Role of Leadership in Change

Running head: THE ROLE OF LEADERSHIP IN CHANGE

Syed Kashif Ali Organization change and development Institute of Business Management

Author Note Syed Kashif Ali, 11824, Student of MBA, Institute of Business Management, Supervised by Mr. Ali Mujahid. Correspondence concerning this article should be addressed to Syed Kashif Ali, 11824, Student of MBA, Institute of Business Management. Email: std_11824@iobm.edu.pk

Role of Leadership in Change

Abstract Change is one of the vital and prime factors necessary for the existence of the organization. Many agree at the point that effective leadership successfully diminishes employees resistance to change and eradicate the fear of change completely. This literature review examines some approaches to decrease the resistance to change. This paper suggests some of the potential solutions to the problem such as employees involvement in change process, effective delegation, effective communication channels and positive attitude towards the change. These solutions ultimately provide managers with effective remedies to changes in the political, social, economic and technological changes. The study suggests some of the key issues pertaining to the lake of communication and leadership skills which culminates with the drastic impacts on human resource of the company and ultimately upon the operation of whole organization.

Role of Leadership in Change

The role of leadership in change A Review of the literature The role of leadership in change has been discussed by many as basic ingredient in initiation of the transformation of an organization. The transformational leader focuses more on the change aspects leadership. The leader inspires change throughout the organization. They are said to transform their subordinates. A prime example of a transformational leader is Jack Welch. As CEO he transformed General Electric and its employees. This was an effort that began in the early 1980s and continued for almost two decades. (Patricia Buhler, 2001). As the management guru, Gary Hamel puts it, Most companies are built for constant innovation. They know how to get better, but they dont know how to get different. Most of the mergers and acquisitions fail due to lack of the leadership skills of the managers who fail to instigate trust and commitment within their subordinates. Although championing and understanding change is important, organizations are not very good at implementing it. According to Rick Maurer (1996), author of Beyond the Wall of Resistance, only 23 percent of the mergers recoup their costs. According to Kevin Eikenberry (2007) a leader have to understand change on both the individual and organizational level, as it is the amalgamation of parts affecting the whole ultimately.

Role of Leadership in Change

Introduction Managers are people who do things right, while leaders are people who do the correct thing. (Warren Bennis, 1989) Today's business world is vastly competitive. The way to endure is to restructure to the needs of a rapidly changing world. Resistance to adjust is a dead-end street for you and the organization. Customers do not only want exceptional service, they are also demanding more. If you do not deliver it, your competitors will. Organizations are reshaping themselves to change rapidly in order to meet the needs of their customers. The organization's top leaders are aware that they cannot throw money at every problem and that they need highly committed and flexible workers. As a leader, you need to put emphasis on action to make the change as quickly and smoothly as possible. Therefore we can say that resistance is futile. Stages of Change Organizations normally go through four main changes throughout their growth (Klepper, 1997): 1. Formative Period This is when a new organization has just incepted. Although there is a mission and vision statement (the purpose of the organization), there are no prescribed definitions. This is just as well because in general there are a lot of experimentation and innovation taking place. These changes of inspiration and innovation are needed to overcome obstacles and accomplish breakthroughs. 2. Rapid Growth Period Direction and coordination are added to the organization to stabilize growth and start making gains. Change is focused on defining the purpose of the organization and on the middle-of-the-road business.

Role of Leadership in Change

3. Mature Period The strong growth curve levels off to the overall pace of the economy. Changes are required to maintain established markets and assuring that maximum gains are attained. 4. Declining Period For many organizations it means down-sizing and reorganization or possible reengineering of the entire business. To survive, changes include sturdy objectives and considerate implementation. The goal is to get out of the old and enter into something new and unknown. Success in this period means that the four periods start over again it is a sort of recycling. For some organizations the four periods of growth come and go very quickly, for others, it may take up to decades. Failure to follow-through with the required changes in any of the four growth periods means the death of the organization. Some, such as IBM, do it effectively, others, like ATT, do it quite inadequately. Change Acceptance Throughout periods of changes, which is just about all the time for a good organization, leaders require to focus on having their people go from change evaders to change lovers. There are five steps accompanying acceptance of the change (Conner, 1993): Denial cannot forecast need for any major changes Anger at others for what they're putting me through Bargaining work out solutions, look for win-win situations Depression is change really needed, employee counseling Acceptance the compliance with new system

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Role of Leadership in Change

Leading the Change Kurt Lewin (1951) stated that there are three stages in leading the change successfully: Unfreezing Old ideals and processes must be tossed aside so that new ones may be cultured. Often, getting rid of the past processes is just as difficult as learning new ones due to the power of habits. During this part of the process you need to provide just a little bit of coaching as they are unlearning not learning and a lot of emotional support to come out of the old habits. Changing: The steps to the new ideals are learned by practicing: Although there will be uncertainty, burden and despair, there will also be hope, innovation, aggravation and excitement. This phase demands a lot of mentoring and coaching as they are going through and just a little bit of cheerleading due to the affect of Arousal Overloading. Refreezing: The new processes are now intellectually and emotionally acknowledged. Whatever that has been learned is now actually being applied on the job. Coaching is required and a lot of emotional support is used to set up the next change process into a continuous process improvement (CPI); (Kurt Lewin,1951).

Role of Leadership in Change

Author D.E. Hussey (2005), whereas accentuated on the EASIER way to lead the change. The acronym stands for: EASIER: Envisioning Activating Supporting Implementing Ensuring Recognizing The easier approach can be seen under two broad headings. The first three elements, envisioning, activating & supporting, are the charismatic and behavioral aspects of leadership. The second three elements, implementing, ensuring and recognizing, are the management & administrative aspects that enable the first three to be converted to effective actions. The implicit assumption is that change under this model is led by one person, and this may often be the case. However, the steps of the model are just as valid for change led by a team. It also makes sense for managers who are leading change and who are good at only some of the steps to extend their capabilities by deliberately using other people to supply the missing skills.

Role of Leadership in Change

Change Leadership V/S Change Management Gardner (1990) suggests that leadership is "the process of persuasion or example by which an individual or the leadership team induces a group to pursue objectives held by the leader or shared by the leader and his or her followers". Further, he delegates the term "managers" for individuals who "hold an executive or directive position in an organization controlling the necessary resources through which the organization functions, assigning resources cautiously, and making the best possible use of human resource" (Gardner, 1990). In agreement to Gardner, Tosi (1982) suggests that "leading is a persuading process; whereas managing may be seen as the act of making choices about the form and structure of those factors that fall within the boundaries of managerial prudence" The distinction between the role of manager as the one who negotiates with employees to obtain balanced transactions of rewards for employee efforts, and the role of leaders as ones who direct efforts to modify, develop, and transform the organization (Burns, 1982). Tichy and Devanna (1986) augmented Burns's ideas, declaring that managers take on very little change but manage what is present and abscond things much as they found them when they depart. Leaders, they declared, focuses on change, innovation, creativity and entrepreneurship. The leader modifies radically and transforms the organization according to a vision of a favored status. Hence, leaders are change bringers and transformers, moving the organization to a new and more compelling vision. Transactional and transformational leaders are "often viewed as complementary," with transactional practices required to get the routine operations carried out, however these "practices do not stimulate improvement, transformational leadership provides the incentive" (Leithwood, 1992).

Role of Leadership in Change

Leadership is defined by function. It is not limited to people who occupy a specific positions. Any person who can deliver the leadership function is a leader. In an example of a High School such persons can contain principals, superintendents, and school board members. However, teachers, parents, and community members can be significant educational leaders, similar to central office consultants or specialists, external agency staff, and state department personnel. Students also have the potential to be leaders. The term is not confined to any individual. Anyone can be a leader who provides leadership, "the process of converting intentions into reality". John Kotter (2011) chief innovation officer of Kotter International says that, there is a major difference between what is known today as change management and what we have been calling for some time change leadership. Change management is basically a set of processes and a set of tools and a set of mechanisms that are designed to make sure that change should be under ones control. So it is a way of making a big change and keeping it under control. Change leadership is much more concerned with driving, steering and successfully managing the whole change process, and making it go expedite, more smartly and more efficiently, while making change possible on the larger scale. Change management is to be more associated with the smaller changes which sum up and culminates in the major and fruitful change for the organization.

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A Six-Component Framework Hord & Huling-Austin, from a longitudinal study that focused specifically on identifying the actions or interventions of leaders and change facilitators identified eight functional classifications of constructive interventions (see Figure below). Classifications of Interventions Planning, Managing, Developing supportive Providing materials, organizational arrangements resources, Space, inc.

Teaching, Reviewing Training and Clarifying new Knowledge and Skills

Collecting, Analyzing, Monitoring and evaluation Reporting, and Transferring data

Promoting innovation use Providing consultation and reinforcement through problem solving and technical assistance to individual users

External communication

Informing outsiders

Dissemination

Gaining support of outsiders

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and promoting use of the innovation by outsiders

Discouraging or Impeding interrupting

Complimenting, Praising, Expressing and Acknowledging, responding to concerns Complaining, Reprimanding

(Hord & Huyling-Austin, 1986) Out of these eight functions, four are represented most frequently in the studies of change: Delivering logistical and organizational arrangements, Training, Monitoring and evaluation Providing consultation/problem solving and reinforcement. In addition, two other functions are well-known in the literature on change implementation: creating an atmosphere and culture for change, and communicating the vision. A six-part framework, therefore, is used here to report findings about leaders' roles in implementing change.

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Creating an atmosphere and culture for change Developing and communicating the vision Planning and providing resources Providing training and development Monitoring and checking progress Continuing to give assistance.

Conclusion Change is an inevitable fact and it is an opportunity as well, which if adopted results in the success of an organization and if ignored results in the downfall of a business. The leader is the one who holds steering of the organization and have enough skills, flairs and flexibility to drive organization towards its goals attainment.

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References Patricia Buhler (2001). Alpha teach yourself management skills. USA, Marie Butler-Knight Publishers. Paul Sloane (2006). The Leaders guide to lateral thinking skills. UKm Kogan page. Rick Maurer (1996). Beyond the Wall of Resistance.USA, Bard Press. Kevin Eikenberry(2007). Remarkable Leadership. San Francisco, Jossey-Bass Warren Bennis (1989). On Becoming a Leader. USA, Perseus Books. Klepper, S & Simons, K (1997). Technological extinctions of industrial firms: An inquiry into their nature and causes. Industrial and Corporate Change. Conner, D. (1993). Managing at the Speed of Change . New York, Random House. Cartwright, D. (1951). Foreword to the 1951 Edition Field Theory in Social Science and Selected Theoretical Papers-Kurt Lewin. Washington D.C, Harper & Row. D.E.Hussey (2005). How to manage organizational change (Better Management Skills). Roethlisberger, F. J. and Dickson, W. J. (1939). Management and the Worker. Cambridge, Harvard University Press. John W. Gardner (1990). On Leadership. Washington D.C, Free Press. Henry L. Tosi and Stephen J. Carroll, Management(second edition) (1982). New York, Sage Publications. James Macgregor Burns (1982). Leadership. Harper Perennial.

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Noel M. Tichy, Mary Anne Devanna (1986). The transformational leader. John Wiley & Sons Inc. Leithwood, Kenneth A (1992). The Move Toward Transformational Leadership. Block, P (1987). The empowered manager: Positive political skills at work. San Francisco, Jossey-Bass. John Kotter (2011). The difference between Change management and change leadership, Kotter International. Retrieved from http://www.forbes.com/sites/johnkotter/2011/07/12/change-management-vs-changeleadership-whats-the-difference Hord & Huyling-Austin (1986). A six component framework. Retrieved from http://www.sedl.org/change/facilitate/leaders.html