1. Leadership & Management
Reading for Lesson 8:
Change and Development

2. Lesson 8 Reading Objectives
1. The student will comprehend the concept of organizational change and explain the forces for change.
2.   The student will comprehend the sequence of four change activities that must be performed in order for change to be successful.
3.   The student will comprehend techniques managers can use to facilitate the initiation of change in organizations including idea champions and new-venture teams. 

3. Lesson 8 Reading Objectives
4. The student will comprehend sources of resistance to change.
5. The student will comprehend force field analysis and other implementation tactics that can be used to overcome resistance to change.
6.   The student will comprehend the differences between transactional, charismatic, and transformational leaders.
7.   The student will comprehend which leadership style is best suited to lead organizational change.

4. Lesson 8 Discussion Objectives
1. The student will comprehend techniques managers can use to facilitate the initiation of change in organizations including idea champions and new-venture teams.
2. The student will comprehend sources of resistance to change.
3.  The student will comprehend which leadership style is best suited to lead organizational change.

5. Concept of Organizational Change
Defined as adoption of a new idea or behavior by an organization.
Organizations need to continuously adapt to new situations if they are to survive and prosper
By observing external trends, patterns, and needs, managers use planned changed to help organization adapt to external problems and opportunities

6. Forces for Change
Forces may exist in the external environment or within the organization.
Environmental forces include:
Customers
Competitors
Technology
Economic
International arena

7. Forces for Change
Internal forces for change arise from internal activities and decisions by:
Management
Employees
Labor unions
Production inefficiencies

8. Change Activities Sequence
Internal and external forces for change exist
Organization managers monitor these forces and become aware of a need to change
Perceived need triggers initiation of change
Change is then implemented

9. Initiating Change
Develop ideas that solve perceived and communicated needs
Responses may include:
Search for a change to adopt
Process of learning about current developments inside or outside the organization to meet perceived need for change
Search typically uncovers existing knowledge that can be applied or adopted within organization
Create a change to adopt

10. Initiating Change
Creativity is defined as the generation of novel ideas to meet perceived problems.
Creative individuals develop ideas that can be adopted by the organization and are often known for:
Originality
Curiosity
Open-mindedness
Focused approach to problem solving
Persistence
Relaxed and playful attitude
Receptiveness to new ideas.

11. Initiating Change Creative organizational conditions include:
Open channels of communication
Assignment of nonspecialists to problems
Decentralization
Freedom to choose problems
Resources allocated to creative personnel without immediate payoff.

12. Idea Champions and New-Venture Teams
Idea champion. A person who sees the need for, and champions, productive change within the organization.
New ideas must be carried forward for acceptance and implementation.
Four roles in organizational change:
Inventor
Champion
Sponsor
Critic

13. Idea Champions and New-Venture Teams
New-venture team is a unit separate from the rest of the organization--develops and initiates innovations.
Team typically small, loosely structured, and organic
Free of organizational rules and procedures and bureaucracy
New-Venture Fund provides resources from which individuals and groups draw to develop new ideas, products, or businesses.

14. Resistance to Change Employees resist change out of:
Self-interest—believe will lose something of value
Lack of understanding and trust—do not understand intended purpose or distrust management
Uncertainty—lack information; fear of unknown
Different assessments and goals—employees may assess proposed change differently

15. Strategies for Overcoming Resistance
Two approaches:
Analysis of resistance through the force field technique
Use of selective implementation tactics to overcome resistance

16. Strategies for Overcoming Resistance
Force Field Analysis:
Change is a result of competition between driving and restraining forces
Some forces drive it, while others resist
Selectively removing the restraining forces enables driving force to implement the innovation

17. Strategies for Overcoming Resistance
Implementation tactics:
Communication and education
Used when solid information is needed by those resisting change, i.e., new technology or idea
Participation
Involves potential resisters in designing change
Time consuming but pays off in user commitment
Helps managers determine potential problems and differences in perceptions among employees

18. Strategies for Overcoming Resistance
Implementation tactics:
Negotiation
Formal bargaining to win acceptance and approval of change
Coercion
Formal power is applied to force employees to change. Resisters told to accept or lose job
Top management support
Visible support symbolizes importance of the change
Without this support change will probably not happen

19. Leadership Differences
Three types of leadership—transactional, charismatic and transformational
Transactional leaders:
Clarify the role and task requirements of subordinates
Initiate structure
Provide appropriate rewards
Try to meet the social needs of subordinates.

20. Leadership Differences
Transactional leaders:
Excel at management functions
Are hardworking
Are tolerant
Are fair minded.
Stress plans, schedules and budgets

21. Leadership Differences
Charismatic Leaders:
Inspire/motivate people to do more, despite obstacles and personal sacrifice.
State a vision of an imagined future with which employees identify
Shape a corporate value system for which everyone stands
Trust subordinates and earn their complete trust in return.

22. Leadership Differences
Transformational Leaders:
Bring about innovation and create significant change in followers and organization.
Lead changes in the organization's mission, structure, and human resource management.
Focus on intangible qualities
Vision, shared values, ideas to build relationships
Provide common ground to enlist followers in changes.