Back to course 'BUS401: Management Leadership'

Topic outline

  • Unit 3: Change Management and Decision-Making

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    The most difficult task for a manager is implementing changes without disrupting the whole business. Changes to the normal business operation will have supporters and protesters. It is important for a manager to understand the point of views from both sides. Sometimes the changes are minor, such as a new benefits plan. Other times major changes must be made, such as moving the operations across the country and laying off employees. The only certainty with change is that you cannot please everyone, but a good manager will anticipate reactions and focus on effective communication.

    Both major and minor changes are often the result of a decision-making process. There are many different ways to approach a decision, and each method has an appropriate time and place. Decisions can be based on dictatorial edicts, on a leader's decision derived from consultation with subordinates, or on a more collective process where everyone can develop and agree on the final outcome. These methods will be presented in this unit. In addition, one must also address the real probability that decisions, regardless of the process by which they are derived, will be clouded by any of a number of biases. We also present the most critical of those biases, including anchoring, groupthink, and selective perception, in this unit.

    Completing this unit should take you approximately 16 hours.

    • Upon successful completion of this unit, you will be able to:

      • utilize Lewin's three step model of change in relating types of change to the decision making process;
      • assess various methods of communicating change within an organization;
      • compare and contrast decision making based on individualized and team processes;
      • evaluate the strengths and weaknesses of rational and "satisficing” approaches to decision making; and
      • analyze the impact of biases such as anchoring, groupthink, and selective perception on the decision making process.

    • 3.1: Change Management

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        Planning and Executing Change Effectively URL
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        As you read, pay attention to Kurt Lewin's three-stage model of planned change. Then, critically evaluate the reasons concepts like "unfreezing" and inclusion can bring about change in an organization. Write a response in your journal.

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        Managing Change for Organizations Page
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        Read this section. Then, thinking back to what you read about Kurt Lewin, discuss why Lewin's research on change is applicable today. You should be picking up on a theme in this course about how the ways our concept of leadership has evolved and differed among various professional environments, such as national politics, professional athletics, and of course, business.

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        The Need for Communicating Change Page
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        Read this article. Can you think of a time when you felt left in the dark about a change? How did it make you feel, and how did you react? Respond in your journal.

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        Encouraging Organizations to Change: The Influence Model Page
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        Read this article, which describes a square with four quadrants representing how management can introduce change. Draw this model in your journal.

    • 3.2: Decision Making

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        Making Hard Choices URL
        Students must
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        Watch this series of videos. Decision-making is a common topic among TED speakers, so feel free to explore what else is out there.

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        Techniques for Consensus Decision Making in Large Groups: the Spokespersons Council Method File
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        Large groups often function differently than smaller, more intimate teams. As a leader, you need to be able to navigate both types of groups. Read this article and discuss how you have seen decision-making techniques utilized by a large group of people – either a group you were part of or other groups you have observed. If you cannot think of a relevant experience, think about how decision making might play out with any large group. Journal about your experience leading or observing the leadership of large groups.

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        Problems with the Rational Decision-Making Model Page
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        Compare and contrast Prospect Theory and Bounded Rationality. In your journal, discuss which theory you believe to be more valid and why.

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        Non-Rational Decision Making Page
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        Read this article and explain what you think the role of emotion in decision-making is. Write what you feel in your journal, and explain why.

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        What's Your Default? Page
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        Should organizations depend more on their leader's strength of conviction, or their leaders' overall competency to lead others?

    • 3.3: Biases

      • Biases are a regular part of everyday life. The best way to avoid bias when deciding is to pretend you are seeing all available information for the first time. History's successes and failures may help when making decisions, but they risk influencing decisions when the situation is not the same.

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        The Psychology of Groups URL
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        Review this article and reflect on situations where you were part of a large group. What tactics or strategies did your group use to make decisions? Were those tactics or strategies effective?

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        Selectivity of Perception Page
        Students must
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        Read this article and identify how advertising or marketing utilizes consumer perception to sell its products. Think about how someone might try to persuade a small audience when presenting a group at work. How is that similar to these marketing techniques? Write a short reflection in your journal.

    • Unit 3 Assessment

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        Unit 3 Assessment Quiz
        Students must
        Mark as done

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.