Organizational change occurs in every organization that deals with growth and transition. Organizational leaders develop a commitment to lifelong learning throughout their careers. As the organizational leader grows, the organization in which they lead grows as well. Organizational leaders are characterized by how they develop their strategic plan that will influence change. Discipline is essential to the development of a leader influencing organizational change. Organizational leaders create psychological contracts with employees to build trust, confidence, and business relationships. Psychological contracts motivate employees intrinsically, and in ways that go beyond the confines of the physical contract signed between employees and management. Organizational leaders honor psychological contracts to take advantage of the talented employees that can benefit the organization. Psychological contracts assist leaders guiding their organization through changes by creating intrinsic motivators to develop an understanding of expectations. Changes that need to occur should be well communicated and implemented at a time that offers the organization and advantage rather than a setback. Leadership differs from management by requiring an alternative approach when dealing with employees and how to direct change at the individual, group, or larger system level. Organizational leaders create an environment for change that must be nurtured for the employees to commit to following the leader. Organizational change develops throughout the life cycle of an organization and is dependent on the organizational leader’s willingness to continue to learn.
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