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This assessment assesses how well you can do the following (as outlined in the module specification):
Enhance and apply planning, organising, decision-making and time management skills appropriate for use in an organisational context. 
Experiment and develop personal initiative and responsibility in undertaking complex investigations in the solving of organisational problems and issues. 
Critically analyse and apply key ideas and concepts via comprehensive research relevant both to the subject area and to professional practice in the field.
Use terminology associated with the subject area accurately and in a way, which demonstrates sophisticated knowledge and understanding.
Develop and enhance both individually and collaboratively effective written and oral communication skills for both specialist and non-specialist audiences.

Change Management Models

In the 21st century, the organisations are looking for more opportunities and are going global for the purpose. There are different models which helps the organisations of today to be structured and to know that how they should operate. The organisations of today are challenged by diversity in many areas. There is diversity in the workforce of the companies and also in the population of customers. The markets under globalisation and international competition are also supporting diversity and are required to be managed internally and externally.  As per Kreitz (2007), there are many specialists which keep their view that diversity at the workplace, in any sense should be taken as an opportunity to strive in the current global business environment.  But to take a competitive advantage of such diversity, the leaders and the managers have to redefine the management and leadership. It requires good strategies, effective communication, commitment and proper structure of the organisation which creates and manages diversity in the organisations. Also, some practices are to be adopted which helps in managing diversity.

This report has been prepared in order to discuss the management and leadership of change in the organisations of 21st century. Also, it will suggest that how the best practices adopted by the leaders will optimise the approaches of diversity within the organisations which operates in different nations. The report will include the evaluation of the models of change and the theories of leadership, motivation and change management in the cross cultural context. Different approaches will be discussed in the professional and ethical term for the organisations which help it in getting success by the executives who are working with the multinational firms. It also includes the approaches like planning, decision making, organising and different management skills which makes it appropriate and suitable for the leaders to manage cross cultural diversity in the organisations.

Today, most of the managers in the organisations need to deal with the different government regulations, developments in technology, diverse workforce and the customers. The organisations are need to take a change analysis in a year to find out how much it is needed and how it can be dealt effectively. The organisations do not succeed every time they apply the change. They fail and face problems, take out solutions and then successfully implement the changes (Kotter & Schlesinger, 2008).

There are many driving forces which demands change in the organisation. These forces can be external as well as internal and demands planning in order to bring an action. The external drivers of change includes the factors like political, economic, social, technological, legal and environmental factors which demands change in the functions, practices and operations of the organisation.  The internal drivers include the current practices, operations and need for cutting the costs. Also, these drivers includes the situations like appointment of new leader, takeover or mergers, need of improvement in the quality of products and services of goods, etc. which results in the change in the structure, processes and strategies of the company (Todnem, 2005).

Lewin’s model of change

Change is very significant for the organisations in this highly competitive business environment. There are various approaches, models or theories of leadership, motivation and change management which helps in their effective implementation in the internal and cross cultural context in the organisations (Cameron and Green, 2015). These models of change help the managers to understand the change and guide the teams to pass through the transformation easily. These approaches and models are discussed below:

This model is proposed by the psychologist Kurt Lewin who believed that people are used to the comfort levels they live in and they try that they stay in their comfort zones.  The theory works in all the businesses regardless of the size of the business and industry. The theory was given in the year 1947 but it is still relevant to the present world situations. The theory focuses on the factors which influence the change in people and there are three stages which makes the change successful in the organisations. These three stages are Unfreeze, Change and Refreeze (Hayes, 2014). These stages are discussed below and the example of Google Inc. can be taken to explain the theory with a practical situation. For example, Google in its days of phenomenal success in the year 2000 wanted to implement a change of cultural diversification. At this time, it adopted the model of Kurt Lewin in which it communicated to its employees and kept them updated about the change.

Unfreezing: This is one of the most important stages to understand the changes needed to be undertaken. This stage shows that the organisation should get ready to change. It tells it employees that they should get out of the comfort zone. It is about preparing the team for the change (Calder, 2013). In the case of Google, it gave training to the employees to deal with the cultural diversity, thoughts and background. The company also initiated stress management to make employees satisfied.

Transition: this is the phase where the actual change takes place. Change is not a onetime process but it is actually a process which takes time to happen. It is a journey of the employees towards a new change in the company. Here, the people of Google learnt about the change and understood it. The management provided the support in the form of training and coaching which helped them to adapt to change.

Refreeze: this is the last phase of change where the stability is gained once the change is done and accepted by the employees. It is about making the people comfortable after the changes are made in the organisation. Google rewarded its employees for the support and for the desired behaviour. Also, the company conducted staff surveys in which the moral of the employees was analysed and the actions were taken accordingly. This model suggests that it is the best model to bring changes in the organisation. 

This model is useful for the organisations because it makes the employees understand the process of change easily. With each phase and step of the process, the change becomes easier and the people get to deal with the process in a better way (Khatri & Gulati, 2010).

McKinsey Seven Step model

The model is even criticised by some of the practitioners. It is often said that the model is out dated and not useful in today’s organisational environment. The model is appropriate only for the small scale businesses and the ones which takes change initiatives easily (Shirey, 2013).

The McKinsey 7 S framework is the model which works on holistic approach which ensures harmony in all the parts of the organisation. The model was developed in 1980 by Tom Peters and Robert Waterman which were two consultants working in the Consultancy firm of McKinsey & Company. The model contains 7 elements which are needed to be aligned in the organisation’s practices. These 7 elements are categorised as Hard and Soft elements. The hard elements are Strategy, Structure and Systems and the Soft elements are Shared values, Skills, Style and Staff (Hossan, 2015).

The hard elements are much easier for the organisation to recognise and identify and the management can influence these elements directly. These flow through formal lines and are easily recognisable (Lunenberg, 2010). On the other hand, the soft elements are not easily identifiable and are not tangible. All these elements influence each other and work together. These elements are described below in the table:

Elements

Description

Strategy

It is the plan which is made to have competitive advantage over others in the industry.

Structure

It is the basic structure of the organisation which shows how everyone is related to each other.

Systems

These are the practices which are followed by the employees to get the work done in routine activities.

Shared values

These are the core values of the company which are followed to maintain corporate culture.

Style

It shows the style of leadership adopted to carry on the functions.

Staff

This shows the normal characteristics of staff and their capabilities

Skills

It shows the competencies of the employees to work in the company.

The model is effectively used in the companies and helps them to achieve their goals and objectives. It is believed that this theory is used by the companies by using all these seven elements by aligning them and using them mutually to identify the needs of the company and what is required during the period of change. This model uses all the elements to handle all the type of change whether it is restructuring, new processes or change of leadership. This model helps in analysing the current situation and the proposed situation so that the gaps can be identified. After finding the gap, the elements are adjusted as per the need and to ensure that the organisation works well. It is a best model to brainstorm in 7 steps.

For example, British Airways wanted to restructure its entire organisation so that the company can be updated about the upcoming change. They chose honesty to be maintained with its employees. They instructed their employees and inspired them to adopt the change.  The company aligned all the seven elements of the model and encouraged their employees to adopt new roles for the betterment of the company. Proper strategies are made and the values are shared by the effective style of leadership which helps company in implementing the change effectively.

The critics of these models suggest that these theories fail to recognize the human factor and also ignore the reality. The critics say that effective leadership is important to implement these models and to form the guidelines, communicating and empowering the employees so that the new and improved culture of the organisation can be build (Hossan, 2015).

Leadership is a quality which leads a group of people. It is a responsibility which aims at guiding and influencing a group of people to achieve a common goal. Leadership contains many theories which help in distinguishing the leaders from one another. There are different types of leaders which influence people by one way or other. Some of the important theories are discussed here which supports change management in the organisation in the international context and makes it easy for the companies to manage diversity in the organisations in an ethical and professional way (Lowder, 2009).

According to Bolden, et al. (2003), transformational leadership is a form of leadership in which there is a relationship of mutual stimulation and leaders become the moral agents for the people in the group. It happens when one or more people in a group engage with others and raise motivation to bring a change. It can also be termed as relationship theory. It establishes the relationships between the followers and the leader. A connection is created where the leader motivates its followers and possesses certain qualities to do the same. A transformational leader has qualities like confidence, clear values, straightforward and has clear vision. These leaders have high ethical standards which help in bringing the change in the organisation in a more simplistic way. To achieve significant change and results in the process of change, a leader should have clear insights on how to shape, alter or modify the practices (Belias & Koustelios, 2014).

This theory can be seen in practice in many of the present business organisations. An example can be taken of Steve Jobs, the founder of Apple Inc. who proved himself as a great transformational leader. He increased the confidence of the followers and heightened their values in the organisation.  He also encouraged the behavioural changes in the followers and motivated others for the professional as well as personal achievement. He was more oriented towards the long term goals and focused more on achieving the mission through proper strategies. Here, he believed in developing new talent and challenged them to achieve goals through values and ethics. This is how he was able to build up a strong brand which is now among the top brands of the world.  There are many styles of transformational leadership which a leader can follow like idealised behaviours, motivation and inspiration, coaching and development and Respect and trust. This form of leadership is a process in which the actions are taken by the leaders so that the awareness is created for what is needed and the employees go beyond their limits to provide their best to the organisation to achieve the common goal. These leaders are kind of proactive which not just enhance the performance but also brings development in the employees. Steve Jobs gave the direction and set an example for his followers, Communicated with them and aligned various resources so that he can bring best out from the people (Ahmed, Nawaz & Khan, 2016).

This form of leadership showcases the relationship between the leaders and the followers. For a transactional leader human relations are like a chain of transactions and it all depends on rewards, penalties and economic exchanges taking place between the leaders and the followers. Here, the example of Bill gates can be taken who is the co- founder of Microsoft is considered as the transactional leader as he lead the organisation with power and passion and ordered its followers that what needs to be done. If the followers abide by the orders and complete the given tasks efficiently, they are rewarded by the leaders and vice versa when they are not able to complete the given orders (Northouse, 2015). This is also known as managerial leadership because here the main elements which plays key role are administration, organisation and performance. Here rules and regulation plays the main part. When the followers are not able to follow the orders they are punished for the unsatisfied outcomes (Sultana, Darun & Yao, 2015).

This style is no doubt easy to implement as it is very suitable to provide directions to the followers. Here, the need of training to the leaders is minimum and it is very easy for them to communicate that the followers need to follow the orders else they will get punished. There is a well-defined chain of command which makes easy to accomplish the objectives of the organisation. Here, the leaders treat their followers as the subordinates and treat them like that. This theory involves passion but does not involve much of the relationships between the superiors and subordinates. A proper chain of commands is followed.  This somehow creates negative environment because it creates frustration and insecurity in the followers (McCleskey, 2014).

When both the theories are compared, it becomes clear that transformational leaders believe in connecting with the followers. They discuss about their goals and ideas and takes decisions with the consent of all but transactional leaders just take followers as the subordinates which are there to follow the ideas of the leaders. These two leadership styles can also be compared by the McGregor’s theory X and Y. here, transactional leadership can be taken as theory X and transformational theory can be taken as theory Y. Theory X suggests that the ;leaders rule their subordinates and the rewards and punishments are given in case of good or bad performance. Theory Y suggests that the leaders supports its employees and motivates tem to work harder. The followers are lead with confidence and it helps them in giving better results. This helps in managing the cross cultural changes in the organisation effectively (Daft, 2014).

For bringing changes in the organisation of today’s global environment, the blend of transactional leadership model and transformational leadership model works best. Decades back, the followers were treated as the subordinates which needs to follow whatever the boss or leaders ask them to but now the followers are given enough independence to work for the common goal and the self-interest and personal development of the employees is also considered equally (Chhokar, Brodbeck and House, 2013). This is how the leaders like Bill gates and Steve Jobs achieved their goals and success.

Motivation can be defined as the willingness among the employees to provide high level of efforts in the organisation. With the rapid growth in globalisation, the companies are expanding their operations and are dealing with diversity in various senses by operating in different countries. A company which operates in different countries needs to motivate their employees so that they can easily adapt to the culture and values of the organisation and can provide high output to the company. Motivation plays a key role in it and also solves the cross cultural issues of the organisation. In the today’s competitive environment and in a period where the change is constant, motivation is significant for the people to keep them engaged and to fully utilise their talent and abilities (Abbah, 2014).

To implement new policies, motivation is essential. So communication is required and the opportunities should be provided to the employees to prove themselves. There are some motivational theories which show how the employees can be motivated for adapting the change and to support the overall objectives and aims of the organisation. A place full of motivation can bring and implement the changes easily with the support of everyone (Gerhart and Fang, 2015).

There is a two factor theory given by Fredrick Herzberg where it is discussed that two types of factors are there which satisfies or dissatisfies the employees. Herzberg believes that there are Hygiene factors and motivators. Hygiene factors are those which can cause dissatisfaction among the workers at the workplace. For e.g. the policies of the company, working conditions, salary or security at the job. Motivators are those factors which are satisfiers. They increase employee motivation which arises from the work conditions or which are intrinsic. These factors include growth opportunities, job satisfaction, responsibilities and achievement (Manzoor, 2012).

For e.g.  The companies like Toyota when employed the production systems like Kaplan, needed to train their employees for adapting the change. They used the Herzberg’s two factor theory and used motivators to motivate the employees through good training and development opportunities and by providing job satisfaction to them by rewards and good pay.

This theory can be used to analyse the demotivation of workers in the organisation. As per Herzberg, these hygiene factors and motivators help to arrange three methods which help in motivating the employees. These methods include Job Enlargement, Job rotation and Job enrichment.  This brings intrinsic motivation in the employees.  This theory is also criticized by many of the behaviourists that it can lead to the lower productivity or outputs in the business (Cummings and Worley, 2014).

Best practices to handle the cross cultural environment and diversity in the organisations like Toyota is to include the commitment from the leaders, strategic plan and high performance from the employees by providing motivation to them. Diversity training is needed to be given to the employees which educate staff about the opportunities provided by diversity to them to grow in the corporate world (Alvesson and Sveningsson, 2015).

Conclusion

It can be concluded that Diversity is a concept which shows the range of qualities in people. Human resources face a serious challenge when it comes to adopting change in the organisations. In the global economy, change is evident. Change is required in every sphere of the business when the company operates on a multinational level. This report shows that how different change management theories and leadership theories can be applied in the present corporate world in order to face and adapt to the changes effectively. It is clear from the report that effective leadership, support and communication are essential to implement changes in the company. It helps in increasing the potential and competitiveness of the market and also helps the business in taking initiatives which cultivates success in the organisation. These theories handle the external and internal diversity in the companies and are taken as opportunities to survive in the highly competitive environment.

References

Abbah, M T 2014, ‘Employee Motivation: The Key to Effective Organizational Management in Nigeria’, IOSR Journal of Business and Management. Volume 16, Issue 4. Ver. I (Apr. 2014), PP 01-08.

Ahmed, Z, Nawaz, A & Khan, I U 2016, ‘Leadership Theories and Styles: A Literature Review’, Journal of Resources Development and Management.

Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change work in progress. Routledge.

Amanchukwu, R N, Stanley, G J & Ololube, N P 2015, ‘A Review of Leadership Theories, Principles and Styles and Their Relevance to Educational Management’, Management 2015, 5(1): 6-14.

Belias, D & Koustelios, A 2014, ‘The Impact of Leadership and Change Management Strategy on Organizational Culture’, European Scientific Journal, March 2014 edition vol.10, No.7.

Bolden, R, Gosling, J, Marturano, A and Dennison, P 2003, ‘A Review Of Leadership Theory And Competency Frameworks’, Centre For Leadership Studies.

Calder, A M 2013, ‘Organizational Change: Models for Successfully Implementing Change’, Undergraduate Honors Theses. Paper 144.

Cameron, E and Green, M 2015, Making sense of change management: A complete guide to the models, tools and techniques of organizational change, Kogan Page Publishers.

Chhokar, J S, Brodbeck, F C and House, R J eds. 2013, Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies, Routledge.

Cummings, T G and Worley, C G 2014. Organization development and change,  Cengage learning.

Daft, R L 2014, The leadership experience, Cengage Learning.

Gerhart, B and Fang, M 2015, ‘Pay, intrinsic motivation, extrinsic motivation, performance, and creativity in the workplace: Revisiting long-held beliefs’,  Annu. Rev. Organ. Psychol. Organ. Behav., 2(1), pp.489-521.

Hayes, J 2014, The theory and practice of change management, Palgrave Macmillan.

Hossan, C 2015, ‘Applicability of Lewin’s Change Management Theory in Australian Local Government’, International Journal of Business and Management; Vol. 10, No. 6.

Jurevicius, O 2013, ‘McKinsey 7s Model’, Strategic Management Insight.

Khatri, P & Gulati, K 2010, ‘Implanting Change in Organization Successfully’, Asian Journal of Management Research.

Kotter, J P & Schlesinger, L A 2008, ‘Choosing Strategies for Change’, Harvard Business Review.

Kreitz, P A 2007, ‘Best Practices for Managing Organizational Diversity’, Stanford Linear Accelerator Center, Stanford University.

Lowder, T M 2009, ‘The Best Leadership Model for Organizational Change Management: Transformational Verses Servant Leadership’.

Lunenberg, F C 2010, ‘Approaches to Managing Organizational Change ‘, International Journal of Scholarly Academic Intellectual Diversity.

Manzoor, Q 2012, ‘Impact of Employees Motivation on Organizational Effectiveness’, Business Management and Strategy.

McCleskey, J A 2014, ‘Situational, Transformational, and Transactional Leadership and Leadership Development’, Journal of Business Studies Quarterly, Volume 5, Number 4.

Northouse, P G 2015, Leadership: Theory and practice, Sage publications.

Shirey, M R, 2013, ‘Lewin’s theory of planned change as a strategic resource’, Journal of Nursing Administration, 43(2), pp.69-72.

Sultana, U S, Darun, M R & Yao, L 2015, ‘Transactional Or Transformational Leadership: Which Works Best For Now?’, International Journal of Industrial Management (IJIM).

Todnem By, R 2005, ‘Organisational change management: A critical review’, Journal of change management, 5(4), pp.369-380.

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