Change management: the role of Leaders (a comparative study of selected public and private sector led organizations:

Abstract

The rate at which change occurs in the Nigerian environment can be likened to the violent swings of a pendulum. The pendulum swings constantly. Change itself is consistently constant in the Nigerian environment. This is the kind of environment organizations exist in Nigeria. Change is an alteration that shows a modification between two instances - what was and what is. Change is the difference between two instances. Changes occur as a result of stimulants in the environment. These stimulants are known as internal and external forces. Internal forces are those elements within the organization that stimulate change. Internal forces are made up of the Board of Directors; Employees of the organizations. These individuals by their actions and reactions are able to stimulate change in the organizations. This study identifies the internal forces that stimulate change in both the public and private sector organizations. The external forces are outside the organization but within the organizations environment. These external forces consist of the following: devaluation of the currency; Competitors; stakeholders; customers; interest rates; fuel scarcity; security threats; tariffs; governmental policies among others. This study has also identified forces external to the organization that stimulates change. The internal and external forces, which are stimulants of change causes change in the organization. The environment, organizations find themselves in makes the management of change a pre-requisite for the survival of the organization. The importance of change management cannot be overemphasized as the stimulants of change affect organization simultaneously. For instance in between the year 2001 and 2002 Nigeria recorded an increase in fuel price three times, from N11 to N22 to N26. Of course this also had a multiplier effect on the cost of transportation; cost of production etc. As leaders are managing the change that just occurred another change occurs with a greater import and implication than the latter. As a result of the volatility of the environments, organizations have to respond appropriately to the dynamism of its environment. The organization responds to change through the leader. The leader, who is visional); determines the strategies the organization should pursue in order to adjust to the internal and external forces that stimulate change. This study intends to focus on the "Management of Change: The Role of Leaders". To know if the leader's type of organization — public or private sector determines the effectiveness of the leader in the management of change. For the purpose of this study, structured questionnaires were administered on leaders in both the private and public sector led organizations. Also, in-depth interviews was conducted on the respondents at the end of this study the following were the results. • Various forces- internal and external that stimulate change in the organization were identified • The study also identified that the various stimulants of change differ per type of organization (public or private). This is particularly of great importance, as the leaders awareness of stimulants peculiar to their organization will aid the decision-making process. • Leaders ability to determine the appropriate way to manage change is dependent on the type of organization public or private sector. • Of note is the fact that spontaneity in decision-making process is encumbered in the public sector oriented organization. This is because leaders in public sector led organization are not the owners of the organization. The Federal Government of Nigeria is the owner. Leaders in such organization are answerable to the government. To this extent leaders in public sector organizations are careful about the decisions they make. In being overly cautious about their job, the public sector leaders might not make the appropriate decision necessary to effectively manage change. • Leaders in private sector oriented organization might be able to manage change effectively, because of their ability to make decisions spontaneously without any form of restrictions, this is however not exactly true of organizations like the Ist Bank Pk where branch manager may be h... d put to taking decision not specifically defined in the policy Matrix of the organization.