BUS643 Study Guide

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Study Guide Structure

In this study guide, the sections in each unit (1a., 1b., etc.) are the learning outcomes of that unit. 

Beneath each learning outcome are:

• questions for you to answer independently;
• a brief summary of the learning outcome topic; and
• and resources related to the learning outcome. 

At the end of each unit, there is also a list of suggested vocabulary words.

How to Use this Study Guide

1. Review the entire course by reading the learning outcome summaries and suggested resources.
2. Test your understanding of the course information by answering questions related to each unit learning outcome and defining and memorizing the vocabulary words at the end of each unit.

By clicking on the gear button on the top right of the screen, you can print the study guide. Then you can make notes, highlight, and underline as you work.

Through reviewing and completing the study guide, you should gain a deeper understanding of each learning outcome in the course and be better prepared for the final exam!

Unit 1: Introduction to Leadership and Organizational Change

1a. Compare various leadership styles

• Why is it important to understand leadership styles?
• What is an example of how a leadership style might be applied to an individual?
• What are two leadership styles that are similar for management leaders?
• How can understanding the various leadership styles help you to lead?

As a manager, understanding leadership styles will help you to be a better manager and leader. It can also help you connect with other leaders as you manage your teams. The three classic leadership styles include autocratic, democratic, and laissez-faire styles, and each style is good for a specific type of work or assignment. For example, an autocratic leader can be very stern, and this type of leader may not be open to listening to employee ideas, but they can be great in a crisis when decisions need to be made quickly.

The laissez-faire leader allows their direct reports a great deal of freedom to do their job, and in return, most employees thrive under this type of leadership because they can create their own jobs. One of the downsides to this leadership style is that if the employee does not take this responsibility seriously, the workplace could be chaotic.

A democratic leader will ask for input from employees before making a decision that might affect all employees. This type of leader wants to understand how their team thinks about an issue. There are numerous types of leadership styles, and each one will lead differently. Understanding the leadership styles and your own style will help you to be a better leader.

To review, see Three Classic Leadership Styles.

1b. Compare how different leaders may affect change

• How might a leader create change in an organization?
• Can a new leader affect change in an organization?
• What are the best leadership styles to lead in times of change?

In today's business world, change must occur for businesses to move forward and be successful. Good leaders are needed to facilitate this change and help the employees adjust to the change in the business world. Many employees will resist change and should be convinced of the reason and need for the change.

A good leader will recognize this and assist employees with the change process. Transformational leaders are exceptionally good at this, perhaps because they are comfortable with the change process, and their positive attitude may be transmitted to all employees. They work to ensure employees are comfortable with the change process, and they seem to see the good in all employees, which creates a better working relationship.

As mentioned in the last section, another good leader during the change process is the laissez-faire leader. This leader will rely on employees to help create the change and make employees feel comfortable during the process.

To review, see Why Implementing Change Can be Difficult.

1c. Describe organizational change in the business setting

• What is organizational change as it relates to business?
• Why is it important to create change in business?
• How can change be created and enforced in a business?
• Who drives change in an organization?

Organizational change is important in business today so that businesses can not only survive but thrive. If a business does not change, then it may not survive. Technology has quickly changed how we do business, but it has also created an environment in which we need to keep up or close. This creates quite a bit of change in business as owners try to keep up with the changing world around them.

Employees drive change when an organization needs to change. If employees are not behind the change, it won't occur. It is important to have leaders show support to employees and show them how they can change or what the company needs. Change can be very scary for employees as they may not completely understand why the company needs to change and how that might affect them. A good leader can recognize this issue and ensure employees understand why change is needed and how to get them through the change process.

To review, see Why Is Organizational Change Necessary?.

1d. Analyze why organizational change in a given organization needs to occur for business purposes

• Why is organizational change needed?
• How can an organization create change?
• What can an organization do to ensure change is successful?

As mentioned previously, change is necessary for a business to successfully thrive today. If a business does not change with the world around it, it will not survive or thrive. Change has become a frequent and necessary need in all businesses today. Technology allows us to move quickly, but businesses must respond quickly and move efficiently to remain competitive.

Organizational change is understanding the marketplace. If a business can understand why it needs to change, it can create its own change. This is important to understand and be able to manage. Once the change is understood, it can be easily explained to employees and implemented. Employees are the key to making changes occur in business today. By ensuring they understand why the change is important, the change will be more easily implemented.

To review, see Why Is Organizational Change Necessary?.

Unit 1 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• autocratic leader
• democratic leader
• laissez-faire leader
• organizational change
• transformational leader

Unit 2: Change Management Models and Methods

2a. Compare the various change models, theories and methods used in a given situation

• What are change models, and how can they be used in business today?
• Why is it important to understand change management theories and methods?
• How can change be used to move a business forward?

Change models, theories, and methods are important to understand in business today so that the business can utilize these to grow the business and thrive. Change models can help effect change so a business can move through the change and grow into the future. With a change model, a business may be able to effectively move through change and may struggle to make required updates.

There are numerous types of change models, theories, and methods. A few of the most popular include Kotter's 8-Step Change Model, Lewin's Change Model, Lean Six Sigma, and Kaizen. These models assist organizations in making change and show a clear path to engaging employees to help with the change. The most popular change model is Kotter's 8-Step Change Model, which provides clear direction about change and how to keep it in effect longer after it is set in motion.

Kaizen is another popular change model that ensures progress by making small, manageable changes that lead to great change. Lean Six Sigma works well with companies with production lines, or that need better flow to help manage productivity. Each change model may be matched with the company and their individual needs.

To review, see Why Is It Important to Study Change Models?.

2b. Determine which change model might work best in a given organization

• How do you know which change model might work best for a business?
• What are the variables to consider when choosing a change model?
• Who might be able to assist with determining which change model to use?

Depending on the change needed and where the company is at the time, the change model required might change based on those needs. For example, as mentioned in the last section, a production line business might work best with Lean Six Sigma because the focus is on reviewing the flow of the business and eliminating waste.

Lewin's Change Model utilizes a three-step model that includes unfreezing the current state, moving towards that change, and then refreezing into the new state. This model helps to understand why change must occur and how to move through that process. This model might work best in a business that is good at adjusting or has a history of creating positive change.

By analyzing the needs of the business and then reviewing all the change model options, you can easily match the correct model with the type of business. Another option is to hire a change management expert who can assist with choosing the correct change model, managing the change needed, and ensuring employee buy-in.

To review, see Kotter's 8-Step Change Model.

2c. Analyze the change management framework in a given organization

• What is a change management framework?
• How can a change management framework be used in business?
• Why is it important to understand a change management framework?

Creating a framework to understand and effect change is important before choosing a change model. Change management framework is another term for change model but will also allow you to understand why and what change is needed. A plan for change can be developed with a change management framework.

Understanding company culture, people, important processes, and wanted outcomes will be important to determine if a change management framework is needed to implement a solid change plan. Any new processes that need to be created or potential company structure changes should be considered when choosing a change management framework.

To review, see Change Management Frameworks.

2d. Outline the change management model in a given organization

• Why is it important to review or outline a change management model?
• What can you do to better understand which change management model to choose?
• How can you determine which change management model might work best for a business?

Once you have researched the best change management model for your organization, it will be important to outline what changes are necessary and how they will be implemented. Each change management model includes steps for analyzing and creating change. Planning this change will require attention to detail and an outline of how the organization will implement the change.

For example, Kotter's 8-Step Change Model includes eight steps that include creating a sense of urgency, removing obstacles, and fostering the change that has been made. It is important to understand and apply each of these steps and adjust them for business needs. Understanding the business culture, management styles, and employee needs must be considered when creating an outline for how the change will be implemented.

To review, see Why Is It Important to Study Change Models?.

Unit 2 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• change management framework
• kaizen
• Kotter's 8-Step Change Model
• Lean Six Sigma
• Lewin's Change Model

Unit 3: Organizational Failures in Change Management

3a. Interpret failures of change management to better understand change in the organization

• Why is it important to study change management failures?
• How can understanding failures in change management help an organization?
• How can you determine what failures have occurred in change management implementation?

Researching and studying business failures of the change management process is needed so that they will not be repeated. There are numerous examples of big stores that failed to change, and then their business failed. As a manager, you must understand why failing to change has affected the business overall.

Some examples of famous business failures include Blockbuster Video, Hummer, Sears, and Kodak. But there are thousands of examples of small local stores that have failed as well. Refusing to change will affect the business in some way, and as a result, the business most likely will not survive. Change is inevitable in business today. Understanding the failures will help you better understand why change is so important to your business.

To review, see Why do Organizations Fail to Change?.

3b. Examine the reasons organizations fail to change

• How might an organization fail to implement change?
• Why is it important to understand an organization's failure to change?
• How can you use change failure information to help your company now?

Being uncomfortable with change is personal and appears in business today. Some leaders are comfortable with the status quo, so when change is required, they may need to be dragged through it. If a leader is incapable of change and making progress, they may be responsible for the business failure. As a manager, it will be important to be open to change and seek it out when you see that the business may become stagnant.

Great leaders constantly look for ways to improve business or make processes faster. Employees will follow the lead of their leaders. If a leader resists change, the employees will as well. A leader can keep the business running smoothly by remaining open to change and seeking out new, more efficient ways of conducting business. By resisting change, a business will eventually fail.

To review, see Why Do Organizations Fail to Change?.

3c. Compare ways to motivate employees through the change process

• Why is it important to motivate employees to want to change?
• How can employees be motivated to change?
• What will occur if employees are not motivated to change?

Employees are the main reason change is either effective or ineffective. If employees do not understand the change or why it is needed, they will resist it, and the intended change process will fail. It is important to motivate employees throughout the entire change process. Checking in with employees throughout the various stages of change is important.

Each change management model has a stage in which the employees are informed of the changes and why they are needed. Once employees understand why the change is needed, they will be more likely to help initiate the change and continue the process until it has been implemented. Motivating employees might include implementing small steps to ensure everyone hears about the success stories, encouraging innovative thinking, and demonstrating visible company growth.

To review, see Lack of Teamwork, Buy-In, and Engagement.

3d. Analyze how to avoid change process failures in a given organization

• How can we analyze change process failures?
• Why is it important to analyze change process failures?
• How can leaders or employees make a difference in the change process?

Leaders can make effective changes and help to successfully lead employees through the change process. One of the key reasons the change process will fail is employee buy-in. As we have discussed previously, if employees do not want to make the changes, change will not occur. It will be important to monitor the various stages of change and ensure they are implemented properly.

Another reason change process failures occur is if the implementation is not well suited to the business. It is important to match the change management model with company culture so that the changes, once made, will be effective. But if the change process is improperly implemented, then change will fail. As a leader, it will be important to monitor the change process and employee responses and report any issues immediately to resolve them. If you delay, then the change process may fail.

To review, see How Leadership Can Avoid Change Failures.

3e. Differentiate the positive and negative effects leadership has on the change process

• What are some positive effects leadership has on the change process?
• What are some negative effects leadership has on the change process?
• Why is it important to understand the positive and negative effects leadership has on the change process?

Leaders can have both a positive and negative effect on the change process, and understanding and monitoring the differences can lead to success or failure. Positive leadership can help to develop teams, train people effectively, and ensure employee buy-in. These examples will lead the company to success and a positive change process. Negative leadership might create chaos and ineffective change, and this might lead to change process failure.

Having the right people in the right jobs is also important during times of company change. You may have some leaders that effortlessly get people excited about change possibilities in the future. These leaders should oversee much of the change process and how that unfolds. These types of leaders will be able to gain employee buy-in, monitor change, and follow through to ensure the process runs smoothly.

To review, see Obstacles to Organizational Change.

Unit 3 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• business failures
• change process failures
• positive leadership
• motivating employees
• negative leadership

Unit 4: Talent Management and Facilitating Change

4a. Analyze how employees in a given organization can effectively contribute to a change process

• How can employees create change during the change process?
• Why is it important to support employees during the change process?
• Can employees be responsible for an unsuccessful change process?

Once employees understand the need for change and actively participate, they need to be supported by management. In addition, employee contribution may include training other employees in the change process. Employees may feel more comfortable understanding the new change expectations if another employee shows them how and explains why it is needed.

Leaders can observe which employees have made the necessary changes and understand the process, and those are the employees the leader can focus on to train other employees. This may result in employees leading the change. By supporting employees during the change process, a leader can better enact necessary changes and gain the support of all employees in the process.

To review, see Why Are Employees Vital to the Change Process?.

4b. Determine what a leader can do to impact change in a given scenario

• How can a leader impact change?
• Why is it important for a leader to support employees during the change process?
• What can a leader do with employees who do not want to change?

Good leaders can facilitate change in a variety of ways. By understanding what changes are needed, ensuring that employees are being trained appropriately, and encouraging employees to help each other through the process, a leader has a better chance of experiencing effective change management.

Employees who fight the change or do not want to change should be handled immediately so that other employees do not follow their behavior. A leader can facilitate change by checking in with employees regularly and ensuring changes are being properly made. If an employee demonstrates behavior that is not conducive to change, the leader must meet with the employee to determine the problem and how it can be fixed. If the behavior continues after a few meetings, then it is time to use a performance improvement plan with said employee.

To review, see Steps Leaders Take to Facilitate Change.

4c. Analyze the change management process from the employee perspective in a given situation

• How can you understand change from an employee perspective?
• Why is it important to understand change from an employee’s perspective?
• How do employees affect change?

A leader needs to understand why some employees take to the change quickly while others do not. Understanding the change process from the employee perspective is important to create effective change. This is true not only for those employees who are helping to lead the change but, perhaps more importantly, for those who are resistant to change. You can gain their perspective on the change by speaking to the employees directly about the change process.

For example, you may ask them to clarify the need for the changes to ensure they understand why the change is necessary. Or you may ask an employee who is resistant to change how they view the change process and what they believe the result will be. By asking probing questions, you will better understand the employee's perspective. Depending on the response, you may need to conduct additional training or give all employees a better understanding of the process.

To review, see Employee Performance and Motivation.

4d. Analyze how to track follow-through with employees in a given situation for better management

• How can a leader track follow-through with employees?
• Why should a leader track follow-through with employees during the change process?
• What is an example of tracking change with employees?

Following through with your team and any employee involved in the change will be important during the entire process. This may be conducted in one-on-one or team meetings or casual meetings in the hallway. Asking follow-up questions will be important to ensure a general understanding of the change process. While it may be true that the employees will make the needed changes, leaders will supervise that change and ensure it is conducted correctly. Employee follow-through is important during this time.

Tracking change follow-through can be conducted in a variety of ways. You may keep an electronic spreadsheet of the changes and progress. This may also be conducted with written notes or an electronic file that everyone on the team adds to as they perform their individual parts of the change process. As a leader, you should review this process regularly and, if necessary, ask follow-up questions if something is unclear.

To review, see Follow-Through on the Change Process.

Unit 4 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• employee contribution
• employee follow-through
• employee perspective
• facilitating change
• tracking change follow-through

Unit 5: Recognizing What Changes Need to be Made

5a. Analyze the steps of planning change management in a given organization

• What are the steps of planning change management?
• Why is it important to plan change management during the change process?
• How can leaders assist with planning change management?

Depending on the change management model chosen to implement your change, the steps to planning change management may be a little different. A few basic steps may include determining why change is needed, how the change will be implemented, who the change will be implemented by, supporting the team and employees, following through, measuring progress, and then knowing when the change has been implemented, and the team has moved into maintenance.

Depending on the company, leadership may enact the planning stages of your change process, or you may hire an outside consultant or company to help lead the change. It is important to understand that the more steps or people there are between who makes the change process decisions and who implements those changes, the more complicated it is. By regularly keeping an eye on the change process, you can be better connected to the issues that need to be dealt with daily.

To review, see Planning Change Management.

5b. Select performance improvements for change

• What can you do if an employee refuses to make the necessary changes?
• What is a performance improvement plan?
• How can you help an employee to understand needed change?

If an employee refuses to make changes, it is important to deal with that behavior quickly. It may only take a short conversation to ask a few questions about why the change is not occurring, or it may be a more in-depth meeting that requires a performance improvement plan. Sometimes, employees may refuse to make changes because they are simply unaware of what they should be doing, and this should be a quick issue to resolve. Sometimes, that resistance may be deeply rooted and require additional time or training with the individual.

A performance improvement plan is developed by a supervisor and employee and is focused on correcting employee behavior. It typically is developed after a few conversations that have not resolved the issue. It is a written record that will usually go into the employee file. With follow-up, it may be resolved in a week or take several months, depending on the depth of the behavior. It is an attempt to resolve an issue and improve employee productivity.

By meeting with an employee and explaining the necessary changes, you may gain a better understanding of the issue and get it resolved. There may be times when the employee refuses to make the changes even after several follow-up meetings with the performance improvement plan. This may eventually end in the termination of the employee. If this is something that can be avoided, it should. However, the documentation will show the efforts made by the leader and their team.

To review, see Performance Improvements.

5c. Describe performance measurements for change management

• How can you measure if a change is effective?
• What is an example of a performance measurement related to change management?
• Should you measure employee performance during the change process? If so, how?

When you have completed the necessary changes, you may go into a maintenance phase and just try to maintain those changes. Measuring that change will be important. The result may be additional business or clients, happier clients, or happier employees. The measurement will depend on the change itself. For example, if you have recently updated the website to make it more customer-friendly, then a survey for customers to complete may measure if that change was effective. Or if you recently implemented changes to the production line, you may be able to review piecework records to determine if the process is easier, faster, or more efficient.

You can also measure employee performance during the change process. You may have a few star employees who completed most of the changes or helped persuade other employees to engage with the changes. Or you may have had a few employees who were not particularly helpful during the change process. Either way, it may be important to recognize these key employees. Checking the official tracked records and speaking to the team and employees may help you to measure and determine who actively participated and who did not.

To review, see Measuring Performance.

5d. Analyze the communication skills talent needs to affect change in a given situation

• What communication skills are important for employees to have during the change process?
• What is emotional intelligence, and how can leaders use it during the change process?
• How can you help employees to develop communication skills?

Communication skills are necessary during the change process, and employees with these skills may thrive during the change process. These employees can explain the exact issue, what change needs to be made, or a more efficient way to make those changes. These skills might be written or oral or include the ability to easily explain complicated information. Individuals with great communication skills may also be natural-born leaders.

Employees and leaders can be trained to improve their communication skills, and most employers offer this type of training regularly. By having the ability to better explain what is necessary, employees can develop relationships faster and complete their work.

Emotional intelligence is another skill that can be developed and helps leaders to better connect with their employees and lead people. Emotional intelligence is the ability to understand your own emotions and others. It is a way to better connect with employees, management, clients, or vendors. You may be more sympathetic, understanding, or effectively see the other person's point of view.

To review, see Communicating with Talent.

5e. Analyze change management practices in a given situation within a global context

• What needs to be considered during a global change management project?
• How does culture play into the change process during a global expansion?
• What is an example of how culture affects the change process?

When conducting business globally, everything you already do as a leader is needed, as well as a general understanding of another culture and their norms. Conducting a global change process can be complicated and requires the feedback of people who work at that location and understand the local culture. Culture may include habits, attitudes, or values of the people in that area. It is also important to understand that one country can have numerous cultures, and they cannot all be considered the same.

Managing an international team can also be complicated, but it will be a team rich in differences and thought processes. Understanding the culture of the country you are in is important when attempting to implement changes. Understanding where a person's attitude is coming from, or the values of the people can be detrimental to the change process. Culture might affect the change process when it conflicts with company values, and it will be important to understand how these differences might affect the process and how they can be incorporated.

To review, see Global Considerations.

Unit 5 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• communication skills
• emotional intelligence
• global change process
• performance improvement plan
• planning change management
• measuring employee performance
• maintenance phase