Chapter 8 Leadership Mostly
Chapter Eight: Forging Significant Change
Chapter Objectives
Define the concept of organizational change.
Describe factors contributing to resistance and acceptance of organizational change.
Describe how organizational change is actualized at the individual, group, and organizational levels.
Differentiate leadership styles and their relationship with transformational change.
Identify steps in organizational change.
Case Study: Penn State University
In 2012, Penn State University faced a major scandal when Jerry Sandusky was convicted of molesting 10 boys.
Key events that followed included:
Firing of Joe Paterno (longtime head coach) and Tim Curley (athletic director).
Graham Spanier (university president) was forced to resign.
Public perception suggested that both the university and its football program would not recover from the sanctions and scandals.
Despite expectations, both the university and the football program began to recover and thrive.
By 2013, Penn State had its largest endowment ever at approximately $2 billion, and they set a record for freshman applicants in the 2013-2014 season.
Funding for research grants increased, and key donors remained loyal to the university during the aftermath.
In 2014, the university hired new leadership: Eric J. Barron (president), Sandy Barbour (athletic director), and James Franklin (head football coach) aimed at revitalizing the institution.
Notable achievements:
Franklin recruited high-caliber players nationally.
Team ranked number three nationally heading into 2017 season, won a Big Ten championship, and recorded its first 10-win season since 2009.
As of the time of writing, the 2017 football team was ranked number four nationally.
Factors Contributing to Transformational Change
At the institutional level:
Major leadership and governance policy changes were crucial post-scandal. Terry Hartle highlighted the need for new leadership to stabilize the institution and promote forward movement.
Governance, ethics, and compliance were prioritized following the recommendations from the Freeh Report.
Development of new initiatives:
Launched the Center for Child Protection in 2011 to study child abuse prevention and treatment, along with employee training on recognizing and reporting abuse.
Change in football culture:
Coach Franklin shifted the previous regimen from a business-oriented approach under Bill O’Brien to a family-oriented culture focused on player needs and relationships.
Franklin highlighted the importance of clear communication with stakeholders about the new vision and maintaining buy-in throughout the program.
Challenges in Leading Change
Resistance from stakeholders, due to strong traditions associated with Penn State football, created challenges for new leadership.
Balancing the deep-rooted history and traditions with the need for progressive changes was essential.
The university faced the task of conveying values that were not tied to the previous long-term coach, Paterno, and navigating the influence of distinguished alumni attempting to redeem him.
New leadership recognized that cultural change would take time and needed to accept a healing process, as noted by athletic director Sandy Barbour.
Importance of Organizational Change in the Sports Industry
Organizational changes are increasingly necessary in sports due to the dynamic 21st-century business landscape.
Organizations must adapt quickly to changes in strategy, technology, environment, and other external pressures to survive.
Large-scale transformational change is not only becoming commonplace but is often necessary for organizations to progress.
Barriers to Successful Organizational Change
Effectively implementing organizational change can be difficult due to stakeholder resistance.
Common barriers identified by research:
Lack of management visibility and support
Inadequate management skills
Employee resistance
Organizational capacity for change can hinder the implementation of initiatives.
Stakeholder resistance is often associated with perceived threats to control and stability.
Responses to Organizational Change
Organizations often exhibit a variety of responses, such as:
Dismissing (considering change as non-consequential)
Decoupling (symbolically adapting to pressures without substantial change)
Co
Chapter Objectives
- Define the concept of organizational change.
- Describe factors contributing to resistance and acceptance of organizational change.
- Describe how organizational change is actualized at the individual, group, and organizational levels.
- Differentiate leadership styles and their relationship with transformational change.
- Identify steps in organizational change.
Case Study: Penn State University
In 2012, Penn State University faced a major scandal when Jerry Sandusky was convicted of molesting 10 boys. Key events that followed included the firing of Joe Paterno and Tim Curley, and Graham Spanier's resignation. Despite public perception that both the university and its football program would not recover, they began to thrive. By 2013, Penn State had its largest endowment ever at approximately 2 \text{ billion}, and set a record for freshman applicants in the 2013-2014 season. Funding for research grants increased, and key donors remained loyal. In 2014, new leadership was hired, including Eric J. Barron (president), Sandy Barbour (athletic director), and James Franklin (head football coach), aiming to revitalize the institution. Franklin recruited high-caliber players, and the team ranked number three nationallyheading into the 2017 season, won a Big Ten championship, and recorded its first 10-win season since 2009. As of the time of writing, the 2017 football team was ranked number four nationally.
Factors Contributing to Transformational Change
- At the institutional level: Major leadership and governance policy changes were crucial post-scandal. Terry Hartle highlighted the need for new leadership to stabilize the institution and promote forward movement. Governance, ethics, and compliance were prioritized following the recommendations from the Freeh Report.
- Development of new initiatives: The university launched the Center for Child Protection in 2011 to study child abuse prevention and treatment, along with employee training on recognizing and reporting abuse.
- Change in football culture: Coach Franklin shifted the previous regimen from a business-oriented approach under Bill O’Brien to a family-oriented culture focused on player needs and relationships. Franklin highlighted the importance of clear communication with stakeholders about the new vision and maintaining buy-in throughout the program.
Challenges in Leading Change
- Resistance from stakeholders, due to strong traditions associated with Penn State football, created challenges for new leadership.
- Balancing the deep-rooted history and traditions with the need for progressive changes was essential.
- The university faced the task of conveying values that were not tied to the previous long-term coach, Paterno, and navigating the influence of distinguished alumni attempting to redeem him.
- New leadership recognized that cultural change would take time and needed to accept a healing process, as noted by athletic director Sandy Barbour.
Importance of Organizational Change in the Sports Industry
- Organizational changes are increasingly necessary in sports due to the dynamic 21st-century business landscape.
- Organizations must adapt quickly to changes in strategy, technology, environment, and other external pressures to survive.
- Large-scale transformational change is not only becoming commonplace but is often necessary for organizations to progress.
Barriers to Successful Organizational Change
- Effectively implementing organizational change can be difficult due to stakeholder resistance.
- Common barriers identified by research:
- Lack of management visibility and support
- Inadequate management skills
- Employee resistance
- Organizational capacity for change can hinder the implementation of initiatives.
- Stakeholder resistance is often associated with perceived threats to control and stability.
Responses to Organizational Change
- Organizations often exhibit a variety of responses, such as:
- Dismissing (considering change as non-consequential)
- Decoupling (symbolically adapting to pressures without substantial change)
- Co-optation (involving stakeholders in the change process to gain their buy-in and reduce resistance)