Organizational Behavior, Attitude and Leadership

I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY

PROJECT REPORT

ORGANISATIONAL CHANGE AND
DEVELOPMENT
D R . VN S H R I V A S T A V A

Mo de ls o f O r ga n isat i o n al B eh av i o ur & Att it u de a n d
Le a d ers h ip St y les re q u i re d f or Ch a ng e Ma na ge me nt

Submitted By:

Adesh Mittal (10DCP-053)
Adhip Varma (10DCP-054)
Ankit Sharma (10DCP-061)
Pavni Jain (10DCP-068)
Vidur Pandit (10DCP-094)
Aarti Batra (10DCP-097)

Organisational Behaviour Page 1


T ABLE OF C ONTENTS

List of Tables 3
List of Figures 3
Executive Summary 4
Acknowledgements ................................................................................................................................. 5
Introduction: Background of the study ........................................................................................................ 6
Models of Organizational Behaviour ...................................................................................................... 6
Autocratic .......................................................................................................................................... 6
Custodial.............................................................................................................................................. 6
Supportive .......................................................................................................................................... 7
Collegial .............................................................................................................................................. 7
Attitude ..................................................................................................................................................... 8
Models of job satisfaction ....................................................................................................................... 9
Affect Theory ....................................................................................................................................... 9
Dispositional Theory ............................................................................................................................ 9
Two-Factor Theory (Motivator-Hygiene Theory) ................................................................................ 9
Job Characteristics Model ................................................................................................................. 10
Objective .................................................................................................................................................... 11
Methodology .............................................................................................................................................. 12
Data Analysis .............................................................................................................................................. 15
Discussion and Recommendation .............................................................................................................. 20
References .................................................................................................................................................. 21
Appendix .................................................................................................................................................... 36



L IST OF T ABLES

1. Table 1: Sample Data Count

2. Table 2: Descriptive Statistics

3. Table 3: Correlation analysis

L IST O F F IGURES

1. Fig1: Graph showing Organisation preferred model

2. Fig2: Graph showing Mean for various factors

3. Fig3: Correlation Chart

4. Fig4: Graph showing best fit - Overall satisfaction with Rewards and recognition

5. Fig5: Graph showing best fit - Overall satisfaction with Personal Development

6. Fig6: Graph showing best fit - Overall satisfaction with Diversification

7. Fig7: Graph showing best fit - Overall satisfaction with Job Security

8. Fig8: Graph showing best fit - Overall satisfaction with Relationship

9. Fig9: Graph showing best fit - Overall satisfaction with Work Duration



E XECUTIVE S UMMARY
IN TODAY’S INTENSE COMPETITIVE ENVIRONMENT:

THE ORGANIZATION'S BASE RESTS ON MANAGEMENT'S PHILOSOPHY, VALUES, VISION AND GOALS. THIS IN
TURN DRIVES THE ORGANIZATIONAL CULTURE WHICH IS COMPOSED OF THE FORMAL ORGANIZATION,
INFORMAL ORGANIZATION, AND THE SOCIAL ENVIRONMENT. THE CULTURE DETERMINES THE TYPE OF
LEADERSHIP, COMMUNICATION, AND GROUP DYNAMICS WITHIN THE ORGANIZATION. THE WORKERS
PERCEIVE THIS AS THE QUALITY OF WORK LIFE WHICH DIRECTS THEIR DEGREE OF MOTIVATION. THE FINAL
OUTCOMES ARE PERFORMANCE, INDIVIDUAL SATISFACTION, AND PERSONAL GROWTH AND DEVELOPMENT.
ALL THESE ELEMENTS COMBINE TO BUILD THE MODEL OR FRAMEWORK THAT THE ORGANIZATION OPERATES
FROM.

ATTITUDE HAS EMERGED AS ONE OF THE MOST IMPORTANT AREAS OF CONCERN FOR ALL ORGANIZATIONS.
IN FACT, IT HAS BECOME A DIFFERENTIATING FACTOR BETWEEN SUCCESS AND FAILURE IN BOTH THE SHORT
AND THE LONG RUN. IN THE PRESENT SCENARIO, IT HAS BECOME QUINTESSENTIAL FOR EVERY
ORGANIZATION TO DEVELOP POSITIVE ATTITUDE.

KEEPING THIS IS PERSPECTIVE, FOR OUR PROJECT, WE HAVE DESIGNED:

o A QUESTIONNAIRE TO IDENTIFY WHAT BEHAVIOURAL MODEL YOUR ORGANIZATION PREFERS TO
OPERATE IN

o A QUESTIONNAIRE BASED ON DIFFERENT PARAMETER OF JOB SATISFACTION AND HAVE DONE
QUANTITATIVE ANALYSIS ON EACH ONE OF THEM WE THEN CONSOLIDATED THE INFORMATION AND
WITH THE HELP OF MATHEMATICAL TOOLS (REGRESSION) WE HAVE CALCULATED EXACTLY THE
PARAMETERS THAT TEND TO AFFECT THE ATTITUDE OF AN EMPLOYEE.

Post the findings we will see whether the leadership styles are these organizations are the
right approach towards change management. We will also try to explore the most suitable
leadership style adapted towards high success rate during change management programs.



A CKNOWLEDGEMENTS

Apart from our efforts, the success of this project depends largely on the encouragement and
guidelines of Dr. V N S H R I V A S T A V A . Words defeat us in expressing our deep sense of gratitude for
our professor, whose tremendous support and constructive direction enabled us to select our
project and work towards overcoming all the challenges posed by it. His valuable time and
meticulous attention towards our project is fully acknowledged.

We also thank our colleagues who were a constant source of information and helped us with
conducting the surveys.



I NTRODUCTION -B ACKGRAUND OF THE STUDY

Elements of Organizational Behavio ur

The organization's base rests on management's philosophy, values, vision and goals.
This in turn drives the organizational culture which is composed of the formal
organization, informal organization, and the social environment. The culture
determines the type of leadership, communication, and group dynamics within the
organization. The workers perceive this as the quality of work life which directs their
degree of motivation. The final outcomes are performance, individual satisfaction,
and personal growth and development. All these elements combine to build the
model or framework that the organization operates from.

Models of Organizational Behaviour

There are four major models or frameworks that organizations operate out of,
Autocratic, Custodial, Supportive, and Collegial:

Autocratic — the basis of this model is power with a managerial orientation of
authority. The employees in turn are oriented towards obedience and dependence
on the boss. The employee need that is met is subsistence. The performance result is
minimal.



Custodial — the basis of this model is economic resources with a managerial
orientation of money. The employees in turn are oriented towards security and
benefits and dependence on the organization. The employee need that is met is
security. The performance result is passive cooperation.

Supportive — the basis of this model is leadership with a managerial orientation of
support. The employees in turn are oriented towards job performance and
participation. The employee need that is met is status and recognition. The
performance result is awakened drives.



Collegial — the basis of this model is partnership with a managerial orientation of
teamwork. The employees in turn are oriented towards responsible behaviour and
self-discipline. The employee need that is met is self-actualization. The performance
result is moderate enthusiasm.

ATTITUDE

Attitude is Evaluative statements or judgments concerning objects, people, or
events. Attitude is defined as "a way of looking at life; a way of thinking, feeling or
behaving." Therefore an attitude is not just the way we think, but the way we think,
feel and do.

Our attitude in the workplace is one of the most telling aspects of how others in the
company look at us and feel about us as a co-worker. A first impression can be a
hard thing to shake especially if it's a bad one. In other words, once you have gotten
a workplace reputation as being lazy, a slacker, a whiner or other negative tag, it can
be hard to get rid of.

TYPES OF ATTITUDES

o Job Satisfaction - A collection of positive and/or negative feelings that an
individual holds toward his or her job.

o Job Involvement - Identifying with the job, actively participating in it, and
considering performance important to self-worth.



o Organizational Commitment - Identifying with a particular organization and
its goals, and wishing to maintain membership in the organization (Affective,
Normative, and Continuance Commitment)

o Perceived Organizational Support (POS) -Degree to which employees feel
the organization cares about their well-being

o Employee Engagement -An individual’s involvement with, satisfaction with,
and enthusiasm for the organization

Attitude Surveys involve eliciting responses from employees through questionnaires
about how they feel about their jobs, work groups, supervisors, and the
organization. In our survey we have focused on the Job Satisfaction aspect of
attitude at work place. We have conducted a survey among people from various
industries and measured various parameters that determine job satisfaction.

Job satisfaction describes how content an individual is with his or her job. It is in
regard to one's feelings or state-of-mind regarding the nature of their work. Job
satisfaction can be influenced by a variety of factors, eg., the quality of one's
relationship with their supervisor, the quality of the physical environment in which
they work, degree of fulfillment in their work, etc.

One of the biggest preludes to the study of job satisfaction was the Hawthorne
studies which sought to find the effects of various conditions (most notably
illumination) on workers’ productivity. This finding provided strong evidence that
people work for purposes other than pay, which paved the way for researchers to
investigate other factors in job satisfaction.

MODELS OF JOB SATISFACTION
Affect Theory
The main premise of this theory is that satisfaction is determined by a discrepancy
between what one wants in a job and what one has in a job. Further, the theory
states that how much one values a given facet of work (e.g. the degree of autonomy
in a position) moderates how satisfied/dissatisfied one becomes when expectations



are/aren’t met. When a person values a particular facet of a job, his satisfaction is
more greatly impacted both positively (when expectations are met) and negatively
(when expectations are not met), compared to one who doesn’t value that facet. To
illustrate, if Employee A values autonomy in the workplace and Employee B is
indifferent about autonomy, then Employee A would be more satisfied in a position
that offers a high degree of autonomy and less satisfied in a position with little or no
autonomy compared to Employee B. This theory also states that too much of a
particular facet will produce stronger feelings of dissatisfaction the more a worker
values that facet.

Dispositional Theory
Another well-known job satisfaction theory is the Dispositional Theory. It is a very
general theory that suggests that people have innate dispositions that cause them to
have tendencies toward a certain level of satisfaction, regardless of one’s job. This
approach became a notable explanation of job satisfaction in light of evidence that
job satisfaction tends to be stable over time and across careers and jobs.

Two-Factor Theory (Motivator-Hygiene Theory)
Frederick Herzberg’s two factor theory attempts to explain satisfaction and
motivation in the workplace. This theory states that satisfaction and dissatisfaction
are driven by different factors – motivation and hygiene factors, respectively. An
employee’s motivation to work is continually related to job satisfaction of a
subordinate. Motivation can be seen as an inner force that drives individuals to
attain personal and organization goals.
Motivating factors are those aspects of the job that make people want to perform,
and provide people with satisfaction, for example achievement in work, recognition,
promotion opportunities. These motivating factors are considered to be intrinsic to
the job, or the work carried out. Hygiene factors include aspects of the working
environment such as pay, company policies, supervisory practices, and other
working conditions.



Job Characteristics Model
Job Characteristics Model is widely used as a framework to study how particular job
characteristics impact on job outcomes, including job satisfaction. The model states
that there are five core job characteristics (skill variety, task identity, task
significance, autonomy, and feedback) which impact three critical psychological
states (experienced meaningfulness, experienced responsibility for outcomes, and
knowledge of the actual results), in turn influencing work outcomes (job satisfaction,
absenteeism, work motivation, etc.). The five core job characteristics can be
combined to form a motivating potential score (MPS) for a job, which can be used as
an index of how likely a job is to affect an employee's attitudes and behaviours.

O BJECTIVE

The objective of the project is
to identify what behavioural model your organization prefers to operate in

to study the job satisfaction aspect of attitude at the work place

Job satisfaction depends upon various factors like pay and benefits, working
conditions, co-workers, job content and career progress. It also varies from person to
person depending upon age, gender, qualification and personal choices.
Keeping all these things in mind we have prepared a survey questionnaire and
conducted survey among people across Accenture Services Pvt Ltd and Mphasis.
This report discusses the findings of the study that examined the role of various
factors that affect job satisfaction in different companies and the behavioural model
that organization prefers to operate in.
The study sought to determine the relationship between all these factors with the
overall job satisfaction.



M ETHODOLOGY

Sample

The first major task at hand was to prepare the questionnaire for job satisfaction and
behavioural model for organization in which it prefers to operate in. Once we were
through with this part, the concern was on whom to check this questionnaire. So we
selected 30 people arbitrarily, 15 each from Accenture and Mphasis. We convinced
all of them to answer honestly, all the questions.

The main objective behind selecting people from different organisations was to
gather a consolidated set of thinking. As every industry has its very own way of
working, own principles and own priorities, thus we could get the major factors that
are responsible for job satisfaction. The table below presents the company, no. of
respondents, age-group and gender.

Accenture/Mphasis

Gender
Male Female
18 12

Table 1: Sample Data Count

Brief of Organizations

As we have assorted set of people from various industries and it is quite impossible
to give a laconic description of all of them, we selected some renowned
organizations in their fields. The major chunks were from the IT industry and rest
from all other. So the briefing is as:

Accenture is a global management consulting, technology consulting and technology
outsourcing company. Previously incorporated in Bermuda, since 1 September 2009
the company has been incorporated in Ireland with its global headquarters located



in New York. It is said to be the largest consulting firm in the world, as well as being a
global player within the technology consulting industry. Accenture is a Fortune
Global 500 company. As of 2010, the company had more than 200,000 employees in
more than 200 locations in over 120 countries. Accenture's current clients include 96
of the Fortune Global 100 and more than three quarters of the Fortune Global
500.For the fiscal year ended 31 August 2009, the company generated net revenues
of US$21.58 billion.

MphasiS, a unit of Hewlett-Packard Co., is an information technology services
company based in Bangalore, India. MphasiS is certified with ISO 9001:2008, ISO/IEC
27001:2005 and is assessed at CMMI v 1.2 Level 5. It is the sixth largest IT Company
in India with more than 38,000 employees as of 2010. The company has 29 offices in
14 countries with delivery centres in India, Sri Lanka, China, North America and
Europe.

In September 2009 MphasiS changed its brand identity by dropping EDS association
to become "MphasiS, an HP Company" after HP retired EDS Brand to become "HP
Enterprise Services". MphasiS operates as an independent HP subsidiary with its own
board and continues to be listed on Indian markets as "MphasiS Limited".

Method

The behavioural model questionnaire was used to find out the mode in which the
organization prefers to operate in. It is based upon the theory that organizations
generally operate out of one of four modes - Autocratic, Custodial, Supportive, or
Collegial. The lowest score possible for a model is 6 (Almost never) while the highest
score possible for a model is 30 (Almost always). 6 questions were used to predict
each kind of model.

The job satisfaction questionnaire was used to measure the different attributes that
lead to job satisfaction. Our questionnaire comprised 27 questions of which 5
questions were used to determine Rewards & Recognition, 5 questions sued to
determine Personal Development, 6 questions used to determine relationship, 7



questions used to determine working duration, 2 questions used to determine
diversification and 1 question used to determine job security. The respondents were
to choose the option from 5 options (scoring: 5 for Always, 4 for Often, 3 for Some
time, 2, for Rarely, & 1 for Never) which described the way they felt about each of
the attributes. Then there was another section of 6 questions which described the
general perception of people regarding job satisfaction.

The highest of the four scores indicates what model you perceive your organization
to normally operate in. If your highest score is 24 or more, it is a strong indicator of
the model it operates in.

The lowest of the three scores is an indicator of the stage your team is least like. If
your lowest score is 12 or less, it is a strong indicator that your organization does not
operate this way.

If two of the scores are close to the same, you are probably going through a
transition phase. If there is only a small difference between three or four scores,
then this indicates that you have no clear perception of the way your organization
behaves, or the organization's behaviour is highly variable.

Also note that if several scores are close to being the same, then the one on the right
could be stage that you company primarily operates out of. That is a collegial
company could have patterns of both custodial and supportive organizations

Procedure

All sample people from Accenture and Mphasis were mailed the questionnaire and
were also explained the purpose of survey so that we could get genuine responses,
the way the employees actually felt and would react in the given situations.

Then, the average score for each of the four models - Autocratic, Custodial,
Supportive, or Collegial was calculated for all filled questionnaire using the
categorization described in the method section.



Then, the average score for each factor i.e. Rewards & Recognition, Personal
Development, relationship, working duration, diversification and job security was
calculated for all filled questionnaire using the categorization described in the
method section.

The Pearson correlation coefficient was used to determine whether there were
significant relationships between Job Satisfaction and the different parameters we
considered to have an impact on job satisfaction. To find if the relationships were
significant, the level of significance was established at p<0.05.

Lastly, after interpreting the results we were able to judge which factors are more
relevant for overall job satisfaction of the employee.

D ATA A NALYSIS

Organisation Model
Autocratic Custodial Supportive Collegial

19% 19%

33% 29%

Fig1: Graph showing Organisation preferred model

Fig 1 shows the four major models or frameworks that organizations operate out of,
Autocratic, Custodial, Supportive, and Collegial. It is visible that the preferred mode
of operation for the chosen two companies is a blend of Supportive &Custodial.



Std.
N Minimum Maximum Mean
Deviation
REWARD AND
30 2 4 3.333333333 0.479463301
RECOGNITION
PERSONAL
30 1.6 4 2.893333333 0.54515631
DEVELOPMENT
WORKING
30 2 4.285714286 3.066666667 0.534171286
DURATION
RELATIONSHIP 30 2.666666667 4.666666667 3.627777778 0.624658272
DIVERSIFICATION 30 2.5 4.5 3.48 0.505418911
JOB SECURITY 30 2 5 3.2 0.886683087
OVERALL
30 2 4.2 3.218333333 0.706189792
SATISFACTION
Valid N (list wise) 30
Table 2: Descriptive Statistics

Table 2 shows the minimum, maximum, mean and standard deviation for the all the
categories along with the overall satisfaction.

4
3.5
3
Axis Title

2.5
2
1.5
1
0.5
0

Axis Title

Fig2: Graph showing mean for various factors

Fig 2 shows the means plotted for all the factors which are considered for job
satisfaction. Here, it can be observed, that the mean for personal development and
Security is closest to the mean for overall satisfaction score. Rewards and
recognition & Relationships mean scores are the highest.

Here for Regression & correlation Analysis, overall satisfaction is the dependent
variable and rewards & recognition, personal development, relationship, working



duration, diversification and job security are the independent variables. Figure 3
depicts the same

Table3: Correlation analysis

Correlation- Overall Satisfaction
0.8
0.7
0.6
0.5
Correlation

0.4
0.3
0.2
0.1
0
-0.1
-0.2
WorkDuratio Diversificatio RewardsReco
JobSecurity Relationships PersonalDev
n n g
Series1 0.112342041 -0.131980549 0.286339707 0.123759404 0.744122591 0.34920112

Fig3: Correlation Chart



Figure-4 shows the best fit regression line for reward & recognition and overall
satisfaction. As observed from the table, reward & recognition has very high degree
of correlation with overall job satisfaction. This reflects that reward & recognition
will greatly affect the overall job satisfaction of the employee.

5
OVERALL SATISFACTION

OVERALL
4 SATISFACTION
3
2 Predicted
OVERALL
1 SATISFACTION
0 Linear (OVERALL
0 2 4 6 SATISFACTION)
REWARD AND RECOGNITION

Fig4: Graph showing best fit

Figure-5 shows the best fit regression line for personal development and
overall satisfaction. As observed from the table, personal development has
high degree of correlation with overall job satisfaction. This reflects that
personal development will affect the overall job satisfaction of the employee.

5

OVERALL
4 SATISFACTION
3
2 Predicted
OVERALL
1 SATISFACTION
0 Linear (OVERALL
PERSONAL DEVELOPMENT


Figure-6 shows the best fit regression line for diversification and overall
satisfaction. As observed from the table, diversification has low degree of
correlation with overall job satisfaction. This reflects personal development
will affect the overall job satisfaction of the employee to a small extent.



5

OVERALL
4 SATISFACTION
3
2 Predicted
OVERALL
1 SATISFACTION
0 Linear (OVERALL
DIVERSIFICATION


Figure-7 shows the best fit regression line for Job security and overall
satisfaction. As observed from the table, Job security has very low degree of
correlation with overall job satisfaction. This reflects Job security will affect the
overall job satisfaction of the employee to a very small extent.

5

OVERALL
4 SATISFACTION
3
2 Predicted
OVERALL
1 SATISFACTION
0 Linear (OVERALL
JOB SECURITY


Figure-8 shows the best fit regression line for relationship and overall
satisfaction. As observed from the table, relationship has moderate degree of
correlation with overall job satisfaction. This reflects relationship will affect the
overall job satisfaction of the employee to a moderate extent.



5

OVERALL
4 SATISFACTION
3
2 Predicted
OVERALL
1 SATISFACTION
0 Linear (OVERALL
RELATIONSHIP

Figure-9 shows the best fit regression line for work duration and overall
satisfaction. As observed from the table, work duration has a low inverse
correlation with Overall satisfaction. This reflects work duration will negatively
affect the overall job satisfaction of the employee to a low extent.

5
OVERALL
Overall Satisfaction

4 SATISFACTION
3
2 Predicted
OVERALL
1 SATISFACTION
0 Linear (OVERALL
Work Duration


D ISCUSSION A ND R ECOMMENDATIONS

From the Pearson Correlation values we can conclude that there exists a positive correlation
(direct proportionality) between rewards and overall satisfaction, personal development
and overall job satisfaction, relationship and overall job satisfaction, diversification and
overall job satisfaction, job security and overall job satisfaction.

There exists a negative correlation (inverse proportionality) between working duration and
overall job satisfaction. The positive correlation between rewards and job satisfaction is a
result of the fact that, the more rewards and recognition that employee gets it helps him to
perform better and thereby instil a sense of satisfaction in him that his work is being
recognized thereby contributing to overall job satisfaction.



The positive correlation between relationship and job satisfaction could be a result of relax
mind-set, better team work and proper communication of problems and thereby faster
solutions all of which are a result of having better relationship with peers and higher
authority. Then there is the obvious factor of personal development which is what any
employee will look for in his jobs, so the more the employee feels he is having an addition to
his skills and thereby to his development the more satisfied he will be doing the work.

The positive correlation between jobs security and job satisfaction could be due to the fact
that that if people are more secured in their jobs they tend to attain higher levels of
motivation to do the job and this will have an impact on the satisfaction they drive from the
kind of work they do.

The negative correlation between working duration and job satisfaction could be due to the
fact that when employees work in different timings there could be a problem of co-
ordination and also the employees might feel that the division of work is not appropriate
leading to a dissatisfaction amount the employees, plus most people prefer to have a fixed
schedule each day and might not prefer frequently changing work timings so that could also
be a reason for the negative correlation between working duration and job satisfaction.

Now from an organizational point of view it is important to lay emphasis on the significant
parameters and make sure that these factors are taken care of to have high level of job
satisfaction among the employees, at the same time the moderately significant parameters
should not be neglected. From this study of ours we have found the various parameters that
can affect job satisfaction and how the employer must make sure on what factors to target
to maintain the motivation level of employees and thereby imbibe a feeling of job
satisfaction among them.

In today's fast paced world, change will happen and will affect everyone. Organizational
change driven by technology and world competitiveness is transformational, not just
directional. Effective CEOs who want to be in control of change in their organization know
that positive change is leader directed. Transformation begins with awareness and cannot
take place without insight. The most important factors in managing proactive change are
personal and organizational awareness. A high degree of personal and organizational



awareness improves staffing decisions, team building, communication, culture, and
leadership effectiveness. Awareness brings insights that transform "good" results into
"great" results.

Focused awareness establishes competitive advantage and creates consistent results,
including improved revenue and profitability. Successful leaders have a strong self-
awareness and deeply understand their emotions, strengths, limitations, values and
motives. They are realistic and honest with themselves and about themselves. They know
where they are headed and why.

Organizations must have a similar understanding. In both areas executives must be realistic.
They cannot rationalize problems away or convince themselves that the situation is
different than it truly is.

Organizational Awareness

Successful CEOs have a deep understanding of the organizational structure, leadership style
and culture of their companies. They know employees care about the value they contribute
and how satisfying their jobs are. Successful CEOs ask whether there is a gap between
perception and experience, how employee productivity could be enhanced and whether the
company culture promotes competitiveness. Structure is important. Inefficient bureaucratic
companies are not competitive. They demotivate their employees from taking initiative. On
the other hand, highly versatile organizations are often overly flexible and don't provide
stability. The proper balance for your organization is crucial to its success. Leadership style
determines an organization’s long term success.

Since employees always react to management's leadership style, proactive change is best
carried out in an atmosphere where employees feel valued, have the ability to help set
direction and initiatives, can develop personally and know management has their best
interests at heart. Culture also has a significant impact on organizational performance.
Daniel Goleman, the pioneer in emotional intelligence, determined through numerous
studies that culture can positively impact performance by as much as 25%. Personal
Awareness Effective CEOs understand that to be proactive in today's competitive
environment they must continually develop the strengths of their key people, share power



with them and encourage active participation. The management team that works together
to proactively effect change becomes a major organizational strength.

Effective CEOs also clearly understand themselves and the people in their organization. They
build strong interpersonal effectiveness into their organizations, creating an environment
where everyone works together with trust and openness. Organizations built on
competitiveness in the market and between departments do not easily establish trust.
People may be difficult and hard to understand with a poorly developed ability to read
others. This is why effective CEOs use surveys to assess personality characteristics that
correlate highly with job success.

These surveys provide strategic intelligence that shows why people behave the way they do.
Good assessments have a high degree of accuracy and meet legal guidelines. Executives use
many types of assessments; each designed to provide specific results for different needs.
Basic assessments are limited to evaluating only a few traits such as introversion /
extroversion and dominance / submissiveness. Higher order assessments may measure up
to ten traits and correlate them closely with job success.

Assessments have three uses:

1. At their most basic, assessments describe individual characteristics. They are commonly
used in hiring, avoiding the problem of hiring someone only to find out they don't meet
expectations. Surveys help determine whether a person will be a team player in a given
culture before they are hired. Numerous studies show that survey use reduces hiring
mistakes and turnover by up to 30%

2. Assessments may also be diagnostic and predictive. They tell us why a manager is the way
she is. Once we know why, we can predict how she will behave in new situations. We
minimize promotion mistakes that cause organizational problems and distract from
productive work

3. High order surveys are developmental. They provide the foundation needed for
executives to coach employees to a higher level of success. These surveys address
leadership, communication and productivity. They define personal characteristics so



management can help individuals achieve personal dynamic balance and interpersonal team
balance

Summary

Transformational change driven by technology and international competition makes running
a company very challenging. To cope, effective leaders need to build change into the
organization’s culture. Controlled change allows them to be proactive and maintain
competitive advantage. Deep and candid knowledge of organizational structure, leadership
style and culture provide the insight necessary to effect change. Similarly, understanding the
personal leadership characteristics of the management team adds even more insight.
Effective CEOs use impartial surveys to uncover basic organizational and personal
characteristics.

This tells them where the organization and individual team members are. Comparing that
information to where they want to be determines the gap they need to close. Surveys
provide strategic intelligence, allowing the management team to reduce uncertainty in the
decision process. They address leadership by revealing the unseen so management works
with a higher degree of certainty. Realistic insight gained from awareness is the precursor
for transformational change. Insight brings focused leadership. Focus drives performance.
Performance drives results.

Utilize Varied Leadership Styles

Good leaders understand that different management styles are needed to deal with
changing situations. The best leaders can easily use four of these methods.

Good teachers and leaders share a secret in their ability to communicate specific ideas or
actions to students and employees. They know different people learn and respond in
different and varied ways. Some of us learn by listening, some by seeing and others require
a more hands-on approach.

Leadership Styles - A exceptional leader can vary their management or leadership style to
best suit an individual employee, work group or business situation. Research first advanced
by Daniel Goleman in 2000, suggests that there are six leadership styles that can be



employed in the workplace. These styles are coercive, authoritative, affiliate, democratic,
pacesetting and coaching. Research conducted also shows that the more of these styles a
leader exhibits; the better they perform as leaders in their organization. The very best
leaders can utilize four or more these styles.

Implications of Change - Jerry Robinson Jr., a distinguished professor emeritus at Delta
State University, has drawn some comparisons between leadership styles and the ability of
an organization to handle change. Change generates conflict within an organization.
Successful leadership styles should vary with managerial implications of change and the
amount of time needed to accomplish the needed revision.

Directive Approach - Groups with few resources and limited time are likely to use a
directive approach (coercive or authoritative styles) to accomplish the desired goals. This is
a top down approach that would be familiar to those in the military or law enforcement
fields.

Mixed Directive Approach - An organization with a little more in the way of time and
resources may use a mixed directive style that might include affiliate or democratic styles to
accomplish their goals. This can be done when there is time for bargaining and negotiation
among those involved in the required change.

Developmental Directive Approach - Finally, if change is planned and viewed in the long
term, a developmental directive type style can be used. Developmental directive leadership
styles would include pacesetting and coaching. The developmental directive style offers the
most opportunity for growth of a learning organization and employee development. This
type of planned change is for groups having substantial time and robust resources to
facilitate the process.

Putting it together - Warren Bennis known as the foremost expert on organizational change
and leadership described some common leadership traits in 1994. Bennis says that an
effective leader has a guiding vision or purpose for the organization, passion or enthusiasm
for the work being done, personal integrity, curiosity about the world and the daring to try
something new. The skill of integrity is subdivided by Bennis into self-knowledge, candor
and maturity. Daniel Goleman's pioneering work in emotional intelligence found that



effective leaders have mastery of the core competencies identified by Bennis and make use
of multiple leadership styles.

Selecting the Right Leadership Style

Effective leadership in the change management process is particularly important because of
all the factors involved in organizational change. According to McShane and VonGlinow
(2004), a leader must be able to “influence, motivate and enable others to contribute
toward the effectiveness and success of the organization.” Stabilizing the organization after
the change process begins is critical to continued success.

McShane and VonGlinow (2004) outline seven competencies to effective leadership. Those
competencies include emotional intelligence, integrity, drive, leadership motivation, self-
confidence, intelligence and knowledge of the business. Leaders with this set of
competencies and skills should be effective in their leadership ability regardless of the
leadership style that they favour.

Selecting the right leadership style to influence the effectiveness of change is important if
large organizational change is to be successful. Different leadership styles to consider
include visionary/inspirational leaders, commanding leaders, situational leaders, people-
oriented and task-oriented leaders. The right leadership style might change as the situation
changes within an organization.

A visionary/inspirational leadership style should be used when a leader is trying to move
people towards a shared dream. However, a coaching leadership style might be used to
effectively connect what a person wants with organizational goals. A commanding
leadership style gives clear direction and is useful in cases of emergency. The situational
leadership model suggests that leaders change their style of leadership based on how ready
their followers seems to be.

When drastic organizational changes are involved, having leaders who are people-oriented
as opposed to task-oriented will be better able to anticipate the needs of the employees as
they motivate and enable them to change. Also, by using Kurt Lewin’s three-stage model for
change which involves initiating change (unfreezing), managing the change (changing) and



then stabilizing the change (refreezing), a leader can effectively manage the change process
and the employees involved in the change.

Steps for Leading Change

Kreitner and Kinicki (2004) outline John Kotter’s eight steps for leading organizational
change as another model to follow when attempting to manage the change process. Kotter
suggests establishing a sense of urgency, empowering groups of people to lead the change,
and developing a vision or strategy. Kotter also recommends eliminating barriers to change,
generating short-term successes, reinvigorating the change process and finally anchoring or
stabilizing the new approaches.

Effective leadership in the change management process is particularly important because of
all the factors involved in organizational change. As situations shift, leaders must be able to
adapt and motivate employees to reduce fear, uncertainty and loss of employee morale.
Anytime an organization goes through major changes, using the most effective leadership
style can directly impact the success of the change and impact to the organization.

How Command and Control as a Change Leadership Style Causes Transformational Change
Efforts to Fail

Command and control is by far the most common change leadership style. Most of today’s
leaders were mentored themselves by command and control managers, and the culture of
most organizations is still based on command and control norms. It is hard to escape this
leadership style’s historic influence and dominance. But as a change leader, you must.
Here’s why.

Command and control as a change leadership style destroys virtually any chance of success
in nine out of ten transformational change efforts. For starters, command and control:

•Limits the engagement and commitment you must develop in your employees, and often
actually promotes resistance



•Lessens your chances of creating a change process that will lead to success

•Keeps you from being able to make the real-time course corrections during
implementation that are necessary for optimal results

•Minimizes attention to necessary people issues like consistent communications and
emotional reactions to change

In this article, we will explore the limitations of command and control as a change
leadership style, and introduce “co-creating” as an alternate way of leading transformation
that delivers higher quality change results AND simultaneously establishes a foundation for
a high performing culture.

As you read, recall the unique features of transformational change:

•The process of transformation usually begins long before a clear future state can be
identified

•The sheer magnitude of transformational change demands a major shift in the leaders’ and
employees’ mind-sets and behaviour and the organization’s culture

•The ultimate success of the transformational change process depends on how well the
change leaders make real-time adjustments to their outcomes and process as new
circumstances occur

We will delve into each of these key features shortly. But first, let’s explore what drives the
command and control style.

Command and Control Is Based on a Number of Erroneous Assumptions

Command and control is based on establishing and maintaining power over, and control of,
people and organizational processes. On the surface, this sounds like a good idea: you
certainly don’t want people’s behaviour or steps in your change process to be “out of
control.” However, this notion of being able to command and control people and processes
only goes so far.



A number of usually unspoken assumptions drive the use of command and control. As you
read them, imagine the behaviour of change leaders you know who believe in these
assumptions:

•Leaders know best

•Leaders should know where they are going (goals, outcomes) and must predetermine the
plan for how to get there (process)

•Controlling human behaviour and action during implementation—so there is minimal
variance from the predetermined plan—is a requirement of success

•The environment/marketplace won’t change enough to be a factor during implementation,
and if it does, leaders can and must control its influence

•If leaders encounter unplanned variables, they must quickly control the negative impacts
on the change effort through problem solving and then return to the implementation of
their current plan

•Employees won’t naturally contribute positively to the change effort, so leaders must
“help” them by commanding and controlling their behaviour and involvement. Leaders must
force people’s cooperation.

•Needing to alter change plans connotes leadership failure and means that the change
leaders did not plan thoroughly enough

You can argue that these assumptions are somewhat applicable for two types of
organizational change—developmental and transitional change. However, they are
completely false and inappropriate for transformational changes. (See Beyond Change
Management: How to Achieve Breakthrough Results through Conscious Change Leadership,
Dean Anderson and Linda Ackerman Anderson, pages 51–79, for a complete discussion of
the different types of change.)

In projects that can be isolated from their environment (e.g., protected from outside
influences) and for changes that do not require people to change beyond learning new



technical or operational skills, command and control can work. In these cases, a
predetermined outcome and project plan can be established and executed through a
relatively stable set of circumstances. Employees won’t have to change much and won’t
need to be fully committed to the effort to enable success. Keep in mind, however, that
making command and control work in such developmental or transitional change projects is
a far cry from making the projects extremely successful. Command and control seldom leads
to optimal results in any type of change.

The above assumptions are erroneous regarding transformational changes for a number of
reasons. First, transformation is usually catalysed by major changes occurring in the
environment/marketplace. These changes are not isolated events, but in this day and age,
continuous. Consequently, change leaders can never be sure of their destination when they
begin their change efforts.

More often than not, circumstances are likely to arise that demand a change in direction.
Since change leaders cannot protect their change efforts from the significant influences of
the environment, they cannot create a plan and expect to control all of the dynamics that
may impact its execution. They will need to continuously alter or course corrects both their
plan and their destination throughout the change.

Consequently, to have any level of success, change leaders need many eyes and ears tuned
to the change effort, marketplace, and customer dynamics, as well as internal organizational
forces. Whose eyes and ears do they need? Employees!

Employees frequently receive critical data for course correction long before leaders because
employees are closer to the action. They are keys to the early warning system for needed
adjustments to both the goals of the transformation and the plans for getting there.
Therefore, employees need to participate as full players, not coerced victims. They must
emotionally “own” the change and understand its intent as much as the leaders do so they
can contribute to moving it forward in a positive direction.

Furthermore, in transformation, the nature of the change is so profound that the
organization’s culture and employees’ mind-sets and behaviour must change to succeed.



Both leaders and employees must evolve their mind-sets about how work gets done, their
role in the work, and the way the organization functions.

For instance, they might need to embrace new business models, develop partnership
relationships with previously adversarial departments, design radically new work processes,
take on more responsibility, etc. Leaders can command and control employees to learn new
technical skills, but they cannot coerce this level of personal change. That can only be
accomplished by willing participants— willing because they see the value and necessity for
both themselves and the organization. Therefore, a change leader’s mind-set, style, and
behaviour, and the change process they design as a result of their orientation, must catalyse
employees to want to participate, to choose to contribute, rather than force them to do so.

The Key Is to Co-Create with Employees and Circumstances, Not Exercise Power or Control
Over Them

Co-creating implies working with. It means operating as a team, aligned across hierarchical
and functional boundaries in pursuit of what is best for the overall organization. A change
leader operating in a co-creative style views employees as strategic partners in the change,
not just “targets” of it. Pragmatically, this means:

•Providing employees all the marketplace information about why the change is necessary
(the case for change)

•Asking for and using employee input about the vision or direction of the change (its
intended outcomes)

•Involving employees in the design of what needs to change (the content of the change)

•Putting employees on teams critical to making the change happen, such as the
communication team, the design team, even the change leadership team itself

•Giving employee’s decision authority on the change as it pertains to their “local”
environment



•Providing employees with a clear structure and process for reporting information and
issues pertinent to the success of the change, including potential course corrections to it

Regarding the actual change process, working with (co-creating) means not trying to stamp
out problems—those “negative” outside influences that were not planned for, but instead,
letting those forces influence your plan and direction.

Where a command and control leader will try to eradicate problems so his or her rigid plan
can continue, a co-creative leader will “listen to the messages” embedded in problems to
discover if course corrections are necessary.

A co-creative leader assumes variance will occur and perceives problems as “gifts” revealing
needed course correction so they can achieve the best result. Where change leaders
operating in a command and control orientation often miss wake-up calls for alteration and
march down paths doomed for failure, co-creative change leaders hear these wake-up calls
and engage with employees to figure out how to handle them successfully (i.e., they co-
create solutions.)

Transformational Change Success Requires Change Leaders to Transform Themselves to
Embrace and Model a Co-Creative Style

In the late 1980’s and early 90’s, Being First, Inc. found out the hard way that an
organization that attempts to design and implement transformation without addressing
personal transformation in its leaders is doomed for failure. Back then, we accepted, albeit
reluctantly, clients who wanted our cutting-edge change but were unwilling to engage in the
critical personal transformation work of the leaders.

We learned then that the key to successful transformation was evolving leaders’ mind-sets
about change. Over time, we decided as a firm to no longer engage in long-term consulting
relationships unless the client, after some initial change education, agreed that co-creating
was critical to their success, and that they would provide The Breakthrough to Change
Leadership program to their leaders (CEO included). This program is our method for



experientially introducing leaders to creating and demonstrating the profound benefits and
tangible change results this orientation can deliver to their bottom line.

Transformational leadership is the style of leadership a manager uses when he or she wants
a group to push the boundaries and perform beyond the status quo or achieve an entirely
new set of organizational goals. When Lee Iacocca took the helm of the Chrysler
Corporation, his vision and use of transformational leadership were integral to the renewed
success of the American automobile company in the face of the almost uncheckable
Japanese car industry of the early 1980s.

Qualities of the Transformational Leader

The qualities of a transformational leader include the following:

•Charisma - A transformational leader is one who has a clear vision for the organization and
is able to easily communicate that vision to group members. For example, a
transformational leader can easily detect what is most important to individuals and to the
organization as a whole.

•Confidence - A transformational leader has a good business sense and is able to see what
decisions will positively affect the organization. This gives the leader the ability to act
confidently, inspiring trust in team members.

•Respect and loyalty - A transformational leader inspires respect and loyalty in individuals
by taking the time to let them know they are important.

•Expressive praise - A transformational leader is often expressive in praising individuals and
the team on a job well done. Letting them know how much they contributed to one success
will steel them for future challenges.

•Inspiration - A transformational leader is a master at helping people does something they
weren't sure they were capable of doing. The leader achieves this through praise and
encouraging statements.



Working toward Transformation

No matter how charismatic or innovative the leader, transformation of an entire
organization, or even a unit, does not happen quickly. Most transformations involve
changing the corporate culture—often from one of stale clock-watching and low risk to one
of innovation, moderate risk, and competition.

Changing how a large group of individuals works and thinks is not an easy task. Calling a
meeting and telling the organization en masse that they are expected to change will not
work. To change the entire organization, a transformational leader must start with the
building blocks of the organization: the individual contributors.

Individualized Attention

You have your vision for the future of your group, and your employees are aware of that
vision. But no matter how lofty the goal, no matter how big the envisioned win, pep-rally-
style speeches often do little to motivate the individual. This is because the individual is
often motivated to change only when it is for the greater good of self, not for the greater
good of the group. A transformational leader must evaluate the individual contributors in
the organization and discover how to motivate them by playing on their sense of self-
interest. This does not mean that if you employ 2,000 people that you need to sit down with
each of them and find out how to light a fire in them. However, you could meet with a
representative sampling of those individuals. Also, if you do employ 2,000 people, chances
are that you have some intermediate-level managers who could also use some motivation.
The philosophy that you pass on to your direct reports will trickle down to their direct
reports.

Looking Beyond "Me"

Once you discover how to motivate your group by appealing to their self-interest, try to
communicate to them what effect their work has on the entire organization. Often, when a
person realizes that his or her position really does make a difference, he or she will find a



new respect for his or her place in the organization. Individuals will then be working for the
benefit of themselves as well as the benefit of the organization.

Motivating Groups

Figuring out the individuals who make up your unit is only half the battle. The successful
transformational leader must also learn how to communicate to groups within the
organization his or her vision and the need for change. Danielle is responsible for running a
chain of high-end bakeries. New to the job, she wants to turn the organization around and
beat its only competitor. Although she recognizes that the individuals working at each store
know their jobs well and have years of experience in the business, she wants to reinvigorate
the group and get them to commit to new organizational goals that will position the
company better in the increasingly competitive market. Danielle is familiar with the
individuals in her group, but now she must turn to some tactics that will help the group pull
together as a team and bring about organizational change.

To do so, a leader can try the following motivators:

 Rewards - A leader can raise the group's awareness of rewards for bringing about
positive change. For example, if you have a formalized reward system, such as merit
bonuses make sure your employees are aware of the policy. Also, you might make it
clear to the group that their success will contribute to a larger win for the
organization, which could result in increased business. Increased business, in turn,
would come back to the employees in the form of increased prosperity
 Urgency - An integral step in bringing about organizational change is helping your
group recognize the sense of urgency for creating that change. A leader might say
that if the organization does not change now, it may be too late in the future. For
example, most companies in the mid-1990s needed to start paying attention to the
Internet and how their businesses would integrate the Internet into their way of
relating to the customer. Even companies that have nothing to do with media or
communications have developed a strategy for embracing the Internet



 Excitement - To bring about organizational change, a transformational leader must
also discover a way to get people excited about being part of a sweeping
organizational change—for example; helping the group to understand that their
efforts will bring about an industry innovation.

A PPENDIX



Appendix A

Interpretation of Degree of Correlation:

1. Perfect correlation: If Pearson’s correlation coefficient value is near ± 1, then it said to be a perfect
correlation.

2. High degree of correlation: If Pearson’s correlation coefficient value lies between ± 0.75 and ± 1, then
it is said to be a high degree of correlation.

3. Moderate degree of correlation: If Pearson’s correlation coefficient value lies between ± 0.25 and ±
0.75, then it is said to be moderate degree of correlation.

4. Low degree of correlation: When Pearson’s correlation coefficient value lies between 0 and ± 0.25,
then it is said to be a low degree of correlation.

5. No correlation: When Pearson’s correlation coefficient value lies around zero, then there is no
correlation.


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