Leadership + Economics of Regulation + Ethics and Organizational Essay

Leadership + Economics of Regulation + Ethics and Organizational Structure - Essay Example a. Employees typically resist a change that they believe will take away something of value. A proposed change in technology, job design or structure may lead to a real or perceived loss of pay, power, prestige or company benefits. (Daft 381-383) The fear of personal loss felt by employees is perhaps the greatest obstacle to organizational change and since larger organizations have a greater number of employees who feel endangered the resistance to change is far greater than the one usually experienced in smaller organizations. b. Lack of trust and understanding also has a magnified impact in larger organizations. Employees very often do not understand the intended reason behind a change and very often mistrust the intentions behind it (Daft 381-383). Having a greater number of people in this case magnifies the air of mistrust and creates further roadblocks to change. c. The uncertainty that every change brings with itself also plays a major role in the resistance to change displayed by employees of a large organization. For employees change means uncertainty and that bring out in them a fear of the unknown. Employees worry about whether they will be able to meet the demands of a new technology or a new procedure (Daft 381-383). The greater the number of uncertain employees, the greater will be the resistance to change. Leadership plays a very important role in the design and the regular updating of an organization’s organizational architecture. It is the leadership style of the leader that determines the organizational logic and the whole purpose of an organizational structure update is to ensure that the organizational chart of the organization accurate reflects how the stake holders in the organization actually work together. So if the leadership style of the leader is autocratic the organizational architecture should reflect it and if the leadership style of the leader is democratic then the organizational architecture should reflect it as