model of Change management theory was given by the Elisabeth Kubler-Ross. According to Elisabeth Kubler-Ross, change could occur regardless of time and could not be prevented. There are several stages associated with this theory which could be used in order to prevent any negative impact of these changes. It could be used effectively by the organizations in order to develop an effective workforce in their organization’s environment during the coming changes. This model is also known as 5 stages of grief. It is important for the organizations to support their employees while dealing with the external changes of the environment (Anastasia, 2015). The several stages of the Kubler Ross grief model are discussed below as follows:

  • Denial: This stage of the Kubler Ross grief cycle is basically the very first stage which involves shock or denial. This phase of the theory refers to the time when the organization or a leader realizes about the change and is processing in his/her mind the unexpected changes.
  • Anger: After the arrival of the unexpected change, the organization or the leader of the organization understands the gravity of the situation and starts blaming other for the situation.
  • Bargaining: After the Anger stage passes away, the individual start looking for the ways in which the problems could be dealt with or ways in which the changes could be postponed for the certain period of time.
  • Depression: It is the phase where the organization faces sadness or stress due to the arrival of changes in the environment.
  • Acceptance: In this stage of the theory, the individual realizes that accepting the changes and performing accordingly could provide the firm with a more positive outcome rather than fighting it.

According to the studies by J. S. Shoolin, the Kubler Ross grief model could be used to examine and analyze the impact of the changes and the strategies and plans could be developed in according to put a positive impact on the growth and development of the firm. According to the Shoolin, if the organization analyzes the impact of change on other organizations, then it could develop plan and strategy in order to put positive impact on the growth and development (Shoolin, 2010).

The Prosci ADKAR model

This model for the change management in the organization was developed by the founder of the Prosci Jeff Hiatt. For the successful management of the changes in the organization, it is important for them to understand the impact of these changes on the small scale. It basically stands for five basic outcomes that the organization needs to achieve in order to have a successful response of these changes. These stages of the ADKAR model are discussed below as follows:

  • Awareness about the changes which has to be made in order to maintain efficiency in the organization.
  • Desire to contribute to the change by involving and supporting it.
  • Knowledge about how the organization could implement or adapt to changes.
  • The ability of the organizations in order to develop and provide skills and behaviours to their employees in order to maintain efficiency in the organization.
  • The reinforcement to stabilize during the change and prevent any negative impact on the organization’s revenue.

According to the studies by Bandar Alqahtani, the Prosci ADKAR model allows the firm to develop safe and sustainable practices in the organization by making amendments in the procedures and operations of the firm by the employees in order to put positive impact on the growth and development of the organization. According to the study, the implementation of the Prosci ADKAR model allows the firm to have more productive performance at the workplace (Alqahtani, 2010).

Leadership Theories

There are several leadership theories which could be used in order to have an efficient implementation of the change management plan and some of theories

Nudge Theory

“Nudge Theory or Nudge is a blend in which science, economics, and political theories are taken into account as useful and it can be applied to change management in organizations and businesses as well. This theory belongs to Cass R. Sunstein and Richard H. Thaler. Nudging employees or encouraging and inspiring them to change is the basic role of this theory (RICHARD H. THALER, 2017). It is not only beneficial in exploring and understanding existing influences but also useful in explaining why to either eliminate them or change them to a limit where positives results begin to become” (CLEVERISM, 2015).

This theory deals with human behaviour to lead them towards change. It works directly at management levels in particular organisations. It is important to note that there are many unhelpful ‘nudges’ around which can either be deliberate or may just be accidental. It focuses on the design of choices which is responsible for dealing with our preferences and influencing the options. According to this theory choices must be designed in such a way that it should be parallel with the way people think and decide.

As compared to other theories, Nudge Theory is more sophisticated in its approach and is totally different from other ways of implementation of planes. It removes the traditional change methods like punishment enforcement and direct instructions. One of the main benefits of this theory is that the difference in feelings, opinions, and knowledge of people is taken in account and also considers the reality of the situation as well as the characteristics of human nature and behaviour (Scouten, 2017).

The employees feel as part of company and choose it as their career. The new ideas are generated which is major benefit to particular company. Moreover when the management listen to it team, the employees feels respected and they try work hard and work together as one team to achieve the goal together.

It increase resistance from employees of a company and is not well applied in several industries. Sometimes when listening to much from team ends up in a argument between team members and they does not like to work together or we can say work on same page.

According to the studies by Mark Kosters and Jereon Van der Heijden, the nudge theory of leadership allows the firm to successfully handle the external changes in the environment like changes in the taxation system or any political factors. The nudge theory allows the firm to have a successful implementation of the change management plan by contributing to the leadership in the organizations. In the studies by Mark and Jereon, several examples have been considered in order to analyze the current situation of the theory and how does it contribute in the efficient performance of the firm (Mark Kosters, 2015).

Trait Theory

It is one of the oldest theories of leadership. People are born with inherited traits. Some traits are particularly suited to leadership. People who make good leaders have the right (or sufficient) combination of traits. The trait theory has two approaches which are the great man approach and the personality trait approach.

Stogdill (1974) identified the following traits and skills as critical to leaders.

Traits

Skills

  •     Adaptable to situations
  •     Alert to social environment
  •     Ambitious and achievement-orientated
  •     Assertive
  •     Cooperative
  •     Decisive
  •     Dependable
  •     Dominant (desire to influence others)
  •     Energetic (high activity level)
  •     Persistent
  •     Self-confident
  •     Tolerant of stress
  •     Willing to assume responsibility
  •     Clever (intelligent)
  •     Conceptually skilled
  •     Creative
  •     Diplomatic and tactful
  •     Fluent in speaking
  •     Knowledgeable about group task
  •     Organised (administrative ability)
  •     Persuasive
  •     Socially skilled

(Changing Minds) 

McCall and Lombardo (1983) researched both success and failure and identified these four primary traits by which leaders could succeed or fail.

Emotional stability and composure:  when situation is under pressure control pne needs to be Calm, confident and subtle. When the work load is high and you are running out of time it puts stress on mental ability but if the leader is calm and composed he will find the alternative even when resources are less.

Admitting error: Owning up to mistakes, rather than putting energy into covering up. If a employee made mistake there is no fun in pointing out the particular person. One should always let these thing go and work on the plan as per need or the team will feel unmotivated.

Good interpersonal skills: Able to communicate and persuade others without resort to negative  If the leader is able to communicate well then they might the track that everyone in team is on same page.

Intellectual breadth: Able to understand a wide range of areas, rather than having a narrow (and narrow-minded) area of eexpertise

Many researchers feel that “Traits focus on performance rather than on personal characteristics”. It is now recognised that certain traits increase the likelihood that a leader will be effective  but they do not guarantee the effectiveness. Eugene E. Jennings also concluded, “Fifty years of study have failed to produce one personality trait or set of qualities that can be used to discriminate leaders and non-leaders”. There are few weaknesses which trait theory suffers like it is not possible to identify universal or specific traits common to all leaders. We are unsure of how much trait every person should have. Leaders do not possess all traits whereas non-leaders might have all. It is not clear that which trait is most important and which are least important. Trait studies describe but do not analyse behaviour patterns (Preservearticles, 2018).

To make sure that the organisation such as HQ Arts is running smoothly and effectively the management and leadership plays the most important part. The style of leadership could be autocratic or democratic, job centred leadership or employee centred, etc.  Being positive towards the goal makes it a lot easier to achieve. The traits are present in every single individual whether or not they are leader or non-leaders.  The leadership and management at HQ Arts is to be democratic, so that the ideas of car modification can be groomed. The employees should be given equal amount of opportunity as they are the once who get the job done. Moreover they need to focus and keep in mind that customers are always right.

Behaviour Theory

Behaviour theories of the leadership are basically referred to the theories which allow understanding the specific nature or characters of the individuals. This theory is considered as the best theory as it allows the firm to understand the determinant of the success of the leadership in an organization. These behavioural studies allows to understand the importance of the leadership in an organization and would also allow the firm to make amendments in their operations in order to have a successful leadership in the change management procedures of the organization for the efficient performance of the firm (Leadership Central, 2018).

There are basically two kinds of Behavioural studies which could be used in order to have successful implementation of Leadership in the change management procedures. These two Behavioural studies are listed below as follows:

  • Task Oriented Leaders: There focus would be on following aspects as listed below:

    • Organizing
    • Initiating
    • Clarifying
    • And Gathering Information.
  • People Oriented Leaders: There focus would be on following aspects as listed below:

    • Observing
    • Encouraging
    • Listening
    • Mentoring and Coaching

According to the studies by Scott Derue et al., the leadership style in the organization suffers from the lack of theoretical research and integration which affects the performance of the leaders. The theoretical framework for the leadership in an organization could put a positive impact on the growth and development of the organization. According to this study, the overall growth and development of the organization would put a huge positive impact on the organization and would allow the firm to have an efficient performance of the change management plan in an organization (DERUE et al., 2011).

Great Man Theory

According to the studies, leadership is an inborn quality which provides efficiency in the organizations change management plan. This theory enlightens all the aspects under which the qualities of the leaders are studied.  According to this theory of Great man, the leader should have qualities like persuasiveness, charm, judgment, commanding personality, aggressiveness, courage, and intelligence and action orientation. These qualities make an effective leadership in an organization. According to the further implications of theory there are several aspects which are necessary to be considered and are discussed below as follows:

  • Leadership is a gift to mankind.
  • Everyone cannot acquire the qualities of the leaders.
  • The inborn qualities of an individual are alone necessary to put a positive impact on the organization.
  • According to the theory, the leadership qualities can be attained by an individual if properly trained for the position (Chand, 2018).

According to the studies in the Journal of Leadership Education, the study of people who were born with the leadership qualities could put a positive impact if imposed on the academic pursuit of an organization. The implementation of the theories in the training sessions could put a positive impact on the growth and development on the organization (Harter, 2003).

References

  • Bizdb.co.nz. (2018, january 03). Hq Arts Nz Limited. Retrieved from bizdb: www.bizdb.co.nz/company/9429042001553/
  • Changing Minds. (n.d.). Retrieved novemeber 2018, from www.changingminds.com: http://changingminds.org/disciplines/leadership/theories/trait_theory.htm
  • CLEVERISM. (2015, JUNE 18). Retrieved NOVEMBER 2018, from www.cleverism.com: https://www.cleverism.com/major-approaches-models-of-change-management/
  • HQ ARTS NZ. (2018). Retrieved from www.hqarts.com: www.hqarts.co.nz/contact.html
  • Hussain at al. (2016). Kurt Lewin’s process model for organizational change: The role of leadership and employee involvement: A critical review. Journal of Innovation & Knowledge, 124-127. Retrieved from https://www.researchgate.net/publication/309182963_Kurt_Lewin’s_process_model_for_organizational_change_The_role_of_leadership_and_employee_involvement_A_critical_review
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  • Morrison, M. (2014, JULY 07). RAPIDBI. Retrieved NOVEMBER 2018, from www.rapidbi.com: https://rapidbi.com/kurt-lewin-three-step-change-theory/
  • MSG. (2018). Retrieved november 12, 2018, from www.managementstudyguide.com: https://www.managementstudyguide.com/importance_of_leadership.htm
  • Preservearticles. (2018). 5 weakness and failures of the trait theory. Retrieved from http://www.preservearticles.com: http://www.preservearticles.com/2012051932573/5-weakness-and-failures-of-the-trait-theory.html
  • R. Rajan, R. G. (2017). A Critical Analysis of John P. Kotter‟s Change Management Framework. Asian Journal of Research in Business Economics and Management , 181-203. Retrieved from https://www.researchgate.net/publication/318481875_A_critical_analysis_of_John_P_Kotter’s_change_management_framework
  • RICHARD H. THALER, C. R. (2017). ABOUT NUDGE. Retrieved from https://www.penguinrandomhouse.com: https://www.penguinrandomhouse.com/books/304634/nudge-by-richard-h-thaler-and-cass-r-sunstein/9780143115267/
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  • Venkateswaran, D. (2014, may 19). A CRITIQUE OF KOTTER’S 8 STEP MODEL FOR LEADING CHANGE. Retrieved from https://dineshvenk.wordpress.com: https://dineshvenk.wordpress.com/2014/05/19/kotter-critique-part-1/

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