Information Technology and the IT Industry
Discuss about the various aspects of leadership and change management focusing on Microsoft Corporation.
The purpose of the report is to highlight the various aspects of leadership and change management focusing on Microsoft Corporation. In this report Microsoft has been chosen as the case organization and the report highlights several areas of improvements and explains the gaps. This report includes a GAP analyses along with a development plan regarding leadership and change management for Microsoft Corporation.
IT (Information technology) can be defined as the application to store, transmit, study and transmit information. IT can be regarded as a subset of communication and information technology. Organizations in the IT industry are often termed as a group as the ‘tech sector’. The responsibilities of the individuals who work in the IT industry includes network administration, management and planning of an corporation’s technological life cycle, developing various software and many more (Voet 2014). The business value of IT industry is dependent on the automation of the processes of the businesses, connecting the businesses with their target customers, maintaining software and hardware.
Microsoft is an American multinational technology organization that is headquartered in Washington. The organization manufactures supports and sells electronic devices, various software and personal computers. Currently the flagship hardware items of Microsoft are Xbox video game consoles and Microsoft Surface Tablet. Currently Microsoft is the largest revenue generator by selling software globally. The organization was founded by Bill Gates and Paul Allen in the year of 1975 (Microsoft.com, 2017)
In the year of 2013, it was revealed that though the 55% of the leaders in the global businesses feels that the changes in the organisations initially satisfies the targets, but in only 25% cases, the initiatives regarding change management was in the long term. From various secondary sources of information, it is seen that more than 87% leaders confirmed that they have trained their managers of the organisations to look after the ways of change management, but somehow, after a few days of implementing those changes, they did not last long (Burke 2017). Thus, it can be said that to sustain the productivity along with the profitability, the owners of the business organisations will have to put in extra effort to look after the change of management and leadership in the organisation.
The change management can be defined as an organisational process that targets to help the stakeholders of the organisation to accept the changes in the operations of the business. Change management includes application of a set of tools, skills, processes and the principles of managing the ‘people’ side of the changes to attain the predicted outcomes of the initiatives taken by the management (Cameron and Green 2015). It can be said that to achieve success, the management should use up all the principles of change management to generate a long lasting and effective change in the management. The statistics of the last 20 years presents facts like almost 70% of the initiatives in the change managements within the organisation failed as a significant threat to the success of the implementation of the changes does not focus on the ‘People’, which is a major component in the change management (Fullan 2014). It can be said that, in organisations where desired success is attained, surely the change process consists of a series of important steps and it needs adequate time to generate the desired result.
Overview of Microsoft Corporation
From various secondary sources of information, a best model of change management can be chosen for this particular context.
Figure: Model of change management
Source: (Burke 2017)
It can be said that it is essential to identify the issues of ‘bottom-up’ versus the ‘top-down’ change. In a way the stakeholders of the organisation are seen more inclined to own a change if it is initiated at the working level rather that if it is imposed upon them by the leadership or by others. In this context, it is worth mentioning that every time it would not be possible in the public sector for organic changes in the organisation to take place, thus a ‘stop-down’ approach might be needed. When the best practice model stresses more on how to change the ‘top-down’ approach, the principles still remains relevant to ‘bottom-up’ changes (Cummings and Worley 2014). It is a matter of fact that other than the above mentioned model there are various models which can be used as effective model of change management when needed.
It is a known fact that being good at job does not imply that the individuals will become good managers. There are differences in the styles of management and each management style suits different context depending on the requirement of the business organisation. As stated by Voet (2014) various activities exist that help the managers perform to manage the situation in better way; such as recruiting the right candidates, being empathetic towards the employees, having good communicative skills and many more. In this context, the communicative skills are most important to bring in an effective change in the leadership Microsoft.
In today’s world, in a reputed organisation like Microsoft, to increase the productivity and profitability the management needs to focus on the communication within the organisation. Thus, it can be said that if the leaders possess good intrapersonal skills, it would be much effective in motivating the workforce and that would positively influence the productivity along with the profitability of the organisation (Goetsch and Davis 2014). In most cases, communication becomes the key factor that brings in significant positive changes in the organisation. If the communication is good within the workplace, the performance level of employees is enhanced, as in such a way less confusion regarding work is noticed among the employees. If the communication system is good in the workplace, the employees get the perfect idea of what the organisation expects from them and what they can expect from the management of the organisation (Bolman and Deal 2017). Thus, it can easily be said that communication can effectively bring in the desired changes in the organisation to increase productivity along with the profitability.
According to Herrmann and Felfe (2014), gap analysis is done in order to compare the actual results with the desired results. It has been seen that most of the times organisations falter while executing a plan in a proper manner. This is mainly because of the lack of resources and capabilities of an organisation. It is important for managers to analyse the market along with the external and internal business environment. The strategies adopted by the managers also need to be executed properly in order to reduce the gap that exists between the actual results along with the desired result. It also involves detraining, documenting and approving differences that exist in the organisational beliefs and procedures (Renz 2016). Hence, keeping this in mind the gap analysis of the current and best practises adopted in Microsoft can be conducted.
Importance of Effective Change Management
As stated by Strom, Sears and Kelly (2014) managers need to adapt the best practise that can help in the growth and success of an organisation. Microsoft is one of the most famous and reputed companies in the world. Hence, it can be said that the management practise adopted by the company needs to be the best. However, certain flaws exist that hamper the growth of the company. Despite the increase in revenue and net income of the company the leadership style adopted by Microsoft, come under the spotlight due to the changing nature of business.
As seen from the analysis the current best practise in the leadership activity is the build of proper relationships with the employees. This can be done by maintaining proper communication with the employees. Hornstein (2015) stated that maintaining a proper time and space between the people to talk about and ask questions is one of the key characteristic in leadership. This can help to understand the ideas and thoughts of the employees. Any flaws in the ideas and thoughts can be rectified in order to encourage the employees and make them remain aware of the mistakes.
In the case of Microsoft, the leadership practise followed in the organisation is to encourage the employees to grow. The growth of the employees is one of the biggest focal points of the companies. Hence, empowerment is provided to the employees in order to motivate them so that they can take decisions related to the management and work practises of the organisation. According to Northouse (2015), the empowerment of the employees can help them to find a deeper meaning of the work purpose in the organisation. Supporting the goals of the employees is also a major focus of the companies. Hence, keeping both the practises in mind the gap analysis of the leadership in Microsoft can be conducted.
It has been seen that the current best practise in leadership is to communicate with the employees. The reason behind this being the best practise is the fact that employees can be guided in a proper manner (Bolman and Deal 2017). However, in the case of Microsoft the company allows the empowerment of the employees. The leaders provide support to the employees without proper guidance. This shows that the managers have a lot of faith on the employees. This can be considered as a gap in the practises as without proper communication, it can be difficult for the employees to take decisions based on the management of the organisation.
Apart from the leadership style, the other important aspect of a manager is the fact that the changes in the organisation need to be managed. According to Hayes (2014), bringing about changes in an organisation refers to making transformation to the ways by which managers can organise the functions of a company. This is an important aspect in every organisation, as the changes that take place are required to remain updated with the business environment. In this, regard the best practise for change management in the modern world can be considered as a systematic approach to the development of change in the organisation.
Best Model of Change Management
Antonakis and Day (2017) stated that the systematic approach to managing change could be brought about with proper utilisation of the managerial concepts. As seen from the analysis the most important aspect of the systematic change management is to establish a vision. This is important in order to understand frame a proper analysis of the change and the reason behind the occurrence of the changes. Engaging stakeholders is important, as they are the people that invest in the organisation. This can lead to the proper management of change in the organisation (Worley and Mohrman 2014). Keeping in this mind the change management process of Microsoft can be analysed.
Microsoft uses the theory stated by Kotter in order to manage the changes in the organisation. This theory consists of eight steps that are also systematically arranged in order to provide a clear vision about the importance of change in the organisation. Microsoft uses this strategy in order to maintain specific changes in the organisation. Cummings, Bridgman and Brown (2016) stated that changes in teams are necessary for Microsoft as most of the works are done based on the coordination of the teams. Thus, the gap analysis of Microsoft can be done based on the analysis of change management practises.
It has been observed that the application of Kotter’s change management model compels employees to understand about the systematic manner in which changes can be maintained in the organisation. It has also been observed from the analysis that the use of other models of change management has certain flaws such as it does not address the building of a team in a proper manner. Hence, it can be considered as a major gap in the change management practise as in the modern day business the development of teams can help in the reduction of the workload in the organisations (Hechanova and Cementina-Olpoc 2013).
After analysing the leadership and change management practises that are followed in the business world, it can be said that organisations need to make changes so that they can be competitive in the modern world. The fact that every organisation in the world needs to adapt to the changes in the business environment is an important factor for the success of a business (Goleman, Boyatzis and McKee 2013). The type of leadership and the ability to manage change in the organisations is essential to develop a successful business. Thus, an organisation like Microsoft can focus upon the changes that it needs to undertake in order to remain at the top of the IT industry in the world.
Microsoft is one of the most reputed companies in the world. The fame of the company provides an opportunity to recruit talented employees in the organisation and ensure they maintain the reputation of Microsoft. However, changes need to be made to certain areas in the company so that the success is not depleted. In this regard, it can be said that a proper gap analysis can be made used to identify the factors that are lacking in the organisation. The analysis of the gap provides evidence that keeping in mind the nature of fluctuation of the business environment, developments in the form of changes need to be made to maintain competitive advantage.
Communication in Leadership
The analysis in the leadership practise of Microsoft shows that the communication between the employees needs to be maintained. This is important, as without proper communication the managers of an organisation cannot motivate the employees. The strategy of empowering adopted by the managers of Microsoft is an important step for encouraging employees. However, with proper communication with the employees, the managers can understand the demands and needs of the employees. Hence, this important change needs to be adopted by Microsoft. The proper communication with the employees has certain benefits such as it can help the employees to be more approachable to the managers. The new thoughts of the employees can be used to incorporate in the organisation in order to ensure that innovation can be encouraged in the organisation. Apart from this, another recommendation that can be provided is based on the management of change.
The management of change in the organisations need to be such that the employees remain convinced about the importance of the changes. Microsoft follows Kotter’s 8-step change management model in order to inspire change among the employees. However, the use of different approach such as Levin’s change management model can help in simplifying the change management in the organisation. The employees need to be provided with proper encouragement to maintain changes in the organisation. This can be done by providing training sessions to the employees and making them understand about the importance of changes in the organisation. Thus, following the recommended changes Microsoft can be able to maintain its status as the best IT Company in the world.
Conclusion
Thus to conclude, it can be said that Microsoft needs to update their leadership style and go through a change management to sustain their profitability in the market full of competition. It is a matter of fact that in today’s world, every business organization needs to update themselves with time adapting to the changes. A perfect leadership style can immensely improve the productivity along with the profitability of the organization. Thus as a reputed and well established brand, the management of Microsoft should be flexible enough to adapt to the necessary changes according to the market demands.
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