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Running head: DICK SPENCER CASE1Adeniyi Alese50088066Dick Spencer case November 14, 2017Texas A&M University CommerceMGT 585: Management and Organizational BehaviorDr. Stephanie Pane
DICK SPENCER CASE2INTRODUCTIONOrganizational change can lead employees to respond in several different ways because of the ‘reaction process’ they undergo when coming to terms with those changes (Kyle, 1993). Scott and Jaffe (1988) described the process as consisting of four phases, namely: initial denial, resistance, gradual exploration, and eventual commitment. People generally love their comfort zones and will therefore put up resistance when asked or required to do things differently. Resistance can however be defined as a natural and normal response to change because change often involves going from the known to the unknown (Nadler, 1981). Not only do individuals experience change in different ways (Carnall, 1986), they also differ in their ability and willingness to adapt to change (Darling, 1993). There are strong indications that leadership plays a very vital role in innovation management (Nadler and Tushman, 1990; Denti and Hemlin, 2012). Leadership also plays a decisive role in enhancing organizational creativity (Mumford et al., 2002; Amabile et al., 2004), launching and driving innovation projects (Stoker et al., 2001; Bossink, 2007), and implementinginnovation projects and overcoming resistance (Gilley et al., 2008). Somech (2006) concludes that corporate leaders are the key drivers, who either promote or inhibit innovation management in the organization. According to Bel (2010), different leadership styles are likely to have different impacts on employee involvement and commitment, which in turn influence the climatefor innovation management. Deschamps (2005) goes even further, saying that the failure of innovation projects is most likely due to ineffective leadership skills. This topic is important because the failure of many corporate change programs is often directly attributable to employee resistance (Regar et al., 1994).
DICK SPENCER CASE3Mr. Dick Spencer is the subject of this case study. He’s leadership style and its effectiveness in overcoming employees’ resistance to organizational change is examined. Mr Spenser was a plant manager of Modrow Company, a Canadian Branch of the Tri-American Corporation. Tri-American was a major producer of primary aluminum with integrated operations ranging from mining of bauxite through the processing to fabrication of aluminum into variety of products. The company had also made and sold refractories and industrial chemicals. The parent company had wholly owned subsidiaries in five separate United States locations and had foreign affiliates in fifteen different countries. Tri-American employed approximately 22,000 employees in the total organization. The company was governed by a board of directors. The board set general policy, which was then interpreted and applied by the various plant managers. This decentralization in organizational structure increased the freedom and authority of the plant managers, but increases the pressure for profitability. This case study