Leadership & ManagementLeadership & Management

Reading for Lesson 8:Reading for Lesson 8:

Change and DevelopmentChange and Development

Lesson 8Lesson 8Reading ObjectivesReading Objectives

1. 1. The student will comprehend the concept of The student will comprehend the concept of organizational change and explain the forces for organizational change and explain the forces for change.change.

2.   The student will comprehend the sequence of four 2.   The student will comprehend the sequence of four change activities that must be performed in order for change activities that must be performed in order for change to be successful.change to be successful.

3.   The student will comprehend techniques managers can 3.   The student will comprehend techniques managers can use to facilitate the initiation of change in organizations use to facilitate the initiation of change in organizations including idea champions and new-venture teams. including idea champions and new-venture teams. 

Lesson 8Lesson 8Reading ObjectivesReading Objectives

4. 4. The student will comprehend sources of resistance to The student will comprehend sources of resistance to change.change.

5. The student will comprehend force field analysis and 5. The student will comprehend force field analysis and other implementation tactics that can be used to other implementation tactics that can be used to overcome resistance to change.overcome resistance to change.

6.   The student will comprehend the differences between 6.   The student will comprehend the differences between transactional, charismatic, and transformational transactional, charismatic, and transformational leaders.leaders.

7.   The student will comprehend which leadership style is 7.   The student will comprehend which leadership style is best suited to lead organizational changebest suited to lead organizational change. .

  

Lesson 8Lesson 8Discussion ObjectivesDiscussion Objectives

1. The student will comprehend techniques 1. The student will comprehend techniques managers can use to facilitate the initiation of managers can use to facilitate the initiation of change in organizations including idea change in organizations including idea champions and new-venture teams.champions and new-venture teams.

2. 2. The student will comprehend sources of The student will comprehend sources of resistance to change.resistance to change.

3.3.    The student will comprehend which leadership The student will comprehend which leadership style is best suited to lead organizational style is best suited to lead organizational change.change.

Concept of Organizational ChangeConcept of Organizational Change

Defined as adoption of a new idea or Defined as adoption of a new idea or behavior by an organization.behavior by an organization.

Organizations need to continuously adapt Organizations need to continuously adapt to new situations if they are to survive and to new situations if they are to survive and prosperprosper By observing external trends, patterns and By observing external trends, patterns and

needs, managers use planned changed to needs, managers use planned changed to help organization adapt to external problems help organization adapt to external problems and opportunities.and opportunities.

Forces for ChangeForces for Change

Forces may exist in the external Forces may exist in the external environment or within the organization.environment or within the organization.

Environmental forces include:Environmental forces include: CustomersCustomers CompetitorsCompetitors TechnologyTechnology EconomicEconomic International arena International arena

Forces for ChangeForces for Change

Internal forces for change arise from Internal forces for change arise from internal activities and decisions by:internal activities and decisions by: ManagementManagement EmployeesEmployees Labor unionsLabor unions Production inefficienciesProduction inefficiencies

Change Activities SequenceChange Activities Sequence

Internal and external forces for change Internal and external forces for change existexist

Organization managers monitor these Organization managers monitor these forces and become aware of a need to forces and become aware of a need to changechange

Perceived need triggers initiation of Perceived need triggers initiation of changechange

Change is then implementedChange is then implemented

Initiating ChangeInitiating Change

Develop ideas that solve perceived and Develop ideas that solve perceived and communicated needscommunicated needs

Responses may include:Responses may include: Search for a change to adoptSearch for a change to adopt

• Process of learning about current developments inside or Process of learning about current developments inside or outside the organization to meet perceived need for changeoutside the organization to meet perceived need for change

• Search typically uncovers existing knowledge that can be Search typically uncovers existing knowledge that can be applied or adopted within organizationapplied or adopted within organization

Create a change to adoptCreate a change to adopt

Initiating Change (Cont.)Initiating Change (Cont.)

Creativity is defined as the generation of novel ideas to meet Creativity is defined as the generation of novel ideas to meet perceived problems. perceived problems.

Creative individuals develop ideas that can be adopted by the Creative individuals develop ideas that can be adopted by the organization and are often known for:organization and are often known for:

OriginalityOriginality CuriosityCuriosity Open-mindednessOpen-mindedness Focused approach to problem solvingFocused approach to problem solving PersistencePersistence Relaxed and playful attitudeRelaxed and playful attitude Receptiveness to new ideas.Receptiveness to new ideas.

  

Initiating Change (Cont.)Initiating Change (Cont.)

Creative organizational conditions include:Creative organizational conditions include: Open channels of communicationOpen channels of communication Assignment of non-specialists to problemsAssignment of non-specialists to problems DecentralizationDecentralization Freedom to choose problemsFreedom to choose problems Resources allocated to creative personnel Resources allocated to creative personnel

without immediate payoff.without immediate payoff.

Idea Champions and Idea Champions and New-Venture TeamsNew-Venture Teams

Idea champion. A person who sees the need Idea champion. A person who sees the need for, and champions, productive change within for, and champions, productive change within the organization.the organization. New ideas must be carried forward for acceptance New ideas must be carried forward for acceptance

and implementation.and implementation. Four roles in organizational change:Four roles in organizational change:

InventorInventor ChampionChampion SponsorSponsor CriticCritic

Idea Champions and Idea Champions and New-Venture TeamsNew-Venture Teams

New-Venture Team is a unit separate from the New-Venture Team is a unit separate from the rest of the organization - develops and initiates rest of the organization - develops and initiates innovations.innovations. Team typically small, loosely structured and organic Team typically small, loosely structured and organic Free of organizational rules, procedures and Free of organizational rules, procedures and

bureaucracybureaucracy New-Venture Fund provides resources from New-Venture Fund provides resources from

which individuals and groups draw to develop which individuals and groups draw to develop new ideas, products or businesses.new ideas, products or businesses.

Resistance to ChangeResistance to Change

Employees resist change due to:Employees resist change due to: Self-interest—believe will lose something of valueSelf-interest—believe will lose something of value Lack of understanding and trust—do not understand Lack of understanding and trust—do not understand

intended purpose or distrust managementintended purpose or distrust management Uncertainty—lack information; fear of unknownUncertainty—lack information; fear of unknown Different assessments and goals—employees may Different assessments and goals—employees may

assess proposed change differentlyassess proposed change differently

Strategies for Overcoming Strategies for Overcoming ResistanceResistance

Two approaches:Two approaches: Analysis of resistance through the Force Field Analysis of resistance through the Force Field

techniquetechnique Use of selective implementation tactics to Use of selective implementation tactics to

overcome resistanceovercome resistance

Strategies for Overcoming Strategies for Overcoming Resistance (Cont.)Resistance (Cont.)

Force Field Analysis:Force Field Analysis: Change is a result of competition between Change is a result of competition between

driving and restraining forcesdriving and restraining forces• Some forces drive it while others resistSome forces drive it while others resist

Selectively removing the restraining forces Selectively removing the restraining forces enables driving force to implement the enables driving force to implement the innovationinnovation

Strategies for Overcoming Strategies for Overcoming Resistance (Cont.)Resistance (Cont.)

Implementation tactics:Implementation tactics: Communication and educationCommunication and education

• Used when solid information is needed by those resisting Used when solid information is needed by those resisting change, i.e., new technology or ideachange, i.e., new technology or idea

ParticipationParticipation• Involves potential resisters in designing changeInvolves potential resisters in designing change• Time consuming but pays off in user commitment Time consuming but pays off in user commitment • Helps managers determine potential problems and Helps managers determine potential problems and

differences in perceptions among employees differences in perceptions among employees

Strategies for Overcoming Strategies for Overcoming Resistance (Cont.)Resistance (Cont.)

Implementation tactics:Implementation tactics: NegotiationNegotiation

• Formal bargaining to win acceptance and approval of changeFormal bargaining to win acceptance and approval of change CoercionCoercion

• Formal power is applied to force employees to change. Formal power is applied to force employees to change. Resisters told to accept or lose jobResisters told to accept or lose job

Top management supportTop management support• Visible support symbolizes importance of the changeVisible support symbolizes importance of the change• Without this support change will probably not happen Without this support change will probably not happen

Change – An ApproachChange – An Approach Define the needDefine the need Form a coalition of ManagersForm a coalition of Managers Create the visionCreate the vision Communicate need and vision to subordinatesCommunicate need and vision to subordinates Empower subordinatesEmpower subordinates

- Remove barriers- Remove barriers

- Change systems- Change systems

- Encourage risk-taking- Encourage risk-taking Demonstrate visible evidence of changeDemonstrate visible evidence of change Consolidate improvementsConsolidate improvements Demonstrate relationship btwn new behavior & successDemonstrate relationship btwn new behavior & success

Leadership DifferencesLeadership Differences

Three types of leadership—transactional, Three types of leadership—transactional, charismatic and transformationalcharismatic and transformational

Transactional leaders:Transactional leaders: Clarify the role and task requirements of subordinatesClarify the role and task requirements of subordinates Initiate structureInitiate structure Provide appropriate rewardsProvide appropriate rewards Try to meet the social needs of subordinatesTry to meet the social needs of subordinates

Leadership Differences (Cont.)Leadership Differences (Cont.)

Transactional leaders:Transactional leaders: Excel at management functionsExcel at management functions Are hardworkingAre hardworking Are tolerantAre tolerant Are fair-mindedAre fair-minded Stress plans, schedules and budgetsStress plans, schedules and budgets

Leadership Differences (Cont.)Leadership Differences (Cont.)

Charismatic Leaders:Charismatic Leaders: Inspire/motivate people to do more, despite Inspire/motivate people to do more, despite

obstacles and personal sacrificeobstacles and personal sacrifice State a vision of an imagined future with State a vision of an imagined future with

which employees identifywhich employees identify Shape a corporate value system for which Shape a corporate value system for which

everyone standseveryone stands Trust subordinates and earn their complete Trust subordinates and earn their complete

trust in returntrust in return

Charismatic LeadersCharismatic Leaders

Mother Teresa & Martin Luther KingMother Teresa & Martin Luther King- inspire positive outcomes for entire group- inspire positive outcomes for entire group- use enthusiasm & vision to motivate- use enthusiasm & vision to motivate- group more important than personal need- group more important than personal need

Adolf Hitler & Charles MansonAdolf Hitler & Charles Manson- motivated by self-serving purposes- motivated by self-serving purposes- use fear & intimidation to motivate- use fear & intimidation to motivate- personal need more important than group- personal need more important than group

Leadership DifferencesLeadership Differences

Transformational Leaders:Transformational Leaders: Bring about innovation and create significant change Bring about innovation and create significant change

in followers and organizationin followers and organization Lead changes in the organization's mission, structure, Lead changes in the organization's mission, structure,

and human resource managementand human resource management Focus on intangible qualitiesFocus on intangible qualities

• Vision, shared values, ideas to build relationshipsVision, shared values, ideas to build relationships Provide common ground to enlist followers in Provide common ground to enlist followers in

changes.changes.

Which Leadership Style?Which Leadership Style?

Which suits YOU best?Which suits YOU best? Which is most effective for YOU?Which is most effective for YOU? Which most closely aligns with your strengths?Which most closely aligns with your strengths? Which most closely aligns with your beliefs?Which most closely aligns with your beliefs? Is it situational?Is it situational? Is a combination best?Is a combination best?

Self-AssessmentSelf-Assessment

Realism vs. IdealismRealism vs. Idealism Introvert vs. ExtrovertIntrovert vs. Extrovert Skepticism (has its unique value)Skepticism (has its unique value) Stoicism (Epictetus; VADM James B. Stockdale)Stoicism (Epictetus; VADM James B. Stockdale) MOH: identifying urgent need & taking actionMOH: identifying urgent need & taking action No singular approach is appropriate ALL THE No singular approach is appropriate ALL THE

TIME!!!TIME!!! CombinationCombination is best for most people is best for most people Application is highly situational…Application is highly situational…

Self-Assessment (Cont.)Self-Assessment (Cont.)

What matters to you?What matters to you? What is best for a given situation?What is best for a given situation? Who decides?Who decides?

Once you determine the answers to these foundational questions – Once you determine the answers to these foundational questions – all future can be addressed efficiently and effectively. In effect, the all future can be addressed efficiently and effectively. In effect, the questions have questions have alreadyalready been answered… been answered…

If these questions remain unanswered, you will struggle with the If these questions remain unanswered, you will struggle with the simplest of issues and will not be able to make decisions. You will simplest of issues and will not be able to make decisions. You will remain on the “horns of a dilemma”…remain on the “horns of a dilemma”…

Situational…it depends!Situational…it depends!

However…However…

This is a This is a foundationfoundation We are We are youngyoung…with much to learn…with much to learn This foundation is a This foundation is a living documentliving document that that

will mature with experiencewill mature with experience Your foundation should apply to the Your foundation should apply to the

majoritymajority of situations you will encounter of situations you will encounter but…it depends!but…it depends!

Self-Assessment (Cont.)Self-Assessment (Cont.)

Take the “test” on page 159…Take the “test” on page 159… www.keirsey.comwww.keirsey.com Myers-Briggs Type IndicatorMyers-Briggs Type Indicator Strengths Finder 2.0Strengths Finder 2.0 Strength Development InventoryStrength Development Inventory Counseling and Psychological Services (CAPS)Counseling and Psychological Services (CAPS)

Don’t Worry…Be Happy!Don’t Worry…Be Happy!

Things over which YOU have controlThings over which YOU have control Things over which you DO NOT have controlThings over which you DO NOT have control

Observe, evaluate, assess…anticipate!Observe, evaluate, assess…anticipate! Generate solutions within your sphere of Generate solutions within your sphere of

influence…expand your sphere!influence…expand your sphere! Make adjustments to meet the situation…Make adjustments to meet the situation…

Pick Your Battles!Pick Your Battles!

Be Be veryvery selective selective What is the risk?What is the risk? What are the consequences? To Whom?What are the consequences? To Whom? Is it for the common good?Is it for the common good? Will this truly matter?Will this truly matter? Is it a matter of personal principle?Is it a matter of personal principle? What will you give up?What will you give up?

Questions?Questions?

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