Dire-Dawa University

School of Business and Economics

Department of management

Course: Leadership and Change Management

(MGMT2083)

Group Assignment (G-2)

ABEL LEMA
Group leader Names: ID No.: E/261/11
1. ABEL SHIMELE E/260/11
2. ABRAHAM G/EGZIABHER E/0056/10
3. BAMLAK TESFAYE E/279/11
4. BETSEHA ZELEKE E/285/11
5. NATNAEL SINTAYEHU E/386/11
6. SINTAYEHU NEGASH E/ 678/11
7. TSION ESHETU E/408/11
8. WASIHUN TARIKU E/409/11

Submitted to: Behaylu W. (Meba)

Submission Date: 19/04/2021GC

 Acknowledgement

A lot of thanks to the Almighty God for His willingness, without his this assignment paper is
unthinkable.

In preparation of our assignment, we had to take the help and guidance of our teachers, who
deserve our deepest gratitude. As the completion of this assignment gave us much pleasure, we
would like to show our gratitude Ms. Behaylu W., who gave us the golden opportunity to do this
assignment to know the roles of leadership in organization development and how write to
different term paper by giving a good guideline for assignment. We would also like to expand
our gratitude to all those who have directly and indirectly guided us in writing this assignment.

Many people, especially our classmates have made valuable comment suggestions on this paper
which gave us an inspiration to improve the quality of the assignment.

Leadership Group Assignment Page i

 Table of Contents
Contents pages
Acknowledgement ................................................................................................................ i

1. INTRODUCTION.................................................................................................... 1

1.1Background......................................................................................................................................................... 1

1.2 Objectives ............................................................................................................................................................ 1

2. Introduction organization Leadership and Their Theories ........................................ 2

2.1 Leadership.......................................................................................................................................................... 2

2.2 The Organizational Leadership .......................................................................................................... 2

2.3 Leadership Theories......................................................................................................................................... 3

3. Organizations change and the role of leadership in organization development 6

3.1 Organization ................................................................................................................................................ 6

3.2. Change ........................................................................................................................................................... 6

3.3 Organizational Change......................................................................................................................... 7

3.4 Importance of organizational change ............................................................................................... 9

3.5. Organizational development.......................................................................................................................10

3.6 Role of Leadership in Organizational Development ..............................................................11

4. Summary ........................................................................................................................ 15

References .......................................................................................................................... 16

Leadership Group Assignment Page ii

1. INTRODUCTION

1.1 Background

Leadership is the process by which a person exerts influence over other people and
inspires, motivates and directs their activities to help achieve group or organizational
goals. Development, on the other hand focuses on building knowledge and skills of
organizational members so that they are prepared to take on new responsibilities and
challenge (Gareth, 2003). Organizational development may be considered as the theory
and practice of planned systematic change in the attitudes, beliefs and values of the
employees through creation and reinforcement of long term training programs.
Organizational development is action oriented. It starts with a careful organization -wide
analysis of the current situation and of the future requirements and employs techniques
of behavioral science, such as behavior modeling, sensitivity analysis and transactional
analysis. Its objective is to enable the organization in adopting better to the fast changing
external environment of new markets and technology.

1.2 Objectives

 To explore the role of leadership in organizational development

 To draw conclusions and recommendations about the role of leadership in
organizational development

Leadership Group Assignment Page 1

 2. Introduction organization Leadership and Their Theories
2.1 Leadership
Leadership and its role are pertinent issues for the business and organizations now days.
The ―Leaders are individuals who establish direction for a working group of individuals and
who gain commitment from this group of members to established direction and who then
motivate members to achieve the direction's outcomes ‖ (Conger, 1992). The t e r m
leadership can be viewed through multiple angles and concepts. Traditionally leadership is a
set of feature owned by the leader or it is a social phenomenon that comes from relationship.

These concepts can give different opinions about the definition of leadership. It is a
continuous debate that whether the leadership comes from the personal qualities of a leader
or a Leader makes followership through what she /he does or believes (Grint 2004).
Grint also highlight position problems with the leadership, which explores, is the leader a
person in charge? With the true authority to decide or implement, or it is only a person in
front who takes his/her directions for someone. Recent reviews take leadership as ―a process
whereby an individual influences a group of individuals to achieve a common goal (Northouse
2004). Another view about leadership is that ―leadership is like the Abominable Snowman,
whose footprints are everywhere but who is nowhere to be seen‖ (Bennis and Nanus 1985).

In short leadership /leader is either a person who is in charge and has authorities to take
decision and also h a s powers to implement his/her decisions or a process having a
set of other authoritative process about organizational, personal or social process of
influence for which the groups, teams or organizations can do more to increase their ability.
The selection of the leader not only depends on the personal characteristics of the person,
but also on the social and cultural factors along with his/her exposure towards life (Bolden
2010).

2.2 The Organizational Leadership

Organizational leadership is not a magic that one person has and others don’t have. It is also
not all about the ordered by boss and then observed by him that how much these ordered are
obeyed. The leadership of an organization is instead, an ability of management to get and

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protect the company benefits by realizing employees need and company targets and bringing
them together to work in a better environment to achieve the common goals (Sansom,
1998). Organizational leadership has a central role in evolution and cultivating an
organization. It can help the member of an organization and working teams to face the
challenges and to work for organizational goal in a worthy way.

Dunphy and Stace describe an organization leadership as a person who can promote change in
an organization by its vision and strategy (Dunphy and Stace 1994 in Senior and F leming
2006). In this era of rapidly changing business trends and increased customer demands,
the role of leadership is more crucial now a days. The strategic leadership is eagerly
needed for organizations, which is well capable to predict the essential alterations and
changes, in advance e and create required commitment and highly suitable atmosphere for
worker and teams to understand and adopt these changes successfully. This action by
leaders is decisive not only for the effectiveness of the organization but also for its very
survival (Bass, 1990; Burke & Cooper, 2004).

As the business goals can’t be achieved without adopting any strategic business process,
likewise the organizational success and sustainability also can’t be accomplished without t a
strategic role of leaders. From allocation of resources to alignment, from perception of thing
to decide future focusing, form commitment and motivating the teams to get the goals of an
organization, to confirm the sustainable growth, it’s a leadership whose footprints are
everywhere (McGuire, 2003).

2.3 Leadership Theories

There are different theories presented by the scholars to explain and identify the
characteristics of leadership in an organization, in terms of their effectiveness.

Contingency Theory
Fiedler presents the contingency or situational theory of leadership by highlighting the
three important factors which has effect on the performance of leaders. Some of them are listed
below:
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 Leader-Member Relations: It describes that what are the relations between employees
and the leader and up to what extent the employees have trust on leader’s and how much
the leader can attract h/her employees and subordinates and up to what level the
leadership is source of inspiration for them.
 Task Structure: This factor talks about the nature of jobs for employees whether they are
routine or non-routine, in order to manage and get the maximum output of employees
work.
 Position Power: The position power is the power of leadership which s/he has in the
organization. The leadership with the power of decisions and their implementation is
needed to handle and manage the organizational issues with confidence (F iedler, 1996).

Path-Goal Theory
Path Goal theory claims that the most successful leaders are those who keep their employees
and subordinates motivated defining and making the path of work clear to them through
their clear vision. The main characteristics of a leadership according to this theory are to
motivate their teams to meet the organizations goals by keeping control on the outcome of
their work and activities. Leaders also appreciate the employees and give rewards on their
good work, and to raise and maintain the enthusiasm b y giving them confidence about their
ability as well as to work (House 1971).

Managerial Grid Theory

Robert R. Blake and Anne Adams elaborated the theory of leadership grid. This theory
describes the concern of leadership with the customers demand based production by focusing
the better management of teams by leadership styles. This approach may be difficult to
implement in certain circumstances. In the theory leaders keep their teams motivated and
flexible to realize the need for change and accept it (Blake R and Anne Adams 1991).

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Transformational Leaders hip theory

The transformational leadership means when leader transforms, or changes, his/her

subordinates in three significant ways. These ways may lead to win the trust of subordinates for
leaders. That can increase the output of their work and doing job activities which can
help to achieve the organizational goals in better ways. Some main characteristics of
transformational leaders are that they increase the employee’s confidence and awareness
so they can enhance their performance, and also make them able to understand their
personal outgrowth and development (Burns 2003).
The transformational leadership also increases the level of dedication and motivation
for employees to work for the betterment of organization inspite of their personal interest.

The qualities of transformational leadership may include:

 Ability to work as change agents  Good learning abilities.

 Courage to take bold steps.  Strong mental model to work in complex
 Ability to trust on others. situation.
 Value driven characteristics.  A clear vision

Five common qualities of good leadership which can prove more beneficial for the firms, if the
leadership has these qualities along with their vision:

(a) Formulate strategies and plans to achieve their visions (Bass 1985).
(b) Communicate their visions to promote changes and widen support of the visions
(Bass, 1985).
(c) Align people and supporting systems to suit their visions to make it sure that there will
be no procedural and structural hurdles in the way of achieving vision, and provide the
good atmosphere to employees to work with dedication to make the vision in to
reality (Nanus 1992).
(d) Empower their people to act consistently with the new vision and help

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 sustain commitment to it In order to get their maximum work output and let
them work confidently for achieving the organizational goals. (Nanus 1992)
(e) Motivate their followers so that they work by using their maximum abilities and
complete the allocated tasks within the given time (Bass 1985).

3. Organizations change and the role of leadership in organization

development
The simplest definition of successful organizational change is the organizational change
which gets its goals and targets successfully on which the change initiation process
is based (Orlikowski 1996).

3.1 Organization
The term organization is a very broad term and can be described in multiple ways.
Traditionally an organization is intentionally designed social unit that consists of a team or a
group of people that work together for the benefits of an organization on a continuous
basis to get the organizational targets and goals. For example the manufacturing and
service firms are organizations, and so are schools, hospitals, churches, military units,
retail stores, police departments, volunteer organizations, start-ups, and local, state
government agencies (Hatch 1997).

Senior and Fleming describes organization as a combination of individuals, people or groups

trying to influence others to achieve certain objectives by using different processes
and technologies in a structured way. The y May consists of social arrangements of certain
groups in a formal way to achieve certain objectives and having well defined boundaries and
limitations (Senior & F leming 2006).

So the organizations can be taken as group of people, team or social entities that are
structured, goal directed and to work for a common task by sharing and coordinating their
knowledge, skills experiences and activities.

3.2. Change
The word change is taken as a result normally. A simple definition of change in the Sansom

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and Reid O xford children’s Dictionary (1994:195) defines the change as to become different.
Van der Merwe tells that the word change is obtained from the Latin word to better (Van der
Merwe 1991).

In general the word change means is to alter, to make something different or better
or transformation of any existing thing by adding some values or giving up for something else.
The change is usually planned and there are some responses against changes. The respondent
thinks first that what has to change and what have to give up. Most authors think that
respondents more concentrate on what have to give up rather than what has to gain because
the giving up is more curtail. Different types of recourses are used/and or can be used to
bring changes according to the nature and environment. Changes are always adopted for the
good reasons and the subject of interest is always the outcome of the effort.

Change may be any action or set of actions having some directions to do something new or
to amend something. Changes always require commitment and directions. Change is not
always positive but there are several ways which strengthen the commitment to happen the
certain types of changes (Boston.MA, 2000).

3.3 Organizational Change

Organizational c h a n g e means that the organization is undergoing or has undergone
transformation. It defines their success story or any type of experience or failure (Hage,
1999). The organizational change is the set of different actions that results shifting in
directions and/or processes that affect the way in which organizations work before (Hage,
1999). The need for organizational change starts when organizational management feels
dissatisfaction from the current situation. Organizational changes may be planned or
unplanned but in both cases the organizational changes are very important and sometimes
become crucial to handle the changes. Leadership planning and vision is most important.

The planned changes are more related to the management in which management put
deliberate effort to make something happen. Strong commitment and systematic approach is
required in planned change and the most important thing in planned changes is based on the
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vision of the leader and stated objectives. Changes may affect the strategies, tasks, or
factions within the organizations.

There are different kinds of changes according to the nature of organization and its
environment, some organizations adopts small changes (incremental changes) while ot hers
may go deep towards the organizational transformation usually known as corporate
transformations (radical changes) which requires the changes in broader scale and are
difficult to handle. (Boston.MA, 2000). There are further three phases of organizational
change which organizations usually adopt.
These are unfreezing, moving and refreezing. (Senior & F leming, 2006) Unfreezing is
about changing the attitudes and behavior of the employees and working environment.
This is very important type of change beca use while going through any type of change it
is important to create a need of change among all the participants.

The leader’s role is also very important in unfreezing because it requires a well structured way
of implementation the change by managing the behavior and attitudes of people working
together. It also requires strong commitment of all the people to work together for a stated
common vision. Moving is the next phase in which organizational top management
identifies, plan, and implement the approp riate strategies. In this phase it is also decided that
either organization has to go for incremental or radical changes. The vision of the leader is
also very important for planning and implementing the strategies. All the strategies are shaped
in the moving phase. The next step is to refreeze the change situation in which leader assists
in stabilizing the changes so that it becomes integrated into status quo. This is most important
to understand for the leaders that how to refreeze the changes because if refreezing is
incomplete or not mange properly the change will be ineffective and the pre-change
behaviors will be resumed. Refreezing always encourages the possibilities of the further
changes.

The leadership qualities are very important for organizational changes because it is
most important to handle the resistance, confusion, exploration and commitment of

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management. There are some predictable behaviors associated with the change stages and the
effective leader always perceive these changes in efficient manner and respond
appropriately to get the teams commitment. Change leader is always associated with the
planned change and constructively deals with the human emotions (Senior & F leming, 2006).

The organizational change in brief, is an intentional effort made by organization

leader/leadership/manager to take the organization towards betterment. There could be
many reasons or motivations behind the change process, including external or internal
pressures for change, technological, social or economic factors. Moreover the vision of an
organizational leader/leadership and its innovative ideas can also be reason behind the
organizational change process.

3.4 Importance of organizational change

In order to improve the internal and external functionality, organizations need changes and it
is the demand of time (Caetano, 1999). An organization that does not adopt changes
cannot survive long in market (Boston. MA, 2000).Organizational changes provide different
significant benefits e.g. it improves competitiveness, improves financial performance, enhances
employees and customer satisfaction and most important is that it leads organization towards
continuous improvement and sustainability. These are organizational benefits and not every
individual in any organization can get benefits personally from these changes but every
individual working in an organization, usually have common goals and objectives and
these changes made the organization as a whole stronger (Boston.MA, 2000).

The change process is very challenging and important for organizations and can lead
an organization towards a path of success. It can also make them capable to meet future
demands and to compete with other market player in effective way. (Robbins, 1999) Ulrich
also highlight that change for organizations is necessary to deal with the diversities and the
complex market situations (Ulrich, 1998). There are different forces that influence organization
for change and these forces may create expectations of improved efficiency and better
services, usually external forces leads towards innovation. When organizational changes are
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 well planned and carried in a structured way it leads to continuous improvement and
organizational innovation (Boston.MA, 2000).

Organizational change process must be managed in order to keep organizations moving

toward organizational new vision and its stated goals and objectives (Boston.MA, 2000).
Nowadays business trends are changing rapidly and quickly in the globe and the
organizations that don’t change cannot survive (Hage, 1999). Now organizations are facing
both internal and external forces pressure that makes change inevitable. There is always a
pressure on organizations to balance these forces (Senior & F leming, 2006). It is also very
important for the organization to manage the demands and expectations of the customers,
employees and management; therefore there is always a need for change to meet these
expectations.

3.5. Organizational development

Organizational development is a critical and science-based process that helps organizations
builds their capacity to change and achieve greater effectiveness by developing, improving, and
reinforcing strategies, structures, and processes.
There are a few elements in this definition (adapted from Cummings & Worley, 2009) that
stand out.
 Critical and science-based process. OD is an evidence-based and structured process. It is
not about trying something out and seeing what happens. It is about using scientific
findings as input and creating a structured and controlled process in which assumptions are
tested. Lastly, it is about testing if the outcomes reflect the intention of the intervention.
 Build capacity to change and achieve greater effectiveness. Organizational
development is aimed at organizational effectiveness. It, therefore, has a number of
(business) outcomes. These can differ between organizations, but usually, they do include
financial performance, customer satisfaction, organizational member engagement, and an
increased capacity to adapt and renew the organization. These are not always clear-cut.
Sometimes it is about building a competitive advantage, in whichever way we define that.
 Developing, improving, and reinforcing strategies, structures, and processes. The last
part of our definition states that organizational development applies to changes in strategy,

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 structure, and/or processes. This implies a system-approach, where we focus on an entire
organizational system. This can include the full organization, one or more locations, or a
single department.

Organizational design has become more crucial over time. Today’s world is characterized by
Volatility, Uncertainty, Complexity, and Ambiguity (VUCA). This VUCA world requires new
agility from organizations, and organizational development is the means to that end.
In organizational development, the main stakeholders are both internal and external to the
company. Management and employees are internal stakeholders. External stakeholders include
customers, investors, suppliers, communities and governments.
Organizational development is a critical process that should be monitored with the right HR
metrics. These strategic metrics will help you manage your organization’s ability to change.
Globalization leads to a much greater interconnectedness and opens up organizations to world-
wide opportunities and threats.
Finally, business systems become better at measuring relevant data, changing the way success
is measured. On top of that, advanced people analytics can help to further drive organizational
outcomes.

3.6 Role of Leadership in Organizational Development

Leadership plays an important role in the development of any organization. No organization can
work efficiently without effective leadership. Leadership is an important function of the
management which helps to enhance productivity and to achieve organizational goals. In
fact., leadership is an essential part and a crucial component of effective management which
helps to maximize efficiency and achieve organizational goals.

Following are the main roles of a leader in an organization development:

Provide a Vision

Providing a vision for the entire healthcare team is the single most important role of the practice
owner. Employees cannot be expected to participate in a common effort if they don’t know the

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goals of the practice. When team members know the vision and goals of the practice, they are
more focused and understand how their individual role helps to drive the success of the business.

Establish Effective Organizational Structure and Communication Protocols

Set up a clearly defined organizational structure which includes an organizational chart outlining
the chain of command and protocols for effective communication. Members of the healthcare
team need to understand who they report to when they have questions or concerns. To facilitate
effective communication and efficiency, develop communication protocols. Many practices find
it helpful to use email, hospital newsletters, and memos to augment their one-on-one
communication and staff meeting interactions. The type of communication method utilized
should be appropriate for the content of the message. Memos are fine to convey announcements
and information on minor issues. Face-to-face meetings are necessary to discuss important
issues or convey information that is sensitive or may result in questions.

Be an Effective Role Model

Demonstrate the behavior desired from the rest of the healthcare team. Practice owners that
display outbursts of anger, make snap decisions with no regard to the potential outcome for the
staff, demonstrate uncaring attitudes, show favoritism for some employees, withhold information
from the staff, procrastinate on important decisions, tolerate lack of accountability, demonstrate
inconsistencies in client service or fail to listen to their employees will not be as respected by the
team and likely will not be as successful in achieving their business goals.

Inspire and Motivate

The definition of leadership is to ―inspire, influence and guide others to participate in a common
effort.‖ Good leaders don’t just bark orders or hand out directives with no explanation. Instead
they use effective communication and motivation techniques to facilitate action by their
teams. Leaders that inspire and motivate their teams solicit input from employees, keep team
members informed, give timely and specific feedback regarding job performance, ensure training
needs are met and hold employees accountable.

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Delegate and Empower

Good leaders surround themselves with the right people in the right jobs. This facilitates being
able to lead rather than manage. For practice owners, this starts by hiring an effective manager
or administrator. Depending on the size of the practice, an office manager, a practice manager or
a hospital administrator is the highest management position. Practice owners need to begin the
process of effective delegation and empowerment with this individual. All too often, veterinary
practices don’t have a practice manager with the necessary skills for their position or the practice
owner unwittingly sabotages this person’s success by overloading them with responsibility or
neglecting to empower them to achieve practice goals.

Effective Time Management

Part of being an effective leader includes effective time management. If you spend most of your
time fielding complaints and reacting to problems, this may be a sign that you are not delegating
effectively or empowering team members. Read some books or articles on time management
and create action steps to improve.

In addition to above roles, the importance of leadership in organizational development

cannot be denied

 Influencing the behavior of people: A leader impresses his/her subordinates with his
leadership ability. He/she brings them under his/her control in such a way that they put in
their best efforts to achieve the goals of the organization. Good leaders usually get good
results through their followers.
 Helps employees in fulfilling their needs: A leader establishes personal relationship with
his/her subordinates and tries to meet their requirements. People follow a leader because
he/she provides them security and the opportunities to earn wealth, gives them the right to
work and tries to understand their feelings. Employees willingly accept him/her because
he/she takes care of their needs. Consequently, they work with complete dedication and
enthusiasm.

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 Introducing required changes: The business environment is changing at a quick pace, so in
order to face the changing environment; many alterations have to be introduced in the
organization. Since the people already happen to be under the influence of the leader, he/she
can easily make them agree to implement these changes. In this way, the possible resistance
to the change is eliminated with the strength of leadership ability.
 Solving conflicts effectively: A leader can effectively solve every type of conflict be it
employee vs. employee or employees’ vs. employer, under the weight of his influence. A
leader allows his followers the liberty to express their views. That is the reason that he easily
understands the reality of the conflict, in this way, by understanding the nature of the conflict
he tries to provide timely solution and minimizes the possibility of adverse results.
 Training and Development of Subordinates: A leader helps in the training and
development of the employees. He makes them aware of the modern techniques of work. In
addition, he/she makes it possible for them to be good leaders in future.
 Setting a clear vision: This means Influencing employees to understand and accept the
future state of the organization. A good leader will influence his followers to perform their
duties by explaining the vision and the importance of their role in the outcome.
 Motivating and guiding employees: This involves finding out the needs of the employees
and fulfilling them. It is important to define the employees’ role in the work process and
provide them with the tools needed. A good leader will explain the task and be available to
assist them if they run into a problem.
 Building morale: This involves pulling everyone together towards a comment goal. A good
leader will let the employees’ know how much their work is appreciated. A simple gesture
like providing praise for a task well done, or throwing a party to recognize small
achievements, will regenerate their spirits.

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 4. Summary

While talking about organizations development the leadership and its role are the most
concerning issue in managing organizations and organizational change. It is accepted by
scholars that organizational leadership has a central role in evolution and cultivating an
organization. It can help the member of an organization and working teams to face the
challenges and to work for organizational goal in a worthy way. The role of a leader is also
very prominent while addressing the change issue for organizations.
There is a great importance of leadership in organizational development. The role of leaders,
throughout an organization, is critical to the success of organizational development interventions.
Creating and maintaining worthwhile businesses require an understanding of the role of
leadership in addressing personal development of employees. Happiness and contentment is a
common goal of everyone and the rest of the things are possibly means to that goal.

Personal outcomes of employees like meaning in life and individual well-being have become an
important concern for organizations in the extreme competition for attracting and retaining
talent. Meaning in life makes one’s life purposeful and subjective well-being is about being
happy; these are important dimensions of anyone’s life, and people expect work organizations to
contribute to them. Focusing only on work-related outcomes may not be sufficient anymore.

There is a need to better understand the processes by which desirable personal outcomes of
employees can be enhanced. Leadership motivates the people to a higher level of performance
through their strong human relations. It is an important function of management which helps to
maximize efficiency and to achieve organizational goals, so managers must have traits of
a leader.

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