LEADERSHIP AND CHANGE

Leadership & Change

Change in our society and organizations is a widespread part and it is inescapable. The business environment for corporations are becoming more volatile. In order to develop an organization must change, the uncertainties in this unstable environment influences the companies which lead to inevitable changes constantly (Mullins, 2013). However, actions of corporations can be affected by these changes, the modification of behaviors is a obligated process for planned organizational changes (Mullins, 2013). The nature of managerial work may be affected by changing organizations. According to Crainer, many managers refuse to accept the necessity of change. Instead of being proactive, change is often reactive (Crainer, 1996). Despite the potential benefits of change, resistance for change is always there at both organizational level and individual (Mullins, 2013).

Some common excuses for individual resistance to change within corporations consists of the following:

-Selective perception

– One’s habit

-Inconvenience or loss of freedom

-Economic implications

-Security in the past

-Fear of the unknown

Some common excuses for organizational resistance against change are as follows:

-Organization culture

-Maintaining stability

-Investment in resources

-Past contracts or agreements

-Threats to power or influence

The effective management of change must be based on a distinct understanding of human behavior at work (Lawrence, 1970). Even though change is resisted in many cases, Cunningham maintains that one of the greatest myths in management is the generalization that people resist change. In fact people love changes which make things better. The most common reasons for resistance is where people feel a potential loss (Lawrence, 1970).

The successful management of change is clearly essential for continued economic performance and competitiveness. New thoughts and innovations should not be perceived as threats by members of the corporation. I would like to introduce an eight step model listed by Kotter and Cohen for successful large scale change.

Step 1 is to create a sense of urgency among relevant people;

Step 2 is to build a guiding team with the credibility, skills, connections, reputations and formal authority to provide change leadership;

Step 3 is to create visions which are sensible, clear and uplifting, and sets of strategies;

Step 4 is communicate the vision and strategy in order to induce understanding and commitment;

Step 5 Empower action and remove obstacles that stop people acting on the vision;

Step 6 is to produce short term wins that help to provide credibility, resources and momentum to the overall effort;

Step 7 is do not let up but maintain the momentum, consolidate early changes and create wave after wave of change.

Step 8 is make change stick by nurturing a new culture, and developing group norms of behavior and shared values

(Kotter and Cohen, 1996)

The main point is “there is not one type of change, and there is not a single way to approach change. Change management methodologies are only helpful if they are applicable both to the change you want to make and the environment in which you work. The approach you take to change must be tailored depending on the nature of the change you are making and the character of your organization.” (Mullins, 2013)

Constant changing process are subjected to the oil and gas Industry. The change of oil price will lead to influences to the economy and organizations and people’s life. Technology is another main character in oil and gas industry which needs changes constantly to enhance HSE requirements and to make their product more environmentally friendly. In addition, new clean energy sources stimulates the oil and gas industry for further changes. Cars running on electricity or even biofuel challenge the conventional energy source. In order to maintain dominate position in this business environment, oil and gas companies need to make sufficient changes with effective management.

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Kurt Lewin developed a change model involving three stages: unfreezing, changing and refreezing.

The model represents a very simple and practical model for understanding the change process. For Lewin, the process of change entails creating the perception that a change is needed, then moving toward the new, desired level of behavior and finally, solidifying that new behavior as the norm. The model is still widely used and serves as the basis for many modern change models.

References

Crainer, S. (1996) Key Management Ideas. London: Financial Times Pitman Publishing

Guy, G. R. (2005) Effecting Change in Business Enterprises: Current Trends in Change Management. United States: Conference Board

Jones, J., Aguirre, D. and Calderone, M. (2004) 10 Principles of Change Management. Available at: http://www.strategy-business.com/article/rr00006?gko=643d0 (Accessed: 17 June 2015)

Kotter, J. P. and Cohen (1996) Leading change. Boston, MA: Harvard Business School Press

Lawrence, P. R. (1970) ‘How to Deal with Resistance to Change’, Journal of Occupational and Environmental Medicine, 12(5),

Lewin’s 3-Stage Model of Change: Unfreezing, Changing & Refreezing – Video & Lesson Transcript (no date) Available at: http://study.com/academy/lesson/lewins-3-stage-model-of-change-unfreezing-changing-refreezing.html (Accessed: 18 June 2015)

Mckinsey&Company (2014) The irrational side of change management. Available at: http://www.mckinsey.com/insights/organization/the_irrational_side_of_change_management (Accessed: 16 June 2015)

Mullins, L. J. (2013) Management and Organisational Behaviour. Tenth edn. UK: Pearson Education Limited

Scheid, J. (2013) Three Examples of Successful Change Management Practices. Available at: http://www.brighthubpm.com/change-management/55056-examples-of-change-management-plans-that-worked/ (Accessed: 18 June 2015)

Sims, R. R. (2002) Changing the Way We Manage Change. Westport, CT: Quorum Books

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12 thoughts on “LEADERSHIP AND CHANGE

  1. The paper said, “constant changing process are subjected to the oil and gas Industry and people, especially for the top managers need give reasonable actions to deal with the changes. However, from where I stand, changing does not mean the crisis. Sometimes, the changes can be solved in their own way rather than any factitious reactions. the whole article seems discuss the importance of crisis and how to against them. i wanna see more explanations and accurate definitions about these two points.

    Liked by 1 person

    • I agree with your point of view that change does not mean crisis. But every change has its two sides effects. This piece only talks about change and leadership. But I will take a research on crisis reaction, crisis could be a change that matters a lot.

      Like

    • It is easier and time conservative of course, but some timese it could be dictatorial. The decisions made can not be ensured for the benefits of the organization, it could be the benefits of one’s own.

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  2. Change is everywhere. For a brand, we must have some core value can not be change. Sometimes customers can’t adapt change of a brand and they think it is not they like before. How could make sure business change in a right way without confusing their customers and shakeholders?

    Liked by 1 person

    • Thank you for your comments. I think managers or leaders should have the vision about whether a change is good or bad to the organizations, in addtion, a good leader should be transparent.

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  3. Your write up is very easy to understand and well organized, my personal question to you is if you are in a leadership role how do u intend to effect change without putting you employees under pressure

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    • Thank you for your comments. I think in order to generate some good result, certain amout of pressures are beneficial for my employees to get the job done more efficiently, but like I said, it all demends on the individual characteristics.

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  4. Very brillant refelection on orgnizational change, but what would you suggestions can you make for management to accept change more in a pro-active than a reactive way?

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