Negotiation and Influencing skills in resistance in change management
Discuss about the Leadership in Change Management for United Products.
The purpose of this report is to create a report on the basis of case study explaining the issues faced by the management of the company United Products and how the leader of the organization managed it. The report examines the capabilities of a leader to help the organization to satisfy the internal and external stakeholders for the betterment of the organization. More details about the report are discussed below:
- The three forms of resistance identified in the case of United Products are discussed below:
- The management of the company United Products faced high degree of resistance on the part of the employees while making changes at workplace. The initial form of resistance that the employees showed in the organization is the emotional resistance to change. The top level management of the company changed the CEO of United Products that emotionally challenged the employees due to which they resisted to initiate the actions according to the decisions of the new CEO Jack Nickolson. This aspect was at the initial level expressed by initial resistance to work hard at workplace and then it was resulted in increasing staff turnover at workplace (Westerberg, & Tafvelin, 2014).
- Another form of resistance of change is the dysfunctional resistance under which the employees avoided dealing with the urgent pressure and the issues. They also declined the work that was needed to be done in order to increase the productivity. This aspect was expressed by the employee by leaving the organization and increase staff turnover. Due to dissatisfaction the employees started to decrease the productivity of their work.
- The stakeholders of the company initiated sociological resistance under which the employees along with communities resisted to change due to lack of trust issues. This aspect hampered the overall performance of the organization (Bolman, & Deal, 2017).
- Three remedial actions taken by the management to pacify the staff are discussed below:
- The management of the company initiated the technique of competitive intelligence under which they spied on the competitors along with the union. This helped the company to gained knowledge about the activities that other are doing to satisfy the employees present in the industry.
- Further, the management also aimed to increase the trust level of the employees by providing those perks and benefits on the course of job. This aspect also increased the satisfaction level of the employees. Increase in trust level connected the employees with the activities of organization which decreased staff turnover (Haslam, Van Knippenberg, Platow, & Ellemers, 2014).
- Lastly, the organization reduced the work load and tension of the employees that ultimately made them stay in the United Products and work with them as well.
- Four change management skills demonstrated by CEO Jack Nickolson through the case study are:
- Trust-building
- Competitive Intelligence
- Organization of work
- Personal Resilience
- The management of the company United Products handled the situation with the external stakeholders of the in the following ways:
- The management of the company understood the significance of the external stakeholders of the company in respect to which they professionally handled the situation in such a way that the interest level of the stakeholders is subsequently increased. The management of the company formed various methods to evaluate the performance of the employees and guide them to work better. The management also informed the stakeholder with the growth of the company and upcoming projects that can increase their profits margins as well. The company also trained the employees in initiating effective communication with the external stakeholders of the organization and addressing their problems and solving them effectively (Perko, Kinnunen, Tolvanen, & Feldt, 2016).
- As the products served by the company includes the use of chemical that contribute in depleting the environment, resulting to which, the organization initiated adequate corporate social responsibility that helped them to maintain the health of the nature. The organization replaced the use of chemicals with some other products and they also stated disposing the waste material at landfills so that they can end pollution caused by them. Further, the organization also aimed to comply with all the societal norms and rules presented in the society resulting to which the satisfaction level of the community increased. United Products kept all the external stakeholders interested in the activities of the company (Leroy, Anseel, Gardner, & Sels, 2015).
- Social expectations refer to the aspects that increase the satisfaction level of the people living in the society and improve the nature as well. It is important for the organization to comply with the social norms in order to flow their activities adequately in the target market. United Products Company aimed to fulfill the social expectations of the people of the company by initiating the program of greener and cleaner earth. This aspect helped the company to comply with the environmental expectations along with which they also initiated the societal norms initiated in the society (Cummings, et. al., 2010).
- As discussed in the case study that the case that the company United Products is a part of the Asian culture however the company is occupied with people coming from different parts of the world. So, the organization adequately complied with the domestic culture norms along with the culture of expatriate employees coming from different part of the world. The organization initiated cross culture communication activities that helped the internal as well as external stakeholders to communicate with each other and understand different cultures as well. As the company has diversified employees so they welcome employees with diverse language and culture as well (Verbeke, Bagozzi, & Belschak, 2016).
- The process of diversity influences the work of team as well as individual members and their employing organizations. The aspects of diversity and culture help the organization to understand the importance of diversity and different cultures present with them. An organization can successfully grow in the target market by diversifying their scope of activity and adopting different cultures in the target market. With the use of such aspects only the organization can successfully expand their business in different markets. Also, it should be noted that expansion strategies are always prosperous for the stakeholders of the company as it provides better income for them (Demirtas, & Akdogan, 2015).
Apart from that, the persuasion methodologies with the help of which the organization earn amiable outcome in the eyes of external stakeholders are discussed below:
- Moral Appeal: The organization United Products initiated the persuasion methodology under which the made a moral appeal publically to all the people preset in the society with an aim to help them to understand negative impacts initiated through their activities.
- Emphasizing potential loss: As the company lost its potential employees which ia major loss for them, so they addressed this loss in the society. Resulting to which, they gained acceptance in the target market because they understood the problem present within them and are trying to rectify it without implementing any wrong act (Caniëls, Semeijn, & Renders, 2018).
- Rewards and gifting: The process of reward and gifting helped the organization to maintain fixed relationship with competitors and other stakeholders present in the society.
All the above mention three persuasion skills helped the company to effectively communicate with people present in the society and satisfy them.
- As discussed in the (9) paragraph of the case study that Jack has the capability of being competitively intelligent resulting to which adequately take decisions for the betterment of the organization and the society as well. He adequately understood the requirements of the employees and the local community from the company in response to which he adequately initiated measure to satisfy them (Bakhri, Modding, Gani, & Lamo, 2015). Further, four communication skills used by Jack are discussed below:
- Leadership: Leadership is the basic skill that is required by the every leader present in the society in order initiate the decision properly. Similarly, Jack also adequately made use of his leadership skills with the help of which the insisted the employees to work in order to increase productivity for organization (6). He also trained the leader and communicated his motive to all the employees present in the organization so that they can efficiently work to achieve productivity at workplace (8). He also trained supervisors of company so that they can hold on productivity and quality in the activities of the company (6) (Regan, Laschinger, & Wong, 2016).
- Attentive: Attentiveness is a very important skill that is required by the leader of every organization in order to successfully understand the needs of the employees and work accordingly. Jack in the organization demonstrated the skills of attentiveness. He adequately increased the productivity of the whole organization but later he realized that this pressure is increase the staff turnover rate at workplace. In regards to which he adequately communicated with the employees and initiated activities to increase their satisfaction level as well (Singer, 2018). His attentiveness towards the organization helped him to know about the progress and failures of the organization effectively (10).
- Understanding: It should be noted that understanding is the most important communication skills that should be initiated by the leader of the organization. Jack adequately understood the requirements of the organization and employees in response to which he initiated the activities to increase the productivity and decrease the leisure of the employees (Currie, Gormley, Roche, & Teague, 2017).
- Motivating: lastly, motivation of the leader of the organization to initiate the change management program. So, Jack motivated the employees of the company and trained them in such a way that the welcomed the change management program and supported the organization increasing its productivity (Cascio, 2018).
Both the leaders of United Products are diverse in nature and the working style of both the leaders is entirely different due to which the employees resisted at the beginning when the company was taken over and Jack became the CEO. Contrasting the above mentioned skills of John, it should be noted that both the leaders were likable in their individual skills. Like, John was good in satisfying the expectations of the employees and the staff turnover rate whereas Jack is good in increasing the productivity of the organization. John lacked competitive knowledge and growth skills while Jack is lacking integrity and increasing satisfaction of staff skills (McKenzie, 2015).
Leader’s name |
Organization |
Justification |
James Hackett |
Ford Motors |
· Ford Motors is present in the field on automobile and automobile is one of the fields that require regular use of innovation. So, change is the basic requirement of this company as well. · Ford Motor is one of the most competitive company and the CEO of the organization is not afraid to make changes as workplace as well (Dobbs, 2016). |
Elon Musk |
Tesla |
· Tesla is regarded as one of the most innovative organization that provides electronic cars in the market. · The CEO of the company is determined to take care of the nature while providing competitive advantage to the company as well. The activities of CEO of Tesla somehow related to the activities of the CEO of United Products (Morris, 2017). |
Similarity and differences between the leadership styles of the leader and the change implemented by them
James Hackett |
Elon Musk |
Similarity/ Differences |
This CEO of the company Ford Motors is determined to make use of innovation in activities of the business. He believes that innovation is the best way to initiate competitive advantage for the organization of the employees and increase productivity as well (Wiesbaden, 2016). The leader of the company works in such a way so as to maintain a reputable image of the company in the target market. |
Tesla Inc. in known for innovating the business in such a way that the organization gains benefits in the target market. The company is also concerned for providing sustainable activities to the nature. In respect to which most of the activities of the company help the employees to provide benefits to the environment. The innovation of the company is implemented in such a way that it does not harm the nature instead uplift the community (Hess, & Andiola, 2017). |
Similarity in innovating business |
The leader of Ford Motors has the basic to sustain the activities of the business in such a way that the gain sufficient profits in the target market. Most of the activities are initiated by the supervisors in such a way that the organization earns reputation in the market along with optimum profits. The company Ford Motors is consistently innovating their products and services and upgrading it to the better versions as well. |
The leader of Tesla Inc. has this aim to earn profits and increase it for the organization but not at the cost of harming the nature. The profit earning motive and corporate sustainable responsibility of the company are two most prime objectives of the company that goes hand in hand. So, the organization does not levy the environmental sustainable activities in order to attain maximum profits for the employees. |
Difference in priority of business functions |
James Hackett is very smart in taking decision for the organization he understands the requirements of the business and society in response to which the take of nature by earning profits as well. When the people of the country faced crisis due the hurricane at that time he provided cars affected people at discounted rates that showed his commitment towards the society. However, still he aimed to innovate the business by using virtual reality and other techniques. The leadership skill of James is more transformational in the society. |
The CEO of the company Tesla is more concerned towards benefitting the nature by initiating sustainable activities in the market. The major aim to produce e-cars is to reduce the environmental effect. The leadership skill of Elon Musk is more like democratic as it takes care of interest of all people aligned with the business. |
Difference in leadership styles |
James initiated the change management program by developing self-driving cars. Self-driving cars is one of the biggest innovation in the automobile industry and the company adequately adopted the change to implement such technology and provide it to people worldwide. |
Elon Musk always aims to create products that assist the people in initiating activities for the betterment of their life. He initiated technology driven payment method (PayPal). It helped people transact easily however his team faced a tough time in adopting this change |
Difference in change management |
- Evaluation of the success of the changes between the two business leaders
James Hackett |
Elon Musk |
Success/ Failure |
He created opportunities for the people and increased the flexibility at workplace as well. |
He aimed to flatten the organizational structure for the benefit of the organization. This will help the management to quickly adopt the changes at workplace. This change will help the company to improve communication and succeed in organizational mission as well as stated in memo. |
James and Elon both succeed in the respective target but in a different way as James concentrated on external stakeholder and Elon focused on internal stakeholders. |
He changed the position of the company from being in list of top best 1000 companies to top 10 companies. The leader helped the company to improve the position in terms of competitive advantage. |
As discussed above that the leader is innovative as he has introduced many software like PayPal, SpaceX, SolarCity in the business. Resulting to which the stakeholders believes that he has increased the level of conflicts for the management of Tesla (Lopez, 2014). |
Ford’s leaders succeeded by expanding their capabilities in target market. Whereas Tesla’s leader failed in communicating the innovation with the stakeholders. |
Inauguration of self-driving cars made is difficult to initiate such difficult technology driven change at workplace. This change also decreased the profit margin of the company. The leader reduced cost by $14 billion in order to invest in trucks and electric cars (Baker, 2018). |
The fact that Tesla has attained such profits and competitive advantage in the target market is due to the change management program and innovation strategies initiated by the leader of the company Tesla. |
James failed in successfully incorporating adequate technology at workplace as well as in target market. While this transformational technology helped Elon in acing in target market. |
James made use of the creative management approach to foster the different culture and welcome them in the activities of the organization as well. He also initiated a 100 days action plan that helped him to know about the good and bad related to the company and rectifies them as well (Sharif, & Huang, 2015). |
Apart from producing cars, the leader also took the challenge of producing other vehicles as well. |
Both the leaders took the advantage of resources available to them and used them wisely to attain success. |
Conclusion
Thus, in the limelight of above mentioned events the fact that should be noted is that communication and negotiation are important aspect of a leader that they portray at workplace with an aim to increase the productivity of the organization. Further, it is important for the leader to maintain the interest of internal as well as external stakeholders of the organization in order to successfully achieve the targets and keeps them interested in the companies. The above mention report successfully describes the issues present with the employees of United Products and the remedial actions taken by the leader Jack. It also explained the difference between both the leaders and persuasion methodology. Lastly, it also explained the leadership style and ethical perspective of the leader at workplace. Further, the report adequately satisfies the requirements of the assessment.
References
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