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Why do individuals and organisations resist change? To what

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Luke Turner

on 9 May 2014

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Transcript of Why do individuals and organisations resist change? To what

Approaches to Change
The type of organisation needs to be identified in order to see how change will affect the business and if there will be resistance.

Changes in Organisation
Case Study -

-Individuals resist change due to job security, fear of unknown.
-Senior and Fleming - lack capability
-Resistance is hard to overcome as shown by Kotter's research
-Resistance can be overcome, through Planned Approach and Clear Vision. EG - ASDA

Why do individuals and organisations resist change?
Why do individuals and organisations resist change? To what extent do you believe resistance can be effectively overcome?
1. Joey - Introduction
2. Emily - Resists of changes
3. Faith - Approaches of changes
4. Joe and Barnie - How to overcome this
5. Luke - Case study
6. Conclusion

Resistance to change by the organisation could include:

Why do individuals and organisations resist change?
Paul Strebel (professor and director of the Change Program for international manager at IMD):
“Although each company’s particular circumstance account for some of the problems, the widespread difficulties have at least one common root: Managers and employees view change differently”

Resistance to change by the individual could include:

1. Disruption to routines or habit
2. A misunderstanding for the need for change in the organisation
3. People worrying about job security or the economic implications
4. A change to informal and social ties
5. A change in the values of the new employees
6. Fear of the unknown

1. Attachments to past contracts or agreements with government agencies
2. Investment in resources
3. A lack of capability to change due to a lack of factors of production (Senior and Fleming, 2006: 286)
4. Maintaining stability
5. Threats to power or

Naïve Approach to Change
Management view the implementation of change as clean and simplistic.

Fails to acknowledge the social aspects of change.

Disregards the fact that change is perceived differently by different people.

Planned Approach to Change
Management recognise the fact that change is complex.

Psychological techniques are used to deal with social aspects.

Change requires carefully planned steps.

Emergent Approach to Change
Processual Approach
Recognises change as an ‘untidy cocktail’ of individual perceptions and political struggles.(Burnes, 2004.)
Anxiety and fear of change become actors in resistance.
Systematic Approach
Recognises that change in one area can have knock-on effects in different areas.
Sectors are interdependent.

Building Blocks
Kotter’s 8 step change model
John P Kotter
Studied over 100 companies over a 10 year period
Found that very few companies experienced real long term successful change
Devised an 8 step model for change (Robbins, S.P. & Judge, T.A, 2013)

Step 1

Over 50% of the change programmes Kotter studied failed in this stage

Good business results vs bad business results

The Status-Quo cannot be maintained.

The use of outside sources

Step 2

Head of the organisation has to be an active supporter

Must be powerful in terms of titles, expertise, reputations and relationships.

Operates outside of the normal hierarchy

Step 3

Clarifies the direction in which an organisation needs to move

Clear and universally compatible

Short and interesting

Step 4
Credible communication, and a lot of it.

“Walk the talk” – actions speak louder than words.

The use of HR

Kotter’s 8 step change model
Step 5
Remove Obstacles
Barriers to change should be removed as quickly as possible
New approaches should be encouraged and rewarded
Leaders should be employed specifically to allow change to happen easily.

Institutionalising change
Stage 6
Creating Short Term Visions
Planning improvements
Implementing those improvements
Rewarding those involved with the improvements
Stage 7
Continuing to Implement Change
Managers must continue to administer change and not allow complacency
Developing employees to promote change and carry on vision of change.
Renewing the process of change

Step 8
Changes should become part of the culture
Employees must be shown how their new attitude has improved performance
New management should represent new approach to change

By 1990 Asda saw a huge reduction in sales volumes as well as increasing debts. Archie Norman was invited to become Chief Executive of the Superstore in 1991 and underwent a huge change in the organization
Problems Facing Asda
Archie Norman made clear what problems faced Asda
Reduction in customers
Lack of direction
Lack of employee moral
Collapsed stock prices
Workforce demoralized (Woodman, R.M. 2009)
Changes Made
Customer experienced improved, brought 30% more staff in first year.
Turnover increased from from £4,468m in 1991 to £5,285m in 1995.
By 1999 the business was sold to Walmart for £6.5 billion, giving shareholders 1,000pc return (Telegraph, 2009)
New Trading Strategy - virtuous cirlce
New Financial Strategy
Change Recruitment
Create a connection between management and staff
Create Departmental goals
Aspire 'Inform and Involve' culture
Change store ethos - single status company
(Telegraph, 2009)
Understanding common reasons for why people object to change gives managers the opportunity to plan a change strategy to address these factors.
Establishing a Sense of Urgency
Forming a Powerful Guiding Coalition
Creating a Vision
Communicating the Vision
(Woodman, R.W 2009)
(Management Today, 1995)
(King & Lawley, 2013)
(Huczynski, A.A. & Buchanan, D. A, 2013)
deVliet, A.V. Management Today. 1995. UK: ASDA’s OPEN PLAN. [Online]. [Date Accessed: 10/04/2014]. Available at: http://www.managementtoday.co.uk/news/410110/UK-ASDAS-OPEN-PLAN/

Ebrahimi, H. The Telegraph. 2009. Archie Norman: the ex-Asda boss who saves businesses on the shelf. [Online]. [Date Accessed: 04/04/2014]. Available from: http://www.telegraph.co.uk/finance/financetopics/profiles/5734674/Archie-Norman-the-ex-Asda-boss-who-saves-businesses-on-the-shelf.html
Grey, C. 2013. Studying Organizations. (Third Edition). London. Stage Publications
Huczynski, A.A. & Buchanan, D. A. (2013). Organizational Behaviour (8th Edition.) UK. Pearson Education Limited.
King, D and Lawley, S. 2013. Organisational Behaviour. UK. Oxford University Press.
Kotter, P.J. 1995. Leading Change: Why Transformation Efforts Fail. Harvard Business Review.
Robbins, S.P., Judge, T.A. (2013). Organizational Behaviour. (15th Edition). UK. Pearson.
Strebel, P. 1996. ”Why do employees resist change?." Harvard business review 74.3.: 86. [Online]. [Date Accessed: 01/04/2014]. Available from: http://ecampus.nmit.ac.nz/moodle/file.php/4599/Talent/HBR%20-%20Strebel,%20Why%20do%20Employees%20Resist%20Change,%201996.pdf
Woodman, R.W. et al. 2009. Research in Organisational Change and Development. Volume 17. UK. Emerald Group Publishing.
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