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Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
Chapter 6
Leading Change
Organisational Change
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Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
Introduction
Leadership is a familiar topic, and you may
remember some concepts that you have studiedon previous courses such as ManagingBehaviour at Work
The chapter focuses on a particular application
of. leadership which is the leadership of change. Leaders influence, and exert influence through,
the informal subsystems of organisations.
Inevitably, some material in the chapter re-
iterates some familiar theoretical concepts.
Ask yourself, What are the implications forchange?
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Objectives (1)To:
identify those characteristics whichdistinguish leadership from management;
discuss whether there is one best way of
leading or whether leadership style and
behaviour should vary according to thecircumstances;
explain the possible relationship between
organisational life-cycle theories anddifferent leadership styles and behaviours;
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Objectives (2)To:
assess the compatibility of differentleadership approaches with different typesof change situations;
discuss the issue of resistance to change
in terms of its implications for leading theprocesses of planning and implementingchange.
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Management and Leadership
Inter-personal roles
Figurehead (rep., symbol) Leader (relational, motivator)
Liaison (network-related)
Informational roles
Monitor (scanning)
Disseminator
Spokesperson
Decisional roles
Entrepreneur (innovator)
Disturbance handler (conflict resolution) Resource allocator
Negotiator
LEADING
ADMINISTRATING
FIXING
Source: Mintzberg, H. (1973), The Nature of Managerial Work, Harper & Row.
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Management and Leadership
Can someone be a manager
but not a leader?
Can someone be a leader
but not a manager?
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Management:
takes place within a structuredorganisational setting and withprescribed roles;
is directed towards the attainment ofaims and objectives;
is achieved through the efforts of other
people; and...
uses formal systems and procedures.
Management
Source: Mullins, L.Management and Organisational Behaviour, 5th edn., London, Financial Times, Prentice Hall Publishing.p.166.
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Leadership A leader shapes and shares a vision which
gives pointers and direction to the work of
others. Leadership involves unleashing energy,
freeing, growing, and building.
Leaders influence the direction of a group
through: structuring (framing) the situation.
controlling group behaviour.
personifying the group.
helping the group achieve its goal and potential. Leaders need willing co-operation of the
followers.Source: Coleman, J.C. (1969) quoted in Smith M. (1991) Analysing OrganisationalBehaviour,
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Kotter onManagement, Leadership
Creating
agenda
Planning,
budgeting
Vision &
directionPeople Organising &
staffingAlligning andcommunicating
Execution Monitoring,controlling,rectifying
Motivating &inspiring
Outcomes Delivers onexpectations
Innovation &change oriented
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Approaches to Theorising Leadership
Two main approaches
One best way Contingency
O b i f l d hi (i)
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One best way- traits of leadership (i)
Intelligence *
Having an extrovert personality
Dominance *
Masculinity
Conservatism
(Lord, De Vader & Allier, 1986)
O b t i f l d hi (ii)
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One best way- traits of leadership (ii)
Drive * (achievement, ambition, energy, tenacity,
initiative) Leadership motivation (personalised or
socialised)
Honesty and integrity
Self-confidence * (including emotional stability) Cognitive ability (the ability to marshal and
interpret a wide variety of information)
Knowledge of the business
(Kirkpatrick & Locke, 1991)
O b t t it f l d hi (iii)
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One best way- traits of leadership (iii)
Risk-taking * Assertiveness and decisiveness
Achievement orientation
Motivation Competitiveness
(Dulewicz and Herbert 1996)
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One best way- traits of leadership (iv)
Leadership traits relating in some ways torisk taking include:
ability to cope with change anduncertainty
creative thinking
drawing on intuition, right brain thinking
good use of tacit knowledge
theintuitive-thinkingtype
arts-based thinking imagination
able to handle messes or soft
problems
O b t t it f l d hi ( )
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One best way- traits of leadership (v)
Components of emotional intelligence
self awareness
self-regulation
motivation
empathy
social skills
(Goleman, 1998)
Attributes of hero leaders, change masters
Kaleidoscope thinking Imagination
Foresight
A B d W thi l l d hi
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A Bad Way - unethical leadership
Narcissistic
Controlling Manipulative
Self-promoting
O B t W ? l d b h i
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One Best Way ?- leader behaviour
Wright (1996) found that leader stylesare typically a blend of the following 4components. Is there an optimal mix?
Concern for task (production-centred)
Concern for people (person -centred) Directive leadership (autocratic)
Participative leadership (democratic)
U i i f Mi hi S di
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University of Michigan Studies
This style seemed to work best
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The
ManagerialGrid
9,9 styleis often
best
TeamManagementCountry ClubManagement
OrganisationMan Management
ImpoverishedManagement
Authority-Obedience
O b f i l l d
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One-best-way- transformational leaders
Transformational Leaders Make major changes to
organisational mission
organisational structure
political and cultural systems of theorganisation
(Source: Bass, B.M. (1990) From transactional to transformational leadership: learning the
vision. Organizational Dynamics, Winter, p.22)
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One-best-way-transactional & transformational leaders
Transactional Leader
Management by exception (active)
* Contingent reward* Management by exception (passive)
Laissez-faire
Transformational Leader
Charisma
* Inspiration
* Intellectual stimulation Individualised consideration
(Source: Bass, B.M. (1990) From transactional to transformational leadership: learning the
vision. Organizational Dynamics, Winter, p.22)
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Current stateof expected
subordinateeffort
Heightenedmotivation to attain
designed outcome(extra effort)
Normalexpectedsubordinateperformance
Subordinateperformancebeyond normalexpectations
One best way A third dimension of
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One-best-way - A third dimension ofleadership behaviour
Andrea Jung, CEO of Avon Cosmetics
Contingency theories
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Contingency theories
These take account of the great variety of
situational influences on leader effectiveness
Tannenbaum and Schmidt
Fiedler
Hersey and Blanchard
Path-goal
Quinn
ontingency Theory 1:
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ontingency Theory 1:Tannenbaum and Schmidt
A continuum from boss centred to
subordinate centred
Appropriate position on the continuum
depends on
Forces in the manager Forces in the subordinate
Forces in the situation
Nature of task/problem
Organisational context
Jayne has little room to manoeuvre
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Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
Jayne has little room to manoeuvre
Subordinates
preferences
Task stucture
Context
Jaynespreferences
Directive Participativestyle of style ofleadership leadership
Jaynesroomformanoeuvre
2 Fiedlers contingency theory of leadership
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Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
2. Fiedlers contingency theory of leadership
Leader-
MemberRelationships
Task
structure
Position
power
Leadership
style
1 Good Structured High2 Good Structured Low
3 Good Unstructured High
Task-oriented style
Recommended
4 Good Unstructured Low5 Poor Structured High6 Poor Structured Low
Person-orientedstyleRecommended
7 Poor Unstructured High8 Poor unstructured low
Task-oriented stylerecommended
Fiedler believes leaders must be chosen to fit the situation
Contingency Theory 3: Hersey &
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Contingency Theory 3: Hersey &Blanchards Situational Leadership
Leader: decreasing need for support and supervision
Situational Leadership (cont )
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Situational Leadership (cont.)(Hersey and Blanchard)
Two Orientations task behavior relationship behavior
Four Styles tell sell
participate delegate
Situational Leadership (cont )
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Situational Leadership (cont.)(Hersey and Blanchard)
Two Follower Readiness factors ability (job knowledge, experience, andskills)
willingness (psychological readiness-
confidence, commitment, and motivation) Four Levels of Follower Readiness
unable, unwilling unable, willing able, unwilling able and willing
Situational Leadership (cont )
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Situational Leadership (cont.)
SubordinatesWillingness
Subordinates AbilityLo
Hi
Hi
Effect of (Follower Readiness: Willingness and Ability)
Contingency Theory 4: Path-Goal
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Contingency Theory 4: Path-GoalTheory
Path-Goal: factors between effort & results
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Path-Goal: factors between effort & results
EFFORT PERFORMANCE
skill motivation
Expectationsthat effort will
bring desiredrewards)
locus ofcontrol
jobdesign
goalclarity
timeresources
(tools,materials,informationetc.)
TEAM MEMBER CHARACTERISTICS
NATURE OF TASK AND CONTEXT
Path Goal Leadership Styles
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Path-Goal Leadership Styles
1. Directive
Clarifies job duties, clarifies performance standards,
ensures that procedures are followed Same as task-oriented leadership
2. Supportive
Friendly, approachable, shows concern, respect
Same as people-oriented leadership
3. Participative Consults with employees, solicits suggestions
Related to employee involvement practices
4. Achievement-oriented
Sets challenging goals, high confidence in employees,expects improvement
Applies goal setting, positive self-fulfilling prophecy
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Directive Supportive Participative AchievementEmployeeContingencies
Path-Goal Contingencies (summary)
Skill/Experience low low high high
Locus of Control external external internal internal
Task Structure ambiguous routine non-routine ambiguous
Team Dynamics neg. norms low cohesion pos. norms ?
EnvironmentalContingencies Directive Supportive Participative Achievement
Contingency Theory 5: Quinns
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Contingency Theory 5: Quinn s
Competing Values
The basic idea is that leadership styles should fit
the overall organisational model.
The organisational models are:
The team: flexible but inward looking.
Leader is a supporter, facilitator.
The adhocracy: flexible and outward looking.
Leader is an innovator, broker.
The firm: stable but outward looking.
Leader is task oriented, directive. The hierarchy: stable and inward looking.
Leader is a monitor, co-ordinator.
Leadership in times of change
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Leadership in times of change
Leadership and the organisational life-cycle.(Greiner, 1972; Clarke & Pratt, 1985).
Leadership and the nature of change.(Dunphy & Stace, 1993).
Leadership and resistance to change.(Clarke, 1994).
Analysing and managing resistance to
change. (Strebel, 1996; Beer, Eisenstat &Spector, 1990; Kotter, 1995).
Can one leader take the organisation
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Can one leader take the organisationthrough all its phases?
Styles will likely need to change as theorganisation develops through the variousphases.
Some contingency theorists would say that it istheoretically possible for one leader to take theorganisation through various phases..
Others (e.g. Fiedler) would say it is not possible.
Leadership and the Organisational
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Leadership and the OrganisationalLife Cycle (i) : Greiner, Clarke
.
Evolutionary Phaseof Organisation
Appropriate TopManagement Style
1. Creativity Individualistic,entrepreneurial
2. Direction Directive, strong
3. Delegation Delegation, givesautonomy
4. Coordination Watchdog
5. Elaboration Participative, teamoriented
Leadership and the Organisational
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Leadership and the OrganisationalLife Cycle (ii) : Clarke & Pratt
.Evolutionary Phaseof Organisation Appropriate TopManagement Style1. New business Champion
2. Exploitablemarket
Tank commander
3. Mature Housekeeper
4. Danger ofdecline
Lemon squeezer
Environmental conditions & types of change
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Environmental conditions & types of change
- a recap of Chapter 2
ENVIRONMENTAL FORCES FORCHANGE
TYPES OF CHANGE
Ansoff and
McDonnell (1990)
Strebel
(1996)
Stacey
(1996)
Tushman et al.
(1988)
Dunphy &
Stace (1993)
Grundy
(1993)
Stacey
(1996)
Predictable
Forecastable byextrapolation
Predictable threatsand opportunities
Partially predictableopportunities
Unpredictablesurprises
Weak
Moderate
Strong
Close tocertainty
Close tocertainty
Far fromcertainty
Converging(fine-tuning)
Converging(incremental)
Discontinuousor frame-breaking
Fine-tuning
Incrementaladjustment
Modulartransformation
Corporatetransformation
Smoothincremental
Bumpyincremental
Discontinuous
Closed
Contained
Open-ended
Dunphy & Stace Change Matrix
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Dunphy & Stace Change Matrix
.Type of Change Enacted (followingenvironmental forces for change)
Style ofChange Mgt.
FineTuning
Increm.adjustment
Modulartransform
Corporatetransform
Collaborative
Consultative
Type 1 ParticipativeEvolution
Type 2Charismatic
Transformation
Directive
Coercive
Type 3Forced Evolution
Type 4Dictatorial
Transformation
Forces for and against change
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Forces for and against change
Driving forces for change
external forces (e.g. constraintsfrom suppliers, customer needs)
internal forces (e.g. org growth,office politics, restructuring)
Driving forces against change Individual resistance
organisational resistance
Leading change will inevitably also be
concerned with overcoming resistanceto change
Resistance to Change
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Resistance to ChangeThe most likely response to a change
proposal is a series of outraged
objections, some relevant (for noproposer of change can have thoughtout all the implications), someirrelevant (just waiting for anopportunity to surface and using thisone).
(Pugh, D. (1993) Understanding and
Managing Change, in Mabey C, andMayon-White, B. (eds.) Managing change,second edition, PCP).
Individuals reactions to change
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Individuals reactions to change+ Positives
Enthusiasm
OpportunityChallenge
Excitement
New skills
New knowledge
Reward
Fulfilment
Survival
New start
Creates options
Learning experience
Motivation
- Negatives
Fear
AnxietyShock
Distrust
Anger
Stress
Resentment
Confusion
Uncertainty
Demotivation
Depression
Loss of self-esteem
Loss of identity
- Negatives
Loss of peer group
Letting goSaying goodbye
Distraction
Family disruption
Insomnia
Conflict
Politics
Stubbornness
Critical reactions
Mutiny
Disown/Block
Misunderstanding
Reasons for Adverse Reactions to
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Reasons for Adverse Reactions toChange
Loss of job
Reduction of career prospects Down grading of work Effects in pay Loss of status - empires
Reduction in responsibility or job interest Need to learn new skills New and unknown bosses New and known (!) bosses Break up of established work groups Transfer to new, unknown (known!) locations
or departments
U d l i R Wh
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Underlying Reasons WhyIndividuals Resist Change
Perceived lack ofnew skills,loss of old
Fear ofthe Unknown
Loss of powerbase
Dislike ofuncertaintyambiguity
Loss ofrewards
How People Resist Change
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How People Resist ChangeIndividual responses to threats and
unknown dangers
rigidity
doing more of the same but harder
greater inadequacy
aggression
aggressive rigidity
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Threat toExisting GroupPower Bases
Threat to
ExistingResource
Allocations
StructuralBuilt-inInertia
Cultural,mindsetinertiaEntrenched
interests
Group Norm Inertia
Sources of OrganisationalResistance
Why Organisations Resist Change
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Why Organisations Resist Change
Organisations are coalitions of
interest groups in tension balance (ultra-stability, equilibrium) of
forces hammered out over a period
Change upsets this balance
Lewins
Organisational change occurs when:
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Lewin s
Force-FieldTheory of
Change forces for change strengthen restraining forces lessen, or both processes occur simultaneously
Steps in Force Field Analysis
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p y
1. Define problem (current state) and target situation(target state).
2. List forces working for and against the desiredchanges.
3. Rate the strength of each force.
4. Draw diagram (length of line denotes strength of
the force).5. Indicate how important each force is.
6. How to strengthen each important supportingforce?
7. How to weaken each important resisting force?8. Identify resources needed.
9. Make action plan: timings, milestones,responsibilities.
Assessing resistance to change -
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g gStrebel
Look for closed attitudes.
Look for an entrenched culture. Look for rigid structures and systems.
Look for counterproductive changedynamics.
Assess the overall resistance to change by: examining to what extent the various forces of
resistance are correlated with one another.
describing the resistance threshold in terms ofpower and resources needed to deal with theresistance.
Responding to resistance to change
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p g g
Strebels contrasting change
paths
Beer, Eisenstat and Spectors
six steps to effective change
Kotter & Schlesinger
Possible Change Paths - Strebel
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Possible Change Paths Strebel
.
Resistance
level
Proactive Reactive Rapid
Closed tochange
Radicalleadership
Org re-allignment
Downsizing &restructuring
Can beopened tochange
Top downexperim-entation
Process re-engineering Autonomousrestructuring
Open tochange
Bottom-upexperim-
entation
Goalcascading
Rapidadaptation
Changeforce Weak Moderate Strong
Beer et als six steps to effective change
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p g
Mobilise commitment to change through jointdiagnosis of business problems.
Develop a shared vision of how to organise andmanage for competitiveness.
Foster consensus for the new vision, competenceto enact it, and cohesion to move it along.
Spread revitalisation to all departments withoutpushing it from the top.
Institutionalise revitalisation through formalpolicies, systems and structures.
Monitor and adjust strategies in response toproblems in the process.
Source: Beer, M., Eisenstat, R.A. and Spector, B. (1993) Why change programs dont produce change, IN
Mabey, C. and Mayon-White, B. (eds) Managing Change, London, P.C.P.
Possible ways of dealing with
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y gresistance (Kotter & Schlesinger)
education & communication
participation & involvement
facilitation & support
negotiation & agreement manipulation & co-optation
explicit and implicit coercion
E (Economic) vs O (organisational
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( ) ( gcapability) approaches to change
Economic
Shareholder oriented Money incentives
Layoffs
Downsizing
Restructuring
Organisational Capability
Softer Culture change
Emphasis on individual & organisational learning
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