¶ … leadership and change management are very crucial factors in the determination of an organization's success. One of the main causes of organization failure is poor leadership. This coupled with the lack of appropriate change management program can quickly send an otherwise profitable business venture into the dreaded domains of bankruptcy and losses. This paper is therefore dedicated to the investigation of the effects of leadership and change management on organizational culture and organizational performance in the case of corporations undergoing mergers and acquisitions The role played by an organization leader is to align the organization's resources, envisioning of the future of the organizations and the motivation of the employees in the firm in order to achieve better results in terms of performance and profitability. A viable leadership strategy must therefore be devised and coupled with an effective change management strategy in order to ensure that businesses remain profitable in this contemporary corporate environment that is marred with stiff competition. It is crucial that any given organization is guided effectively in the process of corporate growth and development by connecting the workforce and the management. The benefit of this is the seamless integration of leadership and workforce with the main business processes. Organization culture must therefore be preserved while ensuring that the new and existing business missions are upheld. Due to the dynamism in the contemporary business environment, it is necessary that certain changes be updated in order to ensure that the organization a new set of core capabilities as pointed out by Prahalad and Hamel (1990).
Dynamic business environment
The dynamism of the business environment means that several activities such as mergers and acquisitions (M&A) are common in the corporate environment. This is because merger and acquisitions are an integral part and parcel of many firm's operational strategy. This is as a result of the fact that moves such as these have been praised and proven as being of significance in the achievement of corporate growth as well as rationalization and diversity (Cartwright and Cooper, 1992). The contemporary corporate environment is characterized with several firms having to deal with too much chaos and culture change so as to achieve an acceptable level of corporate dynamism and growth (Berquist, 1993). A look at organization culture reveals that several factors affect the level of organization change as is common during acquisitions and it is therefore extremely crucial for leaders who hope to obtain a high acceptance level after an organizational change to be ready for the daunting task as postulated by Michaela and Burke (2000). Major challenges lie in the selection of the most appropriate set of actions that are both achievable and viable within the firm's capacity in order to handle change as well as the ever present resource constraint. Extant literature that depend on the 'great man' theory of leadership as indicated by Judge et al., (2002) does reveal that a given situation is also a major player in the determination of the effectiveness of a given leader. An effective leader should therefore be able to behave in a different and appropriate way according to different situations (Stogdill, 1974; as well as Yukl, 2002).
The rational for this research is to make sure that the concepts of leadership as well as management are utilized effectively for the promotion of organization culture and raise the level of employee acceptance during normal organizational processes such as mergers and acquisitions. It is important to point out that the concepts of leadership and management are two distinct terms with different meanings (Kotter,1990). They are however meant to serve as each other's complement in a given organizational system. Their functions and characteristics are unique to each other. Kotter, further points out that leadership and management are both integral for the achievement of a perfectly managed organization. The management aspect being concerned with the planning, control and the institution of certain necessary systems and organizational culture in a given firm. The leadership aspect however is mainly concerned with the expectation of change in the organization and how to perfectly cope with the changes in a visionary manner.
The need to align leadership and organization culture with strategy
It is important to have good leadership and appropriate organization culture in order to have a successful merger and acquisition
. It is paramount that leadership and organization culture be aligned with organization strategy in order to achieve a perfect integration in the case of an M&A. It is pointed out that good leadership should be cultivated in the...
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