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Essay: Knowledge and understanding are the key factors affecting leading and managing people

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  • Subject area(s): Management essays
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  • Knowledge and understanding are the key factors affecting leading and managing people
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Every successful business creates something of value. Administration is one important factor which any business depending his success on good administration practices. Administration is ongoing social process seeks to invest the manpower and material resources to achieve the objectives with high efficiency. It combination of science and art, it group of principles and rules recognized scientifically at same time it depends on creative abilities, innovative skills and talent resume.

Islamic civilization uniqueness in existence of advance administration management which included most functions of administrative. Concept of administrative management and leading its taking shape since first step of Islam, and thought based on the text of Quran and Sunna directive concern of humanitarian values which still contemporary thought, looking and studying its rules by scientists around the world. There is a strong relationship between administration and Islamic law. It has indicated in many Quran text and prophetic novel.
In nineteenth century after industrial revolution growth the emergence in importance of business administration which led amplify of individual investment size and small companies to double the capital which needed to finance them. A large institution has applied the concept of business administration regulations established to format and design work in chambers.

This report focuses on business management which is third function of administration. The basic objective of this report to demonstrate knowledge and understanding the key factors affecting leading and managing people. It introduces a philosophy of leading and managing concept by managing organizational change as an important factor. Managing organizational change chosen as discussion topic.
The report explains the relationship between chosen topic and organization success. Managing and leading are two words frequently used when speaking about organization, culture and effectiveness. Is an important skill in today’s business world, without strong leadership and management skills many good businesses be unsuccessful.

2.Leading and Managing People

Leadership and management are two diverse but balancing systems of action. Both are needed in order to accomplish the organization’s objectives and so cannot have one without the other. It’s difficult to defining management without shifting the nature of definitions and connection of managerial practices with existence of managerial class.

Managing and leading are two words frequently used when speaking about organization, culture and effectiveness. Some people see a leadership as part of management. Leadership is the ability to motivate groups of people towards a common goal. A leader always has their eye on the horizon, whereas a manager watching the bottom line. There are many elements that make a good manager, however one of the critical qualities is leadership. Leadership and management must go hand in hand, but they are not same thing. Leadership and management are complementary but it is important to understand how they differ.

Objectives of managers are focusing on managing staff within an organization effectively to do so by ensuring quality and profitability. Manager is centered on achieving set objectives, the role of leader is to create the system that the manger functions within. Leadership is about vision and innovation, whereas management is about maintenance of excellent standards.

Henri Fayol (1841-1925) was one of the most influential contributors to modern concepts of management” he considers six functions to understand management concept (Forecasting, planning, organizing, commanding, coordinating and controlling). According to Fredmund Malik defines it as “the transformation of resources into utility”. Mary Parker Follett (1868-1933) allegedly defined management as “the art of getting things done through people” she describes management as philosophy. Peter Drucker (1909-2005) saw the basic task of management as twofold: marketing and innovation. Management is an academic discipline, a social science whose objective is to study social organization and organizational leadership. It is administration of an organization where it be a business. It includes activities of setting the strategy of an organization.

Some studies adopted the classification of administration schools such as (1. Traditional school 2. Human relations school, 3. Behavior school) follow these theories to analyses and demonstrate this concept.

Organizational Change

Organizational change is the movement of an organization away from is present state and toward some desired future state to increase its effectiveness (Fullan,2010;Hargreaves,2011;Marzano & Waters,2010).

The increased pace of change that many of us have encountered over the past ten years has been dramatic. During the late 1980s, many of us were grappling with issues that we had never encountered. The accelerated use of leverages as means of increasing shareholder wealth left the balance sheet of some of America’s finest organizations in disarray. Many of largest customers, that for years represented minimal risk and required a minimum amount of time to manage, consumed most of our energy. By the end of 1993, many of these organizations had either resolved their financial troubles in bankruptcy court or no longer existed.

Organization need to settle down external environment and professional live to return a normal pace, many organizations initiated efforts to improve operating efficiency to become more competitive in the world marketplace. Inside forces include strategic and human resource change which drive organizations to adapt and evolve.

Forces of Change:

There are a number of forces both internal and external which affect organizational functioning. Any change of these factors necessitates change in an organization. The more important factors are as follows:

A. External factors:

External environment affects the organizations both directly and indirectly. The organizations do not have control over the variable in such environment. Accordingly, the organization cannot change the environment but must change themselves to align with the environment such as: Technology, Marketing Conditions and Political forces. Organizations is also affected by the world politics. Some of the changes in the world politics which have affected business all over the world are, the reunification of Germany, the break of Soviet Union and Iraq’s invasion of Kuwait. SWOT analysis identifies internal and external forces, strengths, weaknesses, opportunities and threats.

B. Internal factors:

Internal forces are too many and it is very difficult to list them comprehensively.

  • Nature of Workforce: The 1990’s has been described as a decade where organizations will have to learn to manage diversity. The new generation of workers are better educational qualifications, they place great emphasis on human values and question authority of managers. The employee turnover also became very high which put strain on the management. The work force is changing with rapid increase in the percentage of women workers.
  • Change in Managerial Personal: It is another forces which bring change in firm. New managers are replacing old manager. It necessitated because of retirement, promotion and dismissal. Even there is no change in personal but attitudes change as result of organizational change.

Here will come leadership role. Vision and leadership drive successful change. As the change agent first organization must create vision of the future which must be focusing on group energy. The vision should be very clear to employee or team. It should be comprehensive enough to direct attention at how to bridge the gap to the future.

Commitment from senior management at the earliest stages of the change process is required. Managing change effectively requires an understanding of the variables at play and adequate time must be allowed for implementation.

Understanding Organizations, Leadership and Management

To really understand organizational change and begin guiding successful change efforts, the change agent should have at least a broad understanding of the context of the change effort. This includes understanding the basic systems and structures in organizations, Including their typical terms and roles. Change must be realistic, achievable and measurable. For more successful change organization must apply simple principles to achieving goal. These aspects are especially relevant to managing personal change before starting organizational change.
Organizational change is undertaken to improve the performance of the organization or a part of the organization. It refers to any approach to transitioning individuals, teams and organization using this method intended to re direct the use of resources business process budget allocations. Also its operation that significantly reshape a company or organization. Organizational change considers the full organization and what needs to change. It is a tool for change focused solely on the individual. It focuses on how people affected by an organizational transition. It deals with many different disciplines from behavioral and social sciences to information technology and business solutions. Effective managing and leading required to understand the variables which linked to managing organizational change profitability as follows:

1. Motivation

What drive people forward to get behind change. Nudge theory related to behavior perspective. Its help to discover and potentially alter influential factors in peoples thinking which otherwise often remain hidden and unknown. It relative to motivation as internal factor which deeply care about the humanitarian side. This factor takes into account the obdurate feeling of labor. According to Herzbergs theory of motivations there are some factors that result satisfaction and dissatisfaction. Ibraham Maslow define motivation as individual needs. Each of these needs drives emerge to next need. McGregor consider motivation as important task in organization environment.

2.Flexibility and the psychological contract

(Thompson and McHugh 2009- French et al, 2008- Guest 2004- Tylor 2002 – Pollitt 2003 describe and define it as humanity respect. In management and organizational theory many employee attitudes such as trust, faith and commitment and satisfaction depend on a fair. It regards by employees to be right and fair. It intangible ingredients of good organizational performance. To define the psychological contract is how understand and apply it under our relationships principle inside and outside of work

Johari Window its powerful model of mutual understanding and awareness, central to the psychological contract. Also Transactional Analysis theory described specifically nation of contract as fundamental illuminating while applied to workplace it present relationships and societal behavior which reflected relationships between employer and employee in first class. Psychological contract also strongly connected to understanding stress.

3.Team working

The process of working collaboratively with a group of people in order to achieve a goal. Teamwork is often a crucial part of a business as it is often necessary for colleagues to work well together, trying their best in any circumstance. It means that people will try to cooperate using their individual skills and providing constructive feedback, despite any personal conflict between individuals. There are many types of team models extract that the best out of team need intelligence such as: Traditional, Team Spirit, Cutting Edge and Cyber Team model.

4.Ethics and social responsibility

Ethic responsibility includes the behavior of the firm that is expected by society but not codified in law. According to H.R.Bowen, “Social responsibility is to pursue those policies and decisions or to follow those lines of actions which are desirable in terms of its objectives and values of our society”. Social responsibility refers to the obligations and duties of the business towards the society.

5.Organizational and job design

It defines as organization structure determines the organizational behavior and influences the organizational culture and how flexible to change.

6.Managing a diverse workforce

Working with people from very different backgrounds can be stimulating and educational. When you are the manager of a diverse staff, the essential tools are keeping an open mind, being alert to any discomfort among employees and developing sensitivity to cultural variations.

Reasons for change

Globalization and constant innovation of technology result in a constantly evolving business environment. Phenomena such as social media and mobile adaptability have revolutionized business and the effect of this is an ever increasing need for change and therefore change management. The growth in technology also has a secondary effect of increasing the availability and therefore accountability of knowledge. Easily accessible information has resulted in unprecedented scrutiny from stockholders and the media and pressure on management.
Organizations must the learn to become comfortable with change as well. Therefore, the ability to manage and adapt to organizational change is an essential ability required in the workplace today. Major and rapid organizational change is profoundly difficult because the structure, culture and routines of organizations often reflect a persistent and difficult to remove imprint of past periods, which are resistant to radical change even as the current environment of the organization changes rapidly.

Due to the growth of technology, modern organizational change is largely motivated by exterior innovation rather than internal factors. When these developments occur, the organization that adapt quickest create a competitive advantage for themselves while the companies that refuse to change get left behind. This can result in drastic profit and market share losses. It directly affects all departments and employees. The entire company must learn how to handle changes to the organization. The effectiveness of change management can have a strong positive or negative impact on employee morale.

Resistance to Change

In many cases, resistance to change is strongest when leadership fails to engage employees in decision making processes or to communicate the business urgency behind a strategy. Ideally, leaders are able to build a sense of excitement and urgency for change that reduces resistance.

There are six specific way that resistance to change overcome include: education and communication, participation and involvement, facilitation and support, negotiation and agreement, manipulation and co-optation and explicit and implicit coercion (Anderson,2011;Duke,2011;Harvey,2010).

Free open communication with organization members can reduce resistance to change to help them see the need of change and logic behind it. Through face to face discussion and formal presentation increase firm members trust to leaders which provide good relationship between group and leader. Also members who participate in planning and change process are less expected to resist it. The Kubler Ross Grief Model addresses the emotional issues associated with change. He states that the better facilitate change process by prepare and understand employee’s emotions and behaviors. Kubler state four emotional stages through change process:

Stage 1 Denial
Stage 2 Resistance
Stage 3 Exploration
Stage 4 Communication

There are two important objects of management should follow it in organization to reduce resistance as follow:

A. Communication

Organization cannot impose new things on Individual it will be difficulties. Individual need to know what extent change is need they look to leadership to answer. They need to know how their work will change and what expected of them during and after the change process and what success or failure will mean for them. The change affects different levels of the organization. These change efforts must include plans as transformation programs progress they should be defining strategy and setting targets to design and implementation also, they should align the company vision, equipped to company specific mission and motivate to make change happen. Organization must fully communication, participation and involvement are useful process to achieve organization goals.

Successful change programs need to understand and account for culture, behaviors and perceptions at each level of the organization that must be taken. Thorough cultural diagnostics can assess organizational readiness to change, bring major problems to the surface, identify conflicts and define factors that can recognize and influence sources. That will serve essential change elements.
Effectively managing change requires continual reassessment of its impact and the organizations willingness and ability to adopt the next wave of transformation.

B. Training

Organization with strong formal training schemes are more attractive to prospective employees and therefore they can also help to recruit the best talent. Its key of long term benefit program to improve organizational performance. Is important organization give their employees the opportunity to develop new skills, access new resources and experience situations they have not previously come across. Although these initiatives will incur an initial cost, the long term benefits of developing your employees make the investment worthwhile. When determining which of the latest techniques or innovations to adopt there are four major factors to be considered:

  • Levels, goal and strategies.
  • Measurement system.
  • Sequence of steps.
  • Implementation and organizational changes.

Level of Change

Kurt Lewin (1951) developed a concept of force-field theory to understand resistance of change. According to Lewin’s force-field theory of change state three level of change through looking on level of behavior (Individual level change, Group level change and Organizational level change) He states that leaders have important active role in initiating change. He designed three step model which are: Unfreezing, Moving and Refreezing.

Areas of organizational change

Some students of organizational change identify areas of change in order to analyses them. Daniel Wischnevsky and Fariborz Daman issues single out strategy, structure and organizational power. Others add technology or the corporate population. All of this area related to companies often must institute changes in all areas when then attempt to make changes in one. The first area, strategic change can take large scale when company shifts its resources to enter a new line of business or when a company makes productivity improvements in order to reduce costs.

Change is natural of course. Proactive management of change to optimize future adaptability is invariably a more creative way of dealing with the dynamisms of industrial transformation than letting them happen willy-nilly. That process will succeed better with the help of the company’s human resources than without.

No single methodology fits every company, but there is a set of practices, tool and techniques that can be adapted to a variety of situations. There are guiding principles for managing changes in organizations, using this systematic, comprehensive framework, how to manage individual change and how to engage the entire organization in the process.

Managing the change process

The changes involve collaboration between all employees from entry-level to top management. There are many types of organizational changes, the critical aspect is a company’s ability to win the buy in of their organization’s employees on the change. Effectively managing organizational change is a four step process according to John P Kotters:

  • Recognizing the changes in the broader business environment.
  • Developing the necessary adjustments for their company need.
  • Training their employees on the appropriate changes.
  • Winning the support of the employees with the persuasiveness of the appropriate adjustments.

Managing organizational change process should begin with a systematic diagnosis of the current situation in order to determine both the need for change and the capability to change. The objectives, content and process of change should all be specified as part of a change management plan. The process should include creative marketing to enable communication between changing audiences as well as deep social understanding about leadership style and group dynamics. It aligns groups expectations, integrates teams and manages employee training and communication effectiveness need for change in order to design appropriate strategies resolve troubled change projects and avoid change failures.


Management is third function in Administration. Objective of managers and leaders explained in report. Management is transformed into a social process through leadership action. As managing organizational change becomes more necessary in the business cycle of organizations it is beginning to be taught as its own academic disciple at universities. Change must be realistic and measurable. Organization must start managing individual change before start organizational change. It should follow some processes and principles to adopt the changes efficiency. There are many external and internal factors which influence organization functions.

Organizational change occurs when a company makes a transition from its current state to some desired future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to minimize employee resistance and cost to the organization while simultaneously maximizing the effectiveness of the change effort.

Today’s business environment requires companies to undergo changes almost constantly if they are to remain competitive. Change must be continually managed to yield sustained results. Not communicating to employees while implementing change processes is worst mistake. Training help the members to understand the logic behind changes and increase capability to face the challenges.


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