What is organisational change? Discuss the sources of resistance to change in organisations. How can effective change be implemented in an organisation?

Q. What is organisational change?  Discuss the sources of resistance to change in organisations.  How can effective change be implemented in an organisation?

Ans.  The term “Organisational Change” implies the creation of imbalances in the existent pattern or situation.  Adjustment among people, technology and structural set up is established when an organisation operates for a long time.  People adjust with their jobs, working conditions, colleagues, superiors etc.  Similarly, an organisation establishes relationship in the external environment.  Change requires individuals and organisations to make new adjustments.  Complexity and fear of adjustment gives rise to resistance and problem of change.  Human resource is an important factor in relation to the adjustments among individuals as well as between the organisation and environment, as an organisation is mostly composed of people.  Individual members can resist either individually or in a group.

Change could be both reactive and proactive.  A proactive change has necessarily to be planned to attempt to prepare for anticipated future challenges.  A reactive change may be an automatic response or a planned response to change taking place in the environment.

Changes relating to organisation include change in employees due to transfers, promotion, retrenchment, lay-off, restructuring or organisation, introduction of new products or services, imposition of regulation, changes in organisational goals or objectives etc.

The basic problem in the management to change is the study of causes of resistance to change.  Despite the fact that change is a persistent phenomenon, it is a common experience that employees resist change whether in the context of their pattern of life or in the context of their situation in the organisation.  The best example is resistance of employees to computerisation.  Change of and type requires re-adjustment.  ‘Man always fears the unknown, and a change represents the unknown’.

Sources of resistance to change in an organization.

Reasons for Resistance :-  Some of the important reasons for resistance to change are as follows :

(a)  Economic Reasons :  Economic reasons for resistance are classified into three groups.  They are :

• Fear of reduction in employment – Due to the change in technology, methods of work, quantity or quality of work etc. this fear leads to resistance to change on the part of the people.  Opposition to automation is an example to it.
• Fear to demotion – Employees may fear that they may be demoted if they do not possess the new skills required for their jobs, after the introduction of change.  Hence, they  prefer ‘status quo’.
• Fear of workload – Change in work technology and methods may lead to the fear that workload will be increased while there will not be any corresponding increase in their salaries and benefits.  This feeling creates resistance to change.

(b)  Personal Reasons :  Personal reasons for resistance are also divided into three classes.  They are:

• Need for training – If change in technology and work organisation necessitates training and re-learning on the part of employees, it may lead to resistance, as all do not like to go for refresher and retraining courses off and on.
• Boredom and monotony – If the proposed change is expected to lead to greater specialisation resulting in  boredom and monotony, it may also be resisted by employees.
• No participation in change – Some employees resist any change as they are critical of the situation and thy are not being given any part in the decision making process for change  When they do not understand fully the implications of change they resist it.

(c)  Social Reasons :  Social reasons for resistance are also classified into three groups.  They are:

• Need for new social adjustment – an organisaitonal change requires new social adjustment with the group, work situation and new boss etc.  All individuals are not ready to accept this challenge.  Some people refuse transfers and promotions for this reason only, as they will have to break their present social ties.
• Taking change as imposed from outside – some employees take any change as imposed from outside upon them.
• Other considerations – some employees may consider that every change brought about is for the benefit of the organisation only and not for them, their fellow workers or even the general public.  Hence they resist the change.

Resistance from the Side of Managers – It is not a common fact that change is always resisted by the employees only.  Managers also resist change sometimes.  Any change sets in new responsibilities and imposes new tension, stress and strains over them is normally resisted by managers.  The feeling of uncertainty, whether they will be able to handle new circumstances successfully or not, motivates them to resist.

Effective change can be implemented in an Organisation by different approaches:

Approaches to Organisational Change :-  Management is said to be an agent of change.  It means that the management has to introduce change successfully in its organisation.  It has to overcome the resistance and make it a successful venture.  The management must realise that resistance to change is basically a human problem, though on the surface, it may appear to be related to the technical aspect of change.  So, it must be tackled in a human and social manner.  Management has to take the following steps to implement the change successfully:

(1)  Participation of Employees :  Before introducing any change, the employees should be fully consulted and they must be a party to any such decision.  The meaning and purpose of the change must be fully communicated to those who will be affected by it.  Enough time should be allowed for discussion and the pros and cons of the change should be explained in detail to the employees.  (see box below).

(2)  Planning for Change :  Before implementing any change, the management should plan for it.  Employees should get an opportunity to participate both in planning the change and installing it.  This will help the group of the affected employees to recognise the need for change and thus prepare them for receiving it without any fear.

(3)  Protecting Employees’ Interest :  Management should ensure that employees are protected from economic loss, loss in status or personal dignity.  If those things are protected, the degree of resistance to change will be at the lowest ebb.

(4)  Group Dynamics :  Group dynamics refers to the ever changing interactions and adjustments in the mutual perceptions and relationships among members of the groups.  Such group interactions are the most powerful instruments which facilitate or inhibit adaptation to change.  Adaptation is a team activity which requires conformity to the new group norms, moves, traditions and work patterns.  If these could be positively articulated by the management, the results are likely to be more successful and durable.

(5)  Cautious and Slow Introduction :  The management should not introduce any change suddenly and abruptly.  It must be an objective for the management to build in the organisation an awareness of change and an ability to forecast it, and also to construct an attitude of welcoming change.  Change must be introduced in sequential parts, and if possible, the results must be reviewed and required adjustments must be made in it.

(6)  Positive Motion :  The management should use the policy of positive motivation to counteract negative resistance.  It should be the attempt of the management to make the job easier and less exerting.  Te management should impart proper training to its employees in new techniques and work knowledge etc.  The leadership styles should also be supportive and human oriented.  The policy will also bring down the resistance to change.

(7)  Sharing the Benefits of Change :  Any change whether technical, social or economic will be least resisted by the employees if the management permits the employees to share benefits which arise out of the change.  So, the management must see that employees are not only assured of it, they are given due advantage of it as well.

(8)  Training and Development :  Management should plan for change.  Based on the change plan, the job should be redesigned.  Management should train the employees before hand and prepare the employees to invite change.  Normally, trained and developed employees will not resist change as they cannot keep quite with enriched skill and knowledge.

(9)  Career Planning and Development :  Organisation on the basis of change plans and redesigned jobs should plan for careers of employees, possibilities to move the employees to the higher levels and develop them.  The developed employees for future careers demand the management to implement change.

(10)  Organisation Development :  Organisation development aims at moulding and development of employees in the psychological and behavioural areas with a view to achieve organisational effectiveness.  Employees with enriched behaviours welcome the change.