1. 13-1 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.

2. C HAPTER T HIRTEEN Leadership and Change

3. 13-3 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Beer’s Model of Organizational Change D = followers’ dissatisfaction M = model for change P = process R = resistance C = amount of change C = D x M x P > R

4. Example of a Vision Statement We believe that an organization will only be as good as its leaders. Our vision is to increase our clients’ productivity, profitability, and shareholder value by enhancing their ability to attract, develop, promote, and retain leadership talent.

5. 13-5 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. The Components of Organizational Alignment Vision Structure Span of control Team composition Hierarchy Systems Accounting HR Capabilities Technical Leadership Culture Norms Shared values Sales IT

6. 13-6 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. The Expectation-Performance Gap Actual performance Time Performance Change initiative implemented Status quo Expectations Gap

7. 13-7 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Common Losses with Change Loss of:Possible Leader Actions PowerDemonstrate empathy, good listening skills, and new ways to build power. CompetenceCoaching, mentoring, training, peer coaching, job aids, and so forth. RelationshipsHelp employees build new relationships before change occurs, or soon thereafter. RewardsDesign and implement new reward system to support change initiative. IdentityDemonstrate empathy; emphasize value of new roles. M. Beer, Leading Change (Boston: Harvard Business School Press, 1988).

8. 13-8 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Reactions To Change Time Emotional level Anger Shock Rejection Acceptance Top leaders Middle managers Individual contributors

9. 13-9 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. The Rational Approach To Organization Change and the Interactional Framework Leader Followers Situation Environmental scans Vision Goals Change plan Systems vs. siloed thinking Leadership and management capabilities Crisis Consumer preferences Market conditions Societal shifts Political and legal challenges Competitive Organizational structure Organizational systems Organization culture Dissatisfaction resistance SARA model Loss of: – Power – Competence – Identity – Rewards – Relationships Technical/functional capabilities

10. 13-10 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Four Leader Behaviors of Path- Goal Theory Directive Supportive Participative Achievement-oriented

11. 13-11 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Burns’s Forms of Leadership Transactional leadership occurs when leaders and followers are in an exchange relationship in order to get needs met. Transformational leadership serves to change the status quo by appealing to followers’ values and their sense of higher purpose.

12. 13-12 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Factors Pertaining to Charismatic Leadership and the Interactional Framework Leader FollowersSituation Vision Rhetorical skills Image and trust building Personalized leadership Crisis Task interdependence Identification with the leader and the vision Heightened emotional levels Willing subordination to the leader Feelings of empowerment Outcomes: Social or cultural revolutions Higher levels of effort Greater follower satisfaction Increased group cohesiveness

13. 13-13 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. A Leaders’ Vision Of the Future Can Align Efforts and Help Groups Accomplish More Groups that lack vision Groups with vision