A senior manager at a company introduced a new performance management system to increase productivity and accountability. While communication and training were strong, some employees resisted the changes. Both positive and negative results occurred, including increased metrics but also unintended consequences like prioritizing targets over quality. The success of the change depended on factors like company culture, leadership style, and employee engagement. Concepts around change management provide insights for planning, implementing, and sustaining organizational changes.

1. Week 3 - Delivery of the final
project
By Gerardo Garcia

2. What Happened?
Background:
A significant organisational change initiative led by a senior manager, Alex, who introduced a new
performance management system across the company.
The system aimed to increase employee productivity, enhance performance metrics, and foster a culture of
accountability. Alex exhibited several notable leadership actions during this transition:
a) Clear Communication: Alex provided transparent and consistent communication regarding the need for
change, its benefits, and the expected impact on employees and the organisation.
b) Empowerment: He delegated responsibilities to middle managers, empowering them to act as change
agents and drive implementation within their respective teams.
c) Training and Support: Alex ensured comprehensive training programs were in place to equip employees
with the necessary skills and knowledge to adapt to the new system effectively.

3. What were the results?
The implementation of the new performance management system yielded a mixed bag of results, positive and
negative possibilities:
Positive:
•Increased Accountability: The system successfully instilled a sense of ownership and accountability among
employees, resulting in improved individual and team performance.
•Enhanced Transparency: Clear performance metrics and feedback mechanisms promoted transparency and
fairness, fostering a positive work environment.
•Alignment with Organizational Goals: The system’s focus on key performance indicators helped align individual
and team objectives with broader organisational goals.
Negative:
•Resistance to Change: Some employees resisted the new system, finding it challenging to adapt to the revised
performance evaluation criteria or fearing potential job insecurity.
•Unintended Consequences: The emphasis on metrics led to unintended consequences, such as employees
prioritising quantitative targets over qualitative aspects, potentially compromising customer satisfaction or
innovation.
•Cultural Shift Challenges: The new system’s implementation unintentionally disrupted the existing organisational

4. Why did this happen?
Several factors contributed to the occurrence of this event:
a) Organisational Culture: The existing culture may have influenced employees' reactions to change and
willingness to embrace the new performance management system.
b) Leadership Style: The effectiveness of Mark's leadership actions was influenced by his leadership style, which
may have varied in terms of adaptability, empathy, and the ability to manage resistance.
c) Employee Engagement: The level of employee engagement and involvement in the change process played a
significant role in the initiative's overall success.

5. What class concepts are relevant to this
situation?
One relevant class concept in this situation is "Change Management." Change management strategies and
frameworks can provide insights into planning, implementing, and sustaining change within an organisation.
Understanding the importance of effectively managing resistance, communication, and employee engagement
allows us to interpret and assess the leadership actions and their impact on the change initiative.
Additionally, the complexities of leadership and its impact on organizational change. By analysing the events,
results, underlying factors, relevant class concepts, and lessons learned, we gain valuable insights into effective
leadership practices. Understanding the dynamics of change, fostering open communication, and engaging
employees are essential for successful leadership in a rapidly evolving business landscape.

6. What did you learn from this?
From this case study, we can extract several broader lessons applicable to other situations or problems:
a) Effective Communication: Clear, transparent, and consistent communication is crucial for managing change
and minimizing resistance. Leaders must ensure that messages are conveyed empathetically and tailored to
the audience.
b) Employee Engagement: Actively involving employees in the change process enhances their commitment and
acceptance of new initiatives. Encouraging participation, soliciting feedback, and addressing concerns are
essential for successful change implementation.
c) Unintended Consequences: Leaders must carefully consider and anticipate unintended consequences of their
actions or initiatives. Monitoring and adjusting strategies as needed can help mitigate any adverse effects.