Organisational Leadership and Change Essay Example | Topics and Well Written Essays - 1750 words

Organisational Leadership and Change - Essay Example The mission of the organization is to lead the industry, serve the people and make unique differences for the business partners. The organization became popular due to its innovative product and service differentiation (Honold, 1997, pp.22-24). However, recent financial crisis forced the organization to implement major restructuring and change process. They implemented reduction in-force strategy to overcome the impact of economic challenges. In the year 2009, the financial crisis affected the service business of Microsoft in Asia (Ang, 2012, pp.12-13). The organization terminated numerous employees like those associated as support staffs and consultants. Inadequate implementation of retrenchment theory and change management process developed several critical issues. These workplace conflicts reduced the image and reputation of the organization in global market place. This reduction-in-force strategy reduced the motivation level of the employees. This change management concept increa sed job insecurity of employees (Greenhalgh and Rosenblatt, 1984, p.8). However, after an open discussion, the organization tried to develop several sustainable strategies in order to maintain its brand image within the global market place. ... In 2009, the financial crisis occurred through all over the world. Due to of this financial crisis, many workers were laid off. The organization’s morale was all time low; even the general managers were also replaced. Employees were highly dissatisfied and de -motivated due to the strategies taken by the management. Organization takes retrenchment strategy when they have to reduce their cost. In this strategy, organizations reduce the overall size and diversity of the operations. The goal is to get a stable financial growth by cutting down the expenses. The organization follows a contraction of its activities by reducing one or more functions or eliminating the scope of business. For example, one company, as a part of retrenchment strategy, can focus only on a single segment of a business which gives it a higher revenue opportunity. For example a hospital can focus only on the special theatre and ignore the general theatre because the special theatre provides them better reven ue. During the retrenchment, the company follows change management strategies after a little discussion with the employees. It was the first time; the company reduced 20% of its workforce. The sudden workforce reduction of the company had a huge negative impact on the employees mind. The overall situation was very frustrated and uncertain. The employees were highly de-motivated that even after 6 months of the incident, the employees were talking about the workforce reduction. Significant drop was noticed in the workgroup health index (WHI). WHI is an index used to measure the employee engagement and leadership. The results of WHI indicated that Microsoft scored 76 points only and it was the record failure of the company. The company judged their leaders on the basis of