Change Leadership. Main Theoretical Approaches E-Book

Heiko Schmolke

• Herausgeber: GRIN Verlag
• Sprache: Englisch

Veröffentlichungsjahr: 2015

Beschreibung

Seminar paper from the year 2014 in the subject Business economics - Business Management, Corporate Governance, grade: 1.7, University of Applied Sciences Berlin (FOM), course: Master of Business Administration, language: English, abstract: The purpose of this research is to examine the subject of change leadership and its theoretical approaches. Scholars argue that the current economic and social environment is highly influenced by growing change. While a numerous recommendations have been made on specific strategies and activities managers should use to implement during change, the interpersonal dimension is often not considered sufficiently. Therefore the literature tends to distinguish leadership from management in the context of change. By providing an understanding of the meaning and characterization of management leadership and change leadership, the dimensions of change leadership emphasize the charismatic and interpersonal aspects. It has been found that change leadership is more collaborative and seeks to inspire and even influence the beliefs and behaviors of people. Explicit models subsequently provide elements of effective leadership which again depends highly on the personality of the leader. By using the assumptions of the dimensions and derived models, a series of phases regarding the implementation of change generate a strategic framework. These phases require a considerable length of time. It is advised to define aims or at least a condition where the organization hast to be in the future. In summary it can be said that the importance of leadership regarding change has to be considered sufficiently and is highly influenced by interpersonal aspects and soft skills.

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Executive Summary

The purpose of this research is to examine the subject of change leadership and its theoretical approaches. Scholars argue that the current economic and social environment is highly influenced by growing change. While a numerous recommendations have been made on specific strategies and activities managers should use to implement during change, the interpersonal dimension is often not considered sufficiently. Therefore the literature tends to distinguish leadership from management in the context of change. By providing an understanding of the meaning and characterization of management leadership and change leadership, the dimensions of change leadership emphasize the charismatic and interpersonal aspects. It has been found that change leadership is more collaborative and seeks to inspire and even influence the beliefs and behaviors of people. Explicit models subsequently provide elements of effective leadership which again depends highly on the personality of the leader. By using the assumptions of the dimensions and derived models, a series of phases regarding the implementation of change generate a strategic framework. These phases require a considerable length of time. It is advised to define aims or at least a condition where the organization hast to be in the future. In summary it can be said that the importance of leadership regarding change has to be considered sufficiently and is highly influenced by interpersonal aspects and soft skills.

Table of Contents

List of Abbreviations

List of Figures

List of Tables

1. Problem Statement

2. The Definition of Change

3. Challenges and general Conditions of Change

4. The leadership of Change

4.1. Change Management vs. Change Leadership

4.2. Dimensions

4.3. Models (elements of effective leadership)

5. Strategic Approaches

6. Conclusion

Bibliography

List of Abbreviations

List of Figures

Figure 1: The management/leadership matrix (Kotter, John P., Cohen, D., 2014, p. 50)

Figure 2: Dimensions of change, in-house publication ERICSSON (Graetz, F., 2000, Appendix V, Figure A2)

List of Tables

Table 1: Types of Change (Luecke, R., 2013, pp. 8-9)

Table 2: Management tasks versus leadership tasks

Table 3: Keys to successful change

Table 4: Leadership Styles (LSI), (Reardon, Dr. Kathleen K., Reardon, Dr. Kevin J., Rowe, Dr. Alan J., 1998, p. 132)

Table 5: Senior Manager Leadership Styles for the Five Phases of Radical Change

Table 6: Steps to transform an organization (Kotter, John P., 2007)

1. Problem Statement

Some credible empirical findings conclude that we currently live in a fast paced world. Buzzwords like globalization, deregulation and innovation characterize this condition. Against a backdrop, the business world is exposed change and its challenges. Scholars argue that change is somewhat like an essential constant of the business world and for companies (Pechlaner, H., 2010, Foreword). Based on the profit-orientation of almost every corporation questions arise how it is the best way to recognize change betimes and to react pro-active and appropriately. Recent research and case studies therefore dealing with the issue of change and how it is managed for being adaptive and flexible in a macroeconomic environment (Ovadje, F., 2014, Introduction). While a numerous recommendations have been made on specific strategies and activities managers should use to implement, a lack of precise definitions or at least a common understanding of leadership or rather management in a changing environment still exists (Liu, Yi, 2010, Summary). The interpersonal dimension which becomes critical in an environment of change is often neglected. For this reason John Paul Kotter, a leading scientist and professor from the Harvard Business School, distinguishes management and leadership clearly in the context of change (Kotter, John P., 2013, p. 6). To provide more clarity in the meaning of change and leadership, the main theoretical approaches should be examined. The leadership theory provides distinct dimensions and requirements which are essential to handle change appropriate. These consequences are finally affecting the entire scope of strategy for steering missions and visions of every corporation. A conclusion finally should provide key findings and recommendations for leadership that can be successfully introduced and sustained for the requirements of change.

2. The Definition of Change

To analyze the meaning of management and leadership in context of change, it is appropriate to be aware of change, its definition and characterization. It is not about the change of everything. Change leadership and change management deals with "[...] the process of taking an organization (or a nation) on a journey from its current state to a desired future state and dealing with all the problems that arise along the journey [...]" (Gill, R., 2003, p. 307). The literature typically investigates and inspects the details of change regarding the business performance. Luecke (2003), for example, uses four categories to classify change in the context of corporations.

Table 1: Types of Change (Luecke, R., 2013, pp. 8-9)

Luecke (2003) furthermore distinguishes two different approaches of change. His organizational capabilities approach is focused on the shareholder value. Here, the change is driven from the top of the organization and aims a dramatic and rapid increase of the shareholder value. This approach or theory relies heavily on cost cutting, downsizing, and asset sales to meet its objectives (Luecke, R., 2013, p. 15). The other approach is focused on a higher performance. This should be reached by fostering a powerful culture and capable employees. A high level of employee participation, flatter organizational structure, and attempts to build bonds between the enterprise and its employees are typical characteristics (Luecke, R., 2013, p. 15). Although his focus in clarifying the meaning of change is clear on corporations, some aspects can also be adopted in defining change in context of other organizations, such as authorities, associations or even society. Even though, the latter is more a scientific theme of social and political science.