Week 3 - Topic Overview

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Week 3: Change Management, Inclusivity, and Culture in Leading Organizational Projects

Table of Contents
3.1 Introduction ...........................................................................................................................................................2
3.2. Learning Outcomes ..............................................................................................................................................2
3.3 Change Management and Adaptive Leadership .................................................................................................2
3.3.1 Transformational Leadership ........................................................................................................................6
3.4 Inclusivity, and Culture in leading organizational projects ...............................................................................7
References ....................................................................................................................................................................9

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3.1 Introduction
The process of change should be embraced and accepted by employees, as it is the outcome of
coordinated efforts and effective control during the transition. Hence, both the organisational
culture and the leader play crucial roles in the change management process. According to Al-Ali
et al. (2017), effective leadership during times of change has a significant influence on
employees' acceptance of the change. It also helps to minimise resistance and foster better
collaboration among management members, ultimately contributing to the successful
achievement of transformation goals. According to O'Donovan (2018), change leadership
capabilities have an impact on change initiatives, regardless of whether they are business-as-
usual or change projects. These capabilities define roles such as the change sponsor and the
broader leadership team. According to Al-Ali et al. (2017), leaders can effectively facilitate the
success of change by acting as role models and demonstrating a positive attitude towards the
change.

3.2. Learning Outcomes


Upon the completion of this week of study, you will be able to:
LO.1 Explain and critically analyse the theories and concepts of leadership and
management and their application in organisations and on projects.
LO.2 Critically evaluate the role of leaders in ethically managing change and in working
collaboratively, ethically, and effectively to support project execution.
LO.3 Explain and critically evaluate the processes required to ensure various elements of
strategic value-enhancing practices are implemented within HR practices.
LO.4 Critically evaluate professional and inclusive skills sets in relation to collaborative
working.

3.3 Change Management and Adaptive Leadership


Change according to Oakland and Tanner (2007), represents an ongoing process of changing
events that occurs in our daily existence. Change is a necessary component of existence. When
people are directly affected by new methods of doing things, they frequently resist them.

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Employees are frequently apprehensive and resistant to the implementation
of new strategies to support organisational change. Change is an integral part of a manager's
responsibilities, and it has become more prevalent in recent years. According to Kotter (2011),
managers have the ability to foster innovation and enhance the adaptability of their organisation.

Change management is the process of instituting substantial changes in various aspects of an


organisation, such as information technology, organisational processes, business structures, and
job assignments. The goal is to minimise the risks and costs associated with change while
maximising the potential benefits that can be realised. Change management theory is the theory
associated with organisational change that involves assessing the risks while maximising the
benefits of this process. The theory of change management is the process of effectively
administering significant organisational changes (Kansal & Chandani, 2014). The primary
objective is to minimise hazards and costs while maximising potential benefits.

Change management is an essential component of organisational transformation. Hechanova and


Cementina-Olpoc (2013), found that when individuals perceive that the implementation of
change is managed fairly, they are more likely to have positive reactions toward the change and
the organisation. This perception appears to depend on the leaders' ability to consistently execute
procedures, provide accurate information, engage employees in the change process, demonstrate
commitment to the change, and allocate the necessary resources for the change to be successful.
Change management is influenced by a number of factors, including the quality of change
communication, participation, the attitude of upper management towards organisational change,
and the assistance provided by supervisors.

It is a well-known fact that the majority of business environments are characterised by perpetual
change or uncertainty. To thrive, businesses must either swiftly react to changes in their
competitive environments or proactively anticipate shifts in consumer demographics, future
technologies, and potential new products and services. This is essential for businesses that wish
to reinvent their industries. It is essential to recognise that changes in the industry are motivating
companies, particularly those with an entrepreneurial mentality, to seize the chance to redefine

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themselves and their respective business sectors. In the future, as
competition intensifies and both existing and new technologies are perpetually exploited, the
likelihood of falling behind industry changes will likely increase. Organisational transformation
is essential for the survival of businesses. Organisational change management and transformation
have become permanent features of the business environment. According to Jovanovic (2015),
strategic management should be referred to as "strategic change management".

Leadership that is both adaptable and flexible entails modifying one's behaviour as the situation
demands. Numerous terms have been used to define leaders who can accurately assess the
situation and adjust their behaviour accordingly. Flexible, adaptable, agile, and versatile are
examples of these terms (Kaiser, Lindberg, & Craig, 2007). There is substantial ambiguity in the
management and leadership literature regarding the nature and evaluation of flexible leadership.
One reason for the ambiguity is that contexts in which flexible leadership can occur vary. For
instance, a leader must be flexible within the same position as circumstances change, as well as
when moving from one form of leadership position to another with different responsibilities and
challenges.

As the rate of change within organisations accelerates, flexible and adaptable leadership is
becoming increasingly essential for the majority of managers and administrators (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
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.

In a typical day or week, most leaders are responsible for a variety of duties, and it is often
necessary to switch quickly from one type of activity to another (DeRue, 2011). Different duties
typically necessitate distinct leadership styles. In addition, subordinates frequently differ in terms
of their experience, skills, values, and needs, and a leader's interactions with various individuals

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should reflect these differences. For instance, it is appropriate to delegate
more to subordinates with strong skills and a strong commitment to achieving task objectives.
Adaptability is also required when a subordinate's skills and motivations evolve over time. As a
subordinate gains experience and confidence, it is appropriate to delegate more responsibilities.
When a sudden, out-of-the-ordinary event threatens to disrupt normal operations or cause
damage to people or property, the organisation must respond quickly but appropriately to
minimise the negative effects (DeRue, 2011). How a leader manages these immediate crises is
indicative of his or her adaptability and flexibility as a leader. Over a longer period of time,
significant changes in the external environment create new threats or opportunities for the
organisation, and it is often necessary to modify strategies or tactics to ensure the organization's
continued survival and effectiveness.

The extent to which a leader makes appropriate adjustments to strategies and tactics is an
additional indicator of adaptable and flexible leadership. It is essential for leaders to comprehend
the various situations that require flexible and adaptive behaviour. For each context, they must be
able to diagnose the situation and identify the appropriate forms of behaviour. In addition, they
must be adept at employing a variety of behaviours (DeRue, 2011). Leaders require mental
models that facilitate comprehension of the complex effects of their behaviours on multiple
objectives, as well as the necessity of balancing competing values. Leaders must recognise and
seize opportunities to increase their self-awareness of pertinent traits, skills, and behaviours and
to develop necessary skills before they are required. Leaders should also recognise their
obligation to assist subordinates in developing and employing the skills and behaviours
necessary for flexible and adaptive leadership. Being flexible and adaptable in a world full of
change and uncertainty is challenging and stressful, and leaders must have a strong commitment
to doing what is necessary and ethical (Yukl & Mahsud, 2010).

Key principles of adaptive leadership by Pircher & Seuhs-Schoeller (2015): • Leadership


capacity • Strong relationships • Shared and individual responsibility • Clear objectives •
Accepting and managing risk • Sharing resources • Exchanging ideas • Challenging norms •
ongoing growth • Addressing obstacles • Addressing the holding environment.

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3.3.1 Transformational Leadership
Transformational leadership is a concept that involves influencing and bringing about significant
changes in the attitudes and assumptions of members within an organisation. It also involves
fostering support for the organization's mission, objectives, and strategies. The concept refers to
a leadership process that is primarily characterised by its outcomes, which include substantial
changes in the culture and strategies of an organisation or social system. Transformational
leadership involves a leader's ability to influence their subordinates in a way that empowers them
to actively participate in the organization's transformation. Transformational leadership is
commonly seen as a collaborative process that includes the actions of not only the executive
managers but also leaders at different levels and units within the organisation (Bass and Riggio,
2006).

The four facets of transformational leadership are charisma or idealised influence, inspirational
motivation, intellectual stimulation, and individualised consideration. Charisma, also known as
idealised influence, refers to the degree to which a leader's exemplary actions inspire followers to
identify with them. Charismatic leaders demonstrate strong conviction, confidently take
positions, and effectively appeal to the emotions of their followers. Inspirational motivation
refers to the degree to which a leader effectively communicates a vision that captivates and
inspires their followers. Leaders who possess inspirational motivation have the ability to
challenge their followers by setting high standards. They effectively communicate optimism
about achieving future goals and also emphasise the significance of the current task at hand.
Intellectual stimulation refers to the degree to which a leader encourages critical thinking,
embraces calculated risks, and actively seeks input from their followers. Leaders who possess
this trait have the ability to inspire and cultivate the creativity of their followers. Individualised
consideration refers to the degree to which a leader pays attention to the specific needs of each
follower. This involves acting as a mentor or coach to the follower, as well as actively listening
to their concerns and addressing their needs (Judge & Piccolo, 2004).

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3.4 Inclusivity, and Culture in leading organizational projects

Project leadership encompasses more than just the management of tasks, budgets, and deadlines.
It is important to foster a culture of diversity and inclusion, where each team member is valued,
respected, and encouraged to contribute their best (Shore et al., 2011).
Diversity and inclusion play a crucial role in achieving project success, fostering innovation, and
ensuring customer satisfaction. Diversity refers to the composition of a team that encompasses a
wide range of perspectives, backgrounds, skills, and experiences, which align with the needs and
preferences of stakeholders and the market. Inclusion refers to the act of guaranteeing that each
member of the team feels a sense of belonging, trust, and support, and is able to actively and
genuinely participate in the project (George, McGahan, & Prabhu, 2012). Research has
consistently demonstrated that teams that are diverse and inclusive tend to outperform their
counterparts. These teams exhibit faster problem-solving abilities and are more effective in
delivering value to both customers and the organisation. Skilful management and inclusivity are
essential for harnessing the benefits of diversity. Diverse teams, when lacking inclusion, are
more likely to experience chaos, resulting in reduced productivity and engagement, increased
turnover, and potential litigation. Managing a group of people with similar backgrounds and
experiences is generally easier than trying to get teams composed of diverse individuals to
appreciate and respect their different thought patterns and behaviours on a personal level (Shore
et al., 2011).

Even when diverse teams are led by skilled and inclusive leaders, they may initially be
outperformed by homogenous teams. This is because the introduction of different perspectives,
experiences, backgrounds, thinking, and communication styles can lead to disruption and conflict
in the early stages of team collaboration. Inclusive leaders are essential for maintaining this
competitive advantage (Shore et al., 2011). They are the individuals who help organisations
move closer to their goals of achieving equity, inclusivity, and diversity. They are the ones
taking the lead in designing systems that unlock the full potential of all their talented individuals.
They are actively promoting diversity initiatives and affinity groups, advocating for structural

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changes, serving as role models, and ensuring that other leaders are held
accountable for increasing the representation of underrepresented talent in the pipeline. Most
importantly, they are not solely focused on short-term goals. Instead, they consistently strive to
drive and manage changes that promote inclusivity and diversity within the organisation (Shore
et al., 2011). An excellent illustration of establishing an inclusive work environment is fostering
an atmosphere where employees feel at ease expressing their perspectives. Companies can foster
an environment that promotes open communication and encourages employees to freely share
their opinions. This can be achieved by creating a safe space where individuals feel comfortable
expressing their thoughts and curiosities without fear of judgement (Shore et al., 2011).

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References
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.
DeRue, D. S. (2011). Adaptive leadership theory: Leading and following as a complex adaptive
process. Research in organizational behavior, 31, 125-150.
George, G., McGahan, A. M., & Prabhu, J. (2012). Innovation for inclusive growth: Towards a
theoretical framework and a research agenda. Journal of management studies, 49(4), 661-683.
Hechanova, R. M., & Cementina-olpoc, 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), 755-768.
Kaiser, R. B., Lindberg, J. T., & Craig, S. B. (2007). Assessing the flexibility of managers: A
comparison of methods. International Journal of Selection and Assessment, 15, 40–55.
Kansal, S., & Chandani, A. (2014). Effective management of change during merger and
acquisition. Procedia Economics and Finance, 11(0), 208-217.
Kotter, J. (2011). Change Management vs. Change Leadership--What's the Difference?. Forbes
online. Retrieved, 12(21), 11.
Oakland, J. S., & Tanner, S. (2007). Successful change management. Total Quality Management
& Business Excellence, 18(1), 1-19.
Pircher, R., & Seuhs-Schoeller, C. (2015). Self-leadership: guiding principles for adaptive
leaders and organizations. The Journal of American Business Review, 3(2).
Shore, L. M., Randel, A. E., Chung, B. G., Dean, M. A., Holcombe Ehrhart, K., & Singh, G.
(2011). Inclusion and diversity in work groups: A review and model for future research. Journal
of management, 37(4), 1262-1289.
Yukl, G., & Mahsud, R. (2010). Why flexible and adaptive leadership is essential. Consulting
Psychology Journal: practice and research, 62(2), 81.

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