3. Leadership and organizational change - How organizations have been able to transform their business models through successful implementation levers
Leadership and Organizational Change
McNamara (N.D) explains that “organizational change occurs, for example, when an organization changes its overall strategy for success, adds or removes a major section or practice, and/or wants to change thevery nature by which it operates.” This need for bringing about change can be due to several reasons. Tripathi (2005, P349) states that the need for change could be due to “major changes in the external environment, technology, nature of work force, etc [which] may make an organisation’s existing structure, management practice or its culture obsolete for the new situation.” Furthermore, “with thegrowth of the organization, it communication and decision-making systems may become chocked, it reward and punishment systems may lose their effectiveness, and it inter-personal and inter-departmental relationship may deteriorate.” (Tripathi, 2005, P349) In all cases chance will become necessary. “Selecting and implementing significant change is one of the most challenging undertakings that facesan organisation.” (Resnik, 2011) Research has revealed that the success rate of an organization implementing considerable change is reasonably low. There are three key reasons for this lack of success:
* Firstly, “asking organizations to change the way they conduct their business is similar to asking individuals to change their lifestyles.” (Resnik, 2011) It is achievable, but it requires agreat amount of commitment, discipline, determination and a clear and thought through plan of implementation.
* Secondly, “resistance to change is a natural human phenomenon. All people resist change, some more than others. Managing that resistance is an essential part of the process (Source)
* Finally, “change creates uncertainty ... change is unpredictable. The results may be far better –but they may also be far worse.” (Resnik, 2011) Furthermore, “success often looks and feels like failure until the change is very nearly completed” (Resnik, 2011), thus you must stay committed to the change and as a manager you have to keep determined and resist pressure to pull the plug before the process has completed.
Focusing on Burger King, Burger King like many fast food restaurants havebecome aware of the slight changes in customer wants and needs; the modern day customer wishes to know more about what is going into their food, for example; what calories each meal on a menu contains and whether the burgers are 100% beef. However, they also want an efficient and quality service, which means getting the food to them as quickly as possible with a smile. These subtle changes couldcause an organisation to conduct significant organisational changes in terms of approach, thus the following internal and external pressures may be noticeable when times get hard.
* Fear of change is perhaps another way of describing fear of the unknown to many staff at Burger King. As this is a fast food restaurant, the organisational structure and culture of the businessare both maturing, thus change is likely to happen. I think it would be better if you can exemplify why you´re saying this. In which part of BK is happening or how is happening.
* Limited management skills – Burger King in the past has experienced a great amount of poor leadership values and skills. According to what I read is not about skills but cycles and results. A lot of CEO were givingresults economically but not on image, so they got fired, some others were giving very good results but with new acquisitions of BK and eventual changes of the new bosses, this processes were interrupted.
* Poor staff morale - may perhaps be the reason behind the internal pressures faced by Burger King. Lack of communication between staff members and managers could possibly be a contributing...
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