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Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Chapter 6

Leading Change

Organisational Change


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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?


7/58Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

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.



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,



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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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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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



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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



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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

andrea jung ceo avon

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