Leadership and Change Management

Lesson 1
Date: 6/1/18

BITS Pilani Dr. Swati Alok

Pilani Campus
Introduction – Dr. Swati Alok B.Tech,PGDM,Ph.D

1. Assistant Professor – Economics & Management Department (Hyderabad

Campus)

2. Worked as HR manager in IT companies (5 years) with client Intel, ENOC, Satyam

3. Areas of interest are OB, Human Resource Management, Leadership and

Organizational Behavior, Strategic management

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Learning Methodology

1. Experiential Learning
– Case studies and Leadership Evaluation Exercises

2. Grading scheme

No Name Type Duration Weight Day, Date, Session, Time

EC-1 Quiz-I/ Assignment-I Online - 5% February 1 to 10, 2018
  Quiz-II Online   5% March 1 to 10, 2018
  Lab Test*     15% March 20 to 30, 2018
EC-2 Mid-Semester Test Closed 2 hours 30% 25/02/2018 (AN) 2 PM – 4 PM
Book
EC-3 Comprehensive Exam Open Book 3 hours 45% 08/04/2018 (AN) 2 PM – 5 PM

3. Text book : Leadership, by Richard L Daft, 6th edition, Cengage Learning

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
IBM –CASE

• IBM (1970-1980’s – dominated computer industry

• 1993 – biggest loss ($8.1 billion)- IBM dead
• But in 8 years (2001)- net income (7.7$ billion)
• 1992-2001- share price increased to 800%
• CEO IBM (1993) – Louvis V Gerstner
• Spot emerging trend in IT industry
• Moved from mainframe to service offering complete solution sin
hardware/software/technologies
• Product centric to customer centric
• Demonstrate exceptional ability to visualize future and move into areas of
potential opportunity

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Learning Outcomes : Subject

By the end of this course, student will be able to

LO1 Describe and Analyze the different leadership styles

LO2 Discuss the multiple change theories and Transformation process and apply the
ones suitable to their work context

LO3 Describe the importance of leading by Creating Vision & strategic Direction and
apply the learning to their work context

LO4 Discuss the importance of Shaping organizational value and Culture and
contribute in such activities, as needed

LO5 Describe the importance of Motivation, Empowerment & Leading Change

aspects of an leader and apply the same to their work context

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 BITS Pilani
Hyderabad Campus

Chapter 1 : What does it mean to be a leader?

Part 1: INTRODUCTION TO LEADERSHIP

Chapter Objectives

• Understand the full meaning of leadership : definitions

• Explain how leadership has evolved and how historical approaches apply to
the practice of leadership today
• Recognize the traditional functions of management and the fundamental
differences between leadership and management.
• LEADERS AND MANAGERS
• Identify the primary reasons for leadership derailment and the new paradigm
skills that can help you avoid it.
• ORGANIZATION OF BOOK

2 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Sales engineering Division – cases (pg 28-29)
Sales engineering Division
Summary of the case

• When DGL International, a manufacturer of refinery equipment, brought

in John Terrill to manage its Sales Engineering division, company
executives informed him of the urgent situation.
• Sales Engineered had the highest-paid, best-educated, and least-
productive division in the company.

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Summary of the case :
• Terrill showed concern for the personal welfare
of the engineers.
• Terrill envisioned a future in which engineers
were free to work with customers and join self-
directed teams for product improvement.
• Terrill collected the engineers reports and
showed the stacks of paper to the president.
• He explained that the lack of productivity was
a result of excessive paperwork and reporting
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• Do you think John Terrill is a leader ? Why ?

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 Leadership

Influence based relationship

among leaders and followers who
intend real changes and outcomes
that reflect their shared purposes

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Exhibit 1.1 - What Leadership Involves

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 What Leadership Involves
• Leadership involves influence
• it occurs among people
• those people intentionally desire significant changes
• the changes reflect purposes shared by leaders and followers.

 
• Influence means that the relationship among
people is not passive; it is multidirectional and
non‑ coercive.

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 What Leadership Involves
• Leadership is reciprocal:
superiors influence subordinates
subordinates also influence superiors.
•  Leadership involves creating changes which reflects
purposes leaders and followers share.

• Leadership is a people activity, distinct from administrative

paperwork or planning.
It occurs among people; it is not something done to people
Since leadership involves people, there must be followers.
 

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 Does Leadership Impact Organizational
Performance?

• Research shows leadership matters when:

– Leader is perceived to be responsible and inspirational.
– Leaders throughout the organization are involved in making decisions
and these individuals are knowledgeable about the problem to be
resolved.
– Leaders change, company performance changes.
• Statistical analysis suggests the leader might be responsible for
between 15-45 percent of a firm’s performance.
• Study findings have shown the leader’s activities have a 66
percent probability of achieving a positive outcome in an
organization’s performance.

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Theories of leadership
To understand -1 as it viewed today, it is important to recognize how leadership has evolved over time.
leadership
 

Great man theories

• Leadership was conceptualized as a single Great Man who

put everything together and influenced others to follow
along based on the strength of inherited traits, qualities,
and abilities.
• Early leadership studies adopted the belief that leaders were born with
certain heroic leadership traits and natural abilities of power and
influence.

9 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Trait theories (1920s -1930s)

Leaders had particular traits or characteristics that distinguished them

from non-leaders and contributed to success

• In the 1920s, researchers looked at traits or characteristics, such as

intelligence height, or energy to distinguished leaders. The interest in
leadership characteristics continues today.

• 20 different studies- 80 leadership traits- only 5 traits common

Drive, the desire to lead, honesty and integrity, self-confidence,

intelligence, job-relevant knowledge, and extraversion

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Behavior theories

Leaders’ behavior correlated with leadership effectiveness or

ineffectiveness

In the 1950s, researchers considered how a leader behaved toward followers

whether autocratic or democratic.

how this behavior correlated with effectiveness.

 

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Contingency theories

• Leaders can analyze their situation and tailor their

behavior to improve leadership effectiveness
• Known as situational theories
• Emphasized that leadership cannot be understood in a
vacuum separate from various elements of the group or
organizational situation

Researchers considered the contextual and situational variables that

influence effective leadership behaviors

10 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Theories of leadership -3

Influence theories
• Examined the influence processes between leaders
and followers
• Charismatic leadership - Influence based on the
qualities and personality of the leader

Relational theories
• Focused on how leaders and followers interact and
influence one another
• Transformational leadership and servant leadership
are two important relational theories
11 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Evolution of Leadership : exhibit 1.4

12 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Evolution of Leadership

Leadership Era 1: a pre-industrial and pre-bureaucratic era with small organizations run by a single
individual who hired workers in a stable environment; the era of Great Man leadership and emphasis on
personal traits.

 Leadership Era 2: hierarchy and bureaucracy with organizations so large they require rules and standard
procedures; the “rational manager” directs and controls using an impersonal approach in a stable
environment. (INDUSTRIAL ERA)

 Leadership Era 3: the era of the team leader and the change leader and the emergence of knowledge
work, horizontal collaboration, and a shift to influence theories; leadership is shared to the person with
the most knowledge in an unstable environment. (DOMINANCE OF JAPANESE- 1970’S)

 Leadership Era 4: the digital information age in which everything is changing fast; leaders emphasize
relationships and networks and influence others through vision and values.  
A learning leader is open to learning and change and encourages the growth and development of others
 

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Evolution of Leadership

With respect to Exhibit 1.4, in what paradigm is Terrill? In what paradigm is headquarters?
 

(paradigm : a shared mind-set that represents a fundamental way of thinking about, perceiving,
and understanding the world.)

Implications
 
The implication is that leadership reflects the era or context of the organization and society.
 
Organizations and leaders are struggling with the transition from a stable to a chaotic
environment and the new skills needed
 
Era 3 and Era 4 leadership is the subject of this book.
 

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Framework for
Studying Leadership, L=f(L,GM,S)

• Leadership is a function of both the leader – those being

led – and the complexity of the situational and
environmental context.
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Reality of Leadership

• Although many leaders still operate from an old-paradigm mind-set, they are
increasingly ineffective.
 
• Successful leaders will respond to the new reality.
• The world of organizations is changing rapidly through---globalization, shifting
geopolitical forces, outsourcing, advancing technologies, virtual teams, and e-
business.
• People feel the impact of these trends and must adapt to new ways of working
 
• Economic uncertainty, wide-spread ethical scandals, war, and terrorism make
leaders face a tough job in keeping people grounded, focused, and motivated.
• Rapid environmental changes are causing fundamental shifts from a traditional
to a new paradigm.

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Reality of Leadership

Old Paradigm New Paradigm

1. Stability 1. Change/crisis mgt.
2. Control 2. Empowerment
3. Competition 3. Collaboration
4. Uniformity 4. Diversity
5. Self-centered 5. Higher purpose
6. Hero 6. Humble

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Management and Vision

Management is the attainment of

organizational goals in an effective
and efficient manner through
planning, organizing, staffing,
directing, and controlling
organizational resources.

Vision is a picture of an ambitious,

desirable future for the
organization or team

6 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Leaders versus Managers

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 Leadership vs. Management
MANAGEMENT: LEADERSHIP:
• Provides order, consistency, • Provides change and
and predictability adaptability
• Top-level managers
manage/maintain • Top-level leaders transform
organizations organizations
• Implements a vision • Creates a vision
• Effective managers also lead • Effective leaders also
manage

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Management and Leadership : exhibit 1.5

Management Leadership
Direction Planning and budgeting Creating vision and strategy
Keeping eye on bottom line Keeping eye on horizon

Alignment Organizing and staffing Creating shared culture and values

Directing and controlling Helping others grow
Creating boundaries Reducing boundaries
Relationships Focusing on objects – producing/selling Focusing on people – inspiring and
goods and services motivating followers
Based on position power Based on personal power
Acting as boss Acting as coach, facilitator, servant

Personal Emotional distance Emotional connections (Heart)

Qualities Expert mind Open mind (Mindfulness)
Talking Listening (Communication)
Conformity Nonconformity (Courage)
Insight into organization Insight into self (Character)
Outcomes Maintains stability; creates culture of Creates change and a culture of
efficiency integrity

7 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Leadership is Not Automatic

• Phenomenon wherein individuals can’t advance further because of a

mismatch between job needs and their personal skills and qualities is called as
derailment
• A study compared 21 derailed executives with 20 executives who reached the
top of the company.
• The derailed managers had reached a plateau, were fired, or were forced to
retire early.
– The striking difference between the two groups was the ability to use
human skills.
• By not equating leadership with "greatness" and public visibility, it becomes
easier to see opportunities for leadership every day.
• Leadership that has big outcomes often starts small.
• Leadership involves influence and change toward a desired goal or outcome.
• Leadership is an everyday way of acting and thinking

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Flaws that cause derailment -1

Performance problems
• Failing to meet business objectives because of too much time
promoting themselves and playing politics, a failure to fulfill promises,
or a lack of hard work

Problems with relationships

• Being insensitive, manipulative, critical, and not trustworthy in
relationships with peers, direct reports, customers, and others

Difficulty changing
• Not learning from feedback and mistakes to change old behaviors
• Defensive, unable to handle pressure, and unable to change
management style to meet new demands

13 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Flaws that cause derailment -2

Difficulty building and leading a team

• Poor management of direct reports

• Inability to get work done through others
• Not identifying and hiring the right people

Too narrow management experience

• Inability to work effectively or collaborate outside

their current function
• Failing to see big picture when moved into general
management position over several functions

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Learning to be a leader

Source: Based on “Guidelines for the Apprentice Leader,” in Robert J. Allio, “Masterclass: Leaders and Leadership—Many Theories, But What Advice Is Reliable?”
Strategy & Leadership 41, no. 1 (2013): 4–14.

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Leadership is both art as well as science

By not equating leadership with "greatness" and public visibility, it becomes

easier to see opportunities for leadership every day.
Leadership that has big outcomes often starts small.
Leadership involves influence and change toward a desired goal or outcome.
Leadership is an everyday way of acting and thinking.

It is an art because many leadership skills and qualities cannot be learned from
a textbook.
Leadership takes practice and hands-on experience. Learning about leadership
research helps people analyze situations from a variety of perspectives and
learn how to be effective as leaders.
Leadership is a science because a growing body of knowledge and objective
facts describe the leadership process and how to use leadership skills to
attain organizational goals.

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Leader Training
– More likely to be successful with individuals who are
high self-monitors than with low self-monitors.
– Individuals with higher levels of motivation to lead are
more receptive to leadership development
opportunities
• Can teach:
– Implementation skills
– Trust-building
– Mentoring
– Situational analysis

16–38
 Skill Development in Leadership
• Studying the textbook assists with developing
your personal leadership skills through the
following textbook elements:
– Conceptual information and behavioral guidelines
– Conceptual information demonstrated by
examples and brief descriptions of leaders in
action
– Experiential exercises
– Practice in natural settings

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 BITS Pilani
Hyderabad Campus

Introduction to change management

What do we mean by Change?

Technological change:
Typewriter  Computer
Library  world wide web
Telephone  mobile
Lifestyle change:
• Dual Career Couple
• Expatriate assignments
• Joint to nuclear family

17 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 External and Internal Forces for Change

• External • Internal
• Changing consumer • New organizational
needs and wants strategy
• New governmental laws • Change in
• Changing technology composition of
• Economic changes workforce
• New equipment
• Changing employee
attitudes

12–42
 Organizational Change and Change
Agents
• Organizational Change
– Any alterations in the people, structure, or
technology of an organization
• Change Agents
– Persons who act as catalysts and assume the
responsibility for managing the change process.

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Three Types of Change

12–44
 Managing Resistance to Change
• Why People Resist Change
– The ambiguity and uncertainty that change
introduces
– The comfort of old habits
– A concern over personal loss of status, money,
authority, friendships, and personal convenience
– The perception that change is incompatible with
the goals and interest of the organization

12–45
 Thank you
BITS Pilani
Pilani Campus