URGENT - Managing Change - Case Study Business Proposal - Need completed in 24 hours
Lecture 7 Semester 1 2017
Role of MANAGEMENT and Leadership during CHANGE MANAGEMENT
Management vs. Leadership
Transactional and Transformational ‘leadership’ during change
Mention that this lecture is about leadership in the context of change and what it takes to be/become a change leader. Not so much about leadership vs management though that will be dealt with for the sake of refreshing memory/understanding.
Role of leadership in the implementaion of change
We will refresh the leadership vs mgmt issues. More on change leadership. Role of leadership in change management.
Analysis of transformational vs transactional roles. Have a combination of people on the field + visionaries.
Managerial roles (Mintzberg 1975)
The Interpersonal role – manage through people
Figurehead
Leader
Liaison.
The Informational role – manage via
information
Monitor
Disseminate
Spokesperson.
The Decision-making role –
manage through action
Disturbance Handler
Resource Allocator
Negotiator and Entrepreneur.
Typical managerial roles with key roles highlighted
These roles remain in place when the manager engages in change initiatives
Start by asking the class who is a manager and discuss the managerial roles according to them (and then from this slide).
Human side of org. To emphasize that managers are more rational and may be unethical?
Talk about liaison – and other bits in the slides
Ask who is a manager and their roles and resp,
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Management – Definition … (Mintzberg)
Management is incorporated into every aspect of an organization and involves different roles and responsibilities. He described three main categories of management roles:
Interpersonal: - figurehead; leader; liaison.
Informational: Mentor; disseminator; spokesperson.
Decisional: Entrepreneur; Disturbance handler; resource allocator; negotiator.
Interpersonal
Figurehead: symbolic head; performs a number of routine duties of a legal or social nature.
Leader: motivates and activates subordinates; performs staffing, training, and associated duties.
Liaison: maintains a self-developed network of outside contacts and informers who provide favours and information.
Informational
Mentor: seeks and receives a wide variety of special information (much of it current) to develop a thorough understanding of the organization and environment; emerges as the nerve center of internal and external information for the organization.
Disseminator: transmits information received from outsiders or from other subordinates to members of the organization. Some information is factual; some involves interpretation and integration of diverse value positions of organizational influences. Disseminating what is of value, and how, is a critical informational role.
Spokesman: transmits information (plans, policies, results, etc.) within and outside of the organization; serves as an expert on the organization's industry
Decisional
Entrepreneur: searches the organization and its environment and initiates improvement projects to bring about change; supervises design of certain projects as well.
Disturbance Handler: takes corrective action when the organization faces important, unexpected disturbances.
Resource Allocator: allocates the organization's resources; makes or approves of all significant organizational decisions.
Negotiator: represents the organization at major negotiations.
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Managers deal with...
Rational/technical issues
Operation of systems
Vision, motivation and conflict resolution.
Managers use both art and science
Management combines soft and hard techniques
Managers need to be able to switch between and combine these as necessary.
Although management and leadership are two different roles they are often performed by the same person incumbent but with different emphases – depending on many factors but in particular the level of functioning in the corporate hierarchy
Explain the last point on Managers and leaders being the same people.
Mintzberg …. In the real world, these roles overlap and a manager must learn to balance them in order to manage effectively. While a manager’s work can be analysed by these individual roles, in practice they are intermixed and interdependent. According to Mintzberg: “The manager who only communicates or only conceives never gets anything done, while the manager who only ‘does’ ends up doing it all alone.”
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Definitions: Leadership & Leading
‘Leading is the process of arousing enthusiasm and directing effort towards organisational goals.’ (Campling et al. 2008, p.356)
Definition: leadership
‘Influencing, motivating and enabling others to contribute toward the effectiveness and success of the organisations of which they are members.’ (McShane et al. 2010, p.456)
Definition: Power: ‘…the capacity to influence others’ (McShane et al. 2010, p.402)
Definition: Influence: ‘…any behaviour that attempts to alter someone’s attitudes or behaviour.’ (McShane et al. 2010, p.402)
Talk a bit about power and influence here. Ask the class for definitions. Talk about leading by eg, walk the talk, etc.
Familiarising with the terminology, etc. Leadership is all about implementing the change – they influence people by manipulating behaviour and attitudes
Touch upon the power vs influence thing in a bit of detail. A manager has positional power.
Mention the Mandela case study and the influence he had on his people. Mention Gandhi also. Led 200 million people were led to freedom. Relate that influence is needed to make the change seamless. Mention the origin of the word influence – from influenza – spreads like wildfire.
Explain positional vs personal power
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Comparing management and leadership roles
general understanding – Leaders do the right things and managers do things right.
This is Kotter’s chart which analyses the shift from operational tasks to leading change.
get the class to discuss the columns on left and right. Then ask them to analyse which of these are required to bring about change. They will come to the realization that both are needed.
So, Planning & budgeting is operational stuff. On the right is where it is going – long term vision.
Which of this is reqd for successful change mgmt? Both.
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Kotter on Leadership vs Management
“Management is a set of well-known processes which help an organization to predictably do what it knows how to do well.
Management helps you to produce products and services as you have promised, of consistent quality, on budget, day after day, week after week.
In organizations of any size and complexity, this is a difficult / complex task which is constantly underestimated.
So, management is crucial — but it’s not leadership”.
Kotter on Management and Leadership
“Leadership is entirely different to management.
It is associated with taking an organization into the future, finding opportunities and successfully exploiting those opportunities.
Leadership is about vision, about people buying in, about empowerment and, most of all, about producing useful change.
Leadership is not about attributes, it’s about behaviour.
Today leadership is increasingly needed from more and more people, no matter where they are in a hierarchy.
The notion that a few extraordinary people at the top can provide all the leadership needed today is ridiculous, and it’s a recipe for failure”.
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TRANSACTIONAL managers vs. TRANSFORMATIONAL leaders
Mention positional vs personal power – Managers use positional power, while leaders use personal power.
Talk briefly about Mandela here – personal power which led to him becoming the leader.
Managers make themselves redundant – eg from past. Brief mention of managing your manager.
Leaders do the right things. Managers do things right. Write this down. The vision element – Edison eg. Ford eg.
Leaders set the vision and managers execute it.
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TRANSACTIONAL managers vs. TRANSFORMATIONAL leaders (Continued)
Two ‘managerial’ or ‘leadership’ styles
Transactional:
Optimise performance
Incremental change
Maintain the status quo.
Transformational:
Challenge the established order
Change followers' behaviour and beliefs
Create a new vision.
Get the class to give answers to these points.
Incremental change – every step should be ready. Focus on individual performance
Talk briefly about Branson – putting people in space with Virgin Galactic.
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CONTRASTING: Transformational & Transactional
Implementing new ideas – scope for organisational culture – changes the culture of the org in the process. This is very true when leaders from the outside are replaced by those from the inside.
Mention proactive – not good enough. Need to go that extra mile. Walk the talk – learn to walk the talk. Branson and kids will go to space themselves.
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Transaction without Transformation
Tends to be too short-term focused, fails to bring about meaningful CHANGE, too rigid, uncommitted workforce…etc.
Transformational without Transaction
Essentially theoretical (rhetoric); Not practically executable.
Transactional managers vs. Transformational leaders
| Two (2) Organisational ‘states’ that require different forms of change and leadership to varying degrees | |
| Convergent | Divergent |
| Stable conditions Established and accepted goals | Increasingly chaotic environment Established goals challenged |
Mostly a TRANSACTIONAL emphasis & less of a transformational change agenda (but still meaningful)
Mostly a TRANSFORMATIONAL emphasis & significant transactional change agenda to accompany
Here is where we talk about both. So you need transactional and tranformational leadership.
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ROLE & CONTRIBUTION in PERFORMANCE of Transactional vs Transformational Leadership
PERFORMANCE is the central focus of the organisation.
Performance improvement = CHANGE
Transformational leadership effects change at a more strategic ,conceptual and abstract level (concerned with organisation adaptation and positioning)
Transactional leadership effects change at a more operational and concrete task and process level.
ROLE & CONTRIBUTION in PERFORMANCE
Operational & concrete task and process level
Strategic, conceptual and abstract level
If we focus in transformational – it is focusing on individual persons.
Rewards and the human elements of things.
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Effective Change Leaders
Challenge the status quo and create a readiness for change
Inspire a shared vision and personally communicate the future direction
Enable others to act (Inclusion NOT exclusion)
Create additional sponsors at different levels of the organisation (eg financial; HR; social)
Employ symbolic and substantive actions
Model the way
Communicate the message repeatedly
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Readiness , inspire, communicate, give future direction by clarifying the steps. Where we are going and what we are going to achieve.
These are the qualities of effective change leaders.
Point 1 – need to create a sense of urgency (discussed before).
Point 2 – creating a vision and setting the direction. Talk about the shared vision (egs?). Vision is required to get people to know where to go and how to reach there.
Point 3 – enable others to act – this is all about empowerment. Expressing personal support and empathising are part of this. Human capital
4. Fin and HR resources needed. To create a better coalition
5. Differing actions for different people. Communicate the message repeatedly.
6. Model the way. Lead by eg. The human side of the change. This part is important at the ‘moving’ stage of Lewin’s change steps.
Mention inclusion vs exclusion.
Line
Manager
Management
Low
High
Leadership
Low
High
Senior
Manager
Middle
Manager
(rational; problem-solving; structured)
(visionary; innovative; initiates change)
Management vs. Leadership
The character of management tasks change with progression up the corporate ladder
More ‘leadership’ or transformational activities and less managerial or transactional activities are observed in higher positions compared with lower positions
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Middle manager – is the person who can be manager or leader. Can play both roles.
Which form of leadership is preferable?
Neither!
Organisations need both Transactional managers and Transformational leaders to perform, adapt and survive in the long run.
That’s it for today!
Put up the Boeing case and make people read it. They should read it.
Talk about issues about Boeing. Leaders, focus on things
Focus on the bigger umbrela – eg. Focus on 2 or three things.
What do you propose? Kurt Lewin – too short. Readiness – start with that. Borrow steps from Kotter. Maybe develop your own model.
Planned change models. How do you analyse the situation, etc.
Focus a bit on the strategy? SWOT analysis?
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