February 8, 2011





 Impact of resistance to change on organization and employees  How do companies manage the resistance to change among the employees? . people usually resist initially. Resistance has also been considered as a source of information. such as reorganization or adding a major new product or service. in some cases increases. until they are able to recognize the benefits of change and perceive the gains to be worth more than the risk or threats to their self-interests Changes that take place in an organization:  Organizational Change The organizational change is about a significant change in the organization. increase stress or involve risk. Resistance is a phenomenon that affects the change process. hindering its implementation. Resistance to change can generally be categorized as organizational or individual. People typically avoid situations that upset order. Organizational change can seem like such a vague phenomena that it is helpful for the organisation but employees resist to these change because due some reason it may not be effective for them. The resistance continues and. threaten their self-interests. When faced with changes to the status quo. This is in contrast to smaller changes. Objectives: To analyze the changes that take place in an organization and why people resist undertaking change most of the time. .Abstract: This paper will begin with a general discussion of resistance to change in organization. Introduction: Change is a way of life for those who responsible for managing organizations and with change comes the discussion of resistance to change. such as adopting a new computer procedure. It also include various factor why mostly people resistance to change . Most people prefer predictability and stability in both their personal and professional lives. Also various role performed by manger to overcome from this problem.Types of changes not deeply but short study on it and main how to manage the employees if they resist to change. being useful in learning how to develop a more successful change process. and increasing its costs. delaying or slowing down its beginning. Analyses of different change occur and what is there impact on organization and emp loyees.

In this organizations must undertake organization-wide change to evolve to a different level in their life cycle. Example might be Business Process Re-engineering. This may occur in production settings. cost change and process change is another example of organization-wide change. in a service organization. there may be changes to the procedures used to accomplish work. Primarily. y Cost changes are those that occur when an organization attempts to reduce costs in order to improve efficiency or performance. hierarchical structure to a large amount of self-directing teams. or implementation of a new process to deliver products or services. going from a highly reactive. and beliefs. or a new manager may modify the process used to handle customer complaints. Major adjustments may be made to departments to cut costs. which tries to take apart the major parts and processes of the . A prototypical culture is the very bureaucratic. laying off employees in redundant positions.  Transformational changes:-transformational change might be changing an Organization¶s structure and culture from the traditional top-down. y Cultural changes are the least tangible of all the types of change. this requires a shift in many organizational activities. new computer systems may create the need to change how paperwork is completed. manager-employee relations are altered with a change in culture. but they can be the most difficult. for example. assembled. values. An organization's culture is its shared set of assumptions. Experts assert that successful organizational change requires a change in culture ± cultural change. When such an organization tries to adopt a more participative. reorganization of a certain department. Or. or shipped. packaged. involved style. y Process changes are implemented to improve efficiency or effectiveness of organizational procedures. reducing budgets. Organization-wide Change The organization-wide change might be a major restructuring or collaboration. and eliminating nonessential activities may all be a result of cost change.  Subsystem Change:-change in a subsystem might include addition or removal of a product or service. there may be changes to how a product is created. entrepreneurial organization to one that has a more stable and planned development. top-down style in which stability and standard processes are valued.

More than 40% of participants rated their organization resistant to change with a . Ability to change The rate of 230 organization¶s on basis of ability to change. which causes its members to respond in a highly reactive and disorganized fashion. indicating a high level of adaptability to change.  Developmental Change:-Change that takes place to make a successful situation even more successful. Figure A shows the distribution of scores on a 1 to 5 scale. People resist to undertaking change most of the time because:After top 230 organization meeting result come that most of the employees resist the changes. or other disruptive situations arise. or duplicate successful products or services. Many times. depending on how specific goals are and how important it is for members of the organization to achieve those goals. Only one fifth of participants rated their organization a 4 or 5. sudden surprise to the organization. poor product performance quickly results in loss of customers. Developmental projects can seem more general and vague than remedial. Unplanned change might occur when the Chief Executive Officer suddenly leaves the organization.  Unplanned change:-Unplanned change usually occurs because of a major. organizations experience incremental change and its leaders do not recognize the change as such.  Incremental Change: Incremental change might include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies.organization and then put them back together in a more optimal fashion. for example. expand the amount of customers served. with one being the most rigidly opposed to change. significant public relations problems occur. Transformational change is sometimes referred to as quantum change.

The current processes and systems seemed fine to the employees. "Will I have a job?." "How will I benefit from the change?". Employees did not have the answer to the question. ³what¶s in it for me?´. This could include. Figure ± Ability to change  Employee resistance Participants gave a variety of reasons for resistance by employees and managers. They believe change is unnecessary or will make the situation worse. and they were opposed to the change . nor did they have adequate knowledge regarding the change itself." "How will it impact my daily work?. Employees did not clearly understand why the change was happening. y Comfort with the status quo and fear of the unknown Participants indicated that employees tended to be complacent. or that the current way of doing business had been in place for a long time. The top-five reasons for employee resistance were: y Lack of understanding around the vision and need for change Participants indicated that the primary reason for employee resistance was that employees did not understand the vision of this particular change project.score of either 2 or 1.

Changes often eliminated something the manager had control of or introduced something that the manager would not have control over. Employees were desensitized to change initiatives.´ and employees expected it go away like those in the past. pressures of daily activities and limited resources. y Opposition to the new technologies. y Corporate history and culture The organization¶s past performance with change projects impacted the employees¶ support of the current change project. requirement and processes introduced the change Many participants felt that some employees resisted the change because of opposition to the actual change itself. Managers felt that the change was an additional burden. responsibility and accountability. y Overload of current tasks. as many had been introduced and failed. and some participants indicated that the change was even perceived as a personal attack on the managers. Uncertainty and fear of the new system compounded the desire of employees to continue with the ³old way´ to which they had grown accustom. Limited resources . Some employees felt that the change would eliminate the need for their job.  Manager resistance Reasons for manager resistance to change were: y Loss of power and control The leading reason for manager resistance to change was a fear of losing power. some employees opposed the new processes. Lastly. Managers perceived the changes as infringements on their autonomy.since it forced them out of their comfort zone. y Fear of job loss Employees perceived the business change as a threat to their own job security. The change was seen as adding unwanted work. while others were unsure of their own abilities and skills in the new environment. Employees were opposed to changes that increased the performance and process measurement of their work. systems or technologies because they felt the change would not solve the problems. The project was seen merely as the ³flavor of the month.

One participant reaffirmed this fear: ³They were eliminated in the change. so no resistance was recorded. Majority of the business firms are also resistant to changes. managers were expected to continue all of their current duties in addition to the duties of implementing the change. systems or technologies. Managers who did not play a role or provide input in the design and planning phases tended to resist the solution.´ y Disagreement with the new way. Managers felt that the business change would ultimately impact their own job security. First. In many projects. Managers were not convinced of the need for change. Some managers disagreed specifically with the change. this is specifically true in case of organizations which are conservative in nature. Managers also were concerned about the demands and responsibilities placed on them by the new business processes. The major reasons for organizational resistance are . or they did not identify the same problems as the design team. managers were uncomfortable with their role in managing the change. y Fear of job loss. Several skill areas were identified as areas of concern. y Lack of skills and experience needed to manage the change effectively. y Skepticism about the need for change. They did not feel that the solution was the best approach to fixing the problem. Some participants felt that the resistance was due to the solution not being the idea of the manager. Some organizations are so designed that they resist new ideas. Middle management is often the victim of large-scale business change. Some feared recrimination while others did not have the experience or tools to effectively manage their employees¶ resistance. The change initiative seemed like extra work and resource strain at a time when the pressures of daily activities were already high.  Organizational Resistance Organizational resistance means that the change is resisted at the level of the organizational itself. They did not see the business issues driving the change. Managers were fearful of the new demands that would be placed on them by the business change.compounded the problem.

one system cannot be changed without affecting the others. y Threat to specialization. The heavy capital which already invested in the fixed assets or the amount which has already been spent on the training of the employees will go waste if the change is introduced. The introduction of participative decision making or self-managed work teams is the kind of change which is often seen as threatening by the middle and top level management. y Resource constraints. Moreover. employee resists the change. For example. giving computer training to all the employees in the organization and giving personal computers was perceived as a threat by the experts in computer department of the organization. An organization that does not have resources for implementing the change resists it.  Factor by people resistance to change y Economic Factors  In organization when the development or change on technology takes place.y Threat to Power. Generally. Change in organization may threaten the expertise of specialized groups. Top management generally considers change as a threat to their power and influence in the organization due to which the change will be resisted by them. Employee may fear that the change will lead to technological unemployment. . The change is generally resisted by the top management because it often leads to the problem of sunk costs. Change is often resisted by the bureaucratic structures where jobs are narrowly defined. Sometimes. y Organizational structure. The degree and force of resistance will depend upon how loyal one is to the group and how effectively the group resists the c hange. lines of authority clearly spelled and flow of i9nformation is stressed from top to bottom. new technology is associated with education of labor intake and therefore they resist the change. Organizations need adequate financial resource for training change agents and for offering rewards to those who support change. organizations are made up of a number of interdependent subsystems. the individuals resist change because the group to which they belong resists it. y Group inertia. y Sunk cost.

To learn these ideas they need work hard and they do not want to take the trouble in learning new things. Methods to overcoming the resistance to change among the employees by organization These ideas that can helpful for organization to consider when organizing and implementing change are:-  Build an environment of trust with the employees in order to create a workplace where employees are more open to ideas and more willing to discuss possibilities and .  The workers may be incapable of understanding the implications of new ideas and method. breaking present social relationship reduce social relationship.  Workers resist the changes which lead to high standards which in turn may reduce the opportunities for bonus or incentive pay.  Change in technology brings new method of doing the job and it must be learnt and adopt the new ideas of doing the job. In organization where pay is tied to productivity individuals usually resists change as they fear that they will not be able to perform new task effectively.  New changes may lead to reduction of the personal pride of the workers because they fear that new work changes will do away with the need for much manual work. The change will bring a fear in mind of people because generally people dislike with for new adjustment. In organization.  Workers may not like criticism implied in a change that the present method is inadequate and unsuitable.  Workers may fear that they will be demoted if they do not acquire the skills required for the new jobs. belongingness. y Psychological Factors  Workers may have the fear that the new job will bring boredom and monotony as a result of specialization brought by the new technology. etc. y Social Factors  Every individual have social needs like friends. thus causing a decline in productivity and a decrease in their income. while working employee develop social relationship with the other employees. feeling of outside interference in the form change agent etc. They become members of certain informal group.

Rather. This includes coaching those who need support with the change. to provide a safe environment where people are free to express their opinions without fear of retribution.problems associated with change. etc. They also point out that this communication must be honest and complete.  Establish a vision with the employees regarding the possible advantages of making the change in order to help the team define for themselves where the change will take them. They must understand that the change will have positive impact on them personally. Linking to values and aspirations does. hiring employees who have the new capabilities needed in the change effort.  Link the change effort to a common team value in order to help employees feel they can relate to the change effort at a personal level.  The leader must manage performance around the change.  Constantly monitor the process and the results to ensure that the change effort is on track. . The leader should actively wins and celebrations so employees can see that the change effort is important and sees that changes in behavior will lead to positive outcomes. One respondent mentioned that there is reluctance to without bad news. respondents mentioned the need to be open to ideas. A leader must collaborate with team members so that employees are involved with and buy into the changes and not perceive the whole exercise as something that is being done to them without their consent. disciplining or removing those who continually resist the change or have decided to fight against it. rewarding positive changes. to listen. This increases the desire and motivation to change.. Don't rely on facts and figures alone to support the reasons for change. Almost all respondents to the survey emphasized that employees must see the benefits of the change. it should be constant throughout the effort and it must reach out to all members of the organization on as frequent and personable a level as possible. etc..  Communicate a clear message about why the change effort is needed and will help the team. To do this.  Establish and celebrate wins along the way.  Improve the effectiveness of a change effort related to involving team members in the change. Facts and figures don't inspire and motivate people to action.

 Show them the pros and cons one of the best ways to gain the support of your employees is to show them the pros and cons of change. Slow changes will help them adapt easier and before he know it. he can find different ways to work with them and help them overcome this problem. Change is a big deal and so they must consider the impact of his new ideas and how it will affect his employees. don¶t overwhelm them with a big change all at once. Talk to employees often and make sure they are ³ok´ with the changes. everyone will be on board with his new ideas. especially employees that have been with an organization since most people are resistant to change. .  Recognize the impact of change one of the biggest problems with change is that new managers think they can swoop in and ³solve´ the problems of an entire department. Communication is a big part of overcoming resistance to change.Methods to overcoming the resistance to change among the employees by manager When someone takes over as a manager. talk to them and find out what they think would make their job better. Since we know they will struggle a little bit with change. he or she also needs to come up with ways to avoid it from occurring. Then he needs to let them know that they have gone through all the cons of the changes.  Focus on support instead of resistance actively involving all employees those resist the changes in the process is one way to gain their support. He wants his employees to see what is happening now and how the new changes would like to implement by them will improve the organization.  Let them know manager care for them let them know that manager care for them and that being a manager he is trying to improve the company and their jobs. When he lists a con. Maintain an open-door policy and encourage employees to come and talk to him when they are feeling frustrated by the new changes. instead he need to slowly introduce the changes he would like to bring to the organization. don¶t make it harder on them by assuming they won¶t notice or telling them that they just need to go with the flow. there are a number of changes that he will probably need to implement. People are naturally resistant to change. Employees like to feel needed by their managers and giving them an opportunity to brainstorm and be a part of the new changes is a great way to help them learn the importance of their job. If they aren¶t.  Do it slowly if he have some employees that are resistant to change.

Almost everyone resist the changes but for growth of organization there is need to take the changes it can be any changes as discussed above in different types of changes .Without effective communication. they will be able to notice your commitment to them and they will have an easier time overcoming their fears and doubts that come with change References:y y y www. but still employees face the problem as reason above organization have to help them to overcome from this problem an d when organization show their employees that their recognize the hardships the new changes can bring.suite101. So every organization should create the environment that their employees not resist change but adapt it easily.com www. Conclusion: So Change is not easy.google.com Www. a company will not last long and manager won¶t go very far as a manager. Scribd.com .

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