Management

1
Management

• Chapter 18
• Change Leadership

2
Planning Ahead

• What are the challenges of strategic leadership
  and innovation?
• What is the nature of organizational change?
• How can planned organizational change be managed?
• What is organization development?
• How can stress be managed in a change environment?

3
What are the challenges of strategic leadership
and innovation?

• Strategic leadership creates the capacity for
  ongoing strategic change.
• Components of strategic leadership
• Determining the organizations purpose or vision.
• Exploiting and maintaining the organizations
  core competencies.
• Developing the organizations human capital.
• Sustaining an effective organizational culture.
• Emphasizing and displaying ethical practices.
• Establishing balanced organizational controls.

4
What are the challenges of strategic leadership
and innovation?

• Sustainable competitive advantage relies on
  creativity and innovation.
• Creativity is the generation of a novel idea or
  unique approach to solving problems or crafting
  opportunities.
• Innovation is the process of creating new ideas
  and putting them into practice.

5
What are the challenges of strategic leadership
and innovation?

• Two forms of innovation
• Process.
• Results in better ways of doing things.
• Product.
• Results in the creation of new or improved goods
  and services.
• Innovations require invention and application.
• Invention.
• Act of discovery.
• Development of new ideas.
• Application.
• Act of use.
• Implementation of new ideas.

6
What are the challenges of strategic leadership
and innovation?

• Leadership responsibilities for the innovation
  process
• Imagining.
• Designing.
• Experimenting.
• Assessing.
• Scaling.

7
What are the challenges of strategic leadership
and innovation?

• Four steps of the product innovation process
• Idea creation.
• Initial experimentation.
• Feasibility determination.
• Final application.

8
What are the challenges of strategic leadership
and innovation?

• In highly innovative organizations
• Corporate strategy and culture should
• Emphasize an entrepreneurial spirit.
• Expect innovation.
• Accept failure.
• Be willing to take risks.
• Organization structure should
• Be organic.
• Have lateral communications.
• Use cross-functional teams and task forces.

9
What are the challenges of strategic leadership
and innovation?

• In highly innovative organizations
• Top management should
• Understand the innovation process.
• Be tolerant of criticism and differences of
  opinion.
• Take all possible steps to keep goals clear.
• Maintain the pressure to succeed.
• Break down barriers to innovation.
• Staffing should fulfill five critical innovation
  roles
• Idea generators.
• Information gatekeepers.
• Product champions.
• Project managers.
• Innovation leaders.

10
What is the nature of organizational change?

• Change leader.
• A change agent who takes leadership
  responsibility for changing the existing pattern
  of behavior of another person or social system.
• Change leadership.
• Forward-looking.
• Proactive.
• Embraces new ideas.

11
What is the nature of organizational change?

• Top-down change.
• Strategic and comprehensive change that is
  initiated with the goals of comprehensive impact
  on the organization and its performance
  capabilities.
• Driven by the organizations top leadership.
• Success depends on support of middle-level and
  lower-level workers.

12
What is the nature of organizational change?

• Bottom-up change.
• The initiatives for change come from any and all
  parts of the organization, not just top
  management.
• Crucial for organizational innovation.
• Made possible by
• Employee empowerment.
• Employee involvement.
• Employee participation.

13
What is the nature of organizational change?

• Integrated change leadership.
• Successful and enduring change combines
  advantages of top-down and bottom-up approaches.
• Top-down
• Breaks up traditional patterns.
• Implements difficult economic adjustments.
• Bottom-up
• Builds capability for sustainable change.
• Builds capability for organizational learning.

14
What is the nature of organizational change?

• Transformational and incremental change.
• Unplanned change.
• Response to unanticipated events.
• Good leaders act on opportunities for reactive
  change.
• Planned change
• Aligning the organization with anticipated future
  challenges.
• Activated by proactive leaders who are sensitive
  to performance gaps.
• Transformational change ? major and comprehensive
  redirection.
• Incremental change ? adjusting existing systems
  and practices.

15
What is the nature of organizational change?

• How to lead transformational change
• Establish a sense of urgency for change.
• Form a powerful coalition to lead the change.
• Create and communicate a change vision.
• Empower others to move change forward.
• Celebrate short-term wins and recognize those
  who help.
• Build on success align people and systems with
  new ways.
• Stay with it keep the message consistent
  champion the vision.

16
What is the nature of organizational change?

• External forces for change
• Globalization.
• Market competition.
• Local economic conditions.
• Government laws and regulations.
• Technological developments.
• Market trends.
• Social forces and values.
• Internal forces for change
• Arise when change in one part of the system
  creates the need for change in another part of
  the system.
• May be in response to one or more external
  forces.

17
What is the nature of organizational change?

• Organizational targets for change
• Tasks
• People
• Culture
• Technology
• Structure

18
How can planned organizational change be managed?

• Phases of planned change
• Unfreezing
• The phase in which a situation is prepared for
  change and felt needs for change are developed.
• Changing
• The phase in which something new takes place in
  the system, and change is actually implemented.
• Refreezing
• The phase of stabilizing the change and creating
  the conditions for its long-term continuity.

19
How can planned organizational change be managed?

• Force-coercion strategy of change.
• Uses power bases of legitimacy, rewards and
  punishments to induce change.
• Relies on belief that people are motivated by
  self-interest.
• Direct forcing and political maneuvering.
• Produces limited and temporary results.
• Most useful in the unfreezing phase.

20
How can planned organizational change be managed?

• Rational persuasion strategy of change.
• Bringing about change through persuasion backed
  by special knowledge, empirical data, and
  rational argument.
• Relies on expert power.
• Relies on belief that reason guides peoples
  decisions and actions.
• Useful in the unfreezing and refreezing phases.
• Produces longer-lasting and internalized change.

21
How can planned organizational change be managed?

• Shared power strategy of change.
• Engages people in a collaborative process of
  identifying values, assumptions, and goals from
  which support for change will naturally emerge.
• Time consuming but likely to yield high
  commitment.
• Involves others in examining sociocultural
  factors related to the issue at hand.
• Relies on referent power and strong interpersonal
  skills in team situations.
• Relies on belief that people respond to
  sociocultural norms and expectations of others.

22
How can planned organizational change be managed?

• Reasons for people resisting change
• Fear of the unknown
• Disrupted habits
• Loss of confidence
• Loss of control
• Poor timing
• Work overload
• Loss of face
• Lack of purpose

23
How can planned organizational change be managed?

• Methods for dealing with resistance to change
• Education and communication
• Participation and involvement
• Facilitation and support
• Facilitation and agreement
• Manipulation and co-optation
• Explicit and implicit coercion

24
What is organization development?

• Organization development (OD) is a comprehensive
  approach to planned organizational change that
  involves the application of behavioral science in
  a systematic and long-range effort to improve
  organizational effectiveness.

25
What is organization development?

• Organization development goals
• Outcome goals focus on task accomplishments.
• Process goals focus on the way people work
  together.
• OD seeks to develop the organization members
  capacity for self-renewal.
• OD is committed to change through freedom of
  choice, shared power, and self-reliance.
• OD takes advantage of knowledge about human
  behavior in organizations.

26
What is organization development?

• The organization development process
• Establish a working relationship.
• Diagnosis.
• Intervention.
• Evaluation.
• Achieve a terminal relationship.

27
What is organization development?

• Action research
• The process of systematically collecting data on
  an organization, feeding it back to the members
  for action planning, and evaluating results by
  collecting more data and repeating the process as
  necessary.
• Is initiated when someone senses a performance
  gap.

28
What is organization development?

• Steps in the action research process
• Problem sensing.
• Data gathering.
• Data analysis and feedback.
• Action planning.
• Action implementation.
• Evaluation and follow-up.

29
What is organization development?

• Individual OD interventions
• Sensitivity training (T-groups)
• Management training
• Role negotiation
• Job redesign
• Career planning

30
What is organization development?

• Team OD interventions
• Team building
• Process consultation
• Inter-group team building

31
What is organization development?

• Organization-wide OD interventions
• Survey feedback
• Confrontation meeting
• Structural redesign
• Management by objectives (MBO)

32
How can stress be managed in a change environment?

• Stress
• A state of tension experienced by individuals
  facing extraordinary demands, constraints, or
  opportunities.
• Stressors
• Things that cause stress
• Originate in work, personal, and nonwork
  situations.
• Have the potential to influence work attitudes,
  behavior, job performance, and health.

33
How can stress be managed in a change environment?

• Work factors as potential stressors
• Includes
• Excessively high or low task demands.
• Role conflicts or ambiguities.
• Poor interpersonal relationships.
• Too slow or too fast career progress.
• Work-related stress syndromes
• Set up to fail.
• Mistaken identity.

34
How can stress be managed in a change environment?

• Personal factors as potential stressors
• Includes needs, capabilities, and personality.
• Stressful behavior patterns of the Type A
  personality
• Always moving, walking, and eating rapidly.
• Acting impatient, hurrying others, disliking
  waiting.
• Doing, or trying to do, several things at once.
• Feeling guilty when relaxing.
• Trying to schedule more in less time.
• Using nervous gestures such as a clenched fist.
• Hurrying or interrupting the speech of others.

35
How can stress be managed in a change environment?

• Nonwork factors as potential stressors
• Includes
• Family events.
• Economics.
• Personal affairs.
• Spill-over effect on the stress an individual
  experiences at work.

36
How can stress be managed in a change environment?

• Consequences of stress
• Constructive stress.
• Acts as a positive influence.
• Can be energizing and performance enhancing.
• Destructive stress.
• Acts as a negative influence.
• Breaks down a persons physical and mental
  systems.
• Can lead to job burnout and/or workplace rage.

37
How can stress be managed in a change environment?

• Personal wellness
• The pursuit of personal and mental potential
  though a personal health-promotion program.
• A form of preventative stress management.
• Enables people to be better prepared to deal with
  stress.