Organisational Leadership and Performance, Change Management vs Change Leadership - Coursework Example

Organisational Leadership and Performance Name: Institute: Table of Contents Organisational Leadership and Performance 1 Table of Contents 2 2.0 Change Management vs. Change Leadership 3 2.1 Change Leadership 4 2.2 Change Management 5 3.0 Modern Leadership 5 4.0 Leadership styles in Globalised Environment 7 4.1 Charismatic Leadership 7 4.2 Transformational Leadership 8 4.3 Visionary Leadership 9 4.4 Transactional Leadership 10 4.5 Servant Leadership 10 5.0 John Donahoe Leadership Styles 11 5.1 Communication Style 12 Organisational Leadership and Performance 1.0 Introduction In management, a circumstance needing change must pursue a structure so that change to be performed fruitfully. According to Kavanagh and Ashkanasy (2006, p. S82), effective skilful leadership is as well an aspect that must be considered to help in the change process. Basically, there are diverse stages involved in a structure and also various paradigms may be utilised to successfully manage and lead change. Therefore, the change leaders’ role in sponsoring or initiating strategic organisational change has frequently been presented positively as the offset-image of conventional management roles (Bush, 2008, p. 278). Contemporary middle-managers are seen as entities without practical characteristics of openness, risk-taking and flexibility to innovative ideas vital for managing or creating change. Still, there have been hardly any efforts to shed light on these offset-images, or the degree to which the roles of managing and leading change could in effect be complementary. Nevertheless, in spite of this novel knowledge of the complementary nature of management as well as leadership roles in organisational change processes, Gill (2003, p.308) posits that there have been hardly any efforts to plainly define diverse forms of change agent roles, or to recognize a particular set of characteristics related to managing and leading change. Rather, there has been a trend to integrate the change leader image into an only general type in addition to envisage the characteristics of managers as negating to roles of change agent. The report seeks to discuss the way that leadership has changed within the context of a globalized environment, over time. 2.0 Change Management vs. Change Leadership These days’ business organizations are succeeding in change process by building a capability through centers of excellence in Change Management as well as making the managers and leaders ready with essential skills to effectively manage their teams through change.  Therefore, organizations that have not proactively strategize and guide the employees through recognition and espousal of the new organizational change cannot balance the change and will eventually endure a competitive disadvantage in the marketplace. In a globalised environment, it is imperative to acknowledge two different sets of skills as well as approaches in helping the organization grow to be change-ready. They include; (1)) competency in the organization with regard to Change Leadership, and (2) methodology as well as practitioner toolkit in Change Management. Besides that, organizations can select one or both approaches in developing a change competence in their team or company. 2.1 Change Leadership Change leadership as per Jones, Aguirre, and Calderone (2004, p. 2) is the capability to lead, manage, as well as facilitate the transition and change process while assisting people cope with the change effects.  Ordinary behaviors consist of: the capability to create novel approaches, recognizing improves, more rapidly, or cheaper ways of performing things, and supporting others to value organizational change. The above-mentioned attributes are usually noticeable among professionals with skills in the organizational development and design expertise. Change leadership as well connotes handling initiatives of change efficiently by expecting, getting ready and responding efficiently to barricades. Graetz (2000, p. 551) describes change leadership as creating a receptive, open, work setting and involving workers at every level of change process. Managing multifaceted change, at higher levels, entails comprehending cultural dynamics existing and creating proactive strategies to get the finest benefits for the company, and those driving the change. Moreover,, change leadership involves expertise such as coalition building, time management, planning, active listening, decision making, and communications. For this reason, change Leaders must: understand the process of change as well as employees resistance, differentiate his/her strengths and areas that need improvement, and demonstrate intelligibility on his/her role(s) for a change plan as well as how to successfully carry out that role(s). Besides that, change leaders must model how to make other powerful, exhibit resilience, and also acknowledges that the change cycle can have unfavorable effect on performance of team members, both professionally and personally (Santhidran & Chandran, 2013, p. 349). 2.2 Change Management Change management, on the other hand, is the use of tools and structured process to facilitate groups or individuals to change from the present status to a future status, so as to attain a preferred result. When change management is perfectly done, workers will feel engaged in the process of change and work together towards a common goal. Importantly, Change Management stresses on the workers-side of change as well as aims at leadership in all every organizational level (Burnes & By, 2012, p. 4). Therefore, practitioners in change management do play a vital part in proactively and successfully quantifying employees’ resistance as well as project failure risk. Therefore, Change Management discipline and Change Leadership are important for business enterprise to shift and flex with changing conditions in the marketplace.  Basically, environmental influences, healthcare, government rules and regulations, modernization, up-and-coming technology, as well as globalization are merely a number of the trends having an effect on organizations’ capability to remain agile (Gill, 2003, p. 309).  To achieve the profits of their investments as well as successfully steer strategic changes, Gill (2003) posits that both Change Management and Change Leadership techniques are a competitive advantage. 3.0 Modern Leadership Leadership in the contemporary globalised setting reveals progressive models of fairness and teamwork in leadership. Based on the current trends, leaders are persuaded to team up and co-exist with employees instead of dictating or ruling over them. Trends in the contemporary leadership promote leaders, instead of managers. Nowadays, effective leadership is usually seen as essential to success of any organisation, and more significance is directed towards leadership development as compared to the previous days. According to Santhidran and Chandran (2013, p. 351), developing entity leaders is no more the just spotlight of leadership development, even though it is still a vital feature. Progressively more, leadership has been defined not based on what is done by the leader but instead as a course that produces and is the outcome of associations, which concentrate on the interactions of collaborators and leaders rather than concentrating on leaders’ competencies. Practices of leadership development rooted in this model are harder to develop and put into practice as compared to those that have been trendy in the previous decades wherein the goal was to prepare leaders to become excellent managers. With regards to this, a number of themes explain the position of leadership development in the present day (Jones, Aguirre, & Calderone, 2004, p. 2): First, leadership development is progressively more happening in the work context of work; secondly, crucial reflection is concerning the competencies roles in leadership development; finally, re-examining the work/life balance issue. Leaders in the globalised setting have emotional intelligence given that contemporary leadership's recognition of vital talents, have compelled score of companies to encouraging leaders to learn effective behaviours as well as practices of social and emotional intelligence. However, trends in contemporary leadership emphasises on the leaders’ attributes, which includes personality traits. For example, modern leaders are persons with certainty, and strong interpersonal skills, but a number of critics are concerned that the more stressing on personality attributes diverts from other vital leaders’ qualifications. Therefore, leaders must be the brightest and the best, having intellectual superpower, vision and knowledge, not only a permutation of sought-after personality attributes (Burnes & By, 2012, p. 3). A benefit of leadership in the globalised environment is the progress toward non-intimidating and more democratic work business settings. For that reason, leaders are required to recognize workers as equivalents to whom they work together, instead of seeing them as objects. 4.0 Leadership styles in Globalised Environment Presently, there are five contemporary leadership styles in the changing business environment, and they include transactional, charismatic, visionary, transformational, as well as servant leadership styles. All these leaders as mentioned by (Parker, Parker, & Craig, 2008, p. 174) lure the commitment of their followers' to accomplish complicated missions directed by a fluid and dynamic setting marked with swift changes. 4.1 Charismatic Leadership According to Parker et al. (2008, p. 173), charismatic leadership is where a leader leads by dint of charm and personality, rather than depending on any external authority or power. Evidently, charismatic leaders aspire to realize organizational goals by inspiring loyalty. They read as well as scan the business environment wherein they work to raise up the concerns and moods of workers as well as enormous audiences, and afterward perfect their words and actions to go well with the state of affairs. They generate the workers’ trust through noticeable altruism and take individual risks to realize organizational goals. Their key behavioral characteristics include: compassion to the business setting as well as workers needs, expression of a undemanding vision shaped to the state of affairs, and successful utilisation of verbal language and body language. Other attributes include individual risk taking as well as eccentric behavior, high self-confidence, and showing confidence in the ability of the followers. Besides that, charismatic leaders can transform and elevate the whole company, but the risk lies in making use of these powers to generate a personality-rooted cult that misleads workers. 4.2 Transformational Leadership Transformational leadership as per Parker et al. (2008, p.174) remains to be one of the most well-liked styles of leadership in the changing business environment and concentrates on carrying out revolutionary organizational change through a dedication to the vision of the organization. Moreover, transformational leaders trade the organization’s defined vision, normally a far-reaching vision that deviates from the recognized one by scores of ways, like: Expressing the vision as well as enlightening how to achieve the vision appealingly and creating high levels of individual integrity to achieve workers trust and motivate them. Some of noteworthy transformational leadership attributes include: Using energy and enthusiasm at work, and infusing these enthusiasm and energy to followers; leading by example to exhibit actions and attitudes for followers to imitate; inspiring and mobilizing followers by continually enthusing, soothing, and listening; and, generating a collective vision as well as attracting worker’s natural desire to reach higher levels associated to learning, feel affection for, being a hero, and so forth (Parker, Parker, & Craig, 2008, p. 173). Charismatic leadership and transformational leadership have much in common, with key dissimilarity being the scope. Whereas transformational leadership concentrates on change within the organization, charismatic leadership can lack this focus. 4.3 Visionary Leadership Visionary leadership is concerned with dreaming about the future of the business as well as translating such dreams into realizable goals and that can be expressed with great motivation to infuse the follower’s commitment. This type of leaders always back up their words with action. Basically, visionary leaders look forward to change as well as act proactively to manage the situation. Rather than the conventional leadership technique of directing and dominating followers, they espouse a partnership approach so as to generate a collective sense of vision together with the subordinates. They concentrate on opportunities instead of setbacks, and put emphases on win/win approach instead of disputatious win/lose approach (Okoth-Okombo, 2011, p. 93). Their key attributes include: exhibiting individual integrity as well as raying a sense of vitality, adherence, and energy to core values. When promoted with power instead of turning out to be besmirched by power, they exercise ethical leadership. They always maintain good relations with their followers, and also espouse a deeply compassionate approach to followers by treating them with respect and warmth. They also motivate their followers to better themselves and also offer them a new sense of confidence as well as hope to succeed. As noted above, visionary leadership is based on a balanced articulation of the physical, emotional, mental, and spiritual dimensions, as well needs the existence of all these dimensions to succeed. 4.4 Transactional Leadership Transactional leadership is anchored on doing things through a comprehensible chain of command and works on the presumption that punishment and rewards will inspire worker. Furthermore, transactional leaders always negotiate contracts with workers, which generate understandable structures, making clear the conditions, in addition to set up a formal system for discipline and rewards. In this case, the workers get remunerated in addition to other benefits and in return, the company gets total power over them. The workers become completely accountable for the assigned work and get rewards for succeeding or punishment for failing. Importantly, transactional leaders pursue a management by omission approach, whereby they give no or little attention to everyday issues or anticipated performance and instead mind current issues. Their key attributes include: Dependence on standard forms of sanction, incentive, punishment, and reward to regulate followers; inspiring followers through goal setting as well as an uncomplicated and clear-cut rewards approach for needed performance in addition to discipline for failing; and, supporting followers to finish their side of the deal productively (Parker, Parker, & Craig, 2008). Amongst all other contemporary leadership styles, transactional leadership as per Okoth-Okombo (2011) is almost similar to traditional styles of leadership. 4.5 Servant Leadership Servant Leadership is founded on premise that leaders are first servants, and they deviate from the traditional style of leadership of controlling followers and advising them on what to do, and instead empower their followers and act proactively to motivate them to become successful. Their attributes include: Taking effort and time to help their followers comprehend their strengths and weaknesses, as well as make out possible purposes they may fail to realize their own goals (Parker, Parker, & Craig, 2008). They also view things from other point of view, demonstrate tolerance, and exhibits understanding (Okoth-Okombo, 2011, p. 94). The key attributes of servant leadership is listening, understanding, responsiveness, healing relationships, persuasion, foresight, conceptualization, stewardship, dedication to workers, as well as dedication to developing community. A exceptional characteristic of contemporary styles of leadership in the globalised environment is that a leader hardly ever shows any one style of leadership solely. 5.0 John Donahoe Leadership Styles Transformational leadership evidently improves the job performance, morale, and motivation of followers by means of various methods. Such include linking the follower's sense of identity as well as the organizational collective identity; that is being the followers’ role model who motivates them and makes them fascinated; and comprehending the followers’ strengths and weaknesses, so the leader may line up followers with undertakings that improve their performance. Before joining eBay, John Donahoe had spent 2 decades at Boston-based Bain & Co. where he managed numerous businesses. To this point, Donahoe has transformed the core businesses of eBay with a firm concentration on innovation as well as customer access. Besides the online retail site, eBay runs GSI Commerce, PayPal, and currently X.commerce. Currently, PayPal processes more than $125 billion in payments and it is projected to grow by 30% annually (Levine, 2013). The company, under the watch of Donahoe, has forcefully advanced, making noteworthy steps in enlivening its core business at the marketplace. However, none of these achievements came simply. Donahoe instigated a protest firestorm, on his third day on office after publicly revealing his plan to change the company. The company, as a result experienced a worsening position in spite of upbeat financials, the market pulverized the stock, and internal messages turned out to be acerbic. To worsen the situation, the Great Recession tore through the financial system halfway through turnaround, compelling him to lay off ten percent of the organisation’s workers (Shaughnessy, 2011). This experience coerced Donahoe to espouse all through eBay the Net Promoter Score (NPS), which was a universal customer-based measure when examining performance. In this approach, performance is measured on a scale of 1 to 10, whereby a score of more than 8 makes an one a promoter, while a score below 5 makes one a detractor. At the moment, 10% of eBay’s compensation of top management is attached to NPS improvement. 5.1 Communication Style John Donahoe as eBay leader, is anticipated to be an effective communicator, and this connotes being more than just persuasive, it connotes delivering consequential content also. Donahoe must have the ability to communicate the business strategy essence and equally imperative, the method of realizing it. Donahoe have to be approachable, whereby all encounters must be unforgettable one. Donahoe has managed to receive vital input and comprehend how to convey vital output devoid of offense. He has as well managed to run numerous meetings resourcefully, demonstrating how it is imperative respect time. Besides that, Donahoe understands when contribution that is positive is being made, and can stand in front of the workers and deliver inspiring presentations. To effectively communicate, leaders must be able to develop partner connections, steer sales calls, talk about pricing as well as deflate situations of critical support. This proves why Donahoe makes use of communication skills for scores of things. Evidently, not every person is born with the ability to be an outstanding communicator; actually, few persons such as Donahoe appear to have this as an inborn talent. This does not connote that a leader without communication skills can fail in taking on the role of CEO, rather it connotes that he/she must to work hard so as to become an effective communicator and more significantly, comprehend how to make use of the team/group around them to pay off for any shortcomings. Communication is vital, and for any organization undergoing a change process must understand the significance of communication in order to avert any looming resistance. Lack of communication, makes employee feel insecure and useless, and so any slight organizational change is met with furious resistance. As a transformational leader, Donahoe understands the importance of being an effective communicator, and this skill has been behind his successes at eBay. 6.0 Conclusion In conclusion, it has been argued that companies are progressively more realizing the value of change management and change leadership.  Agile business enterprise, with entrenched capabilities to handle change as well as effectively communicate to their employees, have a bigger chance of achieving return on investment (ROI) on strategic initiatives and projects.  Besides that, organizations that have heavily invested in a structured change approach for their workers are offered a prospect of realizing preferred business results. Leadership practices in the globalised environment encourage leaders to have and use social and emotion intelligence, other than skill, talents and knowledge. The process of change is extremely hard-hitting and essential for organizations and if effectively managed may drive the organization towards the path of success. 7.0 References Burnes, B., & By, R. T. (2012). Change management: leadership, values and ethics. Journal of change management, 12(1), 1 - 5 . Bush, T. (2008). From Management to Leadership: Semantic or Meaningful Change? Educational Management Administration & Leadership, 36(2), 271-288. Gill, R. (2003). Change management - or change leadership? Journal of Change Management, 307-316. Graetz, F. (2000). Strategic change leadership. Management Decision, 38(8), 550 - 564. Jones, J., Aguirre, D., & Calderone, M. (2004). 10 Principles of Change Management. Resilience Report: Booz & Company Inc. Kavanagh, M. H., & Ashkanasy, N. M. (2006). The Impact of Leadership and Change Management Strategy on Organizational Culture and Individual Acceptance of Change during a Merger. British Journal of Management, 17(S1), S81-S103. Levine, P. (2013, December 12). When Leaders Serve: A Conversation with eBay CEO John Donahoe. Retrieved from a16z.com: http://peter.a16z.com/2013/12/12/when-leaders-serve-a-conversation-with-ebay-ceo-john-donahoe/ Okoth-Okombo, D. (2011). Challenging the Rulers: A Leadership Model for Good Governance. Benin City: African Books Collective. Parker, D., Parker, D. W., & Craig, M. A. (2008). Managing Projects, Managing People (Vol. 15). Brisbane, Queensland: Macmillan Education AU. Santhidran, S., & Chandran, V. G. (2013). Enabling organizational change: leadership, commitment to change and the mediating role of change readiness. Journal of business economics and management, 14(2), 348 - 363. Shaughnessy, H. (2011, October 10). Has eBay Caught the Apple Bug? Retrieved from Forbes: http://www.forbes.com/sites/haydnshaughnessy/2011/10/17/has-ebay-caught-the-apple-bug/ Read More