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Leadership & change management, lecture 5, by rahat kazmi
 

Leadership & change management, lecture 5, by rahat kazmi

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This Lecture was prepared for my MBA students in London. It will benefit students, lecturers or managers who like to polish up their leadership skills. Feel Free to download this lecture in pdf, ...

This Lecture was prepared for my MBA students in London. It will benefit students, lecturers or managers who like to polish up their leadership skills. Feel Free to download this lecture in pdf, however, if you need the ppt slides, please send me a payment of £1 by paypal at: srahatkazmi@gmail.com and I will happy to send you the lecture.


Hope it was beneficial to you.

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    Leadership & change management, lecture 5, by rahat kazmi Leadership & change management, lecture 5, by rahat kazmi Presentation Transcript

    • LEADERSHIP AND CHANGE MANAGEMENT - NATURE OF ORGANIZATIONAL CHANGE - REASONS FOR RESISTANCE TO CHANGE - MANAGEMENT OF ORGANIZATIONAL CHANGE - IMPORTANCE OF ORGANIZATIONAL HEALTH AND PERFORMANCE LECTURE 2 BY RAHAT KAZMI PREPARED BY: RAHAT KAZMI SEPTEMBER 2010Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Objectives  To explain the nature of organizational change and explore reasons for resistance to change  To examine the management of organizational change, and human and social factors of change  Review the importance of organizational health and performance, and ability of the organization to adapt to changeFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Culture People ProcessFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Why Change?  Adaption of new ideas  Organisations need to continually adapt to new situations if they are to survive and prosper  Constant Change keeps Organisations AgileFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Don’t Try to Change Me…….Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Old & New Change Models Old Learning Model New Learning ModelFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Why Change? Other Factors  Market Transparency  Labour Mobility  Global Capital FlowsFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • What is System? S SHRAED VISION Y YOU ARE ACCOUNTABLE S SHAREHOLDER INVOLVEMENT TOOLS & SKILLS T E ENABLING BEHAVIOUR MEASURES & PROCESSES MFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Change We can Believe inFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • 10 Principals of Change Management 1) Address the Human Side Systematically 2) Start at the Top 3) Involve every Layer  a) Define Strategy  b) Setting Targets  c) Design  d) Implement 4) Make the Formal Case  a) First confront reality and articulate a convincing need for change  b) Demonstrate faith that company has a viable future and the leadership to get there  c) Provide a roadmap to guide behaviour and decision making 5) Create Ownership 6) Communicate the Message 7) Assess the Cultural Landscape  Values-Beliefs-Behaviours and Perceptions 8) Address Culture Explicitly 9) Prepare for the Unexpected 10) Speak to the IndividualFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Change Is.....  The human experience consists of matching our capabilities against the challenges we face. A sense of balance, is maintained in our lives when: = Challenge = • Capability Ability/willingness Danger/Opportunity We seek this kind of balance because it makes us feel that things are predictable and thus easier to manage.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Change Is.....  Change occurs when this balance is disrupted. There are two ways the status quo can be disrupted; positive change or negative change: = Challenge = • Capability >Positive Change orFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Change Is.....  When people believe their capabilities exceed a challenge, they generally feel positive because the outcome is not only desirable but expected (for example the birth of a child.) When the reverse is true, people feel negative not only because the outcome is undesirable, but also because such situations lack predictability.: = Challenge = • Capability >Negative Change Most people find it is extremely uncomfortable to face situations filled with the unknown because of the loss of predictability. We are attracted to situations that are familiar because they allow us the feeling of being in control.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • KURT-LEWIN’S CHANGE MODEL UNFREEZE CHANGE REFREEZEFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • KURT-LEWIN’S CHANGE MODEL Kurt Lewin‟s model of change Stage Characteristics Organizational impact People in the organization made aware of This diagnosis stage is often driven by Unfreezing problems/performance gap a change agent and need for change People experiment with new This intervention stage features specific Changing workplace behaviour to deal training plans for managers and with needed change employees People employ new skills and Changes are institutionalized in the Refreezing attitudes and are rewarded by corporate culture organizationFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • THE CHANGE PROCESS Present Transition Desired Desired State State State State The above model for change can be used to understand and plan for change. It uses the analogy of an arrow to explain the change process of an organization. The 1st circle in its original shape represents the current state of the organization. In order to change, the 1st circle must be unfrozen, moulded to its new shape, and then, refrozen. Similarly the organization, in order to change positively, must melt any forces, which resist change and create a climate of acceptance and trust that will reinforce or refreeze the new state of the organization.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Characteristics of the Transition State  Low stability.  High, often undirected energy.  Past patterns of behaviour become highly valued.  High emotional stress.  Control becomes a major issue.  Conflict increases.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Managing Change - Examples CASE 1: Shake-up at the GTE Corporation A deregulation in the telephone industry that was capped by the antitrust Situation settlement broke up the Bell system and triggered the great shake-up at the GTE Corporation. Trigger External environmental change triggered by government laws. Driver/Barrier Environmental The company was forced to refocus its telecommunications business and Actions Taken discontinue its other unrelated industrial businesses. GTE is attempting to integrate local phone service with cellular business to Results create a streamline network. This would allow customers to easily call almost anywhere.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Managing Change - Examples CASE 2: Need for quicker product deliveries at Black Box Black box wants to improve the efficiency of the organization by delivering Situation their products quicker to the customers Internal organization problem in which slow employees triggered the Trigger change. Driver/Barrier Incentive A change agent at Black Box used action in the form of a reward system to Actions Taken incentives employees. He dramatized the need for faster deliveries by implementing a new bonus plan for the employees. Warehouse fulfillment teams worked overtime taking extra orders and Results sending out same-day shipments. Employees earned 140% of their bonuses and nothing else suffered.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - Internal Human Resource Issues  Organizational learning requires humans as agents.  Accordingly, changes in human resources within any organization pose major impetus for OL.  In Virany, Tushman, and Romanelli (1992), the researchers examine how changes in the chief executive officer triggered off necessary organizational learning among members in the top management team.  In a study on expatriation, Vink and Schapink (1994) argued that organizations must learn to work beyond Western ethnocentric theories of behaviour.  Effective intercultural managers are those who have acquired and shared their collective experiences on unfamiliar and different cultures.  On the relationship between personnel turnover and organizational learning, Carley (1992) showed that hierarchies were less affected by high turnover rates than teams, particularly when the task is non-decomposable.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - Internal Implementation Issues  The introduction of a new technology, innovation, or R&D often triggers need for  organizational learning (see George 1983; Bessant and Buckingham 1993; Carlsson and Kean1976).  Implementing a new innovation often alters existing work routines, reward structures, or communication patterns to the extent that organizations must ensure sufficient slack resources to support learning activities to incorporate the innovations successfully and to obtain full benefits of the innovation.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - Internal Inter-organizational Relations  Organizational learning is an emerging paradigm for the study of strategy making when firms diversify into new practices, products or services and collaborate with other firms in creating new interorganizational relationships or IOR (Alaharkonen and Rutenberg 1990) (Kazanjian and Drazin 1987).  The need for close collaboration and cooperation with others in IOR such as strategic alliances imposes an unprecedented emphasis on organizational learning as parties to the relationship need to institutionalize and amalgamate distinct organizational practices, new job definitions, new ways of managing and even redefining the nature of the firm (Lewis 1991).Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - External Business Environment Issues  Business turbulence comprises one of the most significant environmental jolts faced by firms.  Rapidly changing dynamics of industries and competitive forces require firms to learn faster than competitors in order to achieve sustainable competitive advantage.  To survive, organizations must learn to shift from managing and producing in the world of stable markets to one with short product lifecycles, continual innovation, and rapid changes in customer demands.  Organizations must build a capacity to learn: to conduct quick studies and tackle novel problems (Maccoby 1993; Hosley, Lau, Levy, and Tan, 1994)Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - External E-CommerceFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - External Digital ConvergenceFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - External AcquisitionsFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - External Technological Environment Issues  The greatest jolt from the environment is the unprecedented pace of change in technologies. Because of the high rate of technological change, formal education in schools will never be able to totally prepare workers for their lifetime‟s technological work demands.  It is thus paramount that firms create a learning environment within their organizations to promote on-the-job learning and growth.  Continual learning and investing in the full spectrum of employee talents with teamwork are cornerstones for coping with relentless pace of change in technology (Benett and O‟Brien 1994; Atkinson 1994).Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - External Economic Environment Issues  Economic environment issues take on many forms. With globalization of markets, organizations must learn to break the limited mindsets of national markets to compete on a worldwide basis (Ghoshal and Butler 1992).  Firms in economic recessionary regimes must learn new survival skills to re- vitalize the organization, steering the organization from danger to opportunity (Hollingworth 1992).  Organizations in East European economies and other communist regimes face great challenges when reforms coverted centrally planned markets to free, open markets (Swiderski and Seiderski 1986).  Firms had to erase old organizational memories and routines of a socialist economy and generate new rules, standard operating procedures to compete in a new open market economy.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - External Ecological & Political Environment Issues  Occasionally, organizations learned from natural disasters (e.g., Bhopal disaster).  Disasters make explicit organizational policies on safety measures (Bowman and Kunreuther 1988).  As nations become more concerned with the ecological environment, and as new laws and statutes are enacted to protect the natural environment, organizations need to develop new rules, behaviors and business practices to abide by the “green” laws (Mylonadis 1994).  Organizations also need to learn to cope with new regulation following changes in political leadership and regimes (Godkin and Montano 1991).Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - External Changes in socioeconomic values  Jurgen Kadtler discusses how „social movements‟ and „interest groups‟ act as Triggers for organizational learning.  Some organizations are forced to adapt to surrounding social, environmental, or Regulational factors (Dierkes, Antal, Child, & Nonaka, 2003).  Often these factors are outside their control and they must react to them. “Whether the organization acquires the capacity to manage the crisis and deal with the concern of social movements or interest groups is determined by organizational learning.  This refers to the tension between and analytical and a normative perspective on organizational learning” .Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - Other Technological Visions  Although visions have been heralded as an all important component of organizational leadership, there has been – up till now, little research conducted to better understand the concept of visions.  New insight, however, confirms that visions facilitate vicarious learning and serve as “points of orientation…based on core values and shared perceptionsFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - Other Creativity as a Trigger  Cunha, Cunha and Kamoche (2002) suggest that an open minded and, indeed, creative approach to errors may serve as the trigger for organizational improvisation and learning.  Rather than simply rewarding employees and managers for fixing problems, we should encourage their use as stimuli for further learning.  Consider, “an example from Nordstroms department store where employees are encouraged to "respond to unreasonable customer requests." Stories circulate about an employee paying a customers parking ticket when the stores gift wrapping took too long”.  This type of accommodation should be rewarded and viewed as a departure point for a learning journey aimed at discovering what caused the process to fail to produce the desired result.Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Triggers of Change - Other Anxiety as a Trigger  Edgar Schein, as cited in Coutu, (2002), provides a useful and realistic view of the essential triggers of organizational learning. He maintains that anxiety is necessary as a trigger for learning.  Adopting a distinctly unpopular stance, Schein maintains that learning is coercive. He believes that anxiety, or more correctly, “learning anxiety” occurs when we are afraid of trying something new out of fear of failure, embarrassment, or the desire not to give up old paradigms.  Conversely, “survival anxiety” is the realization that survival of the individual or the organization depends on change.  Schein tells us that “the evidence is mounting that real change does not begin to occur until the organization experiences some real threat of pain that in some way dashes its expectations or hopes” .Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Ford Motor Company – Case Study  Ford Motor Company has been advertising in gay and lesbian magazines, recently.  Some in the special interest evangelical movement has strongly objected to Ford‟s advertising practices and see it as a promotion of a lifestyle to which they object.  They have sought to use boycotts to convince Ford to change it advertising policies.  How Ford responds can have negative financial implications on either side.  However Ford reacts in the above situation will be a learning organization challenge.  In whatever direction it goes, “new organizational competencies have to be acquired if critical issues are to be addressed successfully”Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • The Role of Web in Change “Twenty years from now we‟ll look back and say this was the embryonic period. The Web is only going to get more revolutionary” Tim Berners-Lee, 2006Follow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • The Role of Web in Change The Web is a fundamentally new way of getting things done The Web is a bigger megaphoneFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • References  Laurie J Mullins (2007) Management and Organisational behaviour, 7th edition  Richard L Daft (2007) Organization theory and design, 8th edition  John Pearson and Robinson (2005) Strategic management; Formulation, implementation and control, 7th edition  IAM Diploma in Administrative Management: Study guideFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultantVist the website: www.softskillsexperts.com
    • Contact Us Soft Skills Experts 138 Wandsworth Bridge Road Fulham London SW6 2UL United Kingdom Tel: +44 772 822 9192 Email: rahat@SoftSkillsExperts.comFollow him on Twitter: twitter.com/srahatkazmi orJoin Facebook Fan’s page : facebook.com/TrainingConsultant