Management of change

Change is probably one of the most feared activities in some businesses. This is especially
difficult when employees have become accustomed to doing their tasks in a particular way or
have served many years in an organisation and have developed a specific culture. In any
organisation change is inevitable and so the main concerns should be how change will affect the
business and how the main stakeholders (managers, employees and customers) will respond to it.

Factors that may cause change in the organisation

There are a number of factors that may cause change in an organisation. These can be
categorised as either internal or external.

Internal influences

Internal influences may arise as a result of management policies or employees’ attitudes. These
factors can be controlled by the management of the firm. Internal influences include:

- The development of a new product – this may require change in the staff composition
or general processes that are necessary to introduce the product to the market
- Mergers and takeovers – inevitably, once there is a takeover or merger of two entities
there will be changes in management and staff. On many occasions a merger or takeover
results in staff cuts and addition to the existing management team. In recent times the
Caribbean has seen mergers such as Royal Bank of Trinidad and Tobago and the Royal
Bank of Canada and takeovers such as Columbus Communication (Flow Jamaica Ltd)
and other cable providers in Jamaica
- Control systems – As firms seek to improve the quality of their product and the service
offered, there may have to be some changes in the way things are done
- Customer service – this is very important, especially in these times when a number of
firms are becoming customer focused in order to remain competitive. As the tastes and
lifestyles of the consumers change, it may spur changes in the way the firm carries out its
activities.
External influences

These result from factors that are outside of the control of the firm. External factors include:

Technological

This is probably the fastest-changing external variable. We have seen vast improvements in
technology over the past decade or so. There have been changes in computer technology,
communication technology and the use of artificially intelligent robots in factories and offices.
This improvement may be used to cut labour costs or employees may have to be retrained to
operate the new technology or redeployed.

Economical

Some of the major economic variables include inflation rates, exchange rates, interest rates,
unemployment, economic growth and development. Changes in one or more of the above
variables will bring about changes either in the financial viability of the business or in the lives
of the employees. The recent recession and global meltdown have no doubt left many people and
businesses financially worse off than before. This may mean that demand for the firm’s product
has decreased and soon people will have to be laid off. Some workers may even be asked to take
a pay cut in order to preserve their jobs. This can lead to a sense of job insecurity and
uncertainty.

Demographic

This concept relates to the characteristics and structure of a population. Demographical factors
include age, size of families, marital status, sex, income and occupation. As the size and structure
of the population change there will be changes in individuals’ consumption pattern. Eventually,
firms will have to modify their activities to adapt to the changes in the consumption pattern of
the population. Modification may include changes in the product or how the firm does business.

Social

These changes include modification to society, lifestyle of people and the environment. Social
factors may also include society’s attitude to work and leisure and the increasing numbers of
women at work. Changes in the social structure of society will in turn affect the firm which will
have to change also.
Legal (political)

The legal environment includes legislation and other government policies that will have an
impact on the way the firm does business. Some pieces of legislation that should be of concern to
the firm include health and safety laws, consumer protection laws, environmental protection laws
and taxation policy. A change in any of the aforementioned legal factors will impact on the firm
and its employees. Another issue that cannot be overlooked is the political environment in which
the firm operates. Where there is political instability the firm may have to go through constant
changes. Some firms have to make changes as the government changes its economic policy or if
there is a change in the government itself.

Differences between leading and managing change

You may be asking the question: is there really a difference? The answer can be found in the
definitions of both concepts and how each relates to change in the organisation. S Robbins,
Organizational Behaviour (6th edn, 1993; Prentice Hall International Editions) defines ‘leading’
as the ‘act of motivating subordinates, directing others, selecting the most effective
communication channels and resolving conflicts’. Leading the change involves actions on the
part of senior management to create a plan of action to implement the change and delegating
responsibility to people who will manage the process. On the other hand, managing is the act of
bringing people together to achieve a common goal or objectives. Managing the change involves
actions on the part of lower-level management to implement and oversee the change while
evaluating the progress and effectiveness of such change.

The people leading the change are those who decide on what changes to make in the
organisation. In leading the change, there has to be a strategic plan which details the timing of
the change and the people who have responsibility for its implementation. As the global
environment changes, senior management has to envision the necessary changes that should be
made to remain competitive and gain an edge over rivals. It is important to point out, though, that
the success of these changes might depend on the effectiveness of the management team which
implements and manages them. The way in which these changes are implemented will lead to
either acceptance or resistance.
 Resistance to change

Resistance to change is any action of non-conformance taken by employees because of a

perception that a change will be a threat to them. The extent to which employees may resist
change may depend on whether or not the change will be beneficial to them. There are several
factors that may lead to a resistance to change, as seen below:

Fear

Uncertainty as to the possible impacts of change on the lives of employees creates a sense of
fear. The fear of the unknown may prevent employees from accepting change in the organisation.

Disrupted habits

There is a tendency for us to become ‘creatures of habit’. In any given day there are at least a
few things that we do the same way and we have become good at doing them. It is no different in
the workplace, as employees develop habits and generic responses to certain situations. For
example, a telephone operator who has practised answering the company phone in a specified
way may find it difficult to deal with a name change.

Loss of control and confidence

Trust is probably one of the hardest things to build and usually takes time. Over time, employees
may have developed confidence in the management of the firm and such a relationship is
essential, especially when a change is to happen. However, if employees feel that their trust has
been betrayed or they have lost confidence in management then there will be resistance to
change.

Poor training

Ignorance can lead to uneasiness and thus resistance to a change that will require a certain level
of competence beyond one’s training. Unless people are properly trained to deal with different
situations, a change in job requirements and tasks may spur serious resistance.

Redistribution of workload

Over time, people will have become comfortable with their workload and the tasks they have to
complete on a daily basis. Where the firm decides to shuffle staff members or redistribute the
workload, it may lead to severe resistance. Some people may feel that they are being unfairly
treated as their workload is greater than that of others, even though they are equally qualified.

Lack of purpose

Employees need to know what the purpose of any change that occurs in the organisation is. Once
employees are not clear on the purpose of a change, they will be reluctant to support it. This is
perpetuated by poor communication. People who are particularly keen, in terms of having a clear
vision of where they are going and how to get there, may resist any change that is not properly
communicated or does not have a clear and defined purpose.

Loss of power

In some situations any change that will result in people losing autonomy or the power to make
certain decisions will be met by resistance. The resistance might even be greater if the employee
once had a supervisory role and is now being asked to accept a lower position or one with no
authority.

Lack of communication

Ignorance is probably one of the most contributing factors to resistance to change. People are
more willing to accept something about which they have sufficient information. Lack of or poor
communication on an upcoming change may result in serious resistance. This is magnified
especially where management has an autocratic leadership style.

Strategies for managing change

Prudent managers can help their subordinates to overcome their resistance to change. It is in the
best interests of the firm and management to decrease the level of resistance to change.
Prolonged periods of resistance may lead to conflict between management and subordinates. The
following are some of the tactics available to management to overcome resistance to change.

Educate employees and communicate the change

It is often said that ‘knowledge is power’. Some people within the organisation resist change
because they are not aware of the benefits to be derived from changing or they lack the necessary
skills and training to deal with the change. Educating the employees about the changes that are
necessary and how they coincide with the goals and objectives of the firm can nullify the
resistance being experienced. Workers should not be kept in the dark since, in most situations,
the resistance is as a result of misinformation and poor communication. Therefore, upcoming
changes should be communicated in an effective manner depending on the nature of the change –
for example, the use of memos, one-on-one discussion, letters or group presentation.

Allow employees to participate in the change process

If we really think about it, people may find it difficult to resist a decision for change that they
were involved in making. With this tactic, employees would be consulted prior to the change and
meaningful discussion undertaken. This gives each person a chance to voice their opposition and
work to find an amicable solution before the change is implemented. If this is successful, the
organisation could benefit from reduced resistance, increased commitment from staff and
increased quality in the change decision. The firm must be cautioned, though, that such a move
may be time consuming and has the potential to result in a poor solution to the problem that
warrants the change in the first place.

Negotiate with resisters

This tactic involves conferring and bargaining with the employees until an agreement is reached
regarding the change. This tactic gives possible resisters an opportunity to influence the change
process during the bargaining sessions. Negotiation is particularly effective when a change may
cause a trade union to become involved – for example, a decision to downsize the organisation.
In addition, this tactic is often used where some individuals stand to lose significantly as a result
of the change and have the power to put up resistance. In such situation negotiation may help to
lessen the resistance. However, the act of tailoring the change to suit some people may spill over
into the rest of the organisation and employees may feel that they too can force management to
modify the change. In very serious situations it could even lead to blackmail.

Play a supportive role

In order to lessen resistance from those employees who are fearful or who lack the requisite
skills to deal with change, the organisation may play a supportive role. In doing so, management
may provide skills training or counselling sessions to deal with fear and anxiety. However, this
tactic tends to be very expensive and time consuming.

Coerce employees to comply

This tactic is probably the least popular of all. It involves management threatening employees
with loss of promotion, transfers or dismissal.

The importance of communication in the management process

Effective communication is one of the key components of the management of people.

Communication is also important in the change process. There is a tendency for employees to
resist change where they are not informed or misinformed. The onus is therefore on management
to ensure that the change is communicated properly and effectively, and in a timely manner. The
following are some generally accepted ‘rules of thumb’ that should be followed when
communicating a change in organisations:

- The message should be unambiguous – since the impact of the change may be very
great, it is imperative that the information being communicated can be understood by
everyone. The message about organisational change should be simple and clear to all
employees
- Information should be given in a timely manner – delaying the communication of
information will just add to the possibility of resistance to change. Therefore, information
should be communicated as soon as possible and in a timely manner.
- Use numerous methods of communication – there is no one best way to communicate
information regarding change. Management should then utilise as many methods of
communication as possible that will enable an effective way of communicating the
necessary information
- Important information must be communicated – all information of importance must
be communicated to employees. Nothing should be withheld, as this may add to
speculation and the spread of falsified information which may be damning to the change
process
- Pay attention not just to quantity but to quality of information – in communicating
information about a change, management should look not only at the amount of
information but at the quality of such information.
- Give employees opportunities to share feedback – Communication really is not
complete unless there has been feedback. It is therefore paramount that employees be
given sufficient opportunities to voice their concerns regarding the changes in the
organisation.