CHANGE AND INERTIA; ITS IMPLICATION FOR MANAGEMENT

IN ORGANISATION

A PRESENTATION OF GROUP TEN MBA I CLASS OF

NSUK

MANAGEMENT THEORY AND PRACTICE

MARCH 2010

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 GROUP TEN MEMBERS

1. BABALOLA KAYODE S.
2.ADOGA EMIENE PATIENCE

3.AAKOO BARITORE G.

4. AHMED D. LAWAL

5. ABDULRASAK ODEYEMI

6. YOHANNA AUDU BABA

7. SHONUBI MOJISOLA

8. TAYO KOREDE

9. HUSAINI SHEHU

10. AWODELE TAOFIQ A.

11 OGECHI V. NJOKU

12. OLORUNSUYI ADEMOLA

13. PETER NJOKU

14. EZRA S. EKOM

15. IBRAHIM USMAN LIMAN

16. TAIWO OLORUNYOMI

17. MUSA YAKUBU ALIYU

18 UMORU GRACE

19. ALIYU FARUQ

20. SOLOMON MEDUGUS

21.ONUORA CYRIL ARINZE.

22.RAJI AYODELE

23.IBRAHIM FATIMA OMOTOYOSI

24.SHADARE MUTIAT MOJIBOLA

25.WAKIDARA MAVIS AKILA

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INTRODUCTION

Change is inevitable in any organisation. Business operates in a dynamic

environment which implies change. An organisation that fails to recognise the
inevitability of change is doomed to failure. The manager that succeeds is one
that is constantly adapting the direction and the operation of his enterprise to
change in technological, social, political, and economic environment in which it
operates. Every management personnel in the organisation – production,
marketing, personnel, finance, or purchasing is affected. For an organisation to
grow and prosper, it must monitor changes in

(a) Manpower situation- participation rate, change in the composition of

labour force, skill availability, role of labour unions, and trends in
bargaining agreements.
(b) Government policies dealing with such issues as minimum wage ,labour
relations ,air pollution ,taxes ,import restrictions, and the possibility of
military takeover or war, introduction of promotional exams for directors
in the civil service .
(c) Economic changes such as total production increase in competition and
price changes, total national income and income distribution.
(d) Technological breakthrough that could render company products
obsolete, or the use of computers that have revolutionalized record
keeping, inventory control, clerical jobs, medical diagnosis, traffic
control, telephone operation and mail delivery.
Employees are getting more enlightened, more sophisticated and very
conscious of their rights. These are changes not expected two decades
ago.
The problem with change is that human beings are creatures of habit.
Once they are used to performing a task in a certain manner they resist
any proposal that would necessitate doing it differently.

The general principle is that whenever a change is perceived as a threat, likely

resistance will occur, this resistance is known as inertia. Even for positive
changes such as promotions , or those that result in more autonomy or authority,
people will concentrate on what they will be losing, it is said that resistance to
change is often due to fear of some loss. It is not the proposed change that
people resist, but the impact that the changes will have on them, personally.

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This resistance is not limited to employees, managers and executives may be
just as prone as employees to experiencing problems with radical organisational
change.

WHY PEOPLE RESIST CHANGE

The most effective way to introduce change is to identify the reasons why
people resist change. Employees, irrespective of their position, educational
background or experience, tend to react negatively to plunging into the
unknown. People react to change for the following reasons:

- Training and Environment

Training an individual conditions him to seeing and perceiving things in a
certain way. Accountants are cost conscious and meticulous as to record
keeping, engineers are trained to be precise in measurement, doctors
stress good health and cleanliness while business students talk of profit,
business growth and competitive strategies. This training influences their
attitude towards certain circumstances. Their initial reaction to anything
that appears to contradict what they have been taught and are used to is
resistance.
- Habit
Human beings are creature s of habit. They get accustomed to performing
a task in a certain manner and resent any effort by any outside influence
asking them to experiment with other methods. People who are used to
putting on their right shoes first refuse to put their left shoes on first- a
change that does not involve any hardship. Habit makes life comfortable
because it is not threatening. Habit makes people resent new and useful
methods because they claim ‘we have always done it this way and it
works.’ Those of us, who are accustomed to the imperial units of
measurement, resisted the changeover to the metric system and still talk
about miles and gallons when a majority talk about kilometres, and litres.
- Fear of the unknown
One of the basic reasons for the resistance to change is fear of the
unknown. This is a natural fear.
All the businesses that work on fear of the unknown-insurance companies
and banks do very handsome business because they evoke the emotion of
fear. They talk about risks, accidents, deaths or ask you to save for the
‘rainy day’. The fear of thieves has made the installation of burglary
proof devices on almost every new house imperative, thus promoting the
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 business. Car safety devices flood the Nigerian market because of the fear
of thieves. The fear of the unknown is a legitimate fear and is one of the
major causes of the resistance to change.
- Personal attitude
People’s attitude to change varies. Some people resist change more than
the average individual. People’s attitude to change is often influenced by
their past experiences. A person who lost his car when Nigeria changed
her driving habit from right to left will have a different attitude to future
changes in road manners than one who has never had any ugly
experience. From one’s frame of reference one builds a personal
resistance or attitude conducive to the accommodation of change.
- Psychological Reason
Some people have innate fear of failure. They may not have experienced
real failure but somehow there is the feeling that it is around the corner.
Change in some instances, may require a revision of behavioural process
of perception. The change will require the interpretation of new stimuli
and reorganisation of behavioural processes.
- Financial Process
If a company introduces change, it could affect an employee’s skill and
productivity. If it is a piece-rate job, the employee stands to sustain
financial loss. New technology is known to have rendered certain skills
obsolete. The introduction of data processing machines and mini-
computers has reduced the number of accountants in large corporations.
Labour unions have often fought the introduction of labour saving
devices and have engaged in negotiations to ensure that employee’s jobs
are secure. Loss of job threatens a person’s psychological need and the
fear touches on his safety need. Employees react violently to anything
that would threaten these basic needs.

TYPES OF ORGANISATIONAL CHANGE

While external environment (competitive , regulatory ,and so on) will continue

to play a role in an organisation’s ability to deliver goods and services ,the
internal environment within the organisation will increasingly inhibit it from
delivering products required to meet the demands of the marketplace unless it is
able to adapt quickly. The major areas of change in a company’s internal
environment include:

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STRATEGIC

Sometimes in the course of normal business operation it is necessary for

management to adjust the firm’s strategy to achieve the goals of the company,
or even to change the mission statement of the organisation in response to
demands of the external environments. Adjusting a company’s strategy may
involve changing its fundamental approach to doing business: the markets it
will target, the kinds of products it will sell, how they will be sold, its overall
strategic orientation, the level of global activity, and its various partnerships and
other joint-business arrangements.

STRUCTURAL

Structural change occurs when there is an alteration to the company’s

organisational structure. This reorganisation may occur due to a merger or
acquisition, or it may be the result of a restructuring.
Organisations often find it necessary to redesign the structure of the company
due to influences from the external environment. Structural changes involve the
hierarchy of authority, goals, structural characteristics, administrative
procedures, and management systems. Almost all change in how an
organisation is managed falls under the category of structural change. For
instance, an organisation that is intent on increasing its innovation may
reorganise its traditional functional structure into a more flexible matrix
structure that uses small, self -managed team. Or, an organisation that is
expanding into new markets may adopt a divisional structure in which different
geographic locations operate nearly independently of one another. A structural
change also may be as simple as implementing a non –smoking policy, or as
involved as restructuring the company to meet the customer needs more
effectively.
PROCESS ORIENTED CHANGE

Organisations may need to engineer processes to achieve optimum work flow

and productivity. Process oriented change is often related to an organisation’s
production process or how the organisation assembles products or delivers
services. The adoption of robotics in a manufacturing plant or laser- scanning
checkout system at supermarkets are examples of process oriented changes.

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PEOPLE CENTERED CHANGE

This type of change alters the attitude, behaviours, skills, or performance of

employees in the company. Changing people –centred processes involves
communicating, motivating, leading, and interacting within the groups. This
focus may entail changing how problems are solved, the way employees learn
new skills, and even the very nature of how employees perceive themselves,
their jobs, and the organisation.

Some people-centred changes may involve only incremental changes or small

involvement in a process. For example, many organisations undergo leadership
training that teaches managers how to communicate more openly with
employees. Other programmes may concentrate on team processes by teaching
both managers and employees to work together more effectively to solve
problems.
It is worthy to note that strategic, structural, process oriented, and people
centred changes occurs continuously in dynamic businesses. Often, changes in
one of these areas impact changes in other areas.
Many employees believe that a change is often reactive and nothing more than a
quick fix; then they brace themselves for more changes in the future.
Management needs to realise that serious underlying problems in organisations
must be addressed with long time consequences in mind. Thus, when
management implement changes, careful thought must be given to ensure that
the new processes are for the long term good of the company.

DEVELOPMENTAL CHANGE

It may be planned or emergent; it is first order or incremental. It is change that

enhances or corrects existing aspects of an organisation, often focussing on the
improvement of a skill or process.

TRANSITIONAL CHANGE

This seeks to achieve a known desired state that is different from the existing
one. It is episodic, planned and second order, or radical.

TRANSFORMATIONAL CHANGE

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It is radical or second order in nature. It requires a shift in assumption made by
the organisation and its members. Transformation can result in an organisation
that differs significantly in terms of structure, processes, culture and strategy. It
may, therefore, result in the creation of an organisation that operates in
developmental mode- one that continuously learns, adapts and improves.

PLANNED AND EMERGENT CHANGE

Sometimes change is deliberate, a product of conscious reasoning and action.

This type of change is called planned change.

On the other hand, change sometimes unfolds in an apparently spontaneous and

unplanned way. This type of change is known as emergent change.

EPISODIC AND CONTINUOUS CHANGE

Episodic change, according to Weick and Quinn (1999), is infrequent,

discontinuous and intentional. Sometimes termed ‘radical’ or ‘second order’
change, episodic change often involves replacement of one strategy or
programme with another.
Continuous change is ongoing, evolving, and cumulative. Also referred to as
‘first order’ or ‘incremental ‘change, continuous change is characterised by
people constantly adapting and editing ideas they acquire from different
sources.
CHANGE MANAGEMENT

Change management entails thoughtful planning and sensitive implementation,

and above all, consultation with, and involvement of, the people affected by the
changes. Change must be realistic, achievable and measurable. It needs to be
understood and managed in a way that people can cope effectively with it,
change can be unsettling, and so the manager logically needs to be a settling
influence.
Change managers should ensure that the people affected by the change agree
with, or at least understand, the need for change, and have a chance to decide
how the change will be managed, and to be involved in the planning and
implementation of the change.
For organisational change that entails new actions, objective and processes for a
group or team of people, use workshop to achieve understanding, involvement,
plans, measurable aims, actions and commitments. These principles can also be
applied to tough changes like making people redundant, closure and integrating

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merged or acquired organisations. Bad news needs even more careful
management than routine change, hiding behind memos and middle managers
will make matters worse. Consulting with people and helping them to
understand does not weaken your position-it strengthens it.
Responsibility for managing change is with management and executives of the
organisation, they must manage the change in a way that employees can cope
with it.

KEYS TO CHANGE MANAGEMENT.

Change is not something to be introduced very regularly. There is to be a felt

need before a real organisation change is embarked upon. The following
conditions are necessary.

1. EMPATHY
Management should put itself in the position of employee, in introducing
change, must listen to their questions and complaints with sympathy,
especially if it is a change that would involve labour saving devices, re-
education and new skills development or application. This helps to relax
anxiety which comes from uncertainty.

2. COMMUNICATION
Communication is probably the most important skill that people need to
have in order to be effective managers. It is probably the most taken for
granted, and the area least addressed by developing managers.
Before any change is undertaken, it must be communicated to all who
may be affected by the change. Their willing cooperation should be
solicited and obtained through education as to the values of the change.
The need for the change has to be emphasised. Failure to do this could
lead to organised effort to defeat the change. No change, no matter how
obvious the merit, should be introduced by fiat.

3. PARTICIPATION
Employee participation is to be sought where necessary. When a
manager involves employees in planning changes, he is obtaining their
commitment and indirectly ensuring the survival or success of the

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 planned change. Management will be surprised about the ingenuity
and dedication employees employ in order to see that responsibility
entrusted to them succeed.
Participation and input should be solicited (asked for, not demanded)
as early as possible in that change process, and through
implementation and evaluation.
4. TIMING
The timing of the introduction of any change influences its success or
failure. There are times when people are mentally prepared to
accommodate changes. When a new executive is hired in an organisation
for example, most subordinates expect him to introduce some changes.
The new executive stands a good chance of presenting changes after
studying the situation and employees will go along.
5. CHANGE SHOULD BE GRADUAL
As we have emphasised, there is bound to be resistance to change no
matter how minor the change. The greater the rapidity with which
changes are introduced, the more the resistance it receives. Constant
changes give one the impression that management is not imaginative and
lacks the ability to plan. Individuals adapt to changes at different rates;
ample time must be granted so that the organisation could carry all its
employees along. Management should avoid the tendency to initiate
frequent changes and expect employees to absorb, accept and cooperate
effectively.

TIPS FOR STRUCTURING PARTICIPATION

- Ask for input
- Seriously consider it and objectively evaluate it
- Use those ideas that are good
- Reject those that are not practical
- Give credit and other appropriate rewards to those who
contributed ideas that were used.
- Convince those whose ideas were rejected that their ideas were
considered, and explain why they were not used.

CHANGE AGENTS

A change agent is a person who is formally in charge of guiding a

change effort. The change agent is typically a part of organisational

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 development, which is a set of planned change intervention intended
to improve a company’s long term performance and survival. A
change agent may be appointed from within the ranks of current
company managers, or the agent may be an outside consultant who is
brought in during the period of change. Unlike the transition
management team, which only facilitate a change that has been
identified and planned by others, the change agent is involved in all
steps of organisational change.

The agent help to clarify problems, gather relevant information, assist

managers in creating a plan, evaluate the plan’s effectiveness and
implement the plan. After change has been successfully enacted, the
change agent either returns to his or her normal duties (if this person is
from within the organisation) or end his or her work with the company
if this person is a consultant.

There are advantages and disadvantages to choosing either an

organisational member or an outside consultant to be a change agent.
Outside consultants can be more costly and there is a greater risk for
trade secrets to be leaked. Additionally, the consultant is unlikely to
have the knowledge of the organisation that an employee has, nor is
this person likely to be trusted by others in the organisation as they
will trust one of their own organisational members. However,
consultants do have a more unbiased view of the organisation and its
problems. They may also bring more innovative or creative ideas to
the company. Finally, they may be used as a scapegoat when change is
implemented. That is, the negative emotions of organisational
members may be directed towards the outsider rather than at the
company’s management, which may make for a smoother transition
during the change process.

CHANGE MANAGEMENT PRINCIPLES

A. At all times involve and accept support from people within the system
B. Understand where you or the organisation is at the moment.
C. Understand where you want to be, when, why, and what the measure
will be when you get there.
D. Plan development towards above no. C in appropriate achievable
measurable stages.
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 E. Communicate, involve, enable and facilitate involvement from people,
as early and openly as is possible.

There are two kinds of change, first there is a change that results from external
forces requiring change, and where those required to change have little control
over the planning, nature, and execution of the changes. Second, there is
planned change where those directly involved have the opportunity to plan,
strategize, implement and control the changes, but these often overlap.
The model of change below applies to the second instance where those
involved can have at least some control over the changes, and can manage
change.

Step 1- determining the need for change

Step 2- Preparing a tentative plan

Step 3 – Analysing probable reactions

Step 4 – making final decisions

Step 5 – establishing time table

Step6 – implementing the change.

It is important to note that involvement and participation of all affected parties

is critical to change management during all of the change planning and
implementation steps.

HOW PEOPLE REACT TO CHANGE

Whatever the kinds of change that people encounter, there are certain patterns
of response that occur and re-occur. It it’s important that change leaders
understand some of these patterns, since they are normal outcomes of the
change process. Understanding this allows leaders to avoid overreacting to the
behaviours of people who seem to be reacting adversely and resisting change.

Whenever you ask people to do things differently, you disrupt their habitual
ways of doing things. This tends to make people feel awkward or uncomfortable
as they struggle to eliminate the old responses and learn the new.

A good example is the introduction of promotional examination for senior civil

servants from the position of assistant directors and above by the then head of
the civil service of Nigeria. This exercise was greeted with a lot of uproar and

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rejection, simply because it was a big shift from the usual trend where officers
in such positions just get promoted when due without examining them.

Even for positive changes such as promotions or those that result in autonomy
or authority, people will concentrate on what they will be losing. As a change
leader you need to acknowledge the loss of the old ways, and not get frustrated
at what may seem to be an irrational or tentative response to change

IMPLICATIONS FOR MANAGEMENT

The inability to think ahead and anticipate or failing to respond to internal and
external demands for adaptation and change are regrettably all too common
attributes of our organisations. Much like modern day dinosaurs, contemporary
institutions must either adapt to shifts in the environment or close their doors.

Understanding organisational inertial dysfunction helps manager’s better deal

with organisational resistance and failure.
Insight ,action ,and psychological inertia appears where there is a time lag
between important changes in the organisational environment and the
organisational awareness of those changes, management is therefore advised not
to take the aforementioned for granted. The discovery of those changes and
awareness of their corresponding implications does not occur in a timely way or
possibly not at all.

Psychological inertia must also be considered a barrier to change, a

psychoanalytically informed perspective emphasises stress, anxiety and
psychological defensiveness that may lead to individual and group compromises
and dysfunction that adversely affected organisational performance.
Management should continuously observe and feel the internal and external
environment so as to take proactive measures against perceived negative trends
in the organisation .Workers' attitudes and values have to change if the spirit of
innovation is to continue. An effective vehicle for effecting change is for top-
level management and others to exchange ideas. Formal arrangements, such as
regularly scheduled staff meetings facilitate exchange of ideas, reflecting on
values and learning what behaviour is inappropriate. Encouraging informal
meetings can often achieve the same purpose with higher degree of
effectiveness.
The distressing experience of change evokes anxiety that must be addressed in
some way by the management in order to still achieve organisational goal even
amidst the change process. Management and those advocating change should

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also take note that they may come to be seen and experienced as bad individuals
worthy of being resisted and even destroyed in terms of undermining their
competences and skills such as withholding or manipulating information and
resisting or blocking their ability to act.
A methodological approach to the issue at hand is a systematic problem solving
strategy that by its nature calls everything that is going on to question .Careful
problem definition is the first critical step. What exactly is wrong? What are the
contributing factors and to what extent? What is the relationship to each other?
The definition leads to the notion of brainstorming solutions, evaluating the
solutions, selecting one or more, placing them on a time line with resources and
implementing them with provision for monitoring and a feedback loop.
An equally systematic process is premise control that involves identifying key
assumptions and premises for plans and then gathering data systematically to
monitor their ongoing accuracy.
Psychological barriers to change are many times driven by a distressing
experience of the workplace that promotes excessive anxiety that leads to
psychologically defensive responses. Rationality may indeed not be particularly
available at a point in time when clear thinking and analyses are critical. Two
ways to avoid this all too common outcome are containment and the
development of a safe enough holding environment that permits the
development of transitional and many times transformational space and time.

CONCLUSION
Change is a pervasive influence. It is an inescapable part of both social and
organisational life and we are all subject to continual change of one form or
another. Let it be understood that part of every manager’s job in today’s
dynamic times is to act as a change agent in the work setting. This means being
alert to situations or people needing change, open to good ideas, and able to
support the implementation of new ideas into actual practice. Because of the
uncertainties surrounding today’s business world managers must be very
innovative if they must survive the dynamic business environment.
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