DB FPX 8850 Assessment 2 Management-Driven Change in the U.S Entertainment Finance Industry

Name

Capella university

DB-FPX 8850 Seminar: General Management Literature Review

Prof. Name

Date

Introduction

Many businesses around the world strive to implement changes, but research has shown that over 50% of businesses that initiate change fail to achieve their set goals (Sorrentino, 2016). In business, management is defined as an organization’s managerial ability to set and achieve complex goals, take quick and efficient action when necessary, exceed competition to maintain a competitive advantage, and motivate others to excel in their tasks (Strukan et al., 2017). All other company elements are inert without effective management.

Strong managers may assist a company in maximizing productivity and achieving corporate goals, but ineffective management can harm productivity and jeopardize the company’s health (Strukan et al., 2017). Change is necessary for progress; no company can afford to remain static in the fast-paced business world (Dzwigol, 2016). Unfortunately, many change implementations by leaders fail, and poor management is a core reason (Dzwigol, 2016). Managers guiding change has been a problem in many companies (Blight et al., 2018).

DB FPX 8850 Assessment 2 Management-Driven Change in the U.S Entertainment Finance Industry

Being an effective change manager can be challenging due to the difficulty of directing, mobilizing, comprehending, and facilitating change. Effective management necessitates understanding how to manage consequences, combat resistance during change, and cope with team members’ responses to change. Many companies worldwide that attempt to implement changes in their operations fail. Studies have shown that poor management during the change period is a major contributing factor (Bligh et al., 2018).

Failures in properly guiding change by managers affect and impact many companies, and it is vital to study and evaluate where the problem lies and how to address each issue effectively (Blight et al., 2018). The topic for this project is management in relation to how it affects changes and restructuring in organizations. The topic aligns with my specialization in the entertainment finance industry. Specifically, exploring why management in business is important and how competency in management can affect the dynamics of any organization.

Problem of Practice

The general business problem is poor management, which can lead to the closure of a company (Kilic & Gunsel, 2019). Managers must be effective drivers of change in their businesses and role models for the entire organization (Borgholthaus et al., 2021). Managers must be proactive in supporting change initiatives as they plan and implement improvements. Poor managers can be characterized by their inability to guide their teams, which may be due to an absence of foresight (Macdonald et al., 2018). Bad managers are often defined by factors such as poor communication, bullying behavior, or failure to engage employees properly (Borgholthaus et al., 2021).

The idea that weak management carries negative consequences for people is not novel, and studies on the connection between performance and management have typically focused on the possible negative outcomes of poor management (Macdonald et al., 2018). The primary effect of poor management in any company is bad performance, which usually leads to employee turnover and negatively impacts work culture (Macdonald et al., 2018). However, management is among the few aspects of a corporation that can be actively managed (Macdonald et al., 2018). Successful firms rely on strong corporate management (Nordmo et al., 2019).

DB FPX 8850 Assessment 2 Management-Driven Change in the U.S Entertainment Finance Industry

A workforce with strong, capable management is much more efficient than one that lacks effective leadership (Nordmo et al., 2019). Businesses should avoid poor management because it only takes one bad manager to cause a company to fail (Kilic & Gunsel, 2019). The specific business problem is that without viable strategies, managers in the U.S. finance entertainment industry are unable to effectively lead organizational change, resulting in reduced productivity, revenue loss, and the risk of business closure (Ayoko, 2021). Statistics from several studies and research indicate that more than 40% of failures in organizational change occur due to managers’ inability to properly guide and drive change (Bligh et al., 2018).

One study conducted by the National Association of Small Business Professionals (NASBP) found that 1 in 4 start-ups will fail in their first year, with a 46% failure rate thereafter. Failures are attributed to the inability of management to drive effective change in response to changing market conditions (Kelly, 2013). During the Covid-19 pandemic, many businesses had to adjust their operations, leading to new changes being implemented (Liguori & Pittz, 2020). The problem results in the downfall of businesses, causing some to close.

Many managers desire change, yet few genuinely work hard to bring it to fruition (Liguori & Pittz, 2020). Management and its significance are among the most pressing concerns for businesses and organizations in guiding change. Managers set the direction for their teams, secure commitment to the determined path, and motivate members to achieve the set objectives (Luedi, 2022). Because management plays such a crucial role in the transformation and development of any organization, guiding change necessitates skillful and competent management with the ability to recognize the most needed aspects of a company and address change issues appropriately (Ayoko, 2021).

Gap in Practice

The gap in practice is that many managers are failing to properly guide changes within the entertainment finance industry (Herold & Fedor, 2022). The U.S. finance entertainment industry continues to shift and change due to new trends and disruptions (Hennig-Thurau et al., 2021). The industry is prone to failures during change and restructuring mainly due to incompetent management (Vogel, 2020). Entertainment industries are fast-paced enterprises that necessitate creative funding models and legal competence for proper implementation (Hennig-Thurau et al., 2021). According to statistics, 70% of organizational changes fail to achieve their objectives (Ciulla, 2020). Literature reviews and case studies used for this project show that management with clear vision and innovative approaches is more effective in managing complex change phenomena.

One case study by Abbas and Asghar (2018) found that business leaders often focus on creating and providing resources to ensure successful operations only by considering current and known factors in the business environment. However, to properly prepare for the future, managers must understand the need for change to benefit and develop the organization (Abbas & Asghar, 2018). Successful business changes can also lead to additional innovation (Herold & Fedor, 2022). Innovation is critical for long-term growth, success, and sustainability. Poor management in driving change currently affects many businesses worldwide, leading to poor performance (Ciulla, 2020).

DB FPX 8850 Assessment 2 Management-Driven Change in the U.S Entertainment Finance Industry

The desired state is for businesses to succeed post-change. To ensure this problem is addressed, companies should appoint competent managers with clear visions and skill sets to drive change (Ciulla, 2020). The problem of managers’ inability to drive change usually arises from incompetency, including a lack of vision, skills, and knowledge necessary to drive change (Herold & Fedor, 2022). Managers must understand the business’s direction and drive change accordingly (Ciulla, 2020). Vision generates motivation, enthusiasm, and shared accountability for success (Gandolfi & Stone, 2018). Organizations have recognized the need for unique approaches and breakthroughs within their business models and strategies to thrive in a competitive global market (Ayoko, 2021).

Recent statistics show that corporations from various geographical areas and countries are increasing their investment in innovation (Ayoko, 2021). Businesses that want success in change need innovative managers to turn concepts into reality. Additionally, managers driving change should have the necessary skills for success (Ayoko, 2021). Skills include effective communication, analytical skills, and managerial abilities (Gandolfi & Stone, 2018). Competencies are essential for leaders driving and implementing successful organizational change (Openo, 2016). Thus, the gap lies in the competency of managers.

Literature shows that establishing and organizing change requires strong management abilities (Gandolfi & Stone, 2018). Every change process will encounter resistance; a competent manager will handle this resistance while still implementing successful improvements (Gandolfi & Stone, 2018). Many aspects of management need to be considered during change, making it a complex task (Adserias et al., 2017). By acknowledging all competencies of a manager driving change, companies can achieve their desired goals and compete effectively in the global market (Dumas & Beinecke, 2018).

Purpose of the Project and Project Questions

The purpose of this project is to explore the perspectives of managers in the U.S. entertainment finance industry regarding viable strategies to effectively manage organizational change, increase productivity, and revenue.

PQ: What are the perspectives of managers in the U.S. entertainment finance industry regarding viable strategies to effectively manage organizational change, increase productivity, and increase revenue?

Preliminary Terms and Definitions

Competencies: Competencies are the capacity to integrate or employ a set of linked knowledge and abilities within a specific work situation to accomplish essential tasks effectively (Dirian et al., 2020).

Corporate Goals: Corporate goals are long-term objectives a company aims towards, reflecting the company’s ambitions for the future (Jalagat, 2016).

Guiding Change: Guiding change refers to the responsibility of any leader to ensure modifications within a business are adequately achieved and implemented (Edwards-Groves et al., 2019).

Management Abilities: Management abilities enable any manager to monitor processes, drive initiatives, and direct their team toward achieving objectives (Bennis & Thomas, 2020).

Organizational Change: Organizational change involves steps taken by a company to modify significant aspects of its operations, such as its culture, technology, structures, or internal processes (Kaufman, 2017).

Project Justification

This study aims to investigate why many managers struggle to effectively guide change in the U.S. entertainment finance industry. This research is significant as it addresses the gap in practice regarding poor management in change initiatives and how it affects organizations’ ability to thrive. The findings will offer valuable insights and recommendations for improving management practices and change strategies in the industry, contributing to the body of knowledge and enhancing managerial competencies.

References

Abbas, M., & Asghar, I. (2018). The role of leadership in managing organizational change: Evidence from Pakistan. Journal of Business and Management, 20(6), 23-35.

Adserias, R., Colom, M., & Salanova, M. (2017). The role of managerial competencies in successful change implementation. Journal of Organizational Change Management, 30(3), 437-454.

Ayoko, O. B. (2021). Effective leadership strategies for managing organizational change. Journal of Leadership and Organizational Studies, 28(1), 45-58.

Bennis, W., & Thomas, R. J. (2020). Geeks and Geezers: How Era, Values, and Defining Moments Shape Leaders. Harvard Business Review Press.

Blight, S., Houghton, M., & Rizzo, A. (2018). The impact of managerial change on organizational success. Management Review Quarterly, 68(2), 185-205.

Borgholthaus, T., Bratton, J., & Holland, P. (2021). The role of management in leading organizational change: A review and critique. Journal of Change Management, 21(4), 501-516.

Ciulla, J. B. (2020). Ethics, the Heart of Leadership. Praeger Publishers.

Dirian, A., Kuehn, S., & Gosselin, C. (2020). Competencies and organizational change: A framework for managers. Journal of Organizational Behavior, 41(7), 763-776.

Dumas, J., & Beinecke, R. (2018). Organizational change and managerial competencies: What works and what doesn’t. Journal of Management, 44(4), 567-582.

Dzwigol, H. (2016). Managing change: Theories and practices. Journal of Business Research, 67(7), 1124-1131.

DB FPX 8850 Assessment 2 Management-Driven Change in the U.S Entertainment Finance Industry

Edwards-Groves, C., O’Hara, D., & McDonald, L. (2019). Leading change: The role of management in facilitating transformation. Journal of Organizational Leadership, 8(3), 91-104.

Gandolfi, F., & Stone, S. (2018). The role of managerial competencies in leading organizational change. Leadership & Organization Development Journal, 39(6), 743-758.

Herold, D. M., & Fedor, D. B. (2022). A multi-level framework of managerial competencies for successful organizational change. Academy of Management Perspectives, 36(2), 127-142.

Jalagat, R. (2016). Strategic management and corporate goals: A comprehensive review. International Journal of Business and Management, 11(3), 43-58.

Kaufman, B. E. (2017). Theoretical Perspectives on Work and the Employment Relationship. ILR Press.

Kelly, J. (2013). The impact of poor management on organizational failure. Business Strategy Review, 24(1), 41-47.

Kilic, M., & Gunsel, A. (2019). The effect of management on organizational success: Evidence from SMEs. International Journal of Business Management, 14(2), 78-91.

Liguori, E. W., & Pittz, T. G. (2020). Managing organizational change during the COVID-19 pandemic. Journal of Business Research, 122, 547-555.

Luedi, C. (2022). The significance of management in guiding change: An analytical perspective. Journal of Leadership Studies, 16(1), 25-36.

Macdonald, J. A., Wicker, P. A., & Campbell, M. (2018). Poor management and its effects on business performance: A critical review. Journal of Business Economics, 91(4), 367-379.

Nordmo, I., Christensen, J., & Hald, J. (2019). Management competencies and organizational outcomes: An empirical study. Management Dynamics, 28(2), 152-165.

Openo, J. (2016). Competency development in leadership: A critical review. Leadership & Management Journal, 20(4), 43-59.

Sorrentino, S. (2016). Change management and organizational failure: Understanding the core issues. International Journal of Change Management, 16(3), 203-221.

Strukan, D., Greenberg, K., & Ricard, G. (2017). The role of management in achieving organizational goals: A review. Journal of Strategic Management, 8(2), 87-101.

Vogel, H. (2020). Financial strategies for the entertainment industry: Current challenges and future directions. Entertainment Finance Journal, 12(1), 15-27.