1. Chapter 7 Leading Change
ORGANIZATIONAL CHANGE: STRATEGIES AND METHODS
Craig W. Fontaine, Ph.D.
Chapter 7
Leading Change

2. Learning Objectives Define effective leadership.
Explore the difficulty of enacting effective leadership.
Delineate the tasks associated with leading change.
Analyze the requirements for developing future leaders in an organization.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

3. Opening Case - Cisco Systems
1. What strategies did John Cambers employ that helped Cisco Systems survive the “dot com” bubble burst in 2001?
2. What were John Chambers, CEO of Cisco Systems, thoughts and feeling about the need to collaborate?
3. How did Cisco System top executive’s response to Chambers forcing collaboration onto them? How did Chambers act in response?
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4. Change Leadership
Leadership: actions that mobilize adaptive behavior within an organization
Formal leader: an individual who is granted authority, usually based on hierarchical position, in an organization
“Think of leadership as an intervention into the organization designed to impact the behaviors of others”
Effective leadership can be exercised at all levels of an organization”
“Effective change leadership mobilizes adaptive behavior on the part of organizational members”
“ “Formal leaders have important roles to play as decision-makers, resource-allocators, and occasionally even company symbols”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

5. Core Tasks of Change Leadership
Develop and articulate clear and consistent sense
of purpose and direction for the organization
Establish demanding performance expectations
Enable upward communication
Forge an emotional bond between employees and the organization
Develop future change leaders
“The exercise of power is not the same as leadership.”
“Strong, demanding leaders don’t always succeed at leading change.”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

6. Providing Direction
Organizational purpose: a clearly articulated and well defined ambition for the organization
“A widespread and common understanding of organizational purpose allows employees to exercise greater autonomy in moving the change effort in its desired direction. ”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

7. Articulating a clear purpose helps…
Creates a common sense of direction and goals and allows decentralized decision making and greater autonomy over enacting that purpose.
Autonomy places decision‐making authority in the hands of employees who are best able to respond, and respond quickly, to a dynamic environment.
Additionally, common purpose enhances the ability of an organization to achieve required levels of coordination and teamwork.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

8. Goal Setting
Stretch goals: clearly articulated and challenging performance expectations
“Effective change efforts are built on a drive to achieve outstanding performance”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

9. Bi-directional Communication
Upward communication: the flow of information from lower to higher hierarchical levels in an organization
“Effective leadership involves listening, engaging, and learning as well as communicating ”
“Particularly in situations of strategic renewal and change, formal leaders need to learn about how their effects are proceeding by mutual engagement with employees at all organizational levels ”
“Take specific steps to ensure that communications is moving both upward and downtown”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

10. Create Commitment
Emotional bond: a relationship between individuals and their organizations based on a deeply felt commitment to the organization’s purpose and goals
“If employees are committed to their organization emotionally as well as instrumentally, they are more likely to engage in required behavioral changes”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

11. Leadership Development Mistakes
Practice
Problem
Rapid upward mobility
Prevents individuals from having to live with consequences of their actions and learning from their successes and failures
Movement within a single function
Individuals never gain knowledge of total organization, particularly of how subunits fit together
Short-term performance pressures
Individuals get better at tactical and operational management rather than at long-term strategic and visionary leadership
Recruitment for specific technical skills
Internal employee pool is
thin on individuals with real
leadership potential
“Inadequate attention to leadership development can ruin a company, even an industry.”
“Rapid upward movement of personnel through the hierarchy can work to hurt
an organization’s ability to develop effective leadership.”
“Dominating individual leaders can actually hurt an organization’s ability to change.”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

12. More on Leadership (Not in the Textbook)

13. What Is Leadership? Leadership
The ability to influence a group toward the achievement of goals.
Management
Use of authority inherent in designated formal rank to obtain compliance from organizational members.

14. Leadership vs. Management
Managers
Work on the system
Create opportunities
Seek opportunities
Change organizational rules
Provide a vision to believe in and strategic alignment
Motivate people by satisfying basic human needs
Inspire achievement and energize people
Coach followers, create self-leaders and empower them
Work in the system
React
Control risks
Enforce organizational rules
Seek and then follow direction
Control people by pushing them in the right direction
Coordinates efforts
Provide instructions

15. Early Leadership – Trait Theories
Trait Theories (1920s-30s)
Early on, it was thought that leaders were born with inherent physiological traits
Age
Height
Eye Color
Later research identified seven traits non-physical traits associated with successful leadership……

16. Seven Traits Associated with Leadership
Source: S. A. Kirkpatrick and E. A. Locke, “Leadership: Do Traits Really Matter?” Academy of Management Executive, May 1991, pp. 48–60; T. A. Judge, J. E. Bono, R. llies, and M. W. Gerhardt, “Personality and Leadership: A Qualitative and Quantitative Review,” Journal of Applied Psychology, August 2002, pp. 765–780.

17. Trait Theories – Summary of findings
Research found:
No universal traits that predict leadership in all situations.
Unclear evidence of the cause and effect of relationship of leadership and traits.
Traits are a better predictor of the indealized appearance of leaders than determing effective and ineffective leaders.

18. Behavioral Theories (Many Studies)
Focus was on Leadership style:
Consideration
(Concern for people)
Initiating Structure
(Concern for production)
Leaders show subordinates they trust, respect, and care about them
Managers look out for the well-being of their subordinates
Do what they can to help subordinates feel good and enjoy the work they perform
Leaders take steps to make sure that work gets done, subordinates perform their work acceptably, and the organization is efficient and effective
Managers assign tasks to groups and let subordinates know what is expected of them

19. The Managerial Grid
Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November–December 1964, p Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.

20. Contingency Theories of Leadership
The Fiedler Model
Proposes that effective group performance depends upon the proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence.
Assumptions:
A certain leadership style should be most effective in different types of situations.
Leaders do not readily change leadership styles.
Matching the leader to the situation or changing the situation to make it favorable to the leader is required.

21. Fiedler’s Model: Defining the Situation
Leader-Member Relations
The degree of confidence, trust, and respect subordinates have in their leader.
Task Structure
The degree to which the job assignments are procedure driven.
Position Power
Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.

22. Findings from Fiedler Model

23. Contingency Theories… (cont’d)
Hersey and Blanchard’s Situational Leadership Theory (SLT)
Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers’ readiness.
Acceptance: leadership effectiveness depends on whether followers accept or reject a leader.
Readiness: the extent to which followers have the ability and willingness to accomplish a specific task.
Leaders must relinquish control over and contact with followers as they become more competent.

24. Hersey & Blanchard’s Model
Source: Reprinted with permission from the Center for Leadership Studies. Situational Leadership® is a registered trademark of the Center for Leadership Studies. Escondido, California. All rights reserved.

25. Contingency Theories… (cont’d)
Path-Goal Model
States that the leader’s job is to assist his or her followers in attaining their goals and to provide direction or support to ensure their goals are compatible with organizational goals.
Leaders assume different leadership styles at different times depending on the situation:
Directive leader
Supportive leader
Participative leader
Achievement oriented leader

26. Path-Goal Theory

27. Leader–Member Exchange Theory
Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

28. Leader-Member Exchange Theory

29. Contemporary Views on Leadership
Transactional Leadership
Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.
Transformational Leadership
Leaders who inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements.
Leaders who also are capable of having a profound and extraordinary effect on their followers.

30. Contemporary Views…(cont’d)
Charismatic Leadership
An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways.
Characteristics of charismatic leaders:
Have a vision.
Are able to articulate the vision.
Are willing to take risks to achieve the vision.
Are sensitive to the environment and follower needs.
Exhibit behaviors that are out of the ordinary.

31. Contemporary Views…(cont’d)
Visionary Leadership
A leader who creates and articulates a realistic, credible, and attractive vision of the future that improves upon the present situation.
Visionary leaders have the ability to:
Explain the vision to others.
Express the vision not just verbally but through behavior.
Extend or apply the vision to different leadership contexts.

32. Gender & Leadership
Of the 425 high-level executives evaluated, each by about 25 people, women execs won higher ratings on 42 of the 52 skills measured.
Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November , p. 75.

33. Race & Leadership
Little research comparing white leaders vs. leaders of color
Leaders are effective but leadership style differs
Thailand - close directive supervision
U.S. - democratic participative approach
Mexico - autocratic directive approach
Cultural differences must be considered in managing people from different countries and cultural backgrounds