Organizational Change

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, 5
th
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
Creating
agenda
Planning,
budgeting
Vision &
direction
People Organising &
staffing
Alligning and
communicating
Execution Monitoring,
controlling,
rectifying
Motivating &
inspiring
Outcomes Delivers on
expectations
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 style
is often
best
Team
Management
Country Club
Management
Organisation
Man Management
Impoverished
Management
Authority-
Obedience
One-best-way - transformational leaders

Transformational Leaders
Make major changes to
organisational mission
organisational structure
political 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
J ayne has little room to manoeuvre
Subordinates
preferences
Task stucture
Context
Jaynes
preferences
Directive Participative
style of style of
leadership leadership
J
a
y
n
e
s

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o
o
m

f
o
r

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a
n
o
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e

2. Fiedlers contingency theory of leadership
Leader-
Member
Relationships
Task
structure
Position
power
Leadership
style
1 Good Structured High
2 Good Structured Low
3 Good Unstructured High
Task-oriented style
Recommended
4 Good Unstructured Low
5 Poor Structured High
6 Poor Structured Low
Person-oriented
style
Recommended
7 Poor Unstructured High
8 Poor unstructured low
Task-oriented style
recommended
Fiedler believes leaders must be chosen to fit the situation
Contingency Theory 3: Hersey &
Blanchards Situational Leadership
Leader: decreasing need for support and supervision
Situational Leadership (cont.)
(Hersey and Blanchard)
Two Orientations
task behavior
relationship behavior
Four Styles
tell
sell
participate
delegate
(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
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 & results
EFFORT

PERFORMANCE
skill motivation
Expectations
that effort will
bring desired
rewards)
locus of
control
job
design
goal
clarity
time resources
(tools,
materials,
information
etc.)
TEAM MEMBER CHARACTERISTICS
NATURE OF TASK AND CONTEXT
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
Directive Supportive Participative Achievement
Employee
Contingencies
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 ?
Environmental
Contingencies
Directive Supportive Participative Achievement
Contingency Theory 5: Quinns
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 Organisational
Life Cycle (i) : Greiner, Clarke
.
Evolutionary Phase
of Organisation
Appropriate Top
Management Style
1. Creativity Individualistic,
entrepreneurial
2. Direction Directive, strong
3. Delegation Delegation, gives
autonomy
4. Coordination Watchdog
5. Elaboration Participative, team
oriented
Leadership and the Organisational
Life Cycle (ii) : Clarke & Pratt
.
Evolutionary Phase
of Organisation
Appropriate Top
Management Style
1. New business Champion
2. Exploitable
market
Tank commander
3. Mature Housekeeper
4. Danger of
decline
Lemon squeezer
Environmental conditions & types of change
- a recap of Chapter 2
ENVIRONMENTAL FORCES FOR
CHANGE
TYPES OF CHANGE
Ansoff and
McDonnell (1990)
Strebel
(1996)
Stacey
(1996)
Tushman et al.
(1988)
Dunphy &
Stace (1993)
Grundy
(1993)
Stacey
(1996)
Predictable
Forecastable by
extrapolation
Predictable threats
and opportunities
Partially predictable
opportunities
Unpredictable
surprises
Weak
Moderate
Strong
Close to
certainty
Close to
certainty
Far from
certainty
Converging
(fine-tuning)
Converging
(incremental)
Discontinuous
or frame-
breaking
Fine-tuning
Incremental
adjustment
Modular
transformation
Corporate
transformation
Smooth
incremental
Bumpy
incremental
Discontinuous
Closed
Contained
Open-ended
Dunphy & Stace Change Matrix
.
Type of Change Enacted (following
environmental forces for change)
Style of
Change Mgt.
Fine
Tuning
Increm.
adjustment
Modular
transform
Corporate
transform
Collaborative
Consultative
Type 1 Participative
Evolution
Type 2
Charismatic
Transformation
Directive
Coercive
Type 3
Forced Evolution
Type 4
Dictatorial
Transformation
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
Individuals Resist Change
Perceived lack of
new skills,
loss of old
Fear of
the Unknown
Loss of power
base
Dislike of
uncertainty
ambiguity
Loss of
rewards
How People Resist Change
Individual responses to threats and
unknown dangers
rigidity
doing more of the same but harder
greater inadequacy
aggression
aggressive rigidity
Threat to
Existing Group
Power Bases
Threat to
Existing
Resource
Allocations
Structural
Built-in
Inertia
Cultural,
mindset
inertia
Entrenched
interests
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
Lewins
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

Strebels contrasting change
paths
Beer, Eisenstat and Spectors
six steps to effective change
Kotter & Schlesinger
Possible Change Paths - Strebel
.
Resistance
level
Proactive Reactive Rapid
Closed to
change
Radical
leadership
Org re-
allignment
Downsizing &
restructuring
Can be
opened to
change
Top down
experim-
entation
Process re-
engineering
Autonomous
restructuring
Open to
change
Bottom-up
experim-
entation
Goal
cascading
Rapid
adaptation
Change
force Weak Moderate Strong
Beer et als 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 dont 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

Organizational Change

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