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Case Study and Leadership Theory of Procter & Gamble

Question :

Leaders play an important role in shaping the environment of the business. It is important to have the efficient leader which can foster change in the management. This project is based on case study which is relating to leadership and change.

  • knowledge of leadership theory and organisational change.
  • Understanding importance of management and leadership.
  • Key drivers of change and resistance to change.
Answer :
Organization Selected : Procter & Gamble

INTRODUCTION

The leadership and change refers to a process by which complications arises due to introducing modification can be cope up by taking more accurate actions towards the same. It includes to make several effective as well as efficient strategies that are helpful in responding to certain changes of market trends. There are various kinds of fashion that required to be determined which are adopted by people then it is necessary to follow them to garb more customers towards the specific brand (Schalock and Verdugo, 2012). This report is based on P&G which is known as an American multinational consumer goods corporation and headquartered in down town Cincinnati, Ohio, U.S. It was founded by William Procter and James Gamble in the year around 1837, almost 180 years ago. This assignment is described according to the given case study of P&G including their effective or unique strategies to maintain work force and organisational culture. It also involves discussion for leadership theory at time of Jager's working period in company.

PART 1

Durk Jager's Leadership

According to the given case, Durk Jager has appointed as New CEO of P&G and then they face challenges and feel requirements of applying changes into organisational culture. After observing and analysing thoroughly about situations and working style of employees, they realise the need of modification in organisation and launched a programme 'The Organisation 2005' having an aim of radically changing P&G's methodical, bureaucratic, conservative and slow moving culture to fast moving. As per style of leadership of Jager, they divided this event into four pillars such as global business units, market development organisations, global business services and corporate functions. Thus. These factors are described below:

  • Global business units: This section includes several products like baby, feminine, family, beauty, food & beverage, fabric, home and health care (Morrison, 2012). In this, they focus on global level and think for customers living worldwide by generating strong brand equities, innovation in products of P&G to build major brands.

  • Market development organisation: In this part, it includes various geographical areas in which different techniques are required to be used by thinking from local point of view to grab different market areas porously. Jager put efforts to maintain brand strength at several nations such as North America Asia, North-east Asia, Greater China, Central Eastern, Western Europe, Latin America, India etc. 
  • Global business services: This section involves GBS Americas located in Costa Rica, GBS Asia situated in Manila and GBS Europe, Middle East and Africa located in Newcastle (Hill And et. al., 2012). It involves an effective policy of reducing administration costs by carried out transactional activities together like accounting  d order management in P&G. 
  • Corporate functions: This refers to a division that includes various factors such as customer business development, external relations, finance & accounting, human resources, information technology, legal, marketing, consumer & market knowledge, product supply, research & development and workplace services.  Thus, they conduct all these functions with smart philosophy in best way.

There are different types of strategies which are adopted by Durk Jager for carrying required activities or procedures in correct manner to overcome with several challenges and maintain profitability of the given organisation. Some of these techniques which are used in P&G are as follows:

Use IT as catalyst for changes: This can be described as to conduct various kinds of operational activities and other events with the help of IT tools for responding to several changes. It is necessary to make an appropriate policy in which IT techniques are perform as catalyst to that provide support in coping up with resulting complications in company. The term catalyst refers to those elements which helps to complete particular process more quickly for gaining desired results (Kellerman, 2012). In case of P&G, the Durk Jager has utilise several methods of information technology to speed up overall activities of company in proper manner to reduce production time and conduct supply of products in market as per demands of customers.

Read more: Practice and Strategies to Minimise Abuse in Health & Social Care

Speed up decision making: The term decision making is very important in business because a right choice results into huge profit but a single minor mistake can spoil all over efforts of people. It is necessary to make decision about different types of tasks or procedures of operations by thoroughly observing and analysing relevant factors and situation. Along with  taking steps in correct manner, it is also mandatory to speed up process of making new strategies and implementing criteria at desired period of time to grab more profit share successfully. The Durk Jager focus on correct decision making in quick manner to build beneficial plan of action to boost up regular productivity as well as profitability in P&G business. Speed up decision making indicates about the fact that every tasks has particular time to be completed then only it will render desired benefits.

Innovate and introduce new products: The term innovation can be ex-plained to build new ideas or thoughts and make fresh product with brand new concept to introduce fresh thought in market (McKimm and Till, 2015). It can be considered to launch a different trend of product or services in market place that helps to attract more number of clients towards brand and goodwill become improved. In case of P&G, Durk Jager think about to modify the traditional philosophy and enable company to innovate fresh goods to launch in market for grabbing more profit share by sustaining strong position in in front of competitive firms and people.

Eliminate bureaucracy: This can be explained as the technique in which it is strictly mentioned to follow several rules and regulations implemented in management. It includes special criteria in which it is mandatory for every person to focus on their official roles or duties carefully to fulfil allotted tasks properly. Every employee must remain professional and complete their own responsibilities in an accurate way by generating desired outcomes on regular basis. The Durk Jager eliminate the strategy of bureaucracy so that better cooperation between staff members that provide support to conduct different operational procedures in correct direction along with creating better outcomes.

Reduce costs: The term costs reduction refers to maintain overall activities or events through properly analysing them and determine waste of raw material and funds (Harris, 2013). It is beneficial to observe and evaluates different processes of business which is conducted on regular basis fro carrying out waste management in correct way so that available resources can be utilised in optimum level to generate maximum results and reduce wastage of certain sources. The new CEO of P&G named Durk Jager adopt the strategy to reduce cost of production by proper management of operational activities which facilitates to render better quality of products to customers at reasonable price.

Stretch goal plan: This can be described as to elaborate plan of action as per number of tasks or activities on particular project so that it will be completed in correct way by fulfilling desired goals or objectives successfully. It is all about to expand specific business plan into more number of events as it will conduct in different period of time for completing required targets in proper manner. The Durk Jager apply the technique of stretch goal plan so that every single procedure can be completed in correct direction and employees will never skip small step which may become large issue for P&G company.

Changes which are estimated by Durk Jager in P&G company after Programme 'Organisation 2005' are given below:

  • The organisation is aligned on common goals with trust as a foundation.
  • A focus on coaching and teaching enables informed risk taking along with team collaboration (Avolio and Yammarino, 2013).
  • Victory is defined as stretch with trust and candor.
  • Leaders take on complex challenges.
  • An organisation driven by stretch , innovation and speed toward breakthrough goals.

The Durk Jager indicate employees to use IT tools for conducting their tasks or processes and he utilise power point presentations to provide any information or teaching about essential aspect to staff members. Similarly, many of effective strategies are implemented in P&G to innovate products and improve corporate structure. But results of these efforts are not much beneficial because they several problems are faced by company. According to views of analysts, they observe that Jager's plan is more aggressive and raise certain HR issues. Employees are not happy with Jager's confrontational style and they do not like changes in organizational structure or culture that impacts on their performance which negatively effects the profitability of P&G.

Leadership and organisational change

The leadership and organisational change refers to process in which manager or leaders use more accurate leadership theory or style for dealing with several changes that are faced by company (Oreg and Berson, 2011). It is necessary to make an effective as well as efficient plan of cation to reduce certain threats or introducing modifications and grab new opportunities at correct time to boost up productivity as well. There are various kinds of strategies or policies that are helpful to deal with change of trends and demands of people which facilitate to apply several required modification to follow present fashion and sustain strong position in market properly.

Various kinds of leadership theories have their own criteria of working and beneficial in differentiated situation. It is mandatory to first analyse conditions and then use m ore suitable  model to gain better profits in P&G. There are different types of leadership theories which helps to deal with change and some of them are suggested to Lafley are given below:

Trait Theory: This refers to includes several characteristics or traits of an individual that provide support to become effective leader. It is necessary to build several efficient skills such as integrity, empathy, assertiveness, good decision making ability and likeability (Riwo-Abudho, Njanja and Ochieng, 2012). These factors are helpful to boost up effectiveness of leaders in front of their followers so that they will become loyal to superior and fulfil instructions immediately in correct manner along with generating required results. Lafley is required analyse that efficiencies of a leader will motivate sub- ordinates and influence them to follow order of senior properly that helps to superior for completing certain tasks in proper manner for improving productivity of an enterprise.

Behavioural Theories: This type of theory is based on behaviour of leaders according to their mind set up and way of dealing organisational change. It includes several kinds of factors such as autocratic, democratic a and laissez- faire that reflects working style of them. These several elements has an essential capability that are useful in different circumstances to deal with changes properly. The Lafley can utilise any of models that are as follows:

  • Autocratic: This refers to autocratic leaders and they have philosophy of making every small or big decision without consulting with their sub- ordinates. It is mandatory in some of cases when it is not good to share information with employees and make techniques by leaders through their own skills or knowledge properly.
  • Democratic: the term democratic can be explained as to make an appropriate decision for required tasks or activity through conducting meeting and taking suggestions from co- workers to build better plan of action (Peachey, Bruening and Burton, 2011). It will render help to gain desired outcomes and boost up brand image of P&G during changing trends of market. This theory is supportive to Lafley as it facilitates to gain more beneficial alternative choices and make people valuable and loyal for leaders as well as company.
  • Laissez faire: This techniques includes to decide staff members into several teams and allow them to make certain number of decisions by mutual understanding of all members. It work sin a situation when a group is highly capable, motivated and does not need close supervision. The Lafley can utilise this model as it facilitate to improve better coordination as well as cooperation amongst workers that is beneficial for company.

Contingency Theory: This can be described as an effective model that is based on different situation and indicates to make appropriate strategies to deal with issues or problems arises in company (Bryk, 2018). It is mandatory to observe and analyse particular condition of organisation and then implement more suitable policy to deal with raised problem properly. Lafley can utilise this model because it facilitate to put efforts according to different circumstances faced by P&G and applying better techniques will help to tackle with several threats that are arisen suddenly.   

Power and Influence Theory: This can be defined as to use of power of authority in correct manner and influence employees by effective skills of leader. It is also useful to deal with issues that are arisen due to introducing change in company which can be adopt by Lafley. Power of designation may considered as an efficient tool which can used to direct overall efforts of staff members in right direction to achieve goals of an organisation.

Organisational changes can be described as to an appropriate procedure in which several changes into structure, strategies, operational methods, technologies, or organizational culture to affect change within the organization and the effects of these changes on the organization. It is kind of activity which may occurs on regular basis or in different period of time. According to the give case study, Lafley put efforts to rebuilt top management along with boosting up operations and profitability of P&G. Apart from this, he change various other things also like providing certain senior positions and higher roles to women (Riley and Louis, 2013). There are various kinds of techniques that are suggested to Lafley for improving organisational structure or culture for increasing productivity as well. Several strategies that are recommended to Lafley which are as follows:

Areas of organisational change: This is kind of process in which various kinds of department are observe and analysed thoroughly to determine several chances to apply change. Thus, identification of beneficial areas of implementing modifications in which different opportunities can be grabbed properly to gain better outcomes on daily basis along with achieving growth of business. It is suggested to Lafley that firstly, it is required to observed and determine various chances of gaining better profitability rather then making effective strategies on basis of previous results. Past impacts of techniques and present situation of P&G is mandatory to be analysed for applying important changes to attain desired profits.  

 Resistance to change: There are various kinds of factors which are resistant to change such as legal or social issues, government policies, environmental problems, lack of knowledge, low amount of funds or resources and many more (Osmani, 2013). It is important to analyse all these essential factors before implementing modifications into organisation. It is recommended to Lafley, it is necessary to provide proper training to employees for applying change in technology and focus on legal or other relevant rules that may create issue.

Techniques for managing change effectively        

  • It is necessary to understand the current situation of company so that it will help to implementing more accurate theory to get desired results.
  • This is essential top estimate future goals or objectives as per forthcoming condition of an organisation.
  • It involves to apply the required to change in proper manner. 

PART 2

Change management

The change management refers to an appropriate process of effective strategies or policies that are helpful to deal with change. It is important to make an efficient plan of action along with analysing different situations and apply more accurate technique to tackle with several issues which are arisen due to introducing certain modifications in company. There are various kinds of theories of change management that can be utilised by P&G to deal with the same for achieving success and some of them are given below:

Kurt Lewin’s Three Phase Model: This model is basically famous for understanding and deal with with organisational and structural changes properly. It was primarily designed and created by Kurt Lewin in the year around 1950 and still valid in organisation. It includes three phases like unfreeze, change and refreeze which involves different activities to overcome with changes of company. These factors are as follows:

  • Unfreeze: The phase of unfreeze refers to a process of Preparing company for change to fulfil crucial needs of situation. It includes the criteria of utilising current abilities to deal with certain issues created due to introducing changes.
  • Change: In this part, changes in various strategies or techniques are modified as per requirements which facilitates new happenings, developments, and modifications. Thus, all these changes provides help to maintain brand image and profitability of company.
  • Refreeze: This can be explained as procedure in which whole company become stable after adopting certain changes into various departments and this stage is known as refreezing.

McKinsey’s 7-S Model: This model includes various factors which are helpful to deal with change that can be applied by P&G company. This theory was basically developed by consultants working for McKinsey & company in the 1980s. It involve various steps such as strategy, structure, systems, shared values, style, staff and skills 

  • Strategy: It includes to ficus on strategy of planning that can be modified as per requirements which helps to tackle with problems of change. 
  • Structure: This refers to structural changes changes which are mandatory to overcome with negative impacts of several modifications of market trends and client preferences. It is necessary to improve structure to sustain brand image of P&G. 
  • Systems: There are various kinds of systems according to which different activities or procedures are carried out in company. It is necessary to focus on regular processes or tasks that should be modified to complete targets successfully.
  • Shared values: This can be described as main core values  of company which are considered to run whole business in current direction along with attain better outcomes on daily basis.
  • Style: The term style refers to changes and leadership models which are adiopt6de or applied by an organisation to conduct regular procedure properly.
  • Staff: This includes skills or capabilities of staff members on which overall profitability of company based. It indicates to boost up abilities of employees by organising effective training events.
  • Skills: The skills and efficiencies of organisation involving capabilities workers and effectiveness of techniques which are used to allocating resources.

CONCLUSION

The above report had concluded that the leadership and change can be described as a process by which complications arises due to introducing modification can be cope up by taking more appropriate steps. It seems to be necessary to make an accurate strategy in which IT techniques are perform as catalyst to that provide support in coping up with resulting complications in company. Durk Jager should think about to modify traditional philosophy and enable company to innovate fresh goods to launch in market for grabbing more profit share by sustaining strong position in in front of competitive firms and people. It is necessary to make an effective as well as efficient plan of cation to reduce certain threats or introducing modifications and grab new opportunities at correct time to boost up productivity as well. It is mandatory to observe and analyse particular condition of organisation and then implement more suitable policy to deal with raised problem properly.

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