The impact of corporatisation and national competition policy: An exploratory study of organisational change and leadership style

Abstract

Purpose

This study seeks to survey managers of an Australian government‐owned enterprise undergoing organisational change as a result of public sector reform, specifically, National Competition Policy and Corporatisation. The purpose of the study is to examine the extent/type of organisational change and leadership style adopted to implement this change.

Design/methodology/approach

To understand the effect of reforms, the researcher explored the extent of change and leadership style through the use of an intra‐organisational survey in a government‐owned Electricity Supply Corporation in Queensland, Australia. The instrument also included qualitative components to enable the researcher to qualify the statistical results.

Findings

Within the public sector, there is an uneasy tension between the need for a revolution of outdated bureaucracies in order to enhance flexibility and innovation, on the one hand, and the desire to maintain the standards and procedures that are necessary for quality civic service for a broad range of stakeholders, on the other. The results of this study indicate that there was significant organisational change and, according to responses, a change of leadership style indicative of this dilemma.

Research limitations/implications

The implications suggest the consideration of embedded factors while determining the processes and directions of change. Furthermore, it is necessary to choose a leadership style that is indicative of the type of change to be implemented. Additionally, greater participation by organisational members can increase the success of organisational change. The limitations of the study include the measurement of organisational change and leadership style. This instrument was originally used in structured interviews; however, measures were taken to validate the instrument in its altered setting. Further, the study is confined to a single electricity organisation. Fertile fields for future research projects could include a larger quantitative study conducted with multiple states or nation‐wide electricity distribution companies.

Originality/value

The study provides empirical evidence of the extent of change as a result of public sector reform. In doing so the study utilises organisational change and leadership style models within a public sector environment.

Citation

James, W. (2005), "The impact of corporatisation and national competition policy: An exploratory study of organisational change and leadership style", Leadership & Organization Development Journal, Vol. 26 No. 4, pp. 289-309. https://doi.org/10.1108/01437730510600661