INFOLINK UNIVERSITY COLLEGE

LEADRESHIP AND CHANGE MANAGEMENT

LECTURE POWER POINT FOR EXIT EXAM TRAINING

BY
ATNAFU ASHENAFI (MA)
March, 2015
Dilla
1.1. What is Leadership?
 Definitions of leadership
 “Leadership is the ability to persuade others to seek
defined objectives enthusiastically. (Keith Davis)
 It is the human factor that binds a group together and
motivates it toward goals.
 The process by which one individual influences
others to accomplish desired goals without coercive
types of influence. (Gibson, Ivancevich and Donnelly)
Cont……,
“Leadership may be defined as a process of influencing
the action of individuals as members of a group to
achieve the desired goal.(Gupta)

The ability to influence a group toward the achievement

of goals.(Robbins)

“leadership is fundamentally the ability to form and

mold the attitudes and behaviour of other
individuals.(Hodge and Johnson)
Cont…….,
 leadership is a process of influencing other people to
mobilizes and direct their efforts towards certain goals.

 The relationship between two or more people in which

one attempts to influence the other toward the
accomplishment of some goal.(Ivancevich, Szilagyi and
Wallace)
 Leadership is the exercise of influence by one member
of a group or organization
Cont…..,
 Leadership is formally defined as the process of
influencing others to behave in preferred ways to
accomplish organizational objectives
 Leadership is the incremental influence one individual
exerts over another
 Leadership is an influence relationship among leaders
and followers
 Leadership occurs when one individual influences others
to do something voluntarily.
Best description of leadership
 First, leadership involves exerting influence over
other members of a group or organization.

 Second, leadership involves helping a group or

organization achieve its goals.
Cont…..,
 Leadership is the combination of characteristics or
personality traits in an individual.
 leaders have a clear mental picture of
I. where the organization is;
II.where the organization needs to go; and
III.how the organization is going to get there.
 Leaders present a clear path for followers to take to
accomplish a task or goal.
 They get followers to work together to complete the
tasks.
 Leadership Vs. Management
Management Leadership

Engages in day-to-day activities: Formulates long-term objectives

Exhibits supervisory behaviour: Exhibits leading behaviour
Administers subsystems within Innovates for the entire organization
organizations
Asks how and when Asks what and why

Acts within established culture of the Creates vision and meaning for the
Orgn organization
Relies on control strategies Uses empowering strategies
Status quo supporter and stabilizer Status quo challenger and change creator
Success based on predictability Success based on innovation and adaptation
Does things right Does the right things
Top-down strategy Leadership at all levels; everyone strategic
Measurement of activities Measurement of results
What makes effective leader?
Good group leaders make an effort to learn and
practice skills.

listen to others openly.

offer and accept constructive suggestions.

 give clear directions.

help member’s identity and solve problems.

Cont…..,
• Know your job
• Be Sensitive
• Be Firm. Stand up for what you believe is right
• Ability to Inspire others
• Problem solving skill
• Ability to understand human behaviour
• Willingness to take risk
Effective leaders are characterized by the followings

They are honest:

Effective leaders want do what they will do.
They keep their promises and follow through on their
commitment.
Consistent
They admit to their mistakes.
They create trusting and open climate
The help others successful and feel empowered
They don’t push too much
They encourage members to do more.
They avoid phrases that cause resentment, reluctance
and resistance
 LEADERSHIP THEORIES AND STYLES
1) The Great Man theory of Leadership
o These leaders are cited as naturally great leaders.
o Born with a set of personal qualities that made them
effective leaders.
o Leaders are born and not made.
o possess certain traits which were inherited.
o leadership was considered as a quality associated mostly
with the males.
o states that some people born with the necessary
attributes that set them apart from others.
o Eg. Alexander the great, Julius Caesar, Napoleon, Queen
Elizabeth I, and Abraham Lincoln,
 The Trait Theory of Leadership
 Similar in some ways to Great Man theories, trait theories assume
that people inherit certain qualities and traits.
 trait theory concentrates on “what the leaders’ are”,
 Physiological (appearance, height, and weight),
 Demographic (age, education and socioeconomic
background), personality, (self-confidence, and
aggressiveness,)
 Intellective (intelligence, decisiveness, judgment, and
knowledge),
 Task-related (achievement drive, initiative, and persistence)
 Behavioral Leadership Theory
behavioral theories assume that specific behavioral
patterns of leaders can be acquired through learning
and experience.
The behavioural theories concentrate on “what the
leaders’ do”.
This leadership theory focuses on the actions of leaders,
not on mental qualities or internal states,.
Theory considers effective leadership to be the result of
many learned or acquired skills.
It proposes that an individual can learn to become a good
leader.
 (1) Ohio State Studies
 Theories was the study made by Ohio State University
in 1945.
(i) Initiating Structure:
 A leader with initiating structure is generally task
oriented, with focus on performance of employees.
 which a leader is likely to define and structure his or
her role and those of employees.
(ii) Consideration
• Concern for followers’ comfort, well-being, status,
and satisfaction.
• Aleader is likely to have a good relationship, with his
or her followers.
 2) The Michigan Studies
 leadership behaviour that they labelled employee-
oriented and production-oriented.
a) Employee-oriented leaders
 Emphasize interpersonal relations.
b) Production-oriented leaders
 Emphasize the technical or task aspects of the job.
 Mainly concerned with making sure the group
accomplishes its tasks.
Contingency Leadership Theory:
 Theories that propose that leadership effectiveness
depends on the situation.

 This theory views leadership in terms of a dynamic

interaction between a number of situational variables like
the leader, the followers, the task situation, the environment,
etc.

 The fundamental principle of the situational theory is that

there is no single "best" style of leadership.
 1) Fiedler Contingency Model

 Fiedler created the least preferred co-worker (LPC)

questionnaire.
 LPC is used to determine whether individuals were
mainly interested in good personal relations with co-
workers, and thus relationship-oriented, or mainly
interested in productivity, and thus task-oriented.
 if a situation requires a task-oriented leader and the person in that
leadership position is relationship oriented, either the situation has to
be modified or the leader must be removed and replaced.
2) Hersey and Blanchard’s Situational
Leadership Theory

 The focus of this theory is laid on the followers

readiness in accepting a leadership.
 It is the followers who accept or reject a leader.

 Effectiveness of leadership depends upon the

actions of the followers.
 SLT says that if a follower is unable and unwilling to
do a task, the leader needs to give clear and specific
directions.
Cont…..,
 If a follower is unable and willing, the leader needs to
display high task orientation(sell” the task).

 If the follower is able and unwilling, the leader needs to

adopt a supportive and participative style.

 If the employee is both able and willing, the leader does

not need to do much (in other words, a laissez-faire

approach will work).

 3) Path-Goal Theory
 Path-Goal Theory was developed by Martin Evans and
Robert House in 1970-71.
 Clarify the path to help their followers to move forward from
their current position towards achieving the work goals.
 The leader reduces the roadblock that occurs in the path of
the followers, and makes their journey easier.
 This theory identifies four types of leadership.
 The directive leader
 The supportive leader.
 The participative leader.
 The achievement-oriented leader
 2. Contemporary theory of Leadership

 Today, leadership theories also try to explain how certain

leaders can achieve extraordinary levels of performance
from their followers.
I. Transactional leaders:
 Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and task
requirements.
I. Workers are motivated by rewards and punishments
II. People perform their best
III. Obeying the instructions and commands of the
leader
IV. Subordinates need to be carefully monitored
II. Transformational leaders
 leaders inspire followers to transcend their own self-
interests for the good of the organization.
 Inspire followers to give a new outlook for the old
problems.

 Transformational leaders pay attention to the

developmental needs and concerns of the followers.

 Transformational leaders are able to excite, arouse,

and inspire followers to exert extra effort
 III. Charismatic leadership
 A leader who uses his or her communication skills,
persuasiveness, and charm to influence others.
 Strong communicator
 Empathetic and relatable
 Confident
 Motivational
 Engaging and charming
 Optimistic
 Leadership skills and competencies
 skill as “an acquired talent that a person develops
related to a specific task”
1) Technical Skill.
 Refers to a person’s knowledge and ability in any type of
process or technique.
 Concerns with things or works
 Used for lowest manger
2) Human Skill.
 It is the ability to work effectively with people and to build
teamwork.
 It is the major part of the leadership behaviour.
 Concerns people.
 Used for the three level managers
 3) Conceptual Skill.

 This is the ability of the leader to think in terms of

models, framework and broad relationships.

 Seeing the organization in its total picture

 Observing the whole picture for the organization.

 Conceptual skill deals with ideas.

 II. Leadership Competencies
 Competence is the ability of an individual to perform a task
using his/her knowledge, education, skills, and
experience.
 Good Versus Bad Leaders
 good leaders are early, greet you, and respect.
 good leaders talk you up.
 good leaders put themselves last and the mission and the
team first.
 good leaders develop other good leaders.
 good leaders communicate their thoughts.
 Listening
 Coaching
 Trusting
 Not giving orders
 Providing direction
 Bad Leaders
 Bad leaders set appointments and are late for them.
 Bad leaders talk down to you.
 Bad leaders develop themselves.
 Dishing out orders.
 Failing to listen.
 Exhibiting the “Do as I say, not as I do”
 Providing inadequate support
 Withholding information
 Being afraid to discipline
 Leadership style
I. Authoritarian leaders
 known as authoritarian leadership.
 Characterized by individual control over all decisions.
 Autocratic leaders typically make choices based on their
own ideas and judgments.
 Rarely accept advice from followers.
 Leaders make the decisions
 Little or no input from group members
 Does not consult staff.
 Rely on threats and punishment to influence staff
 Impose order & restriction
 2 2) Democratic Leadership Style
 known as participative leadership.
 Members of the group take a more participative role
in the decision-making process.
 The most effective and lead to higher productivity.
 better contributions from group members.
 Group members are encouraged to share ideas and
opinions.
 Creativity is encouraged and rewarded.
 Produce high quality and high quantity work.
 cooperation, team spirit, and high morale
 Friendliness.
III. Laissez-Faire Leadership Style
 known as delegative leadership.

 Also known as the “hands-off ̈ style

 leaders offer little or no guidance to group members.

 leave decision-making up to group members.

 Effective in situations where group members are highly

qualified in an area of expertise.
 Complete freedom for followers to make decisions.

 The manager provides little or no direction.

 All authority or power given to the staff.

 AN OVERVIEW OF ORGANIZATIONAL CHANGE
MANAGEMENT

Meaning and implications

 Alteration in the existing conditions of an organization.
 It is the act, process, or result of making or becoming
different.
 It is something that is different from what is usual
 A transition from a current state to a future one, a
different phenomenon.
 Change management can be defined as the process of
managing changes.
 An effective management of new methods and systems in
an on-going organization.
Cont…….,
 Refers to the making of changes in a planned and
managed or systematic fashion.
 Change management is a method for reducing and
managing resistance to change when implementing
process.
 The aim is to more effectively implement new methods
and systems in an ongoing organization.
 The changes to be managed lie within and are controlled
by the organization.
Forces of Organizational Change
 Forces of change can be classified in two categories namely:
1. External forces 2. Internal forces.
1) External Forces
i. Socio-cultural forces –include norms like education,
population, literacy, traditions, customs, rate of urbanization,
leisure etc.
ii. Economic forces –economic condition of the country,
market condition, demand for the product, competition, price
determination, buying capacity of the customer, cost and
benefit position, distribution of income.
Cont…..,
iii. Political and legal forces – forces include political
system, ideology of ruling and major opposition
party, political stability, and various legislations for
business.
iv. Technological forces – may bring major changes in
organization.
 include new techniques of production, procedure,
innovative ideas of production process and in
product, research and development, transfer of
technology.
v. Work environment forces – forces include
customer’s loyalty, suppliers’ regularity, community
attitude and recognition by society
 2. Internal Forces:
 The internal forces include the following:
i. Top management, its philosophy and corporate policy.

ii. Promotion, resignation and transfer.

iii. Changes in the perception, attitude, feeling, beliefs and

expectations of employees of the organization.

iv. Change in work schedule, allocation of duties, job

contents, duty hours and composition of work group etc.

v. Change in internal environment of the organization.

 Process of organizational change
 One strategy of change is through the adoption of a
system approach.

1. unfreezing
 Is the managerial responsibility of preparing a
situation for change.
 Sometimes called the boiled frog phenomenon.
 2. Changing
 The changing stage involves taking action to modify a
situation by changing things, such as the people, tasks,
structure, or technology of the organization.
 Change can affect all aspects of the operation and
functioning of the organization.
3. Refreezing
 The final stage in the planned change process is
refreezing.
 It involves evaluating progress and results, and
 Assessing the costs and benefits of the change.
 It allows for modifications to be made in the change to
increase its success over time
 Resistance to Change
 What Is Resistance to Change?
 Is the reluctance to adapt to change when it is presented.
 Is the act of opposing or struggling with modifications or
transformations that alter the status quo.
 It can manifest itself in one employee, or in the workplace as a
whole.
 Is the unwillingness to adapt to altered circumstances.
 It can be covert or overt, organized, or individual.
 Employees can also feel uncomfortable with the changes
introduced and resist.
 The Most Common Resistance to Organizational
Change

1. Fear of the Unknown:

2. Fear of Failure
3. Economic Factors
4. Insecurity:
5. Lack of Communication:
6. Extent of Change:
7. Psychological Factors:
8. Social Factors:
What are the Effects of Resistance to Change?
 Low morale of employees:
 Lack of order in the work environment
 Decreased efficiency:
 Managing Resistance to Change
a. Education and communication.
Resistance can be reduced through communicating with
employees to help them see the logic of a change.
b. Participation and involvement
 This consists of the active involvement of everybody
involved in the change.
 Their involvement can reduce resistance.
Cont…..,

3. Facilitation and support.

 providing positive support for people in new situations

such as employee counselling and new-skills training.

4. Negotiation and agreement

5. Manipulation and co-optation

6. Explicit and implicit coercion

 CHAPTER FOUR
TYPES OF CHANGE
Planned and Unplanned Change
1. Unplanned Change
 Are spontaneous, accidental or the product of sudden
decision.
 A necessary action following unexpected events.
 Is influenced by external factors outside of the
organization's control.
 The change resulting from natural calamities like
flood; drought, famines, volcanic eruption, etc
 Occurs because of a major, sudden surprise to the
organization
 II. Planned Change
 Is the process of preparing the entire organization, or a
for new goals or a new direction.
 This direction can refer to culture, internal
structures, processes, metrics and rewards.
 occurs when leaders in the organization recognize the
need for a major change
 proactively organize a plan to accomplish the change.
 occurs when deliberate decisions are made in an
organization.
 emanates from within the company.
 /Eg. Introduction of new products and technologies,
organizational restructuring, team building,
 Revolutionary and Evolutionary change
 Organizational change can occur quickly or slowly.
I. Evolutionary Change
 Is gradual and incremental.
 Slow, gradual change often takes place to ensure the
survival of the organization.
 It happens step by step, little by little.
II. Revolutionary Change
 Is immediate, dramatic, and forced down.
 The 3 Types of Organizational Change

1. Developmental Change:
 Improves upon something that is already being done,
rather than creating something new.
 It can involve improving office communications or
changes to improve sales
2. Transitional Change:
 Is a change that is replacing the “old way”
something is done with a completely “new way” of
doing things.
 It involves already knowing the desired future
state and the need to change people and culture
to adopt the new processes/procedures.
 Cont…..,

3. Transformational Change:

 This type of organizational change differs from

transitional in that it’s much more challenging because
the future state is unknown when the change project is
begun.

 This type of a more radical change would be to adjust to a

global pandemic or large.
 CHAPTER- 5
CONFLICTS AND CONFLICT MANAGEMENT

The concept of conflict

 Conflict is part of daily life, normal, essential and
unavoidable human phenomenon (Dogan, 2016).
 Where there is human interaction; there is a likelihood of
agreements and disagreements.
 These agreements and disagreements among individuals
and groups lead to conflicts.
 Is a disagreement with regard to interests or ideas.
 There is disagreement, opposition, incompatibility and
cross-purposes among individuals in conflicting
cases”(Rowden, 2000).
 Cont…….,
 Conflict may arise when wants, needs and beliefs between
two or more parties struggle to agree.
 Conflict can therefore be said disagreement between two
or more opposing parties with differing needs, ideas,
beliefs, values and goals.
The Stages of Conflict
1. Latent Conflict-people may be in conflict without
being aware that they are in conflict.
2. Perceived Conflict-is when the people involved in a
conflict become fully aware that there is a conflict.
3. Felt Conflict: -Feelings or attitudes and perceptions
may create conflict . stress and anxiety are felt by one or
more of the participants due to the conflict.
 Cont………,
4. Manifest Conflict-is the overt phase of conflict when
aspects of the situation can easily be measured.
 Can take a number of shapes including: e-mails, phone
calls, phone messages, face-to-face meetings.
5. Conflict Outcome:- centres on the resolution of conflict
The outcome can be either positive or negative .
Types of Conflicts
 There are four types of conflicts .
a) Intra-Personal Conflict
 It is conflicts with-in the individual.
 Conflict with-in him/ her.
Cont……,
b) Inter-Personal Conflict
 are conflicts that arise between individuals.
c) Intra-Group Conflict
 Conflicts made b/n in small groups.
d) Inter-Group Conflict
 Refers to the disagreement or differences between two
or more units or groups (departments) in an
organization.

Conflict is not always destructive; it may be a

motivator.
When it is destructive however, managers need to
understand and do something to deal with it.
 Outcomes of Conflict
I. Positive Effects /outcomes of Conflict
 Conflict is not always bad for an organization or for an
individual.
Conflict is often needed. It:
(1). Helps to raise and address problems,
(2). Energizes work to be on the most appropriate
issues,
(3). Helps people “be real” it motivate them to
participate and
(4) Helps people learn how to recognize and benefit
from their differences.
 Cont…..,
 Stimulate creativity, encourage flexibility, increase
problem awareness, increased group cohesiveness,
increase motivation to improve, improve quality of
decision made, increase productivity, improve quality
to work, increase loyalty, increase acceptance of
autocratic leader, increase emphasis on task
accomplishment, decrease tension, more appropriate
adjustment of tasks and resources and etc.
 Negative Effects/Outcomes of Conflict
 Causes feelings of anxiety, guilt, frustration, distorted
perception, decreased communication, lack of trust,
decreased cooperation, decreased cohesion and
productivity.

 Delay decisions, decrease or destroy sensitivity, cause

members to drop out or resign from committees,
arouse anger that disrupts a meeting, provoke personal
abuse and cause defensiveness.
Conflict Management mechanisms
 Cont…..,
 Five conflict management styles based on two dimensions:
assertiveness and cooperativeness.
 Assertiveness is the motivation to achieve individual goals,
objectives, and outcomes, while
 cooperativeness assesses the desire to help the other party
to achieve its goals or outcomes.
1/Avoiding Style.
 It is also known as withdrawing style.
 In this style assertiveness and cooperativeness are low.
 People who fear conflict use the avoiding style to escape
from conflict situations. .
 This style is appropriate to use in the situation where
there is no chance of winning or when disruption would be
very costly
 2/ Competing Style or Forcing style.
 This style is also known as the “win-lose” approach.
 High assertiveness and low cooperativeness.
 This approach may be appropriate when quick actions
are needed for example during emergencies.
 This style is inappropriate in an open and participative
climate.
3/ Accommodating Style or Obliging.
 It is also called Smoothing style.
 This style has a high degree of cooperativeness.
 A manager using this style tries to get his/her own
goals, objectives, and desired outcomes to allow
partners to achieve their goals and outcomes
 4/ Compromising Style.
 can be determined as a “give-and-take” approach with
moderate levels of both assertiveness and
cooperativeness.
 This approach can be applied when the goals and the
power of both sides are of equal importance.
 when it is necessary to find a temporary, timely
solution.
5/ Collaborating Style.
 Characterized by high levels of assertiveness and
cooperativeness.
 described as the “win-win” scenario
Cont…..,
 Both sides creatively work together to achieve the goals
and desired outcomes .
 It may take a lot of time to reach a consensus
Sources of conflict
 Resource scarcity
 Incompatible goals
 Structural factors (size, specialization, reward systems)
 Conflicting perceptions, ideas, or beliefs
 Differences between people
 Conflicting thoughts/needs within an individual
 Lack of communication (maybe)
 Causes of Organizational Conflict
 Managerial Expectations: Every employee is expected
to meet the targets, imposed by his/her superior and
when these expectations are misunderstood or not
fulfilled within the stipulated time, conflicts arises.
 Communication Disruption: One of the major causes
of conflict at the workplace is disruption in the
communication.
 Misunderstanding: Misunderstanding of information,
can also alleviate dispute in organization, in the sense
that if one person misinterpret some information, it can
lead to series of conflicts.
Cont……,
 Lack of accountability: If in a project,
responsibilities are not clear and some mistake has
arisen, of which no member of the team wants to take
responsibility can also become a cause of conflict in
the organization.
Conflict resolution is only a five-step process:
Step 1: Identify the source of the conflict.
Step 2: Look beyond the incident.
Step 3: Request solutions.
Step 4: Identify solutions both disputants can
support.
Step 5: Agreement.
!