Organizations of Critical Issues in Business

Question: Discuss about the Organizations of Critical Issues in Business. Answer: Introduction Leadership is the key component in the organizations of modern competitive business world. Research has been conducted on the importance of leadership in organizations while maintaining the organizational change. On the contrary, organizational change is necessary for the growth of the company who are operating in a dynamic and complex business environment. Increase in the transformation of the organizational structure and business model are considered as the critical driver in the perspective of organizational success. However, leadership in this context acts as an enhancer in developing organizational change in a particular company (Choudhary et al. 2014). Globally all the business leaders have accepted the fact that appropriate form of leadership helps in development of organizational performance as well as organizational change. There is a relation between change management and leadership in the organizational success. The study discusses about different aspects of leadership in different organizations as well as various aspects of change management that result in organizational success. Leadership is the topic that is popular among all types of organizations (Lozano et al. 2013). The study will describe about the views of different authors regarding the role of leadership in different situations of organizational change and organizational success. Cynical view of the leaders and the owners of the organization have perceived the change that the transformation of the leadership and the operational procedures are proven to strengthen the organization pedagogy as well as personal ideology. However, global leaders also receive negative sentiments from the different groups of employees when they are following the path of organizational change (Dinh et al. 2014). Literature review on role of leadership in organizational change In this section, critical review of literature regarding the above-mentioned topic is being discussed with the view of different authors. According to Cameron and Green (2015), organizations excel while they adopt change as soon as possible. Teams of different organizational change must know the need of the organizational change. The role of the leaders in the companies must have a clear and clear crisp knowledge about the group dynamics and strengths of the teams. Communication will be initiated as per the nature of the groups regarding the needs of group dynamics. While determining the results of the organizational change, leadership plays a vital role in defining the group dynamics as well as the pros and cons of the group. As stated by Lozano et al. (2013), there are many sustainable development initiatives that are adopted by the universities while mitigating the gap between the skills of the students and the requirements of the companies. The authors focus in the gap specifically in formulating various strategies in the development of leadership among the students who are learning different subjects. The article focuses on the curricula of the universities that require changes while focusing on the requirements of the organizations. An institutional framework for new curricula has been formulated by collaborating with the companies and other academic experts. On the contrary, Vaccaro et al. (2013) pointed out that management innovation is the result of appropriate form of leadership. The pace of technological change and pace in the field of technological change, firms feel the need of adopting organizational change. Change not includes changes in the products and services of the company but also it includes the change of the management structure of the organization. However, it can be seen that management innovation is responsible in bringing a potential change within the organizational context by redefining the industry while influencing development of new ideas that is initiated by development of leadership. Seo et al. (2012) stated that the executives and managers of different levels of management in an organization are ready to accept change in order to improve the organizational performance. A research has been conducted among different employees of same organizations. Authors found that there is a longitudinal relationship between employee commitment, behavioral responses and affective experiences. In this study, transformational leadership is focused for initiating organizational change. Transformational leadership helps in shaping the behavior, commitment and affective reactions of the employees at the initial phase. Apart from that, theoretical frameworks of leadership are also implemented in the organizational purposes. On the other hand, Carter et al. (2013) has focuses on the transformational leadership that enhance the organizational citizenship behavior and task performance of the employees. Organizational change is a vital requirement in order to differ the image of the company in the competitive business world. The daily challenge in meeting the competitive needs of the market along with the demands of the market can be eliminated by implementing organizational change through transformational leadership. Managerial effectiveness can be reached by developing transformational leadership within the organizational context. According to Dinh et al. (2014) leadership theories and related frameworks are responsible for bringing change in the behavior and minds of the employees in accepting the change. The dramatic increase of the competitiveness in the market is not only limited to products and services but also to human resource capabilities of the company. The article describes about the implementation of the leadership theory of transformational leadership and global leadership practices all over the world. As stated by Schneider et al. (2013) organizational climate is related by organizational culture. Organizational culture is the culture that is created by the people working in the company i.e. the bundles of experience experienced by people. However, not only the people associated in the company develop leadership, but also it is depended on the organizational culture. The behaviors of the leaders of the organization are framed accordingly with the organizational culture. Situational leadership is the best form of leadership in this perspective. It is the best form that can be responsible for organizational change. On the other hand, Wong and Laschinger (2013) stated that empowerment is defined as job satisfaction, performance and authentic leadership. Authors stated that leadership is depended on many external factors also such as declining economy, advancement in technology and changes in government funding. All these activities are responsible for creating an impact on the empowerment. However, it can be said that the role of empowerment is depended on effective leadership. Similarly, organizational change is responsible for effective form of leadership practiced by the leaders in the organization. The authentic leaders of the organizations are the facilitator of higher quality relationship that leads to active engagement of employees. According to Griffin and Hu (2013), leaders of organizations motivate in the perspective of safety participation and safety compliance. The leaders of the organizations are in support of the LMX theory of leadership and transformational leadership theory. It is seen that these theories are responsible for removing the hindrances of the accepting the organizational change from the minds of the people. The theories of transformational leadership and LMX leadership also enhance safety participation and safety performance. Research has been conducted about the impact of safe working environment in the context of organizational change. As stated by Colbert et al. (2014), leadership and top team management team personality are responsible for the enhancement of organizational effectiveness. Organizational effectiveness can be attained by the effective practice of change management in the strategic management department of the organizations. Indicators of organizational performance can be lagged by lack of conscientiousness of CEO. However, it can be said that the collective organizational commitment is responsible for financial indicators. Scholars of management have been researched about the fact that the top management teams of the organizations are only responsible for practicing transformational leadership in the organization. On the contrary, Hollen et al. (2013) has pointed out the fact that management innovation in the inter-organizational perspective. Authors stated that the manufacturing firms and the service industry is focusing on improving the environmental performance and resource productivity by improving technological aspects. The leaders of these organizations face Intra organizational tensions while supporting the aspect of innovation in the management of the company. Manufacturing companies are merging the theory of management innovation with leadership theories while mitigating the competitiveness of the dynamics of the environment. Resource productivity along with the development of leadership is complementary with each other. As per Wiewiora et al. (2013), organizational culture have proven to be a reason for long term success of organizations. Apart from that organization culture have a direct impact on the leaders that are practicing leadership in the organizations. Authors pointed out that the Australian organizations are very focused to the Australian organizational culture. Influence of organizational culture is described in the context of project based organizations. Organization culture is also prevalent in these type organizations in formulating any types of strategies for organizational change. Leadership and knowledge management are the aspects that go side by side. As stated by Uzkurt et al. (2013), organizations of banking sector are putting emphasis on organizational culture that indirectly improve the firms performance. However, innovation and advancement of technologies have direct impact on enhancing the productivity of the companies i.e. banks. In the article, authors have focused on the relationship between organization culture and leadership facilities. Banking sector of Turkey focuses on the culture of the organization first on the development of leadership. Leadership and management innovation among the organizational leaders is proven to enhance the customer service ability of the employees of the bank. According to Lopez et al. (2013), proactive motivation and transformational leadership is responsible for the antecedent of the change oriented behavior of the organization. A general framework of proactive motivation is discussed in the article that will influence the dimension of individual consideration of transformation leadership. Organizational citizenship behavior is defined as a multidimensional construct where various facets of discretionary behavior that are not directly related to the job content behaviors. Transformational leadership categorize the affiliative dimensions of the behaviors of OCB in a way so that they can promote existing arrangements or relationships between the work and group cohesion. As stated by Real et al. (2014) entrepreneurial orientation and organizational learning have moderate effects on the development of leadership in terms of organizational change. The concept of entrepreneurship is related to the development of leadership and development in the organization. Knowledge creation is related to the development of leadership behavior. The article focuses on the entrepreneurial orientation in the small medium enterprises more than that of the big multinational organizations. Apart from that, it is seen that these organizations usually follow situational leadership in order to proceed with strategies of organizational change management. It is a positive aspect that enhances the organizational performance. As stated by Eisenbei and Boerner (2013), individual creativity and transformational leadership are considered as double-edged sword. Transformational leadership influences the performance of the followers of the leaders of the enterprises. Transformational leadership results in grooming the individual. This enhances the creativity as well as the personality of the employees. Quality of work is improved. It also enhances the creativity of the employees that leads to improved performance of the company as a whole. Charismatic leadership and transformational leadership have very much common in it that is also prevalent among the leaders of organizations. The executives of different levels are allowed to portray their leadership skills in their respective fields of work. However, one negative aspect of transformational leadership is over dependency of the employees to their leaders. According to Millar et al. (2012), transformational vision and organizational change is responsible for the sustainable development of the organizations. Sustainability is the key area that is being practiced by both big multinational giants as well as small medium enterprises. in the article, authors described sustainability as the environmental movement that highlights the corporate social responsibilities of the companies in terms of community development. It is the result of organizational change that is initiated by transformational vision of the organizations. It also builds a strong corporate image in the community along with strong brand reputation (Jacobs et al. 2013). As per Kuipers et al. (2014), change management in public organizations is quite different from private organizations. Intervention of external environment is more prevalent in the public organizations more than that of private organizations. Change management is a constant process that helps in mitigating the demands of the customers as well as the market changes. Leadership of the leaders of these organizations is also considered as the factor influencing the organizational change. Leaders play an imperative role in bringing change in the employees. They motivate the employees while enhances the productivity of the organization. According to van den Heuvel et al. (2013), organizational change is responsible for the development organizations not only in terms of organizational structure but also in terms of productivity. Authors have described about various theoretical frameworks of organizational change management. Companies can implement the theory of Lewins change management model in terms of implementing different aspects of changes in the particular departments of the operations. The employee level constructs in the three phases such as unfreeze, transition and refreeze. Adaptation of changes means adaptation in terms of employee adaptability in managing the transitions of work in the organizational context (Dunn et al. 2012). On the contrary, Wallance et al. (2013) stated that the front line employees of the banks are critical in terms of brand success, as they are the people who are interacting with the customers coming in the bank. Leadership in the banks encourage the bankers and the front line employees so that they can improve their customer service skills and the brand supporting behaviour with the context of service encounters. Authors have described the nature of commitment of the employees in terms of banking and differentiation between normative commitment and continuance. Committed employees are proven to build a brand for the bank in terms of service encounter (Santhidran et al. 2013). As stated by Kissi et al. (2013) transformational leadership has a significant role in building the portfolio of the managers while describing the project performance. Competing with the market needs and meeting the expectations and demands of the clients is the main area of focus of the project managers. In the article, authors have found that transformational leadership of the portfolio managers are found to create a significant and positive relationship in terms of performance of the project. However, it helps the portfolio managers in highlighting the need for exploration of different types of activities while improving the performance of the project (Choudhary et al. 2014). Conclusion The study describes about the critical review of the literature review of the topic role of leadership in organizational change. Different authors have pointed out their views regarding the different forms of leadership in the organizational context. However, it can be pointed out that organizational change is the trend that every type of organizations is ready to accept while creating a dominant position in the marketplace. Innovation of technology and in the competitive business world companies are constantly fighting with each other in terms of product development and improved customer service. There are different forms of leadership such as democratic leadership, autocratic leadership, participative leadership, transformational leadership, etc. Among these forms of leadership, most of the authors of the journal articles have supported the theory of transformational leadership in driving excellence in the organizational change. References 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. 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