Impact Of Leadership And Change Management Strategy

Problem Statement

Discuss about the Impact Of Leadership And Change Management Strategy.

The aim of any company is not only to exist in the market but is to sustain their survival by developing their level of performance. In order to stay in line with the demands and the needs of the competitive economy, it is the responsibility of the companies to enhance their performance (Birasnav, 2014). The researches that have been taken previously have addressed that the leadership role plays a significant role in order to enhance the performance of an organization and attain their aims and objectives. On the other hand, the results that have been gathered from the earlier researches in accordance to the impact of leadership on the organizational performance have been mixed and therefore the construction of this paper based on this topic has become vital in order to have a clear understanding of the level and kind of impact leadership has on the performance of an organization.

The companies that are operational in the global market has the idea of maintaining profit and in order to attain their level of profit, it is essential for the companies to stay alive in the market in a sustainable manner. There are several factors that assists in the development of the performance of the companies and one of the essential factors has been leadership style that is followed by the company and the kind of leadership that is undertaken by the company (Hartnell et al., 2016). The previous researches have shown leadership impacts on the performance of the companies but the problem that is existent is that with the advent of time as the market and the operational style changes in order to cope with the market the impact of leadership on organizational performance changes as well (Zhu et al., 2015). Therefore, it has become essential to understand the impact and conclude in that manner.

The objectives of the research are:

• Assess the impact of behaviour of leadership on the organizational performance

The question on the basis of which the research would move forward has been explained as follows:

The development of effective leadership within an organization is possible with the help of honesty, integrity and ethics and these are the aspects that are helpful in influencing and motivating employees within the company. The effective level of communication of the leader and their skills of communicating their ideas to the employees enable the level of performance of the employees and accordingly the development of the performance of the business (Wang et al., 2014). The level of communication is helpful for the development of a company because of the fact that the results that changes that are taking place in the market and the changes that are required by the management can be easily be conveyed to the employees so that they can perform accordingly. The level of decision making of the leaders is helpful in the development of the performance of the companies (Masa’deh et al., 2016). The other aspect that is essential from the part of the leaders has been their attitude and sentiments as in order to be an effective leader, the views, opinions and the grievances of the employees needs to be heard as well in order to resolve them and motivate them to perform in an effective manner with the help of which the performance of the companies can be developed (Day et al., 2016).

Research Objectives

The efficient leadership style is featured by the abilities of the companies in order to incorporate changes and thereby enhance and motivate the employees in order to perform in such a way that they are able to meet the aims and objectives of the companies (Valmohammadi, & Ahmadi 2015). It is the duty of the leaders to understand the kind of change is beneficial for the companies in order to enhance their performance and maintain competitive edge in the market. Eisenbeiss et al., (2015) explained that effective leader try to attain their target through their employees by taking assistance of the above mentioned factors. The leaders even look to incorporate positive changes within the working environment in order to improve the journey of the business and the positive changes bring in positive vibes that are helpful in the development of the performance (Santos et al., 2015).

The leadership style and the quality is even dependent on the key performance indicators and this aspect is considerably taken into account in order to improve their business. The use of the data in a proper manner and accordingly constriction of strategic plans and policies have significant role to play as well (Saleem, 2015). These are some of the mostly researched aspects related to leadership style and quality and therefore much focus is given by the management on these aspects in order to enhance the performance of their companies (Yang et al., 2014).   

Barrick et al., (2015) expressed the views that leadership attitude has significant amount of impact on the organizational performance and the attitude and behaviour disclosed by the leaders depend either on the kind of work they want the employees to get done, the attitude of the employees and the features and the characteristic of the leader itself.

The extent of performance is dependent on the knowledge over the various elements that are related to the alterations that is being improvised by the companies in order to incorporate developments in the same market scenario (Jyoti, & Dev 2015). The changes that are required to be incorporated within the company is reliant on the objectives of the company and the desire to exist in the domestic and international economy (Jacobsen, & Bøgh Andersen 2015). The innovations that are useful in the enhancement of the organizational performance are hugely dependent on the decision making capabilities of the leaders. The organizational performance is directly related to the leadership skills and therefore the nature of leadership would determine the development of the performance (Fu, & Deshpande 2014). The development of the company performance can be understood once the companies are able to develop their business better than the competition that is existent in the market. The understanding of the market competition is dependent on the qualities of the leader and therefore they take additional steps in order to understand the same (LePine et al., 2016). The performance of the companies is even dependent on the quality that is rendered by the companies with the help of the services and the products that are offered by them. Therefore, leaders have the role to monitor all these aspects with the help of which the companies can maintain their quality benchmark and even improve on the same in order to enhance their organizational performance. The companies operational in the economy looks to enhance their performance in the economy and hence the role of the leaders and their leadership style and quality has a significant role to play (Herman, & Chiu 2014).

Research Question

There have been several other researches, which have indicated that with the advent of time organizational performance has been dependent on certain other factors as well. Boehm et al., (2015) cited that the key performance indicators of the leaders have an influence on the performance of the companies. The understanding of the key performance indicators and the development of strategies based on this aspect have a significant role in the performance of a business. 

Boies et al., (2015) explained that use of the data that is available to the leaders are even essential in the development of the business because of the fact that the companies are able to develop their business accordingly. The effective use of the data that is available to the leaders assist them in constructing plans and policies and regulate the operational activities of the company with the help of which the companies are able to enhance their business and maintain competitive edge in the market (Caillier, 2014).

Strategic plan of a company is another factor that has a crucial role in the development of the performance as the effectiveness of the strategic plans improve the functionalities of a business and the construction of strategic plans are dependent on the leaders (Alagaraja, & Shuck 2015). These features are the aspects that should be available among the leadership qualities and therefore it can be extensively expressed that qualities of leadership have influence on the performance of the companies.           

The methodology of the paper tries to cover the aspect of the kind of data that would be used for the purpose of analysis in accordance to this topic. The other aspect that is covered in this section of the paper has been the development of the design, philosophy, design and the method that would be used in order to collect the valid and the authentic data. The collection of the data would determine the process that would be used for the analysis purpose.

The philosophy determines the recognition of the several elements that re related to the efficient paradigm of the research. This is helpful in ascertaining the research elements and the process with the help of which the analysis would be able to give out the desired end result of the research (Breevaart et al., 2016). There are four kinds of philosophies that can be used by the researcher and they are pragmatism, realism, positivism and interpretivism. In this manner, the researcher in order to make use of the most effective paradigm has looked to select the positivism  philosophy as the analysis that would be done would be based and reliant on the use of several scientific tools and processes. This would assist the researcher in discovering the numerous elements of the alterations in the research along with the variables and the constants that constitutes of the research elements.

Literature Review

The approach refers to the extensive use of the models and the structures that are available to the researchers to make use of in order to collect the data and these models, structures and theories are the basis on which the researcher would gather precise data for the concerned topic. There are two sorts of approaches that the researcher can be utilised and they are deductive and inductive (Belias, & Koustelios 2014). However, as this research would be based on the secondary data, the researcher would be making use of theories and models that have already been used by some other researcher and therefore the researcher has decided to make use of the deductive approach with the help of which researcher can assess numerous articles and journals in order to bring out any relevant information that would be useful for the development of the results relating to the impact of leadership on the organizational performance.

The design tries to highlight the aspect on the basis of which the data would be collected and the analysis of the data would be done. The aspect in relation which the analysis would be done is dependent on the topic. There are three designs that are available to the researcher and they are inclusive of the descriptive, exploraoitry and explanatory research design (Dubey et al., 2015). It is known that the topic of the research relates to the understanding of the impact of leadership on organizational performance and therefore the researcher has chosen explanatory design in order to ascertain the cause and effect relationship with the help of the explanation of the probable results can be attained. The cause and effect relationship would be very useful in gaining an understanding of the impact of leadership on the performance of the companies and therefore this design is ideally suited for this paper.

The gathering of the data is vital in order to assess the results with respect to which this research has been undertaken. The researcher in this paper has chosen secondary data and therefore data available from several sources would be taken into account in order to undertake the analysis process that is essential for this paper. The researcher has selected organizational performance to be the dependent variable and accordingly has selected leadership to the independent variable within which key performance indicators, strategic business plans and sources of management practices and knowledge have been considered to be the variables over which the analysis would be undertaken. The data related to these variables have been collected from several sources and specifically from Australian Bureau of Statisitcs (ABS) and data has been related to the manufacturing industries operational in Australia in order to have an idea about leadership in the manufacturing industries having an impact on their organizational performance. The data has been based on the percentage of the contributions provided on these elements and the data is for the time period of one year (2015-16).  

Organizational Performance

The analysis of the data with the help of Excel Spreadsheet software with the help of which the correlation and regression analysis of the obtained data has been done in order to have an extensive understanding of the leadership impact on the performance of the organizations.  

An extensive plan has been constructed with the help of which steps can be ascertained in order to take care of the ethics of the research and thereby the validity of the research can be determined (Colbert et al., 2014). The researcher has maintained the codes of conduct and ethics and therefore all the data has been collected from valid and precise sources especially from the government websites in order to have an extensive idea that the result attained is true and authentic.

This section of the paper would look to highlight and evaluate the data that has been taken into consideration and this data would undergo extensive statistical analysis in order to provide an idea related to the impact of leadership on the organizational performance of manufacturing industries in Australia over a time period of 2015-16. The analysis would be done with the help of correlation analysis and regression analysis with the help of which the overall impact can be understood in an effective manner.

The correlation analysis that has been undertaken has been done by analysing the correlation of all the independent variables and thereafter correlation of the independent variables have been done with the dependent variable. The results that have been obtained signifies the fact that strategic plans and policies of the business has a positive and strong relationship with the sources of management practices and knowledge as the value is very close to 1. On the other hand, key performance indicator in the same way has strong and positive correlation between sources of management practices and knowledge and strategic plans and business as the outcome that has been attained has been close to 1 (Business Indicators – Australian Bureau of Statistics. 2018).

The correlation analysis that has been done with the dependent variable and the independent variables explains the fact that the dependent variable has negative correlation with the independent variables and therefore explaining that there are no significant relationships among the two. The correlation analysis therefore signifies the fact that the leadership based on the business plans and strategies, key performance indicators and sources of management practices and knowledge does not have an impact on the organizational performance of the manufacturing companies in Australia.

The regression analysis has been done based on the tables that have been provided below:

The regression statistics that have been prepared on the basis of the selected variables explains the fact that R Square value has been 28% and the value is higher than adjusted R Square value of 25.7% and this explains that there are no significant relationships among the dependent and the independent variables and none of the independent variables have significance with the dependent variable (Business Indicators – Australian Bureau of Statistics. 2018).

The results that have been obtained explains the fact that the F-value is very much high as the value is more than 0.05 and therefore explaining that no significance is present between the dependent and the independent variables.

The results indicate that out of the three independent variables sources of management practices and knowledge has a negative relationship with organizational performance as one unit change in the sources of the management practices and knowledge would lead to -0.218% change in the organizational performance, while the other two would have very low level of impact on the organizational performance.

The normality probability plot has explained the fact that the results that have been obtained are not stable as there are variances in the plots and thereby explaining the fact that the dependent variable does not have significance with the independent variables.

Conclusion

The results that have been observed from this paper has been able to explain the fact that leadership in accordance to variables that have been taken into consideration have negative or no significant overall impact on the organizational performance on the manufacturing industries in Australia as sources of management practices and knowledge have negative impact and on the other hand the other two variables have very less impact on organizational performance. Hence, the results that have been obtained has been able to address the objectives of the research as it is seen that the results attained explains the fact that sources of management practices and knowledge have negative impact on organizational performance, while strategic plans and business and key performance indicators have low or no impact on the organizational performance in manufacturing companies in Australia.

The recommendation that can be given from the analysis that has been attained from the paper has been that impact of leadership on the organizational performance can be analysed in a better way by selecting several other variables like the quality of the services of the leaders, communication skills and quality of the decision making process as taking these variables would lead to better and effective results. It is even recommended to undertake research by considering a span of years in order to have a result that could be able to answer the topic in a much more effective way.

The limitations that are related to this paper have been the shortage of time and furthermore considering only three variables and a single year span. The use of numerous variables like quality of the services of the leaders, communication skills and quality of the decision making process and a larger span with adequate time would have provided results that would be better and effective.  

There are scope of future work on this paper because of the fact with time there would be several changes in the market structure as well the style of leadership and therefore assessment of the same in a future course of time would provide different results so that comparison with the current result can be made in order to realize the changes that have taken place.

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