Managing Change

Week 7

Tutorial

Change LEADERSHIP
 What you need to learn for this week!

 Two main different types of Management.

 KNOW the terms TRANSACTIONAL and

TRANSFORMATIONAL …define them, explain them,
apply them.

 The difference between Management and Leadership.

 Be able to identify what makes an effective change

Leader.
Comparing management and leadership roles
 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.

Read Virgin Galactic’s story

http://www.virgingalactic.com/human-spaceflight/our-vehicles/
 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
 Create additional sponsors at different levels of the
organisation
 Employ symbolic and substantive actions
 Model the way
 Communicate the message repeatedly
 More
‘leadership’ or
Management vs. Leadership transformation
al activities and
less managerial
or transactional

(visionary; innovative; initiates change)

activities are

High
Senior observed in
Manager higher
positions
compared with
lower positions
Leadership

Middle
The character Manager
of
management
tasks change Line
with Manager
progression
up the
Low

corporate
ladder Low Management High
(rational; problem-solving; structured)
 Caldwell (2003): Models of Change AGENTS
from Lect 6


Leadership models: Change agents = senior managers who
identify and deliver strategic / transformational change.

Management models: Change agents = middle-level
managers/functional specialists who deliver / support
specific elements of strategic change programmes
/projects.

Consultancy models: Change agents = external or internal
consultants who can be called on to operate at any level.

Team models: Change agents = teams that operate at
various levels in an organisation - composed of requisite
managers, employees and consultants necessary to
accomplish the particular change project set for them.
Carnall (2003) on the Role of Managers from Lect 6

•Decision-making: includes intuition and vision, the ability to

gather and utilise information, understanding the practical and
political consequences of decisions, the ability to overcome
resistance, the skill to understand and synthesise conflicting views
and to be able to empathise with different groups.
•Coalition-building: comprises the skills necessary to gain the
support and resources necessary to implement decisions. These
include checking the feasibility of ideas, gaining supporters,
bargaining with other stakeholders and presenting new ideas and
concepts in a way that wins support.
•Achieving action: includes handling opposition, motivating
people, providing support and building self-esteem.
•Maintaining momentum and effort: involves team-building,
generating ownership, sharing information and problems, providing
feedback, trusting people and energising staff. (Carnall, 2003: 125–126)
 Activity – 1

VIEW: Compare with Branson’s comments on Leadership

 https://www.youtube.com/watch?v=YP1KSHy69H0

 https://www.youtube.com/watch?v=nNJtyWOw-Tk

1: Clarify first the difference between a leader and a manager

2: Was Branson a leader or a manager? Evidence?

 Branson – top three leadership principles
 Branson: 1. Listening is one of the most important skills that
anyone can have. Listening enables us to learn from each other,
from the marketplace, and from the mistake that must be
made in order to get anywhere that is original and disruptive. I
learn so much from guests and employees that way.
 2. Learn: Learning and leadership go together. Too much credit
goes to me for what we have achieved at Virgin but the
successes happens from working and learning with some of the
world’s most inspiring and inspired people.
 3. Laughter: My number one rule in business, and in life, is to
enjoy what you do. Running a business involves long hours and
hard decisions; if you don’t have the passion to keep you going,
your business will more than likely fail. If you don’t enjoy what
you are doing, then you shouldn’t be doing it.
ACTIVITY 3: Read the article on Nelson Mandela’s leadership below:

When Mandela was imprisoned on Robben Island for 27 years, prisoners who
were with him said watching Mandela walk across the courtyard, upright and
proud, was enough to keep them going for days. He knew that he was a role
model for others, and that gave him the strength to triumph over his own fear.
He also retained a life-long thirst for education and knowledge, completing his
law degree while in jail, and continuing to study through his years of
imprisonment on Robben Island. Mr Mandela was also instrumental in
encouraging fellow political prisoners to continue their education, so much
that warders there would sometimes refer to his prison block as ‘Mandela
University’.
In 1985, Mandela decided that it is the right time to begin to talk to his
oppressor and launched negotiations with the apartheid government.
However, many people thought he had lost it. “We thought he was selling
out”, say Cyril Ramaphosa, then the powerful and fiery leader of the National
Union of Mineworkers. Mandela launched a campaign to persuade people that
his was the correct course. His reputation was on the line. He went to each of
his comrades in prison, and explained what he was doing. Slowly and
deliberately, he bought them along.
“He’s an historical man,” says Ramaphosa. “He was thinking way ahead of
us. Prison gave him the ability to take the long view. It has to; there was no
other view possible. He was thinking in terms of not days and weeks but
decades. He knew history was on his side, that the result was inevitable; it
was just a question of how soon and how it would be achieved. ” “Things
will be better in the long run,” he sometimes said. He always played for the
long run.
During the time I worked with Mandela, he often called meetings of his
kitchen cabinet in his home in Houghton, a lovely old suburb of
Johannesburg. He would gather half a dozen men, Ramaphosa, Thabo Mbeki
(who is now the South African President) and others around the dining room
table or sometimes in a circle in his driveway. Some of his colleagues would
shout at him – to move faster, to be more radical – and Mandela would
simply listen. When he finally did speak at those meetings, he slowly and
methodically summarised everyone’s point and then unfurled his own
thoughts, subtly steering the decision in the direction he wanted without
imposing it. The trick of leadership is allowing yourself to be led too. “It is
wise,” he said, “to persuade people to do things and make them think it was
their own idea.”
When Mandela was running for the presidency in 1994, he knew that
symbols mattered as much as substance. He was never a great public
speaker, and people often tuned out what he was saying after the first few
minutes. But it was the iconography that people understood. When he
was on a platform, he would always do the toyi-toyi, the township dance
that was an emblem of the struggle. But more important was that
dazzling, beatific, all-inclusive smile. For white South Africans, the smile
symbolised Mandela’s lack of bitterness and suggested that he was
sympathetic to them. To black voters, it said, I am the happy warrior, and
we will triumph. The ubiquitous ANC election poster was simply his
smiling face. “The smile,” says Ramaphosa, “was the message.”

……………
 MGMT3002: Managing Change – Assignment 2 - 25%:
Completed in pairs - 3500 words total.
(Please note each student is to do half of each section as indicated below)
Change Case Study Report - Theory and Concept application.
This assignment is intended to allow you to provide a clear, concise and accurate indication of
your understanding of material covered in the course to date. Close editing of your work by
both parties is crucial. Poor presentation will impact your grade.
1: Introduction: Introduce the Case, briefly summarise what has taken place for the
organisation. (200 words - 5%)

2: PART A: Business Analysis (Two parts for each student) (1700 words total – 30%)

STUDENT 1: To complete Parts I and III. Sign off with your name.
STUDENT 2: To complete Parts II and IV. Sign off with your name.
Using your knowledge of Change Management theory and concept:
i) Analyse the Case to decide what went wrong for the organisation.
ii) Describe the type of change the organisation was experiencing – validate clearly.
iii) Identify the drivers for change and provide argument for the use of three perspectives
which could have been used by management to effectively analyse and then tackle the ‘Firms’
problems.
iv) Describe and substantiate which strategic approach you would recommend that
management use when planning how to implement the changes necessary to ‘save’ the
organisation from collapse.
3: PART B: Leadership (One for each student – please sign off)
(1600 words total– 30%)

The role of leadership and good management is crucial for any business. For this section:
• One student to complete a discussion on a transformational leader’s approach; and
• One student to complete a discussion on a transactional leader’s approach.

Task: Identify the type of change that was occurring in the Case Study business and
present an analysis of how the different type of leader could have or should have or did
respond in order to manage the situation. Link leadership and management theories to
justify your suggestions. Apply change management theory / principles to further support
your argument.

4: References. Structure and quality of written skills (total - 20%)

5: An individual mark out of 15% will be awarded to individual students, reflecting

their application and accuracy, research and analysis of the entire Report. (total -
15%)
 What you need to take away from this week!

 Know and explain the two main types of

Management.

 KNOW the terms TRANSACTIONAL and

TRANSFORMATIONAL …define them, explain them,
apply them.

 Explain the difference between Management and

Leadership.

 Be able to identify what makes an effective change

Leader.
That’s it for today!