MGMT 4010

Leadership and Change

Management
CLO 1
Introduction to Change
Management
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Learning Objectives
• Examine common types of change and the impact on the
organization and its people
▫ Describe the general characteristics of organizations.
▫ Identify triggers for change in a range of organizations.
▫ Explain the stages in the process of managing change.
▫ Identify types of change.
▫ Identify resistance to change.
▫ Identify why organizational change fails.
▫ Outline the role of leadership in the change process.
▫ Analyze different leadership styles, and their impact on
leading change.
▫ Show the importance of acquiring and exercising power
and influence.
▫ Apply ethical and responsible leadership.
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Vocabulary1*
• Trigger • Authoritarian Leadership
• Resistance to change • Participative Leadership
• Leadership • Delegative Leadership
• Leadership styles • Transactional Leadership
• Power • Transformational
• Influence Leadership
• Ethical leadership
• ADKAR
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Characteristics of
Organizations
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What is an organization?
• A group of people who work together in
an organized way for a shared purpose
▫ Cambridge Dictionary

• An organization is a group of two or more

individuals and the coordinated allocation
of resources around a common goal or
objective.
▫ The Business Professor
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Characteristics of an
Organization

People Purpose Structu

re
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Characteristics of
Organizations
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What is Change Management?

• Change management is an enabling
framework for managing the people side of
change – Prosci
• For changes to be successful, management
must prepare, equip and support
individuals moving through changes so
that they successfully adopt the changes.
• Without adoption, changes will not be
successful and the organization will not
deliver the desired outcomes.
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• https://www.youtube.com/watch?v=__IlYNMdV9E
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Triggers of Change
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Triggers (Causes) of Change

Internal Factors External Factors
Change initiated by the Change from outside the
business business
• Restructuring • Social trends / attitudes
• Mergers and acquisitions • Economic conditions
• New Board of Directors • Laws / regulations
• Changes in organizational • Technological advances
vision • New competition
• Employee dissatisfaction • Industry changes
• Organizational growth • Cost pressures
• Business unit / department • Vendor / supplier changes
mergers
• Performance failures
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Triggers of Change
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What are the types of change?

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MGMT4010 - CLO1 (
MD, Fall 2022)
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The Four Quadrant Model of Organizational

Change
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General Types of Change

1. Strategic Transformational
Change

2. People-centric Organizational
Change

3. Structural Change

4. Remedial Change
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Strategic Transformational
Change
• Big changes which transform
organizations

Employee
Updating
Introducing training &
mission, vision,
new technology development
or values
for new skills
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People-centric
Organizational Change

Examples:
1. New Hires
2. Changes to
roles &
responsibilities
3. Employee T&D
for new skills
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Structural Change

Changes to
Mergers &
Organization
Acquisitions
al Chart

Creation of New
Teams or
Departments
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Remedial Change
(Reactionary)

Dealing with Addressing Providing

a loss of customer more training
talent communicati for new hires
on issues
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• Amna is busy typing in a customer’s order to meet a 5 pm

deadline. A member of the company’s facilities team,
Mohammed, walks into Amna’s office and says, “Here are
some boxes for your move.”
• “What?” asks a surprised Amna.
• Mohammed says, “I was told that you are moving to the new
building.”
• The building Amna currently works in is only five minutes
from her house. The new building is an hour away.
• Amna asks her manager, Mona, what is going on. Mona,
embarrassed, says, “Oh, yeah. Hey, Amna, do you have a
minute
What wenttowrong?
talk?” What should have happened?
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Resistance to Change
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Resistance to Change
• " The only constant is change.”
• Resistance to change is unwillingness to adapt to
new circumstances or ways of doing things.
• It can happen with individuals, relationships, or
within organizations.
• There are many reasons for resistance, but at its
heart, resistance is rooted in fear of the
unknown.
• People are biologically wired to look for patterns
and predictability, and any uncertainty — even if
it’s anticipated or positive — can trigger anxiety.
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Causes of Change Resistance

Lack of Trust

Poor
Constant
Communicatio
Change
n

Emotional
Surprises
Response

Fear of Failure
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How to Minimize Resistance to

Change

Educate
Communicate Listen to employees
early and often employees about the value
of the change

Timing is
Name emotions
everything Provide
to allow leaders
(methodically ongoing
to address
introduce support
issues
change)
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Why Organizations Fail

to Change
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Why Organizational Change Fails

(slide 1)

Strategic Underestimati
shortcomings ng size and Ignored
(poor scope of the stakeholders
planning) change

Poor
communicatio Lack of buy-in
n
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Why Organizational Change Fails

(slide 2)
Lack of
tooling
Active (i.e.
Lack of vision
resistance Technology
can’t support
change)
Inertia
Lack of
(hard to get
endurance
started)
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How Does Change Happen?

The Change Curve
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The Change Curve

• The Change Curve helps to explain the impact of change,
both on individuals and organizations.
• By predicting the likely responses to change, development
can be accelerated by providing people with timely help and
support.
• The Change Curve recognizes four stages in our reactions to
change:
1.People's first responses are often shock and denial, so it's vital to
keep them fully informed about what's going on.
2.Anger and fear often come next. At this stage, handle all the
emotions involved with sensitivity and care.
3.People gradually accept their new situation, but they'll still need
time to get used to it.
4.Finally, when your people are fully committed to the changes, help
them to celebrate their success!
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Stages 1 & 2
Stage 1: Shock, Denial Stage 2: Anger, Fear
• When a change is first • Once the reality of the
introduced, people's initial change starts to hit, people
response may be shock or tend to react negatively and
denial, as they react to the move to stage 2 of the
challenge to the status Change Curve. They may
quo. fear the impact, feel angry,
and actively resist or protest
against the changes.
• Some will wrongly fear the
negative consequences of
change. Others will
correctly identify real
threats to their positions.
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Stages 3 & 4
Stage 3: Acceptance Stage 4: Commitment
• At stage 3 of the Change • By stage 4, they not only
Curve, people stop accept the changes but
focusing on what they've also start to embrace
lost. They start to let go, them: they rebuild their
and accept the changes. ways of working. Only
They begin testing and when people get to this
exploring what the stage can the organization
changes mean, and so really start to reap the
learn the reality of what's rewards of change.
good and not so good, and
how they must adapt.
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How to Use the Change Curve

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Why Organizations Fail

to Change
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What is Leadership?
• Leadership: the action of leading a group
of people or an organization.
• Leaders help themselves and others to do
the right things. They:
▫ set direction,
▫ build an inspiring vision, and
▫ create something new.
• Leadership is about mapping out where
the organization needs to go to "win" as a
team or an organization.
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Transformational Leadership
• According to the idea
of transformational leadership , an
effective leader is a person who does the
following:
▫ Creates an inspiring vision of the future.
▫ Motivates and inspires people to engage
with that vision.
▫ Manages delivery of the vision.
▫ Coaches and builds a team, so that it is
more effective at achieving the vision.
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Change Leadership
• Change Leadership is the ability to
influence and inspire action in others,
and respond with vision and agility
during periods of growth, disruption
or uncertainty to bring about the
needed change.
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Change Leaders...

- Change
Leadership
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Leadership Styles
1. Authoritarian Leadership

2. Participative Leadership

3. Delegative Leadership

4. Transactional Leadership

5. Transformational Leadership
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1. Authoritarian Leadership
• Allows a leader to
impose expectations Advantages
and define outcomes. • Decisions may be made quickly
• Success is high when a • Chain of command is clear
leader is the most • Implementation mistakes reduced
knowledgeable in the • Creates consistent results
team.
• Although this is an Disadvantages
efficient strategy in time- • Strict leadership = sometimes causes
constrained periods, employee rebellion
creativity will be • It kills employee creativity and
sacrificed since input innovation
from the team is limited. • It reduces group synergy &
• Used when team collaboration
members need clear • Group input is reduced
guidelines. • Increases employee turnover rate.
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2. Participative Leadership
• Team members are Advantages
involved in the decision
• Employee motivation and job satisfaction
making process.
increases
• Team members thus feel • Employee creativity is encouraged
included, engaged and • Strong teams are developed
motivated to contribute. • Productivity is normally high
• The leader will normally
have the last word in Disadvantages
the decision-making • Decision-making is time-consuming
processes. • Leaders tend to apologize to employees
• Disagreements within a frequently
group may cause it to • Communication failures occur
be a time-consuming • Security issues can arise because of
process to reach a transparency in information sharing
consensus. • Poor decisions can be made if the
employees are unskilled
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3. Delegative Leadership
• Also known as "laissez-
faire leadership", it Advantages
focuses on delegating
• Experienced employees can
initiative to team
members. take advantage of their
competence and experience
• This can be a successful
• Innovation & creativity is highly
strategy if team members
are competent, take valued
responsibility and prefer • Creates a positive work
engaging in individual environment.
work. Disadvantages
• Disagreements among the
members may split and • Command responsibility is not
divide a group, leading to properly defined.
poor motivation and low • Creates difficulty in adapting to
morale. change.
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4. Transactional Leadership
• Uses "transactions" between
a leader and his or her Advantages
followers - rewards, • Leaders create SMART goals that are
punishments and other
achievable for employees
exchanges - to get the job
• Increased employee motivation and
done.
• The leader sets clear goals,
productivity
and team members know
• Chain of command confusion reduced
how they'll be rewarded for • Easy to implement by leaders and
their compliance. easy to follow by employees
• A "give and take" leadership • Employees can choose reward
style systems
Disadvantages
• Focused on following
established routines and • Innovation & creativity is minimized
procedures in an efficient • Empathy is not valued
manner, than with making • More followers than leaders among
any transformational employees
changes to an organization.
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5. Transformational Leadership
• the leader
Advantages
inspires his
or her • Employee turnover rate is reduced
followers • Places high value on corporate vision and
relationships
with a vision
• High morale of employees is often experienced
and then • It uses motivation and inspiration to gain the
encourages support of employees
and Disadvantages
empowers • Leaders can deceive employees
them to • Consistent motivation & constant feedback may
achieve it. be required
• The leader • Tasks can’t be established without the
agreement of employees
also serves as
• May sometimes lead to the deviation of
a role model protocols and regulations.
for the vision.
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Leadership Styles & Change

Management
“Leaders are people who do the right thing;
managers are people who do things right.”Bennis

Good management is not enough to

manage people through change

Leadership is required and needs to

adapt to your people

Leaders need to be people-centric

Leadership needs to recognize the

emotional dimension
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Power vs. Influence

• Power is the ability to impose your will on
others, whereas influence is the ability to
deeply affect behaviours and beliefs.
• As a leader, you’ll need to use your power once
in a while to steer the ship. But when you use
influence to lead, you’ll slowly build deeper
trust and loyalty with your team.
• When you lose a position of power, you lose the
power that came with it, but not the influence
you generated.
- Better UP
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• Scenario 1: extra work needs to be done

over the weekend
▫ Power: Using coercive and legitimate power,
you choose three people and tell them they
need to come in, or they will be written up.
▫ Influence: You decide to lead by example and
volunteer to come in on the weekend yourself.
You can also use persuasion to explain why
coming in during the weekend will benefit the
project and make work more pleasant for the
team.
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• Scenario 2: Morale is low during a

particularly difficult project, and
productivity is suffering
▫ Power: You decide to host a pizza party to
boost morale, but only if your team reaches
their milestone before the end of the day.
▫ Influence: Provide support to your team to
boost morale, not through unrelated gifts, but
by getting your hands dirty in the project. Give
advice, show how you'd do it, and ask them
what they think should be done next
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• Scenario 3: Someone in your team

hasn’t been performing as well in the
past few weeks
▫ Power: You meet with them one-on-one and
tell them that they need to step it up,
otherwise you’ll have to write them up.
▫ Influence: Instead of reprimanding them,
you ask how you can support them right now.
Let them know that they are important to the
team and everyone relies on them to
succeed.
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Manager vs. Leader

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Ethical Leadership
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Ethical Leadership

• Ethical leadership is defined as “leadership

that is directed by respect for ethical
beliefs and values and for the dignity and
rights of others.” It is mainly concerned with
moral development and virtuous behaviour.

• As Heather R. Younger, founder and CEO

of Employee Fanatix, put it, “an ethical
leader is someone who lives and dies for
integrity. Doing the right thing, even when
it hurts, is the ethical leader’s mantra.”
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Importance of Being an Ethical Leader

Positive
culture

Improved
Improved
brand
well-being
image

Increased Scandal
loyalty prevention
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Principles of Ethical Leadership

Respect Justice Honesty

Communit
Protection Integrity
y
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How to Become and Ethical

Leader
1. Define and align your values

2. Hire people with similar values

3. Promote open communication

4. Beware of bias

5. Lead by example

6. Find your role models

7. Care for yourself so you are able to care for others

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Ethical Leadership – an
Example

Video link: https://www.youtube.com/watch?v=uvHwyrem24M