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Chapter16LeadershipandChangeCopyright©2022McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.ChapterOutlineIntroductionTherationalapproachtoorganizationalchangeTheemotionalapproachtoorganizationalchange:CharismaticandtransformationalleadershipBass’stheoryoftransformationalandtransactionalleadershipLeadershipandChangeThereisnothingmoredifficulttotakeinhand,moreperiloustoconduct,ormoreuncertainofsuccess,thantotaketheleadintheintroductionofaneworderofthings.NiccolòMachiavelli,writer.IntroductionAlthoughleadingchangeisperhapsthemostdifficultchallengefacinganyleader,itmaybethebestdifferentiatorofmanagersfromleadersandofmediocrefromexceptionalleaders.Bestleadersarethosewho:Recognizethesituationalandfollowerfactorsinhibitingorfacilitatingchange.Paintacompellingvisionofthefuture.Formulateandexecuteaplanthatmovestheirvisionfromadreamtoreality.TheRationalApproachtoOrganizationalChangeBeer’smodel.Roadmapforleadershippractitionerswhowanttoimplementanorganizationalchangeinitiative.Diagnostictoolforunderstandingwhychangeinitiativesfail.Amountofchange,C,equalstheproductofdissatisfaction,D,model,M,andprocess,P,greaterthanresistance,R.ProductofD,M,andPisamultiplicativefunction–increasingdissatisfactionbuthavingnoplanwillresultinlittlechange.Assertsthatorganizationalchangeisasystematicprocessandthatlarge-scalechangescantakemonthsoryearstoimplement.Dissatisfaction,DFollowerswhoarerelativelycontentarenotapttochange.Malcontentsaremorelikelytodosomethingtochangethesituation.Follower’semotionsarethefuelfororganizationalchange,andchangeoftenrequiresaconsiderableamountoffuel.Thekeyforleadershippractitionersistoincreasedissatisfactiontothepointwherefollowersareinclinedtotakeaction,butnotsomuchthattheydecidetoleavetheorganization.Model,MHasfourcomponentsEnvironmentalscanningVisionSettingofnewgoalstosupportthevisionNeededsystemchangesSystemsthinkingapproach:
Viewstheorganizationasasetofinterlockingsystemswherechangesinonesystemcanhaveintendedandunintendedconsequencesforotherpartsoftheorganization.Siloedthinking:
Involvesoptimizingonepartoftheorganizationattheexpenseofsuboptimizingtheorganization’soveralleffectiveness.Figure16.1:TheComponentsofOrganizationalAlignmentAccessthetextalternativeforslideimages.Process,PChangeinitiativebecomestangibleandactionablebecauseitconsistsofthedevelopmentandexecutionofachangeplan.Changewilloccuronlywhentheactionstepsoutlinedintheplanareactuallycarriedout.Thebestwaytogetfollowerscommittedtoachangeplanistohavethemcreateit.Leaderswhoaddressshiftsinstylesandinappropriatebehaviorsswiftlyandconsistentlyaremorelikelytosucceedwiththeirchangeinitiatives.Resistance,RExpectation-performancegap:Differencebetweeninitialexpectationsandreality.Canleadtoresistanceifnotmanagedproperly,causingfollowerstorevertbacktooldbehaviorsandsystemstogetthingsdone.Leaderscanhelpfollowersdealwiththeirfrustrationtowardchangesby:Settingrealisticexpectations.Demonstratingahighdegreeofpatience.Ensuringthatfollowersgainproficiencywiththenewsystemsandskillsasquicklyaspossible.Figure16.2:TheExpectation–PerformanceGapAccessthetextalternativeforslideimages.Figure16.3:ReactionstoChangeAccessthetextalternativeforslideimages.Figure16.4:TheRationalApproachtoOrganizationChangeandtheInteractionalFrameworkAccessthetextalternativeforslideimages.ConcludingThoughtsabouttheRationalApproachto
OrganizationalChangeTwoleadershipandmanagementskillsthatmaybevitallyimportanttodrivingchange.Adaptiveleadership:Involvesbehaviorsassociatedwithbeingabletosuccessfullyflexandadjusttochangingsituations.Learningagility:
Capabilityandwillingnesstolearnfromexperienceandapplytheselessonstonewsituations.TheEmotionalApproachtoOrganizationalChange:CharismaticLeadershipCharismaticleadersarepassionate,drivenindividualswhocanpaintacompellingvisionofadifferentfuture.Thisvisionhelpsthemgeneratehighlevelsofexcitementamongfollowersandbuildstrongemotionalattachmentswiththem.Combinationofthevision,excitement,andpersonalattachmentscompelfollowerstoputingreaterefforttomeetorganizationalorsocietalchallenges.Charismaticmovementscanresultinpositiveornegativeorganizationalorsocietalchanges.MaxWeber’sTypesofAuthoritySystemsTraditional
authoritysystem:
Traditionsorunwrittenlawsofthesocietydictatewhohasauthorityandhowthisauthoritycanbeused.Legal–rational
authoritysystem:
Peoplepossessauthoritybecauseofthelawsthatgovernthepositionoccupied.Charismaticauthoritysystem:
Peoplederiveauthoritybecauseoftheirexemplarycharacteristics.JamesMacGregorBurns’sTypesofLeadershipsTransactional
leadershipOccurswhenleadersandfollowersareinsometypeofexchangerelationshiptogetneedsmet.Transformational
leadershipChangesthestatusquobyappealingtofollowers’valuesandtheirsenseofhigherpurpose.Leadersareadeptatreframing
issues.Alltransformationalleadersarecharismatic,butnotallcharismaticleadersaretransformational.Bothcharismaticandtransformationalleadersstrivefororganizationalorsocietalchange.Transformationalleadersarealwayscontroversial.NewerTheoriesofCharismaticorTransformationalLeadershipCongerandKanungo’sstagemodel:Differentiatescharismaticfromnoncharismaticleaders.Charismaticleadersassessthecurrentsituationandpinpointproblemswiththestatusquo,articulateavision,andbuildtrustintheirvisionbypersonalexample,risktaking,andtheirtotalcommitmenttothevision.TheorybyHouseandhiscolleagues:Describeshowcharismaticleadersachievehigherperformancebychangingfollowers’self-concepts.AvolioandBass’stheory:Viewstransactionalandtransformationalleadershipasindependentleadershipdimensions.Figure16.5:FactorsPertainingtoCharismaticLeadershipandtheInteractionalFrameworkAccessthetextalternativeforslideimages.Followers’ResponsestoChangeMaliciouscompliance:Thisoccurswhenfollowerseitherignoreoractivelysabotagechangerequests. Compliance:Thistakesplacewhenfollowersdonomorethanabidebythepoliciesandproceduressurroundingchangerequests. Cooperation:Followerswillinglyengageinthoseactivitiesneededtomakethechangerequestbecomereality.Commitment:Followersembracechangerequestsastheirownandoftengotheextramiletomakesureworkgetsdone.Charismaticandtransformationalleadersareadeptatgettingfollowerscommittedtotheirvisionofthefuture.SituationalCharacteristicsSituationalfactorsplayanimportantroleindeterminingwhetheraleaderisperceivedascharismatic.CrisesSocialnetworksRestructuringororganizationaldownsizingTimeConcludingThoughtsabouttheCharacteristicsof
CharismaticandTransformationalLeadershipCharismaticleadershipismostfullyunderstoodwhenoneconsidershowleaderandsituationalfactorsaffecttheattributionprocess.Itisunlikelythatallthecharacteristicsofcharismaticleadershipneedtobepresentbeforecharismaisattributedtoaleader.Charismaticleadershipcanhappenanywhere.Charismaticleadershipisatwo-waystreetbetweenleadersandfollowers.Evidenceshowsthatcharismaticortransformationalleadersaremoreeffectivethantheirnoncharismaticcounterparts.Bass’sTheoryofTransformationalandTransactionalLeadershipTransformationalleaderspossessgoodvision,rhetorical,andimpressionmanagementskillsandusethemtodevelopstrongemotionalbondswithfollowers.Transformationalleadersaremoresuccessfulbecauseoffollowers’heightenedemotionallevelsandwillingnesstoworktowardaccomplishingtheleader’svision.Transactionalleadersmotivatefollowersbysettinggoalsandpromisingrewardsfordesiredperformance.Transformationalandtransactionalleadershipcomprisetwoindependentleadershipdimensions.BassdevelopedtheMultifactorLeadershipQuestionnaire,orMLQ,whichisa360-degreefeedbackinstrumentthatassessesfivetransformationalandthreetransactionalfactorsandanonleadershipfactor.ResearchResultsofTransformationalandTransactionalLeadershipTransformationalleadershipwasobservedinallcountries,institutions,andorganizationallevels,butitismoreprevalentinpublicinstitutionsandatlowerorganizationallevels.Transformationalleadershipisasignificantlybetterpredictoroforganizationaleffectivenessthantransactionalorlaissez-faireleadership.Laissez-faireleadershipisnegativelycorrelatedwitheffectiveness.Leaderscansystematicallydeveloptheirtransformationalandtransactionalleadershipskills.Charismaultimatelyexistsintheeyesofthebeholder.Table16.4:CorrelationsbetweenFiveFactorModelDimensionsandCharismaticLeadershipCharacteristicsfor125CorporateCEOsandPresidentsPersonalityDimensionVisionaryThinkingEmpoweringOthers
InspiringTrust
High-ImpactDeliveryExtraversion .32.33.16.47Conscientiousness−.08−.01.06−.04Agreeableness.02.52.48.35Neuroticism−.03.29.38.22Opennesstoexperience.47.30.14.40Source:D.Nilsen,“UsingSelfandObservers’RatingsforPersonalitytoPredictLeadershipPerformance,”unpublisheddoctoraldissertation,UniversityofMinnesota,Minneapolis,1995.SummaryRationalapproachtoorganizationalchangeemphasizesanalytic,planning,andmanagementskills.Emotionalapproachtoorganizationalchangeemphasizesleadershipskills,leader-followerrelationships,andthepresenceofacrisistodriveorganizationalchange.Boththerationalandtheemotionalapproachescanresultinorganizationalchange,buttheeffectivenessofthechangedependsonwhichapproachleadershippractitionersaremostcomfortablewithandtheskillwithwhichtheycancarryitout.EndofMainContentCopyright©2022McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.AccessibilityContent:TextAlternativesforImagesFigure16.1:TheComponentsofOrganizationalAlignment-TextAlternativeReturntoparent-slidecontainingimages.Thefiguredepictsfivecomponentsoforganizationalalignmentaspartofthesystemsmodel.Themodelisdisplayedintheformofastarwithinatrianglecombinedwitharectangularshape.Allthefiveendpointsofthestararejoinedtothefivecomponents,whichareintheformofovals.Thefivecomponentsarevision:strategicgoals;culture:normsandsharedvalues;structure:spanofcontrol,teamcomposition,andhierarchy;systems:accounting,sales,HR,andIT;andcapabilities:technicalandleadership.Returntoparent-slidecontainingimages.Figure16.2:TheExpectation–PerformanceGap-TextAlternativeReturntoparent-slidecontainingimages.Thex-axisofthegraphrepresentstime.They-axisofthegraphrepresentsperformance.Ashortlineextendingfromthecenterofthey-axisislabeledstatusquo.Thestatusquoisthestandardamountofperformanceexpectedbytheorganizationfromanemployee.Afterapoint,thecompanydecidestointroduceachangeinitiative.Oncethechangeinitiativeisimplemented,whichisindicatedbyanarrowpointingdownwardtothestatusquoline,agapisformed.Thegapiscausedbythedifferenceinactualperformanceversustheorganization’sexpectations.Theexpectationslineisindicatedbyadottedline,whereasactualperformanceisindicatedbyastraightline.Thegraphdepictsthatafterthechangeinitiativewasintroduced,theexpectationoftheorganizationfromthechangeinitiativewashigherthanthestatusquowhereastheactualperformancefelllowerthanthestatusquoafterthechangewasinitiated.Returntoparent-slidecontainingimages.Figure16.3:ReactionstoChange-TextAlternativeReturntoparent-slidecontainingimages.Thex-axisofthegraphrepresentstime.They-axisrepresentsemotionallevel.Thefouremotionallevelsdepictedoneachofthecurvesareshock,anger,rejection,andacceptance.Threecurvesareplottedonthegraph.Thefirstisaplaincurvethatindicatestheemotionalstateoftopleaders.Thesecondisacurvewithsmallcirclesonitthatindicatestheemotionalstateofmiddlemanagers.Thethirdisacurvewithmultiplicationsymbolsonitthatindicatestheemotionalstateofindividualcontributors.Thedatafromthegraphillustratesthatgoingthroughtheemotionallevelsofshock,anger,rejection,andacceptancetakestheleastamountoftimeforthetopleaders.Formiddlemanagers,ittakesalittlemoretimethanthetopleadersastheygothroughtheemotionallevelsofshock,anger,rejection,andacceptanceastheydealwithchange.Individualcontributorstakethemostamountoftimetogothroughalltheemotionallevelsandfinallyacceptchange.Returntoparent-slidecontainingimages.Figure16.4:TheRationalApproachtoOrganizationChangeandtheInteractionalFramework-TextAlternativeReturntoparent-slidecontainingimages.ThethreeintersectingcirclesoftheVenndiagramrepresentfollowers,theleader,andthesituation.Whenitcomestotakingarati
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