Organizational Change: Article Critique

Organizational Change: Article Critique

The article chosen is by Ann-Louise Holten, Gregory Robert Hancock, and Anne Bøllingtoft (2019) about change leadership and change management, focusing on the layoffs, mergers, and closures which constitute relocations and outsourcing. Many businesses worldwide are undergoing a period of intense globalization and technological revolutions that impact business operations. As a result, some companies have to close and merge with others. Some companies are relocating production and outsourcing from other developing countries where labour costs are low, government regulations are lenient, and proximity to raw materials. However, the intensive changes that come with layoffs, these closures and mergers impact the employees, which is the main focus of the authors in this article. They explore through a study how well organizations can manage the change process and compare how the leadership in the change process impacts the change recipients. The authors focused on collecting the information from Danish workers to represent the working population in the country through a panel data approach. The researchers received 2120 responses which constituted 1000 from public organizations and the rest from private companies. In the findings, the authors noted that it was easy to predict the positive change consequences and experiences when both change leadership and change management were present across public and private sectors (Holten et al., 2019). However, when the two groups, private and public, were compared, it was revealed that the employees from the public institutions reported less positive consequences or experiences. This results from the bureaucracy in public institutions compared to the private sector, which focuses more on performance management and profitability.

The authors’ main point is that both change leadership and change management are essential and should be used concurrently during the change implementation process to attain positive outcomes among the receivers (Holten et al., 2019). Although there can be adverse outcomes, the main focus here by the authors is specifically on the positive consequences and change experiences as perceived by the receivers of the change in both public and private organizations. Drawing responses from the public and private entities also aimed to distinguish which sector benefits more from the change process. In this case, the findings revealed that leaders who are knowledgeable in the change management process in both industries show the characteristic of change leadership, such as providing support to the employees for the positive change experiences and consequences to be achieved (Holten et al., 2019). The findings supported this hypothesis, but the authors discuss the importance of collaboration and motivating the public sector, in this case, which was the most disruptive due to the many mergers and permanency of most employees to endure the change process. On the other hand, the private sector is mainly affected by layoffs and closures.

The authors’ arguments support the main point based on both the findings and the literature review. Firstly, the authors explore how change management and leadership have increasingly been used in organizational change topics. In this case, the authors discuss how various implementation programs have contributed to multinational corporations’ large-scale. In this case, work-related activities have been impacted, including changes to job designs and the nature of tasks. On the other hand, individual outcomes could also be affected positively and negatively, such as job satisfaction and commitment, turnover rates and intention to leave, and performance (Holten et al., 2019). Therefore, without proper implementation of the change through appropriate management practices to manage such risks and leadership to provide good inspiration and motivation to participate in the change process and realize the benefits. Therefore, the findings from the secondary literature views, drawn from past research, help support the hypothesis of the researchers in the article. Using logical reasoning and analysis of the secondary resources and discussion of the evidence from previous researchers is one way to strengthen their findings and develop a basis for conducting the research.

In the findings, the authors also have reached a conclusion supported by the responses of the sample population. One of the arguments that the authors make is that the Danish workers mainly reported being affected by mergers (Holten et al., 2019). Based on the 2008 economic crisis and the structural reforms in the country’s financial sector, most workers reported positive improvements in the change process and are generally open to accepting organizational change (Holten et al., 2019). Another finding that supported the main arguments also includes the impact of leadership in inspiring change behaviours (Holten et al., 2019). For instance, the findings indicated that the way leaders inform and communicate the change process, including involvement and regular feedback, increased the support for organizational changes. This resulted in positive change experiences and consequences in work-related activities and the individual outcomes among the workers. The support given to the workers by change leaders is critical to making them more knowledgeable and committed during the organizational process. When it came to change management findings, the authors also found similar results and arguments to support their main point. In this case, the authors indicate that most employees tend to develop trust and support for the change leaders if they have the change competencies and reasons appealing to the other employees. Therefore, the managers’ knowledge, skills, and capability to initiate change and have good ground for such change can enhance a collaborative environment with the employees who are critical in the effective transition process and institutionalization of the change process for the future (Holten et al., 2019). In this case, managing potential risks is critical to ensure that organizational change leads to positive outcomes.

Although the Authors focus on the Danish workers and the processes of mergers, layoffs, and closures, they present promising findings on the aspects of change leadership and management that contributes to the positive change experiences and outcomes intended in most the organizational changes. The authors raise two main essential issues affecting most organizations when implementing change. First, managers must show leadership skills to cooperate with other employees (Hechanova et al., 2018). Without convincing the other employees of the need and importance of the change and including them, such as selling feedback and their thoughts on how best to achieve it, it would be not easy to achieve such a positive outcome (Mehta et al., 2014). Besides, the authors identify essential leadership traits associated with the change process, including how well to communicate, provide support, and inform the employees of the progress of organizational change every step of the way, which can help in continuous involvement and monitoring of the change process. This is quite important in the change process. The second issue is the significance of the competencies of the change leader. In the same way, patients trust doctors to give the correct medication because of their expertise power. Employees also develop trust with the change leaders and mergers who have expertise in what they are doing. Considering change is a new process, looking up to such management for direction is critical. Therefore, there is a need to have the competencies and capability to handle a change process to be effective (Mehta et al., 2014). Overall the authors make promising findings on how best to utilize change leadership and change management to enhance positive experiences and outcomes (Holten et al., 2019).

In conclusion, leaders must establish a culture of change in organizations and overcome resistance in today’s business climate. The nature of communication has transformed in the business world with video conferencing, zoom meetings, and other forms of instant messages to many people at once is a possibility. Besides, there is a growth in digital marketing through various online platforms and media. One of the most remarkable is social media platforms such as Facebook, which has attracted many businesses to use multiple analytics in predicting consumer behaviour and promoting relevant products to various segments, which has increased sales of both large and small businesses. Therefore, a lot of change is happening in the business industry, and the employees should be trained to be flexible and agile to respond to those changes on time. Developing a culture of accepting change is therefore essential. To overcome the resistance to change, leaders must communicate the need for the change and reasons for such changes to ensure that at least most of the employees agree and see the market. Afterwards, continuous communication with employees, listening to their feedback and concerns and addressing them is crucial to make them part of the processes. Lastly, implementation in phases is critical so as not to make sudden changes at once, which can lead to workflow disruption.

References

Holten, A., Hancock, G., & Bøllingtoft, A. (2019). Studying the importance of change leadership and change management in layoffs, mergers, and closures. Management Decision, 58(3), 393-409. https://doi.org/10.1108/md-03-2017-0278

Mehta, S., Maheshwari, G. C., & Sharma, S. K. (2014). Role of Leadership in Leading Successful Change: An Empirical Study. Journal of Contemporary Management Research, 8(2), 1-22. https://www.proquest.com/scholarly-journals/role-leadership-leading-successful-change/docview/1728618598/se-2?accountid=40836

Hechanova, M., Caringal-Go, J., & Magsaysay, J. (2018). Implicit change leadership, change management, and affective commitment to change. Leadership &Amp; Organization Development Journal, 39(7), 914-925. https://doi.org/10.1108/lodj-01-2018-0013