Running Head: Draft Literature Review on Communicating Change 1

Communicating Change Effectively in Organizations: A Leaders Role

By

Curtis Cookston

Brandman University

October 14, 2014

Draft Literature Review on Communicating Change 2

Abstract

This literature review examines the importance of active listening by leaders in organizations to

effectively communicate change with lasting effects. Several studies suggest the importance of

overcoming barriers to communication, establishing a culture of change through vision and goal-

setting, and participative management. To do this, leaders act as facilitators, coaches, and team

members. Leaders must be able to solicit and be open to feedback from all levels including

stakeholders. They allow groups and individuals to play a major role in the decision-making

process as it relates to change within the organization, yet evidence suggests this to be limited to

lower level decisions only. Employees must be able to embrace change to be effective which

requires buy-in, participation, empowerment and commitment.

Keywords: communicating change, employee empowerment, participative management,

employee involvement and decision-making, effectiveness, feedback.

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Research Purpose

The purpose of this literature review is to examine the possibility of leaders implementing

lasting change in organizations through use of an effective communication plan. Change is

inherent in the world and the only thing permanent (Vyas, 2013, p. 9). By effective

communication, I am referring to positive two-way communication where leaders engage

employees and value their inputs. Participants in this review are organizations leaders in at least

a supervisory position and front line workers where the common tasks are actually performed.

This study will examine traditional and non-traditional organizations communication within their

work environment, and how a leaders communication interaction with employees can improve or

hinder effectiveness. Effectiveness means being able to accomplish a change or set of changes

with desired results based on company vision and culture.

The Nature of the Problem

Where change is evident in organizations throughout history, communicating change

effectively with positive lasting results can be a difficult one for leaders. Traditionally, change

has been a top down approach forcing employees to accept it with open arms. Leaders may use

more traditional approaches offering rewards, and act as a role model leading by example

through the change process, but building trust and empowering individuals helps earn loyalty

(Vyas, 2013, p. 12). Evidence suggests that transformational leadership does not always

motivate higher performance in followers and effects are inconsistent at best (Grant, 2012, p.

458). Today with the emergence of more participative organizations, coupled with the challenge

of tighter budgets, more competition, and lack of resources, a need for employee engagement is

greater than ever. Unfortunately, not every leader values or welcomes input from employees.

Importance
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How can leaders better facilitate, not initiate, successful change in their organizations? The

answer could be through use of its employees. Could this result in a more lasting change garner

lasting buy-in through participation? Research has found that leaders allowing employees at

various levels to participate in the decision-making process can improve the lasting effectiveness

of change and sustain morale (Nykodym, Simonetti, Nielsen & Welling, 1994, p. 48).

It is my belief that active listening will improve employee receptiveness to change because

employees feel they are a key part of the change process. A leader does not want to see a

processes revert back to original form. Creating a culture of change where each member feels

valued in the organization should be a top priority for leaders today. Employees at the lowest

levels are in the best position to not only recommend but design and implement processes

necessary to ensure quality change. Managers can utilize quality programs to implement an idea

by creating a task force of employees at various levels within an organization who then

implement change (Lewis, 2000, p. 134). A leader can then monitor and be amazed by the

results.

What listening supported actions should a leader use to implement effective change?

Leaders should study and recognize basic communication and change concepts and the role

leaders play. In the corporate diamond, communicating change involves four steps: Listening,

Evaluating, Changing and Re-evaluating. (Houston & Clifton, 2000, p. 8). For the purposes of

this paper, we’ll focus on the first step, listening. According to Houston & Clifton (2000),

“Listening to each others’ ideas and also the consumer feedback ensured a constant re-evaluation

of practice” (p. 9). Another words, one cannot get to the next step without listening first.

Additionally, Houston & Clifton (2000) says; “the professional process of talking, listening, and

challenging each other within the corporate team created educational and professional
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supervision” (p. 9). A leader should realize that changes couldn’t be made without consensual

active listening to each other and building on the reflective process (Houston & Clifton, 2000, p.

9). Effective communication within and outside a company plays an essential role in shifting the

view of how an organization is portrayed (Reilly, 2009, p. 34).

According to Lockett, Currie, Finn, Martin, & Waring (2014); “Senior management and

policy makers need to pay close attention to social positions of actors whom they engage as

change agents” (p. 1125). My interpretation of this statement is that it will impact how receptive

employees are to change, and the level of importance a leader must place on listening and

feedback. The higher the status, the easier it is to get buy-in with smaller amounts of effort.

Regardless of the leadership style, leaders can mitigate these variations by establishing a clear

vision and goal for the organization (Gabel, 2013, p. 351). Leaders should promote

communication and participation, facilitate change process, and create a vision (Lewis,

Schmisseur, Stephens & Weir, 2006, pp. 118-119). Leaders then seek ways of influencing its

members toward fulfillment of those goals. It is in this process, that active listening impacts the

success or failure of an organization (Gabel, 2013, p. 355). By success or failure, I am referring

to profits, stock increases, customer and company growth, and employee retention and health.

Leaders must be able to establish a culture of resiliency in responding positively to changing

negative situations. This will allow employees to rebound more quickly with less negative

impact and stress (French & Holdin, 2012, p. 214). French & Holdin (2012) said: “executives

who are will to engage in reflection and learning are more inclined to view organizational crises

as opportunities to enact positive change” (p. 213). To engage in active listening, leaders must

exhibit hope and optimism (French & Holdin, 2012, p. 213), and create a positive work

environment setting the stage for employee feedback and openness to lead in the change efforts.
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According to Dutton and Jackson (1987), “the ability of decision makers to cognitively

process complex organizational issues such as crises is directly affected by whether

they frame the crisis as a threat or opportunity” (p. 216). Davis (2010) writes, “What’s needed

now is a much higher level of leader presence: more intense, more transparent and more

authentic than ever before” (p. 24). Appropriate communication has been identified as a

significant factor in helping employees understand both the need for change, and the personal

effects of the proposed change, which may help induce readiness for change at a personal level

(Goodman & Truss, 2004, p. 217).

Communicating effectively requires timing and media which include: face-to-face,

interactive, memos and bulletins, and include employee input (Goodman & Truss, 2004, pp. 218-

219). Leaders should establish clear lines of communication before, during, and after a change

occurs, soliciting inputs from those involved or effected by the change. According to Goodman

& Truss (2004), employees will want to know as much information as possible in order to

minimize uncertainty (p. 219). This is a time where leaders will want to solicit feedback or

absorb information received during the communication exchange process. It is also important to

note that all third party responses will warrant further investigation from the source. Don’t

formulate a decision based on here say.

During a study of two companies PubCo and OilCo, one hierarchical and the other project

based, in both cases employees felt there was a lack of two-way communication, informed

information, and a strategy for communication (Goodman & Truss, 2004, pp. 221-222).

Interesting to note, that in both cases employees preferred face-to-face group communication to

other forms of media (Goodman & Truss, 2004, p. 223). In general, employees felt they had

been informed of changes after the fact, management was out of touch with employee concerns,
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and others were more aware of the changes (Goodman & Truss, 2004, pp. 224-225). In order to

overcome these challenges, leaders should make themselves available and engage their people

while listening to obtain personal buy-in, commitment, reduce anxiety, clarify objectives, share

information freely, and minimize resistance (Goodman & Truss, 2004, p. 226). Encourage

employees to participate in organizational changes, formulating policies and profit sharing as an

individual or as a group (Nykodym, Simonetti, Nielsen & Welling, 1994, p. 47).

There is a consensus that a key factor in success of organizational change lies with the

employee, yet very few studies have placed emphasis on the leaders role at the micro level (Oreg

& Berson, 2011, p. 628). Only a small number of studies examine leaders personal attributes and

behaviors, however leaders play a key role in an organizations success (Oreg & Berson, 2011, p.

629). Studies have suggested there is a direct correlation between a leaders attributes and

employee attitudes (Oreg & Berson, 2011, p. 630). A leader that establishes a culture of open

communication and practice active listening with their people can have a positive effect on

employee receptiveness to change. Oreg & Berson (2011) list “openness” as a leader value that

helps to overcome employee resistance to change (p. 637).

Establishing a culture of openness as a leader, displays a willingness to listen to concerns as

well as ideas to help facilitate change while mitigating the stressors employee’s experience.

Leaders should use values, passions and thoughtful words to communicate change (Vyas, 2013,

p. 13). However, negative implications a leader can experience are failing to recognize

individual differences and personality while focusing on the end result (Oreg & Berson, 2011, p.

649). A leader’s personal characteristics and behavior will have an impact on follower’s

reactions to change. To overcome this, leaders can seek out follower’s that readily accept

change and encourage them to support their peers (Oreg & Berson, 2011, p. 654).
Draft Literature Review on Communicating Change 8

According to Grant (2012), “leadership is most effective in motivating followers when they

interact with the beneficiaries of their work” (p. 458). But, evidence suggests transformational

leadership does not always lead to higher motivation (Grant, 2012, p. 458). Leaders should

provide inspirational visionary messages through their communication process and through an

effective job design, not traditional task management (Grant, 2012, p. 459). Leaders who engage

in listening to employees and establishing a connection between the customer and employees can

further enhance probability of a successful change within the organization (Grant, 2012, p. 459).

Cintas is a corporation that relies heavily on beneficiary contact to gage performance and

maximize profits. However, there is no evidence to suggest this works in all organizations.

There are both negative and positive trends with incremental value at best (Grant, 2012, p. 472).

Leadership is the most critical ingredient to a change effort (Vyas, 2013, p. 9). Change can be

internal or external, and as sited in Lewin (1947) requires unfreezing, moving and refreezing (p.

12). Leaders fail when they do not recognize their people that actually execute the change and

get buy in for the change (Vyas, 2012, p. 9). Additionally, Bass (1985) created four components

that can assist leaders in communicating change effectively. Individual consideration, which

involves listening to concerns and ideas, intellectual motivation allowing employees to think

through problems on their own, inspirational motivation to elevate followers to achieve more,

and lastly, idealized influence by setting the example (pp. 10–11).

Leaders should empower employees by giving purpose, choice, competence, and strategic

impact on the outcome of change (Grant, 2012, p. 459). Grant (2012) says: “employees will

perceive themselves as important, influential, effective and worthwhile in their organizational

units” (p. 462). It is important a leader listen to feedback and being willing to change him or
Draft Literature Review on Communicating Change 9

herself, and to accept vulnerabilities and limitations as this is a good way to earn credibility

within the organization (Vyas, 2013, p. 16).

Active listening by leaders is necessary to engage in participative leadership. Leaders allow

employees to set their own goals, make their own decisions, and join decision-making teams

(Nykodym, et. al., 1994, p. 47). This can be extremely helpful in transforming an organization

during a major change process, as decisions carry more influence with employees having the

final say (Nykodym, et. al., 1994, p. 47). Studies have found that employee involvement at this

level can have a positive effect on employee’s attitudes, and may have a positive effect on job

satisfaction (Nykodym, et. al., 1994, p. 47).

Additionally, employee ownership has a direct correlation on organizational performance and

ultimately higher profits, although more evidence is needed to substantiate this claim (Nykodym,

et. al., 1994, p. 48). From my perspective, employee ownership does not necessarily prevent

employee absences, resignations and commitment to hard work. Pay is still a motivating factor

in commitment.

The decision and level of which to involve employees in the decision-making process should

be weighed by each organization. Nykodym, et. al (1994) suggests leaders listen and make

decisions based on five options: make a decision using leaders own information, obtain

information from subordinates, get suggestions individually, make decisions in a group, and

share the decision with their group (p. 49). However, can cause potential problems including;

initiation, structure, and choice of issues and evaluation, making leader communication more

important today, than ever (Nykodym, et. al., 1994, p. 50).

Those of lower status in the organization may feel intimidated more than ever (Nykodym, et.

al., 1994, p. 50). To overcome this, leaders should listen to employees at all levels and praise
Draft Literature Review on Communicating Change 10

their inputs to the group. When employees feel appreciated they are more apt to overcome the

feeling of intimidation. It is important to realize participation only helps workers overcome

obstacles and is not a cure all. The more involved the worker to the receipt of change the more

likely they are to commit. For leaders today, the expectation is that new employees, more than

ever, want to be involved in the organization and it’s decisions (Nykodym, et. al., 1994, p. 54).

Oosthuizen and du Toit (1999) believe it is more important today than ever to incorporate

participative management into decision-making (p. 213). This requires an open mind and

commitment by leaders to listen actively on a routine basis. Individuals are more capable of

initiating their own actions, and leaders can merely facilitate, coach and negotiate through the

change (Oosthuizen & du Toit, 1999, p. 213). Leaders implement various degree of participation

based on the organizations needs. This ranges from minimal participation to engaging actions

such as, joint decision-making and employees having the final say on the direction an

organization will take (Oosthuizen & du Toit, 1999, p. 216).

Leaders should include employees through three levels: improve communication and

attitudes, involve employees, or make them partners, and can be direct, indirect or financial

(Oosthuizen and du Toit, 1999, p. 214). Leaders can involve employees through exchange of

ideas, problem solving, advising, establishing policy, and implementing policy (Oosthuizen & du

Toit, 1999, p. 217). To do this requires a great deal of commitment to listening then acting to

support employee’s inputs. Unfortunately, most leaders only allow lower level decisions to be

made by its employees. More work is needed to implement at a higher level.

One role of a leader enduring change is to promote communication, and to do that leader’s

must possess the ability to be listen-oriented. (Oakley & Krug, 1991, p. 223). Leaders should

establish ways for others to talk rather than talking too much (Kegan & Lahey, 2001, p. 118).
Draft Literature Review on Communicating Change 11

Being active in asking for input, helps solidify an increase in participation and the interaction of

stakeholders, which can be implemented in large groups or through individual exchange of

information (Lewis, Schmisseur, Stephens & Weir, 2006, p. 122).

Conclusion

Change within organizations is inevitable and constant. Leaders today more than ever must

be able to establish and sustain open lines of communication between various levels of the

organization. Lower level employees will be the most resistant and require buy-in to change as

well as play an active role in its organizations change efforts. Leaders must be able to establish a

vision and set clear goals for their members. Leaders then act as facilitators, coaches and

participants of change, and must constantly listen and act on employee concerns and feedback.

Leaders can earn credibility by empowering employees and engage in participative leadership

with requires good communication skills. Studies have suggested that leadership styles and

approaches will vary by organization. Leaders should use multiple communication mediums to

communicate change and varied levels of participation based on the situation. It is clear more

research is needed on leaders attributes and its effects on the success or failure of the change

process. Additionally, more research should be done examining the role active listening plays on

an organizations commitment to lasting change. It is clear, that employees want to be involved

in an organizations decision-making process. To be successful, leaders should be open to the

ideas and inputs of its organizations members.

Draft Literature Review on Communicating Change 12

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