Week 3 - Change management theories and frameworks/ Drivers of change in

organisations and Leadership

1.1 Introduction
Change management is a methodical approach to the transition or transformation of an
organization's objectives, processes, or technologies. Change management aims to apply ways
for implementing change, controlling change, and assisting individuals in adapting to change..

1.2. Learning Outcomes

Upon the completion of this week of study you will be able to:
LO.3 Critically appraise and apply leadership strategies that manage change and
innovation and enable digital transformation
LO.4 Demonstrate a critical awareness of recent theory and processes required to
complete a practitioner led applied business project
LO.5 Evaluate and justify options related to the preparation of a practitioner led applied
business project

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Table of Contents
1.1 Introduction ......................................................................................................................................................1
1.2. Learning Outcomes ......................................................................................................................................1
1.3 Change Management ....................................................................................................................................2
1.4 Drivers of change in organisations ..........................................................................................................5
1.5 Leadership and Change ...............................................................................................................................9
References ...............................................................................................................................................................13

1.3 Change Management

Change management is a methodical technique that entails dealing with the transition or
transformation of corporate goals, fundamental values, procedures, or technology. The
process of implementing significant changes in information technology, organisational
processes, business structures, and job assignments is what is referred to as change
management. Change management is defined as the process of implementing these changes
with the goal of minimising the risks and costs of change while maximising its benefits. The
change management theory is a theory that is related with organisational change in the sense
that it evaluates the risks of this process while boosting the advantages of this process. The
notion of change management can be defined as the act of managing significant organisational
change by decreasing the associated risks and costs while simultaneously optimising the
potential benefits of the change (Kansal & Chandani, 2014).

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 (Murthy, 2007, p.22). Change management.

This can be done through the use of a systematic methodology. Every initiative for
organisational change management has the same overarching goal: to successfully put into
action strategies and methods for bringing about change and assisting employees in coming to
terms with and adjusting to that change. Change management and change communication
teams have become essential to the overall functioning of many businesses as a direct result of
the daily organisational shifts that are taking place in agile workplaces.

The following are the three most prevalent kinds of organisational changes:

1. A developmental change is any modification made to an organisation that seeks to improve

and maximise the effectiveness of previously established processes, strategies, and
procedures.
2. Transitional change is a shift that moves an organisation away from its existing condition
and into a new one in order to address a problem. Some examples of transitional change are
mergers and acquisitions, automation, and other forms of business computerization.
3. Transformational transformation refers to a change that significantly and substantially
affects an organization's culture, fundamental values, and activities.

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 The practise of managing change is an essential component of the organisational
transformation that is currently taking place. According to Hechanova and Cementina (2013),
when people have the impression that the process of implementing change is being handled
fairly, their responses to the change and the company as a whole are more positive. This
perception appears to be a product of the capacity of leaders to implement procedures in a
consistent manner, offer correct information, engage people in the change, exhibit
commitment to the change, and provide the resources necessary to make the change
successful. In addition, change management is regarded to be a function of the quality of the
change itself, including communication, involvement, the attitude of top management toward
organisational change, and support from supervisors.

It is a well-known truth that almost all commercial settings are characterised by a continuous
state of change or uncertainty. Companies have two options: they can either maintain
alignment with the shifting competitive environments in which they operate and promptly
respond to these shifts, or they can actively anticipate shifting customer demographics,
emerging technologies, and potential new products and services in order to reimagine their
industries. It is important to note that developments in the industry are prompting
organisations, particularly entrepreneurial ones, to provide responses in order for such

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 businesses to make the most of the opportunity to transform both
themselves and their line of work. As existing as well as emerging technologies continue to be
utilised, the level of competition will probably certainly get more intense in the future, which
will almost surely result in an increase in the danger of becoming out of step with the changes
that are occurring in the sector. Organizational change will, therefore, be essential to the
survival of companies. Organizational change management and transformation have become
permanent features of the business landscape. Changes in consumer demographics lead to
new customer needs. Change management and transformation have become permanent
features of the business landscape. In point of fact, the term "strategic change management"
would be a better fit for what is currently known as "strategic management" (Jovanovic,
2015).

It has been demonstrated through practical application that managers frequently fail to
adequately anticipate or adapt to change for a variety of different reasons. There is also the
possibility that managers just do not notice any changes taking place in the environments of
their particular companies. As a direct consequence of this, they are oblivious to the
developments that have taken place very suddenly. The findings of several studies have also
demonstrated that managers may be aware of changes occurring in their respective businesses,
but they may be unable to accurately evaluate these changes. They frequently fail to recognise
the significance of these shifts, which results in them either delaying their response for an
excessive amount of time or not reacting at all. In addition, research has demonstrated that
managers who correctly observe changes are also potentially capable of accurately
interpreting those changes.

1.4 Drivers of change in organisations

There are six critical drivers that moderate the impact of change on performance as per the
survey of Kirsch, Chelliah, and Parry (2011):
1. Turbulence;
2. resources;

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 3. aligned direction;
4. change leadership;
5. work roles; and
6. emotional energy.

Turbulence offers information regarding the stage, the amount of change occurring, the tempo,
and the obstacles encountered. Change agents might anticipate much more opposition to change
in cultures with strong "uncertainty avoidance" (refers to a culture's tolerance for ambiguity and
uncertainty). Uncertainty avoidance influences the perceived rate of change, with a slower rate of
change in cultures defined by a high level of uncertainty avoidance. The optimal rate of change
must take into account the particular cultural setting. For cultures (such as Japan) with high
degrees of uncertainty avoidance, for instance, a slower rate of change is suggested. The same
holds true for the amount of change at work, as uncertainty avoidance restricts the degree of
change with which individuals are comfortable. In terms of new ways of working, changing size
and structure, and restructuring, the rate of change is less prevalent in cultures with high degrees
of uncertainty avoidance. The influence of uncertainty avoidance on the rate of change will be
limited to those processes that potentially compromise job security, but it will have little effect

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on growth. The growth rate is least affected because, by definition, it poses
no threat to job security (Kirsch, Chelliah, & Parry, 2011).

Resources: Under "Resources," employees were asked if they believed sufficient resources were
made available to help them achieve their goals. The perceived degree of technological resources
in terms of systems, tools, and technologies is unlikely to be influenced by culture, given that it
is an objective, observable reality with which individuals must contend (Kirsch, Chelliah, &
Parry, 2011). In group-oriented cultures where work teams may depend more on each other, such
as Japan, cultural characteristics might influence the notion that a team has sufficient "skills and
knowledge" and "sufficient staff in the correct roles." If teams are highly interdependent and
employees rely on one another for assistance, we would anticipate a greater reliance on the
assistance and support of others and, thus, lower ratings for the perception that teams have
sufficient staff resources. A collectivist disposition (in which people are integrated into strong,
cohesive in-groups that continue protecting them in exchange for unquestioning loyalty) aids
team collaboration and cohesion, and therefore facilitates effective group processes, in cultures
with a strong emphasis on group dynamics. There will be more procedures and a larger demand
for personnel in collectivist civilizations. This is less likely to occur in firms with more
individualistic cultures (where everyone is expected to take care of him or herself and his or her
immediate family) (Kirsch, Chelliah, & Parry, 2011).

Aligned direction: Aligned direction consists of a range of components relating to

understanding and agreement with the company's vision, confidence in the executive leadership
team, and communication. The level of faith and trust in the executive team, as well as the
amount of communication from managers, rumours, written material, etc., are likely to be
influenced by cultural traits, as culture impacts how individuals interact, socialise, and
communicate. Communication styles vary amongst national cultures, which has prompted
substantial research on cross-cultural communication. High-avoidance-of-uncertainty cultures
will have a greater desire for information and, as a result, will score much lower on information
obtained through various means. Change management must take into account cultural
environment. To eliminate uncertainty in cultures with high levels of uncertainty avoidance, the

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amount of information offered across all channels must be increased. As
opposed to individualist cultures, collectivist cultures anticipate to receive more information
from direct engagement, such as rumours and information from direct management (Kirsch,
Chelliah, & Parry, 2011).

Change leadership: The relationship with the business unit (BU) leadership, in terms of the
support and resources provided, is likely to be affected by cultural characteristics because
relationships, and particularly the superior-subordinate relationship, are strongly related to how
we have been socialised to behave within a given culture and what is expected from the superior
(Walumbwa et al., 2007). In cultures with a high degree of group orientation and a very unequal
distribution of power within the superior-subordinate relationship, divisional leadership must
demonstrate a greater level of dedication and support. Especially intimate relationships will be
highly influenced by cultural characteristics. Power distance and collectivism will influence the
perception of divisional leadership support. Power distance may have an impact on the unit's or
team's reactivity. This is due to the fact that in cultures with a high power distance, employees
are more inclined to accept the power gap and accept orders from superiors without questioning
or criticising them. This decreases the amount of time and effort required to "sell" specific
activities and accelerates their execution. Consequently, responsiveness increases as power
distance increases. It is anticipated that the level of "power distance" and the degree of
collectivism and masculinity within the host culture will impact the interaction between
employees and their direct supervisor/team leader.

Work roles: The level of involvement and participation of employees in planning and the degree
of accountability are likely to be influenced by cultural characteristics. This is due to the fact that
participation and accountability are strongly related to how people have been socialised to act
within acceptable norms and standards within a given culture, which in turn influences the
expectations from the different work roles and the supervisor-subordinate relationship. The
concepts of employee participation, involvement, and industrial democracy developed in cultures
with low power distance and are therefore compatible with the ideals of such cultures, but may

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not necessarily be transferable to cultures with high power distance
(Kirsch, Chelliah, & Parry, 2011).

Emotional energy: Emotions are not culture-specific, and the actual experience of an emotion is
not influenced by cultural traits; however, cultural norms and values influence the presentation of
emotions. We would expect cultures that are more male to be less emotionally expressive than
cultures that are more feminine. In masculine-dominated civilizations, we would anticipate less
emotional outpouring. Therefore, there should be an inverse relationship between masculinity
and emotional expression. As people feel supported in their wants and ambitions, the loving,
caring, and supportive environment in more feminine cultures may have a good influence and
improve their passion and motivation. A higher level of "long-term orientation" rather than short-
term orientation (respect for tradition, completing social obligations, and protecting one's "face")
is predicted to have a favourable effect on a person's enthusiasm and motivation (Kirsch,
Chelliah, & Parry, 2011).

1.5 Leadership and Change

Leadership that is both adaptable and flexible entails modifying one's conduct as the situation
demands. Numerous phrases have been used to characterise leaders who can effectively assess
the circumstance and adjust their behaviour accordingly. These terms include flexible, adaptable,
nimble, and versatile, among others (Pulakos, Arad, Donovan, & Plamondon, 2000). There is
substantial ambiguity in the management and leadership literature regarding the nature and
evaluation of flexible leadership. One explanation for the ambiguity is that circumstances in
which flexible leadership can emerge vary. For instance, a leader must be flexible inside the
same role as circumstances change, as well as while transitioning from one sort of leadership
position to another with different responsibilities and tasks.

As the rate of change within businesses quickens, the majority of managers and administrators
are finding that flexible and adaptable leadership is becoming increasingly crucial (Burke &
Cooper, 2004). Increased globalisation and international commerce, rapid technological change,
shifting cultural values, a more diverse workforce, greater use of outsourcing, new forms of

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social networking, increased use of virtual interaction, greater visibility of
leader actions (e.g., Internet), and concern for outcomes besides profits (e.g., ethical actions,
social responsibility) are examples of the types of changes that increase the need for flexibility,
adaptation, and innovation among leaders ( Burke & Cooper, 2004).

In a typical day or week, most leaders are responsible for a variety of responsibilities, and it is
often required to switch swiftly from one sort of activity to another (Mintzberg, 1973). Different
jobs typically necessitate distinct leadership styles. In addition, subordinates frequently differ in
terms of their experience, talents, values, and needs, and a leader's interactions with diverse
individuals should reflect these differences. For instance, it is fair to delegate more to
subordinates with good talents and a strong commitment to achieving task objectives.
Adaptability is also essential when a subordinate's abilities and motivations evolve over time. As
a subordinate gains expertise and confidence, it is fair to delegate more responsibilities. When an
unexpected, out-of-the-ordinary event threatens to disrupt routine operations or cause harm to
people or property, the organisation must respond quickly but appropriately to limit the negative
effects. How a leader handles these acute crises is indicative of his or her adaptability and
flexibility as a leader. Over a longer period of time, large changes in the external environment
present new challenges or possibilities for the organisation, and it is often necessary to modify
strategies or tactics to ensure the organization's continuous existence and effectiveness.

The amount to which a leader makes appropriate adjustments to strategies and tactics is an
additional measure of adaptable and flexible leadership. It is essential for leaders to comprehend
the various situations that necessitate flexible and adaptive action. For each scenario, they must
be able to diagnose the circumstance and identify the right sorts of conduct. In addition, they
must be adept at employing a variety of actions. Leaders require mental models that assist
comprehension of the complicated impacts of their activities on various objectives, as well as the
necessity of balancing opposing values. Leaders must recognise and seize opportunities to raise
their self-awareness of pertinent qualities, abilities, and behaviours and to acquire vital skills
before they are required. Leaders should also understand their obligation to assist subordinates in

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developing and employing the skills and behaviours necessary for flexible
and adaptive leadership. In a world full of change and uncertainty, it is difficult and stressful to
be adaptable and flexible, and leaders must have a strong commitment to doing what is required
and ethical (Yukl & Mahsud, 2010).

Key Adaptive Leadership Principles: • Leadership capacity • Strong relationships • Shared and
individual responsibility • Clear objectives but no micromanagement • Accepting and managing
risk • Sharing resources • Sharing ideas • Shared timely decision-making • Challenging norms •
Continuous development • Addressing challenges • Addressing the holding environment

Leadership characterised by Transformational leadership refers to the process of influencing

significant changes in the attitudes and assumptions of organisation members and fostering
support for the mission, objectives, and strategies of the company. The notion outlines a
leadership process that is primarily identified by its outcomes, such as significant changes in the
culture and strategy of an organisation or social system. Transformational leadership
incorporates a leader's influence on subordinates, but the influence has the result of empowering
subordinates to engage in the organization's transformation. Thus, transformational leadership is
typically considered as a collaborative process involving the actions of leaders at many
organisational levels and subunits, not only the top executive (Bass and Riggio, 2006).

Charisma or idealised influence, inspirational motivation, intellectual stimulation, and

individualised concern are the four facets of transformative leadership. Charisma, or idealised
influence, is the extent to which a leader's exemplary actions inspire followers to connect with
him or her. Leaders with charisma exhibit conviction, take stands, and appeal to the emotions of
their people. Inspirational motivation is the extent to which a leader articulates a vision that
followers find appealing and motivating. Leaders with inspirational motivation challenge their
followers with high standards, express optimism regarding future goal attainment, and create
significance for the current activity. Intellectual stimulation is the extent to which a leader
questions preconceived notions, takes calculated risks, and solicits followers' input. Leaders with
this quality inspire and promote their followers' inventiveness. Individualized consideration is

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the extent to which a leader caters to the needs of each follower, acts as a
mentor or coach for the follower, and listens to the follower's worries and requirements (Judge &
Piccolo, 2004).

Leadership is a crucial aspect for organisational change success. Business executives must adopt
a spirit of teamwork and an attitude to active internal communication with those immediately
involved in the change endeavour (Levasseur, 2001, p. 73). An effective leadership style is one
that leads followers toward the accomplishment of a similar objective and encourages them to
share the same visions through good internal communication. As managers are viewed as
admirable role models by their subordinates, they must be the first to initiate change adoption
efforts (Pauliene, 2012). With this strategy, people are more likely to adopt a similar mindset and
demonstrate less opposition to change. If managers exhibit fear and uncertainty around change,
these emotions are more likely to have a negative impact on the bottom line.

Social learning has been utilised to comprehend how leaders generally impact followers. Role
modelling is a practice that relies heavily on leader behaviour. Particularly, charismatic or
transformational leaders are believed to influence followers at least in part via modelling and
identification processes (Bass, 2006). Bandura's (1977) social learning viewpoint proposes that
leaders influence their followers via modelling processes. It is well known that modelling is one
of the most effective ways to convey values, attitudes, and behaviours. Employees learn what to
do and what not to do by seeing the actions and repercussions of their leaders. Due to their
appointed function, their status and performance in the company, and their ability to influence
the behaviour and outcomes of followers, leaders are likely to serve as models.

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References
Bandura, A. (1977). Social learning theory. Englewood Cliffs, NJ: Prentice Hall.

Bass, B. M., & Riggio, R. E. (2006). Transformational leadership. Psychology press.

Burke, R. J., & Cooper, C. L. (2004). Leading in turbulent times: Managing in the new world of
work. Malden, MA: Blackwell Publishing.

Hechanova, R. M., & Cementina, R. (2013). Transformational leadership, change management,

and commitment to change: A comparison of academic and business organizations. The Asia -
Pacific Education Researcher, 22(1), 11-19.

Jovanovic, Z. (2015). Management and Changes In Business Environment. Ekonomika, 61(2),

143-151.

Judge, T. A., & Piccolo, R. F. (2004). Transformational and transactional leadership: a meta-
analytic test of their relative validity. Journal of applied psychology, 89(5), 755-

Kansal, S., & Chandani, A. (2014). Effective management of change during merger and
acquisition. Procedia Economics and Finance, 11(0), 208-217.

Kirsch, C., Chelliah, J., & Parry, W. (2011). Drivers of change: a contemporary model. Journal
of Business Strategy.

Levasseur, R. E. (2001). People skills: Change management tools - lewin's change model.
Interfaces, 31(4), 71-73.

Mintzberg, H. (1973). The nature of managerial work. New York: Harper & Row.

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Murthy, C. S. V. (2007). Change management (pp. 24-25). Himalaya Publishing House Pvt.
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Pauliene, R. (2012). Transforming leadership styles and knowledge sharing in a multicultural

context. Business, Management & Education / Verslas, Vadyba Ir Studijos, 10(1), 91-109.

Pulakos, E. D., Arad, S., Donovan, M. A., & Plamondon, K. E. (2000). Adaptability in the
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Psychology, 85, 612–624.

Walumbwa, F., Lawler, J. and Avolio, B. (2007), ‘‘Leadership, individual differences, and work
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Yukl, G. (1989). Managerial leadership: A review of theory and research. Journal of

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