LeadershipinOrganizationsNinthEditionChapter5LeadingChangeandInnovationCopyright?2020,2013,2010PearsonEducation,Inc.AllRightsReservedLearningObjectivesAfterstudyingthischapter,youshouldbeableto:5.1 Understandreasonsforresistingchange.5.2 Understandthepsychologicalprocessesinvolvedinmakingmajorchanges.5.3 Understandhowtodevelopanappealingvisionfortheorganization.5.4 Understandhowtoimplementamajorchangeinanorganization.5.5 Understandhowleaderscanincreaselearningandinnovation.TypesofChangeinTeamsandOrganizationsRolesorAttitudesTechnologyStrategyEconomiesorPeopleDevelopmental,Transitional,orTransformationalChangeChangeProcessStagesintheChangeProcessStagesinReactiontoaChangePriorExperienceandreactionstoChangeReasonsforAcceptingorRejectingChangeTheProposedChangeIsNotNecessaryTheProposedChangeIsNotFeasibleTheProposedChangeIsNotCostEffectiveTheProposedChangeWouldCausePersonalLossesTheProposedChangeIsInconsistentwithValuesTheLeadersAreNotTrustedOrganizationalCynicismAboutChangeAlternativeReasonsforResistanceImplementingChangeDeterminingWhattoChangeUnderstandingSystemsDynamicsResponsibilityforImplementingMajorChangeThePaceandSequencingofChangesGuidelinesforImplementingChange(1of4)Creatingasenseofurgencyabouttheneedforchange.Communicateaclearvisionofthebenefitstobegainedfromchange.Identifylikelysupporters,opponents,andreasonsforresistance.Buildabroadcoalitiontosupportthechange.Usetaskforcestoguideimplementationofchanges.Fillkeypositionswithcompetentchangeagents.Empowercompetentpeopletohelpplanandimplementthechange.GuidelinesforImplementingChange(2of4)Makedramatic,symbolicchangesthataffectthework.Preparepeopleforchangebyexplaininghowitwillaffectthem.Helppeopledealwiththestressanddifficultiesofmajorchange.Provideopportunitiesforearlysuccessestobuildconfidence.Monitortheprogressofchangeandmakeanynecessaryadjustments.Keeppeopleinformedabouttheprogressofchange.Demonstrateoptimismandcontinuedcommitmenttothechange.GuidelinesforImplementingChange(3of4)Table5.1GuidelinesforImplementingaMajorChangeCreateasenseofurgencyabouttheneedforchange.Communicateaclearvisionofthebenefitstobegained.Identifylikelysupporters,opponents,andreasonsforresistance.Buildabroadcoalitiontosupportthechange.Fillkeypositionswithcompetentchangeagents.Usetaskforcestoguidetheimplementationofchanges.Empowercompetentpeopletohelpplanandimplementchange.GuidelinesforImplementingChange(4of4)Table5.1GuidelinesforImplementingaMajorChange(continued).Makedramatic,symbolicchangesthataffectthework.Preparepeopleforchangebyexplaininghowitwillaffectthem.Helppeopledealwiththestressanddifficultiesofmajorchange.Provideopportunitiesforearlysuccessestobuildconfidence.Monitortheprogressofchangeandmakeanynecessaryadjustments.Keeppeopleinformedabouttheprogressofchange.Demonstratecontinuedoptimismandcommitmenttothechange.HowVisionsInfluenceChange(1of3)DesirableCharacteristicsforaVisionElementsofaVisionValuestatementSlogansStrategicobjectivesProjectobjectivesResearchofEffectsofVisionsHowVisionsInfluenceChange(2of3)GuidelinesforDevelopingaVisionTable5.2DecisionRulesintheNormativeDecisionModelWhenthedecisionisimportantandsubordinatespossessrelevantinformationlackedbytheleader,anautocraticdecisionisnotappropriate,becauseanimportantdecisionwouldbemadewithoutalloftherelevant,availableinformation.Whendecisionqualityisimportantandsubordinatesdonotsharetheleader’sconcernfortaskgoals,agroupdecisionisnotappropriate,becausetheseproceduresgivetoomuchinfluenceoveranimportantdecisiontouncooperativeorevenhostilepeople.Whendecisionqualityisimportant,thedecisionproblemisunstructured,andtheleaderdoesnotpossessthenecessaryinformationandexpertisetomakeagooddecision,thenthedecisionshouldbemadebyinteractionamongthepeoplewhohavetherelevantinformationWhendecisionacceptanceisimportantandsubordinatesareunlikelytoacceptanautocraticdecision,thenanautocraticdecisionisnotappropriate,becausethedecisionmaynotbeimplementedeffectively.HowVisionsInfluenceChange(3of3)Table5.2DecisionRulesintheNormativeDecisionModel(continued)Whendecisionacceptanceisimportantandsubordinatesarelikelytodisagreeamongthemselvesaboutthebestsolutiontoanimportantproblem,autocraticproceduresandindividualconsultationarenotappropriate,becausetheydonotprovidetheopportunitytoresolvedifferencesthroughdiscussionandnegotiationamongsubordinatesandbetweenthesubordinatesandtheleader.Whendecisionqualityisnotimportantbutacceptanceisimportantandunlikelytoresultfromanautocraticdecision,thentheonlyappropriateprocedureisagroupdecisionbecauseacceptanceismaximizedwithoutriskingquality.Whendecisionacceptanceisimportantandnotlikelytoresultfromanautocraticdecision,andsubordinatessharetheleader'staskobjectives,subordinatesshouldbegivenequalpartnershipinthedecisionprocessbecauseacceptanceismaximizedwithoutriskingquality.BasedonVroom&Yetton,1973.CollectiveLearningandInnovationInternalCreationofNewKnowledgeExternalAcquisitionofNewKnowledgeIntegratingExplorationandExploitationofLearningProcessesKnowledgeDiffusionandApplicationLearningOrganizationsGuidelinesforEnhancingLearningandInnovation(1of2)Recruittalented,creativepeopleandempowerthemtobeinnovative.Encourageappreciationforflexibilityandinnovation.Encourageandfacilitatelearningbyindividualsandteams.Helppeopleimprovetheirmentalmodels.Evaluatenewideaswithsmallscaleexperiments.Leveragelearningfromsurprisesandfailures.Encourageandfacilitatesharingofknowledgeandideas.Preservepastlearningandensurecontinueduseofrelevantknowledge.Setinnovationgoals.Rewardentrepreneurialbehavior.GuidelinesforEnhancingLearningandInnovation(2of2)Table5.3SimplifiedVersionoftheNormativeDecisionModelSubordinateAcceptanceofDecisionDecisionQualityNotImportantorAssuredwithAutocraticDecisionImportantandNotAssuredwithAutocraticDecisionNotImportantAUTOCRATICGROUPImportant,theleaderhassufficientinformation,andmembersshareleader’sgoalsAUTOCRATICGROUPImportant,theleaderhassufficientinformation,butmembersdonotsharetheleader’sgoalsAUTOCRATICCONSULTATIONImportant,theleaderlacksessentialinformation,andmembersshareleadergoalsCONSULTATIONGRO