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Blog 5 – My Vision of Leadership

Coherent Vision of Leadership

Leaders are needed to achieve a successful organization. Not only to undertake the routine activities such as resource allocation, directing and monitoring and build the organization, but furthermore to influence and communicate the vision and goals that already formulated to the followers or employees to give their willingness and commitment in order to fulfil the organization objectives (Mendonca, 2007). However, nowadays when everything is open and transparent, leadership itself will not good enough it needs to add ethics (Leigh, 2013). Ethics itself is a moral, values and principles that guide individual or organization behavior with respect to what goes right or wrong (Mihelic, 2010). Ethical behavior also means legally and morally acceptable to larger community (Trevino, 1986).

In the future, I have a vision to be a deontological leader. I want to achieve my objectives without ignoring any ethical principles. To be a deontological leader, I have to habituate myself to be discipline to the ethical conduct, rules and regulations that should be followed around me. By doing such things, hopefully will help me to create my deontological behavior in the future.

 

It means according to my opinion, to be successful in the future, a leader has to show strong commitment to ethics, not only focused on profit or target but also how to build relationship, respect and gain trust from people inside and outside the organization.

 

Insight from Colleagues as a Leader

As I learned about leadership, I got some feedback from my colleagues. The feedback is about communicating the task delegation, where I did not delegate the tasks to all members. I did that because i only delegate the tasks based on members who gave response to my announcement at that time. For my improvement as a future leader, I need to build more intense communication and more proactive to all group members.

 

Application of 4 Previous Blogs Themes (Reflection, Self-Awareness, Development and Future Teamwork in Professional Practice)

There are so many valuable lessons that I have learned from leadership that I can use to develop my vision of leadership and to support my career goals, such as:

  1. To be a good leader, skills and knowledge are important, but to make it complete, we have to add ethics in it, because ethics are also important to gain some respect and trust from our environment. We have to find balance between achieving goals without ignoring ethics/rules (Ethical Leadership – Blog 1).
  2. As we live in a globalization era, diversity is something that we have to adapt, especially in organization such as multi-national company where we have to work with people from around the world. To listen, recognize and respect are essentials to support our future career (Diversity and Team Management – Blog 2).
  3. To lead means to influence. The way we communicate our vision, do what we talk and behave in our daily activities constantly is the effective examples to give our influence on others. By giving good examples, it will create a respectful environment that can help us to collaborate and synergize in order to achieve our objectives (Analysis of Leadership – Blog 3).
  4. Last but not least, change is something that we cannot avoid in this present time (Mullins, 2016). To deal with change, first we need to identify our urgency, then discuss the urgency with others to get their opinion and synchronize the vision, next to communicate the vision is also important so we can identify barriers behind it, also find the solution to mitigate those barriers. The final step is to implement the change (Change and Resistance to Change – Blog 4).

Future Career Goals

My future career goal is to be a successful leader in financial service industry or regulator. It will be realized by having a good understanding of the financial service industry (from my educational background, working experiences and trainings), knowledge of leadership (which I learned at the moment from CULC) and opportunity to work in financial services industry or regulator. Hopefully I can implement all that I have learned in my workplace to support my goals become a successful leader one day.

 

Examples from Reflections of Experience and an Openness to Feedback

My example is Sir Richard Branson the CEO of Virgin Group. He is a very successful leader with his own leadership style. The way he respects his employees, his openness to changes and criticize, listen to employees needs and insight also his skills and knowledges in running his business has successfully deliver his current achievement. His passionate to help people become future entrepreneur, his believes that business serves greater good, his dedication to solve climate changes and conserve natural resources also support human dignity makes him a good example of modern ethical leader.

 

 

Learning Plan

I believe to be a good ethical and effective leader need much effort. It is a continuous and never-ending process of learning through everything around us. There will be something that always can be improved, and some gap that need to be fulfil. It is with big hope that someday I can achieve my vision of leadership.

  

References

 

Leigh, A (2013), Ethical Leadership, Kogan Page, London. Available from: ProQuest Ebook Central. [9 May 2017].

 

Mendonca, MKRN (2007), Ethical Leadership, McGraw-Hill Education, Buckingham. Available from: ProQuest Ebook Central. [9 May 2017].

 

Mihelic, K.K., Msc, Lipicnik, B., Phd and Tekavcic, M., Phd (2010). Ethical Leadership. International Journal of Management and Information Systems, 14(5), pp. 31-41. [9 May 2017].

 

Mullins, L.J. (2016), Management & Organisational Behaviour Eleventh Edition, Pearson [9 May 2017].

 

Trevino, L.K. (1986), Ethical decision making in organizations: A person-situation interactionist model. Academy of Management Review, 11 (3), 601-617. [9 May 2017].

 

Blog 4 – Change and Resistance to Change

Change Model and Steps Leaders Use to Lead Change Effectively

Change is an inevitable and constant feature. Like it or not, change happens. Change management is clearly needed for sustainable economic performance and competitiveness (Mullins, 2016).

 

According to Dr, John P. Kotter, there are 8 stage process in order to have an effective change management and to reduce resistance (Kotter, 1996):

  1. Establishing a sense of urgency;
  2. Creating the guiding coalition;
  3. Developing a vision and strategy;
  4. Communicating the change vision;
  5. Empowering employees for broad-based action;
  6. Generating short-term wins;
  7. Consolidating gains and producing more change; and
  8. Anchoring new approaches in the culture.

 

Critical Evaluation

Complexities

  1. High complacency makes more difficult to create a sense of urgency
  2. Major change is very difficult to accomplish, it needs a strong coalition and committee.
  3. Authoritarianism is impossible to break through all the resistance, without the bigger power behind it.
  4. Lack of communication commonly leads to the failure of change.
  5. Commitment from all levels to empower each other to accept the change is difficult to obtained.
  6. Attention to short-term wins is important to keep the momentum of change, inconsistency will decrease the spirit of change from all levels (Kotter, 1996).

Development

For the modern organization, by the rapid change happens at every environmental sector, change is a must. Therefore, there are needs of a continued sense of urgency, maintain good teamwork and communication between the top, medium and low management level, people who can create and communicate vision, and create an adaptive corporate culture (Kotter, 1996).

 

Purpose

There are purposes that kottler’s identified about those 8 stages (Kottler, 1996):

  1. stage 1,2,3 and 4 is the process to transform or defrost the old corporate culture;
  2. stage 5,6 and 7 is to introduce the new culture or practice;
  3. stage 8 is to implement the corporate culture change.

Example and Link to the Theory

Mr. António Horta-Osório, former Santander UK CEO. When in 2008 Santander wanted to establish a stronghold in the UK banking sector.

Santander UK’s strategy was to acquire a portfolio of heritage-centric UK financial institutions – Abbey National, Bradford and Bingley, and Alliance and Leicester (step 1 – creating a sense of urgency).

He builds a guiding coalition for change by ensuring that all stakeholders understand the needs of change from the old way to the new one. (step 2 – building a guiding coalition)

He creates a vision by embracing the new era in banking – a revolution, rather than evolution (step 3 – forming strategic vision and initiatives).

He identifies that forceful and careful management would be needed to integrate the systems, processes and people in the different organizations (step 4 enlisting volunteer army).

Those who were going to be impacted by the change were fully briefed; risks and issues were discussed and mitigated (step 5 – enable action by removing barriers).

He makes sure all employees did not just understand the change, but that they also embrace the change (step 6 and 7-, generate short term wins and Consolidating gains and producing more change).

By 2013, Santander UK had become one the country’s leading retail banks and one of the largest providers of savings and mortgages (step 8 – Institute change) (Caplen, 2011).

Debate

According to the Kottler’s theory, there are 8 sequence stages that has to be implemented to achieve an effective change, it can be argued that those stages only applied when an organization want to make a massive change, but when the changes is only for a certain particular area, the usage of those 8 sequence stages will require too much effort and time consuming. It needs to be simplified, because changes can happen rapidly due to the dynamic changes of the environment.

 

Resistance to Change Analysis (Individual and Organizational)

Resistance is a natural reaction to change, mostly a reaction against change (Clayton, 2016). Sometimes the resistance is credible when the organization has significant intangible capital or goodwill arising from their history of success (Dow et al, 2010).

 

Why individual resist to change?

There are 4 factors that can affect the individual resistance of change (Oreg, 2003):

  1. Routine needs; this type of person prefer stability than novelty;
  2. Emotional response; an emotional response to an impose change;
  3. Short-term focus; desire to stick to the plan already made than seizing opportunity; and
  4. Cognitive rigidity; a principle about not to change mind easily.

Beside those 4 factors, there are some other factors that makes individual resist to change, such as: inconvenience or loss of freedom, economic implications and fear of the unknown (Mullins, 2016).

 

For organization, some of the main reason for them resist to change are (Mullins, 2016):

  1. Culture or organization identity;
  2. To maintain stability;
  3. Cost for resources;
  4. Past contract or agreements; and
  5. Threat of power or influence.

Conclusion

Change is something that cannot be avoidable. It will happen whether we like it or not. To address changes, we need to identify the importance and the impact of the change. If it can bring positive impact to our organization in the future, then we can consider implementing it, because to bring change needs a lot of effort such as time consuming and sometimes can be costly.

 

 

References

Caplen, B. (2011). Antonio Horta-Osorio moves out of his comfort zone. The Banker. [6 March 2017]

Clayton, M. (2016), “Resistance To Change”, Training Journal, , pp. 16-19. [6 March 2017]

Dow, J. and Perotti, E. (2010). Resistance to Change. St. Louis: Federal Reserve Bank of St Louis. [6 March 2017]

Kotter, JP (1996), Leading Change, Boston, Mass: Harvard Business Review Press [Perseus]_Legacy, eBook Collection (EBSCOhost), EBSCOhost, [6 March 2017].

Laurie J. Mullins (2016), Management & Organisational Behaviour Eleventh Edition, Pearson [6 March 2017]

 

Shaul   Oreg, (2003), ‘Resistance to Change: Developing an Individual Differences Measure’ by Journal of Applied Psychology, Vol 88, No.4. [6 March 2017]

Blog 3 – Analysis of Leadership

Leadership Styles and Their Complexities

Leadership is an interpersonal influence (Tannenbaum et al, 1961) between one person to others to work together willingly, to give their commitment and maximum competence in order to completing tasks to achieve the organization’s goals (Jaques et al, 1994).

 

Organizations nowadays need leaders who effectively understand the rapid changing of global environment and its complexities. The success or failure of an organizations has been largely credited to the nature of their leadership style (Oladipo et al, 2013).

 

Theory and Model

There are 3 leadership styles that will be discussed in this blog. First is charismatic leadership, second is transactional leadership and the third is transformational leadership.

 

  1. Charismatic leadership; is a type of leaders that has the capability to influence his/her followers/subordinates positively by giving physical, emotional and intellectual connections (Alessandra, 2000). Charisma itself defined as a certain quality of an individual personality, by virtue of which he is set apart from ordinary men and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities (Webber, 1978).

 

Analysis

Charismatic leader needs a highly individual quality (Tucker, 1977), it not so much concerned with the theory, but more with the skills of how to motivate and inspire people. There are 3 dimensions that support charismatic leadership (Webber, 1978):

  1. Physiological dimension; is the personal and natural qualities embedded to an individual leader.
  2. Social dimension; are external factors that contribute to an individual rising to a position of authority and power.
  3. Relational dimension; is the relationship between the leader and followers.

 

Example

Richard Branson, the CEO of Virgin Group is one example of a charismatic leader. Branson has built his corporate image by participating his employees in every process. He believes that good ideas not only come from the boardroom, also he makes his employees become the central of his success. He creates a working environment with openness, tolerance of ambiguity, and curiosity and it succeed to help him accepting ideas and creativity from all levels. His openness and empathy to the employees has help him and his company achieving its goals.

 

Link to Charismatic Leadership Theory

Branson’s leadership style is implementing the 3 dimensions of charismatic leaders: physiological, social and relational dimensions.

 

  1. Transactional leadership; is a type of leaders that based on legitimate authority within the bureaucratic structure of the organization. It focuses on achieving goals, objectives, task and result, and organizational reward and punishments (Mullins, 2016).

 

Analysis

Transactional leader typically focus on the completion of the tasks and employee compliance. Mostly rely on what rewards and punishments provided by the organization to influence employee performance (Burns, 1978). One of its best uses is in multinational corporations where not all of the workers speak the same language. Once the structure and the requirements are learned, it is easy for workers to complete tasks successfully. This works because transactional leadership is simple to learn and does not require extensive training. The transactional approach is easy to understand and apply across much of an organization.

 

Example

John Pierpont Morgan (JP Morgan) whom successfully led the American financial community’s attempt to avert a general financial collapse following the stock market panic of 1907. He preserves the solvency of many major banks and corporations. Thereafter, Morgan concentrated on amassing control of various banks and insurance companies. Through a system of interlocking memberships on the boards of companies he had reorganized or influenced, Morgan and his banking house achieved a top-heavy concentration of control over some of the nation’s leading corporations and financial institutions.

 

Link to Transactional Leader Theory

With his knowledge and influence, John Pierpont Morgan successfully created a system that can be used by financial institutions that avoid them from collapse.

 

  1. Transformational leadership; is a process of engendering higher level of motivation and commitment among followers. The emphasis is on generating a vision for the organization and the leader’s ability to appeal to higher ideals and values of followers, and creating a feeling of justice, loyalty and trust. In the organizational sense, transformational leadership is about transforming the performance or fortunes of a business (Mullins, 2016).

 

Analysis

Transformational leadership happens when leader become wider and uphold the interests of the employees, once they generate awareness and acceptance for the purpose and assignment of the group, so when they blend employees to appear beyond their own self-interest for the good of the group (Bass et al, 1993).

 

Example

Sir John King, the chairman of British Airways. At 1987, He transformed British Airways with 3 major changes:

  1. From non-costumer service to become customer friendly;
  2. From loss to profitable company; and
  3. Creating new working environment as a winning team and a great place to work.

He motivates British Airways employees by giving them education and training about how to communicate the direction and increasing their capabilities. Performance appraisal also performed to ensure that the employees paid and measured based on their performances. The result, within 3 years, British Airways became extraordinary customer-focused, efficient and profitable.

 

Link to Transformational Leader Theory

Sir John King successfully transformed British Airways culture and employees’ behavior by generating new vision, giving values to the employees, and creating feeling of justice, loyalty and trust that makes all employees motivated to give their best performance for the company.

 

Debate

A good leader need to be consistent both in personality and behavior, also adaptable to changes that can influence their environment and decision making (Tannenbaum, 1961). To create consistency between personality and behavior is not easy, since leaders also human that controlled with their mind and sense which is vulnerable.

 

 

 

Conclusion for Future Leaders

For future leaders, you have to adjust your leadership style by identifying the urge of the company, needs of the employees and always innovate to fill the gap. Leading is about influencing, motivating and controlling. Consistency in personality and behavior also become important point because as a leader, you become a role model to your followers or subordinate.

 

References

 

Alessandra, T. (2000). Charisma: Seven Keys to Developing the Magnetism that Leads to Success, Warner Business Books, p.11. [4 May 2017]

 

Bass B. M. and Avolio B. J. (1993), Transformational Leadership and Organizational Culture, Public Administration Quarterly, 12, 113-121. [4 May 2017]

 

Burns J. M. (1978), Leadership, Harper & Row, New York. [4 May 2017]

 

Jaques, E., & Clement, S. D. (1994). Executive leadership: a practical guide to managing complexity. Cambridge, MA: Carson-Hall.

 

Laurie J. Mullins (2016), Management & Organisational Behaviour Eleventh Edition, Pearson. [4 May 2017]

 

Nanjundeswaraswamy, T.S. & Swamy, D.R. 2014, “Leadership styles”, Advances in Management, vol. 7, no. 2, pp. 57-62. [4 May 2017]

 

Oladipo K. S., Jamilah O., Abdul daud S., Jeffery L. D. and Salami D. K. (2013), Review of leadership theories and Organizational performances, International Business Management Journal, 7(1), 50-54. [4 May 2017]

Tannenbaum, R., Weschler, I. R., & Massarik, F. (1961). Leadership and organization. New York: McGraw-Hill.

Tucker, R. C. (1977). Personality and Political Leadership.Political Science Quarterly, 92 (3),  383-393. [4 May 2017]

 

Weber, M. (1978). Economy and Society: An Outline of Interpretive Sociology. G. Roth,& C.  Wittich (Eds.). Berkeley: University of California Press. [4 May 2017]

Blog 2 – Diversity and Team Management

Theories and Models of Team Formation and Leadership

Many organizations such as multinational company nowadays using work teams as functional tools to achieve their strategic goals. The reason of it is that the focused expertise of the team, in tandem with the capacity of each team members will contribute to build collective understanding of problems and will generate high quality solutions.

 

Diversity is an essential component of any civil society. It is more than moral imperative, it is a global necessity. Through diversity, everyone can gain benefit to achieve their fully potential for themselves and the community (Leadley, 2015).

 

One interesting theory about the team formation and management is the Belbin team role theory. Belbin performs observations and identifies behavior patterns and divides according to the identification of individual roles in the group. There are nine important roles defined:

  1. Plant

such role is termed because the role of the individual tends to instill something against the team. Individuals like these tend to be creative, can solve problems well in an unorthodox way. One by one the roles in the team are revealed.

  1. Monitor Evaluators

needed to provide a logical outlook, the overall assessment needed to raise group choices in a more real way.

  1. The Specialist

a dedicated individual and prides himself on having technical skills and specialist knowledge. Their center of concern is to maintain professional standards and to improve and sustain their field of science.

  1. The coordinator

needed to focus the team on the goals, chart each group member and delegate work well.

  1. Resource Investigator

provides an in-depth understanding of the bottlenecks in the focus of the group. This role provides insights from within and even different opinions that make the group more ideas and can bring the group more open and understood from the outlook of the team.

  1. Implementer

required to implement practical, strategic planning on the work steps that must be done and can bring the efficiency possible.

  1. The Completer Finisher

the most effective role in completing the team task, ending with perfection and avoiding the final mistake. This role instills high quality control.

  1. Team-worker

helps teams to familiarize themselves, using different ways of demonstrating various needs at work and completing on group coverage.

  1. The Shaper’s

encourages or challenges each individual to do the best, providing an important boost for each member of the group to keep moving and not lose focus or momentum (Belbin, 1996).

 

Why This Theory Developed and What is the Purpose?

Along with the rise of organization numbers that rely on work teams to bring out solutions needed for continuous business success, there has been increasing in study about how work teams should be managed in order to deliver high levels of performances (Kearney et al, 2009). By managing the people, improving their capability such as how to communicate and to cooperate each other, believed will give strong impact to the team performance (Bell, 2007).

 

Diversity is developed as a success factor strategy of leading companies. The purpose of this theory is to give strong competitive advantages to the company through its most important assets, which is the people (Romanenko, 2012).

 

Example

Stuart Gulliver the CEO of HSBC Plc, who has passion about diversity because he wants his colleagues to be themselves when they come to work (Gulliver, 2017). With history of financial trade between Asia and Europe for more than 150 years, HSBC employees lead seven global networks to promote diversity and make sure every employee feels included. HSBC believes that diversity has bring success to their business.

 

Link to Diversity Theory

HSBC approach to diversity and inclusion aims to increase and leverage diversity of thought to enhance risk management capability, improve workforce agility, drive innovation, remove barriers to success and grow markets. Considering multiple point of view ultimately helps HSBC to effectively anticipate and address the expectations of customers, people, shareholders and community. This principle in line with the Belbin’s theory that by optimizing team role can deliver high impact to achieving the company’s goals.

 

 

 

Debate/challenges

However, diverse team has challenge, when conflicts arose it will boost tension in the group and reduce performance (Prichard et al, 1999). Diverse membership team may encounter process losses and reduction of social integration in the presence of a conflict.

Conclusion and recommendations for future managers

Future managers are recommended to identify and discover the capability of each individual in his/her team. Delegating the right task to the right person will help the effectivity of team work performance. Having good communication between colleagues and cooperate each other without barriers such as seniority, gender and other factors will help to build strong and conducive working environment.

 

References

 

Belbin, RM (2010), Team Roles at Work, Taylor and Francis, Burlington. Available from: ProQuest Ebook Central. [3 May 2017].

Golembiewski, RT (1995), Managing Diversity In Organizations, Tuscaloosa, Ala: University Alabama Press, eBook Collection (EBSCOhost), EBSCOhost, [3 May 2017].

HSBC (2017), HSBC Diversity and Inclusion Policy, available from: http://www.hsbc.com/our-approach/diversity-and-inclusion, [3 May 2017]

 

Kearney, E, Gebert, D, & Voelpel, S (2009), ‘When And How Diversity Benefits Teams: The Importance Of Team Members’ Need For Cognition’, Academy Of Management Journal, 52, 3, Pp. 581-598, Business Source Complete, Ebscohost, [3 May 2017].

 

Leadley, S. (2015), “Reflections on Diversity and Organizational Development”, Reference & User Services Quarterly, vol. 54, no. 4, pp. 6-10. [3 May 2017]

 

Nielsen, S. (2010), Top Management Team Diversity: A Review of Theories and Methodologies. International Journal of Management Reviews, 12: 301–316. [3 May 2017]

 

Prichard, J.S. & Stanton, N.A. 1999, “Testing Belbin’s team role theory of effective groups”, The Journal of Management Development, vol. 18, no. 8, pp. 652-665. [3 May 2017]

 

Romanenko, A (2012), Cultural Diversity Management in Organizations: The Role of Psychological Variables in Diversity Initiatives, Diplomica Verlag, Hamburg. Available from: ProQuest Ebook Central. [3 May 2017].

 

Yeager, K.L. & Nafukho, F.M. (2012), “Developing diverse teams to improve performance in the organizational setting”, European Journal of Training and Development, vol. 36, no. 4, pp. 388-408. [3 May 2017]

Blog 1 – Leadership & Ethics

Leadership and Ethics

Leadership is a series of activities in the form of a willingness to influence the behavior of others in certain situations in order to be willing to work together to achieve the goals set (Yammarino, 2012). In running leadership, the movement of people must follow the path of organizational goals that are to be achieved (Hays, 2012). A leader should know and have values ​​and ethics in leadership. In an organization, leadership is considered good if the leadership functions are run on ethical principles. Ethical leadership will make the working atmosphere in the organization more comfortable and avoid vertical conflicts or horizontal conflicts (Grojean et al, 2004). For, the actors of the organization aware of the existence of guidelines and guidance in the form of ethical principles that limit the movement of attitude and act.

 

Ethical Leadership Challenge

However, the biggest challenge of ethical leadership is rationalization (Mullins, 2016). When it comes to business, sometimes it would be easier to loosen our ethical conduct than to lose opportunity to gain profit by doing rationalization, especially when everybody around us are doing it, for example there is a new regulation for a construction company to update their safety equipment. Instead of adding costs to buy new equipment, they prefer to ignore the regulations, because they look to their competitors are not updating their equipment.

 

Deontological

There are 2 principles that guide our moral judgement in ethical leadership, those are deontological and teleological. First, deontological is a principle that emphasize the obligation of a leader to follow universal moral rules, regulation or generally accepted principles to determine moral behavior (Xu et al, 2015).

 

Example

James E. Burke, former CEO of Johnson & Johnson (J&J) company struggled when Tylenol-poisoning crisis in 1982. The product was created by J&J’s subsidiaries called McNeil Consumer Products, caused death of seven people in Chicago. At that time, Burke decide to provide full disclose to the media and withdraw all Tylenol capsules from the market. J&J revealed all findings that they discover during the investigation to the media. Some of this evidence caused lawsuit to the company. This ethical stand was expensive in the short term, but ultimately perpetuated a successful result both for the company and its customers (Gini et al, 2013).

 

 

 

Link to the Deontological Theory

James E. Burke gave priority to ethical conduct and responsibility to the public by revealing their investigation evidence to the media and withdraw all products from market rather than keeping the information and continuing to sell the products. It brings more costs to the company for short term period, but gains trust from their customers for a long-term period.

 

Debate

From this case, we can learn that deontology or being ethical sometimes can be costly for the company. Pressure to achieve targets or profit can influence leaders to ignore ethics. It will be difficult for some leaders to choose between being ethical or bringing profit to the company. The challenge is how to make it balance.

 

Teleological

Second is teleological or consequentialism which is a principle that believes that an action can be said to be good if it brings benefits to as many community members as possible, or in very famous terms. Thus, the measure of action is seen from the consequences of the treatment, or the purpose of the action, whether it is beneficial or not (Brady et al, 1996).

 

Example

One example for teleological is the saving and loan crisis that happened in US at 1980’s. Michael Milken, leader at New York investment bank called Drexel Burnham Lambert (Fischel et al, 1996). Milken believes that there was a great capital reserve that still untapped available to entrepreneurs under the junk bonds. By 1987, the value of these bonds had soared from nearly nothing to $200 billion. Junk bonds had been heavily bought by savings-and-loan companies; when junk-bond prices fell, many of these S&Ls went bust, leading to a government bail-out that cost taxpayers billions of dollars. Drexel Burnham Lambert went bust, too. Blame for much of this was laid at Milken’s cell door, and worse was to follow.

 

Link to the Teleological Theory

Milken’s objective was to help his company and other small entrepreneurs to grow their business. He achieved his objectives by creating junk bonds and sold it at the market by promising a high interest return which he already knows that it was impossible to get. He ignores others risks in order to achieve his objectives.

 

Debate

Milken’s objective was to help making profit for Drexel Burnham Lambert Bank and other small entrepreneurs. However, this challenges the deontological principle, but justifies the teleological principle that by slightly decreasing his ethical conduct and using his knowledge creating new markets, he can help Drexel Burnham Lambert other small entrepreneurs to grow.

 

Best Practices

As conclusion, from 2 examples above for new managers or leaders when entering industries, make sure that you have enough knowledge about the industry itself, such as the regulations, ethical conduct and other technical knowledge. Targets are important, but the process of how to achieve it is also important. Key performance indicators (KPIs) and employee/customer satisfactory survey are mostly used to measure our leadership success, in terms of financial and non-financial. Achieving target by performing the process in accordance with the rules and ethics are the key success factors to have a sustainable ethical leadership in an organization.

 

References

 

Brady, F. N., & Wheeler, G. E. (1996). An empirical study of ethical predispositions. Journal of Business Ethics, 16, 927–940. [30 April 2017]

 

D.L. Fischel; G.C. Leef (1996), Payback: The Conspiracy to Destroy Michael Milken and His Financial Revolution, available from: https://fee.org/articles/payback-the-conspiracy-to-destroy-michael-milken-and-his-financial-revolution/, [30 April 2017]

 

F.J. Yammarino (2012), Leadership, In Encyclopedia of Human Behavior (Second Edition), edited by V.S. Ramachandran,, Academic Press, San Diego, 2012, Pages 517-524, viewed 29 April 2017.

 

Gini, A. & Green, R.M. (2013), 10 Virtues of Outstanding Leaders,, Leadership & Character, John Wiley & Sons, Inc. [8 May 2017]

 

Hays, R (2012), ‘Leadership’, Clinical Teacher, 9, 5, pp. 345-347, Academic Search Complete, EBSCOhost, viewed 29 April 2017.

Hooker, B (2012), Developing Deontology, Wiley, Hoboken. Available from: ProQuest Ebook Central. [29 April 2017].

 

Mullins, L.J. (2016), Management & Organisational Behaviour Eleventh Edition, Pearson [6 March 2017]

XU, Z.X. and MA, H.K. (2016). How Can a Deontological Decision Lead to Moral Behavior? The Moderating Role of Moral Identity. Journal of Business Ethics, 137(3), pp. 537-549. [29 April 2017]

My Vision of Leadership

After I learned about leadership, I found that many valuable lessons that I can gain from it. My vision is to be a good and ethical leader that can bring good values to my environments. Listen to others needs, deliver idea through a good communication skills, work effectively and always develop my knowledge would be the keys to achieve my vision. Through many theories of leadership there are some theories that I think will be my principles to be a good leader.

First is Deontological (rules) The theory of deontology states we are morally obligated to act in accordance with a certain set of principles and rules regardless of outcome (process oriented) (Immanuel Kant 1788) as I mentioned in my first blog (Leadership and ethics), I choose Deontological because i believe that in everything we do, if we follow the rules, the ethical conduct or the generally accepted principles, then it will bring us the best and safe result. The importance of following the rules is to protect us from future risks that can harm us.

Second is the 4V model (Vision, Voice, Values and Virtue). This 4V model is an ideal principle to be followed to be an ethical leader. It is about how to communicate your vision as a leader to your environment to be converted as values and then create a virtue to be followed together to achieve the vision.

Third is the theory about how to manage team in diversity. Diversity leads to information variety, combining different and fresh views, which contribute to a more innovative posture (Milliken and Martins, 1996). In this vein, Bunderson and Sutcliffe (2002) find that functional diversity is positively associated with information sharing, when team members have a broad experience in a range of functional areas. It is good to have a team with diversity because we can have views from many different angles or point of view. In this globalization era, diversity is something that unavoidable and have to be managed.

The last but not least is be not afraid to change. An important feature of the successful organization is their ability to adapt to changes. In an organization, to perform well and develop, the process of change must be harmony with the organizational culture (Mullins, 2016). For many change leaders, resistance to change represents a big problem, something that needs to be overcome, an assumption which continues to be popular today (Furst & Cable, 2008; Harvard Business School, 2005). The keys for change are how to reduce resistances, communicate the vision of change and empower the employees.

One figure that inspires me a lot about leadership is my former CEO. Having an exceptional background as professional consultant and directors at some financial institutions, made him become the youngest CEO (early 40’s) in my institution where I worked (governmental financial services regulator). To be a new comer and relatively young leader in a bureaucrat institution is not easy. There are challenges that he faced such as how to lead some people which are older, different backgrounds and might be have more expertise and also have to synergize all department in order to help him to make decisions. One project that makes him had an outstanding performance was a divestment of one bank that had been rescued by the government. This was a crucial project, instead of the tight dateline given by the regulations, it also very vulnerable with lawsuit and this project already become a political issue in the country. In sum, he succeeds to lead the divestment project with an optimal value and spared from any lawsuit. Think before act, follow the rules and mitigate the risks were the keys of his success. Now he become the CEO of the largest bank in my country (Bank Mandiri). His name is Mr. Kartika Wirjoatmodjo (here is the link: http://www.bankmandiri.co.id/corporate01/about_direksi.asp).

As I learned from my superior, I also learn from my colleagues, especially in the MBA program in CULC. I have got some feedback from my colleagues about how was my leadership during the leadership class. The feedback is about the task delegation, where I did not delegate the tasks to all members and I did it because of I think I only delegate the tasks based on the group members who gave response to my announcement at that time. For my improvement, I have to build more intense communication to all group members, and more proactive to ask them about the tasks delegation.

In the future, I want to build my career in financial services industry or regulator. To work in this industry, we need to have some expertise in some skills such as good understanding and knowledge about the financial services industry, good communication skills, ability to learn fast and to work in dynamic and diverse environment. Through my MBA program in CULC, I am now developing myself to those skills that I need to be ready to work in financial services industry. Not only the skills that I already mentioned above, but also other valuable skills such as problem solving, teamwork and leadership.

 

References

Daniela Bradutanu (2012), Identifying the Reducing Resistance to Change Phase in an Organizational Change Model, Available from: Locate, http://journals.univ-danubius.ro/index.php/oeconomica/article/view/1270/1108 [10 March 2017]

Laurie J. Mullins (2016), Management & Organisational Behaviour Eleventh Edition, Pearson [15 March 2017]

Bank Mandiri (2017), Direksi, available from: http://www.bankmandiri.co.id/corporate01/about_direksi.asp [15 March 2017]

Bo Bernhard Nielsen and Sabina Nielsen (2013), Top Management Team Nationality Diversity and Firm Performance : A Multilevel Study , available from: Locate,  http://onlinelibrary.wiley.com/doi/10.1002/smj.2021/epdf?r3_referer=wol&tracking_action=preview_click&show_checkout=1&purchase_referrer=openurl.ebscohost.com&purchase_site_license=LICENSE_DENIED, [6 March 2017]

Katrin Talke, Soren Salomo and Alexander  Kock (2011), Top Management Team Diversity and Strategic Innovation Orientation: The Relationship and Consequences for Innovativeness and Performance, Available from: Locate,  http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=2667b9a9-8cd5-4195-9097-f8d4dabe37db%40sessionmgr4008&vid=1&hid=4104 [6 March 2017]

Chartered Management Institute (2015), The Greatest Examples Of Change Management In Business History, Available from: http://www.managers.org.uk/insights/news/2015/july/the-5-greatest-examples-of-change-management-in-business-history [10 March 2017]

Daniela Bradutanu (2012), Identifying the Reducing Resistance to Change Phase in an Organizational Change Model, Available from: Locate, http://journals.univ-danubius.ro/index.php/oeconomica/article/view/1270/1108 [10 March 2017]

Change and Resistance to Change

This blog will discuss about change and resistance to change. The content of this blog will consist of the role of leaders in change, how change models define the steps leaders use to lead change effectively, evaluation of change models including development and purposes and organizational example of resistance to change. This blog will also share the authors point of view and invite all readers to share and discuss about their thought resistance to change.

In order to survive in an increasingly competitive global environment, an organization must be able to pay attention to its contingency development and effectiveness. An important feature of the successful organization is their ability to adapt to changes. In an organization, to perform well and develop, the process of change must be harmony with the organizational culture (Mullins, 2016).

There are two main sources of organization change, first is from inside the organization such as internal organization conflict, financial problems, reorganization, and changes in culture/social environment. Second is from outside the organization such as global environment, new technology, legislation/regulation, political and market forces (The Virtual Learning Material Workshop, 2011). And of course, every change would generally meet resistance from the employees. For many change leaders, resistance to change represents a big problem, something that needs to be overcome, an assumption which continues to be popular today (Furst & Cable, 2008; Harvard Business School, 2005).

Resistance to organizational change is an inevitable phenomenon, because people are asked to reexamine and modify their behavior, which breeds resistance. There are two factors that caused resistance to change. First is individual resistance such as: selective perception, habit, inconvenience or loss of freedom, economic implications, security in the past and fear of the unknown. Second is organizational resistance such as: organizational culture, maintaining stability, investment in resources, past contracts or agreements, and threats of power or influence. To ensure a successful change implementation, change leaders must effectively overcome their subordinates’ resistance to change (Agboola & Salawu, 2011; Burnes, 2004; Kotter, 1996; Prediscan, 2004). If people know why things are changing, they are more willing to join the process (Ford & Ford, 2010).

There are 2 change models that will be explained by the author, the Kanter’s and Kotter’s change model. In Kanter’s model there are three stages relate to reducing resistance to change:

  1. Line up political sponsorship

All members of an organization must be involved in the organizational change process. Leader alone cannot bring about large scale of change, which is why a change effort must have broad based support throughout an organization.

  1. Develop enabling structures

In this stage enabling structures are designed to facilitate and spotlight change from the practical, trainings programs for employees. Employees are empowered, but before that, they are send for trainings to gain the necessary knowledge. The effort reward is also very important, being it financial or non-financial.

  1. Communicate, involve people and be honest

As a potential tool for overcoming resistance to change, the author recommends an open communication between change leaders and organization personnel, an active involvement and disclosure. People accept a change more quickly when they are given all the information, know the advantages and disadvantages, and feel part of the process.

Kotter (1996) model also makes references to the importance of reducing resistance to change, the ways recommended being identified in the following four stages:

  1. Form a powerful coalition

Stage which implies identifying and attracting the key leaders of the change process and encouraging the team members to work together.

  1. Communicate the vision

The author describing this stage as requiring multiple conversations. The vision must be frequently and powerfully communicated, embedded in everything the change leaders does. Employees need to know exactly what is happening and how their actual situation will change.

  1. The empowering

This stage implies getting employees responsible, giving them both the authority to perform a task and necessary knowledge and tools. It is considered that employees are less resistant if they have all the necessary information and are rewarded accordingly.

  1. Generating short-term wins

Refers to the fact that any gain, being it small or big, should be rewarded and communicated to the other members. Thus, people become more motivated to engage in the process, because their involvement will be associated with a potential gain.

A constant two-ways communication and employee’s empowerment represent two key ways to attract and involve staff in implementing a new change (Gerhard, 2004).

Example for change leader is former Santander UK CEO Mr. António Horta-Osório. When in 2008 Santander wanted to establish a stronghold in the UK banking sector, its strategy was to acquire a portfolio of heritage-centric UK financial institutions – Abbey National, Bradford and Bingley, and Alliance and Leicester.

Grupo Santander chairman Emilio Botin felt, however, that the legacy in these UK financial institutions, dating as far back as 1849, had left them incapable of change and, therefore, unable to evolve and grow.

In buying these traditional UK financial institutions and unifying them under the Santander brand, Santander aimed to break down their engrained processes and turn them into a formidable retail bank.

To do this, they would need a fast-track, systems-led banking model. Only this could bring clarity, efficiency and best practice to institutions that had become totally entrenched in ‘their way’ of doing things. For incoming Santander UK CEO António Horta-Osório, his focus would be ensuring that all stakeholders grasped the value of shedding ‘old ways’ and embracing the new era in banking – a revolution, rather than evolution.

There were many opportunities during the change programme for cultural misunderstandings. Counter-intuitively, this can be particularly noticeable when national or linguistic similarities give a false illusion of commonality. In fact, the cultures of the UK acquisitions were very different, they had developed as regional building societies and their footprints, portfolios and client bases were each unique. This meant that forceful and careful management would be needed to integrate the systems, processes and people in the different organisations.

Those who were going to be impacted by the change were fully briefed; risks and issues were discussed and mitigated. In-branch teams, for example, were prepared for a variety of customer responses through the transition phase. Even those who werenot likely to be impacted by consolidations were given clear messages about the future. The aim of this process was to make sure they didn’t just understand the change, but that they embrace it.

In January 2010, Santander UK was launched against ferocious economic and banking headwinds. By 2013, it had become one the country’s leading retail banks and one of the largest providers of savings and mortgages. And António Horta-Osório had been moved to to lead change at another, even bigger, banking institution: as CEO of Lloyds Banking Group.

As conclusion, it is not easy to be a change leader that leads an organization change, it needs participation from the whole part of the organization. The key is how to manage the resistance of change and to have a good communication to all subordinates.

 

References

Chartered Management Institute (2015), The Greatest Examples Of Change Management In Business History, Available from: http://www.managers.org.uk/insights/news/2015/july/the-5-greatest-examples-of-change-management-in-business-history [10 March 2017]

Daniela Bradutanu (2012), Identifying the Reducing Resistance to Change Phase in an Organizational Change Model, Available from: Locate, http://journals.univ-danubius.ro/index.php/oeconomica/article/view/1270/1108 [10 March 2017]

Mihaela, Valentina; Bratianu, Constantin (2012). Management & Marketing, Available from: Locate, http://search.proquest.com/openview/249c2bf4528c30f20fbef3651e76f55b/1?pq-origsite=gscholar&cbl=226548 [10 March 2017]

Laurie J. Mullins (2016), Management & Organisational Behaviour Eleventh Edition, Pearson [6 March 2017]