LEADERSHIP DEVELOPMENT
Company Selected: Rolls Royce
Table of Contents
Appendix 1: Emotional intelligence domains and parameters 10
Part 1
Leadership plays an essential role in the context of any organisation. This is because strong leadership can help in the growth and development of an organisation by influencing and motivating the employees and other business stakeholders (Anderson and Sun, 2017). In that context, leadership can also be used to implement change within an organisation successfully. It can help the leaders to achieve relevant changes in their business or enterprise, in such a manner that does not negatively impact the workforce (Al-Ali et al. 2017).
Therefore, the aspect of leadership can be used by organisations today to manage and implement changes successfully. In that context, Rolls-Royce, the British Automobile and equipment manufacturer, has also proposed to achieve a change in its fundamental organisational structure. Ineffective leadership style is one of the vital issues existing within the organizational operations of Rolls-Royce that they need to overcome through conducting organizational change and incorporating effective leadership styles. This change aims to implement suitable changes within the organisational structure, which can allow the company to compensate for any practical and operational challenges at present (Rolls-Royce, 2020). A similar type of change was also announced by the company previously, which aimed to improve the organisational structure to a leaner and more agile form (Rolls-Royce, 2018). However, considering the size and complexity of a relatively large manufacturing company like Rolls-Royce, there have been significant challenges in implementing such changes, such as employee resistance, logistical problems, and lack of proper management guidance due to the ongoing pandemic.
Part 2
Leadership styles
The aspect of leadership styles can be described as the process or method followed by a ladder to motivate and influence people within an organisation. As suggested by Anderson and Sun (2017), leadership style often overlaps with other organisational and management aspects. Therefore, it can be used by leaders to guide and motivate their employees successfully. In that context, there are different leadership styles exhibited by organisational leaders, which are autocratic, democratic, laissez-faire, and authoritative, and other such methods. Goleman’s theory has emphasized strengthening the “emotional intelligence of organizational workers by leaders to improve their performance levels (Livesey, 2017). The prevalence of any given style in an organisation is dependent on the competence and capabilities of the leader, as well as other organisational factors such as human resources, stakeholders, and others. In that regard, as studied by Fiaz et al. (2017), some of the leadership styles are more favourable and effective than others, especially for complex scenarios, such as running an organisation in emerging economies, implementing major changes, or managing a large workforce. These include autocratic and authoritarian leadership styles, which can help leaders manage large organisations, such as Rolls Royce, effectively in a volatile business environment. However, as argued by Hunt and Fitzgerald (2018), such leadership styles may cause discourse among leaders and subordinates, due to a lack of empathy for the workforce typical in such styles. Rolls-Royce uses the autocratic leadership style to manage “crises properly” but faces worker’s demotivation issues due to a lack of involvement of the workers in the organizational decision-making process.
Subsequently, as stated by Finney (2019), the other forms of leadership, such as democratic and laissez-faire leadership, can also be utilised at modern business establishments more effectively. This is because such leadership types emphasize the welfare of the workforce and employees, who need to be motivated by the leaders. As a result, the emphasis on empowering human resources through leadership can better achieve organisational objectives. However, as Puni and Bosco (2016) argued, such leadership styles may put excess emphasis on employees, which can be disadvantageous for larger organisations. Therefore, such aspects can also be applied in the case of companies like Rolls Royce.
Emotional intelligence and leadership
Emotional intelligence is a vital behavioural trait that plays an essential role in leadership. As stated by Serrat (2017), emotional intelligence is a personality trait that enables individuals to assess and monitor themselves or others’ emotions. It also allows them to control or influence these emotions in a favourable manner. Therefore, an emotionally intelligent individual can easily affect and manage their feelings of others. This helps them to resolve conflicts, motivate employees, or make rational decisions. Therefore, as suggested by Nabih et al. (2016), leaders need to be emotionally intelligent, so that they may be able to motivate employees properly, or resolve and conflicts to maintain professionalism and integrity within the workforce. This increases the effectiveness of their leadership, making the management of different aspects of an organisation or business relatively easier (Miao et al. 2017). As a result, it can also be applied in the case of Rolls Royce to manage its leadership style.
However, emotional intelligence cannot be used as a sole determinant of leadership competence. As argued by Morris and Feldman (2020), emotions have little significance in the professional environment, driven mostly by logic and critical thinking. In that context, emotions should not be expressed in such a manner that may affect individual productivity. However, as stated by Vikan (2017), expressing feelings should not be suppressed entirely in such an environment. Therefore, it is essential for Rolls Royce leaders to be emotionally intelligent and have additional behavioural competencies so that such aspects can be effectively managed [Refer to Appendix].
Leadership and Change
Change is an inevitable aspect of any business or organisation, as changes must remain relevant in the changing market conditions. Furthermore, it also allows organisations to implement updated systems and frameworks to increase operational effectiveness. In that regard, as suggested by Rosenbaum et al. (2018), managing such changes in organisations assumes considerable significance. Any changes or plans for implementing changes are appropriately monitored and executed in the organisation. However, as Hayes (2018) argued, implementing changes within an organisation can encounter several challenges, such as resistance from employees, lack of proper change management framework, or others. In that regard, the leadership of Rolls Royce can play an essential role in implementing such changes, where effective leaders can identify and mitigate any of these challenges successfully.
According to Deschamps et al. (2016), transformational leadership styles can enable organisational leaders to influence and motivate their workforce to acknowledge the necessity of change or identifying the benefits of change. This helps in successfully planning and implementing significant leadership change in organisations, like Rolls Royce. Furthermore, effective leaders can provide a means for guidance and support for employees after change execution to maintain that workplace integrity. However, as argued by Al-Ali et al. (2017), the organisational culture also needs to be developed in such a way that it can help in managing changes. Weak corporate cultures cannot be favourable for such processes, regardless of leadership competence.
Part 3
The implementation and management of change is an essential and inevitable aspect of businesses. It is especially crucial in the modern business environment, as business systems and processes are being rapidly developed and improved continuously. Therefore, to keep up with such developments, change implementation is essential. Based on this consideration, Rolls-Royce had initiated a change and restructuring of its organisational processes to allow for better transparency and productivity. This was proposed by implementing agile and lean systems within their manufacturing process, and HRM system by reducing production costs and implementing “periodic feedback checkpoints” (Rolls-Royce, 2018). However, in the current global scenario, the company has accelerated by achieving around a “25%” boost in its car sales volume between 2018/7 and 2018 by investing in its production factories and generating new job roles (Globe newswire, 2019).
They have prioritized this change process in light of the ongoing pandemic situation started in January 2020 and continuing till now, so that the medium-term impact and recovery after the pandemic, can be managed (Rolls-Royce, 2020). Through such a change, the company seeks to change leadership style, which will increase transparency and reduce costs. However, considering the present situation, the company has faced challenges in implementing such a change within the organizational structure (Charlotte, 2020). This challenge can be primarily attributed to employees and workers, who may resist the change at such an acute condition, citing difficulties in adapting to new structures. In that context, the leadership at Rolls-Royce also faces challenges in maintaining organisational transparency and communication, which can negatively affect the change management process (Julia, 2018).
Regardless of the challenges, the leadership of Rolls-Royce needs to implement such a change in the company. As stated before, this will be beneficial for the medium-term goals of the company. In that context, the company needs to change several processes, “reducing manufacturing costs” and systems such as performing “periodic employee feedback sessions” across different units to successfully execute such a change. Considering the range of activities undertaken at Rolls-Royce, the various aspects of manufacturing, assembly, and procurement need to be changed in addition to marketing and management processes. Rolls-Royce typically follows a conventional structure, including top-down communication flow. The leadership can be regarded as autocratic, where the CEO and other higher officials make most organisational decisions (Rolls-Royce, 2020).
It will also impact other stakeholders such as employees and suppliers, who will need to adapt to the modified working conditions (Appelbaum et al. 2017). Furthermore, the organisational culture may also be affected, which can eventually lead to disadvantageous situations by alienating employees and stakeholders such as suppliers. Implementation of ideas from the stakeholders about organizational decisions under the changed structure might cause “Rolls Royce” to take improper choices due to the existence of faults within the stakeholder’s odes.
Different management personnel will provide the highest resistance to change at the company, as it will require them to adapt to considerable changes to their roles and duties. This can subsequently lead to conflicts with the company leadership, which can impact business functions adversely. However, in comparison, the employees may not be affected by such changes to a significant extent. Regardless, even the employees will be impacted to some degree, as they will need to adapt to new management conditions. Furthermore, other stakeholders, such as suppliers, will also be affected, as the pre-existing supply chain system will be changed (King et al. 2018). This may also lead to resistance and conflicts from such stakeholders in implementing the proposed change.
Despite the conflicts, the management needs to implement such a change to ensure organisational efficiency and performance on the broader market. However, specific ethical issues and complications may arise in such a scenario, which can impact the market image and productivity of Rolls-Royce (Rolls-Royce, 2020). These ethical issues may include loss of job satisfaction among employees and personnel, inability to account for the difficulties and problems faced by certain individual employees, or even reduced pay or employment terminations. However, ethical issues, such as reduced pay or terminations, will affect everyone negatively. Therefore, the leadership at Rolls-Royce will need to consider all of these ethical issues and challenges before fully implementing the change. This will subsequently enable the company’s leadership to minimise the negative impact of the change among its human resources, while also achieving the primary objective of the change.
Part 4
Adopting lean HRM system
“Lewin’s three-stage change model” highlights the necessity of organizations to perform unfreezing, change movement, and refreezing stages” to implement organizational changes successfully (Hussain et al. 2018). The company leadership at Rolls Royce should try to change the organization’s status quo by highlighting the needs for implementing a change, especially in such difficult times. Rolls Royce needs to perform the “unfreezing stage” by making its workers aware of the change process of adopting a lean HRM system and its probable outcomes. They should aim to communicate and provide basic guidelines for implementing the change on a large scale. The actual change should be performed by the leaders at Rolls Royce, so that the employees may be given a chance to acclimatize and familiarise themselves with the change.
Furthermore, any issues and problems faced by employees and other stakeholders should be managed at this stage. The implemented changes should be slowly adopted throughout the company, where employees should be encouraged and motivated to adapt to such changes fully. Subsequently, these changes should be gradually reinforced among the stakeholders by highlighting the benefits and achievements. The stakeholders’ feedback about the newly changes organizational structure needs to be collected by Rolls Royce management to ensure acceptance of the arrangement amongst the stakeholders.
Implementing agile manufacturing system
“Lewin’s three-stage change model” emphasises implementing organizational change by creating urgency, developing a vision, communicating the concept to the stakeholders, and then applying the change (King et al. 2018). Rolls Royce management can generate the urgency of performing organizational change by highlighting the global crisis caused through the “COVID-19” outbreak and developing a vision for the change process. They can share the vision of adopting the agile and lean structure and communicate the same to their stakeholders to gather their views and then implement the change. As stated by Carrión-Garcia et al. (2017), organizational leaders often follow the “Deming model of change” through making change plans, performing the change, monitoring the change process, and then acting to making necessary improvements. Rolls Royce can follow this model by making plans for the “Agile production process,” reducing material costs, and then implementing the plan to avail organizational growth.
Reference List
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Appendix 1: Emotional intelligence domains and parameters
(Source: https://hbr.org/2017/02/emotional-intelligence-has-12-elements-which-do-you-need-to-work-on)