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UNIT-V
Leadership: What is leadership, types of leaders and
leadership styles, traits and qualities of effective leader,
trait theory, LSM – Leadership Situational Model, Team
Building, Tuckman Model of Team Development.
Organizational Change: Meaning of organizational
change approaches to managing organizational
change, creating a culture for change, implementing
the change, Kurt Lewin Model of change. Case Studies

What is leadership?
Leading
people
Influencing people
Commanding
people
Guiding people

Leadership
◦The ability to influence a group toward the
achievement of goals.
◦Leadership is the activity of influencing people to
strive willingly for group objectives.
- George R. Terry
◦Leadership involves neither coercion nor force. A
manager who relies on force to direct
subordinate’s behavior is not exercising
leadership.

Leadership
◦Leadership is both a process and property.
◦The process of leadership is the use of
non-coercive influence to direct and
co-ordinate the activities of the members
of a group towards the accomplishment of
group objectives.
◦As a property, leadership is the set of
qualities or characteristics attributed to
those who are perceived to successfully
employ such influence.

Importance of leadership
◦Guiding people.
◦Developing teamwork.
◦Maintaining Discipline.
◦Building Morale.
◦Representing the group.

Characteristics of Successful
Leaders
◦Drive
◦Honesty and Integrity
◦Leadership Motivation
◦Self – Confidence
◦Cognitive Ability
◦Creativity
◦Flexibility
◦Expertise

Leadership and
Management
◦Leadership and management are the terms are
the terms that are used interchangeably but
there are lot of differences between them.
◦Management is a process of planning,
organizing, coordinating, directing and
controlling the activities of others.
◦Leadership is the process of influencing for the
purpose of achieving shared goals.

Subject Leader Manager
Essence Change Stability
Focus Leading people Managing work
Have Followers Subordinates
Horizon Long-term Short-term
Seeks Vision Objectives
Approach Sets direction Plans detail
Decision Facilitates Makes
Power Personal charisma Formal authority
Appeal to Heart Head
Energy Passion Control
Dynamic Proactive Reactive
Persuasion Sell Tell
Rules Breaks Makes
Likes Striving Action
Risks Takes Minimizes
Conflict Uses Avoids
Direction New roads Existing roads
Credit Gives Takes
Blame Takes Blames

The difference between managers and leaders
Managers… Leaders…
Bennis &
Nanis
…do things
right
…do the right
things
Kotter …cope with
complexity
…cope with
change

What Do Managers and
Leaders Do?
Lessons
◦In a stable, high-competition environment, good
management is paramount
◦In a dynamic, uncertain environment, leadership is
key
Function Managers Leaders
Deciding what to do Planning and
budgeting
Setting
direction
Creating networks
of people
Organizing and
staffing
Aligning
people
Ensure that tasks
are accomplished
Controlling and
problem-solving
Motivating and
inspiring

Likert’s system of Leadership

Likert’s system of Leadership
Rensis Likert along with his associates in
Michigan University, USA conducted
research to study the patterns and styles of
managers over three decades, across 200
organizations and developed a four-fold
model of the management system that
helped in understanding the leadership
behavior.

Exploitative Authoritative
System
◦ In this type of management system, the responsibility lies
with the people in higher positions in the hierarchy.
◦ Here, the subordinates are not involved in the
decision-making process.
◦ The superior has no trust and confidence in his subordinate
and imposes decisions on him leaving no room for further
discussions.
◦ In this system, the communication flows downwards, i.e.
from the superior to the subordinate and hence there is a
lack of communication and teamwork.
◦ The management is only concerned with the completion of
work;
◦ it uses any means or threats to get the work completed
through the subordinates.

Benevolent Authoritative System
◦ Like exploitative authoritative system, the responsibility lies
with the people at the upper echelons of the hierarchy
and the only difference is that the motivation is based on
the rewards, not on fear and threat.
◦ The superior has that much trust and confidence in his
subordinates which is required in a master-servant
relationship.
◦ The subordinates are given rewards for their participation
and the communication may flow upwards i.e. from
subordinate to superior, but restricted to what the superior
wants to hear.
◦ The subordinates do not feel free to discuss job-related
issues with the superior. This results in the lack of
communication and a little teamwork.

Consultative System
◦ In this management system, the superior has substantial
but not complete, trust and confidence in his subordinates
and constructively uses the views and opinions given by
them.
◦ The motivation is based on rewards and the amount of the
individual’s involvement in the decision-making process.
◦ The consultative system is characterized by a great flow of
information both horizontally and vertically. The
subordinates feel free to discuss job-related issues with the
superiors and hence, the upward flow of communication is
more into the consultative system than a benevolent
system.
◦ The decisions are made by the senior people in the
hierarchy.

Participative System
◦In the participative system, the management has full
confidence in his subordinates and encourages them
to participate actively in the decision-making
process.
◦The subordinate feels absolutely free to discuss any
issue related to a job with his superior.
◦This system is characterized by a good teamwork and
teams are linked with people, who are the members
of more than one team and such people are called
as “linking pins”.
◦The subordinates get motivated through rewards for
their participation in the decision-making process.

Leadership Theories
Trait Theories
Behavioral Theories
Contingency Theories

Trait Theories
◦Leadership is a set of personality traits
◦Great Man Theory: Individuals are born either with
or without the necessary traits for leadership
◦Trait theories of leadership sought social, physical,
moral or intellectual traits that differentiate leaders
from non leaders.
◦Traits like self confidence, power, emotional
stability, integrity etc.

Criticism
◦Trait view has little analytical or predictive value.
◦No universal list of traits
◦Difficult to measure traits
◦Fails to consider whole environment of leadership
◦Do direct correlation between the level of traits and level of
success
◦Leadership effectiveness does not depend on the
personality of the leader alone. Other variables like
situation, task and organization also play major role.

Behavioral Theories
◦Focuses on leadership behavior
◦Describes leadership in terms of what leaders do
rather than what they are.
◦It is function of effective role behavior.
◦Assumes that leadership behavior can be taught.
◦Three main models are:
1)The Michigan Studies
2)The Ohio State University Studies
3)The Managerial Grid

The Michigan Studies
◦Michigan researchers identified two leadership styles:
◦Employee centered
◦Production centered
◦Employee centered supervision was more effective in
increasing productivity.
◦Production centered supervision and control lead to
lack of interest and responsibility on the part of
workers.

Leadership studies were undertaken at the same
time as those being done at Ohio State, with similar
research objectives. They discovered two
dimensions of leadership behavior
◦Employee-oriented leaders emphasized
interpersonal relations. They took a personal
interest in the needs of their employees and
accepted individual differences among
members.
◦The production-oriented leaders tended to
emphasize the technical or task aspects of the
job—group members were a means to that end.

Michigan researchers’ conclusions strongly
favored the leaders who were employee
oriented. Employee-oriented leaders were
associated with higher group productivity
and higher job satisfaction.
Production-oriented leaders tended to be
associated with low group productivity and
lower job satisfaction.

Ohio State Studies
The most comprehensive and replicated of the behavioral
theories resulted from research that began at Ohio State
University in the late 1940s.
◦ They narrowed over a thousand dimensions into two
dimensions—initiating structure and consideration.
◦ Initiating structure refers to the extent to which a leader is
likely to define and structure his/her role and those of
employees in the search for goal attainment.
◦ It includes attempts to organize work, work relationships,
and goals.
◦ The leader high in initiating structure could be described
as someone who “assigns group members to particular
tasks,” “expects workers to maintain definite standards of
performance,” and “emphasizes the meeting of
deadlines.”

Ohio State Studies
Consideration is described as “the extent to which a person is
likely to have job relationships that are characterized by
mutual trust, respect for employees’ ideas, and regard for their
feelings.”
◦ The leader shows concern for followers’ comfort, well-being,
status, and satisfaction.
◦ A leader high in consideration could be described as one
who helps employees with personal problems, is friendly and
approachable, and treats all employees as equals.
◦ Leaders high in initiating structure and consideration tended
to achieve high employee performance and satisfaction.
◦ The “high-high” style did not always result in positive
consequences.
◦ Leader behavior characterized as high on initiating structure
led to greater rates of grievances, absenteeism, and
turnover, and lower levels of job satisfaction for routine tasks.
◦ High consideration was negatively related to performance
ratings of the leader by his/her superior.

MANAGERIAL GRID/Blake
Mouton GRID
The Blake Mouton Grid plots a manager's or leader's degree of
task-centeredness versus their person-centeredness, and identifies
five different combinations of the two and the leadership styles
they produce. It's also known as the Managerial Grid, or
Leadership Grid, and was developed in the early 1960s by
management theorists Robert Blake and Jane Mouton.
The model is based on two behavioral dimensions:
• Concern for People: this is the degree to which a leader
considers team members' needs, interests and areas of personal
development when deciding how best to accomplish a task.
• Concern for Results: this is the degree to which a leader
emphasizes concrete objectives, organizational efficiency and
high productivity when deciding how best to accomplish a task.

Mouton GRID

Mouton GRID
1. Impoverished Management – Low Results/Low People
The Impoverished or "indifferent" manager is mostly ineffective. With a low
regard for creating systems that get the job done, and with little interest in
creating a satisfying or motivating team environment , this manager's results
are inevitably disorganization, dissatisfaction and disharmony.
2. Produce-or-Perish Management – High Results/Low People
Also known as "authoritarian" or "authority-compliance" managers, people in
this category believe that their team members are simply a means to an
end. The team's needs are always secondary to its productivity.
This type of manager is autocratic, has strict work rules, policies and
procedures, and can view punishment as an effective way of motivating
team members. This approach can drive impressive production results at
first, but low team morale and motivation will ultimately affect people's
performance, and this type of leader will struggle to retain high performers.

Mouton GRID
3. Middle-of-the-Road Management – Medium Results/Medium People
A Middle-of-the-Road or "status quo" manager tries to balance results and people,
but this strategy is not as effective as it may sound. Through continual
compromise, they fail to inspire high performance and also fail to meet people's
needs fully. The result is that their team will likely deliver only mediocre
performance.
4. Country Club Management – High People/Low Results
The Country Club or "accommodating" style of manager is most concerned about
their team members' needs and feelings. They assume that, as long as their
people are happy and secure, they'll work hard.
5. Team Management – High Production/High People
According to the Blake Mouton model, Team Management is the most effective
leadership style. It reflects a leader who is passionate about their work and who
does the best they can for the people they work with.
Team or "sound" managers commit to their organization's goals and mission,
motivate the people who report to them, and work hard to get people to stretch
themselves to deliver great results. But, at the same time, they're inspiring figures
who look after their teams. Someone led by a Team manager feels respected and
empowered, and is committed to achieving her goals.

Mouton GRID
Blake and his colleagues added two more leadership styles after
Mouton's death in 1987, although neither appears on the grid itself,
for the reasons explained below.
◦ Paternalistic Management. A Paternalistic manager will jump
between the Country Club and Produce-or-Perish styles. This type
of leader can be supportive and encouraging, but will also guard
their own position – and paternalistic managers don't appreciate
anyone questioning the way they think.
◦ Opportunistic Management. This doesn't appear on the grid
because this style can show up anywhere within it. Opportunistic
managers place their own needs first, shifting around the grid to
adopt whichever style will benefit them. They will manipulate and
take advantage of others to get what they want.

Contingency or Situational
Theories
◦ No leadership style is the best for all times and in all situations.
◦ Leader effectiveness is the result of the situation in which the leader
operates.
◦ Leader should adjust his style according to the nature of the task, the type
of followers and the environment to improve his leadership effectiveness.
◦ While trait and behavior theories do help us understand leadership, an
important component is missing: the environment in which the leader
exists
◦ Contingency Theory adds this additional aspect to our understanding
leadership effectiveness studies. Three key contingency models for
leadership:
◦ Fiedler’s Model
◦ Hersey and Blanchard’s Situational Leadership Theory
◦ Path-Goal Theory

Hersey and Blanchard’s
Situational Leadership Theory
◦ The Hersey-Blanchard Model is a leadership model that focuses on
the ability and willingness of individual employees. Developed by
Paul Hersey and Kenneth Blanchard, the model is also referred to as
the Situational Leadership.
◦ Unlike other leadership models, the Hersey-Blanchard model
disregards the idea that corporations require a single approach to
leadership. Instead, the model proposes a leadership style that
adapts to the unique circumstances of each workplace.
◦ By evaluating each employee’s ability and experience, leaders can
adapt their leadership methods to encourage professional
development in their employees. It results in a progression of
leadership methods that continuously adapt alongside an
employee’s professional development.

In the model, employees are referred to as
“followers,” while managers are referred to as
“leaders.”
The diagram outlines four distinct groups of
followers, each organized by their ability and
willingness to work.
◦Ability refers to a follower’s ability to perform their
job successfully with a combination of skills and
experience.
◦Willingness refers to followers who are motivated
to take on a task and have the confidence to
carry out their responsibilities.

Based on the Hersey-Blanchard model, the four groups
of followers are:
1. Unable and Unwilling (D1)
D1 followers are unable to complete their tasks because
they lack the proper skills to succeed. They are also
unmotivated and lack conﬁdence in their abilities.
2. Unable and Willing (D2)
D2 followers are unable to complete their tasks, usually
due to a lack of skills and experience. However, they are
still willing to try and attempt the task. It exempliﬁes new
employees that are motivated to succeed but lack
adequate knowledge and ability.

3. Able and Unwilling (D3)
D3 followers have the capacity and experience to
complete their tasks but are unwilling to do so. It can be
attributed to a lack of self–conﬁdence in their ability or a
lack of motivation to follow their leader’s guidance.
4. Able and Willing (D4)
D4 followers have the necessary skills and experience, as
well as the conﬁdence in their ability to complete tasks
successfully. The employees have the highest level of
capacity and can complete tasks while also taking
responsibility for their work.

◦Under the Hersey-Blanchard model, a leader must
adapt their leadership methods depending on the
ability and willingness of their followers. For
example, a follower with a D2 development level
should be led diﬀerently than a follower with a D4.
◦Therefore, the Hersey-Blanchard model outlines
four distinct leadership styles, each corresponding
to a speciﬁc level of employee development.

1. Directing (S1)
The S1 leadership style focuses primarily on providing direction to
employees. At the S1 stage, followers lack the ability and willingness
to complete their tasks, and leaders must clearly deﬁne their
responsibilities and ensure they develop the foundational skills to
be successful. Typical S1 leadership methods include simple
instructions, clear explanations, and careful supervision.
2. Coaching (S2)
The S2 leadership style provides followers with both direction and
personal support. In the S2 stage of development, followers are still
unable to perform their tasks but are motivated to succeed.
Therefore, leaders should ensure that followers are developing the
necessary skills but still maintaining their self-conﬁdence.
Ultimately, this results in followers that can take on personal
responsibility for their tasks.

3. Supporting (S3)
The S3 leadership style focuses on supporting followers
and less emphasis on providing direction. At the S3
stage, the follower has already developed the necessary
skills to complete their tasks. Therefore, the leader
should focus on providing feedback and support to
motivate the employee and encourage greater
development.
4. Delegating (S4)
The S4 leadership style involves minimal direction and
support, as the follower is already capable of performing
their tasks independently. At the S4 level, the leader
should provide support when needed but also provide
the follower with autonomy over their responsibilities.

Fiedler’s Contingency
Theory
Fiedler’s Contingency Theory is one of the first formalized
management theories to demonstrate the importance of
selecting leaders based on group goals and dynamics.
Fred Edward Fiedler (1922-2017) was born in Vienna, Austria.
In order to achieve group effectiveness, the Contingency
Model requires the following three-step process:
1. Assess a leader’s leadership style;
2. Assess the situation that a leader faces; and
3. Match the situation with the leader’s leadership style.
In order to assess a leader’s leadership style, you must first
understand how a LPC scale works. Then, after analyzing
LPC scale results, you can determine a leader’s leadership
style.

How a Least Preferred Coworker
(LPC) Scale Works: Assessing
Leadership Styles
◦The way the LPC scale works is a leader is asked to think
of their least preferred coworker and rate them on
numerous bipolar adjectives. For an example of one
adjective, you could select a value between one for
“unkind” and eight for “kind” on an eight-point scale of
“kindness.”
◦After the full scale has been completed, the values are
totaled to give an LPC score, which is then compared to
different ranges to tell the individual their leadership style.
The three different leadership styles are:
1.Relationship-oriented;
2.Task-oriented; or
3.Somewhere in-between.

Understanding Leadership Styles
from LPC Scale Results
Individuals who have a high LPC score, relationship-oriented
leaders, are able to separate the coworker’s personality from poor
work performance; that is, they believe someone can perform
poorly at work and still have good personality traits. They:
• Are more concerned with establishing good interpersonal
relations;
• Are somewhat more considerate;
• Tend to be lower in anxiety;
• Get along better with one another;
• Are more satisfied to be in a group;
• Derive satisfaction from successful interpersonal relationships and
enjoy groups regardless of task success; and
• Gain self-esteem through recognition by others.

Understanding Leadership Styles
from LPC Scale Results
Individuals who have a low LPC score, task-oriented leaders,
link a coworker’s personality characteristics to their poor
work performance; that is, they believe someone who
performs poorly has negative underlying personality traits.
They:
• Are more concerned with the task;
• Are more punitive toward poor coworkers;
• Are more efficient and goal-oriented;
• Derive satisfaction from task performance and enjoy
groups to a greater degree when they are successful; and
• Gain self-esteem through successful performance of the
task.

Assessing the Situation
Fiedler states that there are three variables that should be considered.
1. The leader’s position power: “The potential power which the organization provides
for the leader’s use”;
2. The structure of the task, including:
1. “The degree to which the correctness of the solution or decision can be
demonstrated” (i.e. decision verifiability),
2. “The degree to which the requirements of the task are clearly stated or
known” (i.e. goal clarity),
3. “The degree to which the task can be solved by a variety of procedures (i.e.
goal path multiplicity), and
4. “The degree to which there is more than one correct solution (i.e. solution
specificity); and
3. The interpersonal relationship between the leader and group members, including
the leader’s:
1. Affective relations with group members,
2. Ability to obtain acceptance, and
3. Ability to engender loyalty.

Assessing the Situation
Based on these variables, five types of group situations come
into existence. They include:
1. Informal groups with structured tasks (i.e. structured, weak
position power);
2. Groups with structured tasks and powerful leader positions;
3. Groups within organizations in which leadership is distributed
over at least two levels of management (varying conditions);
4. Creative groups with unstructured tasks and weak leader
position power; and
5. Groups with unstructured tasks and powerful leaders.

Group Situation
Leader-Member
Relations Leadership Style
Informal groups
with structured
tasks
Good Task-oriented
Moderately poor Relationship-orient
ed
Groups with
structured tasks
and powerful leader
positions
Good Task-oriented
ed
Creative groups
with unstructured
tasks and weak
leader position
power
Good Relationship-orient
ed
Moderately poor Task-oriented
Groups with
unstructured tasks
and powerful
leaders
Good Task-oriented
ed

Fiedler’s Contingency Theory
The results of Fiedler’s studies can be best summarized
by the following:
•When leader-member relations are moderate, a
relationship-oriented leader is best-suited. This is
because member relations are in flux and can
therefore be positively influenced by the more
considerate and personable relationship-oriented
leader.
•When leader-member relations are either poor or
strong, a task-oriented leader is best-suited. This is due
to the task-oriented leader’s objectivity, organization,
and decisiveness.

Path-Goal Theory
Path-Goal Theory developed by Martin Evans and
Robert House, related to the contingency
approach. It extracts the essence of the
expectancy theory of motivation and the Ohio
State leadership research on initiating structure and
consideration.
Path-Goal Theory states that the leader is
responsible for providing followers with the
information, support, or other resources necessary to
achieve their goals.

House’s Path-Goal Theory
Path-goal theory of leadership indicates that a leader is in
charge of clarifying the subordinates about the actions and
behavior; which if followed, will lead to goal attainment. This
theory suggests that the various styles which can be and are
used by the same leader in different situations;
◦ Directive Leadership
A directive leader lets subordinates know what is expected of
them, gives guidance and direction, and schedules work
according to the expectation.
◦ Supportive Leadership
A supportive leader is friendly and approachable. He is
concerned for the subordinate welfare and treating members
as equals.

◦Participative Leadership
A participative leader always consults with
subordinates, asks suggestions, and allows
participation in decision making.
◦Achievement Oriented Leadership
An Achievement oriented leader sets challenging
goals and expects subordinates to perform at high
levels. Encouraging subordinates and showing
confidence in subordinates’ abilities is necessary for
him.

Leaders can change their style or behavior for meeting the
demand of situations. What style should a leader select
depends on a complex analysis of the situation;
• Directive leadership gives greater satisfaction for ambiguous
or stressful tasks when they are highly structured and well
laid out. However; it is likely to be perceived as redundant
among employees with high ability or considerable
experience.
• For performing structured tasks; supportive leadership results
in high performance and satisfaction from the employees.
• Participating leadership could fail the employees are not
experienced and skilled. Also if the employees’ number is
large, it may slow down the decision-making system and
therefore the production and performance.
• Achievement-oriented leadership may be used to
encourage continued high performance, but it could
backfire if the targets are unclear and vague.

Path-Goal Theory: Environmental
characteristics of the workplace.
1.Subordinates’ Characteristics
Important personal characteristics include the subordinates’
perception of their abilities and their locus of control. If
people think that they lack ability; directive leadership is the
preferable method to lead them. If a person has the focus of
control, then the participative leadership is
preferable. Managers may not be able to change the
personal characteristics or the personnel but can shape his
approach of leading and managing by understanding them.
2. Environmental characteristics of workplace
Task structure and workgroup are the two environmental
factors. When the structure is high, directive leadership is less
effective than when the structure is low. The nature of the
work group also affects leadership behavior. The leader must
provide support in the workgroup is not capable of supporting

Change: Definition
◦Any alteration or modification of status quo,
which occurs in the overall work environment of
an organization.
◦ Change is making things different.
“The only thing constant and consistent is a
change.”
“The old order changeth yielding place to new.”

Change-meaning
◦Organizational change is the process by which
organizations move from their current state to some
desired state to increase their effectiveness.
◦To find new or improved ways of using resources and
capabilities in order to increase an organization’s
ability to create value and improve returns to its
stakeholders.
◦Change is the coping process of moving from the
present state to a desired state that individuals,
groups and organizations undertake in response to
dynamic internal and external factors that alter
current realities.

Examples of change
◦De-layering to flatter structures,
◦Change to multiple reporting relationships,
◦Jobs designed to grow,
◦Increase in job flexibility,
◦Increased use of technology,
◦Increasing recognition of project and teamwork.
◦Japan has emerged as one of the most powerful
economies of the world.
◦China has emerged as a super economy of the
world.

Un-Planned Change
◦ A group of housekeeping employees who work for a small hotel
confronted the owner, “its hard for most of us to maintain 7-4 work
hours”, said their spokeswoman. “Each one of us has significant
family and personal responsibilities. And rigid hours don’t work for
us. We are going to begin looking for someplace else to work if
you don’t set up flexible work hours. ” The owner listened
thoughtfully to the group’s ultimatum and agreed to its request.
The next day, a flexi-plan for these employees was introduced.

Planned Change
◦ A major automobile manufacturer spent several billion dollars to
install state of the art robotics. One area that would receive the
new equipment was quality control, where sophisticated
computers would significantly improve the company’s ability to
find and correct defects. Because the new equipment would
dramatically change the jobs in the quality-control area, and
because management anticipated considerable employee
resistance to it, executives were developing a program to help
people become familiar with it and deal with any anxieties they
might be feeling.

Planned Change
Goals of Planned Change-
◦ It seeks to improve the ability of the organization to adapt to
changes in its environment.
◦ It seeks to change employee behavior.
Change Agents are responsible for managing change activities.
They see a future for organisations that others have not identified,
and they are able to motivate, invent and implement this vision.
Change agents can be managers or non-managers, current or
new employees, or outside consultant.

Resistance to change
◦The main reasons for some organizations’
inability to change is organizational
inertia, the tendency of an organization to
maintain the status quo.
Sources of Resistance to change:
◦Organizational level
◦Individual level

Individual Sources
◦Habit: We rely on our habits or programmed responses in
life. But when confronted with change, this tendency to
respond in our accustomed way becomes a source of
resistance.
◦Security: People with high need of security are likely to
resist change because it threatens their feeling of safety.
◦Economic factor: Changes in job tasks or work routines
can result in economic fear in workers if they are
concerned that they wont be able to perform the new
tasks or routines to their previous standards.
◦Fear of the unknown
◦Selective Information processing: People hear what they
want to hear and they ignore information that challenges
the world they have created.

Organizational Sources
◦Structural inertia: organisations have built-in-mechanisms
such as selection processes and formalized regulations-to
produce stability. When an organization is confronted with
change this structural inertia acts as counterbalance to
sustain stability.
◦Limited focus of change: organisations consist of number od
inter-dependent subsystems; limited change in subsystem
can be nullified by larger system.
◦Group Inertia: even if individuals want to change their
behavior, group norms may act as a constraint.
◦Threat to expertise: changes in organizational patterns may
threat the expertise of spcialised groups.
◦Threat to existing power relations: Any redistribution of
decision-making authority can threaten long established
power relationships within the organization.

Overcoming Resistance to Change
◦Education and communication: Communicating the
logic of change can fight the effects of
miscommunication and poor communication; if
employees receive full facts and clear information,
resistance would be less.
◦Participation and involvement: Assuming participants
have the expertise to make a meaningful contribution,
their involvement can reduce resistance, obtain
commitment, and increase the quality of change
decisions.
◦Develop positive relationships: If managers are able to
facilitate positive relationships, they may be able to
overcome resistance to change even among those who
ordinarily don’t like changes.

Overcoming Resistance to Change
◦ Implementing change fairly: Its important that employees see positively
the reason for change and perceive its implementation as fair and
consistence.
◦ Manipulation and Cooptation: Twisting facts to make them more
attractive, withholding information and creating false rumors to get
employees to accept changes is manipulation. Cooptation seeks to buy
off the leaders of resistance groups by giving them a key role, seeking
their advise for endorsement.
◦ Selecting people/teams who accept changes: People who are open to
experience, take a positive attitude towards change, are willing to take
risk, and are flexible in their behavior should be selected for the
organisations.
◦ Coercion: Coercion is the application of direct threats or force on the
resistance. Examples of threats are transfers, loss of promotion, negative
performance evaluation, poor letter of recommendation etc.

Approaches to managing
changes
◦Lewin’s three –step model
◦Kotter's Eight step plan to implement
change
◦Action research
◦Organizational development

Force Field theory
According to Kurt Lewin:
"An issue is held in balance by the interaction of two opposing sets
of forces - driving forces and the restraining forces".
◦ Driving forces are those factors that put pressure for a particular
change
◦ Restraining forces are those factors that attempt to maintain the
status quo and pressure against a change

Force Field theory
◦ At any given point in time, the two types of forces push in
opposite directions, leading to an equilibrium that defines
current conditions, or the status quo.
◦ In order to change the status quo to the desired condition,
it is therefore necessary to increase the driving forces, to
decrease the restraining forces, or to do both.
◦ Though managers tend to think in terms of increasing the
driving forces, such increases, according to Lewin, are
highly likely to provoke a corresponding increase in the
resistant forces.
◦ Therefore, the focus should be on reducing the restraining
forces.

KURT LEWIN’S CHANGE MODEL
Developed a three stage model of
planned change.
◦Unfreezing
◦Changing
◦Refreezing
Change entails moving from one
equilibrium point to another.

Change Model- Example
◦Take the example of a man who smokes cigarettes
and wants to quit. The three stage model says that
he must first unfreeze the old behaviour of smoking
that is, believe that cigarette smoking is bad for him
and that he should stop smoking. Next, he must
move, that is, change his behaviour from being a
smoker to being a non-smoker. Finally, the
non-smoking behaviour must become permanent –
not smoking becomes the new equilibrium point.
Refreezing the desired behaviour requires establishing
a new field of forces to support the new behaviour.

Change Model
Stage 1: Unfreezing:
◦ Creating motivation and readiness to change through
◦ Disconfirmation or lack of confirmation.
◦ Creation of guilt or anxiety.
◦ Provision of psychological safety.
◦ Stage 2: Changing through cognitive restructuring:
◦ Helping the client to see things, judge things, feel things, and react to
things differently based on a new point of view obtained through
◦ Identifying with a new role model, mentor, etc.
◦ Scanning the environment for new relevant information.
◦ Stage 3: Refreezing:
◦ Helping the client to integrate the new point of view into:
◦ The total personality and self concept.
◦ Significant relationships.

Kotter’s Eight Step Plan for
Implementing Change
Kotter began to list common mistakes that managers make
when trying to initiate change.
◦ They may fail to create a sense of urgency about the
need for change,
◦ to create a coalition for managing the change process,
◦ to have a vision for change and effectively communicate
it,
◦ to remove obstacles that could impede the vision’s
achievement,
◦ to provide short-term and achievable goals and
◦ to anchor the changes into organizational culture.

Implementing Change
◦ Step 1: Create Urgency
For change to happen, it helps if the whole company really wants it. Develop a
sense of urgency around the need for change. This may help you spark the initial
motivation to get things moving.
◦ Step 2: Form a Powerful Coalition
Convince people that change is necessary. This often takes strong leadership
and visible support from key people within your organization. Managing change
isn't enough – you have to lead it.
◦ Step 3: Create a Vision for Change
When you ﬁrst start thinking about change, there will probably be many great
ideas and solutions ﬂoating around. Link these concepts to an overall vision that
people can grasp easily and remember.
◦ Step 4: Communicate the Vision
What you do with your vision after you create it will determine your success.

Implementing Change
◦ Step 5: Remove Obstacles
If you follow these steps and reach this point in the change process, you've been
talking about your vision and building buy-in from all levels of the organization.
◦ Step 6: Create Short-Term Wins
Nothing motivates more than success. Give your company a taste of victory early
in the change process.
◦ Step 7: Build on the Change
Kotter argues that many change projects fail because victory is declared too
early. Real change runs deep. Quick wins are only the beginning of what needs
to be done to achieve long-term change.
◦ Step 8: Anchor the Changes in Corporate Culture
Finally, to make any change stick, it should become part of the core of your
organization. Your corporate culture often determines what gets done, so the
values behind your vision must show in day-to-day work.

Action Research
Action research is a change process based on the systematic collection
of data and selection of change action based on what the analyzed
data indicate. Its value is in providing a scientific methodology for
managing planned change. It has five steps:
◦ Diagnosis: it is the it begins by gathering information about problems,
concerns and needed changes from the members of the organization.
The change agent asks questions, reviews record, takes interviews from
employees and listens to their concerns.
◦ Analysis: The change agent synthesizes the information into primary
concerns, problem areas and possible action.
◦ Feedback: requires sharing with employees what has been found from
the first and second step. Employees with the help of change agents
make action plans.
◦ Action: the employees and change agents carry out the plan of action
that has been identified to correct a problem.
◦ Evaluation: of the actions plan effectiveness, using the initial data
gathered as a benchmark.

Organisational Development
◦Organizational development can be defined
as an objective-based methodology used to
initiate a change of systems in an entity.
◦Organizational development is achieved
through a shift in communication processes or
their supporting structure.
◦Studying the behavior of employees enables
professionals to examine and observe the
work environment and anticipate change,
which is then effected to accomplish sound
organizational development.

Beneﬁts of Organizational
Development
1. Continuous development
Organizational development creates a constant
pattern of improvement in which strategies are
developed, evaluated, implemented, and
assessed for results and quality.
2. Increased horizontal and vertical
communication
Of considerable merit to organizational
development is effective communication,
interaction, and feedback in an organization. An
efficient communication system aligns employees
with the company’s goals, values, and objectives.

Development
3. Employee growth
Organizational development places significant emphasis on effective
communication, which is used to encourage employees to effect
necessary changes. Many industry changes require employee
development programs.
4. Enhancement of products and services
Innovation is one of the main benefits of organizational development
and is a key contributing factor to the improvement of products and
services. One approach to change is employee development – a critical
focal point is a reward for motivation and success.
Successful engagement of employees leads to increased innovation and
productivity. Through competitive analysis, consumer expectations, and
market research, organizational development promotes change.

Development
5. Increased profit margins
Organizational development influences the bottom line in
many different ways. As a result of increased productivity
and innovation, profits and efficiency increase. Costs come
down because the organization can better manage
employee turnover and absenteeism. After the alignment of
an entity’s objectives, it can focus entirely on development
and product and service quality, leading to improvements in
customer satisfaction.

Organizational Development
Process
A conventional approach in the organizational development
process is the action research model.
1. Problem diagnosis
The method of diagnosis usually takes the form of data gathering,
assessment of cause, as well as an initial investigation to ascertain
options.
2. Feedback and assessment
The feedback and assessment step often involves proper
investigation of identified problems so that there is a deep
understanding of the challenge at hand. This can include an
appraisal of documents, focus groups, customer or employee
surveys, hiring consultants, and interviewing current employees.
Information gathered is used to re-evaluate the challenges in the
first step.

Process
3. Planning
Once an organization defines and understands its
challenge, an action plan is put together. The plan lays
down all the intervention measures that are considered
appropriate for the problem at hand. Usually, the measures
include such things as training seminars, workshops, team
building, and changing the makeup or structure of teams.
4. Intervention and implementation
As an example, if training classes are preferred over other
methods, test results will form the basis upon which the
training process is evaluated. The objective at this point is to
ensure the required changes take place. If that is not the
case, feedback is assessed and used to bring about the
required change.

Process
5. Evaluation
As soon as the intervention plan is complete, the outcome of the
change in the organization is assessed. If the required change
does not take place, the organization looks for the cause.
Adjustments are made to ensure the obstacle is eliminated.
6. Success
Success denotes that the desired change took place. A proper
plan and eﬃciency standards are put in place to ensure that the
new switch is sustainable. Ongoing monitoring is needed to
ensure that implemented changes last. Furthermore, as markets
and organizations change, new problems can arise, leading to
the push for further development. Great organizations evolve
continuously.

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