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Leadership and Change Management Research

Introduction The ability to change and flexibility are important for the success of any organization. By using change models, businesses can assess the necessity for changes within their organization. Some of the changes that a business makes depend on the strategic plan, personalities of the employees, and the leadership styles that the employee’s personalities require. Our team has been asked to examine the differences in change models, leadership styles, challenges with change, and success factors of multiple organizations. By doing so our team can gain a better understanding of what models are appropriate to the organizations and how critical those models are to the organizations’ success. General Electric and Chrysler – Tawana Keels General Electric At the time, Jack Welch became CEO of General Electric the companies market value was $13 billion dollars, in 2000 when Jack Welch stepped down as CEO, market value was over $500 billion dollars, GE had became the most valuable company in the entire world (General Electric, 2010). When Jack became CEO, he attracted plenty of attention, although he was known for being a transformational leader, he was also known for being direct and abrasive, this much different from his predecessor (Business Week, 2004). Although he did not have a master plan for restructuring GE, he had a vision of what he wanted the company to be. Like CrysTel CEO, Jack Welch knew his company had to be flexible and adapt to constant change. Additionally, he knew the company would need a complete restructuring and a dismantling of the bureaucracy that existed within GE. But the concept of change would not be completely accepting by the staff at GE. Similar to CrysTel, Jack Welch encountered a great deal of resistance to change. According to our class material, resistance to change is an emotional response to actual or imagined threats to an established work routine (Kreitner & Kinicki, 2004). Unfortunately, not all people have positive responses to change. Resistance to change is by fear, lack of trust, and unwillingness to discover new ideas. Implementing his vision would not be easy; his response to this issue would be swift and aggressive. He would initially sell off many unprofitable business lines and began trimming GE from “top down.” Second he would introduce the "Work Out" concept, a results-focused approach to solving problems (Business Week, 2004). Last, he would implement a quality program, which would process efficient first-class products. Although his response was swift and aggressive, they would put GE in an excellent position. However, during his first tenure, Jack would conduct mass lay-offs, more than 100,000 workers (25%) of the workforce would lose their

1%. 2009) During the spring of last year. Although his management strategy tends to more controversial. to increase sales. For Chrysler. which has had a considerable affect on the bottom line. Both have to be flexible and adapt to continuous change. and terminating dealership agreements with 25% of its dealerships. Chrysler hired a new CEO Sergio Marchionne – for 2010 he says his goal is to sale 1. Chrysler America has been in worst economic situation since the Great Depression of the 1930s. from hiring a new CEO. However. in 2009 sales dip below one million – the worst sales figures in almost 50 years. the last two years the Chrysler Corporation has seen a consistent decrease in sales. the automaker under went a total restructuring. well-established manufacturing company that has six plants nationwide and approximately 4700 employees. but the situation would prove to grow (Business Week. CrysTel and Chrysler companies are finding that external forces are requiring them to be flexible and adapt to frequent change. During this transition. . to selling off its unprofitable assets. consumers demand for innovative and economical solution to everyday life – businesses have been forced to change how they conduct business. Both must reexamine their organizational structure and implement new programs that will make them competitive to increase revenue and sales. developing more fuel-efficient vehicles. 2009) Additionally. the federal government loaned the company almost seven billion dollars (Voice of America. The decline in consumer spending coupled with an increase in competition. The outcome would garner many critics. Palos and South Deering Supply Corporation – Debra Newcombe Palos Palos is a medium-sized. the following year would be even worse. 2010). Palos (fictitiously named because of the three-year involvement with the program) has agreed to involve its management and employees in a Management by Objectives (MBO) program to determine if the company has sufficient job satisfaction levels. & Lyon. 2004). the following year sales were down 30% (New York Times. the Chrysler Corporation filed for Chapter 11 bankruptcy protection coincidently. more than one billion to be exact. Chrysler would receive more funding from the US Government. the CEO announced he would leave as once the bankruptcy was over (Voice of America. Ivancevich. 2009) Chrysler executives realized that the company would need financial help stay in business. To aid Chrysler in continuing their operations. In 2007 total American sales were down 3. Similar to CrysTel. his contribution to General Electric will never be disputed. This is the common issue for both CrysTel Communications and Chrysler Corporation are facing. 1970). The MBO survey done on Palos is the same MBO implemented with Purex Corporation with favorable results including better communication and understanding of the company’s goals (Donnelly. Most businesses in America have seen a steep decline in consumer spending.1 million cars (USA Today. this would prove not to be enough. To respond.

The future challenges for Palos management is to teach them to become leaders versus managers. As with Palos. However. 2003. Long-term goals are important in determining “what the company would like to become” (Kinicki & Kreitner. Goal-setting has always been important in organizations to determine if employees are motivated and have a sense of job satisfaction. This type of leadership style is defined as directive leadership. . South Deering chose top managers to teach the philosophies of the study to the other employees (Donnelly. South Deering agreed to perform the MBO on its employees and also chose to use management as a catalyst for this study.000 employees. the management at South Deering were directive as well. After the company’s long-term goals were set. South Deering (whose real company name was also withheld) is a medium-sized. empower employees. each department determined the short-term goals and submitted those plans to the personnel department. Ivancevich. but before initiating the program a questionnaire referred to as the Porter job satisfaction instrument was distributed to the managers. CrysTel’s management is defined as a servant -leader type relationship with subordinates because of the company’s involvement with the company’s long-term. The differences in leadership styles between CrysTel and Palo’s is that CrysTel empowers all employees to make decisions about goals and needs. Palos presented surveys to management only. & Lyon. South Deering has only one plant in a small Midwestern town. Short-term goals are important in an organization because they lay the foundation for the long-term goals. Unlike Palos. Palos does not. The exceptions to the similarity were that the goals at South Deering were submitted to a committee for review and the evaluation of goal attainment was done every three months instead of annually. in which employees are not involved with decisions and company goals. 92). After finishing the questionnaire. whose surveys were geared toward all personnel. unlike CrysTel. the initial findings for the long-term goals were formally documented and given to all levels of management.The personnel manager handled every aspect of the MBO at Palos. At the time of the survey. Personnel managers are far less apt to express the results of goals in a quantifiable measurement than top managers. p. South Deering’s approach to the MBO mirrored that of Palos with the long and short -range goals implemented by the managers. but the outcome of the results were different with South Deering as it boasted more positive results in employee needs satisfaction. and job satisfaction surveys. Then the managers set one-year goals and distributed copies to supervisors and subordinates for their review. South Deering Supply Corporation Like Palos. short-term goals. and develop teams to reach short and long-term goals. 1970). well-established organization with about 4. The study infers the difference between the outcomes at Palos and South Deering is the involvement at South Deering with the top managers in goal-setting rather than the personnel manager used at Palos. the challenges with Palos are the negative feedback for the implementation of additional paperwork the new goals set forth.

Palos and South Deering’s employees had low levels of job satisfaction. both companies had a solid base for which to put motivational theories to work. management could promote a positive work environment and insure future motivational goal setting participation.Another positive outcome in the study referred to the shorter frequency of review on the goals as a contributing factor to the MBO’s success. but its departmental leadership skills especially in the Marketing and Sales departments need to improve. said the difference between a good and an excellent company is: A good company provides quality goods and services. Palos and South Deering Supply Corporation Synopsis’s Like CrysTel. the directive style worked well for the employees. Palos and South Deering could also benefit from the transactional leadership style for their management to promote a better relationship between the employees and management. Ford Motor Company In 2000 Ford Motor Company wanted to develop and improve their leadership skills and become more consumers friendly. which prompted the need for the MBO’s implementation. provide valid performance ratings. Using the Expectancy Theory of Motivation. In addition to the charismatic leadership style. By implementing these steps. which enabled CrysTel to empower its employees and teams to set specific goals and create motivation. Because of Palos and South Deering’s former objectives. Ford's 2000 Corporate Citizen Report Chairman. The leadership styles for Palos and South Deering should better suit the new MBO objectives. 2001). Although issues still existed. however. which managers can use to motivate employees to be more involved in goal-oriented activities. and set rewards accordingly. CrysTel will be able to adjust better its changing market conditions and provide smoother transitions during these times of change. something that either company has been able to achieve in the past. The feedback process showed significant improvements for both Palos and South Deering after the MBO was implemented. Palos and South Deering could learn by benchmarking CrysTel’s methods to increase employee satisfaction and motivate employees through goal-setting and education. the new objectives promote the need for a more charismatic leadership style. CrysTel’s employees were more involved in the survey process than Palos and South Deering. CrysTel was able to implement leadership changes within their organization from high structure – low consideration leadership to total employee empowerment within the teams. Ford began to look . William Clay Floyd. With transformational leadership providing timely feedback and motivation in these departments. Ford Motor Company and General Motors – Donna Ray CrysTel has strong top executives. an excellent one provides excellent goods and services and attempts to make the world a better place (Friedman. both Palos and South Deering management would benefit from involving themselves in communicating standards to the employees.

and offer individual coaching (Davis. 2001). & Marcotte. Lucas. This approach is what Ford identifies as total leadership. clerks. and Ford understood this transformation would require leadership.for ways to transform into a consumer focused company as a means of guaranteeing long-term financial success. to incorporate full leadership. 2004). and supervisors. Lovejoy believed that the next level of productivity could be accomplish with the evaluation of leadership style and managerial skills. Over the course of these trainings through the Learning Development Center. and a Ford’s current Supplier and Business Leadership project has seen $ 300 in profit for each vehicle (Friedman. The data result from the pilot group was compare to . & Marcotte. and create business contact financially and organizationally (Friedman). Ford’s leadership programs created training for the development of transformational leaders through action learning. General Motors The Service Parts Operations (SPO) of General Motors is in charge of ensuring GM dealers. 1998). and ability to build commitment (McShane & Von Glinow. Ford decided to develop the Leadership Development Center that offered a sequence of leadership programs that focus more on Ford's core principles. Key Findings CrysTel could gain ideas from Ford by considering a leadership development program. After evaluations were performed each employee developed a training plan with his or her DDI coach who focused on management simulations and skills like developing accountability. perform the training. CrysTel has come across constant changes in the unstable telecommunications market. and so Lovejoy hired Design Dimensions International (DDI) to evaluate desired management competencies. learned that the SPO division was not meeting its customer's needs. and it will need quality leadership in its Marketing and Sales departments to supervise and grow with these changes. Training assessments and follow-ups are an ongoing process. and customer relations. Alternative Solutions Although CrysTel presently has good upper management leaders. e-tools like the Internet and e-mail. Lucas. and vendors have the correct part at the right time at the correct price (Davis. The main focus of Ford’s Leadership Development Center is to build leaders with a consumer mindset. The evaluation was executed over a two-day period on a direct group of managers. incorporate work and life. Although SPO employees gave an account of strong financial performances and output. the division's general manager. and to strengthen business alliances and be open to new ideas. distributors. communication. 1998). communication. a leadership development program could be develop to help improve leadership styles and skills in its Marketing and Sales departments and direct the development of training programs centered on CrysTel's core principles and a changing culture. Bill Lovejoy. members who worked with Quantum Idea Projects have developed effectively 600 projects with major business contacts. Leaders change his or her company through their vision. like Quantum Idea Projects (QIP) that promote critical and creative thinking.

Proficiencies cover a broad range of personal characteristics like knowledge. size and strategy increased in ways that decreased positive attitudes and caused resistance for the WIC program within the organization. Looking at new technology advances will takes retraining for new comers not familiar with DOS programs or have not used DOS in years. the pilot group saw major improvements with role clearness and personal influence. health and safety. the use of it is exciting. What happens is that it allows us to service the public more and the more we service our system appears not to handle the traffic well. & Marcotte.” Other . The WIC provides women. skills. foods they were able to purchase either have been changed or eliminated from the program. Workers can work faster and provide services more proficiently. First. as the new programs are used more often. and values (McShane & Von Glinow. This means that more ram. The strategy is serves clients more efficiently and quickly to reach more of the public that needs the service. The checks have increased with numerous amounts of food and variety of foods listed. Key Findings CrysTel could benefit from the works of an outside group who could assess their current leadership proficiencies. and adjust to change. As clients receive counseling. many are excited about the new foods they will receive for the children but also their self. production. postpartum. As the state contracts with different vendors for functional software that assists various programs with doing daily job duties. infant and children with dietary counseling to ensure they are eating healthier during pregnancy. Alternative Solutions If the budget allows. Lucas. Although new technology is important. and absenteeism. 2004). but at the same time. meaning it started small and became bigger and bigger. 1998). The productivity improvement resulted in nearly $4. CrysTel could employ one or two consultants to evaluate leadership proficiencies and develop personalized training programs that center on communication. and contract of the software. On the other hand. “My child will not drink anything other than whole milk or two percent.those of a controlled group and the results were remarkable. Many believe they should be able to have what they had before and continue to challenge Nutritional Educators saying. excellence. Improved leadership will help CrysTel build a culture that can sustain continual change.4 million savings to the operating budget (Davis. available resources. Department of Health and JC Penney – Tamira Summers Department of Health Technology. One of the most challenging educational explanations for milk is the decrease in percentage. the possibility of an overload can occur which may cause it to shut down more frequently. and the children up to age five. Later as statistic reviews are discussed and shared with corporate and county departments. the state continues to work in a DOS system. and the use of personal skills and acknowledgment. will help solidify the cost. This would account for the popularity of the program. The performance ratings for the pilot employees outweighed those of the control group in areas: schedule achievement. memory and all that good technology talk needs revamping. abilities. use.

Other departments expanded their space and were able to increase in merchandise. and sophisticated meeting ages of sorts. These brands were sister brands some big box retailers and sought to service ethnic groups of all sorts. The same is cosmetics.” Simple solution. Take for instance. In addition. JC Penney could not compete with other major department stores such as Dillard’s. some . the space use for accessories took over. This strategic move was necessary for competition but also to reenter a competitive cosmetic market with the help of another prominent line that caters to a variety of cultures. and biotechnology. Most current is the anti-aging serums. “Also a re-introduction of cosmetics included the installation of Sephora inside JC Penney located in some key stores. Belk’s and Parisian at that time.” Many major cosmetic designers sought companies that had the look of what they wanted to sell as well as the type of clients they wanted to sell to. other areas underwent a redesign such as jewelry. hips. As a previous employee. As the economy changed. Others include simple complaints such as “the bread is hard to find” or “I waited for this formula to come in and it never did. this line of cosmetics is fun. JC Penney offers online purchasing and phone purchases. material. With the missing cosmetic market. Beginning in 2007 the store slogan changed from “It’s All Inside” to “Every Day Matters. JC Penney realizes the market for vanity is serious and is a multibillion-dollar industry. After years of going without a cosmetic department. the new sketcher shoes designed to help support the back and strengthen muscles in the legs. Sephora introduced itself once again as a partner with JC Penney. In addition. Most clients are excited and share the newly imposed foods and benefits to their friends or family. the company sold cosmetics. JC Penney desire is to make shopping a pleasure and price merchandise within the general consumer budget. JC Penney As a major chain in retail. Without some of the technological advances in Internet and telecommunications. Desiring to compete and meet the customer request along with many other back office dealings. and butt area. go to another store and find it. The technical design of the shoe provides a heel to toe rocking motion that guides the proper walking notion. Technological bases in this industry focuses on Internet telecommunication. the strategic move to eliminate the department did not just vanish. the right material is necessary and must provide a form of comfort to customers. In an effort to introduce other strategic move. Resizing other departments indicated a strategy move to increase in revenue and meet more of the consumer demands. Sephora brought added life to the company. some lines were very European and rare to see at that time in JC Penney. the cosmetic and fragrance lines were discontinued. It requires a medical referral to receive other brands because there is a particular reason for needing that brand.challenges also include wanting milk that the hospital gives and the program uses another company name whose formula is compatible. In addition. trendy. Looking forward. now my check has expired. JCPenny’s is a giant in apparel retail. which the chemical balance is necessary to support the natural body’s hormonal reactors.

JC Penney moves forth in size and has retailer itself to meet fashion trends. The new program implemented helps increase in speed and accuracy of serving the public. J. but word of mouth is an important tool relied upon to attract the clients we need. refocus areas of greater need and continues to grow as a retail giant. Florida is the largest county here and the number of residents is over 800. Almost going bankrupt. the use of old technology will completely disappear and eventually the state will meet more challenges with precision. Its Internet store has grown into one of the largest apparel and home furnishings retail sites on the Internet. but they are not without their county division. Better technology in programming removes the use of a DOS system despite functions used to input information. The move to reach the consumer is greater for JC Penney because of the technological advances and apparel industry. Surrounding counties have only one office clients can travel to. As the organization revisited the cosmetic industry. JC Penney technology avenues have increased with Internet shoppers and transforming them into buyers. more opportunity is here to reach those in need. The need to build in convenient locations as well as go international is reason to adapt to change. Among its general merchandise peers. Jacksonville. The both meet the needs of the consumer. Compare and Contrast Department of Health for Duval County technological advances are state approve. but one lags behind in the combination of Windows and DOS programming. JC Penney continues to compete not just in the physical store but virtually as well. which the division caters to. Our goal is to service at least 95% of the county. In this current age. the county has more offices for WIC. this retail leader has survived more challenges than many other departments who eventually closed its doors.C. “In 1998. Department of Health size is based on the size of the county and the number of residents that need the program. Because of the size of the county. the on-line store has the highest rate (10.1%) of converting site visitors into buyers.000. Once introducing cosmetics and doing away with its cosmetic department. it reintroduced its self with a new hot and trendy cosmetic .clients would not shop at their favorite store. Thanks to funding and clients. As more and technology programs are designed to meet the functions of government programs. JC Penney started business in 1902 and continues to thrive decades later. Penney launched its third channel for shopping convenience. Many also come from neighboring counties. In order for Department of Health to reach the consumer is more challenging because the use of some technology such as the Internet is not readily available to clients.” Between Internet and telecommunications. but also for medical attention and dental attention. The company continues to grow in popularity and size. the company was able to expand in different areas meeting a different consumer demand for apparel and accessories. For new software and machines to come into the different sights for our division has identified the need for it.

Retrieved January 24. 2007. the company relies of buyers and designers to set forth the next wave of colors.htm Davis. The Department of Health strategy is based on grants through the United States Government. This may be an unfair analysis. One helps feed the population and the other feeds off the population.. R. chemical serums and technology use to help set the stage for upcoming changes. J. S. Conclusion The ability to change and adapt are important in today’s organizations. H.businessweek. but respectively true to its industry. JC Penney strategy is trend focus. Change models assist businesses in developing goal-setting skills and understanding employees. Empowering employees with the ability to make decisions.line named Sephora. The other attracts customers through a need and not a desire. Retrieved February 28.. & Marcotte. 77(4): 62-64:66+. 23 Issue 2. the other industry can focus on a need to clothe the demographical area. To remain competitive and meet consumer desires. Workforce. D. J. materials. and Lyon. A Study of The Impact of Management By Objectives On Perceived Need Satisfaction. R. Identifying and analyzing the needs of the public. Jack Welch: Management Evangelist. marketing. doctor visits and so on indicate why new programs or increase funding for existing programs are in need. there is a strategic analysis that shows the state why requests are in need. Forecasting for the future to reach a percentage of customers will set forth other strategies that will continue to offer help to those in need. Personnel Psychology... be creative. 2010 from . Vol. 13p. obesity. H. cuts. from RDS Business Suite database. Summer70. Our team was asked to research and assess multiple companies that have endured change and continue to be successful because of their flexibility. Technology is the future and seeking ingenious technological outlets to meet and exceed consumer desires are all part of the ability to forecast strategic moves. Organizations that can identify specific leadership skills among their managers can implement changes such as education and training to improve their performance as well as the performance of the employees with whom they supervise.. This company contracted with JC Penney and increased the cliental and financial reward of this industry. April). GM links better leaders to better business. References Business Week (2004). Retrieved from http://www. Statistics such as infant mortality. Donnelly. Virtual communication has led the company to implement a new shopping habit through Internet use. One company size can focus on demographical need. Ivancevich. It also relies on another industry that attracts clients through media. and provide input can be a valuable asset to any organization. Lucas. (1998. and trend. p139-151.

. Chrysler Bailout Plans.html USA Today. Welch Jr. March).com/login.voanews. General Electric (2010). Retrieved from http://www. A short history of Chrysler. Retrieved from http://content. 2010 from www.htm . NY: McGraw-Hill. A. & Von Glinow. (2001. Kreitner.http://search. Leadership DNA: The Ford Motor story: Training & Development. Retrieved from http://www1.nytimes. D. R.usatoday.. Chrysler CEO Promises Five New Models for 2010. Obama Reject /0fg78aW4eq5Vd/1 Voice of America. M. Organization Behavior. JC Penney: Then & Now.JC Penney-coupons. 2007. from RDS Business Suite database. (2009). New York: The McGraw-Hill Companies McShane. Biography. New York Times. (2004) JC Penney (2009). S. Organizational behavior: Emerging realities for the workplace revolution (3rd ed. (2010). 55(3). 2003. Retrieved February 28..aspx?direct=true&db=bth&AN=6263059&site=ehost-live Friedman. GE Past Leaders: John Retrieved from Kinicki. Sixth Edition. Retrieved January 24. (2009). New York. S.