Organizational changes 4

Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002

Chapter 6

Leading Change

Organisational Change


Introduction

Leadership is a familiar topic, and you may remember some concepts that you have studied on previous courses such as Managing Behaviour 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 for change?’


Objectives (1)To:

identify those characteristics which distinguish leadership from management;

discuss whether there is ‘one best way’ of leading or whether leadership style and behaviour should vary according to the circumstances;

explain the possible relationship between organisational life-cycle theories and different leadership styles and behaviours;


Objectives (2)To:

assess the compatibility of different leadership approaches with different types of change situations;

discuss the issue of resistance to change in terms of its implications for leading the processes of planning and implementing change.


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.


Management and Leadership

Can someone be a manager

but not a leader?

Can someone be a leader

but not a manager?


Management:

– takes place within a structured organisational setting and with prescribed roles;

– is directed towards the attainment of aims 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 Organisational Behaviour,


Kotter on Management, Leadership

Creatingagenda

Planning,budgeting

Vision &direction

People Organising &staffing

Alligning andcommunicating

Execution Monitoring,controlling,rectifying

Motivating &inspiring

Outcomes Delivers onexpectations

Innovation &change oriented


Approaches to Theorising Leadership

Two main approaches

“One best way” Contingency


“One best way” - traits of leadership (i) Intelligence * Having an extrovert personality Dominance * Masculinity Conservatism

(Lord, De Vader & Allier, 1986)


“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)


“One best way” - traits of leadership (iii)

Risk-taking * Assertiveness and decisiveness Achievement orientation Motivation Competitiveness

(Dulewicz and Herbert 1996)


“One best way” - traits of leadership (iv) Leadership traits relating in some ways to

risk taking include: ability to cope with change and

uncertainty creative thinking

– drawing on intuition,» right brain thinking» good use of tacit knowledge» the ‘intuitive-thinking’ type» ‘arts-based thinking’» imagination

– able to handle ‘messes’ or ‘soft problems’


“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 Bad Way - unethical leadership

Narcissistic Controlling Manipulative Self-promoting


“One Best Way” ? - leader behaviour

Wright (1996) found that leader styles are typically a blend of the following 4 components. Is there an optimal mix?

Concern for task (production-centred) Concern for people (person -centred) Directive leadership (autocratic) Participative leadership (democratic)


University of Michigan Studies

This style seemed to work best


The Managerial

Grid

9,9 styleis oftenbest

Team Management

Country Club Management

Organisation Man Management

Impoverished Management

Authority-Obedience


“One-best-way” - transformational leaders

Transformational LeadersMake major changes to

organisational missionorganisational structurepolitical and cultural systems of the

organisation

(Source: Bass, B.M. (1990) From transactional to transformational leadership: learning the vision. Organizational Dynamics, Winter, p.22)


“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)


Current state of expected subordinate effort

Heightened motivation to attain designed outcome (extra effort)

Normal expected subordinate performance

Subordinate performance beyond normal expectations


“One-best-way” - A third dimension of leadership behaviour

Andrea Jung, CEO of Avon Cosmetics


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


Contingency 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

Subordinates’ preferences

Task stucture

Context

Jayne’s preferences

Directive Participativestyle of style ofleadership leadership

Jayne’s room for m

anoeuvre


2. Fiedler’s contingency theory of leadership

Leader-MemberRelationships

Taskstructure

Positionpower

Leadershipstyle

1 Good Structured High2 Good Structured Low3 Good Unstructured High

Task-oriented styleRecommended

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 & Blanchard’s Situational Leadership

Follower r

eadiness: abilit

y and willi

ngness

Follower r

eadiness: abilit

y and willi

ngness

Leader: decreasing need for support and supervisionLeader: decreasing need for support and supervision


Situational Leadership (cont.)(Hersey and Blanchard)

Two Orientations– task behavior– relationship behavior

Four Styles– tell– sell– participate– delegate


Situational Leadership (cont.)(Hersey and Blanchard)

Two Follower Readiness factors– ability (job knowledge, experience, and skills)– willingness (psychological readiness- confidence, commitment, and motivation)

Four Levels of Follower Readiness– unable, unwilling– unable, willing– able, unwilling– able and willing


Situational Leadership (cont.)

Subordinates’Willingness

Subordinates’ Ability

Lo

Hi

Hi

Effect of (Follower Readiness: Willingness and Ability)


Contingency Theory 4: Path-Goal Theory


Path-Goal: factors between effort & resultsPath-Goal: factors between effort & results

EFFORT PERFORMANCE

skill motivation

Expectations that effort will bring desired rewards)

locus of control

job design

goal clarity

timeresources

(tools, materials, information etc.)

TEAM MEMBER CHARACTERISTICS

NATURE OF TASK AND CONTEXT


Path-Goal Leadership Styles1. 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


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: 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 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 through all its phases?

Styles will likely need to change as the organisation develops through the various phases.

Some contingency theorists would say that it is theoretically possible for one leader to take the organisation through various phases..

Others (e.g. Fiedler) would say it is not possible.


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 OrganisationalLife Cycle (ii) : Clarke & Pratt

.Evolutionary Phaseof Organisation

Appropriate TopManagement Style

1. New business Champion

2. Exploitablemarket

Tank commander

3. Mature Housekeeper

4. Danger ofdecline

Lemon squeezer


Environmental conditions & types of change

- a recap of Chapter 2

ENVIRONMENTAL FORCES FORCHANGE

TYPES OF CHANGE

Ansoff andMcDonnell (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.

Type of Change Enacted (followingenvironmental forces for change)

Style ofChange Mgt.

FineTuning

Increm.adjustment

Modulartransform

Corporatetransform

Collaborative

Consultative

Type 1 ParticipativeEvolution

Type 2CharismaticTransformation

Directive

Coercive

Type 3Forced Evolution

Type 4DictatorialTransformation


Forces for and against change

Driving forces for change– external forces (e.g. constraints

from 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 resistance to change


Resistance to Change‘The most likely response to a change

proposal is a series of outraged objections, some relevant (for no proposer of change can have thought out all the implications), some irrelevant (just waiting for an opportunity to surface and using this one).’

(Pugh, D. (1993) Understanding and Managing Change, in Mabey C, and Mayon-White, B. (eds.) Managing change, second edition, PCP).


Individuals’ reactions to change+ Positives

Enthusiasm

Opportunity

Challenge

Excitement

New skills

New knowledge

Reward

Fulfilment

Survival

New start

Creates options

Learning experience

Motivation

- Negatives

Fear

Anxiety

Shock

Distrust

Anger

Stress

Resentment

Confusion

Uncertainty

Demotivation

Depression

Loss of self-esteem

Loss of identity

- Negatives

Loss of peer group

Letting go

Saying goodbye

Distraction

Family disruption

Insomnia

Conflict

Politics

Stubbornness

Critical reactions

Mutiny

Disown/Block

Misunderstanding


Reasons for Adverse Reactions to Change

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


Underlying Reasons Why Underlying Reasons Why Individuals Resist ChangeIndividuals Resist Change

Perceived lack ofnew skills,loss of old

Fear of the Unknown

Loss of powerbase

Dislike ofuncertaintyambiguity

Loss of rewards


How People Resist ChangeIndividual responses to threats and

unknown dangers rigidity doing more of the same but harder greater inadequacy aggression aggressive rigidity


Threat toExisting GroupPower Bases

Threat toExistingResource

Allocations

Structural‘Built-in’Inertia

Cultural,

mindset inertia

Entrenchedinterests

Group Norm Inertia

Sources of Organisational Resistance


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


Lewin’s Force-Field Theory of Change

Organisational change occurs when:• forces for change strengthen• restraining forces lessen, or• both processes occur simultaneously


Steps in Force Field Analysis

1. Define problem (current state) and target situation (target state).

2. List forces working for and against the desired changes.

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 supporting force?

7. How to weaken each important resisting force?

8. Identify resources needed.

9. Make action plan: timings, milestones, responsibilities.


Assessing resistance to change - Strebel

Look for closed attitudes. Look for an entrenched culture. Look for rigid structures and systems. Look for counterproductive change

dynamics. 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 of power and resources needed to deal with the resistance.


Responding to resistance to change

Strebel’s contrasting change paths

Beer, Eisenstat and Spector’s six steps to effective change

Kotter & Schlesinger


Possible Change Paths - Strebel

.

Resistancelevel

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 al’s six steps to effective change

Mobilise commitment to change through joint diagnosis of business problems.

Develop a shared vision of how to organise and manage for competitiveness.

Foster consensus for the new vision, competence to enact it, and cohesion to move it along.

Spread revitalisation to all departments without pushing it from the top.

Institutionalise revitalisation through formal policies, systems and structures.

Monitor and adjust strategies in response to problems in the process.

Source: Beer, M., Eisenstat, R.A. and Spector, B. (1993) Why change programs don’t produce change, IN Mabey, C. and Mayon-White, B. (eds) Managing Change, London, P.C.P.


Possible ways of dealing with resistance (Kotter & Schlesinger)

education & communication participation & involvement facilitation & support negotiation & agreement manipulation & co-optation explicit and implicit coercion


E (Economic) vs O (organisational capability) approaches to change

Economic Shareholder oriented Money incentives Layoffs Downsizing Restructuring

Organisational Capability Softer Culture change Emphasis on individual & organisational learning

Education

Organizational changes 4