Change Management

Chrysler has had several distinct but very different leadership styles. Lee Iacocca, who helped Chrysler at time of near bankruptcy, was very driven to bring the company back to life. Robert Lutz, who helped reshape the corporate culture of Chrysler. Each of these leaders was able to use their own distinctive leadership styles to successfully implement change at Chrysler (See Appendix A). The Influence of Leadership on Management Practices Managers have a position of authority vested in them by the company, and their subordinates and largely do as they are told.

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Management style is transactional, in that the manager tells the subordinate what to do, and the subordinate does not do this because he or she is a blind robot, but because they have been promised a reward for doing so. Managers are paid to get things done, often within constraints of time and money. They naturally pass on this work focus to their subordinates. An interesting research finding about managers is that they tend to come from stable mom backgrounds and lead relatively normal and comfortable lives. Many organizational leaders have subordinates, but only because they are also managers.

Leaders with stronger charisma find it easier to attract people to their cause. As a part of their persuasion they typically promise transformational benefits, such that their followers will not Just receive extrinsic rewards but will somehow become better people. Crystal should follow Blue Coat Systems example by; involving its employees in the changing organization, explain why change is necessary, share the vision and reinforce individual behavior with rewards. The leaders at Crystal need to be passionate about the future of the organization (See Appendix D).

Effective people, oriented strategies, methods, and techniques support the initiative by developing a genuine enthusiasm for the proposed changes in the organization and its people. The Implementation Plan incorporates leadership, ownership and ennoblement strategies to reduce unpredictability and to realize the target benefits in individual and organizational performance. The Implementation Plan can support an endeavor as fundamental as a leadership initiative to alter the direction and culture of the organization, or a single project to implement a new system to improve a business factors is ‘ownership’ and without it; failure is guaranteed.

Working with an independent and experienced consultant who has a pragmatic understanding of leadership and management can leverage the detailed knowledge of your business into effective actions that deliver powerful results. The Management Practices Survey (MSP) is a diagnostic survey instrument designed for supervisors and managers. The survey measures employees’ perceptions of how both organizational factors and management practices are influencing performance and motivation. Individuals stubbier surveys and receive aggregated, anonymous feedback from their direct reports.

The results of the survey help individuals identify their strengths and target areas for performance improvement and development. The Factors That Contribute to a Long-Term Commitment to Change Many factors have to be considered when an organization commits to change on a permanent basis. The learning organization proactively creates, acquires, and transfers knowledge that changes behavior on the basis of new knowledge and insights. Learning organizations actively try to infuse their organizations with new ideas and information.

This is accomplished by instantly scanning external environments, hiring new talent and expertise when needed, and by devoting significant resources to train and develop their employees. They also strive to reduce structural, process, and interpersonal barriers to the sharing of information, ideas and knowledge among organizational members. For instance, any carpenter knows different Jobs require different tools. When the situation changes significantly, according to contingency thinking, a different type of organization may be appropriate.

Change can have a tremendous impact on any organization. For instance, when managers are faced with downsizing, they tend to Ochs on the immediate and practical needs that emerge at the time when staff are being let go. After all, employees need to be selected and notified, one of the most difficult tasks for any manager. Jobs responsibilities need to be shuffled, and generally the period where downsizing is occurring is very busy and emotionally taxing. When the organization is going through a down sizing process, a number of problems can occur.

The organization moves towards less risk taking and innovation. Also, destructive conflict tends to increase and internal competition for resources increase. In addition, long-term change can also cause individual staff members to devote less effort to working together and more attention to protecting themselves. The employee does not have a responsibility to manage change, the employee’s responsibility is no other than to do their best, which is different for every person and depends on a wide variety of factors.

Responsibility for managing change is with management and executives of the organization, they must manage the change in a way that employees can cope with it. The manager has a responsibility to facilitate and enable change, and to understand the situation from an objective standpoint. Increasingly the manager’s role is to interpret, communicate and enable, not to instruct and impose. Strong resistance to change is often rooted in deeply conditioned or historically reinforced feelings. Patience and tolerance are required to help people in these situations to see things differently.

Change must be planned, managed, implemented, controlled and monitored but for successful change there must be effective leadership. Leading successful change requires vision, strategy and a necessity for change. There is a distinction between management and leadership for change to be successful. Management produces orderly results which keep things working efficiently. Leadership shows the way to change using personality and skills to motivate people to work together toward a goal and develop a vision of the future.

Future Leadership Challenges Extreme challenges face both organizations and leaders when looking to motivate subordinates toward the organizational goals. Several of these challenges are highlighted through the leader-member exchange theory (ELM) and substitutes for leadership. The ELM theory on the quality of relationships between managers and subordinates as opposed to the behaviors or traits of either leaders or lowersГ?CГ,-1Г?0 (Grittier & Kicking, 2004, p. 617-618). This theory is based on the premise that leaders treat all employees equal and develop distinctive one-to-one relationships with their subordinates.

This style of leadership forms one of two types of interaction between leaders and employees; a) positive in-group exchange, which revolves around mutual trust, respect and liking and is associated with Job satisfaction, positive Job performance, goal commitment and satisfaction with leadership; and b) negative out-group exchange, which is characterized by a lack of mutual trust, respect and liking (Grittier & Kicking). The Marketing and Sales and Delivery departments of Crystal can be grouped into this out-group exchange of the ELM theory.

It is thus to the benefit of the leaders at Crystal that they try to influence subordinates to lean toward the in-group exchange. Servant leadership strategies could aid Crystal in directing subordinates toward more in-group organizational behavior. Crystal may benefit by looking at Southwest (SAW) philosophy of servant leadership. Servant leadership techniques can be seen throughout SAW. SAW contributes their immense success to maintaining an organizational culture based on servant leadership.

SAW maintains that its employees are its greatest asset and makes every effort to increase Job satisfaction and employee morale, which has been evident in the prosperity of the company (see appendix C). Even though most theories suggest that a formal leadership is necessary in organizations there are a variety of situational variables that tend to substitute for, enhance or counteract the effects of leadership. To improve leadership effectiveness these substitutes need to be identified as they can directly influence employee attitudes and Job performance.

Substitutes for leadership can be such anything from the abilities, experience, training and knowledge of the subordinate that reduces the need for the task-oriented/initiating structure of leadership to the basic satisfaction of the tasks that reduces the need for the relationship-oriented leader (Grittier & Kicking, 2004). For example, if the subordinates are experienced and knowledgeable enough and the duties are clear with good feedback no leader is necessary, the subordinates can initiate their own tasks and structures.

Crystal may have such substitutes for leadership in its organization. The leaders of Crystal need o look internally to see where they can use these substitutes to enhance rather than counteract the effects of its leadership. By benchmarking a company such as SAW where employees are encouraged to make their own decisions and are backed in those decisions by management, Crystal can create a more team-disciplined empower its employees by giving more responsibility and authority to make their own decisions within the organization.

Leadership Styles for a Given Situation Leadership styles fall under three theoretical categories: Trait and Behavioral Theories of Leadership, Behavior Styles Theory, and Situational Theories. Early in the 20th century, the prevailing belief was that leaders were born, not made. Only select individuals had inherent traits that made them successful leaders (Grittier & Kicking, 2004). Behavioral Styles Theory is a phase of leadership research that began during World War II as part of an effort to develop better military leaders.

It was an outgrowth of two events: the seeming inability of trait theory to explain leadership effectiveness and the human relations movement, an outgrowth of the Hawthorne Studies. The thrust of early behavioral leadership theory was to focus on leader behavior, instead of on personality traits. It was believed that leader behavior directly affected work group effectiveness. This led researchers to identify patterns of behavior called leadership styles that enabled leaders to effectively influence others (Grittier & Kicking, 2004).

The Ohio State Studies Researchers at Ohio State University began by generating a list of behaviors exhibited by leaders. The research concluded that consideration involves leader behavior associated with creating mutual respect or trust and focuses on a concern for group needs and desires. Initiating structure is leader behavior that organizes and defines what group embers should be doing to maximize output (Grittier & Kicking, 2004). The University of Michigan also conducted a study similar at Ohio State, this research sought to identify behavioral differences between effective and ineffective leaders.

Researchers identified two different styles of leadership: one was employee centered, the other was Job centered. These behavioral styles parallel the consideration and initiating-structure styles identified by the Ohio State group. In summarizing the results from these studies, one management expert concluded that effective leaders end to have supportive employee-centered relationships with employees, use group rather than individual methods of supervision and set high performance goals (Grittier & Kicking, 2004). Behavioral Styles Theory states that leader behavior is something that is learned.

This would imply that leaders are made, not born. This is the opposite of the trait traditional assumption. Given what we know about behavior shaping and model-based training, leader behaviors can be systematically improved and developed (Grittier & Kicking, 2004). Situational leadership theories grew out of an attempt to explain the inconsistent findings about raids and styles. Situational theories propose that the effectiveness of a particular style of leader behavior depends on the situation. As situations change, different styles become appropriate. This directly challenges the idea that one style of leadership is best.

The Contingency Model states the performance of a leader depends on two interrelated factors: the degree to which the situation gives the leader control and influence and the basic motivation. Fiddler believes that leaders are either task motivated or relationship motivated. These basic motivations are similar to initiating structure/concern for production and inconsideration/concern for people (Grittier & Kicking, 2004). References Europe, , CA. Abdicated, J. , & Bates, D. L. (2007). Effect of organizational cultures on mergers and acquisitions: the case of Demolisher’s.

International Journal of Management, 24(2), 303-317, Retrieved July 18, 2008, from Protest Central database. (Document ID: 1317191381).. Bennett, H. (2000). The effects of organizational change on employee psychological attachment. Journal of Managerial Psychology, , . Bennett, J. , & Valuator, J. (2007, November 17). Chrysler may refocus brands; roles for dealers could be revised; stemming overlap. The Wall Street Journal, , p. A. 7. Retrieved July 18, 2008, from Protest Central database. (Document ID: 1384303511) Blue Coat (n. D. ). About Blue Coat Systems, Inc.. Retrieved July 1 1, 2008, from http:// www. Bluebottle. Mom/company/beauteously Burner, B. (2004). Kurt Lenin and the planned poach to change: a re-appraisal. Journal of Management Studies, , . Business Wire (2004, March 18). Bally total fines grows marketing department. Retrieved July 18, 2008, from http://www. Liabilities. Com/company-activities- management/operations/5637343-1 . HTML Backbone (n. D. ). About backbone. Retrieved July 1 1, 2008, from http://www. Casebook. Com/about. PH Fisherman, G. (2007, September 27). RFC Monolithic enters into new credit facility with Wells Fargo Bank. Wireless News, , . Glenn, H. (2008, July 7). UBS gives assurance about capital position.

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Crystal is making plans to implement telecommunication technologies to increase its product offerings in an already growing market. Chrysler on the other hand is looking at simplifying its product line and cutting its losses. Chrysler has been on an organizational roller coaster since its beginning. In 1978 Chrysler was failing and predictions escalated that the company would soon fall into bankruptcy. Later that same year, Lee Iacocca became president of Chrysler Corporation. He swore to get the company back on its feet. In 1979, Iacocca became chairman of Chrysler and was successful in the federal government to back a $1. Billion dollar loan guarantee and tax concessions for the companyГ?CГ,-1Г?0 (Intestate, 2005). Five years after Iacocca took over the reigns Chrysler was back in business. In 1992 Lee Iacocca retired as chief executive. During this time, Robert Lutz who was president and chief operating officer (COO) of Chrysler Corporation, Highland Park, Michigan embarked on plans to reshape the corporate culture of Chrysler. He replaced the previous systemГ?CГ,-1Г?0 style of apartments with four cross-functional development platform teams; small cars, large cars, Jeeps and pick-ups, and minivans.

He introduced the formation of the Quality Alert System (AS), Learning Laboratories, and the Supplier Cost Reduction Effort (SCORE) (Redden, 1997). In 1998, Daimler-Benz acquired Chrysler making it Demolisher’s. In the early Demolisher’s became one of the top performing auto companies. Lack of internal communication, costly building projects and lavish product upgrades took their toll. The company lost its purpose and lost its disciplineГ?CГ,-1Г?0 (Protest Document ID: 268588941 , 2002).

The roger between these two companies did not last long, in a mere two years time all the top American executives were either retired, left or were fired; morale was at its lowest and productivity once again suffered (Abdicated and Bates, 2007). Chrysler is once again looking to return to profitability, fighting for its share of the market in an unpredictable economy. The company feels that by simplifying its product line and dropping some of its overlapping products that compete with one another it will be able to cut costs by cutting as many as 1,000 dealerships (Bennett and Valuator, 2007).

Appendix B Serene Software Synopsis Roy Cline Serene Software (Serene) is a privately owned company with 29 offices in 14 countries. Serene was founded over 25 years ago and employees around 1,000 people who service over 1 5,000 customers. IT departments struggle to keep up with the demands of the businesses they support and application backlog has never been that enables programmer teams to become more efficient. Serene enables a single infrastructure to be deployed with minimal impact on performance of remote teams. They enable business to improve productivity with a new generation of software.

This software enables IT executives to gain visibility into projects, resources and cost. Serene believes that the CIO should have access to the same quality of information about their field, as does the SCOFF about finances (Serene Software, n. D. ). When Jeremy Burton first became CEO at Serene Software, he found a 25-year-old firm that was very profitable producing mainframe-oriented products. As CEO Jeremy was charged with making the place grow. He found that the R department had been developing many new technologies but lack the backing of a company that was focused on mainframe-oriented products.

First, Jeremy turned R loose to develop the new products that will transform the company. Then he turned to Backbone to hang Serene. (Kirkpatrick, 2008) Backbone is a free-access social networking website where users can Join networks that allow people to interact with other people (Backbone, n. D. ). Jeremy wanted to change a mainframe-oriented business into a software-as-a-service business. This required a change in the organization in structure and culture. Backbone allows employees to get to know the CEO and lets the CEO get to know the employees. Jeremy says that it give me a window into the company.

He can take out his Blackberry and read status updates on various employees. Jeremy is convinced that by improving communications and interpersonal legislations, Backbone has helped him change culture and make the company more modern and efficient. (Kirkpatrick, 2008) Crystal with its plans to increase product offerings could utilize Backbone to improve communications throughout the organization, empower mentoring, and ease the company into a culture of constant change. This technology will allow Crystal to assist its employees in keeping up with the ever changing demands of the marketplace.

Appendix C Southwest Airlines Tina Cline The motivation and leadership within an organization can make or break a company. Leadership can be defined as social influence process in which the leader seeks the voluntary participation of subordinates in an effort to reach organizational goalsГ?CГ,-1Г?0 (Grittier and Kicking, 2004, p. 595). Internal analysis concluded that it was weak in the areas of leadership when it came to its communications between employees and seniors, empowering teams, initiating mentoring techniques and good leadership qualities of leading by example, taking risk and resolving conflict.

Being a successful leader entails that an individual be able to acquire the respect and admiration from the people they lead and motivate. Such leadership qualities can be seen throughout Southwest Airlines servant leadership tiles. Through immense competition and unpredictable economic situations the airline industry continuously struggles to make profits and keep their employees and customers happy. Southwest Airlines (SAW) has had enormous success and record profitability for 35 consecutive years (US Chamber of Commerce).

SAW success has been attributed to its warrior spirit, servant heart and fun-Liking attitude (McGee- Cooper, Trammel and Eloper, 2008). Southwest maintains a culture of servant its industry, including being recognized by Fortune Magazine as one of the top 100 companies to work for. Longtime CEO and chairman of the board, Herb Keller maintains that a most important resource is its employees. Throughout leadership he has developed extraordinary positive relations with his employees and staff at SAW (Manager, C. , 1999). KellerГ? philosophy is that by maintaining employee satisfaction it will maintain its customer satisfaction.

He has surrounded himself with other leaders that emphasis this philosophy as well. Colleen Barrett, right hand assistant and President of SAW, has founded the Culture Committee within SAW. The Culture mission at Southwest is to: create the SOUTHWEST SPIRIT and Culture where needed; to enrich it and make it better where it already exists; and to liven it up in places where it might be flounderingГ?CГ,-1Г?0 (McGee- Cooper, Trammel and Eloper, 2008). The committee is a motivational factor in itself, it is dedicated to doing whatever it takes to keep spirit of company/family philosophy going strong.

Appendix D Blue Coat Synopsis – Roy Cline Founded in 1996, Blue Coat Systems, Inc. Is a publicly-held company based in Sunnyvale, California. Blue Coat secures Web communications enabling IT organizations to optimize security and accelerate performance for all users and applications. Blue family of appliances and client-based solutions are played in branch offices, Internet gateways, end points, and data centers. They provide intelligent points of policy-based control enabling IT organizations to optimize security and accelerate performance for all users and applications (Blue Coat, n. . ). Brian Enemies (Blue president and CEO) has seen the industry change many times. At times he felt helpless during the technology bust at the turn of the century. He has watched his company explode to roughly 900 employees with nearly 400 percent growth in the last five years. Enemies has had to constantly adjust his strategy on the fly due to the constant change. When asked how o get people motivated for change, he responded with the following; Г?,Г?; Involve employees in change. Start with explaining why change needs to take place and share the vision of where going.

The more people are involved with the change process the stronger they strive for the success of the outcome. Г?,Г?; Reinforce change positively. Once you tell people of the coming changes, watch what they are doing, find examples of the individual behavior you are looking for and reward people. Г?,Г?; Always display your passion. The more senior you are, the more critical it is for your passion to be seen and understood. People take their measure of trust and confidence through you. Brian Enemies works nonstop on ways to get the right employees and to prepare them to evolve with the changing industry and company. Smart Business Northern California [ISBN], 2008) Crystal should involve its employees in the changing organization. Explain why change is necessary and share with rewards that will confirm which behavior is desired. The leaders at Crystal need to be passionate about the future of the organization. Displaying a positive attitude will encourage others to be positive as well. Appendix E Bally Total Fitness Synopsis Carjacker Kelly Bally Total Fitness is the largest and only nationwide commercial operator of fitness centers, with approximately four million members and 440 facilities located in 29 states, and Sports Clubs.

Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers. In addition to the specific initiatives, Bally has also invested in excess of $200 million in facility and equipment upgrades throughout its system over the past four years, including nearly 20,000 pieces of new, state-of-the-art exercise equipment. Not only hat, but the company has also invested aggressively in the development of innovative fitness programming for members both in group exercise and one-on-one training settings.

These investments have also contributed significantly to the growing level of satisfaction registered by Ball’s members as evidenced through the company’s increased member renewal rate. Although, Bally Total Fitness mission states; to improve health and quality of life for people through personalized, and accessible wellness programs. The company has to find ways to offer new product offerings to keep up with the vastly growing fitness industry. In order to build a throng foundation has continued to expand its operations.

Building a strong foundation includes closing some of the less profitable centers, redesigning other existing centers, and building newly designed facilities. New clubs were built with more space for weight machines and cardiovascular areas and less space for the lesser-used swimming pools and basketball and racquetball courts. The new design cost 60 percent less to build, while providing space for 40 percent more people. With these plans in place, and if revenues from memberships and other products continue to grow the fitness centers will operate more effectively and efficiently.

Bally Total Fitness will move closer to being the biggest operator of fitness centers in not only quantity, and quality as well. “As we create a solid foundation for the future, continuing to build a top seasoned executive team is critical to our success,” said Paul Tobacco, President of Bally Total Fitness. “Looking ahead, we’ll continue to place a strong emphasis and investment in our people at all levels and areas of the organization – in hiring, training and retaining quality employees who will help Bally assist us in generating ‘best in class’ results. ”

The environmental aspects considered for Bally Total Fitness audit are demographics, markets and competition. Demographic trends show that the older segments of the United States, ages 45-65 are growing the fastest. The marketing team will need to target the age range consumers that have the most effect on the market. An estimated 50 million people will be members to a fitness center in Just two years, the year 2010. This is due to an increased desire towards healthy living. The general population is becoming more aware of the benefits of exercise to promote health and wellness.