How Organizational Change Affects Employees

Organizations must change and adapt regularly to maintain pace with competitors in a quickly
changing business environment. Change can occur because of a variety of internal and
external factors, over which organizational leaders sometimes have very little or no control.
For example, a business might be forced to change its practices because of changing rules
and regulations or because of advancing technology. Fortunately, there are steps that
organizational leaders can take to lessen the impact of change on employees.
When people work together, it is natural that they become close and familiar with one another
and at least remain cordial. Over time, routine sets in and the employees start to feel
comfortable not only with their job security but also with each other. When a change is
introduced, employees often resist it and the status quo becomes disrupted.

Fear
There is comfort found in standing still. It is only natural that employees facing a
drastic organizational change wonder how that change will impact them on an
individual level. Improperly managed organizational change can create fear among the
ranks, which impacts job satisfaction, performance and productivity. Workers could
lose confidence, fearing a loss of job stability. They may also fear that changes will
increase their workload or that they will not be capable of learning how to use new
technology. Organizations must combat these fears and lessen the impact on
employees.

Culture
The term “organizational culture” commonly is used to refer to the nature or
personality of an organization. A company may have a positive organizational culture,
marked by open communication and trust in organizational leadership, or it may have
a negative culture in which workers have little trust in their leaders. The effect of
organizational change on employees often depends on the culture of the organization.
Additionally, a negative organizational culture has the capability of hindering change,
making necessary transitions more difficult for employees to bear

Change Management
Effective change management is essential to streamlining the change process and
reducing the negative impact on employees. When organizational changes are
properly managed, workers perceive the benefits of a proposed change and accept
the change. Workers benefit from properly managed change in a variety of ways. For
example, a technological update may offer employees the opportunity to learn new
skills. New technology can also increase job satisfaction by reducing the workload.

Communication
Effective communication is essential to obtaining buy-in and lessening the impact of
organizational change on employees. Leaders must communicate with employees to
ensure they understand why the change is taking place and are on board with the
implementation of a change. When workers are given the opportunity to voice their
concerns and provide feedback on changes, they are more likely to accept and
participate in the change management process, ensuring the change takes place in a
productive and successful manner.

Create Factions
According to a writer on Arizona State University's W. P. Carey School of Business
website, change in the workplace creates two factions: those who cope with the
change and deal with it head-on and those who shy away from it. The writer further
explains that the employees who cope with the change often try to get ahead with the
new management or otherwise treat the change as a form of challenge which they
strive to overcome. In contrast, those who shy away from the change may ultimately
end up quitting the job because of it.

Loss of Confidence in Management

Change may bring about a loss of confidence in the overall management of the
organization, according to Skip Reardon on the website Six Disciplines. Part of the
reason, Reardon suggests, is that many employees do not believe the management
handles change effectively. The lack of confidence could result from a failure on the
part of management to effectively communicate the effects of change, the reasons for
it and the ultimate goal in the organization with regard to the change

Fear of Loss of Job

Changes in an organization may cause employees to begin to feel less secure about
their jobs. Depending on the type of employee -- one who copes with the change or
one who shies away from it -- the effect of this fear may vary. Employees who cope
with change but fear the loss of their job may be inspired to work harder and prove
themselves. Those who struggle with change may become less productive and overly
cautious.

Resistance and Acceptance

According to Oliver Recklies, writing on the website Themanager.org, the ultimate
effect of change is acceptance of it. After some resistance, the status quo eventually
returns to some degree of normalcy. The end result depends on how the management
handles change with regard to the business’s employees. An organization that
handles change ineffectively may find that, once the resistance to change settles
down, key employees have left the company due to the change.