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Resistance to organizational change
Here are some ways organizations try to mitigate resistance to change: - Communicate the reasons for change clearly and frequently using multiple channels - Involve employees in the planning and implementation process to gain buy-in - Provide training and support to help employees understand and adapt to changes - Address people's fears and concerns openly and acknowledge negative impacts - Offer incentives or rewards for adopting changes - Lead by example with strong support and participation from senior leadership - Implement changes gradually in phases to allow people time to adjust - Celebrate early successes and progress to build confidence in the change process The key is managing the human side of change by communicating well, gaining input from those impacted, supporting adaptation, and addressing concerns
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Defines change as a shift from known to unknown. Change can be planned or unplanned, marking a continuous organizational process.
Discusses planned/unplanned transformations within organizations, including changes in mission, strategy, operations, and technology.
Covers the two approaches to change: top-down and bottom-up, essential for effective organizational change.
Explains the types and reasons for resistance to change, including misunderstanding and attachment to existing culture.
Illustrates Kodak's journey, innovation failures, and the impact of resistance on its market position and strategies.
Outlines strategies Kodak could have adopted, like breaking up its business and leveraging its distribution network.
Describes Peter Pan Bus Lines' evolution and measures taken in response to security concerns post-9/11.
Distinguishes between active and passive resistance, highlighting different tactics used by employees during change.
Recommendations for overcoming resistance include building trust, open communication, and employee involvement.
Describes Oti-Yeboah Complex's transition from sawmilling to plywood and the employee resistance encountered.
Discusses forms of resistance like strikes and boycotts, and consequences such as production stoppages.
Suggests methods for addressing resistance through education, participation, support, and negotiation.
Details OMV's acquisition of PETROM, emphasizing organizational changes such as new management structures.
Identifies symptoms of resistance including attitude changes and causes like fears and misunderstandings.
Summarizes the necessity of adapting to changes and highlights emotional factors that drive resistance.
Explores various active and passive responses to change, illustrated by examples from different organizations.
Discusses examples of resistance and protests to changes in different international and Indian contexts.
States that manifestations against change are globally similar and explores employee reactions to various changes.
Highlights positive outcomes of change when well-implemented, including improved employee morale and security policies.
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Resistance to organizational change
- 1. resistance to
- 2. Introduction To change isto move from the present to the future, from known information to relatively unknown information. Therefore, change can be defined as ―to make or become different, give or begin to have a different form‖
- 3. Organizational Change • Involvesplanned and unplanned . • Transformation in an organization. • It is the movement from current stage to some future and preferred stage. • It is a continuous process.
- 4. Example of organizational change • Mission changes • Strategic changes • Operational changes (including Structural changes) • Technological changes • Changing the attitudes and behaviors of personnel
- 5. IMPLEMENTING CHANGE Two main approach to change in organization • Top down change • Bottom up change
- 6. Resistance to change Resistanceoccurs when the change is not interpreted well or understood. It is expected and represents different interests within the organization. The manager’s role is to clarify the meaning of change. Resistance is a very real and common issue that is faced by change managers during the process of change.
- 7. Why change isresistance • Dislike of change. • Discomfort with uncertainty. • Perceived negative effects of interests. • Attachment to the organizational culture/identity. • Lack of conviction that change is needed. • Lack of clarity as to what is needed.
- 8. Contd… • Belief thatthe specific change being proposed is inappropriate • Belief that the timing is wrong • Excessive change • Cumulative effects of other changes in one’s life • Reaction to the experience of previous changes • Disagreement with the way the change is being managed
- 9. RESISTANCE TO CHANGE- CASE STUDY ON KODAK Company Profile: • In 1880, after inventing and patenting a dry- plate formula and a machine for preparing large numbers of plates, George Eastman founded the Eastman Kodak Company. • By 1884 Kodak had become a household name after he replaced glass photographic plates with a roll of film. • The product became user-friendly-―as convenient as the pencil‖
- 10. • Eastman identifiedKodak’s guiding principles as-mass production at low cost, international distribution, extensive advertising, customer focus and growth through continuous research. • With the advent of color technology, the success story continued as the company invested heavily in R&D and by 1963 Kodak had become the industry standard. • Sales increased by launching into new product lines such as cameras and medical imaging and graphical arts.
- 11. • The companyoperates through three segments: The Digital & Film Imaging segment provides consumer- oriented traditional and digital products and photographic services such as film, photofinishing services & supplies and digital cameras. • The Health Group segment provides analogue products that include medical films, chemicals and processing equipment, and services and digital products including PACs, RIS, digital x-ray & output hardware supplies. • The Graphic Communications segment provides inkjet printers, high-speed production.
- 12. Failed Strategies andthe Death of Kodak • Innovation failure • A culture of complacency • Shift to digital • Ignored the trend
- 13. WHAT KODAK SHOULDHAVE DONE • Break up the business and sell of the parts. • Sell the whole print business like a fixed term bond. • License the brand or the technology. • Leverage their distribution network and ignore digital.
- 14. RESISTANCE TO CHANGE:A CASE ON PETER PAN BUS LINES • The company traces its history back to 1933 and since then it has undergone numerous changes, big and small. • Peter Pan Bus Lines has re-evaluated ways to make sure that its passengers and employees are safe and secured.. After the 9/11 bombing, the company intensified its commitment to safety and security.
- 15. POWER POLITCS CONTROL CHANGE
- 17. RESISTANCES FACED: ACTIVE RESISTANCE PASSIVE RESISTANCE • Finding fault • Agreeing verbally but not following through • Ridiculing • Feigning ignorance • Appealing to fear • Withholding information • Manipulating
- 18. OVERCOMING CHANGE: • BuildTrust. • Openly Communicate and Discuss Change. • Involve the Employees. • Provide Rewards and Incentives. • Make sure that the Changes are Reasonable. • Educate the Workforce. • Provide Empathy and Support.
- 19. Case Study: Oti-Yeboah Complex Limited (OYCL) • Oti-Yeboah Complex Limited (OYCL) is situated in Sunyani, and was incorporated as a Limited Liability Company on 31st October, 1986. • Till 2008, it was operating sawmill and producing processed wood products • From 2008 – 2010: from sawmilling to plywood production.
- 20. Changes in • Strategy •Structure • Culture • Technology • Work processes of the organization
- 21. Employee resistance dueto • New roles • Redundancy • Added responsibilities • Fear of unknown and possible loss of job
- 22. Forms of Resistance •Strikes • Boycott • Lockouts because of fear.
- 23. Consequence of resistance •Production stoppages • Paying labour for no job done.
- 24. Suggestion • Education andcommunication • Participation and involvement • Facilitation and support • Negotiation and agreement
- 25. Case Study: Acquisitionof PETROM by OMV • Petrom, the largest oil and gas producer in South Eastern Europe, With activities in the business segments of Exploration and Production, Refining, Marketing as well as Gas, was the market leader in Romania. • In December 2004, the company was acquired by the multinational company OMV Austria. • The company received the position of regional centre for Southeast Europe within OMV Group
- 26. THE ORGANIZATIONAL CHANGE •set up of regional centers for leadership • new management structure formation • centralization of all activities
- 27. Contd… • Close-down unprofitableobjectives • Outsource activities • implement a new ERP system • Reshape the Corporate Center project
- 28. SYMPTOMS OF RESISTANCE •Distinction • Attitude • Signs • Resign or Accept early retirement
- 29. CAUSES OF RESISTANCE •Fears • Different assessments • Misunderstanding and lack of trust • Wrong methods • Inertia and low tolerance for change
- 30. Conclusion ―It isnot the strongest of the species that survives, nor the most intelligent, but the one most responsive to change‖- Charles Darwin ―It’s always going to be continuous improvement. We will never declare victory‖- Richard Clark, CEO of Merck. The natural tendency—a critical survival mechanism—is to avoid similar dangers creates resistance to organizational change. Human emotions loss, anger and fear are the driving forces to resistance.
- 31. Questions arise howdo people respond to change? Active Passive •Arguing •Ignoring •Ridiculing •Non-participating •Blaming •Procrastination •Distorting •Mishandling •Tracking •Pretending •Blocking •Avoiding
- 32. Few examples ofchanges & responses Changes and their effects in overseas organizations. • Thomas Alva Edison was forced to step down by investor Henry Villard in 1893 from Edison’s own company for his adversity to change attitude though he was innovator, entrepreneur, and businessman. • Arcelor-Mittal: M & A, resistance from shareholders. • UK companies are not eager to run their Indian BPO’s and already has started shifting their customer support operations to UK.
- 33. Few examples ofchanges & responses Changes and their effects in Indian organizations. • Political unrest by allies and opposition for diesel prices hike and regulation on LPG cylinder distribution. • FDI in single and multi-brand retail created country wide protest last year, even its going now. • Cancellation of Niyamgiri Bauxite mining project for the safeguard of local tribal people. • TATA Motors shifted their NANO factory to Sanand, Gujarat on the face of resistance by local farmers from Singur, WB, in 2008. • Bank employees went on strike for two days in the month of August ’12 to protest higher management decisions.
- 34. Protest from oppositionsparties against diesel price hike
- 35. Strike by Bankemployees
- 36. Manifestation against changeis more or less same around the World
- 37. Positive effects ofchanges • When good, well known, charming person replaces your peevish boss in the office employees become happy and productivity goes high. • In case of less employees requirement; if the employees are transferred to other functional area under the same organization than lay off by the organization; change is positive for the employees. • If new safety-security policy for the employees is reinforced in the organization employees welcome the change.
- 38. • Question lies here how do the managements try to mitigate these resistance?