Organizational Change Given the Rapid

Organizational Change

Given the rapid pace of change that is influencing the global economies today, the ability to transform organizational change from a distraction to a core strength of any organization is critical. At the center of any organizations' ability to transform change from a distraction to the catalyst for growth are its leaders' attitudes, beliefs, and decisions with regard to navigating their organizations through uncertain times (Gandossy, Verma, 40). Studies have also shown that the Emotional Intelligence (EI) of leaders is even more critical than their title or position within the company hierarchy (McEnrue, Groves, Shen, 154, 155). Analyzing how leaders can be more effective in managing organizational change is the topic of this paper. From the accumulated research into this topic however one fact emerges as critical, and that is a leader, to be successful in overcoming resistance to change, must inspire trust in their subordinates. The era of being able to demand compliance through authoritarian means is over in many of the world's societies. It is more critical for a leader to have Emotional Intelligence (EI) over and above merely a title or formal position (McEnrue, Groves, Shen, et.al.). As a result, underscoring all concepts and strategies of successful leaders is the ability to gain trust through authenticity, consistency and transparency to their employees.

Managing Organizational Change

Responding the many external forces while keeping the internal processes, systems and strategies aligned to organizational objectives requires leaders to create a climate where risk is seen not as a threat but a call to greater accountability and ownership to overcome chaotic situations (Karp, Helgo, 82, 83). Only by creating a corporate culture that thrives on change can any leader of an organization turn the inevitable changes in direction of strategies, even business models, into an asset instead of a liability. The greatest enabler of positive organizational change is trust in the leaders who are working to create and fulfill the vision of a new business model, organizational structure and direction for the company to succeed in (Karp, Helgo, 92, 93).

Resistance to change however can be so significant that it can "freeze" a company from getting to its goals or even making progress towards survival. Too often leaders will resort to their formal power in the organizational structure to gain cooperation for initiatives, yet this has only a limited level of effectiveness to it. As McGregor has determined in his Theory X and Y approaches to management, Theory X managers believe that employees are inherently lazy and must be coerced to work. Theory Y managers see employees as ambitious and self-motivated, only needing to trust in organizational change and looking for a chance to take ownership of the direction. These are markedly different management styles and have a significant impact on how change is perceived and accepted or rejected in organizations. This is where the Emotional Intelligence (EI) of a leader becomes critical (McEnrue, Groves, Shen, 173, 174). To the extent a leader can nurture and create trust with their subordinates is to the extent they can create a positive perception of change, where employees identify and even own parts of the processes critical for change to strategies, systems, processes and procedures to be successful. It is in the approach leaders take to managing change and gaining ownership among employees that lasting change can be successfully managed. Resistance to change cannot be accomplished through formal channels; there must be a more transformational role to managing organizational change that is more dependent on a leader's ability to inspire confidence in their judgment and abilities than blind faith in their position level in the organization.

Trust in Leaders is Critical for Lasting Organizational Change

The ability of a leader to have a transformational effect on any organization is more dependent on their ability to be transformational and charismatic in their approach to managing (McEnrue, Groves, Shen, 168, 169). This refers to the ability of a leader to help employees learn through the process of change how they can improve their own talents, abilities and skills over time vs. being merely directed to do their jobs' duties even in the midst of major upheaval and change. To be a transactional leader is to embrace the concept of using only authority as a means to get to organizational goals. Transformational leaders on the other hand concentrate on being worthy of their employees' trust by concentrating on behavioral integrity first and foremost (Karp, Helgo, 92, 93).