13-1 McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. C HAPTER T HIRTEEN Leadership and Change Beer’s Model of Organizational Change 13-3 C=DxMxP>R D = followers’ dissatisfaction M = model for change P = process R = resistance C = amount of change McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 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. The Components of Organizational Alignment 13-5 Vision Capabilities • Technical • Leadership Systems • Accounting • Sales • HR • IT McGraw-Hill/Irwin Culture • Norms • Shared values Structure • Span of control • Team composition • Hierarchy © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-6 The Expectation-Performance Gap Expectations Change initiative implemented Status quo Gap Actual performance Time McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-7 Common Losses with Change Loss of: Possible Leader Actions Power Demonstrate empathy, good listening skills, and new ways to build power. Competence Coaching, mentoring, training, peer coaching, job aids, and so forth. Relationships Help employees build new relationships before change occurs, or soon thereafter. Rewards Design and implement new reward system to support change initiative. Identity Demonstrate empathy; emphasize value of new roles. McGraw-Hill/Irwin 2002 1988). The McGraw-Hill Companies, Inc., All Rights Reserved. M. Beer, Leading Change (Boston: Harvard Business School ©Press, 13-8 Reactions To Change Anger Shock Top leaders Middle managers Individual contributors McGraw-Hill/Irwin Rejection Acceptance Time © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. The Rational Approach To Organization Change and the Interactional Framework 13-9 Leader • Environmental scans • Vision • Goals • Change plan • Systems vs. siloed thinking • Leadership and management capabilities Followers McGraw-Hill/Irwin • Dissatisfaction • resistance • SARA model • Loss of: – Power – Competence – Identity – Rewards – Relationships • Technical/functional capabilities Situation • Crisis • Consumer preferences • Market conditions • Societal shifts • Political and legal challenges • Competitive • Organizational structure • Organizational systems • Organization culture © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Four Leader Behaviors of PathGoal Theory • • • • 13-10 Directive Supportive Participative Achievement-oriented McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Burns’s Forms of Leadership 13-11 • 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. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-12 Factors Pertaining to Charismatic Leadership and the Interactional Framework Leader Outcomes: Vision Social or cultural revolutions Rhetorical skills Higher levels of effort Image and trust building Greater follower satisfaction Personalized leadership Increased group cohesiveness Identification with the leader and the vision Heightened emotional levels Crisis Task interdependence Willing subordination to the leader Feelings of empowerment Followers McGraw-Hill/Irwin Situation © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. A Leaders’ Vision Of the Future Can Align 13-13 Efforts and Help Groups Accomplish More Groups that lack vision Groups with vision McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.