Chapter 18 - Change Leadership
Strategic Leadership and Innovation
Characterstics of innovative organizations
-Innovative organization mobilize talents and intellectual capital to support innovation
-Managers master at leading innovation process, high innovation companies structure and culture to support innovation
-High innovative companies support a corp. Strategy and culture for innovation. Innovation wanted, failure is accepted company willing to take risks
-Big companies trying to get structural flexibility trying for more organization operation emphasize lateral communication and extensively use cross function teams
• More specific research and development
-High innovation companies top manage supports innovation they know process and tolerant of criticisms and diff. Of opinion use everything to get goal clear and pressure
• Key is allow creative potential of people fully operational
-High innovation companies company support workers for innovation critical innovation roles are
• Idea generators – people create new discovery or external awareness/ both
• Info Gatekeepers – people sever link for people and groups in company and outside sources
• Product Champions – people advocate for change, innovation or adoption of new ideas
• Project managers – people do technical function to keep innovative project on track with resource support
• Innovation leaders – people that encourage and coach other to keep innovative value and goals
Creativity and Innovation
- Creativity generation novel idea or unique approach to solve problems/ crafting opp
- Greatest human asset is creativity that allow to turn tech and resources into process and product the differentiate accomplishment of one company
- Creativity push influence in companies in innovation process making new idea and putting in practice
- Innovation has two forms
o Process innovation
better way of doing things
o Product innovations
Result in creation new/improved good and services
- Manager of both innovation need to be encouragement and support for invention (act of discovery) and application (act of use)
- Managers need to be investing and building new work environment that helps creativity and ongoing stream of new ideas
- Make sure good ideas for new process and products implements
- Full set of responsibility innovation prcess 5 steps made by Gary Hamel wheel of innovation
o Imaging- think new things or communication with others
o Designing – test idea; talk with peers customers and experts; building models
o Experimenting – looking at practicality and financial value through experiments
o Assessing – id pros and cons
o Scaling – putting ideas in work and new product and service in market
- Successful innovation entire process meets real needs of company new idea are not enough they must be relevant, and implement to improve organization performance
- Commercializing Innovation process turning new idea into products or processes increase profits through greater sales or reduced costs
What is stratgic leadership ?
-Peter Senge made Learning Organization full uses people, values and continuously changes and makes them better by experience
-Scholars R.Duane Ireland, and Michael Hitt strategic leadership creates capacity ongoing strategic change
-Strategic leadership are change leader who make learning organizations and keep them competitive even in difficult times
-Goal to make core competency out of success and continuously change
-Change must have strategic and customer driven purpose
Organizational Change
Forces and target for change
- Reasons for change, transformational, or incremental due to external forces such as globalization, market competition, local economy, government laws, tech. development
- Companies environment changes there they should adapt to it however internal forces also causes change.
- When a change for external factor is made it cause the organization to change part of a system which causes internal change
- Common internal changes are for organizational target for change, task people culture and tech
• Tasks – nature of work rep by organization mission and the job designed for workers
• People- attitude and competencies of employees and human resource system that support them
• Culture – value system for companies as whole and norm for guiding people and group behaviour
• Technology – operations and info tech use for job support, design and workflow also integration of people and machine in systems
• Structure- configuring company as complex system include design feature lines of authority and communication
- Companies need to adapt continuously to remain competitive
Transformational and Incremental change
Transformational and Incremental Change
-Some changes occur suddenly depending on the situation these unplanned changes can be bad however they also can be good as it allows to use new work process
-Good managers take advantage of opportunities such as reactive change good job of responding to event after or while they occur
-Great managers aren’t only reactive but they forward thinking and alert to opportunity they give companies leadership that is planned change – making plans that aligns the organization for future challenges
-This allows them to be on alert for performance gaps discrepancy between what they want and what is actually there
-Both changes they react to present to deal with performance gaps that improves the future
-2 types of planned organizational change
• First radical / frame breaking transformational change result major and comprehensive redirection of organization
o Led top and made to change character of company which results in shift of strategies, culture structure and purpose
• Second is incremental change this change bend and nudge current system to align them with problems and opps.
o Focus on building on existing ways with goal improvement. Quality concept of continuous improvement for incremental change
Models of change leadership
-Team member can lead by serving group need for task same idea for change leadership
-Responsibilities are ideally distributed and shared by all manage top – bottom
Top – Down Change
-Top- Down Change: senior management makes changes of impact on organization and performance
-70 % big changes fail due to poor implementation success is determined by willingness of middle and lower level workers to support top managers initiatives
-Changes or initiatives from top run risk as lower level worker see it insensitive to needs of workers, or if it give excessive resistance and insufficient commitment to change therefore change must be earn support of others throughout organization
Bottom- Up Change
-Bottom up Change change initiatives come at all level of company
-Essential to company innovation useful for adapting tech and operation which change requirement of work
-This occurs as management commitments to empower, involve, and participate
Integrated Change Leadership
-Successful and enduring change leadership harness advantage of top – down and bottom – up changes
-Top down may be needed to break patterns and implement hard economic adjustments bottom up build initiatives to build capability to survive change and organization learning
Change Leaders
- Change leader is change agent take leadership responsibility for changing pattern of people or social system
- Manager’s job to act as change agent meaning alert to situation, people’s needing change, open to idea and opp. Ready to support implementation of new ideas
- There is change leaders vs. status quo managers
Stress and Stress management
Stress management stratigies
Stress Management Strategies:
Best things is to not let stress reach to an excessive level in the first place. Stressors from personal or non-work factors must be identified in order to minimize or prevent the stress.
Personal Wellness: is the pursuit of one’s full potential through a personal-health promotion program. Lifestyle that reflects a true commitment to health.
Consquences of stress
Non-work factors: emotional stress from family, economic/financial status and personal affairs all can affect ones work and add to the stress of work-life conflicts.
Consequences of Stress: With just enough stress, performance is optimized.
Constructive Stress: sometimes called eustress. Acts in a positive way for an individual and/or the organization. It occurs in moderation and proves energizing and performance enhancing. The stress is to encourage increased effort, stimulate creativity, and enhance diligence in ones work while not overwhelming the individual and causing negative outcomes.
However, achieving the “right” amount of stress is difficult.
Destructive stress: sometimes called distress. Acts in a negative way for an individual and/or organization. It occurs as intense or long-term stress that overloads and breaks down a person’s physical and mental systems. Destructive stress can lead to a job burnout. A job burnout is a form of physical and mental exhaustion that can be incapacitating both personally and in respect to ones work. Productivity can suffer as people react to very intense stress through turnover, absenteeism, errors, accidents, dissatisfaction, and reduced performance.
Sorces if Stress
Stress and Stress Management:
Stress: a state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities.
Sources of Stress:
Stressor: anything that causes stress. Have the ability to influence our work attitudes, behavior, job performance and even health.
Two common work-related stress syndromes:
1. Set up to fail: where the performance expectations are impossible or the support is totally inadequate to the task
2. Mistaken identity: where the individual ends up in a job that doesn’t at all match talents or that he or she simply doesn’t like
PERSONAL FACTORS: Type A Personality: Person orientated toward extreme achievement, impatience, and perfectionism. They are always moving, walking, and eating rapidly, acting impatient, hurrying others, 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, and hurrying or interrupting the speech of others.
Organizational Development
Organizational development interventions
Organization Development Interventions
- OD is employee involvement in action involving respecting people and commitment to full participation in self directed change
- Process activated by OD interventions structured activity help create change for OD
Individual Interventions
- OD show need for personal growth mostly to be satisfied in supportive and challenging work place assumption people responsible for own actions also make good contributions to company
- OD interventions are :
• Sensitivity training: worker learn interpersonal skills
• Management training – educational opp for making important managerial skills
• Role Negotiation – clarify and negotiate role expectation
• Job redesign – realigning task component to fit needs and capability of person
• Career planning – advice and discussion to help people plan career
Team Interventions
- Team play important in OD two principle based on this team (vehicles to help people satisfy needs) second improved collaboration within teams
- OD intervention use to improve team effectiveness:
• Team building experience to help team members set goals and interpersonal
• Process consultation- 3rd party observe and gives advice
• Intergroup team building – experience 2 and more team set goals, conflicts and interpersonal
Organization Wide Interventions
- total company OD operate that change on one part affects other company culture must be looked at that effects morale
- Noted structure and jobs bring people together tech and system in high productive and satisfying work combo
- OD intervention with overall organization effectiveness :
• Survey feedback – systematic data collection to know needs for action
• Confrontation Meeting – meeting to get data on problem and make plans
• Structural redesign – organization structure meet need of environmental forces
• Management by objective – Mbo all company link people group and company objectives
How organizational development works
How Organization Development Works
- OD related to lewins’ 3 stages for OD to be successful first establish working relationship with members 2 nd step diagnosis (get data to know situation helps with unfreezing), Which leads to intervention (change objective with interventions)
- OD also needs evaluation determine if things when according to plan if not make adjustments this then leads to achieve a terminal relationship leaves client alone to process byself support by managers and staff
- Strength and weakness is based on methodological foundation action research process of getting data, using it for action then evaluating results
- Data feed to staff, evaluating result repeated as process continues, action research when sense performance gap and need to look at problem or opportunities
- Getting data can be done many ways
Organizational Development goal
- Time when management reflects on pro and cons, achievements and failure also future
- To make sure future is good it happen in participation and action organization development comprehensive effort to improve company’s ability to solve issues and increase performance
- This needs planning company to change involving using science in systematic and long range effort to increase efficiency
- OD important also company to get to next level in all aspect in change
Organization Development Goals
- Two goals in follow OD outcome goals of OD (task accomplishment) and process goals OD (people working together)
- 2nd goal make OD more diff from change processes OD is like planned change plus the plus is making members get capacity for continued self renewal
- OD change way that aid company become active and self reliant in ability to continue change in future also OD committed to humanistic value and make principle of behaviour scienc
Leading Planned Change
Phases of Planned change
Challange of technology change
- Ongoing tech change is a way of life but it bring new challenges to change leaders full adv. Of tech to used requires good fit with work needs, practices, and people which needs sensitivity and continual gathering of info so adjustments can be made
- If any resistance occurs leaders must adjust tech to meet needs
Resistence to Change
Resistance to Change
- Change brings resistance with workers as they believe some they believe is threaten
- Resistance is better viewed as feedback that tells agent to modify plan that fits with situation when resistance
- Once resistance is understood it can be dealt with such as education and communication (discussions and presentations to educate people), Participation and involvement (contribution idea and help design), facilitation and support (approach using positivity and performance pressures), Facilitation and agreement (give incentives), Manipulation and co-optation (convertly influence other by giving info and structuring event for desired change), Explicit and implicit coercion (force people to accept change) last two approaches have great risk and negativity
Change Strategies
Change Strategies
-Act of changing or moving people to do thing differently can be done differently 3 common changes strategies
o Force coercion
o Rational persuasion
o Shared power
Force Coercion Strategies
-Force Coercion strategy get changes through formal authority or use of reward or punishment
-Manager using this strategy believe people motivated by self interest and situation offers in term of personal gains or losses
o Manager also believes they only behave to changes in motives such as the stated ones, try to find out what interests are and then put pressure on weakness or value
-Forcing strategy agent take direct and unilateral action to command change involving use of formal authority or rewards or punishment
-Political Manoeuvring agant works indirectly to gain advantage over worker to make them change (bargaining, getting control of resources, making alliances, and granting small favours)
-This method make little change alone but can be done quickly most people listen to this method out of fear or reward its useful for unfreezing device and break old patterns and gain advantage to try new ones
Rational Persuasion Strategies
-Rational Persuasion Strategy bring change by data and rational argument
-Agent believes people are rational and logic behind action and decision making
-When certain action for person self interest is done they believe ration and reason will make the person adopt the strategy
-Outcome of this strategy is person will comply to the change due to rational and commit it can also unfreeze and freeze situation its slower than force coercion it last longer and more internal change
-When using this strategy manager must show cost benefit value (change will make them better) only works when agent has creditability or expert in field
Shared Power Strategies
-Shared power strategy get change by participation, evaluation of needs, values and goals it is slow process but gives high commitment also called (normative re educative strategy) base on empowerment and high participation
- Involves other people reflecting on personal needs, groups norm, and operating goals related to issue at hand power is shared by agent and workers they work together and develop full support for change
- Due to high participation this process take the longest time but it also make sure it last the longest and greater internal change
- Agent behaves as participation due to socio culture norm and commitment expectation of others the change also changes the climate and attitude in the company
-Complications of change in organization with human nature (act habitually and stable over time) even when change is needed they don’t want it
o As manager (change agents) must recognize and deal with these to lead planned change
- Kurt Lewis say to view planned change effort as 3 phases
o Unfreezing (prep for system change)
o Changing (making actual change in system)
o Refreezing (stabilize system after change)
Freezing
-Planned change to be successful in long term people must be open to change
- Unfreezing stage which situation prepped for change and need for change
-This can be done in several ways environmental pressures for change, declining performance, recognition problems or opps exist, and observation behavioural models display alternative approach Changing
-Changing phase where a planned change actually takes place managers initiate change in organizational target as task
people, culture, tech and structure
-Phase is ideally reached reach after unfreezing with good diagnosis of problem and careful examination of alt.
-Lewis says change agents enter changing phase too quick and too quick to change things create resistance to change when these agent make change before people feel a need for it increase risk of failure
Refreezing
-Last step called Refreezing change is stabilized managers create stabilizing change and make conditions for long term continuity
-This last step is accomplished by appropriate reward performance, positive comments, and resource support as well as feed back to workers and make any changes
-When done properly it lasts long due to era of pressure of rapid market response refreezing part is hard
-Author Ron Knowles say refreezing say to retun to pervious frozen state which is unrealistic and not what lewis wanted
o Lewis wanted continuing process of unfreezing, changing and refreezing (one set of changes follow be another set of change in evolving pattern)
