Unit 1: Introduction to Leadership and Organizational Change
This unit focuses on organizational change and how good leadership can lead that change into the future. We will review various leadership styles and how each of those styles might help to implement and lead change in any organization. In this unit, you will be able to determine your own leadership style.
Completing this unit should take you approximately 10 hours.
Upon successful completion of this unit, you will be able to:
- compare various leadership styles;
- compare how different leaders may affect change;
- describe organizational change in the business setting; and
- analyze why organizational change in a given organization may need to occur for business purposes.
1.1: What Is Organizational Change?
Organizational change occurs in every business and may occur frequently or infrequently. Changes must occur in every business for the business to survive and thrive. How well that change is implemented can be the key to success or failure. Understanding organizational change and how to effectively implement change is a skill that is worth developing in business today.
Organizational change occurs when changes affect the organization as a whole; these changes might include changes in company goals, the development of new products, former products being eliminated, changes in management, or changes in operations. Watch this short video about leading change in business today.
Change can be productive and move us forward in our personal lives and also in business. Some people fear change, and it can paralyze some employees. This video by Simon Sinek addresses change and how we can learn to embrace change.
This section reviews organizational change and why it is necessary for business today. Read about the fundamentals and types of organizational change. After you read, answer the two concept check questions at the end to check your understanding.
Many times, organizations are not successful when they try to implement change. Employee involvement is one of the key components of organizational change. Watch this video about why organizational change is important.
1.2: Why Is Leadership Important?
It is important to have good leadership through the change process so that employees can process the change and accept why it is necessary. Organizational change is necessary so businesses can move forward and keep up with the change occurring around us daily. We have seen from the closures of Sears and Blockbuster Video that when change does not occur, then the business may close. All companies must assess where they are, where they want to be, and how they will get there. As businesses are analyzed from this perspective, plans for change are made. But that is just the first step. Good leaders are needed to successfully implement that change.
Managing your employees through change can be a difficult process. Change is, for the most part, difficult for employees because they have experienced it before and perhaps did not go well. Employees may resist change because they like the familiar. Read the fundamentals and types of organizational change. After you read, answer the three concept check questions at the end to check your understanding.
Good leadership is important when it involves the change management process. Developing good leadership skills can take time, and getting people to follow leadership takes time and trust. The leadership process involves the leader, the follower, the context and process in which this situation occurs, and the outcome. For your understanding, feel free to read about the leadership process and answer the two questions in the case study box at the end and the one concept check question.
Now that you have read about why employees might resist change and what a good leader can do to help implement change, let's see how much you understand about the process. Read the critical thinking case study and answer the three questions at the end.
1.3: Leadership Styles
We've all heard quite a bit about good and bad leaders. When you have a good leader, you know it. Your relationship with that person makes you want to perform better in your job. But a bad leader makes you want to quit. These types of leaders may make you resist any attempt to change. A good leader may make you want to stay at a company for a long time. The differences between a good and a bad leader will be covered in this section.
Before we get into the best leadership styles for change management, let's review some bad leadership qualities. Watch this video about nine bad leadership skills, how they affect others, and how to avoid making these same mistakes.
This video covers the three classic leadership styles and includes the autocratic, democratic, and laissez-faire styles. Consider which leadership style might work best with organizational change as you watch. Would you want to work for this type of leader as your organization underwent a large change?
Two more leadership styles are transactional and transformative. These two styles have great success in leading change in an organization. Transformational leaders can successfully lead during massive change, and employees easily follow these types of leaders. Watch this video that represents both of these leadership styles.
Now that you have reviewed some of the leadership styles, and understand how they might be useful in change management, let's review some information that might help you to assess your leadership style. You may strongly lean toward one leadership style, or you may be a blend of a few different leadership styles. This video will help you assess your leadership style and understand the type of leader you want to be. Watch this video and review the extra materials as you assess your leadership skills.
This video explains how great leaders are different from average leaders. Great leaders inspire people and are easily followed; they make people feel the leader's mission is their own. They lead by their actions and inspire an open-minded management style that allows for opinions from all employees. These are the type of leaders who encourage conflict and know that it will only help to make their team stronger.
1.4: Why Is Change Needed?
For businesses to succeed today, change must occur. Constant change is occurring, and for businesses to compete, they must be able to adapt and remain flexible. This means they need to be able to change quickly, and getting employees on board with those changes is paramount. This section will discuss these issues in depth.
With technology frequently changing how we do business, constant change seems to be the new normal. Some organizations must be able to keep up with their competition, so constant change occurs.
Now it is time to show what you have learned in this unit. Read these managerial decision exercise questions. How would you respond?
There are many reasons that organizations find it difficult to make effective changes when they need to and why so many fail when trying to implement change. Building employee trust is vital during change management, and good leaders can easily get employees to follow their lead when trying to implement change. After you read this section, answer each practice problem. If you are not currently working, choose a company you know about for your responses. What are your thoughts about the practice? What might you do in that situation? How would you want to respond?
As this chapter has covered, organizations need to get employees on board with the changes the organization needs. There are numerous examples in business today of failed change management programs and employees who refuse to cooperate with the change. Good leaders can make effective changes and get people to follow their example, while bad leaders may fail. Answer these review questions to help your understanding.
Unit 1 Study Resources
This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.
Watch this as you work through the unit and prepare to take the final exam.
- Unit 1 Review Slides File PDF document
You can also download the presentation slides so you can make notes.
We also recommend that you review this Study Guide before taking the Unit 1 Assessment.
Unit 1 Assessment
- Receive a grade
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.