Resistance to change is one of the toughest dimensions within change management to overcome and as well as handle in an organisation for any kind of leadership. This study focusses on examining the influence of transformational leadership on employee's resistance to change during new technology implementation and up-gradation in the organisation. The study concentrated on middle management employees in a that specialises in production of specialty chemicals (Resins) through a survey of two questionnaires. Focus of one questionnaire was to identify the leader's style already prevalent in the middle management level and the other to find out factors that cause resistance to change in employees. The results revealed that employees described their leader to be transformational who had positive influence on them while handling change but in areas like employee development, tolerance to change and employee performance, significant dissatisfaction was shown.
Key words: transformational leadership, change management, resistance to change
INTRODUCTION
"The price of greatness is responsibility" as rightly said by Winston Churchill perfectly suits the term leadership (Edberg, 2007). Leadership has been considered as a toughest play but has been in demand till date. There has been numerous kinds of leadership style evolving some of them still prominently employed. Among them, transformational leadership appeared as a good choice for research because of its distinctive characteristic feature it possesses in transforming its followers in achieving positive outcomes and creates positive influence beyond the usual process of just following the directions of the leader. This kind of leadership is all about sparking innovative thinking, establishing a compelling vision, persuading and influencing people who may not easily agree. (Roberto, 2011) In addition to these, this leadership welcomes changes and constantly involves in changing trends in the organisation according to the external demand in terms of competition and advancement.as.
Leaders under this style are however charismatic that drives an organisation towards change which is the primary focus. In the words of David Herold, transformational leadership is strongly related to followers' change commitment than change specific leadership practices, especially when change has significant personal impact. For leaders who were not viewed as transformational, good change management practices were found to be associated with higher levels of change commitment. (Herold et al., 2008)
It is well understood that change in the organisation does not impromptu. Often symptoms of change occur without leaders noticing them and situations where the performance of a leader fails, it can also trigger the need for change. (Anderson & Anderson, 1953)
While it's been said that a transformational leader inspires others to follow his vision, he also encourages identifying their problems and proposing new solutions. Through this approach, he typically is capable to involve everyone in the organisation during the change process. Under such a style, workers usually are never punished for their views and their intellectual contributions to business are valued (Hardt, 2003) problems such as resistance to change in employees are frequently encountered, particularly during the implementation of new technology in the organisation or technology up-gradation.
One of the most common limitations encountered under transformational leadership is the employee's resistance to change. Although several specific types of change resistance has been studied (resistance to the content of change and resistance to the process of change) while dealing with employees during major change process in the organisation, it is interesting to study and know the impact of transformational leadership on employee resistance to change during any technology up-gradation and implementation. Transformational change requires the leaders to attend to content (external, impersonal) as well as people (internal, personal). (Anderson & Anderson, 1953)
This research would study about the influence of transformational leadership on employee resistance to change during technology implementation and up-gradation. This study is carried out in an organisation which is a global leader in specialty chemicals, and a broad range of other advanced specialty products. This organisation is a global leader specialising in specialty chemicals, mainly high-performance resins, silicones etc and serves the industrial markets through a broad range of thermoset technology & specialty products.
Technology is an integral part of this organisation as it delivers science based solutions by linking custom technology platforms to opportunities for customers. Primary technologies are employed in the development of products such as Quartz, Ceramics, Acrylic Monomers and Epoxy Resins etc. Technology and chemicals conveys a clear understanding of the rate of dependence on each other especially when its operating globally and demands constant up-gradation and new technology implementations to sustain as a global player and to cater to varied market demands.
Studying employee's perception of change in such organisation where new technology or technology up-gradation is a frequent and commonly encountered scenario, would be beneficial for both the company and as a researcher.
CHAPETR 2: AIMS AND OBJECTIVES OF RESEARCH:
The aim of the entire research is to study the influence of transformational leadership on employees' resistance to change during technology implementation and up-gradation.
OBJECTIVES:
1. To critically analyse the reasons for employee's resistance to change during technology implementation and up-gradation at middle management level.
2. To examine the practices used under transformational leadership in handling employee resistance to change during new technology implementation and up-gradation.
3. To identify the effects of transformational leadership on employees in handling resistance to change.
4. To investigate the changes employees undergo at individual level under transformational leadership during technology implementation and up-gradation.
CHAPTER 3: LITERATURE REIVEW - INTRODUCTION
The current scenario of the business market demands continuous & effective changes as of result of heavy competition in the form of innovations and performance levels in employees to ensure survival of the fittest. This literature study focuses on leadership in the context of change management. The study focusses on transformational leadership and its relation to resistance to change in employees particularly during technology up-gradation and implementation in the organisation.
3.1 LITERATURE REVIEW
Transformation is a radical shift from one state of being to another that includes a shift in culture, mind set and behaviour (Anderson & Anderson, 1953). It is also defined in terms of hoe the leader affects his followers who trust, admire and respect their transformational leader (The Transformational leadership Report, 2007). According to Bernard bass, leaders transform followers in three ways:
Increasing their awareness of task importance and value.
Getting them to focus first on team or organisational goals rather than their own interests and
Activating high order need (The Transformational Leadership Report, 2007)
Other distinctive characteristics of this leadership are:
INSPIRATIONAL MOTIVATION:
The followers under this leadership are guided through challenges and are always ensured that they work enthusiastically with a positive outlook. And they would be constantly reminded of their vision, mission and values.
INTELLECTUAL STIMULATION:
Followers are encouraged to be innovative and old practices are abandoned if found ineffective. The key focus is on identification of the problem rather than blaming the source of the problem.
IDEALISED INFLUENCE:
"Practice what you preach" is usually the style followed by transformational leaders. This helps gain trust and respect from his followers.
INDIVIDUALISED CONSIDERATION:
Under this leadership, employee's individuality is considered based on their talent and knowledge. In addition to this, their decision making ability is equally encouraged. (MANAGEMENT STUDY GUIDE, 2008)
Apart from these unique characteristics that this leader possesses, another important aspect that is demanded of any leadership would be efficient communication. This is most crucial as based on the signals/ messages given by the leader practices are followed. But surprisingly transformational leader have the ability to reach follower effectively to buy in to work towards the vision. (Oreg & Berson, 2011). The traits of the leader are as follows:
• Creativity
• Team orientation
• Appreciation of others
• Teaching
• Responsibility
• Recognition (Simic, 1998)
Though this leadership holds many positive attributes that are visible, it has also faced criticism on its potential to abuse power. It has been argued that transformational leadership do motivate followers through strong emotions regardless of the effects on followers and not necessarily attend to positive moral values (Hay, 2006l). Nevertheless, the strength of this leader strongly emphasises on associates needs and values (Hall et al, 2008). However it also makes use of impression management and lending itself to amoral self-promotion by its leaders. (look onlinearticle)
As far as relationship between transformational leader and his followers are concerned, followers have a strong personal identification with the leader, a shared vision and work collectively for the benefit of the group. (Kelloway et al, 2003) Though there are no specific steps followed by the followers, transformational leaders link development of the organisation with the personal development of every follower and also offers promotional opportunities. (bass&Avolio)
This characteristic difference between transformational leader from other leadership styles particularly charismatic is where blind obedience & habituated sub-ordination is evident. (Kent et al, 2001)- rephrase
Followers of transformational leaders are encouraged to think on their own. This ensures the employee's involvement in his work by creating his own goals, improves his decision making capabilities and increases his job satisfaction & performance. This eventually contributes to reduced absenteeism (Gafoor et al, 2011).- rephrase
In addition to this, transformational leaders generate awareness to look beyond self-individual interest & focus on the team's development & well-being (Krishnan, 2004). Despite such traits, it has been criticised for omitting important behavioural in link with effective leadership known as "Influence behaviour". This refers to be the manner in which a request is presented. This is very significant as it forms a check on the impact it creates on the outcome the requirement. The target of the request could be resistant, committed or resistant. (Charbonneau, 2004)
Although, Idealised influence" is an element of transformational leadership, it is still successful or restricted only to upper level employees and fails with middle level employees in practice. The reasons could be constraints in the form of structure, culture communication system, limited authority, regulations and decision making etc. (Bruch & Walter, 2007)
Transformational leaders are also thought/ believed to exert additional influence by broadening and elevating their follower's goal and exudes confidence in them to perform beyond expectations. Whereas transactional leaders who exert influence through goal setting, providing feedback, rewards for accomplishment is in contrast to transformational leadership style. (Dvir et al, 2002)
CHANGE AND TRANSFORMATIONAL LEADERSHIP:
"Managers are people who do things right, while leaders are people who do the right thing" (Bennis, 1997).Change and transformational leadership is quite synonymous with each other. As this leadership style encourages new practices, development is seen consistently when welcoming changes. Furthermore, transformational leadership was found to be strongly related to follower's commitment to change than change- specific leadership practice, especially when change has a personal impact (Herold, 2008). But certain shortcomings limit the leader's ability to define the required change and its outcomes. These include leaders not receiving the right signals for change or act on the change process without understanding its implications (Anderson & Anderson, 1953). Some of the factors that cause organisational change could be:
1. Challenges in growth, especially global markets
2. Challenges due to economic downturns and tougher trading conditions
3. Changes in strategy
4. Technological changes
5. To learn new organisation behaviour and skills
6. Competitive pressures (CIPD, 2011)
The greatest assets an employee could have to lead his workforce during a phase of change are trust and credibility as these alone could contribute to success of the organisation. In the scenario of change being constant, when concern is high and trust is low in leadership, a breakdown of traditional communication becomes necessary. (Wojtecki, J,G. et al, 2000)
By displaying appropriate behaviour at the appropriate stage in the transformation process, transformational leaders, charismatic and visionary leaders could successfully change the status quo in their organisation. Such leaders undertake the task of developing an appealing vision for the future, when the visibility of old ways stops working. (Eisenbach et al, 1999)
The task of making the employees to buy-in & accept change is to make them understand 'why' it is happening according to Bruce Temkin. Under his observation, most effective leaders demand three key characteristics that include
1. Communicate 'why'
2. Model desired behaviours
3. Reinforce change
Most of the time, changes can result in failure because of under- communication. Ideally, through positive response from followers, need for change in the organisation and good future would be benefited. (Temkin, 2011)
Transformational leadership and change has a very strong impact on one another and work hand in hand through the characteristic feature of "Individualised Consideration" which is related to follower's innovation and implementation of behaviour. The leader oversees his follower's development taking in to consideration his personal feelings or emotional needs (Michaelis et al, 2010).This in turn effectively stimulates him in welcoming change as an opportunity to learn, develop & achieve to increase his performance and creativity. (Wang & Howell, 2010)
CHANGE AND ACCEPTANCE:
Leaders play a crucial role in the system during organisational change by co-ordinating areas like building structure, introducing rewards and managing relationships etc. This calls for changes in terms of behaviour which needs to be reinforced time & again Temkin says, even high performers should not be promoted if they are not proactively supporting change. (Temkin, 2011)
A commonly encountered but complex hurdle, faced by a transformational leader during the phase of change is resistance to change. According to Dianne Waddell, resistance to change has long been recognised as a critically important factor that can influence the success of an organisation's effort to change (Dianne weddell).It is also said that Kotter & Schlesinger, organisational change efforts often run in to some form of human resistance. (Kotter & Schlesinger, 2008)
Resistance to change needs to be addressed since its proper management is vital for the success or failure of the process. Resisting changing is understood that it any formula that hinders the process at its beginning or its development, aiming to keep the current situation. (Del Val & Fuentes, 2003)
Strong leadership is highly essential during organizational change to realise the significance of committed and effective workers than money as a solution to all problems (Francis, 2007). And leadership demands organisation to overcome its challenge and ensure proactive strategy to address change. Transformational leadership is said to be positively related to job satisfaction particularly when employees demonstrated openness to change. (Bommer et al, 2005)
During a technological up-gradation and implementation, irrespective of leadership style, the leader would have to face an episode of resistance to change from his employees. The basic reason behind resistance to change could be because they feel threatened, particularly when they see change as imposing hardship. (Folger & Skarlicki, 1999)
As technology is prone to change and influences living conditions of individual and groups in the organizations, resistance to change is a natural consequence to be faced. It is well known that technology, labour and capital are inter-connected as some technologies employ a lot of labour while some use more of their equipment and capital. The motivation the individual receives to welcome such a change determines the extent of its identity and his readiness to innovate for organizational development.(check ydays articles bookmarked-24th aug)
New technologies need new skills. When employees are not used to changes in the nature of their jobs, when they are adapted to using similar skills on better machines, not qualitatively different even a ten year old technology when introduced perceived by many as new. The understanding of technology is narrow, not dynamic. For example in some European companies, machinery and equipment are changed within three years preparing the employees for change. However, the scenario is different as some companies in India lay emphasis on self-reliance. These considerations also governed industrial and economic policies of the country. (Dogra, 2010)
New technologies and technological up-gradation require knowledge, training that might be intensive and change in attitude towards such training programmes. In most cases multiple skill development are encouraged to improve work efficiency. This process of change requires interdependence and flexibility in operations making co-operation of employees a key requirement during such a change process. Many companies like Steel Authority of India, ITC, ABB, Eicher and others have had to take up programmes to involve employees both at the collective and individual levels. The aim of the Programme was to develop
• A level of trust in management
• Conviction among employees that the management is making genuine efforts to improve the position of the company.(Dogra, 2010)
Studies have indicated that the technological improvements/changes lead to improved productivity, lower costs and better work environment. The purpose of introducing new technology or technology up-gradation may vary from one organisation to another, most likely could be trigger point in response to change in market conditions. (Gurtoo & Tripathy, 2000)
Success of any new technology depends on the extent to which the workforce is willing to adapt to the technological and organisational changes. This proposes that one can predict technology acceptance of employees by knowing their behaviour, which in turn are influenced by attitudes, perceived usefulness of the technology and ease in usage. It was found that significant and positive correlation exist between meaningful/ interesting job and technology, indicating that introducing new technology introduction does influence how the employees feel at work. Any technological change tastes success only through continuous and consistent communication with the employees, sharing both developments and concerns on the business front and the need for new technology implementation and its implications on employees.(Gurtoo & Tripathy, 2000)
When new technology / up-gradation become mandatory to an organisation, it can also leave the employees frustrated. Training professionals organised by the organisation require workers to invest more time and efforts to adapt, learn the functionality & technicality of its usage at a quick pace. When this interferes with other responsibilities of the employee, it results in frustration and increased resistance to change. (Burley, 2012).
At the same time as rightly put by Lance Haun, it only takes a grim determination to force oneself consciously to interact with each new wave of technology, no matter how insipid it appears(Haun, 2011).Successful technological advancement could be ensured only with the combination of effective training & development and employee involvement (Burley, 2012). It is also said that adaption of new technology and up-gradation could be a challenge for the majority of workforce (adult). The focus is on assimilating what is known much quicker and adapting to unknown much slower. (Haun, 2011)
Looking in to the words of Robert kegan & Lisa laskow, resistance to change does not reflect opposition, nor is it merely a result of inertia. Instead even if they hold a commitment to change, many employees could unwittingly apply productive energy towards a hidden competing commitment which appear to be resistance but it is in fact a type of personal immunity to change. (Kegan & Lahey, 2001)
Thus, studying the effect on employees when their organisation undergoes change process, particularly technological change, when under transformational leader would help us gain a deeper understanding of change management.
4. RESEARCH DESIGN & METHODOLOGY- INTRODUCTION
The research objectives are set and to study the theory of quantitative research and data collection methods. The advantages and disadvantages of this type of research are also discussed. This would also include the strategy and quantitative research method chosen and employed in the industry.
In the end the rationale behind how the research question are linked to the objectives., effort has been taken to demonstrate the rationale of how the research questions used are linked to the research objectives.
4.1 RESEARCH QUESTIONS AND OBJECTIVES
AIMS AND OBJECTIVES OF RESEARCH:
The aim of the entire research is to study the influence of transformational leadership on employees' resistance to change during technology implementation and up-gradation.
OBJECTIVES:
1. To critically analyse the reasons for employee's resistance to change during technology implementation and up-gradation at middle management level.
2. To examine the practices used under transformational leadership in handling employee resistance to change during new technology implementation and up-gradation.
3. To identify the effects of transformational leadership on employees in handling resistance to change.
4. To investigate the changes employees undergo at individual level under transformational leadership during technology implementation and up-gradation.
4.2 QUANTITATIVE RESEARCH METHODS:
Quantitative analysis is described as the collection and analysis of data in numeric form. It emphasises large- scale and representative sets of data. It is an empirical research where the data are in the form of numbers. As far as its key characteristics are concerned control is the important factor as it enables the researcher to identify the causes of his or her observations. It also helps in providing unambiguous answers to questions. (Hughes, 2012)
Quantitative analysis over qualitative include the fact that is its distinctive epistemological and ontological position suggests that there is a good deal more to it than the mere presence of numbers. (Bell & Bryman, 2011) And it could also be considered as a collection of techniques for presenting, organising, summarising, communicating and drawing conclusions from data so that it is informative. (Morris, 2008) In addition of these few advantages of this research are it provide a control through sampling and design, and statistical techniques are used for sophisticated analyses.(Hughes, 2012)
It is also suggested that quantitative practitioners failed to address the issues of "meaning". It is also suggested that And in situations where research wants to establish causality and / or correlation, this type of research could be useful (Bell & Bryman, 2011). It tends to exclude notions of freedom and moral responsibility because of its mechanistic ethos and quantification could become an end to itself in this type of research. And it fails to take account of unique ability of people to interpret their experiences and construct their own meanings and act on these. This type of research sometimes produces trivial findings of little consequence due to the restriction on and the controlling variables.(Hughes, 2012)
4.3 RESEARCH PROCESS
The research process consisted of the following:
1. Face to face discussions with few senior management executives in making them understand the whole objective of the research study.
2. Studied the nature and working style of the company from archives.
3. Identified the middle management employees as the focus group for the study.
4. Explained the objective of this study to the head of the middle management employees.
5. Support provided by the focus group to take part in the study by completing the questionnaires.
6. Analysis of responses from completed questionnaires..
4.4 RESEARCH METHODOLOGIES:
Since the study focussed on the psychological dimension of change through employee's behaviour, quantitative approach was felt most appropriate. This could be due to the collection of authentic information from the direct source as (questionnaires provide an efficient way of collecting responses from a large sample). (Saunders et al, 2009)
The source of information is through self-administered questionnaires sent and received responses via email. The choice of this kind of delivery of questionnaire was influenced mainly by many factors such as:
• Administered in conjunction with email offer greater control because most questionnaires are read and responses are given from personal computer at their own convenience.
• Nature of questions required to collect data
• Importance of respondent's answers ensures no contamination or distortion.
Other advantages include easy & quick to administer, cost efficiency, absence of interviewer effects, user friendly & convenient for respondents and no interviewer variability.(Bell & Bryman, 2011).
Questionnaire:
Leadership and change management has been a well -studied area as it is involved with psychological barriers and synthesis between the two. When an organisation relies on people and believes it to be the primary enabler during major changes in the organisation, the questionnaire appeared to be a suitable tool to study the behaviour pattern and psychological effects on employees when under the influence of their leader during the change process.
Two questionnaires were chosen for the study, while one focussed on leadership and the other focussed on change management. Both questionnaires were based on 5 point likert scale. The questionnaires were distributed by email on 1St August 2012 and one week was given to complete & return the questionnaires. Although the respondents were encouraged to return the completed ones at the earliest date, it was anticipated that due to their work commitments they would require more time to complete the questionnaires. Questionnaires were sent to about 63 employees approached, only 40 completed questionnaires were received (see appendix for sample quest)
INFORMAL DISCUSSION:
As behaviours and practices play a significant part in this study, data through informal discussion was also employed to gain better understanding about the type of work- force setup in the organisation. Such informal discussions further assisted in gaining an insight into the employee's perception on his leader particularly at middle management level. However it was an informal discussion, conversations were not recorded. Nevertheless key points were noted in this study as it was felt it would hinder the participation of the respondents to the study.
CONFIDENTIALITY AND SECURITY:
Prior information was conveyed to respondents to ensure that the information provided by them will remain anonymous throughout the study and would be used only for research purposes.
4.5 LEARNING FROM RESEARCH METHODS:
Time constraints: During the planning stage of the project it was envisaged that most of the research methodologies & analysis would be completed by mid-August 2012. However there were significant delays in receiving the questionnaires from participants due to vacation, work deadlines, projects and other personal & professional commitments. This also resulted in reduced sample size for the study.
4.6 SUMMARY OF RESEARCH DESIGN & METHODOLOGY
The research question and objectives would be best answered using quantitative research method for data collection. The would be carried out by self- administered questionnaires and data collected were entered & analysed using Microsoft Excel spread sheet.
CHAPTER 5- FINDINGS AND ANALYSIS - AN INTRODUCTION
The results of the questionnaire are provided in the order that they are presented.
The first section concentrates on the results and analysis of the survey of the Multi-factor questionnaire (MLQ) to assess the leadership style followed in the organisation.
The second questionnaire focusses on change management (CM) to assess the factors that affects accepting change in the organisation.
The findings and results of both the questionnaires followed by a detailed analysis and inference derived from the survey are discussed
5.1 FINDINGS AND ANALYSIS OF QUESTIONNAIRE 1.
QUESTIONNAIRE 1- Multifactor Leadership Questionnaire (MLQ)
Purpose: The purpose of this questionnaire is to identify the leadership style that is prevalent in the organisation.
Process: A total of 63 questionnaires was sent electronically to the middle management employees of the organisation and only 40 employees sent their completed questionnaires for the study. They were asked to answer 21 questions on the leadership style their leader possesses. The results were interpreted based on seven factors which identify the style of leadership. The participants were however asked to judge the kind of leadership style their leader fits in. The evaluation of this data has formed the basis for quantitative analysis.
RESULTS: Given the characteristic interpretation of leadership traits from a set of 21 questions, the result shows that among the seven characteristics given, four factors scored high. The below graphical presentation shows the key for interpretation and the results were as follows: four characteristics of the leader were scored the highest among the seven. The remaining three contingent reward, management by exception and laissez faire fell under the moderate category.
KEY:
High
9-12
Moderate
5-8
Low
0-4
Fig 1: Multi factor leadership questionnaire- MLQ
The above graph shows the leadership style followed in this organisation at middle management level to be transformational.
Each characteristic studied indicate the following:
1. Idealised influence - This trait was rated the highest with a score of 11 in the range of 9-12 according to this analysis. This feature indicates that
• The leader gained his employees trust
• The leader ensures the maintenance of his employee's faith and respect
• The leader serves as a role model for his employees. (Interpretation)
• This leader behaves in ways that followers are able to identify with.
• This leader is charismatic by nature and displays conviction, makes effort to connect with his followers on an emotional level.
• This leader has a clear set of values and demonstrates them in every action to serve as a role model to followers.
• This leader builds genuine trust between him and his followers. This is built on solid moral & ethical foundation.
2. Inspirational motivation - this trait has scored moderately with a score of 8 and indicates the following traits this leader possesses:
• This leader makes his employees feel that their work is significant and equally important.
• The leader articulates a vision that is appealing and inspiring to employees.
• This leader challenges his followers with high standards, communicate optimism about future goals, and provide meaning for the task at hand.
• This leader believes that employees need to have a strong sense of purpose if they are to be motivated to act.
• This leader supports communication skills that allow him to articulate his vision with precision and power in a compelling and persuasive way.
3. Intellectual stimulation: this trait scored 9 points and fell into the range of 9-12. This indicates that the leader
• Encourages his employees to be creative in looking for new ways to solve old problems.
• He creates an environment that is tolerant to seemingly extreme positions.
• He nurtures his employees to question their own values and beliefs and those of the organisation.(MLQ)
• This leader challenges assumptions, takes risks and solicits sub-ordinate's ideas.
• This leader's vision provides the framework for followers to see how they connect to the leader, the organization, each other, and the goal. Once they have this big picture in view and are given freedom from convention, they can creatively overcome any obstacles in the way of the mission.
4. Individual consideration: this trait fell into the high range (9-12) with the score of 10. This indicates that:
• This leader has shown interest in his sub-ordinate's well-being, assign projects individually and pay attention to those who seem less involved in the group.(in the quest)
• This leader attends to each of his subordinate's needs, acts as a mentor or coach to the follower and listens to their concerns and needs.
• He respects and celebrates the individual contribution each employee makes to the team and believes that the diversity of the team gives it its true strength.
5. Contingent reward - This trait scored moderately with 6 points which shows the following traits of this leader. This includes:
a. The leader tells his followers what to do in order to be rewarded emphasizes what is expected and recognises their accomplishments.
b. He clarifies any decisions made to his followers to ensure it is understood.
c. He uses rewards or incentives to achieve results when expectations are met.
6. Management by exception- This trait fell into the moderate range(5-8) with a score of 8 indicating that
a. This leader finds out whether the job requirements are content with standard performance, and is a believer in "if it ain't broke, don't fix it" policy.
b. Passive: To influence behaviour, he uses correction or punishment as a response to unacceptable performance or deviation from the accepted standards.
c. Active - To influence behaviour, he actively monitors the work performed and uses corrective methods to ensure the work is completed to meet accepted standards
7. Laissez-faire - this trait scored in the lowest range (0-4) of 5 which clearly states that:
a. The leader requires very little of others (followers, clients, group members) and is content to let others do their work.
b. He avoids supervisory duties.
c. He leaves too much responsibility with his subordinates, sets no clear goals, and does not help the group to make decisions.
d. He tends to let things drift, since the focus is to stay on good terms with everyone.
This questionnaire clearly lays the characteristics of two kinds of leadership - transformational and transactional. This is clarified from the distinctive features possessed by both that include:
Transactional leadership
Transformational leadership
Contingent reward
Idealised influence
Management by exception
Inspirational motivation
Laissez faire
Intellectual stimulation
Individualised consideration
Thus, the high scores the four features of transformational leadership style have gained clearly indicates that the leader prevailing is a transformational leader.
Following this, the response to the four characteristics of transformational leader that could be looked in detail and the characteristics that has been favoured the most and been least welcomed could be seen from the graph below:
KEY:
High
9-12
Moderate
5-8
Low
0-4
Fig: 1.2 - Multi factor leadership questionnaire (MLQ 2)
From the graph above, it indicates that from among the four traits that this leader possesses, employees are more satisfied with particularly two traits over the other two which are:
Idealised influence
Individualised consideration
This signifies that the employees have trust and respect for their leader, look upon their leader as a role model and connects with him on emotional level as far as idealised influence is concerned. And with regards to individualised consideration which has almost scored the same score though slightly less than idealised influence, this suggests that approach of the leader not only educates the next generation of leaders but also fulfils the individuals need for self-actualisation, self -ffulfilment and self-worth. This also naturally propels his employees to further achievement and growth. The leader shows concern in his sub-ordinates well- being and pays attention to the ones who seem less involved in work. This trait of the leader would help in motivating employees to feel that they are taken seriously and the leader would always pay attention in their growth and serve as a mentor/ coach. This could be for any discussions on projects, improvement in the working style and issues to be addressed etc.
But the two aspects which employees are not convinced/ satisfied to a great extent though received high score among the traits of other both the leadership styles on whole, are intellectual stimulation and inspirational motivation which says that employees feel that not enough encouragement is given for creativity, their leader does not challenge assumptions to great extent and their work is not considered that significant which differs slightly from the character of the transformational leader. This could be a cause of low motivation in employees when their work is taken seriously and his leader has been very successful in communicating his vision in a persuasive manner for the employees to get motivated.
CONCLUSION:
Thus, the employees have identified and accepted their leader to be transformational from transactional style which conforms to basic element that are existent in the organisation in terms of trust, respect in employees for their leader. Though, they are not highly satisfied with all the four traits of transformational leader individually.
5.2 FINDINGS AND ANALYSIS OF QUESTIONNAIRE 2.
QUESTIONNAIRE 2 - CHANGE MANAGEMENT (CM)
The purpose of this questionnaire is to find study the influence of leadership on change management. Having analysed the results of MLQ (q1), the leadership style that the leader in this organisation possesses is transformational, further results of this questionnaire would refer leader as transformational leader itself.
Process: A total of 63 questionnaires were sent electronically to the same set of middle management employees of the organisation and only 40 employees returned their completed questionnaires for the study. They were asked to answer 21 questions based on which their leadership style would be identified. The results were interpreted based on six factors which identify issues in accepting change. The participants were also asked questions on the change management process in their organisation and the results respond according to their opinion. The evaluation of this data has formed the basis for quantitative analysis
RESULTS: Given the 6 factors for acceptance of change in the form of 30 questions, the results shows that leadership scored the highest, communication & procedural justice scored moderately and tolerance to change, employee performance & employee development received low scores.
Fig 1.3 - Change management (CM)
Key 1-Strongly disagree
Disagree
Neutral
Agree
Strongly agree
The four characteristics of transformational leader are identified from six factors that contribute to acceptance of change, as described below
Characteristics of transformational leadership
Individual Consideration
Inspirational Motivation
Idealised Influence
Intellectual stimulation
Factors of change acceptance
Employee development
Tolerance to change
Employee Performance
Procedural Justice
Leadership
Leadership
Leadership & Communication
Based on the graphical representation and data tabulated, the following are the interpretations:
Leadership: score -4.3 Highest
This indicates that the leader has a positive impact on his followers due to :
• Setting up challenging goals for the organisation based on current objectives.
• Precise instructions being provided by the leader about the work to be done
• Encouragement offered to carry out tasks creatively.
• Motivated by the leader to accomplish their work by solving work-related problems. And proper assistance and supportive guidance is provided to increase work performance.
Among these six factors, leader has shown encouragement for creativity, provided motivation for accomplishing work and has been supportive for employees. But at the same time not been satisfactory in giving clear and precise instructions to his employees in terms of clarity in communication.
Inference: employees are satisfied and happy about their leader.
Procedural justice- Score - 3.4 (neutral) which indicates the following :
• Job decisions are made in an unbiased manner in line with organisational changes by the leader.
Fair procedures are used by the organisation for rating employee performance.
• The leader collects accurate and complete information prior to making changes in the organisation.
Decisions are clarified and information is provided by the leader to help increase employees work performance.
The leader ensures all employees concern is heard before making changes in the organisation.
Among the five above factors, consideration of employee concerns, decision making based on accurate information & data gathered, effective communication and usage of fair procedures were rated highly. However, unbiased decision in making job decisions in line with organisational changes received a neutral rating.
Employee development: low score of 1.9 which suggests that:
• Opportunities for employee training & staffing development is limited.
• Limited training programs opportunities for new knowledge and skills development are offered.
• Employees were not encouraged to take educational programs to acquire new knowledge.
• Evaluation of training outcomes or feedback on the employee training programs are not practiced.
• No long term staff development through employee training is emphasized by the company.
Among these, factors that were disagreed are:
• Employee training for staffing development
• Training programs for new knowledge to be successfully disseminated
• Frequent evaluation of the employee training programs
• Emphasis on long-term staff development through employee training.
Also employees totally disagreed on encouragement given to take educational programs in order to acquire new knowledge.
Inference: No emphasis for employee development or low concern is showed.
TOLERANCE TO CHANGE: - low score 2.8
This suggests the following:
• Less willingness to learn new skills in a short span of time
• Quick adaptation to technology in short span of time is difficult when there is a change in the organisation
• less flexibility to change attitude to change work habits & improve work performance.
Among the factors adaptation to change in short time, readiness in changing work habits received neutral score. Willingness to learn new skills in a short span of time and flexibility to change attitude were not agreed and given low ratings. The only factor that was agreed was by majority of participants was that the changes in the organisation would bring good impact to work performance.
Inference: tolerance to change is low in employees.
EMPLOYEE PERFORMANCE: - low score 2.1
This suggests the following:
• Employees disagreed that organisational changes are one of the challenges to them.
• Employees agreed that no promotional opportunities were offered to them during changes in the organisation..
• It was generally agreed that adapting to organisational changes will improve employee work performance.
• Employees strongly agreed to the fact that any changes implemented in the organisation will affect their motivation and work performance and was given a high rating.
• Majority of employees strongly agreed that outcome of changes in the organisation would affect the overall employee's work performance.
INFERENCE: limited promotional opportunities are offered to employees in the organisation and organisational changes are not considered as challenges by employees.
COMMUNICATION: Score- 3.3.-neutral
This suggests that:
• Employees agree that their leader would always update their employees on any recent changes in the organisation.
• Employees agree that they feel free to discuss with their manager about any changes happening in the organisation. And they also agreed that their leader pays attention to what they say.
• Relevant and practical reasons for any changes required in the organisation are provided by the leader.
• Employees strongly disagreed that effective communication helps improve their work performance.
Major areas involved in communication received ratings such as:
High score:
• Updation on recent changes by the leader to employees
• Freedom to discuss with the leader about the changes in the organisation
• Attention paid to employees for their say by their leaders
Areas that were received low ratings which needs improvement are:
• Explanation by the leaders that provides relevant and practical reasons for any changes in the organisation
• Creating belief in employees that effective communication helps their work performance.
INFERENCE:
Employees are very much satisfied with their leader in the organisation who was found to be transformational as per previous analysis (MLQ). It is also evident that employees of the organisation feel that the communication from top to bottom regarding the change has been communicated effectively. And fair treatment has been given to employees as far as performance rating is concerned. But it was also found that training was not provided and evaluation of its outcome has not been happening frequently. And less emphasis is laid on long term staff development.
Enough time is not provided to employees to learn new skills and employees faced problems in adapting to change in the organisation within a short duration but believed that change would bring good impact to their work performance. It was also found that employees felt that organisational challenges are not a part of their challenge and not enough promotional opportunities were provided. They also strongly agreed to a view that any changes implemented in the organisation would affect their motivation and work performance.
CHAPETR 6: RECOMMENDATIONS
There are some key themes in the existing paradigm that needs definite recommendations which would be specifically for:
Employee development focussed on training, educational opportunities and long term staff development
Employee performance specifically for promotional opportunities
Change management targeting development to flexible attitude and to enhance adaptation skills for new technology/ up-gradation.
Below are some of the short term suggestions:
Conducting Training need Analysis (TNA) for identification of skill requirement periodically and deciding on the type of training programmes to conduct and undertake accordingly.
Identification of the key groups that needs technology up-gradation and would benefit maximum, has to be identified by the organisation periodically.
Conducting survey on employees periodically to find out the employee satisfaction rate and feedback on various training programmes which would be very helpful in addressing the issues.
Preparation for training charts for recording the various training programmes when conducted so as to monitor the progress, effects on employees and check on monetary basis.
Maintain a data bank for workers in terms of their achievements and performance related information for initiating more staff development activities department wise.
Organising workshops, seminars, lectures on valuable topics, web-based training would benefit the employees to a great extent.
Introduce Personal Development Plan (PDP) is very essential to ensure that the entitlement of all staff to meaning training & educational opportunities become a practical reality. This can be regularly reviewed, formally appraised and updated on a normal basis.
Developmental programme could be done in the form of short presentations. Workshops on the current technology/ training frequent (bi-weekly/ fortnightly/ monthly) basis by an expert in the field (phil rabinowitz article)
Organisational support is very essential for staff development which could be in the form of benefits like offering concession on executive training programs, reduced fees on external training programmes etc.
Policies devised/ revised must be communicated to the employees to ensure their awareness & readiness for any change and receive feedback accordingly.
Introduce employee motivation schemes like "Employee of the month/year award" etc for each function/department.
Proper planning is required for skill requirement in case of introduction to new technology
Holding frequent short meetings to encourage employee open their grievances with team leaders and department heads would enable them to share the issues without feeling there might be some repercussions in doing so.
Proper orientation in advance must be given to employees on technological up-gradation so as to ensure they are well aware of the changes it demands in their working style and adapt easily.
Implementation of Technology Acceptance Model (TAM) which is a better predictor and explains the end user acceptance technology. This model suggests that technological acceptance of employees by knowing their behavioural intentions influenced by attitudes, perceived usefulness of the technology and ease their usage.
Proper orientation about the changes in technology in terms of (up-gradation & implementation of new technology) must be given to employees at the time of joining for new employees and periodically for existing ones as and when changes are about to happen. This assures clarity in understanding about why changes in technology for employees and gives time for them to accept the change.
Few long term suggestions include:
Strengthening the relationship between leader and the management would be very useful and is vital as this influences a major impact in terms of successful changes implemented in the organisation.
Formation of training & development (T&D) team comprising of a training manager and Assistant training manager who would be responsible for :
Ensuring Training Need Analysis (TNA) conducted in the organisation
Identification of latest training programmes suitable for the employees
Study and propose training legislations
Design /revise training programmes.
Approval from the middle management head and department head for training programmes
Ensure evaluation and feedback of training programmes
Developing a dynamic technical and vocational training system to ensure horizontal and vertical mobility
Setting up evaluation and feedback system for teaching education and vocational training programmes.
Implement staff development system to offer instructor training and upgrading performance by sharpening of skills.
Association with good training institutes is necessary to give regular qualitative training on essential areas that would reflect in the quality of employee performance ensuring overall development.
Hire an internal change agent / consultant to regularly conduct surveys, identify the area that require change and suggests appropriate change management programmes, implement, evaluate and receive feedback on them. A check on readiness to change in employees and identification of resisting changing must be studied by the change agent/consultant who would identify the reasons more clearly.
CHAPTER 6.1 IMPLEMENTATION PLAN
What
To Hire & recruit
Training manager & Assistant training manager
To Conduct Training for attitudinal skills in employees
(once in a year or during any new technology or up-gradation is likely to happen
Implementing personal development plan (PDP)
Also conduct
Psychometric test for new employees at the time of joining.
Implement Technology Acceptance Model (TAM)
Conduct proper and detailed orientation to middle level employees (both new & existing) when new technology and up-gradation to the existing ones happens.
By Whom
Management
Management
HR dept/ approved by the head of middle management.
HR department
Management
HR & technical heads.
For
Middle management employees.
For middle level employees
Middle management employees
All employees including new and existing.
Middle level employees
Middle level employees
Success criteria
Need analysis for training for employees is well ascertained.
Proper evaluation of success/failure rate of providing training conducted in the organisation.
Behavioural intentions, perceptions about adapting to change are well established.
Current competencies of staff are identified along with their work & career targets are identified for employee development initiation.
Behaviour patterns and attitudinal differences can be ascertained.
Identifies the behavioural intentions influenced by attitudes, perceptions in accepting and use of technology.
Clear understanding for employees about the changes in technology and readiness to accept the change is ascertained.
Costs
Training manager- £30000-40000 per yr. (approx.).
Assistant training manager - £10000-20000 per yr (approx).
CHAPTER 7: RESEARCH OBJECTIVES & CONCLUSIONS.
The objectives of this study were to find out:
Critically analyse the reasons for resistance to change in employees during technology implementation/ up-gradation.
Examine the practices used under transformational leadership during technology implementation & up-gradation.
Identify the effects of transformational leadership on employees in handling resistance to change
To investigate the changes employees undergo at individual level under transformational leadership during technology implementation &up-gradation.
Critically analyse the reasons for resistance to change in employees during technology implementation/ up-gradation.
Employees were found to be resisting change due to lack of willingness to adapt to technological changes because of limited time provided for adaption of technological change. It was also found that there was a lack of skill level training programmes in the organisation for these employees. Secondly, lack of attention was given to educational programmes in line with new technology implementation and evaluation of training outcomes & feedback not emphasised.
Since technological changes are frequent in this sector, development of technical skills is mostly through on-job training which was found to be difficult to adapt for the employees. Even though leadership has been a positive influence in this organisation, individuals consideration with respect to employ developmental heads, seem to be lacking. Since no evaluation of training programmes is being practices employees are not able to identify their skill level accurately and thus demoralises employees and encourage resistance to change, particularly technological up-gradation.
Employees seemed to be interested in gaining awareness and be up-to-date in their industry through educational programmes. Such opportunities are found to be lacking in the organisation. A sense of detachment in employees and the organisation seem to exist as they do not consider organisation challenges as their own.
Some of the reasons that could have contributed to such a scenario especially during technology changes would be:
No / less briefing to the employees about 'why' and how technological changes are important to implement and the procedures.
Lack of co-operation between different departmental heads and management as a whole.
Poor attitude with no sense of mutual interdependence and co-operation
Conflict due to lack of understanding with superiors and line managers
Lack of confidence to adapt to new technical changes due to complacency in the old ones.
Low inter-personal skills, communication and skills in employees to raise such issues to the organisation.
RESEARCH OBJECTIVE 2:
Examine the practices used under transformational leadership during technology implementation & up-gradation.
Majority of the employees agreed that their leader is a transformational leader & he exerts a positive influence on them. He ensures fair decision towards his employees through fair practices and gives due consideration on effective communication. The leader clearly creates a positive environment around his employees due to which they do not feel intimidated by their leader. He also communicates effectively in ways that are appealing to his employee, to convey that is expected of him & how to deliver it. He also brings out the potential of his followers by encouraging them to think creatively & differently to solve old problems and to view issues that are otherwise puzzling.. This encourages them to meet the agreed word standards and satisfy their leader. Such practices seem to sit well with the employees, when majority of the study, participants agree that they completely have faith in their leader and are proud to be associated with him.
7.3 RESEARCH OBJECTIVE 3:
Identify the effects of transformational leadership on employees in handling resistance to change.
Employees do agree adapting to changes would help the organisation but do not embrace it because though the leader is a good communicator but does not necessarily brief his followers about the change process about why the company needs it and how it can be done and how one can be benefitted. He does not consider the duration required to learn and embrace the change that may be required by the team. He has the positive influence but does not use it to influence employees to change.
RESEARCH OBJECTIVE 4:
To investigate the changes employees undergo at individual level under transformational leadership during technology implementation & up-gradation.
Employees do support their leader in working towards his vision. Self- initiative ability in employees is encouraged as the leader is found to be quite approachable and welcome his ideas & suggestions. Willingness to take risks & deriving creative solutions is influenced by the leader to achieve the common vision. Employees believe adapting to change will improve their performance and growth. The leader encourages creativity in employees in enabling to address old issues/ problems in new ways. The employees trust their leader and his decisions completely. Although he creates positive environment during challenging phase such as new technological implementation & change resistance that may arise, he fails to address some of the key issues thata prevail at an individual level.
CHAPTER 8: REFLECTIVE STATEMENT
The focus of writing and completing the dissertation, besides proving or disproving the chosen hypothesis, has been to understand the practical implications of change and its management by a transformational leader. This style of leadership caught my interest due to its increased popularity and the impact, usually positive, of transformation style leadership on its followers. Although, literature suggests that transformational leaders exude such positivity that it earns him his follower's respect and trust, his role and impact during a phase of change in the organisation intrigued me. We all know that constant change in the industry, especially when it comes to technology to keep up to the global demands, is a hard reality, yet it is still met with stiff resistance from the employees involved. Studying the reasons behind such resistance and how the leader can influence his followers to embrace change from the employee's point of view was an interesting revelation.
Learning what, how and where to look for information, especially in literature searches, has been one area where I developed my research skills. This modified the focus of the study significantly in the process. While choosing this leadership research topic was primarily based on personal interest and theoretical knowledge, the literature revealed that the functionality of transformational leaders slightly vary in reality. I began to understand that he employs his charm and charisma to influence his followers but does not necessarily introduce a reward system like a transactional leader. This helped me direct my research into
