Leadership Research Proposal
There are many pieces to the puzzle that can make or break a merger/acquisition. While a well-thought out plan is important, it is the people who carry out that plan that will decide its level of success. The following is our department's transition plan. Here, the needs and criteria for developing effective leadership; its practical and theoretical dimensions, the staffs' communication, and empowerment issues, as well as, the needs of the group, are discussed.
Leadership is easy to recognize, but difficult to define. It is a journey with many detours along the way; it involves experimentation, failure, risk and rewards, and movement toward a specific set of goals. Effective leaders explore their own motivation and reflect upon successes and failures. They are able to analyze failure and extract lessons that can lead to success in the future. (Donnelly, 2003, p.8)
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As a merger takes place, there is a need to develop a plan and goals for the leadership team. The first objective for a new leadership team is to get to know the staff. Each member of the new team will offer a different perspective, and bring a variety of skills and experience to the team. Learning how staff relates to one another is a key for building an effective high performance team. Some staff may be leaders, and others, followers; therefore, understanding the patterns of relationships amongst staff is a key element.
Context is the next need that must be developed. It is vital to set goals and/or visions with the staff, which may include values and traditions. Defining the structure of groups and individuals is necessary for the new leadership team. The leadership team must determine whether: the staff solves problems passively or as a team; the staff is committed to completion of work and are accountable for it; conflicts are solved quickly; the staff support one another; staff works as a team or do they place higher values on individuality; there is a history of the staff participation with the leadership team. (Donnelly, 2003, p. 8)
The third element of the leadership plan is purpose. Purposeful leadership unleashes leadership potential in others. (Donnelly, 2003, p.8) It is important for the leadership team to influence staff members, to build a plan of action that will lead towards organizational goals. Influence requires positive and effective relationships among the leadership team and staff. Zuker defines influence as the ability to affect others without exerting force or formal authority. (Zuker, 1991) Listening to employees without judging is crucial where influence is concerned.
The fourth element of this plan is accountability. It is necessary for leadership to be accountable and foster accountability among staff. It requires a continuous effort and should be integrated into all aspects of leadership and management. Empowering staff can improve efficiency, as they will feel that they have the authority to make decisions, without having to wait for someone else's permission. The staff will perceive autonomy and involvement. The goals and expectations must be made clear to the associates; they must be provided with the necessary information and resources to make the right decisions.
Effective leadership is dependent upon outstanding leadership styles and the successes of people leading an organization. When developing a leadership plan for the planned merger/acquisition transition, one must look at the leadership skills of those within the management team. Effective management does not equate with effective leadership. Do they have the characteristics, skills, and abilities of a successful leader? According to Weiss (2000), characteristics of good leaders include energy, ideas, success, responsiveness, and command. Leaders must have positive energy and charisma, which stimulates their staff. These leaders have many ideas to share, and previous successes, which support their effectiveness. Staff will have confidence in their leaders' abilities, faith that they will lead them in the right direction, and will feel validated by being included in the planning process. Command refers to "perseverance in promoting a plan and quickness in reacting to challenges" (Weiss, 2000). Weiss (2000) also discusses important abilities of an effective leader. They exemplify their own beliefs and values in their day to day performance. They go that extra mile and always work in collaboration with staff. Suggestions, to enhance processes and problem solve, are always included for consideration. Extra efforts by staff are acknowledged and insufficiencies are dealt with. Indecisiveness is not an option for the effective leader. In this situation, staff will lose faith and respect for their leader. It is imperative that today's leaders continue their own education by attending workshops, seminars and continuing education courses. Not all leadership skills and abilities are innate; they must be learned. Along with faith and respect, staff must trust that their leaders are directing them on the right path. Delegation of duties involves staff in the functioning of the organization and fosters a buy in, collaboration, and faith that the organization is moving in a positive direction. It is imperative that staff understands exactly what is expected of them to ensure their success. The importance of influencing peoples' performance is also expressed by Weiss (2000). Leaders must acknowledge and appreciate the efforts of their staff. They must be treated fairly, equitably, and must be trusted. When planning for any project or fulfilling a management position, successful leaders must be sought.
An approach to leadership follows various theoretical models. For this merger/acquisition transition, the path-goal theory, developed by Robert House, is applied (Robbins, 2001). This theory supports the idea that "it's the leader's job to assist his or her followers in attaining their goals and to provide the direction or support or both needed to ensure that their goals are compatible with the overall objectives of the group or organization." (Robbins, 2001, p.229) During this merger/acquisition, leaders will be sought for supporting the transition and assisting staff through the process, while at the same time, maintaining or improving productivity. The leaders' role is to assist the staff to achieve "their work goals and make the journey along the path easier". (Robbins, 2001, p.229) Four leadership behaviors are identified in this theory. They include directive, supportive, participative, and achievement oriented (Robbins, 2001). Directive leadership will be used to explain to staff their roles and responsibilities within the transitioned organization. It is important for staff to understand job expectations, as well as, specifics on how to accomplish their work in an efficient manner. Supportive leadership will improve job satisfaction by letting staff know that their needs are considered and valued. During the merger/acquisition there will undoubtedly be, job losses, and changes in roles, responsibilities, and job descriptions. Staff will need to understand that their leaders understand the difficult times they are going though, and assist those that will be unemployed to be successful in seeking other jobs. The participative leadership style will include staff in the decision making process. Their ideas and suggestions will be considered as a group and decisions made. This leadership style encourages staff buy-in, improved compliance, and satisfaction with the final outcomes. With staff inclusion in the decision making process, resistance to change can be somewhat reduced. The final leadership behavior to discuss is achievement "oriented behavior. By setting ambiguous work related tasks employees are encouraged to work at their highest level" (Robbins, 2001). One of our new organization's goals is to have less bureaucratic structural design, which will empower staff to take ownership of their responsibilities and productivity, and encourage greater participatory communication.
During the process of massive change, there is an increased need for communication between management and staff. For some organizations, lack of communication may continue after a merger/acquisition. According to Tom Geddie of ABC "companies are discovering that they cannot take employees for granted if they want to thrive in today's increasingly complex business environment". (Anonymous, 1997)
While most companies understand the need for increased or better communication, the question is how do they know what is the best method for their company? Collecting information about the communication techniques other organizations use, provides useful information, but is not a blueprint for improvement. Organizations can obtain many strategies for employee communication by researching other successful company's communication style. However, just because some other company does something well, this doesn't mean it will work for every organization. It could even be detrimental. What you do must be aligned and crafted to support your business mission and values. (Ackley, 1997)
Ackley provides an excellent guide with regard to what employee communication should accomplish. "Employee communication, like every function, must help the organization make money, save money, increase customer satisfaction, and demonstrate the organization's people values. And it must propel the organization's vision by helping teach employees how to do their work"‚" (Ackley, 1997) An organization's vision and mission are covertly and overtly communicated even they are not written down. Employees demonstrate the organizations mission, values or personality in their work ethic. (Ackley, 1997)
Although there is no one best way to implement employee communication during stressful times, such as a merger/acquisition. James Secord, CEO of Lakewood Publications went through three separate takeovers in sixteen months during 1994 and 1995. He gives four basic principals to keep the communication strong between management and staff. He states that first there needs to be a "shared vision as well as shared incentives". (Secord, 1996) It is important that everyone be asked to participate in the communication process.
Next, it is critical to create an atmosphere of openness. Share as much information with employees as possible. Don't hold anything back. Even if there is no new information, keep communicating. Openness is the antidote to crippling uncertainty.
Middle and senior management need to make themselves available to staff. It is extremely important, no matter how busy, to make time to be in the department. They should ask staff how they are doing, and allow them to express their fears so management can address all concerns. It is important to be prepared to go through some tough times. Communication is imperative. Leaders must try not to anticipate how staff will react to bad news. They may surprise you.
Another aspect that goes hand in hand with better communication is the empowerment of employees. Particularly when staff has been downsized, the remaining staff needs to be motivated and energized. The importance of empowering the remaining staff is critical to the success of this merger/acquisition. When staff size is reduced, the remaining staff frequently has heavier workloads and extended hours, which lead to higher rates of absenteeism and turnover, both of which are very costly to the organization. In order to regain our competitive edge we need to make some changes.
According to Dr. Gail Cook Johnson, president of REACON Management Inc., "companies that provide superior service gain their competitive advantage by empowering employees". (1991) She lists a number of attributes that organizational leaders consistently do which improve their employee's performance.
Management must follow through with what they say they will do, rather than say one thing and do another. Management needs to do more than just state high ideals and principals. They must be willing to update systems that improve employee's ability to do their jobs well.
Fairness is another trait that employees notice about good management. Employees need to have clear expectations about what behavior is acceptable and unacceptable. It is also important to be clear about the goals of the organization and how staff can accomplish them.
It is important to demonstrate value for employee's ideas and encourage them to make suggestions. Allowing staff to carry out their recommendation keeps them more connected and committed to the process and the organization. Some propose that in order to encourage employee suggestions that management pledge to address those submissions within 72 hours. (Epstein, 1998) When management gives staff more flexibility and personal responsibility to solve customer issues then both staff and customer satisfaction increases.
Empowering staff is not just about the latest human resource trend. It is a management tool, which increases the intrinsic rewards for staff, thereby making their jobs more satisfying and fulfilling. It is rewarding to both employees and customers and, therefore, makes good business sense. (Johnson, 1991)
The one important need, of a group in transition, is effective communication. For the leadership team to expect high levels of commitment, staff must be made aware of the mission philosophy and goals of the organization, and their relationship to them. It is essential to create a healthy organization to establish dialogue and communication that will connect people throughout the organization. Effective teams are built on a foundation of inclusiveness, collaboration, communication, relationships, vision and accountability, with communication being one of the most critical elements. (Donnelly, 2003, p. 107) Clear communication is the link between all levels of the organization. Distributing useful information to employees about planned change and providing them with a means of giving feedback is essential. Communication is of utmost importance before, during, and after any change process.
Another important aspect of the needs of individuals or groups is to be able to share the vision of an organization. It depicts where the team wants to go and what it will look like when the team gets there. It is an image of the future. Leaders can articulate what an organization or team can and should accomplish as a means of drawing attention to the vision.
Fairness and justice are needs that for many people must be fulfilled. Staff is much more effective and efficient when working in an environment that is tempered by fairness and justice. Staff should see that everyone is being treated the same. (Weiss, p.5)
Two very important needs of staff member are appreciation and acknowledgement. It is important to take the time to thank team members and recognize them for their achievements and efforts. To create recognition and appreciation models that work, leaders must focus on things that are within their control. Leaders can create a recognition plan that is meaningful, and creates a culture of pride and teamwork. Employees need to know that their efforts are valued, and that their attempts to improve the organization are a beneficial and appreciated. (Donnelly, 2003, p. 142) By communicating the appreciation of the leadership team to the staff it creates a culture where it is safe to try new things.
Mergers and acquisitions happen due to fiscal issues. Its success depends on a well thought out leadership plan. As discussed, there are many critical issues pertaining to this merger/acquisition. None is more important than the resource of people, management, and front line staff, who work tirelessly to keep our organization running, improving and succeeding well into the future.
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