Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Chapter 6
Leading Change
Organisational Change
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Introduction
Leadership is a familiar topic, and you...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Objectives (1)
To:
•identify those characteristics w...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Objectives (2)
To:
•assess the compatibility of diff...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Management and Leadership
Inter-personal roles
– Fig...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Management and Leadership
Can someone be a manager
b...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Management:
– takes place within a structured
organi...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Leadership
A leader shapes and shares a vision which...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Kotter on Management, Leadership
Creating
agenda
Pla...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Approaches to Theorising Leadership
Two main approac...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
“One best way” - traits of leadership (i)
Intelligen...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
“One best way” - traits of leadership (ii)
Drive * (...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
“One best way” - traits of leadership (iii)
Risk-tak...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
“One best way” - traits of leadership (iv)
Leadershi...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
“One best way” - traits of leadership (v)
Components...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
A Bad Way - unethical leadership
Narcissistic
Contro...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
“One Best Way” ? - leader behaviour
Wright (1996) fo...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
University of Michigan Studies
This style seemed to ...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
The
Managerial
Grid
9,9 style
is often
best
Team
Man...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
“One-best-way” - transformational leaders
Transforma...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
“One-best-way” - transactional & ‘transformational l...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Current state
of expected
subordinate
effort
Heighte...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
“One-best-way” - A third dimension of
leadership beh...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Contingency theories
These take account of the great...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Contingency Theory 1:
Tannenbaum and Schmidt
A conti...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Jayne has little room to manoeuvre
Subordinates’
pre...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
2. Fiedler’s contingency theory of leadership
Leader...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Contingency Theory 3: Hersey &
Blanchard’s Situation...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Situational Leadership (cont.)
(Hersey and Blanchard...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Situational Leadership (cont.)
(Hersey and Blanchard...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Situational Leadership (cont.)
Subordinates’
Willing...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Contingency Theory 4: Path-Goal
Theory
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Path-Goal: factors between effort & resultsPath-Goal...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Path-Goal Leadership Styles
1. Directive
– Clarifies...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Directive Supportive Participative Achievement
Emplo...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Contingency Theory 5: Quinn’s
Competing Values
The b...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Leadership in times of change
Leadership and the org...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Can one leader take the organisation
through all its...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Leadership and the Organisational
Life Cycle (i) : G...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Leadership and the Organisational
Life Cycle (ii) : ...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Environmental conditions & types of change
- a recap...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Dunphy & Stace Change Matrix
.
Type of Change Enacte...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Forces for and against change
Driving forces for cha...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Resistance to Change
‘The most likely response to a ...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Individuals’ reactions to change
+ Positives
Enthusi...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Reasons for Adverse Reactions to
Change
Loss of job
...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Underlying Reasons WhyUnderlying Reasons Why
Individ...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
How People Resist Change
Individual responses to thr...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Threat to
Existing Group
Power Bases
Threat to
Exist...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Why Organisations Resist Change
Organisations are co...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Lewin’s
Force-Field
Theory of
Change
Organisational ...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Steps in Force Field Analysis
1. Define problem (cur...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Assessing resistance to change -
Strebel
Look for cl...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Responding to resistance to change
Strebel’s contras...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Possible Change Paths - Strebel
.
Resistance
level
P...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Beer et al’s six steps to effective change
Mobilise ...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
Possible ways of dealing with
resistance (Kotter & S...
Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002
E (Economic) vs O (organisational
capability) approa...
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  • Illustration 6.2 p. 190
    Mintzberg's managerial roles
  • Transactional leader
    Contingent reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognises accomplishments.
    Management by exception (active): Watches and searches for deviations from rules and standards, takes corrective action.
    Management by exception (passive): Intervenes only if standards are not met.
    Laissez-faire: Abdicates responsibilities, avoids making decisions.
    Transformational leader
    Charisma: Provides vision and sense of mission, instills pride, gains respect and trust.
    Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.
    Intellectual stimulation: Promotes intelligence, rationality, and careful problem solving.
    Individualized consideration: Gives personal attention, treats each employee individually, coaches, advises.
    (Source; Bass, B.M. (1990), From transactional to transformational leadership: Learning to share the vision, Organizational Dynamics, Winter, p. 22.)
  • Transactional leader
    Contingent reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognises accomplishments.
    Management by exception (active): Watches and searches for deviations from rules and standards, takes corrective action.
    Management by exception (passive): Intervenes only if standards are not met.
    Laissez-faire: Abdicates responsibilities, avoids making decisions.
    Transformational leader
    Charisma: Provides vision and sense of mission, instills pride, gains respect and trust.
    Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.
    Intellectual stimulation: Promotes intelligence, rationality, and careful problem solving.
    Individualized consideration: Gives personal attention, treats each employee individually, coaches, advises.
    (Source; Bass, B.M. (1990), From transactional to transformational leadership: Learning to share the vision, Organizational Dynamics, Winter, p. 22.)
  • Can you make a argument that leaders make a real difference vs. leaders make no difference?
    How many of you believe that leaders make no difference vs. leaders make a real difference?
  • Pages 215 - 223
  • Pages 215 - 223
  • Pages 215 - 223
  • Driving forces for change
    External forcesInternal forces
    *role of the state*organisational growth*social pressures*pressures for increased performance*changing technology*managerial aspirations
    *constraints from suppliers*political coalitions*stakeholder demands
    *redesign of jobs*competitor behaviour*restructuring *customer needs
    Driving forces against change
    Individual resistance
    *fear of the unknown*dislike of the uncertainty and ambiguity surrounding change *potential loss of power base*potential loss of rewards
    *perceived lack of skills for new situation*potential loss of current skills
    Organisational resistance
    *inertial forces deriving from the systemic nature of organisations
    *interlocking aspects of structure, systems, rituals and routines, signs and symbols
    *inertial forces deriving from group norms
    *potential loss of group power bases
    *entrenched interests of stakeholders
    *lack of organisational capability
    *lack of resources
    * threat to resource allocations
  • Illustration 6.9 p. 222
    Six steps to effective change (Beer, Eisenstat and Spector, 1990)
    1Mobilise commitment to change through joint diagnosis of business problems.
    2Develop a shared vision of how to organise and manage for competitiveness.
    3Foster consensus for the new vision, competence to enact it, and cohesion to move it along.
    4Spread revitalisation to all departments without pushing it from the top.
    5Institutionalise revitalisation through formal policies, systems, and structures.
    6Monitor and adjust strategies in response to problems in the revitalisation process.
    Illustration 6.10 p.222
    Why transformation efforts fail (Kotter, 1995)
    1Not establishing a great enough sense of urgency
    2Not creating a powerful enough coalition
    3Lacking a vision
    4Undercommunicating by a factor of ten
    5Not removing obstacles to the new vision
    6Not systematically planning for and creating short-term wins
    7Declaring victory too soon
    8Not anchoring changes in the corporation's culture
  • Organizational changes 4

    1. 1. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Chapter 6 Leading Change Organisational Change
    2. 2. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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?’
    3. 3. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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;
    4. 4. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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.
    5. 5. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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.
    6. 6. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Management and Leadership Can someone be a manager but not a leader? Can someone be a leader but not a manager?
    7. 7. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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.
    8. 8. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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,
    9. 9. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    10. 10. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Approaches to Theorising Leadership Two main approaches “One best way” Contingency
    11. 11. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 “One best way” - traits of leadership (i) Intelligence * Having an extrovert personality Dominance * Masculinity Conservatism (Lord, De Vader & Allier, 1986)
    12. 12. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 “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)
    13. 13. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 “One best way” - traits of leadership (iii) Risk-taking * Assertiveness and decisiveness Achievement orientation Motivation Competitiveness (Dulewicz and Herbert 1996)
    14. 14. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 “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’
    15. 15. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 “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
    16. 16. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 A Bad Way - unethical leadership Narcissistic Controlling Manipulative Self-promoting
    17. 17. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 “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)
    18. 18. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 University of Michigan Studies This style seemed to work best
    19. 19. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 The Managerial Grid 9,9 style is often best Team Management Country Club Management Organisation Man Management Impoverished Management Authority- Obedience
    20. 20. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 “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)
    21. 21. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 “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)
    22. 22. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Current state of expected subordinate effort Heightened motivation to attain designed outcome (extra effort) Normal expected subordinate performance Subordinate performance beyond normal expectations
    23. 23. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 “One-best-way” - A third dimension of leadership behaviour Andrea Jung, CEO of Avon Cosmetics
    24. 24. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    25. 25. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    26. 26. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Jayne has little room to manoeuvre Subordinates’ preferences Task stucture Context Jayne’s preferences Directive Participative style of style of leadership leadership Jayne’sroomformanoeuvre
    27. 27. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 2. Fiedler’s 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
    28. 28. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Contingency Theory 3: Hersey & Blanchard’s Situational Leadership Follower readiness: ability and willingness Follower readiness: ability and willingness Leader: decreasing need for support and supervisionLeader: decreasing need for support and supervision
    29. 29. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Situational Leadership (cont.) (Hersey and Blanchard) ♦ Two Orientations – task behavior – relationship behavior ♦ Four Styles – tell – sell – participate – delegate
    30. 30. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    31. 31. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Situational Leadership (cont.) Subordinates’ Willingness Subordinates’ Ability Lo Hi Hi Effect of (Follower Readiness: Willingness and Ability)
    32. 32. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Contingency Theory 4: Path-Goal Theory
    33. 33. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    34. 34. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    35. 35. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    36. 36. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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.
    37. 37. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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).
    38. 38. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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.
    39. 39. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    40. 40. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    41. 41. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    42. 42. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    43. 43. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    44. 44. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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).
    45. 45. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    46. 46. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    47. 47. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Underlying Reasons WhyUnderlying Reasons Why Individuals Resist ChangeIndividuals 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
    48. 48. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 How People Resist Change Individual responses to threats and unknown dangers rigidity doing more of the same but harder greater inadequacy aggression aggressive rigidity
    49. 49. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Threat to Existing Group Power Bases Threat to Existing Resource Allocations Structural ‘Built-in’ Inertia Cultural, mindset inertiaEntrenched interests Group Norm Inertia Sources of Organisational Resistance
    50. 50. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    51. 51. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Lewin’s Force-Field Theory of Change Organisational change occurs when: • forces for change strengthen • restraining forces lessen, or • both processes occur simultaneously
    52. 52. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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.
    53. 53. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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.
    54. 54. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Responding to resistance to change Strebel’s contrasting change paths Beer, Eisenstat and Spector’s six steps to effective change Kotter & Schlesinger
    55. 55. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
    56. 56. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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.
    57. 57. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 Possible ways of dealing with resistance (Kotter & Schlesinger) education & communication participation & involvement facilitation & support negotiation & agreement manipulation & co-optation explicit and implicit coercion
    58. 58. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 2002 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
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