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MG625 Leading And Managing Change

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MG625 Leading And Managing Change

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MG625 Leading And Managing Change

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Course Code: MG625
University: Buckinghamshire New University

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Country: United Kingdom


1. Recognise and explain theory and practice in the management of change within organisations.
2. Compare and evaluate different cultural characteristics and assumptions between national groups and organisations, and their effects on organisational practice. 
3. Evaluate the steps needed in developing an effective team and the way teamwork varies across national boundaries 4. Identify the role that organisational structure can play in developing an effective organisation5. Distinguish between a range of learning styles and their application in personal and organisational settings.

Changes in the organizational context refer to different internal and external modifications that are implemented by the firms on the processes and the culture of the same. The purpose of undertaking the discussion is to identify the different change options that were available for Gestner, the appointed chairman of IBM in 1993. The discussion will be making us of the Kaleidoscope model by Balogun and Hope-Hailey in order to identify the different available options for undertaking most viable change in the organizational outset. The discussion contrasts the situation of the organization before Gestner was appointed with the situation after his appointment.
Background of IBM before Gestner
The concerned organization, IBM, was originally formed as a Computing Tabulating and Recording manufacturing organization which followed the Japanese management style was induced by the Ministry of International Trade and Industry. The organization seemed to take over around 70% of the world market by 1960s. The organization initiated continuous innovation in the line of highly expensive mainframe computers, peripherals and software products. It has helped the organization in undertaking its dynamic growth in its business operations.On the other hand, Waring andSkoumpopoulou (2012) stated that the growth of the business was primarily based on the lifetime employment policies and excellent working conditions which boosted the motivation of the workforce.
The organization encountered huge amount of job cuts that expanded through ‘management-initiated-separation’ (MIS). The change that was introduced in the organization was due to the needs of the same to cut off costs, which reduced the profits of the firm. On the other hand, the change maximized the turnover rates of the business thereby affecting the productivity of the same as per the objectives.
Kaleidoscope change chart in accordance with the change in IBM
The change that was brought about by Louis Vincent Gestner in IBM was based on the suitable identification of the issues that were faced by the business. The change that was primarily undertaken by Gestner was dependent on the definition of the core objectives of the business sustainability. It has helped the management in focusing on its common goal of maintaining the sustainability through assessment of capabilities, scope and readiness among the workforce (Waringand Skoumpopoulou2012). On the other hand, the decentralization of thedecision making process of the IBM’s management will be helping the same in preserving the diverse culture through utilization of transformational leadership style. It will be helping the organization in enhancing the productivity of the same through encouraging the active participation of the employees.
Gestner aimed at maximizing the staff reductions in order to cut off the costs that were undertaken by the organization through payrolls and compensations. However, he could have taken steps to build on the efficacy at team work through motivation.  Drzensky, Egold and van Dick (2012) stated that the productivity of businesses depends on the efficient functioning of the workforce while operating on the diverse set of objectives. On the other hand, continuous innovation in the processes of the business would have helped the management in enhancing its productivity (Bouckenooghe 2012). Alvesson andSveningsson (2015) stated that the changes in the organizational context is based on the time that is utilized by the management in reviewing and assessing the outcome of the modifications. Therefore, the different changes in the organizational context are based on the assessment of the capabilities of the same while operating in diverse international markets.

Elements of the kaleidoscope


Enabler (+)
Neutral (N)
Constraint (-)


The power of undertaking the change is based on the collaborative functioning of the management of the organization and the workforce. In this case, Gestner lacks in the power of undertaking the required changes in the organizational profile as the business face huge resistance from the employees and the other stakeholders relating to the job cuts and decentralization of the management decision making systems.



The time is not specified as per the case, which has helped the CEO in taking decisions on the different parameters of the change that might be implemented in the organizational structure.  However, suitable implementation of change in IBM’s processes is supported through the identification of the time that might be required by the project developers. It is noted that the circumstances that are faced by the organization required speedy decision making systems in order to facilitate the sustainability of the same while operating in diverse international markets. On the other hand, the definite time required for making the people aware of the change and inducing the practice is a necessary consideration.



The change that is planned by the organization is based on the remodelling of the different cultural elements that influence the decision making systems of the business. IBM’s CEO planned to undertake a major transformation of the processes relating to the decentralization of decision making and dismissal of the employees.  The change will be helping the organization in enhancing the overall operations of the same.



IBM’s CEO is well aware of the different aspects of change that is required to be undertaken by the management in order to enhance the operations. Therefore, the CEO has planned to implement a decentralized model of decision making, which will be helping the management in undertaking efficient decisions through assessment of the situation faced by the organization. However, Gestner had limited knowledge on running a computer business, which might affect the change processes that are planned by the same as per the needs of the organization. Therefore, the limited knowledge of Gestner in running a computer business might affect the decision making powers of the same which might affect the organizational processes. The competencies that might be faced by the organizational management are based on the limited knowledge on the technological aspects. It might affect the proper functioning of the systems of the business in understanding the specific areas of change of the same.



The organization aimed at enhancing the sales functions of the same while operating as per the needs of organizational sustenance. The enhanced productivity of IBM will be helping the organization in maintaining their competitive edge in the markets. On the other hand, the continuous innovative culture of the organization will be helping the same in maintaining their efficacy while operating in the diverse international markets.  The compounding sales   of the organization will be helping the same in preserving the activities and thereby add to the organizational sustainability.



The diverse workforce culture of IBM might constrain the safe implementation of change in the processes. The different aspects of change in the organizational functioning are based on the readiness among the workforce. Interest clashes between the management and the employees while implementing the change  might affect the smooth functioning of the systems as per the objectives.



IBM is a multinational; organization with huge funds and foreign investors which will be helping the CEO in implementing the change in the business processes more viably. The key elements of change in IBM’s context are dependent on the remodelling of the structure and culture of the enterprise in order to enhance the functioning of the workforce. Therefore, the concerned organization is capable of undertaking the required change in the processes through the assessment of the capabilities of the firm.



The change that was planned  by the CEO of IBM was properly communicated to the relevant stakeholders and the employees. It helped the organization in enhancing the possibilities of change readiness among the workforce resulting to the suitable implementation of the modifications in the business model of IBM.



Change Path

The evolution of IBM as per the market structure and position of the same is based on the enumeration of competencies that are faced by the organization relating to diminishing profitability and sales margin. The key areas of change that is implemented by the organization are changes in the employment structures and the management’s procedures of motivating the employees.



Change start point

IBM’s management undertook a top- down change where the CEO realized the need for the modification in the business processes in order to facilitate the steady growth of profitability of businesses.



Change style

The CEO implemented the Collaborative change style while imposing the modifications in the business model in order to facilitate the smooth functioning of the operations through active participation of the employees in the change process.



Change intervention

The change that is planned by the CEO in IBM’s business model is based on reviewing the different cultural elements that are adhered by the organization while undertaking its smooth operations. The delineation of power structures, organizational structures and control systemshas helped the CEO in devising different mechanisms inorder to facilitate the modification in the organizational systems.



Change roles

The change that is planned by the CEO of IBM is based on developing positive values in order to enhance the operations of the workforce through modifications in behaviours and attitudes. On the other hand, the role of the change that is being planned by the CEO is based on enhancing the output relating to maximization of profitability of the same.


Change that is implemented by the organizations is dependent on the utilization of different models. The models of change assist the organizations through critical pathways and activities for successful implementation of the modification. The section aims at gratifying the different actions that might be taken by Gestner in order to facilitate modifications in IBM through the utilization of diverse change management models.
Implementation of change through diverse models
Lewin’s change management model  
According to Cameron and Green (2015), the change management based concept is considered to be an important part of the effective operations of modern companies. Kurt Lewin’s change management model can be used in order to implement the required changes within the organizations. The case study, which has been analysed, is based on the changes, which have been implemented by the CEO of IBM in order to improve the profitability based levels of the company. The employees need to be provided with an understanding of the change process in order to reduce the levels of resistance provided by them. The CEO had to face high levels of resistance to the proper implementation of changes, which could have been managed with the implementation of the following steps,
Unfreeze – Gestner needs to follow the first step of change management process which is termed as unfreeze. The major issues, which are faced by the company, need to be identified effectively in order to start the change process. The major levels of changes which can be implemented within the organization are related to the culture which will be able to increase the levels of communication. The cost cutting based process and changes in salary structure based changes, which were implemented by the CEO needed to be communicated to the employees (Jayatilleke and Lai 2018).
Change – The second step of Lewin’s change management process is based on the implementation of changes, which have been planned by Gestner. This step will involve the implementation new salary structure. The employees had been taken into confidence in the previous step which will be able to play a major role in the lack of resistance provided by them to the change process. Gestner will be successful in including the employees in the change based process in an effective manner. This will be helpful for Gestner to maintain the levels of profitability of the company and further retain the effective employees (Kuipers et al. 2014).Christensen (2014) stated that the different modifications in the processes and the manner in which they were implemented affected the productivity of the business. The cultural shifts and centralized- bureaucratic management structure of the organization affected the organizational functioning in the early years resulting to poor productivity in 1990’s. Changes in the organizational structure and processes help in enhancing the efficacy of the workforce and thereby maximize the productivity. On the other hand, the different changes that are undertaken by businesses help in enhancing the goodwill of the same in a competitive market scenario. Thereby the radical changes that were undertaken by the concerned organization have resulted to different risks that affected the performance of the business as per the objectives.
Refreeze –The third step of the change process is based on the consequences of the changes, which have been implemented in the organization. This step will be related to the ways by which Gestner will be able to manage the operations of the organization effectively after proper implementation of changes. The case study has suggested that the changes had been successful in increasing the profitability levels of the company. However, the increasing stress levels of the employees were a major concern for the proper organizational operations. Gestnercan reduce the levels of stress with the help of proper inclusion of the employees within the change- based process (Matos Marques Simoes and Esposito 2014).
As discussed by Jayatilleke and Lai (2018), the implementation of Lewin’s change management process will thereby prove to be a major step, which will lead to the proper operations of the company in the industry. The organization will be able to operate in a profitable manner and the stress levels of employees will also be reduced as they are able to become an important part of the change implementation process. 
Kotter’s change management model
The change management model by Kotter aims at understanding the different viable steps that might be undertaken by the management of organizations in order to implement modifications successfully. Chappell et al. (2016) stated that change is based on the plans that are framed by the management and thereby decide on the most viable alternatives in order to enhance the scopes of the enterprise. The implementation of Kotter’s change management model in IBM would have helped Gestner in identifying the urgency that is faced by the business to bring forth changes in its systems. The definition of the needs of the organization and thereby supplementing the same through the creation of suitable mission and vision will be helping the organization in undertaking long term planning for the growth of the enterprise (Appelbaum et al. 2015). However, the different changes that were planned by Gestnerwere adequately communicated to the employees and the other managerial personnel, whichhelped in enhancing the change operations of the business.
The implementation of the Kotter’s change management model in the modification process would have helped Gestner in understanding the manner in which communication might be undertaken by him in order to facilitate the collaborative functioning. Al-Haddad andKotnour (2015) stated that the collaborative functioning of the management and the workforce will result to the smooth functioning of the processes through effective communication. Parker et al. (2013) also noted that the communication with the relevant stakeholders helps organizations in maintaining their proficiency at work while operating in the diverse competitive markets.
Empowering the workforce and encouraging theirinvolvement in the change process would have helped IBM’s management in maintaining the efficacy of the change that is planned by the businesses. Sloan, Klingenberg and Rider (2013) stated that empowering the relevant stakeholders in the change processes of the business helps in enhancing the operations  as per the common goal of undertaking the modification. IBM’s chairperson Gestnercould have taken steps to develop different strategies in order to enhance the involvement of the relevant stakeholders through consultation. It would have helped the management in undertaking concrete decisions as per the needs of the organizational change.
The creation of quick wins is one of the major steps that are undertaken by the managme4net in order to fulfill the objectives of the same while operating in the diverse markets. The last phase of the model aimed at Building on the change in the processes has helped the CEO of IBM in maintaining the proficiency of the functions while operating as per the objectives of maximizing the profitability of the same. Sticking on to the change will be helping Gestner in inducingthe change as an organizational culture.GorranFarkas (2013) stated that implementation of the change in the processes  of the business is the final step that might be taken by the manage4ment as per the Kotter’s change management model in order to enhance the operations of the same. Monitoring over the change and learning from the issues that persists while the change is implemented in the organizational processes provides the organization with an opportunity of inducing further modifications in the business processes.The implementation of Kotter’s change management model in the organizational context will be helping Gestner in implementing the relevant modifications in a systematic manner.
Therefore, from the above discussion it might be stated that the utilization of different change management models will be helping Gestner in undertaking possible steps for mitigating the issues and resistances that are faced by IBM while considering the modifications. On the other hand, the identification of the models and the implementation of the same in the processes will be helping the organization in undertaking a systematic review of the steps that might be undertaken by the firm in order to maximize the sustainability of the business. The discussion enumerates different change management models and the manner in which they might be implemented on the organization in order to enhance the operations of the same. The change management models will also help the management in enhancing the productivity and profitability through the suitable understanding of the capabilities of the same while operating in diverse competitive market conditions.The different changes that are undertaken by organizations are supported with the view of systematic application of diverse strategies through change models. The management of change in the organizational context is enhanced through the involvement of the workforce. The assessment of the capabilities and competencies of the organization enhances the scope of productivity and profitability of the firms as per the needs. Therefore, the discussion aims at delineating all the factors that might be considered by the organization while implementing change in the processes.
Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model for successful change. Journal of Organizational Change Management, 28(2), pp.234-262.
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change work in progress. Routledge.
Appelbaum, S.H., Degbe, M.C., MacDonald, O. and Nguyen-Quang, T.S., 2015. Organizational outcomes of leadership style and resistance to change (Part One). Industrial and Commercial Training, 47(2), pp.73-80.Brown, W. and May, D., 2012. Organizational change and development: The efficacy of transformational leadership training. Journal of Management Development, 31(6), pp.520-536.
Appelbaum, S.H., Habashy, S., Malo, J.L. and Shafiq, H., 2012. Back to the future: revisiting Kotter’s 1996 change model. Journal of Management Development, 31(8), pp.764-782.
Bouckenooghe, D., 2012. The role of organizational politics, contextual resources, and formal communication on change recipients’ commitment to change: A multilevel study. European Journal of Work and Organizational Psychology, 21(4), pp.575-602.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Chappell, S., Pescud, M., Waterworth, P., Shilton, T., Roche, D., Ledger, M., Slevin, T. and Rosenberg, M., 2016. Exploring the process of implementing healthy workplace initiatives: mapping to Kotter’s leading change model. Journal of occupational and environmental medicine, 58(10), pp.e341-e348.
Christensen, M., 2014. Communication as a strategic tool in change processes. International journal of business communication, 51(4), pp.359-385.
Drzensky, F., Egold, N. and van Dick, R., 2012. Ready for a change? A longitudinal study of antecedents, consequences and contingencies of readiness for change. Journal of Change Management, 12(1), pp.95-111.
Fink, M., Frank, H., Gundolf, K. and Kailer, N., 2015. Management of qualitative change in small and medium-sized enterprises: a kaleidoscope of theoretical and empirical research.
GorranFarkas, M., 2013. Building and sustaining a culture of assessment: best practices for change leadership. Reference services review, 41(1), pp.13-31.
Jayatilleke, S. and Lai, R., 2018. A systematic review of requirements change management. Information and Software Technology, 93, pp.163-185.
Kappen, D.L. and Nacke, L.E., 2013, October. The kaleidoscope of effective gamification: deconstructing gamification in business applications. In Proceedings of the First International Conference on Gameful Design, Research, and Applications (pp. 119-122). ACM.
Kazmi, S.A.Z. and Naarananoja, M., 2013, January. Comparative approaches of key change management models-a fine assortment to pick from as per situational needs!. In International Conference on Business Strategy and Organizational Behaviour (BizStrategy). Proceedings (p. 217). Global Science and Technology Forum.
Kuipers, B.S., Higgs, M., Kickert, W., Tummers, L., Grandia, J. and Van der Voet, J., 2014. The management of change in public organizations: A literature review. Public administration, 92(1), pp.1-20.
Matos Marques Simoes, P. and Esposito, M., 2014. Improving change management: How communication nature influences resistance to change. Journal of Management Development, 33(4), pp.324-341.
Millar, C., Hind, P. and Magala, S., 2012. Sustainability and the need for change: organisational change and transformational vision. Journal of Organizational Change Management, 25(4), pp.489-500.
Morioka, S.N., Bolis, I., Evans, S. and Carvalho, M.M., 2017. Transforming sustainability challenges into competitive advantage: Multiple case studies kaleidoscope converging into sustainable business models. Journal of Cleaner Production, 167, pp.723-738.
Parker, D., Charlton, J., Ribeiro, A. and D. Pathak, R., 2013. Integration of project-based management and change management: Intervention methodology. International Journal of Productivity and Performance Management, 62(5), pp.534-544.
Pollack, J. and Pollack, R., 2015. Using Kotter’s eight stage process to manage an organisational change program: Presentation and practice. Systemic Practice and Action Research, 28(1), pp.51-66.
Sloan, K., Klingenberg, B. and Rider, C., 2013. Towards sustainability: Examining the drivers and change process within SMEs. J. Mgmt. & Sustainability, 3, p.19.
Swanson, D.J. and Creed, A.S., 2014. Sharpening the focus of force field analysis. Journal of change management, 14(1), pp.28-47.
Vermersch, W.L.R.P., Carteado, R. and Johnson, A., 2016. Change management as an indispensable component when planning for NRW control.
Waring, T. and Skoumpopoulou, D., 2012. Through the kaleidoscope: Perspectives on cultural change within an integrated information systems environment. International Journal of Information Management, 32(6), pp.513-522.

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