Reasons for Resistance:
Individuals and organisations as a whole will always resist change due to a number of varying factors.
Complexity: As an organisation it can be a very complex process in effectively managing change and implementing change. For example if an organisation had to implement changes in their daily business operation’s which they have been using for a number of years it can be very difficult. The company will have to strategically manage their manpower to suit the new changes in their business operations. Managing their manpower could mean increasing or decreasing the number of employees or even training their current employees which will give them the necessary skills to work within the changes of the business operations.
Cost: Cost is a controllable factor which every organisation takes very seriously. For an organisation to implement change effectively it can be a very costly process. If a company was sizing down to control costs due to economic issues they may have to make a number of employees redundant in order to decrease costs. But this will be a costly process for the short term as an organisation may be legally required to pay employees a redundancy package.
Goals of Organisation’s: As with change in the organisations environment the goals and targets of an organisation will be affected. The changes in the business environment may have a negative effect on the goals of a company; it may even stop a company in reaching their targets and deadlines.
Distribution of Power: Changes in the work environment will lead to individuals gaining more power and control. Also with the changes individuals may lose control and power within the organisation. The alteration of power of individuals may not be welcomed by everyone and can also lead to conflict if not managed effectively. The change in power can motivate people but also can de-motivate people at the same time if not balanced correctly.
Effect’s of Resisting Change and Managing Change Effectively
To resist change at an organisation level will ultimately have a negative effect on a business. Change is required to keep up to date with current trends, competition and reach targets. Resisting change to save costs for example might in turn increase costs and reduce profit margins. This will result in companies becoming less profitable and may result in them becoming liquidated as they could not keep up with their costs.
On the other hand managing and implementing change in the business environment effectively may result in particular business operation’s running more sufficiently. Effective change management may also lead to increased team cohesion and can help reduce costs for the organisation. Changes in the business environment could also lead to increased profits and can also help attract an increased number of consumers.
Bp Oil is an organisation that has made erratic changes in their business environment since the Gulf of Mexico disaster in April 2010. Since the disaster Bp has made many changes within their organisation so that they remain a successful organisation. They have sold parts of their company across the globe and have invested millions of pounds in new ventures to capture oil. The structure and goals of the organisation has been altered as well, they have a new CEO and have set aside around 20 Billion pounds to compensate for the Gulf of Mexico spill. Since the oil spill disaster BP have changed their priorities as an organisation one of the main priorities at the moment is deal with the long term damages the oil spill has caused.
Kurt Lewin’s change management model
Kurt Lewin in the 1950’s developed a management model which purely focused on change in the environment of organisations. His management model consisted of three primary stages unfreeze, change and refreeze.
The first stage unfreezing focused on breaking down the core of the organisation. This stage was the most difficult as it broke down the organisation and challenged the way the business was run. The core values and methods of the way work was carried out in the organisation were challenged. Also this stage focused on making everyone aware of the requirement for change and getting everyone to agree that there is a need for change. There will always be staff members that resist change due to a number of influential reasons. But for effective change management breaking down the current system of work is required.
The second stage in Lewins management model was ‘change’. This stage mainly focused in implementing changes in the work environment at an organisational level. This is where all the people at a company are positive about the changes and are willing to work within the new changes. The two most important factors of managing change effectively are time and communication. Employees will need enough time to understand the new changes and will need to feel like they connect to the organisation. Effective communication will help employees understand the new changes and how to work to their best abilities within the new environment.
The third and final stage of Kurt Lewins management model is refreezing. When the changes have taken effect on an organisation and all the employees involved have embraced the new changes the organisation is set to refreeze. The refreezing stage can only occur when all the changes are incorporated within the company and everyone is familiar and positive about the changes. With the new changes it is essential the organisation is stable and can accommodate the new changes.
An example of Kurt Lewin’s management model.
A cube shaped ice requires changing in the shape of a cone. Firstly the cube will need to be unfrozen so it can be changed into the desired shape and then finally refrozen to maintain the desired shape.
Derek S. Pugh
There are four principles of understanding organisational change.
Principle one: Organisation’s are made of structures that have taken immense time and planning to build. They cannot be broken down and restructured at any given time just overnight. To make changes in an organisation will take careful planning, time and effective communication. Everyone within the organisation will have to be taken into account for the new changes to take effect also a relevant space of time must be given for the organisation to ‘digest’ the changes.
Principle two: The reactions to the changes must be understood and balanced to see whether the changes are worth the reactions. All the reactions to the changes should be carefully analysed before the changes are implemented. The changes might mean a cut in the number of jobs, effect on motivation and a change in the methods of working. All the effects of the implementation of new changes must be justified to go ahead with the changes.
Principle three: In an organisation there are three main systems which are the rational, the occupational and the political. It is important all three systems are taken into account when making new changes as with any type of change all three systems will be affected in some way. There is no point in taking into account only two of the systems when making new changes as the system that is left out will be effected anyway. For change to occur in an organisation that is effective and positive for the business it is important to realise that all three systems matter and they should all be taken into account.
Principle four: The people in the organisation must be interested in taking on the new changes. The people that will be interested in the changes within an organisation are those who are successful but are failing in some areas of their work. They will have the confidence to embrace the change and be motivated to work with the new changes. The people that will not be interested in change are those who are not successful, they will not have the confidence to embrace any new change. Also they will have a low motivation level so might struggle with any new changes.
All the principles are essential for effective change implementation within an organisation. The principles help create methods for change and help plan the changes so they are effective.
Conclusion
Change is an issue which makes or breaks organisations. People always tend to resist change unless they are clear of the benefits and are willing to take the extra steps to work with the changes. Effective change management requires meticulous planning and relevant amount of time must be given for an organisation to absorb changes. Organisation’s can be very complex in terms of their structure. Any change to the structure of an organisation can have a negative effect which can cause the organisation to crumble if change is not managed properly. Therefore organisations will always resist change unless change is required in order to maintain the company or take it forward.
References
Internet websites:
Books/ Literature:
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Lewin, K (1958) Group decisions and social changes In G E Swanson: T M Newcomb, and E
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L Hartley (eds) Readings in Social Psychology, New York: Holt, Rhinehart and Winston
Newton, R Managing Change Step by Step: All You Need to Build a Plan and Make it Happen, Great Britian: Prentice Hall
Palmer, B Making Change Work: Practical Tools for Overcoming Human Resistance to Change, Great Britian: Amer Society for Quality
Journal(s)
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Pugh, D S (1978) Understanding and managing organizational change, London Business School Journal, vol 3, no 2, pp 2934