This may create a resistance among employees who may think about their job security and position. According to Robbins and Judge (2007), one of the best documented discoveries from studies of individual and organizational behavior is that organizations and his or her members resist change. At times leadership may not take into consideration the importance of communication when change is in plans of the organization. Usually, leadership will quickly announce the change internally and externally without thinking of the effect to the organization.
Gene One is an organization that has an immense future and growth. The leadership of the organization understands that the company would start an Initial Public Offering (PIP), which would require several changes within the organization. Gene One’s leadership has various points-of-views on what should take place. For some, the change is at the right time, and for others going public would jeopardize the company because the organization is not ready for the change at this moment.
With today’s business environment with globalization an organization must make the necessary steps to ensure the future of the company. According to Robbins and Judge (2007), a global economy means that competitors are as likely to come from across the ocean as from cross town. Leadership The Chief Executive Officer (CEO), Don Uric, understands that the organization has no experience with an PIP and the importance of the company to assess what needs to be done to reach the goal. The Chief Financial Officer (CUFF), Michelle believes that the company should make the move because the timing is right.
Michelle questions if the organization can overcome some bad publicity about the industry even though the news is not direct it may affect the company. The Chief Technology Officer (COT), Term is a bit reluctant to move forward, but offers valid points as how to go about the changes. The Marketing Officer, Charles, is brilliant in marketing, but needs to focus more on the details. According to Robbins and Judge (2007), companies that have been successful in the past are likely to encounter restraining forces because people question the need for change.
Gene One Scenario Reading the Gene One scenario was interesting to say the least. Learning Team B discussed how the change may affect the team and who may be more competent in a leadership role. An example of an employee who left the company because of the plans to go public can be the start of a trend. This type of behavior may e unavoidable because some may embrace change others will resist changes in an organization. To ease the tension within the company leadership must be consistent in their communication and obtain employee feedback.
This in turn will make the employees feel a part of the change and allow the participation of the components that make the organization move forward. According to Robbins and Judge (2007), it appears that people who adjust best to change are those that open to experiences, take a positive attitude toward change, are willing to take risks, and are flexible in their behavior. To go public Gene One must complete various tasks, which involve Michelle and Greg, who is the human resources manager to study the Serbians Solely Act (SOX).
The act may affect the organization in many ways, and a good assessment is vital to the company before the PIP. The SOX requires that the PIP governing board include independent directors and a minimum of one member with a financial background as a Certified Public Accountant (CPA) or CUFF. The financial issue with SOX is that the organization will have to submit the Security and Exchange Commission (SEC) with financial statements for which management ill be personally liable. To bring assurance to the financial statements Michelle believes that this issue will require an external accounting firm.
Greg recognizes that the board members and the executive team must have a clean background and that compensation methods be proper. Greg also recommends that any communication about the PIP to the employees be in a way that no employee will lose confidence in the organization. As for innovation, Term is known to produce with brilliant inventions, although she is remorseful to expand and change. This will probably limit innovation or may protect the organization from costly mistakes.
With Titer’s creativity and Michelle financial knowledge Gene One could arrive at a balance in creativity and financial accountability. Both do not see eye-to-eye from once in a while, but the combination of the two may develop productive discussions and innovation. According to Robbins and Judge (2007), an organization’s distinctive competencies define what it is that the organization does better than its competition. Leadership Style According to Yuk (2006), the situational approach emphasizes the importance of contextual factors that influence leadership processes.
Major situational rabbles include characteristics of followers, nature of the work performed by the leaders unit, the type of organization, and nature of the external environment. In handling the changes within the organization the situational style of leadership may provide to be most effective. In this style management and leadership must adapt to changes, and relate to the transformation that will take effect throughout the employees and management. Communication is important to keep employees aware and ease tension about the organization, which will help reduce employee loss because of these changes.
Situational leadership incorporates various styles and may provide a balance in the decision-making process. The style focuses on the premise that no one specific type of leadership style is better for all situations. Instead the style focuses on the situation to dictate how the leadership should handle the changes within the organization. According to Hershey and Blanchard (1977), they proposed a contingency theory that specifies the appropriate type of leadership behavior for different levels of subordinate maturity in relation to the work, which defines a situational style of leadership.
The style dictates that the level of employee maturity decides the appropriate mix of tasks and relation behavior for the leader. Gene One is similar in this way because the employees are at different levels of maturity. The leadership is in the mature level, and the company is at an immature level. As the company develops and varies so does the way in which a leader can manage the organization. Striking a balance between task and relationship behaviors is the best way to lead people and manage a company. The situational style of leadership has a focus in developing an effective leader.
This would involve pairing the leader’s behavior types with the performance requirements of the employee or team. According to Yuk (2006), Situational variables also influence subordinate preferences for a particular pattern of leadership behavior, thereby influencing the impact of the leader on subordinate satisfaction. End Vision Gene One’s end-vision is to create new and better products that can change the lives of people around the world. Learning Team Bi’s vision is to strive to create new and innovative technologies that will bring healthy, fresh, and affordable product to the world.
Gene One strives also to make contributions to their stakeholders and to society. Gene One’s leadership must recognize the vision of Don so the organization can move toward the goal of an PIP. The leadership team must maintain employee trust within the organization, which may be done by effective communication throughout the processes or changes. This end- vision shows that the company has a commitment to their stakeholders and to what is best for society. This statement will strike a balance is the way the public reacts to Gene One going public.
The company will have to be committed o their stakeholders financially; this is something that every public company should have a commitment to however: Gene One must also appeal to the public interests and what is best for the world.