LEADERSHIP

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CONTENTS
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1. FACTORS INFLUENCING LEADERSHIP

1.1 ETHICS

1.1.1 RESTAURANT BRANDS NEW ZEALAND LIMITED

1.1.2 TWO TYPES OF ETHICS AFFECTING A LEADER

2. SOCIAL RESPONSIBILITY

2.1 APPROACHES TO CSR

2.2 BEST APPROACH FOR SMITH INSURANCE COMPANY

3. STAKEHOLDERS AND STAKEHOLDERS GOALS

4. SOCIETY

5. LEADERSHIP AND MANAGEMENT CHANGE

5.1 TRANSACTIONAL VS TRANSFORMATION LEADERSHIP

6. INCREMENTAL VS RADICAL CHANGE

7. BARRIERS TO CHANGE

7.1 OVERCOMING BARRIERS

8. KOTTERS MODEL FOR CHANGE

8.1 SUMMARY OF THE PROBLEM

8.2 KOTTERS EIGHT STEP MODEL

8.3 APPLICATION IN AUCKLAND WHARFS

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9. CONCLUSION

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10. REFERENCES

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SECTION ONE
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1. FACTORS INFLUENCING LEADERSHIP

There are a lot factors which determine leadership and its direction. The following sections
discuss them in detail.

1.1 ETHICS
At its simplest, ethics is a system of moral principles. They affect how people make decisions
and lead their lives. Ethics is concerned with what is good for individuals and society and is also
described as moral philosophy.
1.1.1 MOLTEN RESTAURANT
The company is a neighborhood eatery consisting of a restaurant, wine bar, courtyard, private
dining room and lounge within a heritage building dating back to the 1850s. They are especially
known for using the modern European bistro as a reference point and basing their menu on
products based on their growers (Molten Restaurant, 2015).
1.1.2 TWO TYPES OF ETHICS INFLUENCING A LEADER
INDIVIDUAL ETHICS: As business operations often happen within a society, most of the time
a leaders activities come under the notice and are evaluated from the ethical point of view. In the
case of the company, the personal code of ethics means the leader interacts with his coworkers
upholding his moral values. For a leader it can be a tough choice (Minnet, 2006). For example
the leader
SOCIETAL ETHICS: Pressure from outside the company especially from the society is always
something a leader has to bear in mind. There must be strong considerations to be given to social
expectations in the areas of community responsibility. As an example, in a company serving fast
foods, something known to be bad for health, the leader will have a tough choice choosing
between the societys ethics and deciding on the food to be served. So serving and delivering
food must be done in this company keeping in mind the general society and the standards that
govern how the members of society influence each others in such issues.

2. SOCIAL RESPONSIBILITY
1.2.1 APPROACH TO CORPORATE SOCIAL RESPONSIBILITY
There are many ways in which leaders respond to social responsibilities. For Smith Insurance
Company, two approaches may affect them: add more examples

a) Obstructionist Approach: this is the approach where the company chooses not to be
socially responsible. It will have a very negative effect on the companys general social
standing in the society as in this case the managers may behave illegally and unethically.
b) Defensive Approach: Another approach that will definitely affect Smith Insurance
Company is to stay within the law but do nothing otherwise to exercise social
responsibility.
1.2.2 BEST APPROACH FOR SMITH INSURANCE COMPANY
Of the four approaches to corporate social responsibility, the best way would be to take the
Proactive Response so that the company is in a better position than its competitors and thereby
enhance their business. This response involves the company actively encouraging and embracing
corporate social responsibility. It does so by going out of its way to learn about the stakeholders
and encourage them to embrace social responsibility. Its main advantage will be to give the
company an image of being socially responsible and uplift its own image in the society. For
example there are many articles that run in national dailies about companies that exercise social
responsibility and are publicized about. Hence like them, the Smith Company would stand to
gain from taking a proactive stance. As an example

3. STAKEHOLDERS AND STAKEHOLDER GOALS

For Air New Zealand, their socially responsible actions may greatly influence three of the
following stakeholders:
a) Passenger: by ensuring fair price and safe product, the company will fulfill its
responsibility towards its passengers. It will prove highly useful as it will get them more
customers in the process while at the same time making them feel satisfied in having it
done in such a way that both the company as well as the customers benefited from it.
b) Local Community: the airline company can help the local community by providing a
livelihood for its members. This will aid the company as it will then have the cooperation
of the whole community thereby ace less disruptions in its functioning. Most of the big
companies face huge resistance from the community members when the members realize
that the company does not practice socially responsible practices. This can be avoided by
Air New Zealand if they help the community. For example
c) Environment: one of the biggest threats to the world today is that of environmental
degradation. The airline company can turn the tides to its favor by switching over to ecofriendly fuels, greener and environmentally activities. It can thereby reduce pollution for
which the airline industry is so infamous. The airlines therefore can have appositive
impact on the earth.

4. SOCIETY
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ASB banks decision to engage in socially responsible activities can help it in many ways, two of
which are:
a) St John Ambulance: For any societys welfare it is crucial to have a health care back up
that will help them in emergencies. Provision of an ambulance to the community
collaborating with St. John is one of the most useful things to do to a community. There is
often a need for immediate medical attention to be provided to a patient and at times there
is not enough time to move the patient to a hospital. In such a case, the banks ambulance
services can be of great aid. Also there may be city outskirts where transportation at night
may be hard. In such a case the provision of a community ambulance can be of huge
help.
b) ASB Stadium: The stadium by the bank offer advantages to the communities that are
innumerous. Most importantly, it will help the community gain enjoyment provided by
the facility. It will therefore keep the members of the community fit and maintain their
health. The developmental factors too are equally vital. It is a well-known fact that
building sports stadiums can help a community and its nearby areas to develop thereby
proving beneficial to the society as a whole.

SECTION TWO

5. LEADERSHIP AND CHANGE MANAGEMENT

5.1 TRANSFORMATION LEADERSHIP
Martinez applied the transformational leadership style to the company. It is one where a
transformational leader goes beyond managing day-to-day operations and crafts strategies for
taking his company, department or work team to the next level of performance and success.
Transformational leadership styles focus on team-building, motivation and collaboration with
employees at different levels of an organization to accomplish change for the better.
Transformational leaders set goals and incentives to push their subordinates to higher
performance levels, while providing opportunities for personal and professional growth for each
employee. (Small Business)
The ways in which Martinez applied this style are:
a) By arousing his company staff and motivating them to act beyond the normal framework.
b) His leadership was proactive and formed new expectations within the company itself.

c) He relied on his capacity to inspire and provide consideration, stimulation and influence
to the employees.
d) He motivated the employees by setting learning opportunities and stimulating employees
to solve problems.
e) He also possessed a clear vision for the company which he was able to bring to life.
f) He was further able to motivate the company workers to look beyond their own self
interest and work towards the vision.
I agree with Martinez style of leadership as it has really helped the company come out
through some really tough times. The four influences I choose to lead Sears change are:
a) Intellectual Stimulation: By rocking the boat and asking questions, the status quo is
constantly challenged. It fosters an environment where it's safe to have conversations, be
creative and voice ideas, a place where all team members feel valued. They challenge
cultural norms and work to inspire passion with their teams and peers. Managers who
have a command-and-control style of leadership can get a lot accomplished as evidenced
by Martinez. It also aims to guide the team, but letting them solve the problem on their
own.
b) Individual Considerations: All the employees are valued and the customers cherished in
the present style. It s highly useful as it boosts the efficiency of the workers as well as
ensures the customers keep returning to the company.
c) Inspirational Motivation: It was about the direction of the goals. He was clear on where
he wanted to go and led by example. He was able to it by infusing enthusiasm and
passion into the goals he set for the company.
d) Idealized Influence: The major characteristics of transformational leadership include
engendering trust, admiration, loyalty, and respect amongst followers through application
of charismatic vision and behavior. Martinez strove towards creating such a state of
idealized influence by:

articulating a vision and explaining how to attain the vision in an appealing manner
leading by example
acting confidently and optimistically
sharing risks with followers
emphasizing values and reinforcing them by symbolic actions
displaying a high level of ethical and moral conduct

(CIO, 2013)

6. INCREMENTAL VS RADICAL CHANGE

6.1 RADICAL APPROACH BY PORTS OF AUCKLAND
The radical change approach is one where the fast paced demands of the world also mean that
actions need to be taken faster which is the main success of the approach. In the case of the
Auckland ports, the advantages of the method include:
a) It believes in innovation so whatever change is brought would totally change the
conditions of the ports. These changes would have been very visible.
b) The next advantage of the method is that it is very quick. The very word radical means
that. The changes would be very instantaneous and the immediate consequence will be a
deep sense of satisfaction over the change.
On the contrary, there are disadvantages too.
a) The risk element involved in the changes is very high. It is a big gamble and if it does not
pay off, it may mean the closure of the company which is why most of the people dont
go for radical changes to the organizations. In this case it would mean leaving a lot of
people unemployed.
b) The changes would have been inflexible meaning once they are brought about nothing
else could be done to alter it. The rigidity can definitely be a problem if the change later
turns out to be a bad one.
6.2 INCREMENTAL CHANGE APPROACH
It is very clear from the article that the ports of Auckland have taken an incremental approach
towards the employment practice as is obvious from the speed of its implementation.
Incremental change is a step-by-step approach to re-designing an organization. Each small
increment that is changed produces changes in other parts of the organization. By changing
specific processes or details in portions, the entire organization changes over time. The process is
one which is very slow and develops over a period of time. It also tends to be more inclusive.
In the given situation, the two advantages are as follows:
a) It has a reduced risk as it is less ambitious in its scope and offers much less potential to
the ports of Auckland. Therefore the management is more comfortable and more often
than not, sometimes even the management is not aware of the changes coming about.
b) Apart from using fewer resources, incremental innovations consist of smaller endeavors,
making them easier to manage than their larger counterparts. The management looks
forward to continuous changes that are constant yet slow.
The disadvantages include:
a) There is a steady slowness in reaching the goals and thereby has resulted in workers who
are not happy and therefore are striking.
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b) As the change is non-dramatic and still within the comfort zone of the management, there
are not much improvements that can be seen on the outside.

7. BARRIERS TO CHANGE
The resistance to change could be broadly divided into two general reasons and changespecific reasons. Under the general reasons, there are mainly four categories. The first one is
inertia. It means or the tendency of people to become comfortable with the status quo (Reference
for Business, 2015). Once the employees become used to a certain way of work, they find it very
difficult to change. The next one is lack of tact or poor timing. Sometimes it is not what a leader
does, but it is how s/he does it that creates resistance to change. Undue resistance can occur
because changes are introduced in an insensitive manner or at an awkward time. For any
significant organizational change effort to be effective, organizational leadership must prepare a
comprehensive change strategy to address these barriers. Another reason is surprise or the fear of
the unknown. The less the organization knows about the change and its impact on them, the more
fearful they become. Leading change also requires not springing surprises on the organization!
The organization needs to be prepared for the change. In the absence of continuing two-way
communication with leadership, grapevine rumors fill the void and sabotage the change effort.
The final reason for resistance is peer pressure. Whether we are introverted or extroverted, we
are still social creatures. Organizational stakeholders will resist change to protect the interests of
a group. This could be employees resisting change to protect their co-workers. Managers will
resist change to protect their work group. (Management is a story, 2015).
Turning to change-specific reasons for resistance, the main reason is self interest, that is, people
resist change if they feel that the change will make them lose something they value most.
Misunderstanding is another one. It happens when even after explanations given by the
management does not make the workers understand it. Turning to the last cause, different
assessments means the differences in the interpretation of different people about the change. As it
varies, the opinions too are varied according to the benefits they perceive.
OVERCOMING BARRIERS TO CHANGE
The six possible ways to overcome barriers are as follows:
a) Educating and communicating with the workers can often help. Once persuade people
often help out in the successful implementation of change. However it can be a drawback
if the numbers of workers are more and therefore more time is consumed.
b) Participation and Involvement: involving the workers would ensure their participation
and will be useful if they are integrated into the plan. On the other hand, it can take a lot
of time too.
c) Facilitation and Support: when people resist due to adjustment problems, this is an
effective method. No other method works better than this to adjustment problems.
However it can be expensive and still can fail.
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d) Negotiation and Rewards: when a person in a group has considerably to lose and the
group has enough power to resist change, often this works better. Negotiations can be
tough and very expensive.
e) Manipulation: this is very effective when other tactics dont work or are very expensive.
It can be a quick and an inexpensive solution. It can lead to future problems if people
start feeling manipulated.
f) Explicit and Implicit Coercion: when change needs to be done with speed, this is used. It
can overcome almost any kind of resistance. It can be risky if people become angry at the
initiators.

8. KOTTERS MODEL OF CHANGE

8.1 SUMMARY OF THE PROBLEM
At the heart of the issue is that of the employees stating that they have been overlooked in many
processes by the management. They feel detached from the systems of change and therefore
along with not cooperating with the management, they have also threatened to go for a long
strike.

8.2 KOTTERS EIGHT STEP MODEL

Kotters model is one of the models that the company could have used when introducing and
implementing change in the company. It comprehends eight steps that should be implemented
each one step by step without skipping any of them in terms to execute the change successfully
(Kotter, 1995). Basically Kotter (1995) says that if a company fails to follow the next steps, the
change efforts will also fail. The steps are:
1. Create a sense of urgency: The need of change must be understood in order to make people
follow the initiative of change. Kotter (1995) recommends that the CEO of the company is the
key for doing that. The CEO should have encouraged people to be ready for new changes. The
new changes in One GmbH were implemented not only because it was acquired by Orange but
also in order to cope with the external environment since the profits in the company were
decreasing in the previous years and their new strategy was to gain a competitive advantage in
the market.
2. Form a powerful guiding coalition: It is about making a change management team with
trustable and credible people inside the company. It does not have to be all managers however it
is important that these people have a strong expertise and leadership and they are already into
going through the change.

3. Create a vision: In order to give a clear image of the expected future of the company, a vision
should be generated by the change management. This vision should be easy to understand, it
should be defined and very clear.
4. Communicate the vision: The change management team has to make sure to communicate the
vision to the staff and ensure this vision is well understood. The communication activities should
be done several times. Until employees understand the vision and the necessity for change, there
will not be a successful implementation.
5. Empower others to act on the vision: The change management team should give people power,
making people feel involved in the process of change, and let them participate. Any obstruction
to the process of change should be removed in this step as well.
6. Generate short-term wins: In order to keep people motivated towards the change, seeing small
victories can help to make people recognize the importance of the change. It is important for
managers to recognize that in this step it is not only about proposing short-term wins, it is more
about achieving them so employees can see the benefits of the change.
7. Consolidate gains and continue producing more change: Achieving short term is an essential
step; however change managers have to prioritize the real vision that the change plan is going to
achieve. The success in this step comes from using those short term victories in order to get
credibility about the importance of the main change.
8. Institutionalize the new approaches: Making sure that the new culture gained through the
change process persists. If the organizational culture continues acting with the old habits and old
behavior, the change management will probably fail.

8.3 APPLICATION IN AUCKLAND WHARFS

1. There needs to be developed a sense of urgency among the workers and the management about
the problem. There needs to be a change bought about in the wharves as the workers are unhappy
with it.
2. The next step should to allow for cooperation to emerge between both the sides. The change
should not be only at the top management level oriented. It should also involve the workers in
the lower rungs too.
3. There is also a need to develop a vision for the company, something that is agreed upon by
both the groups and focus on working on strategies to make them work. The workers should feel
encouraged by the changes rather than threatened by them.
4. The vision should be communicated to all and everyone should feel a part of it. The vision
should also involve the workers and emphasis should be placed on the honesty followed by the
management at all times.
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5. Barriers to change must be overcome along with eliminating everything that is a hindrance to
change. The workers should be empowered at all times and this empowerment and the
involvement of the people will speed up the change.
6. Short term wins should be celebrated and everyone should feel a part of the win. It will lead to
stronger sense of confidence and hence the inspiration will be stronger for people to go for the
long term goals.
7. The wins should be consolidated and aimed at encouraging people to create more changes at
the Wharfs. The change management team should strengthen the achievements of people to
make them more engaged in the plan.
8. The final step should be making sure these approaches remain there and the new work culture
is consolidated. The change should be intensified and the change should be made institutional
and thereby it should be sustained over a long period.

9 CONCLUSION
Leading any organization takes skills. It is these management techniques that help companies to
sail through tough times. Leadership and management must go hand in hand. They are not the
same thing. But they are necessarily linked, and complementary. Any effort to separate the two is
likely to cause more problems than it solves. Still, much ink has been spent delineating the
differences. The managers job is to plan, organize and coordinate. The leaders job is to inspire
and motivate.

10 REFERENCES
1. CIO. (2013, June 19). Retrieved March 29, 2015, from CIO:
http://www.cio.com/article/2384791/careers-staffing/how-to-apply-transformationalleadership-at-your-company.html
2. Harvard. (2015). Retrieved March 30, 2015, from https://hbr.org/1969/01/how-to-dealwith-resistance-to-change
3. Minnet, D. (2006). Retrieved March 27, 2015, from
http://195.130.87.21:8080/dspace/bitstream/123456789/691/1/Ethical%20Decision
%20Making%20as%20an%20Indicator%20of%20Leadership%20Styles.pdf
4. Molten Restaurant. (2015). Retrieved April 8, 2015, from Molten Restaurant:
http://molten.co.nz/molten-restaurant/

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5. Small Business. (n.d.). Retrieved March 27, 2015, from Demand Media Websit:
http://smallbusiness.chron.com/transformational-leadership-vs-transactional-leadershipdefinition-13834.html
6. TIPQC. (n.d.). Retrieved March 30, 2015, from https://tipqc.org/qi/jit/leadersguide/kotters-eight-step-change-model/

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