37 Organisational Change-II

Prof.Mahabir Narwal

1. Learning Objectives:

Basic objectives of this module are:

To understand the resistance to change

To understand the causes of resistance to change To know overcoming resistance to change

To know the theories of change

2. Introduction

Earlier we have discussed the nature, meaning, importance and objectives of organisational change. In this chapter we will discuss about the change options, resistance to change, overcoming resistance to change, theories of change, etc.

3. Change Options

Change agents are those who bring change in the organisations. They suggest the ways and means of change in different areas of organisation. Thus, this is the responsibility of the change agent to bring change in the organisation. The change agent can change four subject matter.  These are as follows:

Physical setting. Under physical setting the change agent focus on plant layout, tool arrangement, equipment placement and space configuration interior design. While the change  occurring  there  is  need  of  formal  interaction  and  social  needs.  For  the organisational development these changes are helpful. Effectiveness of the changes is increased by smoothness of the flow.

Technology. Technology change is also important in change management. Examples of technology innovation are work process and new equipment. In the 21st century computerization and automation are the common change processes. New techniques and the tools are recommended by the change agent. Technology invented the handling of machines and equipments efficiently.

Structure. In this it is defined that how the tasks of the organisation are grouped, coordinated and formally divided. The structure should be changed according to the environmental change only then new techniques, change in plant layout and attitudinal change can succeed. In the organisation the change agents can modify the structural design or they can alter the key elements. The change agents can modify the compensation system, work schedule and redesigning jobs in the organisation.

People. Through problem solving, communication and decision making the behaviour and attitude of the organisational members can be changed. To work effectively with each  other  in  the  organisation  the  change  agents  helps  the  group  members  and individuals. For changing the environment the change agents help the employees. If employees have positive attitude towards the change, it can be fruitful for the employees and it can be a reason for the success of the employees.

To increase the performance of the individual and effectiveness of the organisation are the objectives of change agent. Change agents play many roles, like: professionally qualified friend, counsellor, case analyst and a researcher. In the organisation under the change agents’ direction the changes are implemented.

4. Resistance to Change

Resistance to change is the action taken by individuals and groups when they perceive that a change that is occurring as a threat to them. In its usual description it refers to change within organizations, although it is also found elsewhere in other forms. Resistance is the equivalent of objections in sales and disagreement in general discussions. Resistance may take many forms, including active or passive, individual or organized, aggressive or timid.

There are many causes of resistance to change in an organisation. Followings are the main reasons of resistance to change:

Individual Resistance

Group Resistance

Organisation Resistance

Let us discuss all these causes in detail.

5.1. Individual Resistance

Individual sources of resistance to change reside in basic human characteristics such as perceptions, personalities, and needs.

These are the main reasons why individuals may resist change.

Economic Factors: The followings are the economic reasons for the resistance to change:

Fear of unemployment: Worker may fear that the change will lead to technological unemployment. Generally, new technology is associated with the education of labour intake and therefore people will resist a change that will affect their employment.

Economic insecurity:  Economic  insecurity  is  another  cause  of  individual  resistance  to change.  People think  that  change in organisation structure and  policies will  lower their income. Changes in job tasks or established work routines can also arouse economic fears if people are concerned that they will not be able to perform the new tasks, especially when pay is closely tied to productivity.

Fear of demotion: Worker may fear that they will be demoted if they do not acquire the skills required for the new jobs.

Psychological factor: The main psychological factors for opposing the change are as follow:

Fear of monotony: Worker may have the fear that technical change encourages the specialization and it makes the work boring. They think that new jobs will bring boredom and monotony as result of specialization brought by the new technology. So employees oppose the change.

Fear of unknown: Organizational change in many cases lead to uncertainty. It is normal that people feel fear of uncertainty. When employees feel uncertainty in a process of transformation, they think that changes are something dangerous. This uncertainty affects organizational members to resist the proposed change. For example, the introduction of word processors means that departmental secretaries will have to learn to operate these new pieces of equipment, some of the secretaries may fear that they will be unable to do so. They may, therefore, develop a negative attitude toward working with word processors or behave dysfunctionally if required to use them.

Burden of training: Employees may fear that change in methods of work will increase burden of training. Because they will have to attend training program to learn the use of new machinery. They may resist the change because harder work will be required to learn and adapt to new ideas and they do not want to take the trouble in learning new things. So employees oppose the change.

Fear of Ego defensiveness: It is another psychological factor which resist change in the organisation. Sometimes, a change may affect the ego of the people. They may resist change in order to defend their ego.

Lack of communication: Poor communication always creates hurdle in accepting change. The possibility of resistance to change will be less if each employee gets opportunity to participate in change process. Due to lack of communication, people resist change.

Habits: All human beings are creature of habit. When people become habitual of any task, they become specialist of that particular task and can perform it easily. If changes take place in the organisation, it becomes difficult for employees to perform the new task easily because of not performing the task earlier. They have to attend training program to perform new job. This tendency of the employees becomes a source of resistance.

Social factors: Employees form social group in the organisation for the satisfaction of their social needs. Because every individual has social needs like friendship and belongingness. Employees may fear that they have to make new adjustments if change takes place. There is generally dislike for new adjustments. Hence, employees resist change because of social needs.

5.2. Group resistance

Changes have impact on informal groups in the organisation. Breaking up a close knit work group or changing social relationship can provoke a great deal of resistance. The main reason why the groups resist change is that they fear that their cohesiveness or existence is threatened by it. This is particularly true in case of groups which are very cohesive, where people have a very strong sense of belongingness to the group and where the group members consider their group as superior to the other groups.

5.3. Organisational resistance

Organisational resistance means that the change is resisted at the level of the organisation itself. Organizations, by their very nature, are conservative. They actively resist change. Government agencies want to continue doing what they have been doing for a number of years even though there is a need for the changes in their service. Most of the educational institutions are using essentially the same teaching technologies which they were using fifty years ago. The major reasons for organisational resistance are as follow:

Group inertia: Sometime, individuals resist change because the group to which they belong resists it. Even if individuals want to change their behavior, group norms may act as a constraint. Generally the members of a group are influenced by the codes, patterns and attitudes of the group. Resistance to rationalization collectively by labour in India is an example of group resistance.

Structure Inertia: Organizations have built-in mechanisms to produce stability. For example, the selection process systematically selects certain people in and certain people out. Training and other socialization techniques reinforce specific role requirements and skills. Formalization provides job descriptions, rules, and procedures for employees to follow. The people who are hired into an organization are chosen for fit; they are then shaped and directed to behave in certain ways. When an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability.

Threat to power: Managers resist change because they think that change is a threat to their power. The introduction of participative decision making or self managed work teams is the kind of change which is often seen as threatening by the middle and top level management. In addition they will never like to take the steps which will strengthen the position of trade unions.

Threat to specialization: Changes in organizational patterns may threaten the expertise of specialized groups. The introduction of decentralized personal computers, which allow managers to gain access to information directly from a company’s mainframe, is an Example of a change that was strongly resisted by many information systems departments in the early 1980s.

Reallocation of resources. With organizational changes, some groups, departments or sectors in the organization can receive more resources why other will lose. So, this will bring resistance from the individuals, groups or departments who will lose some of their currently available resources.

Sunk costs: Most of organisations have sunk cost involved in various assets. The assets are purchased for a specific time period. The heavy capital which is already invested in the fixed assets or the amount which has already been spent on the training of the employees will go waste if the change is introduced.

5. Overcoming resistance to change

If you want to get success in the long run, then it is important to overcome resistance to change. With resistance, organisation cannot survive and meet the competitors. Below are given some ways and means by which we can overcome resistance to change upto a greater extent:

Communication and Education: Poor communication is one of the main causes of resistance to change. Employees may resist change because partial information is given to them. If the employees receive the complete information resistance will be minimized. Communication and education play a significant role to get change accepted. Proper information should be given to employees regarding the reason and necessity of change in order to reduce the possibility of resistance. This will help persuade employees and as a result of this, they will accept change.

Participation: Participation creates interest of employees in change. Participation provides opportunity to employees to communicate with top management and they can give suggestions. Employee’s participation in decision making process will reduce resistance to change. They feel secure in a changing situation. Employees need to participate in a protected from surprise and perceive that their ideas/suggestions are wanted. But it is a time consuming method as well as it may be a poor solution.

Facilitation and support: Change agents can offer support efforts and facilitation to reduce resistance. He should provide encouragement, training, counseling, short paid leave of absence and resources to help those affected by the change, which facilitate adjustment to new requirements. The drawback of this method is that it is expensive and time consuming method.

Negotiation: Negotiation method is used when change is harmful for particular group of employees. In this method efforts are made to maintain balance in the costs and profits. If people are suffering losses due to change, management should give equal benefits to the sufferer party. As a result of negotiation change can be implemented successfully. People easily accept change otherwise they resist change.

Coercion: Coercion is one of the methods of overcoming resistance. Coercion means the action or practice of persuading someone to do something by using force or threats. Managers may use authority and the threat of negative incentive if employees do not accept proposed change. For example, coercion is threats of transfer, loss of promotions, negative performance evaluations, pay cut and a poor letter of recommendation.

Leadership: A good leader has power to change the mental set-up of employees who resist change. Sometimes, people resist change because they do not like the change agent. Therefore, a change agent should have the qualities of a good leader. A good leader can exert emotional pressure on employees to bring about desired change and he can enjoy the confidence of employees. Employees accept change without opposing it.

Timing of change: Timing of implementing change plays important role in overcoming resistance. If the change is introduced at right time, then there will be less chances of resistance of change and vice-versa. For example, if a company is earning good profits and it is properly distributed among employees as bonus and other incentive. It is the right time for a company to implement change. In this situation people will not resist change.

6. Theories of Change

The theories serve as a testimony to the fact that change is a real phenomenon. It can be observed and analyzed  through    various   steps   or    phases.         Some   theories   of   change   are    as    follow:

7.1. Lewin Three Step Change Theory

Kurt Lewin introduced the three-step change model. This social scientist views behavior as a dynamic balance of forces working in opposing directions. The employees change themselves because of driving forces, and these forces thrust employees in the required direction. On the other hand the employees are thrust in the dissimilar direction by the restraining forces. Therefore, these forces must be analyzed and Lewin’s three-step model can help to shift the balance in the direction of the planned change.

1. Unfreezing: To change the behavior there is need to change the current situation; this is the very first step in changing behavior according to Lewin. For changing an individual, there is requirement of unfreezing. It can be attain by three methods. Firstly, if there are more driving forces, then there is change the behavior from current situation. Second, minimizing the forces which restrain the movement from existing situation and finally third method is combining above two methods. Problem recognition activities, solutions related to brainstorming within a group, trust building, motivating individuals for change, etc. are the some activities which can be the reason for the change.

2. Changing: Movement is the second step according to Lewin for changing behavior. In this, to the new equilibrium level, the target is move. There are three actions which are included in the movement- A. For the relevant and required information working together in a group B. The supporting, respected leaders connection with the views of group who favour changes, C. encouraging employees to see the problem from a different perspective and solving them with the enthusiasm.

3. Refreezing: Lewin’s third step for change model is refreezing. This is the step after the change has been executed and it is important to sustain the change. If there is no focus on this step, there are possibilities that the employees will revert to their historic behavior. If this will happen, the change in an organization or in an individual will last for few days only. It is the combination of old and new values. By the restraining forces and driving forces, the new level of equilibrium will be maintained and this is only purpose of this step. through formal and informal way, the procedure and policies should be like according to new patterns, this is the step through which we may implement the third step of Lewin.

7.2. Lippet’s Phase of Change Theory

Lewin’s three-step change theory was extended by Watson, Lippitt and Westley. The theory of Westley, Lippitt and Watson was not on the change evolution but it was about responsibility and role of the change and it was a seven step theory. Throughout the process the important information is exchanged continuously. Following are the seven steps-

Identifying the problem.

For change access the motivation and capacity.

Accessing change agent’s motivation and resources. In this we include the power, stamina and commitment to change of the change agent.

In the fourth step, strategies and action plans are developed. In this step, progressive change objects are chosen.

To clear the expectations from the change agent, the role is clearly understood and selected by the all parties. For example- expert and facilitators are the roles.

In change process, coordination, feedback and communication are the important elements. The change should be maintained.

Ending the role of change agent. The role of the change agent should be terminating after a certain period of time. When the change becomes the routine in a firm or organization, the change agent role is finished.

Changes are more likely to be fixed if they develop to neighboring systems or to subparts of the system immediately affected. Changes are better rooted- mentioned by Watson, Lippitt, and Westley. Two examples are: the individual meets other problems in a similar way, several businesses adopt the same innovation, or the problem spreads to other departments of the same business. The more widespread imitation becomes, the more the behavior is regarded as normal.

7.3. Social Cognitive Theory

Individuals can learn by direct experiences, human dialogue and interaction, and observation. Social learning theory, later renamed social cognitive theory. There should be self-efficiency in the person. Personal factors, influence of environment and behavior attributes are some reasons for change in behavior. They must believe in their capability to perform the behavior and they must perceive that there is an incentive to do so.

Social learning theory is an extension of operant conditioning. Behavior is the result for the action. The negative expectations can be balanced by the expectation of positive behavior, according to social learning theory. The consequences or outcomes may be classified as having immediate benefits such as feeling energized or long-term benefits such as experiencing improvements in cardiovascular health. The most important factor that determines behavior change of an individual is self-efficiency. The person perceptions or expectations to perform behavior are the outcomes which are expected. Self- efficacy can be increased in several ways. Three ways to increase self-efficacy include:

Provide clear instructions.

Provide the opportunity for skill development or training. Model the desired behavior.

7.4. The Theory of Reasoned Action and planned Behavior

How much a person intentionally wants to execute the behavior, it is stated in the reasoned action theory that measures the individual performance? There are two major factors that shape the individual’s attention.

First, the individual’s attitude towards the desired behavior must be positive for change to occur. Second, the influence of the person’s social environment or subjective norm is another factor that shapes the individual’s attention. This includes the beliefs of their peers and what they believe the individual should do as well as the individual’s motivation to comply with the opinions of their peers.

The theory of planned behavior includes the concept of perceived control over the opportunities, resources, and skills necessary to perform the desired behavior. The concept of perceived behavioral control is similar to the concept of self-efficacy. A vital aspect of the behavioral change process is perceived behavioral control over opportunities, resources, and skills necessary to perform a behavior.

Summary

Change is inevitable in any of the organisation. However, resistance to change is also human nature. There are many reasons to resistance to change viz. individual, group, and organisational resistance. We have to find out the amicable solutions to all these reasons so that we can bring desired change in an organisation. Various theories of organisational change i.e. Lewin Three Step Change Theory, Lippet’s Phase of Change Theory, Social Cognitive Theory, The Theory of Reasoned Action and planned Behaviour can help us bring desired change.