Leadership and Change Assignment Sample
Coursework 1: Leadership question
Concepts of authentic leadership and ethical leadership style
Authentic leadership theory
Authentic leadership (AL) theory describes that leaders are free to develop or adopt their characters and values for building relationships of trust with their followers. As per the viewpoint of Sidani and Rowe (2018), AL mainly describes the moral or good transformational leadership style that depends on four preliminary pillars such as self-awareness, internalized moral perspectives, relation transparency, and balance the entire processing of the organization. Since, AL refers to a different pattern of a leader’s behaviour that promotes and draw upon a positive ethical climate and psychological climate that foster greater self-development with engulfed in a moral setting.
Figure 1: Legitimacy formation of authentic leadership
(Source: Sidani and Rowe, 2018)
The above figure represents the legitimacy format of AL that helps to develop a matured organizational leadership culture with effective team management. On the other hand, Ribeiro et al. (2020) have argued that ALL influences the worker’s positive behaviour and attitude regarding organizational commitment, work engagement, citizenship behaviour to lead to a higher level of business performance through the mediation of effective commitments. The examples of AL are Martin Luther King Jr, Nelson Mandela, and Mahatma Gandhi who made the possible efforts to achieve their objectives and optimize the progress of their followers.
Figure 2: Inherent moral components of AL
(Source: Liu et al. 2018)
Based on the viewpoint of Liu et al. (2018), the social identity theory focuses on the individual relationship in the organization such as co-workers and supervisors to reflect high moral values, honesty, and sending information for effective decision-making under AL. However, AL development strategy is relevant in today’s organization as well as it creates durable outcomes in the society.
Ethical leadership theory
The ethical leadership (EL) theory defines an efficient leader who acts as an influential or motivational role model to establish an ethical climate in the organization through its ethical behaviour towards followers (Feng et al. 2019). Since the ethical leadership, style meets the ethical needs of employees and customers in the marketing. On the other hand, Pircher Verdorfer and Peus (2020) have illustrated that EL operates the morale management between followers’ openness and leader’s moral behaviour that lead an ethical influence in the organization.
Figure 3: Ethical leadership theory and role model
(Source: Pircher Verdorfer and Peus, 2020)
The main principles of EL are honesty, integrity, justice, resorts and community that improve the interpersonal relationship and personnel action in the organization. The theoretical model considers some respective factors such as fairness orientation, moderation-orientation, humane -orientation and sustainability orientation. Based on the viewpoint of Suifan et al. (2020), the EL and employee turnover intentions are effectively linked where EL ensures psychological empowerment of employees and improves organizational identification. Hence EL through and approaches establish a productive relationship and create a positive environment that improves the value of individual, team and the entire organization.
Application of leadership skill in business and organizational setting
The leadership skills of authentic and ethical leaders are effectively applicable in organizational and business settings with practising transparent behaviour that builds a strong relationship with internal and external stakeholders in the organization. As per the viewpoint of Oh et al. (2018), the AL practices the core value of the organization that boosts internal consistency in work-culture that ensures high engagement in the work. Hence, the self-awareness quality of AL accesses its weakness and strengths in the organization and business operation that provides n recognition opportunities in future.
Figure 4: Application of authentic leadership in the workplace
(Source: Oh et al. 2018)
On the other hand, Benevene et al. (2018) have argued that the effect of EL on business outcomes and organizational management is reflected on employee behaviour, commitments, and job satisfaction while considering the ethical dilemma. The EL skillsets fulfil the worker’s expectations and develop their loyalty that enhances organizational and business strength with frosting their willingness and high engagement at work.
Figure 5: Social learning and AL skills sets in organizational management
(Source: Bakari et al. 2017)
Social learning theory is effective for boosting leadership skills in the organizational and business context that propose new behaviour and learning through five effective steps such as observation, motivation, attention, reproduction and retention (Bakari et al. 2017). However, EL can provide value to business by motivating people by practising honesty, fairness, integrity, and trust live up to the organization’s value in the market.
Impacts of change in leadership style in the organization
The main strength of effective leadership or management skill is it can easily influence and motivate people with their new insights of change to the organization. There are both positive and negative impacts for changing the leadership style in the oration; however, it depends on the employee’s adaptability and the leader’s personality in the proposing change. As per the viewpoint of Eliyana and Ma’arif (2019), the transformational leadership style is effective to change multidimensional-phenomenon in the organization that are highly associated with financial performance, shareholder’s return, and value-added marketing performance regarding product and promotion. However, the other strength of the leadership skill is to meet the emotional needs of employees effectively to ensure its contribution, work engagement, and commitment that boost organizational growth in the business market.
Consequently, Bowers et al. (2017) have illustrated that negative impacts of change in leadership are causes loss of employee loyalty that increases the turnover rate in the organization. Hence, the high stress of work, poor job management, poor workforce management are the major weakness of leaders that causes low motivation, lack of interest in the work among the employees. On the other hand, an example of a real-life company that succeeded in change management is Tesco, the world retail giant in the UK. The unethical practice of the gender pay gap in the organization negatively affects the brand loyalty and marketing position; however, its current leadership positively boosts the revenue and conducts a fair business in the retail industry (BBC.com, 2021). Hence, the management style and its strength ensure business success with increasing high satisfaction levels among customers and employees.
Management and leadership issues in the organization
The AL and EL are faced with challenges in the organization to build an efficient team, handle the change, and provide continuous inspiration and motivation at work. According to Jain (2018), the definition of inclusive leader considers four effective components such as humanity, accountability, empowerments, and courage.
Figure 6: Key challenges of leadership in organization management
(Source: Jain, 2018)
On the other hand, most of the leaders faced challenges of communication to manage the cross-cultural or diversified workforce in the organization that caused conflicts, a misunderstanding at the work. It negatively affects the organizational performance and workforce satisfaction level. Hence, the Hofstede cross-cultural dimension is the best practice to understand the employee’s perspective in the new culture. The theoretical framework helps leaders to be aware of the common difference between cultures to discern the ways that business is done across various countries with increasing trust, improving relationships and communication (Yi, 2021).
Based on the viewpoint of Andriukaitienė et al. (2017), leaders face competency challenges in organizations with distinguished technical skills (innovation and information management digitally), providing others with technical equipment, awareness of legal acts, performance tasks on time, a good organization to control work stress throughout coordination activities. Hence, leaders need to practice a 360-degree feedback model that helps in decision-making, managing resources and collaborating. On the other hand, Lee and Chelladurai (2018) have argued that leaders are faced with internal challenges in the organization such as inspiring employees, linking them with workers, leading the crisis without taking pressure and handling it with responsibility. Hence, the leaders need to practice Maslow hierarchical theory to meet the demands of workers and be motivated through a respectful personality, meet organizational needs and build a friendly relationship in the workplace (Wuryani et al. 2021). Hence, high morale and good decision-making of leadership style improve business performance and brand loyalty in the market.
Ways to develop leadership skills to manage performance
The AL style focuses on the key components of management such as becoming more self-aware, understanding the business and organizational value, balancing extrinsic and intrinsic motivation, developing an efficient workforce, being strict to the roots of ethical rules, and inspiring others. Hence, the leaders need to become genuine, transparent and self-aware that can easily influence people with their decision-making and manage their work stress efficiently to increase employee satisfaction level at work. Lyubovnikova et al. (2017) have pointed out that authentic leaders need to improve the collective self-regulation process through aligning the actions with their intention, values that make an authentic self among their followers.
Figure 7: Ethical leadership skills in organization and business
(Source: Benevene et al. 2018)
On the other hand, the skills set of EL need to have a strong value that inspires, guides their employees transparently. Based on the viewpoint of Benevene et al. (2018), EL has positive effects on employee behaviour with numerous dimensions that increase employee’s motivation, performance, job satisfaction, and commitment at work. However, ethical leaders demonstrate the good values of inside and outside of business that build positive culture while preventing Scandal in the organization. On the other hand, the most effective way to enhance both AL and EL skill sets is through improving employee and customer loyalty in business with improving quality and innovative service management that increase the growth of business effectively.
Impacts of interpersonal skills in leadership style in the workforce management
Comparing both leadership styles EL and AL, the EL style is effective to manage the workforce and conducting an ethical business in the global market. The effectiveness of EL is highlighting the internal and external management of the organization that has the capacity to inspire people ethically and create a positive work culture to meet organizational and business goals significantly. The 4 V’ model of EL is effective to manage interpersonal skills in the workforce management that refers to value, vision, virtue, and voice.
Figure 8: 4 V model of ethical leadership
(Source: Pushkar, 2021)
The main purpose of adopting the EL style is to enable outer outcomes of the business and makes a significant difference in the inner journey of integrity and workforce management towards the common goals (Pushkar, 2021).
Values: The EL begins with an understanding of individual core values and commitments that establish a storing identity during the integrating leader’s on values, decision-making on all levels of civic and personal lives.
Vision: |Vision of |EL provides an effective ability to frame the action and build a real picture in the particular service that inspires others and increases contribution at the work.
Voice: The claiming voice of the employees needs to articulate and identify the convincing way that motivates and animate them into the change or action (Hu et al. 2018).
Virtue: The EL style helps to improve the future insights in the service that is connected with a vision to values, polis that refers to learning to give voice with a political way, renewal in changing the work creatively and innovation of technology.
Coursework 2 Case study
Question-1: Change management in Lego group
Overview of Lego group
Lego Group conducts a manufacturing business of brand toys, builds different amusement parks around the world (Legoland), and operates numerous retail stores since 1998. The number of employees in the Lego group of about 17431 people worldwide and its subsidiaries operate in Asia, Australia, Africa, and America (Statista.com, 2021). The company has a Merlin Entertainment chain with six effective resorts namely LEGOLAND in Billund, Windsor, Deutschland, Malaysia, Florida and California. Jorgen Vig Knudstorp was to become the effective CEO in Lego in 2004 while the company faced a critical situation as it was not owned by a wealthy or rich family with enough technically insolvent. Lego was facing the brink of bankruptcy with enhancing competition from globalization in financial growth, and adoption and video game entrant through online. The poor innovation strategy of the company and inefficient workforce of European designers in toy manufacturing leads to high loss throughout the logistic operation, storage and infrastructure expansion in the global market.
Figure-9: Revenue growth of Lego within 2003-2020
(Source: Statista.com, 2021)
In the figure, the revenue of Lego Group is approximately 5.87 billion Euros from 2003 to 2020 that conducts business in more than 130 countries all over the world (Statista.com, 2021). The main philosophy of Lego is to provide good quality of play in the child or later adult life that provides a positive impact on a child’s growth and development. However, it has an effective operation profit of about 1.74 billion Euros and a group profit of about 1.33 billion Euros within 2009 to 2020 (Statista.com, 2021). Hence, the current position of Lego is effective due to some changes by the CEO who was appointed in 2004 and makes a great change in internal-external operation in global; business.
Changes in Lego group by Jorgen
The new leadership style of Jorgen Vig Knudtrop is mainly focused on operational improvements and enhancing competition in the global market.
Figure 10: the agile transformation of the Lego group
(Source: Sommer, 2019)
The cost-leadership strategy of Jorgen was effective in the Lego group that introduced new products with affordable cost prices with differentiation in product design. The CEO operates the manufacturing team to improve product standardization by eliminating the cost of source and reducing the number of Lego bricks production. As per the viewpoint of Sommer (2019), the transformation approach of Lego is inspired by the open-source change theory that encourages the team members not forced to create the real mandate and space for agile team structure in a new formation of the business operation. This strategy of product design increases the team ability and gets quick reactions to the new customer trends. Jorgen decided to sell off non-Core for the underperforming business line in the toy manufacturing industry. Jorgen was not afraid to shut down the traditional business operation that makes it unprofitable and reduced competitiveness.
Innovation of product design within reason is another change by Jorgen that taps the needs of customers by creating unique ways through advances in design thinking and research (Greenblatte, 2021). The Company ensured the cost of innovation of the new product by generating the interesting concepts of new shape, colour, and order of materials. However, there were effective chances to create losses that could cause a huge loss and destroy the company’s reputation and competition in the global market. The effective leadership style of Jorgen could move the R&D expenses into profitability and effective revenue growth.
Jorgen implemented a small number of suppliers to increase sales from the warehouse to various vendors, leaving tremendous that reduce costs in the distribution of products. Therefore, the company reduces order and fulfilments of cost as it consists of less than a full carton of brick. Jorgen had established a partnership with large retailers to enhance demands, improve product customization, and develop efficient inventory management. Hence, the CEO of Lego generated two basic principles to lead the entire team and business such a commitment to high quality and build capacity for innovation (Greenblatte, 2021). The current operating business model of Lego is forecasting capabilities with high customer demand in different segments of the business that create effective competitive advantages in the global market.
Effectiveness of the changes in business
Kotter’s 8-Step Change Model is an effective choice to lead the team towards changes that increase the chance of business success effectively.
Figure 11: Kotter’s 8-Step Change Model
(Source: Laig and Abocejo, 2021)
Create Urgency: Jorgen was faced with a high financial crisis due to increasing competition in the global market. The company needs to increase innovative product design and integrate marketing channels.
Build guiding Team: The CEO of the company hired a young European designer to create new toys that attract targeting customers at an affordable cost. However, it hired toy-making experts to expand infrastructure in the business.
Develop vision: The vision is effective in a change management structured approach to desire a future state that creates a systematic way of success with cultivating the right direction towards change (Laig and Abocejo, 2021). The company focused on continuous innovation in the work, product, and design that boosts competitiveness in the global market.
Communicate for buy-in: Jorgen had improved market channels and built partnerships with retailers that could access great marketing opportunities in the business. It creates high demand and meets customer needs within a low budget.
Empower action: The Company ensures the organizational process to improve its inventory and operational management system in toy manufacturing that helps to change the corresponding resistance.
Create Short-team wins: The leadership of Jorgen was effective to lead the team within a small number of suppliers to analyse the pricing of products. It boosts the ordering of particular products and gains popularity effectively in the matter.
Do not Let UP: Jorgen believed that the early gains from the short win with producing more change in the product range, offers the range and effective pricing strategy to mitigate the financial crisis.
Make change stick: The agile transformation of Lego is the effective step that makes high competitiveness and differentiates the products in the market to meet customer needs effectively.
Question-2: Leadership of Jorgen Vig Knudstorp in Lego group
Leadership style of Jorgen
There are two effective leadership styles to manage the business operation, human resources in the organization such as transformational and transactional leadership approaches. As per the viewpoint of Atapattu and Ranawake (2017), transformational leadership creates an effective vision by inspiring followers to strive beyond the required expedition within the operation. In addition, the transnational leadership style focuses on extrinsic motivation, process, and control of the corresponding management structure of the organization. Hence, the leadership style of Jorgen is considered both transactional and transformational-approach that focuses on inventory-management with effective employee-satisfaction in the change management in Lego group. The CEO of Lego introduced positive supervision among the workers that avoid passive management and employees understanding the expression of the leader.
Figure 12: Similar goals of transformational and transactional approach
(Source: Kark et al. 2018)
However, Jorgen motivated the followers and inspired them with creating a vision and mission in business. Consequently, Kark et al. (2018) have illustrated that transformational leadership has a self-regulatory focus that is more effective than transactional leaders have to get a rapid change in worker’s performance with effective motivation and communication. However, the new announcement of Jorgen had positive effects after the bankruptcy throughout the abnormal returns, as it was more favourable on the stock market reaction with the insider’s succession in Lego group. The CEO invented the U-shaped relationship between business performance and the firm’s strategic condition that increase insights and performance levels from moderate to great (Schulz and Völckner, 2020). The company was losing $1 million a day through overspending itself into the particular product category such as children’s clothing in the Lego brand. Jorgen had turned the loss and poor inventory management in business operations into profit and innovation. Hence, the CEO had examined both prevention and promotional situations to restructure the business with a highly competitive edge, innovation and generate an effective identification in toy manufacturing.
Ways of which implemented the change under the leadership of Jorgen in Lego
The CEO of Lego had faced different challenges to change the traditional and operational methods in business and the workforce.
Earned employees’ trust: The most challenging factor was for Jorgen to gain employees’ trust and make an inspiration after the massive loss in business. It used the fiscal management policy to improve economic growth by maintaining income statements, cash flow, and balance sheets (Bhandari et al. 2017. However, the CEO of Lego engaged their management and employees to see the operation scenario and provide a creative vision to improve the crisis quickly. The influential and motivational approaches of transformational leadership style effectively increase employee contribution at work.
Build top-down management approach: The CEO of Lego prices the top-down approaches to create a learning and development work environment that determine advanced product design, forecast creative problem-solving skills, and make distinct solutions. Moreover, Butt (2021) has argued that the top-down management style has a strong potential that helps leaders to explore new ideas, apply creative knowledge, implement change or improve the process of business operation to enhance organizational performance and understanding. Hence, this initiative of Jorgen was effective in that it motivated upper management and accelerated the organizational behaviour, information management, and marketing strategy.
Prioritise customer and employer’s feedback: Lego group always focused on effective brand loyalty that is why it encourages the customers and employee participation and prioritizes their valuable opinion in the business process and product range. Jorgen was considered the preference of multiple generations of a family; however, it created the business value especially for adults on the trajectory of the toy manufacturing business. In the current era, the company has practised the 360-degree feedback process to reach its goal through the high engagement of employees and customers in the business (Chopra, 2017).
Figure 13: 360-degree feedback process for effective strategic improvement in business
(Source: Chopra, 2017)
Implement multi-faceted business ecosystem: The leadership of Jorgen improves the business network with expanding customers, suppliers, distributors, competitors and builds relationships with effective retailers in the market. The main mission of the Lego group is to achieve long-term success and force various affiliates and partners that were a single part of the corporation.
Lessons from the leadership journey of Jorgen
The leadership style of Jorgen Vig Knudstorp influenced the young business start up to implement strategic change and ways to succeed from high crisis of bankruptcy to bottom-up business leader in the global market. The active listening skills of the leader help to gain the trust of employees and lead the team in fulfilling their emotional and physical needs in the workplace. On the other hand, the problem-solving and employee-alignments strategy helps to boost the change management approach and track effective success in business that put customer-centred and frontier business in the toy manufacturing industry (Xu et al. 2020). Hence the independent entities of the CEO influence and inspire the employees to work more with mitigating their different problems and requirements such as continuous development opportunities, love and belonging needs at the workplace.
Question-3: Recommendation
A successful business strategy depends on leadership, right decision-making in investments, and strategies to different marketers to gain a high competitive edge. Lego needs to take some initiatives to improve its business performance effectively that are discussed below-
Improve marketing strategy
Lego should improve the four p’s Mix-marketing strategy that considers product, place, pricing and promotional objectives in business that are able to meet each customer’s needs in the global market. The product strategy of Lego is effective that include various themes such as Wild West, robots, undersea exploration, space, Vikings, dinosaurs, and pirates to influence children and early adults. However, the company needs to practice continuous innovation in product design, expansion of programmable Lego-brick to act a broad range of players among the children. As per the viewpoint of Thabit and Raewf (2018), the pricing strategy depends on the consumer’ ability to pay, the price charged by the competitors on similar products, government restriction that is critical for a marketer. Hence, Lego should maintain mid-premium policies to the targeted customers that can be affordable and reasonable products, however, it can use the value-based pricing strategy to create an effective relationship with business-to-customers in the global market (Kienzler, 2018).
Figure 14: 4 p’s mix marketing strategy
(Source: Thabit and Raewf, 2018)
On the other hand, Lego can use a click and mortar business model to improve retailing in the market that allows both online and offline store operation to boost the sales rate of the product (Shahzad et al. 2020). It is an effective place strategy under the manufacturing facilities to improve distribution operation via retail outlets. On the other hand, bin Abdul Lasi and Salim (2020) have argued that the sales promotional strategy of an organization is a customer-centred approach that addresses barriers to actions of change or product design, a price that attracts customers effectively. However, Lego has been an active participant in brand-loyalty programs and events of sports or national promotional activities. The company should use social media advertising to inform customers of new product designs and innovations that increase the sales rate and gain a wide range of customers quickly (Voorveld et al. 2018). In addition, social media allows a leader to promote their business at low cost and efforts that directly affect the profitability and productivity in business operation.
Ensure continuous innovation in product design and service
Lego should create technological advancements for their game fans that are produced for smartphones. The company should improve its digital entertainment opportunities through practising AI (Automotive intelligence) and block chain technology to attract customers and improve its operational management system (Phansalkar et al. 2019). Lego needs to use AI applications in-camera settings of Lego-bricks that can bring a great experience for customers. The main target customer of Lego is children between the ages of 3-15 years that are always seeking new and curious toys that help to develop in their learning and educational growth.
Figure 15: Kernel theory of digital-innovation
(Source: Kohli and Melville, 2019)
On the other hand, Kohli and Melville (2019) have argued that Kernel theory of digital innovation in product design and service depends on the efficient designers, IT service functions that help to compromise business strategies, ways of dog things, cultures. Hence, digital innovation can change the competitive environment of Lego while the company shifts into data-driven services. However, the digital technology in AI and block-chain tools and applications improve customer service management that directly affects sales volume and profitability.
Porter generic strategy of gaining a high competitive edge
Michel Porter’s Generic strategy implements a competitive framework for gaining effective value-dimension approaches in business through main two different strategies such as cost-leadership and focus. As per the viewpoint of Aliu and Oni (2020), Porter’s competitive model and generic strategy become the heart of the company’s performance in a competitive market that provides a superior value and benefits with rising profit, customer loyalty. Hence, Lego needs to increase market share by more than 38% in 2020 in net sales share over the world that was announced at around 5.9 billion Euros (Statista.com, 2021). Hence, the company needs to improve its cost-leadership strategy to grab the target market and audience with the most intensive growth strategies.
Figure 16: Porter’s competitive model in marketing
(Source: Kharub et al. 2019)
On the other hand, Kharub et al. (2019) have explained that Porter’s generic strategy improves management disciplines that strengthen competitive forces such as quality management, operation management and performance management to ensure business success. Hence, Lego should improve on efficient value chain management that helps to improve market leadership position effectively. However, Lego needs to increase purchasing accessibility for targeted customers by maximizing the distribution and supply chain of retailing firms. Based on the viewpoint of Rahmiati et al. (2019), the Porter generic value in the competitive market ensures an effective transformation of the manufacturing sector into the service sector in business. It can practice prime-offer, discounts, and coupons to handle competitive pressure and achieve sales targets in the promotional campaign. The cost generic tragedy of Lego can benefit in recognizing high brand-loyalty, encouraging the product’s consumption, expanding the customer-based with achieving the sales target in the competitive market.
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