Leadership and Change Management

By

TABLE OF CONTENTS

LIST OF TABLESiii

LIST OF FIGURESiv

CHAPTER 01: INTRODUCTION1

1.1. Background1

1.2. Research Aim and Questions2

1.3. Justifications for the Research3

1.4. Outline of Methodology4

1.5. Subjects5

1.6. Justification of using MLQ 5X Tool5

1.7. Outline of the Study6

CHAPTER 02: LITERATURE REVIEW8

2.1. Leadership: Historical Definitions and Views8

2.2. Leadership Traits9

2.2.1. Communication10

2.2.2. Emotional11

2.2.3. Experience11

2.2.4. Intellectual/Intelligence12

2.2.5. Trustworthiness12

2.6. Criticism to Trait Theory of Leadership13

2.7. Other Leadership Theories14

2.7.1. Trompenaars' Theory of Leadership14

2.7.2. Northouse's Theory of Leadership15

2.8. Different Styles of Leadership16

2.8.1. Autocratic Style16

2.8.2. Participative Style16

2.8.3. Democratic Style17

2.8.4. Laissez-Faire Style17

2.9. Transactional Leadership17

2.10. Transformational Leadership18

2.11. Change Management Approaches19

2.11.1. Planned Change19

2.11.2. Emergent Change21

2.11.3. Individual, Group or Organisational Change and its Effect on People23

REFERENCES26

LIST OF TABLES

Table 1: Transactional vs. Transformational Leaders19

LIST OF FIGURES

Figure 1: The development of Leadership Theories9

CHAPTER 01: INTRODUCTION

1.1. Background

Organisations are operating in an environment considered as hyper competition, in today's era. There is a significant impact of environmental factors that tend to influence the way organisations are performing their tasks today. Organizational change management is also a systematic process of shifting of teams, individuals and organizations from the present state to the desired future state (Baird, 2008, 56).

Researchers consider the marketplace changes in demographics, political environment, workforce, social values and beliefs and technology to have a greater impact on the products, services and processes of an organization (Beckhard, 2007, 58). When implementing a pre-defined model or framework within in an organization, with or without significant changes to it, the process is known as change management (Beechler, Javidan, 2007, 131). This study discusses the impact of leadership styles on change in Network International, a third party processing company.

Network International (NI) is a third party processing company and has grown into a successful business organisation, over the past few years, with a significant footmark in the African region and Middle East. The company is considered as a leader in card processing, inside UAE and also, in the wider Middle East region. The company focuses on developing an effective strategy to expand itself into the higher growths markets of the MEA and the subcontinent. Currently, the company is experiencing a strategic intersection where significant growth opportunities were present through external acquisitions and organically, on which the company wants to capitalize on. In these circumstances, the dilution of NBD's share-holding in NI to 51% from 100%. Likewise a private equity Abraaj capital is in negotiation to take over approximately 49% of the shares of NI. The primary objective behind Abraaj's mover was to accelerate the inorganic growth through facilitating provision of required experience for acquiring the similar business, in the target market.

However, the other objective is to find an exit from this investment with having twice or more multiples of the invested amounts in the next five years, by enhancing the value of the existing business. The time for completion of the acquisition deal is January 2011, which initiated the process of change in the leadership of NI. The NI soon implemented a change in the company, which was followed by a further development in change implementation. In 2012, NI is going to ...