Abstract
The current literature-based review paper demonstrates the hypothesis that transformational leadership has a positive impact on change management in organizations. The paper has been developed following the next order: Firstly, it is exposed the importance of adapting to change via the application of change management by considering three change management models (Prosci ADKAR Model, The Kurt Lewin Change Management Model, and Kotter’s 8-Step Process); secondly, after comparing transformational and transactional leadership styles, it remarks the relevance of a transformational leader to help manage the change; thirdly, literature review of several studies, conducted in different countries and industrial sectors, is used to prove the hypothesis; some criticisms to the theory have been considered, regarding the theoretical weaknesses observed by researchers. Finally, previous literature review of several studies showed how transformational leadership has effectively contributed to change management, together with the adaptation of organizations to the change.
Keywords: Transformational leadership, change, change management.
1. INTRODUCTION
The world is in constant change, markets move towards new trends to meet the latest demands, so do the companies. It is a job of the leaders to manage the change, understanding that change management is “the process, tools and techniques to manage the people side of change to achieve the required business results” (Prosci, 2017).
Important organizations understand the relevance of finding inspiring leaders to manage their changes and keep up with the new demanding market scenario. As an example, these issues are clearly identified in the National Geographic Society case (Garvin & Knoop, 2015). NGS is one of the world’s largest scientific and educational nonprofit organizations, set up in 1888, which made the decision to adapt to the new global state by moving from the print to the digital area, integrating all the editorial groups of the magazine, TV production, channel, books, and other units across multiple media platforms, and improving staff motivation, based on an e-commerce strategy. What makes this event remarkable is that in addition to requesting demanding requirements of experience, knowledge and responsibilities in the charge, the job description for the position of senior vice president, e-commerce, highlighted the importance of being a good leader with a strong character and great communication skills, capable of working effectively at a large organization (p.13).
2. PURPOSE
The purpose of the paper is to do a literature review exercise to show how researchers have demonstrated that transformational leaders have helped organizations to manage change.
3. HYPOTHESIS
Transformational leadership positively impacts change management in organizations.
4. LITERATURE REVIEW
In this section, as an attempt to obtain a close and reliable approach to the models, the sources selected are taken from journals, books, and the model’s original websites as the Prosci ADKAR Model for Change Management and Kotter’s 8-Step Process which are broadly explained by their developers on the official websites.
4.1. Change and change management connection
Change, at its most basic level, is defined as a movement outside an existing phase (how things are nowadays), through a phase of transition, and then, a future phase (how things will be done). Changes, which can be motivated exogenously or endogenously, happen in all environments of human beings, work, social or family. In the same way, these can be planned or happen suddenly. In conclusion, the changes have a starting point, a transition to reach a future phase. In the same way, change management consists of managing an individual support for each employee that has been affected, along the three phases, by the change during the projects or the institutional initiatives, in order to increase the adoption and the use of the solutions introduced during the projects and initiatives (Prosci, 2014). It is important to highlight that change management is related to the human side of the process (Richards, 2013, p. 36).
Changes make the organization move to future states in which employees have to do their jobs differently to get their own future states and achievements; in other words: “the results and outcomes of a project or initiative are defined by and depend on employees adopting the change. So, in times of change, change management is an essential tool for delivering results and outcomes not an optional add-on” (Prosci, 2014).
4.2. Models of change management
Change can not be improvised, it is necessary to adopt models to plan and to supervise the process. Three models of change management will be considered: Adkar Model for Change Management, the Lewin’s Change Management Model and The Kurt Lewin Change Management Model.
4.2.1. The Prosci ADKAR Model for Change Management
ADKAR stands for awareness, desire, knowledge, ability, and reinforcement, which symbolize the five results that must be achieved to achieve a successful change. For the ADKAR model, initially developed by Jeff Hiatt, a successful change is the consequence of the a simultaneously maturing of the business or project side of change and the people side of change dimensions (Prosci, 2017, p. 4).
Table 1: Standard steps
Source: own construction based on (Prosci, 2017, p. 7)
4.2.2. The Kurt Lewin Change Management Model (Lewin, 1947a), (Lewin, 1947b).
The model was first presented in 1947, and basically, his scope of research is aimed to describe the factors that encourage people to change, which are related to three stages: Unfreezing, Change, Freezing.
- Stage 1: Unfreezing
This stage opens the door to the understanding of a compulsory need of a change, strong enough to push the individual to leave the comfort zone. Unfreezing is a stage to prepare for the change, and it is a time to balance the Pro’s and Con’s before any action is taken. This is called the Force Field Analysis which refers to all those factors surrounding the change making decision. These factors consist of for and against forces that must be analyzed. It is necessary to measure these forces, if forces against the change are higher than the forces for the change, then, a demotivation will make the individual to feel uncomfortable for changing. On the contrary, when the against change forces are lower, then the change must be made. This first stage is a movement to motivation for change.
Stage 2: Change - or Transition
Understanding that change is a transition, it is first movement to be done, and consequently, it is the impulse to go to the second stage. This stage occurs together with all the necessary decisions taken to get a complete and successful change.
It is a very hard stage, so a correct communication and leading must be applied to motivate people to find new ways, to adopt new values and competences to identify problems, and find ways to solve them; thus, that a correct accompaniment and support in form of training and coaching will be very helpful.
Stage 3: Freezing (or Refreezing)
The last stage takes part in the last part of the process, and it is change of providing stability once the changes have occurred. This stable period considers change as a new rule, and new routines and relationships, now, embrace the individual.
4.2.3. Kotter’s 8-Step Process (Kotter International, 2015)
It was first presented in 1994, later, enhance in 2014 to adapt to the quick changing environment. It consists of 8 steps, as follows:
- Step 1: Create a Sense of Urgency. In this step, leaders must think of an opportunity, attractive enough, to touch the hearts of the followers, and use it to attract a group of urgent volunteers.
- Step 2: Build a Guiding Coalition. The second step is creating a coalition of effective individuals to accompany the group of volunteers. The task of the coalition will be to explain, manage communicate the actions to pursue.
- Step 3: Form a Strategic Vision and Initiatives. The fast achievement of the vision is related to the success of the formulation of the actions to follow, which demands a superior design and a correct execution of the tasks.
- Step 4: Enlist a Volunteer Army. It states that a huge change will be just possible when a large group of volunteers pursue a common objective and, push all to the same direction.
- Step 5: Enable Action by Removing Barriers. In this step, it is suggested that creating a real impact requires the employees to feel free and act beyond the barriers; that is, leaders must eliminate unnecessary obstacles that may limit employees’ capacities.
- Step 6: Generate Short-Term Wins. For Dr. Kotter, wins are “wins are the molecules of results. They must be collected, categorized, and communicated - early and often - to track progress and energize your volunteers to drive change.”
- Step 7: Sustain Acceleration. It means that acceleration needs to keep going at the same fast speed, then it is a leader’s job, to get the adequate human talent and provide them with fluent processes and give daily directions to keep the group aligned with the aims.
- Step 8: Institute Change. This last step aims at keeping the good practices updated, so that they can be retaken and repeated to ensure a longer success in the long run. Hence, it is a need to register, and find relations between the good practices and the organization’s success.
Table 2: Change management models
Source: (Varkey & Antonio, 2010, p. 269)