Leading and Managing People

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However, after certain period, when the sales figures were stable for months with a good profit margin, and when the CEO & CFO jointly decided to shoot the revenues and profits up by 30% in the subsequent month, top management took the transactional leadership approach and decided to make some rotations and switched high performing employees from one department to another, in order them to learn the new tasks and gain some knowledge about that field and perform the same way but this had a very negative impact on the companies change process. Employees were unable to adapt the changes set by the leaders and the communication level between different departments tend to fall. People were being directed towards the achievement of organisations objectives and moreover, they followed the fixed decision making pyramid set by the organisations senior management, which every new employee had to follow. All the bold decisions that were made by the top management to boost the revenues and the profits had an impact on the performance of the employees which demotivated them towards the work and developed them with the feeling of frustration and negativity towards the organisation. Therefore, it directly had an impact on the organisational goal.

Conclusion:

Leadership is all about Inspiring others to change, connect with the disconnected, emotional ties, support managers, learn from failures and encouraging innovation (Hodges, J., 2016). To sum up, it can be said that leader should have an expert knowledge about the change process that’s happening within the organisation and should have the right attitude and intelligence to work with the subordinates. Thus, it can be concluded that there are many challenges associated while making changes in an organisation. Therefore, it is important for a leader, to combine transformational and transactional approaches of leadership for an effective result and better output among the employees and success of an organisation towards the achievement of its goal.

References:

Aguirre, .D. & Alpern, .M. (2014) “10 Principles of Leading Change Management”, Issue 75, http://www.strategy-business.com/article/00255?gko=9d35b

Beer M, Nohria N (2000), “Cracking the Code of Change”, https://hbr.org/2000/05/cracking-the-code-of-change, Harvard Business Review 78, no. 3, Pages:131-142.

Hodges, J. (2016) Managing and Leading People through Organisational Change, London: Kogan Page

Kotter, .J.P. (2001), “What leaders really do”, Harvard Business Review, Vol :79, Issue: 11, Pages : 85-99.

Kreitner, R., Kinicki, A., Buelens, M. (2002) (2nd European Edition) Organisational Behaviour, New York: Mc Graw Hills.

Northhouse, P. (2016) (7th edition) Leadership: Theory and Practice, London: Sage.

Plowman, D.A, Solansky, S, Beck, T.E, et al.(2007), The role of leadership in emergent, self-organization, Leadership Quarterly, http://hewhoenters.pbworks.com/w/file/fetch/71979131/University%20Nebraska%20Lincoln%20Self%20Organizing%20Leadership.pdf, Vol: 18, Issue: 4, Pages: 341-356

Robbins, S.P, Judge, T.A, Campbell, T.T. (2010) (13th edition) Inspirational Approaches to Leadership, Organisational Behaviour, Essex: Pearson.