Leadership and Change

Management
Chapter 1
Introduction
 Chapter Objectives

At the end of this course students will be able to:

Understand the meaning of leadership
Recognize the fundamental differences between
leadership and management.
Understand what makes effective leader
Know importance of leadership for good
governance and development

2
 Leadership Tips

―I am more afraid of an army of 100 sheep led

by a lion than an army of 100 lions led by a
sheep.‖ —Talleyrand
 The John Adair short advice on leadership

1. The six most important words 1. I admit I made a mistake

2. The five most important words 2. I am proud of you
3. The four most important words 3. What is your opinion?
4. The three most important words 4. If you please
5. The two most important words 5. Thank you
6. The one most important word 6. We
7. The last, most unimportant word 7. I
 1.1 Leadership definition and components

 Leadership is a process whereby an

individual influences a group of individuals
to achieve a common goal.
 Key components of this definition
1. Process- means that it is not a trait or
characteristic that resides in the leader,
◦ but rather a transactional event that occurs
between the leader and the followers.
◦ Process implies that a leader affects and is affected
by followers.
◦ Good followers are not “yes people” who blindly
follow a leader.
2. Influence- is the sine qua non of leadership.

Without influence, leadership does not exist.

Leadership is influence no more no less.

3. Groups- Leadership involves influencing a group

of individuals who have a common purpose

3. Common goals- leaders and followers have a

mutual purpose.
 Leader, follower & leadership

 The distinction between leader and leadership is important.

 Leader is the individual who is able to exert

influence over other people to help achieve
group or organizational goals

 leadership is the function or activity this

individual performs

 Followers are individuals toward whom

leadership is directed
 1.2 Leadership Vs Management
Comparing Management and `Leadership In Five Areas

What is the difference between Leadership &Management?

Management Leadership
Direction  Planning and budgeting  Creating vision and
 Keeping eye on bottom strategy
line  Keeping eye on horizon
Alignment  Organizing and staffing  Creating shared culture
 Directing and controlling and values
 Creating boundaries  Helping others grow
 Reducing boundaries
Relationships  Focusing on objects –  Focusing on people –
producing/selling goods inspiring and motivating
and services followers
 Based on position power  Based on personal
 Acting as boss power
 Acting as coach,
facilitator, servant
 Management Leadership
Personal  Emotional  Emotional connections
Qualities distance (Heart)
 Expert mind  Open mind
 Talking (Mindfulness)
 Conformity  Listening
(Communication)
 Nonconformity
(Courage)
Outcomes  Maintains  Creates change and a
stability; culture of integrity
creates culture
of efficiency
 Managers and leaders

Managers Leaders

 Managers administer  Leaders innovate

 Managers maintain  Leaders develop
 Managers control  Leaders inspire
 Managers have a short-term view  Leaders a long-term view
 Managers ask how and when  leaders ask what and why
 Managers imitate  Leaders originate
 Managers accept the status quo  leaders challenge it
 Do things right  Do the right things
 1.3 What Makes Effective Leadership?
 Effective leadership is the process of achieving desired results
through people’s willing participation.
 The heart of this definition is:
◦ Desired results (goals),
◦ Through people, and
◦ Willing participation-people willingly follow leaders because they want
them.
 Some of the qualities effective leaders possess are the following:
 Passion
 Have a Clear Vision:
 Creativity
 Optimism
 Humility
 Self-confidence
 Honesty
 Persuasion
 Effective Leadership Cont.’
Teaching ability (being model):
Readiness to accept responsibility / criticisms and to
take appropriate corrective measures
Emotional stability and fairness
Intellectual Drive and Knowledge
Ability to understand human behavior
Planner/Organizer
 Flexibility
 Dedication
 Listening
1.4 Importance of Leadership for Good Governance and Development

 The concept of governance and leadership are

intertwined.
 Good governance and leadership is critical for the
achievement of results.
 Good governance is the capability of a government to
sustain social peace, guarantee law and order, promote
conditions needed for generating economic growth and
ascertain a minimum level of social security.

 Development will be a mirage where good governance

is lacking.
 A good leader leads an organization transparently,
and sets a good example at all levels of governance
 Leadership in community development has role that
can make or break the progress of the people involved.
 Chapter Two
Leadership Theories
and Styles
 Chapter Two
Leadership Theories and Styles

Chapter Objectives

At the end of this course students will be able to:

 Differentiate different leadership styles
 Distinguish leadership theories
 Understand transformational, transactional and servant leaders.
 Leadership skills and competencies
 Distinguish good and bad leaders.
15
 2.1 Leadership Styles

 Leadership style is the behavior exhibited by a leader

during supervision and working with followers.

 Leadership style consists of the behavior pattern of a

person who attempts to influence others.

 According to Kurt Lewin and his associates

classified leadership styles into three based on the
extent of sharing decision-making authority with followers.
Autocratic Or Authoritarian Style

An autocratic style is that of a

leader who typically
 tends to centralize authority,
dictate work methods,
make unilateral decisions, and
limit employee participation.
They are highly sensitive about
their authority; one-way
communication;
 Participative Or Democratic Style

 A leader with a democratic style tends:

 to involve employees in decision making,
delegates authority,
encourages participation in deciding work
methods and goals, and
uses feedback as an opportunity to coach
employees.
The leader shows high concern for both task
and people;
The democratic style can be further classified
in two ways:
consultative and
participative.
 Cont.’
A democratic-consultative leader seeks input
and hears the concerns and issues of employees
but makes the final decision him- or herself.

 Inthis case, the democratic-consultative leader is

using the input as an information-seeking exercise.

A democratic-participative leader often allows

employees to have a say in what’s decided.
 Here, decisions are made by the group, with the
leader providing one input to that group
laissez –faire or free rein style

 Laissez-faire leader generally gives

his or her employees complete
freedom to make decisions and to
complete their work in whatever
way they see fit.

 A laissez-faire leader might

simply provide necessary
materials and answer questions
 Lewin and his associates wondered which one of
the three leadership styles was most effective.

 On the basis of their studies they concluded that

the laissez-faire style was ineffective on every
performance criterion when compared with both
democratic and autocratic styles.

 Quantity of work done was equal in groups with

democratic and autocratic leaders, but
 Work quality and group satisfactions were
higher in democratic groups.

 The results suggest that a democratic leadership

style could contribute to both good quantity and
high quality of work.
 Situational Leadership Style

 It is now being recognized that effectiveness of one or the other

leadership style depends on the situation.

 Tannenbaum and Schmidt :Leadership Continuum

 Early work on leadership style implied that leaders were either
autocratic or democratic in their approach.

 However, further work by Tannenbaum and Schmidt indicated that

leadership behavior could exist on Continuum
 Leaders can utilize;
 autocratic,
 democratic,
 even laissez-styles
 depending on the situation.


 2.2 Leadership Theories
Great Man Theory
Are leaders born or made?

 Great man theory assumes that the capacity for
leadership is inherent-that great leaders are born
not made.

 These theory often portray great leaders are

heroic, and destined to rise to leadership when
needed.

 This theory believes that, leaders are exceptional

people, born with innate qualities, destined to
lead.
 Great man theory cont.’
 The term ―great man‖ was used because
leadership was thought of primarily as male
quality.

 The gender issues were not on the table

when the great man theory was proposed.

 Moreover, most leaders and researchers

were also male, and concerns about gender
bias were a long way from being realized.
 Trait Theory
 In the 1920’s and 1930’s leadership researchers
focused on trying to identify the traits that
differentiate leaders from non-leaders.
 The trait approach has its roots in leadership
theory that suggested that certain people were
born with special traits that made them great
leaders.
 Traits are the distinguishing personal
characteristics of a leader, such as intelligence,
honesty, self-confidence, and even appearance

 Because it was believed that leaders and non-

leaders could be differentiated by a universal set
of traits,
 Shortcoming Or Criticisms Of Trait Theory:

 Even though traits identified by some studies

differentiated effective leaders from ineffective leaders,
research finding are still contradictory for a number
of reasons. These are:
 Not all leaders possess all of the traits identified.

 List of potentially important traits is endless.

 No consistent patterns have been found that

distinguish effective leaders from the ineffective one.

 Difficult to measure traits.

 All traits are not equally important for all situations.

 Behavioral Approach
 This approach emphasizes on the behavior
of the leader.

 This distinguishes it from the trait approach

which emphasizes the personality
characteristics of the leader, and the skills
approach which emphasizes the leader’s
capabilities.

 The behavioral approach focuses exclusively

on what leaders do and how they act.
 Researchers studying the behavioral approach
determined that leadership is composed of
two general kinds of behaviors:

◦ Task behaviors/task oriented behavior/ and

◦ Relationship behaviors/ people oriented leader/.

 Although many research studies could be categorized
under the heading of the behavioral approach:
 The Ohio state studies,
 The Michigan studies, and
 The studies by Blake and mouton are:

 strongly representative of the ideas in this approach.

 The Ohio State Studies
 A group of researchers at Ohio State believed that the
results of studying leadership as a personality trait seemed
fruitless and decided to analyze how individuals acted when
they were leading a group or an organization.
 Researchers at Ohio State University surveyed leaders to
study hundreds of dimensions of leader behavior.
 They identified two major behaviors:
 Consideration and
 Initiating structure

1. Consideration/employee orientation/: falls in the category of

people-oriented behavior and is the extent to which the leader
is mindful of subordinates, respects their ideas and feelings,
and establishes mutual trust.

 Considerate leaders are friendly, provide open

communication, develop teamwork, and are oriented toward
their subordinates’ welfare.
2. Initiatingstructure/production orientation/:
is the degree of task behavior, that is, the extent
to which the leader is task oriented and directs
subordinate work activities toward goal
attainment.

 Leaders with this style typically give

instructions, spend time planning, emphasize
deadlines, and provide explicit schedules of work
activities
 Michigan Studies

 Studies at the University of Michigan at about the same

time took a different approach by comparing the
behavior of effective and ineffective supervisors.
 The program of research at Michigan identified two
types of leadership behaviors:
1. Employee orientation and
2. Production orientation.
 Employee orientation is the behavior of leaders who
approach followers with a strong human relations
emphasis.
 Employee orientation is very similar to the cluster of
behaviors identified as consideration in the Ohio State studies.
2. Production orientation consists of leadership
behaviors that stress the technical and production
aspects of a job.

 From this orientation, workers are viewed as a means

for getting work accomplished

 Production orientation similar the initiating structure

cluster found in the Ohio State studies.
 The Leadership Grid
 Building on the work of the Ohio State and Michigan studies,

 Blake and Mouton of the University of Texas proposed a two-dimensional

theory called the managerial grid,

 Which was later restated as the leadership grid.

 This leadership Grid was designed to explain how leaders help
organizations to reach their purposes through two factors:

◦ Concern for production

 refers to how a leader is concerned with achieving organizational
tasks.
◦ Concern for people.
◦ refers to how a leader attends to the people in the organization
who are trying to achieve its goals.
 Each axis on the grid is a nine-point scale, with 1 meaning low
concern and 9 meaning high concern.
1. Team management (9, 9) often is considered the most
effective style and is recommended for leaders because
organization members work together to accomplish
tasks.

2. Country club management (1, 9) occurs when primary

emphasis is given to people rather than to work outputs.

3. Authority-compliance management (9, 1) occurs when

efficiency in operations is the dominant orientation.
4. Middle-of-the-road management (5, 5) reflects a moderate
amount of concern for both people and production.

5. Impoverished management (1, 1) means the absence of a

management philosophy; managers exert little effort
toward interpersonal relationships or work
accomplishment
 Fiedler’s Contingency Model
◦ Good leadership depends on a match between
leadership and situational demands
◦ Leadership is part of one’s personality, and
therefore relatively enduring and difficult to
change
◦ the basic idea is to match the leader’s style with
the situation most favorable for his or her
effectiveness.
◦ By diagnosing leadership style and the
organizational situation, the correct fit can be
arranged.
◦ Leadership style must be fit to the situation
Fiedler’s contingency model (cont.)
◦ Diagnosing situational control:
 Quality of leader-member relations (good or
poor)
 Degree of task structure (Structured or
Unstructured )
 Amount of position power (strong or weak)
◦ Task oriented leaders are most successful in:
 Very favorable (high control) situations
 Very unfavorable (low control) situations
◦ Relationship-oriented leaders are most successful
in:
 Situations of moderate control
Predictions On Style-situation Fit From Fiedler’s Contingency
Leadership Model
 Transactional leadership approach

Transactional leadership: focus on the exchanges

that occur between leaders and their followers

I will do ―X‖ and you will do ―Y‖.

The exchange process between leaders and followers in
which effort by followers is exchanged for specified
rewards
- No new taxes = votes.
- Turn in assignments = grade.
- Surpass goals = promotion.
The exchange dimension is so common that you
can observe it at all walks of life.
 Transformational Leadership
 It is a process that changes and transforms
individuals
 It is a process of engaging with others to create a
connection that increases motivation and
morality in both the leader and the follower
 It involves an exceptional form of influence that
moves followers to accomplish more than what is
usually expected
 It is concerned with emotions, values, ethics,
standards, and long-term goals

 It describes a wide range of leadership influence

where followers and leaders are bound together in
the transformation process
Transformational Leadership Factors: The 4 Is

1. Idealized Influence
◦ Idealized influence describes leaders who acting as
strong role models for followers
◦ Followers identify with these leaders and want very
much to imitate them
◦ Leaders usually have very high standards of moral
and ethical conduct
◦ They are deeply respected by followers, who usually
place a great deal of trust in them.
◦ They provide followers with a vision and a sense of
mission.
Transformational Leadership Factors: The 4 Is

2. Inspirational Motivation
 This factor is descriptive of leaders who
Communicating high expectations

Inspiring followers to commitment and

engagement in shared vision

Team spirit is enhanced by this type of leadership.

Transformational Leadership Factors: The 4 Is

3. Intellectual Stimulation
◦ Stimulating followers to be creative and
innovative

◦ Challenging their own beliefs and values as

well as those of leader and organization

◦ Supporting followers to try new approaches

◦ Develop innovative ways of dealing with

organization issues
Transformational Leadership Factors: The 4 Is

4. Individualized Consideration

◦ Listening carefully to the individual needs of

followers

◦ Leaders act as coaches and advisers while

trying to assist followers in becoming fully
actualized

◦ Leaders may use delegation to help followers

grow through personal challenges
 Pseudo transformational
• Focuses on the leader’s own interests rather than
the interests of his or her followers

Leaders who are

 transforming but in a negative way
 self-consumed, exploitive, power oriented,
with distorted moral values
includes leaders like
 Adolph Hitler

Pseudo Transformational Leadership
 When a leader inspires immoral transformation in
followers and in themselves.
 Servant Leadership

 Servant leadership, which originated in the writings of

Greenleaf (1970, 1972, 1977),

 has been of interest to leadership scholars for more than 40

years.

 Servant leadership emphasizes that leaders

◦ be attentive to the concerns of their followers,
◦ empathize with them, and develop them.

 Servant leaders put followers first, empower them, and help

them develop their full personal capacities
 Servant leadership begins with the natural feeling that one
wants to serve, to serve first.
48
 Characteristics of a Servant Leader

1. Listening: Servant leaders communicate by listening

first.
◦ Acknowledging the viewpoint of followers and validating
these perspectives.
2. Empathy – ―standing in the shoes‖ of another person and
attempting to see the world from that person’s point of
view.
3. Healing – to heal means to make whole. A leader helpe
followers become whole, servant leaders are themselves
healed.
4. Awareness – understanding oneself and the impact one
has on others.
49
 Characteristics Cont.

5. Persuasion is clear and persistent

communication that convinces others to change.

6. Conceptualization – the ability to be a visionary

for an organization, providing a clear sense of its
goals and direction.

7. Foresight – the ability to predict what is coming

based on what is occurring in the present and
what has happened in the past.
50
 Characteristics cont.

8. Stewardship – carefully leading the people

and organization one has been given to lead.

9. Commitment to the Growth of People –

treating each follower as a unique person with
intrinsic value beyond what he/she contributes
to the organization.

10. Building Community – Servant leadership

fosters the development of community.

51
 Good and Bad Leaders

Good Leaders Bad Leaders

 High standard of personal  Threats, fear & punishment

ethics tactics.
 Walking the talk  Self-serving use of power
 Courage  Creating factions: in groups
 Dedication vs. Out groups
 Creativity
 Focused
 Genuine enthusiasm
 Cool under pressure
 Caring
 Chapter Three
Overview Of Change Management

 Learning objectives
 At the end of this course students will be able to:
 Understand the meaning and implications of change
 Recognize forces for organizational change
 Identify the process of organizational change
 Understand resistance to change
 Understand how managing resistance to change
 Recognize planned change
 Identify strategies for planned organizational change
Meaning and implications of Change
 No company today is in a particularly stable
environment.
 Even those with a dominant market share must change,
sometimes radically.

 ―Change or die!” is the rallying cry among today’s

leaders worldwide
 Change is an organizational reality.

 Most leaders, at one point or another, will have to change

some things in their workplace.

Organizational change
Any alteration of an organization’s people,
structure, or technology
• Changing structure includes any alteration in
authority relationships, coordination mechanisms,
degree of centralization, job design, or similar
organization structure variables.

• Changing technology encompasses modifications

in the way work is done or the methods and
equipment used.
• Changes in people refer to changes in employee
attitudes, expectations, perceptions, or behaviors.

• The human dimension of change requires a

workforce that’s committed to quality and
continuous improvement
Forces of Change
 Changing nature of the workforce.
◦ More cultural diversity
◦ Aging population
◦ Increased immigration and outsourcing
 Technology is continually changing jobs and organizations.
◦ Faster, cheaper, and more mobile computers and handheld devices
◦ Emergence and growth of social networking sites
 Economic shocks also have a huge impact on organizations.
◦ Rise and fall of global housing market
◦ Financial sector collapse
◦ Global recession
 Competition is changing.
◦ Global competitors
◦ Mergers and consolidations
◦ Increased government regulation of commerce
 Social trends don’t remain static either.
◦ Increased environmental awareness
◦ Liberalization of attitudes toward gay and lesbian employees
 World politics
◦ Rising health care costs
◦ Negative social attitudes toward business and
executives
◦ Opening of new markets worldwide
 Forces of Change (continued)
Internal Forces: originate inside the organization.
• Human Resource Problems/Prospects
• employees’ needs, job satisfaction, organizational
commitment, behavior, and performance are forces of
change
• dissatisfied employees and high levels of absenteeism and
turnover are signs that change is needed
• Managerial Behavior/Decisions
• the level of conflict between managers and their direct
reports is a force for change
• inappropriate leader behavior may result in employee
problems requiring change
• inequitable reward systems are an additional force for
change
 Process of organizational change

Kurt Lewin’s Three stage model:

 Three Stage Model

 One of the cornerstone models

for understanding organizational
change was developed by Lewin Creating a sense a change is needed
back in the 1940s, and is still
effective in the modern era
• His model, known as Unfreeze
– Change – Refreeze, refers to the
three-stage process of change he Moving towards a new and desired
behavior
describes.

Setting this behavior as the new normal

Three Stage Model
 Lewin’s Block of Ice Metaphor
 Let‟s say you have a „cube‟ of ice but you‟d like to have
a „cone‟ of ice. To transform the cube shape you must:
1. “unfreeze” or melt the ice
2. “change” the mold to a cone shape and
3. “refreeze” the water into the new, desired shape

It‟s a simple three-stage process that allows you to easily

diagnose which stage you are in.
 Lewin’s Golden Rules for Change
 Kurt Lewin’s change theory identified several golden
rules on how change should be implemented:
1. Change should only be implemented for good reason.
2. Change is most effective when done gradually.
3. Change should be planned and not sporadic or sudden.
4. Strive to include individuals who may be affected by
the change as much as possible in planning for the
change.

Lewin: "Motivation for change must be generated before

change can occur.”
 Kotter’s 8 Steps for Leading Organizational Change
 Establish a sense of urgency: Establish a sense of urgency
by creating a compelling reason for why change is
needed.
 Create a team/coalition/: Form a team with enough power to lead
the change..
 Develop a vision and strategy: Create a new vision to direct the
change and strategies for achieving the vision.
 Communicate the vision: Communicate the vision throughout the
organization.
 Empower others based action: Eliminate barriers to change,
and use target elements of change to transform the
organization. Encourage risk taking and creative
problem-solving.
6. Generate short- term wins: Plan for, create, and reward
short-term ―wins‖ that move the organization toward
the new vision.

7. Consolidate gains and produce more change :Consolidate

improvements, reassess changes, and make necessary
adjustments in the new programs.

8. Create new approaches in the culture: Reinforce the

changes by demonstrating the relationship between
new behaviors and organizational success.
 Resistance to change
Resistance to Change: an emotional/behavioral response to
real or imagined work change.

―If you want to make enemies, try to

change something‖ – Woodrow
Wilson

 Resistance doesn’t necessarily surface in

standardized ways. It can be overt,
implicit, immediate, or deferred.
Which one is easy?
• It’s easiest for leaders to deal with overt and immediate resistance such as
complaints, a work slowdown, or a strike threat.
• The greater challenge is managing resistance that is implicit or deferred
• B/C these responses—loss of loyalty or motivation, increased
errors or absenteeism
 The Face of Resistance

• Open resistance

• Intentional Delays/slowing down of work

• Negative talk about the change

• Negative non-verbal attitudes and behaviors

• Absence from meetings

• Resignations

• Sabotage
 Causes/ source of resistance to change

A. Individual Sources
1. Habit—To cope with life’s complexities, we rely on habits or
programmed responses. But when confronted with change, this
tendency to respond in our accustomed ways becomes a source of
resistance
2. Security—People with a high need for security are likely to resist change
because it threatens their feelings of safety.
3. Economic factors—Changes in job tasks or established work routines can
arouse economic fears if people are concerned that they won’t be able to
perform the new tasks
4. Fear of the unknown—Change substitutes ambiguity and uncertainty for
the unknown.
5. Selective information processing—Individuals are guilty of selectively
processing information in order to keep their perceptions intact. They
hear what they want to hear, and they ignore information that
challenges the world they’ve created
 Organizational Sources
1. Structural inertia—Organizations have built-in mechanisms—such as
their selection processes and formalized regulations—to produce
stability. When an organization is confronted with change, this
structural inertia acts as a counterbalance to sustain
stability.
2. Limited focus of change—Organizations consist of a number of
interdependent subsystems. One can’t be changed without affecting
the others. So limited changes in subsystems tend to be nullified by
the larger system.
3. Group inertia—Even if individuals want to change their behavior,
group norms may act as a constraint.
4. Threat to expertise—Changes in organizational patterns may threaten
the expertise of specialized groups.
5. Threat to established power relationships—Any redistribution of
decision-making authority can threaten long-established power
relationships within the organization.
Planned Change

Planned Change - Unplanned Change -

change resulting from a change that is imposed
deliberate decision to on the organization and
alter the organization is often unforeseen

Managers must be prepared to handle both

Strategies for managing Resistance to Change

1. Communication: Communication is more important

than ever in times of change.

2. Participation: It’s difficult to resist a change

decision in which we’ve participated.

3. Building Support and Commitment: When

managers or employees have low emotional
commitment to change, they resist it and favor the
status quo.
◦ Employees are also more accepting of changes when they
are committed to the organization as a whole
4. Develop positive relationships: People are more willing to
accept changes if they trust the managers implementing them
5. Implementing Changes fairly
6. manipulation and Cooptation:
 Manipulation refers to covert influence attempts. Twisting
facts to make them more attractive, withholding information,
and creating false rumors to get employees to accept change are
all examples of manipulation.
 Cooptation, on the other hand, combines manipulation and
participation. It seeks to buy off the leaders of a resistance
group by giving them a key role, seeking their advice not to find
a better solution but to get their endorsement.
7. Selecting people who accept Change
8. Coercion: Last on the list of tactics is coercion, the application
of direct threats or force on the resisters.
 Chapter Four
Types of change
 Planned Change Vs. unplanned Change
 Planned change – intended, purposeful attempt or
proactive plan by an individual (change agent) or
group to create something new
◦ Activities that are proactive and purposeful: an
intentional, goal-oriented activity

◦ Goals of planned change

 Improving the ability of the organization to adapt to changes

in its environment

 Changing employee behavior

18-
75
 Evolutionary Change vs Revolutionary change

 Evolutionary Change: Change that is gradual , incremental

and narrowly focused. focused.

 Evolutionary change is not dramatic or sudden but, rather,

is a constant attempt to improve, adapt, and adjust strategy
and structure incrementally to accommodate to changes
taking place in the environment.

 Such improvements might entail utilizing technology in a

better way or reorganizing the work.
 Total quality management and kaizen are among the
known evolutionary changes.
19-
76
 Revolutionary change: Change that is sudden , drastic
and organization wide.
 Result in a radical shift in ways of doing things , new
goals and a new structure.

 Revolutionary change is a rapid, dramatic, and broadly

focused change.

 Organizations faced with dramatic, unexpected

changes in the environment (for example, a new
technological breakthrough) or with an impending
disaster resulting from mismanagement, an
organization might need to act quickly and decisively.
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77
Business Process Reengineering/BPR

 Reengineering is the fundamental, radical,

rethinking and redesign of business processes
to achieve dramatic improvements in critical,
contemporary measures of performance, such
as cost, quality, service and speed.
(Hammer & Champy, 1993)
BPR seeks improvements of
• Cost
• Quality
• Service
19-
• Speed 78
 What BPR Is Not

 BPR is Not?
• Automation
• Downsizing
• Outsourcing

 It is not another name for downsizing or some other

business fix of the month.
 Downsizing or restructuring only means doing less
with less.
 Reengineering means doing more with less.

79
 KAIZEN
The Key to Japan’s Competitive Success

Masaaki Imai introduced to the Western world

the Japanese term Kaizen and made it famous
through his book, Kaizen: The Key to Japan's
Competitive Success

―Be it our working life, our social life, or our home life, deserves to
be constantly improved‖
Kaizen is the implementation of small, incremental improvements 19-
in all areas of the organization on an ongoing basis. 80
 The 5S
 “Sort”: Sort through all items at a workstation and separate what is needed on
a daily basis. keeping only essential items

 “Straighten” or “Set in order”: This step involves painting marks around

each tool or piece of equipment. Every time a tool is taken from its place, it is
indicated that it is missing.

 “Shine”: Once everything has been ―set in order‖, workers take on a

thorough cleaning process which they will practice daily. keep the
workplace clean

 “Standardize.”: After setting things in order and cleaning, it’s time to reflect
on the three previous steps and now implement them effectively.
Standardized work practices
 “Sustain”: The aim is to turn each of the four previous steps into a habit.
 Kaizen reduces waste- like inventory waste, time waste,
workers motion

 Kaizen improves space utilization, product quality

 Results in higher employee moral and job satisfaction, and

lower turn-over.

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82
 Resistance to change

 Lack of proper procedure to implement

 Too much suggestion may lead to confusion

and time wastage

19-
83
 Total Quality Management
 Definition of quality is dependent on the people
defining it
 Quality is a difficult term to define because it means
different things to different people.
 There is no single, universal definition of quality

• Total—Made up of the whole

• Quality—Degree of excellence a product or service provides
• Management—Act, art, or manner of handling, controlling, directing,
etc.
• Therefore TQM is the art of managing the whole to achieve the
excellence. 19-
84
 A philosophy that involves everyone in an organization in
a continual effort to improve quality and achieve customer
satisfaction.
T Q M

 There are three key philosophies in this approach

 Continuous improving(never-ending push to improve)

 Involvement of everyone in an organization

 Customer satisfaction: means meeting or exceeding

customer expectations.
 Comparison of BPR and TQM

Aspects TQM BPR

Level of change Incremental Dramatic and Radical

Starting points Exiting process Clean slate

Frequency of Continuous One-time

change
Time required Long Short

Risk Moderate High

Participation Bottom-up Top-down

Typical scope Narrow, within Broad, cross functional

functions 19-
86
Six Sigma What is Six
Sigma?
A statistical concept that measures a
process in terms of defects – at the
six sigma level, no more than 3.4
defects per million opportunities in
any process, product, or service.
Six
Sigm First introduced by Motorola in the 1980s and
were later popularized by General Electric.
a
A philosophy and a goal : as perfect
as practically possible

A quality control approach that emphasizes a relentless

19-
87
pursuit of higher quality and lower costs.
The main features of Six Sigma are: all-round quality
performance, do it right first time every time, and fewer
mistakes in all organizational activities.

Sigma Level

Six Sigma =
99,9997%

19-
88
 Balanced Score Card(BSC)

• Balanced Score Card was pioneered by Robert Kaplan

and David Norton of Harvard Business School in 1993

• Balanced Score Card is;

• Balanced Score card derives its name from the

perceived need of firms to ―balance‖ financial
measures that are oftentimes used exclusively in
strategy evaluation and control with nonfinancial
measures such as product quality and customer
service.
19-
89
The Four Perspectives

19-
90
 Chapter 5
Conflict
 After studying this chapter you should be
able to:
 Define conflict.
 Differentiate views of conflict
 Outline the outcomes conflict
 Understand why does conflict occur
 Understand conflict management strategies
.
 Definition of Conflict
 Conflict Defined

◦ Is a process that begins when one party perceives that

another party has negatively affected, or is about to
negatively affect, something that the first party cares
about.

◦ It is the behavior of an individual or group which

purposely sets out to block or inhibit another
individual or group from achieving its goals
92
 or simply disagreement between the two or
more persons on any point.

 Conflict can easily occur in multinational or

multicultural situations, since basic differences in:
 language, norms, personal styles and other cultural
characteristics
 hinder effective communication and set the stage for
conflict.

93
 Transitions in Conflict Thought
 Traditional View of Conflict

◦ The belief that all conflict is harmful and must be

avoided
◦ Prevalent view in the 1930s-1940s

14-94
 Human Relations View of Conflict
◦ The belief that conflict is a natural and inevitable outcome in
any group
◦ Prevalent from the late 1940s through mid-1970s

 Interactionist View of Conflict

◦ The belief that conflict is not only a positive force in a group but
that it is absolutely necessary for a group to perform effectively
◦ Current view

14-95
Forms of Conflict/ Conflict Out Comes

Functional Conflict
•Conflict that supports the
goals of the group and
improves its performance

Dysfunctional Conflict
•Conflict that hinders group
performance

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97
 Functional  Dysfunctional
◦ Increased group performance ◦ Development of discontent
◦ Improved quality of decisions ◦ Reduced group effectiveness
◦ Stimulation of creativity and
innovation ◦ Retarded communication
◦ Encouragement of interest and ◦ Reduced group
curiosity cohesiveness
◦ Provision of a medium for ◦ Infighting among group
problem solving
members overcomes group
◦ Creation of an environment for goals
self-evaluation and change

Stage V: Outcomes
14-98
Types of Interactionist Conflict

 Task Conflict
◦ Conflicts over content and goals of the work
◦ Low-to-moderate levels of this type are FUNCTIONAL

 Relationship Conflict
◦ Conflict based on interpersonal relationships
◦ Almost always DYSFUNCTIONAL

 Process Conflict
◦ Conflict over how work gets done
◦ Low levels of this type are FUNCTIONAL
14-99
 levels of conflict
 Conflict can be arise at different levels:
1. Intra-personal conflict: employees are
expected to perform their respective roles.
◦ However, in reality employees having different
needs and roles are unable to cooperate with
management.
◦ Therefore, intra-personal conflicts arise within
individuals due to frustration, goals, and roles.
2. Inter-personal conflict: it occurs between
two individuals. Two managers competing
for the same promotion. 100
3. Intra-group conflict: Occurs between group
members.
 For instance when an individual violate group
norms when subordinates collectively disagree
with a course of action the boss wants to take
4. Inter-group conflict:. Inter-group conflict occurs
between two or more groups in an organization -
work groups, social groups, etc.
◦ Eg: line and staff conflict or a conflict between
working teams.

101
 Why conflict occur?

 A variety of factors can lead to intra-group and inter-

group conflicts.

1. Organizational Change: Conflicts may arise due to

differing views on the directions to take in the wake of
new developments in the dynamic environment

2. Personality Clashes: People do not think, feel, look or

act similarly

3. Differences in Value Sets: There are different sets of

values and beliefs for different people, which may
sometimes contradict each other. 102
4. Threats to Status: Status in the society, group, or
organization is very important for many individuals.
5. Perceptual Differences: It is quite natural that people
perceive things in different ways, but it is also true that
they fail to appreciate such differences in each other’s
perception.

6. Competition for limited resources: Resources of

organizations are finite. As a result there are times
when groups or individuals fight for resources.

7. Work flow relationship: Where the group

performance is dependent on another group 103
Conflict management Strategies
 The level of conflict in an organization needs to
be carefully managed –

◦ If there is too much, conflict needs to be reduced, and

◦ if there is too little, the level may need to be increased
in a controlled way.

◦ In practical terms, this means that a decision has to be

made about whether to resolve any conflicts or to
stimulate a conflict that exists
104
1. Problem solving: meeting face to face for the purpose of
identifying the problem and resolving it through open
discussion.
2. Super ordinate goal: It’s a technique used to create a
shared goal that cannot be attained without the
cooperation of each of the conflicting parties.

3. Expansion of Resources: Expanding the supply of a

scarce resource (for example, money, promotion,
opportunities, office space).
4. Avoidance:. This strategy calls for a party to withdraw
or ignore the conflict.
5. Smoothing: In this strategy, a person neglects his/her
own concern to satisfy the concern of the other party.
105
6. Compromise: In a compromising strategy, the parties‟
reach a mutually acceptable solution in which each gets
only part of what he or she wanted.
7. Altering the Human Variable: This strategy calls for
using the behavioral change techniques such as human
resources training to alter attitudes and behaviors that
cause conflict.
8. Altering the Structural Variable: Conflict is resolved
through changing the formal organizational structure
and the interaction patterns of conflicting parties
through job redesign, transfers, and the like…
9. Authoritative Command / Impose a Solution: Finally, if
all fails, it may be necessary to impose a solution.
106

However, this has to be done with great care.