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International Journal of Management Excellence
Volume 2 No. 3 February 2014
©TechMind Research, Canada 237 | P a g e
Organizational Change and Dealing with Employees
Resistance
Dr. Fareeha Zafar1, Kanwal Naveed2
1University of Derby-UK, Currently Working at GC University Pakistan, dr.f.zafar@gcu.edu.pk
2Ms in Management Sciences, UET Lahore Pakistan, kanwal161@hotmail.com
Abstract- One of the biggest challenges in implementing change is to cope up with the resistance that evolves during
incorporation of change in organizations. The intensity of resistance depends upon the type of change being introduced and
the way it is being introduced. This article gives a deep insight on organizational change, forces that trigger change,
resistance to change that raises as an outcome and certain ways to deal with this change. The article also provides a
comparative analysis on different approaches towards organizational change (guided, planned and directed) and the causes
of resistance for this change. Overcoming employee resistance to change is a challenge towards effective change
management. ADKAR model can be used as a tool towards effective change management. Leaders and managers are key
contributors towards overcoming resistance.
Keywords- Organizational change; employee’s resistance to change; dealing employees’ resistance and change.
1. INTRODUCTION
The term "change" refers to an important and fundamental
development. Change is a strategic dimension, because it
is "the movement of a company of the current situation to
a desired future situation of the competitiveness [1].
Adapting to change is the key to survival. Organizations
can survive in a dynamic environment as their speed of
learning and change meets to the dynamics of the
environment. Therefore, organizations should prepare for
the creation of complexity to cope up with the complexity
of environment. [2]. As a result of globalization, economic
crises, technological innovation, and information on
availability, more and more troubled and aggressive
business environment often requires organizations to make
changes. [3].Resistance plays a crucial role in the
organization influencing toward greater stability. While
pressures from both external and internal environments
continue to encourage change, resistance is a factor that
can balance these demands against the need for constancy
and stability. [4]
2. ORGANIZATIONAL CHANGE
Change is the one of the most important and difficult
problem with which organizations is dealing. The ability
to change rapidly, efficiently, and almost continually is a
major dilemma for organizations in today‟s rapidly
changing environment. [5]
2.1 Types of Organizational Change
The scale of change may be categorized as wide-ranging,
frame-breaking “transformational change” or small-scale
and slow-shifting in “incremental change" models.
2.1.1 Incremental Change / 1st Order Change
Incremental change/1st order change is generally
categorized by changes in functional processes, including,
communication systems, recognition and reward
programs, and decision-making processes as shown in fig
1&2 in Appedix. 1st order change is considered part of a
continuous process. A low demand for change results in
1st order. [6].Incremental models/1st order of change
suggest that change should be implemented in a gradual
manner ,however ,Waterfield suggest that an incremental
approach to change „will not work‟ and did not deliver the
required scale of change as the focus on re-engineering
and restructuring as ways of implementing change, citing
only small-scale improvements as a result.[7] It includes:
Cost changes: These changes are occur when
organizations attempts to reduce costs in order to improve
efficiency or performance of organizations.
Process changes: These changes are implemented to
improve efficiency or effectiveness of organizational
processes and procedures. [8]
2.1.2 Transformational / Radical Change / 2nd Order
Change
The radical/2nd order change is a multi-dimensional,
multilevel, qualitative, discontinuous change as shown in
fig.1&2 in Appendix. These change involving a
paradigmatic shift in organization. It leads to a new
identity of the considered organization. It is viewed as
deep structural and cultural change .A 2nd order change
occur due to high demand of change. [6].
Different researchers like Kleiner and Corrigan argues
that transformational change/2nd order can be described as
radical, groundbreaking alterations that exhibit a profound
International Journal of Management Excellence
Volume 2 No. 3 February 2014
©TechMind Research, Canada 238 | P a g e
break with accepted patterns of organizational behavior
and operation.[7]. It includes;
Cultural changes: These changes are the least
tangible of all the types of change, but they can be are
the most difficult changes. An organization‟s culture
is its shared set of assumptions values, beliefs, and
thoughts.
Structural changes: In this change the structure of
organization changes. Mergers, acquisitions,
consolidations, and divestiture of operating units are
all examples of attempts at structural change.[8]
3. FORCES OF CHANGE
Pressure from the external or internal environment
stimulates change. Due to globalized economy more
hazards and more opportunities are creating for everyone
and to compete, prospers and for survival, it forces firms
to make dramatic improvements. A set of broad and
powerful forces driven the globalization like
Technology changes
International economic integration
Domestic market maturation
Worldwide Communism
No one is immune to these forces. Globalization puts the
more competition on organization with increased speed.
Due to technological advancements more communications
systems are developed that connect the people globally.
Maturation and integration of markets imports and exports
increases. More countries linked to capitalist system. The
following fig.3 showed the economic and social forces that
drive the need of major change in organizations. [10]
4. CONCEPTUALIZING DIFFERENT
APPROACHES TO CHANGE
There are three interrelated approaches that can be used to
implement change in organizations .The table no.1 in
Appendix shows the details of task of each approach about
how the change would implement in organization, what
steps are taken by the change maker, the hierarchical level
in each process, the role of leader and the pace of change
in each approach.
Directed change: This approach driven from the top
of the organization and relies on authority, persuasion
and compliance. It is a tightly constrained process.
Planned change: It is a very popular approach to
change management, it may arise from any level in
the organization but ultimately is sponsored by the
top.it is a flexible and participative approach.
Guided Changing: Guided change is very different
approach that is use to implement change. It is an
emergent process that can start at any location within
the organization. It shows the commitment of
employee‟s and their contributions to the purpose of
the organization. [10]
5. EMPLOYEE´S RESISTANCE TO
ORGANIZATIONAL CHANGE
Resistance is expected in every change process and
considered natural part of it. Resistance occurs as the
organizations going from the known to the unknown. Due
to employee resistance many large-scale corporate change
programs are failed. [11]. Previous studies and researches
shown that all business gets many benefits from a change
that will be derived through people, not through a network
of business processes and technologies, companies are still
not addressing the impacts of change on their employees.
Furthermore many researches have indicated that the
change associate with an initiative or project
implementation will impact how stakeholders perceive
their role, which has a direct correlation to their
productivity, as shown in the figure 4. In the early stages
of any business change whether it is large or small, people
form initial expectations about what the benefits of change
will be for the organization as a whole. Then they begin to
ask how this change will impact their work group or them
and what benefits they can get from this change. This is a
crucial stage. If the leaders fail to answer their questions
their productivity will begin to spiral downward. The lack
of information will cause them to perceive the change in
their own way thus creating barriers in the implementation
of change .If their questions are addressed effectively and
their perceptions are well managed then the productivity
begins to increase as indicated by the dashed line in the
Change Management Opportunity Curve. [12].
6. REASONS /CAUSES OF RESISTANCE
TO CHANGE
It is very difficult to identify the reasons for the resistance
because resistance to change can take many forms .[13]
Despite the fact that change is implemented for positive
reasons like adapting to volatile environment conditions
and remaining competitive, organization members often
react to change efforts negatively and resist change. [14]
The following are the common reasons for resistance to
change within organizations and are the cause of failure of
many projects as shown in figure 5 in Appendix.
Lack of communication
Lack of communication is the major cause of resistance in
organizations because employees are not communicated
properly why change is implement in organization, how it
International Journal of Management Excellence
Volume 2 No. 3 February 2014
©TechMind Research, Canada 239 | P a g e
will work, what approaches will use. Due to lack of
communication, employees start perceiving that change
will change their status quo. 20 % project fails due to lack
of communication.
Unaware of change objectives
When the employees are unaware about the change
objectives or management fails to define the objectives of
change, they start to resist.17% part of project failure is
due to unawareness of employees with change objectives.
Knowledge and skill obsolescence
Employees resist the change when they have not sufficient
knowledge or skill for the change implementation. They
have unfamiliar about the technical issue of the change or
have no experience about the scope of change and
complexity due to which projects fails to deliver its
desirable results.
Organizational structure
Employees resist the change due to unsupportive
organizational structure and poor management problems.
Management fails to define the hierarchy level in
organization for change implementation. Poor
management problem is the major reason of project
failure.
Limited resources
Organizations not having available resources prefer to
maintain their status quo since change requires resources
like capital and people having appropriate skills and time.
Inadequate resources may lead to abandon the desired
changes. [15] [16]
7. OVERCOMING EMPLOYEES
RESISTANCE TO CHANGE
There are numbers of way through which resistance can be
managed or overcome.
7.1 Building Change Capacity
Change capacity is the ability of an organization to change
not just once, but as a normal course of events in response
to the internal and external shifts. Change readiness is the
ability to implement a specific change. It is different from
change capacity. Building organizational change capacity
requires focused intervention at the three different levels.
Micro level: At this level, understanding and acceptance
of different approaches to change are developed and
enhancing willingness and ability to change. Different
actions like establish change agent networks to share best
practices, tools and insights about changing ,select, hire,
evaluate and reward people based on their ability to thrive
on change are taken as shown in table 2.
Mesco level: At this level, organizations creating a change
facilitative infrastructure, providing appropriate resources
and budget to implement change. Different actions are
taken as shown in table 2.
Macro level: At this level, leaders build a facilitative
culture, ongoing strategizing levels of the organization. As
shown in table, actions like emphasize learning and
information sharing, valuing alternative viewpoints,
stakeholder orientation and creating a shared purpose are
taken. [17]
7.2 Leaders And Managers Competence
Leaders play a very vital role in change process. Leaders
create a vision of the future and then develop a logical
strategy about how to implement change for making it a
reality. They also motivate people so that the pursue the
vision, achieve the target. Managers, on the other hand,
have the job of monitoring tasks so that complex tasks run
smoothly. They have to work out the implementation
details, round up the required resources, and keep
employee energy channeled in the right direction. Leaders
create a vision and plan that extending the train tracks into
new directions managers get the tracks built and make sure
that the trains run on time. [18]. Change implementation is
more common in every organization. Leaders play an
important role in setting an example for all those values,
behaviors and considerations expected from employees.
Leaders should have different competence to tackle with
change and its successful implementation in organization
and to help employees in their resistance phase as shown
in figure 6. Leaders create an environment that helps the
employees to implement change in organization in a way
that results not only in better job performance but also in
general understanding and satisfaction.[19]
7.3 Communication and Perceived Organizational
Change
The major problem in unsuccessful change is a lack of
communication. Researches show that many companies
fail to keep managers and employees informed about how
changes are to implement in their organizations. [21]
Organization‟s new mission and vision is seldom
communicated in an effective and satisfactory manner.
Communication with employees should be carried out in
every phase of change to reduce resistance. Keeping
employees informed about the progress of change is
necessary to make the transition smooth. [22]
7.4 Participation And Involvement
Participation means to allow employees to give their input
during the process of organizational change. Participation
means that both managers and employees are willing to
share things with each other like decision making process
and responsibilities for these decisions. Allowing people
to participate in the early diagnosis of problems, the
International Journal of Management Excellence
Volume 2 No. 3 February 2014
©TechMind Research, Canada 240 | P a g e
design of the solution, planning the implementation, or the
actual execution helps motivate constructive behavior
during the transition phase. Participation not only
improved responsiveness to change, but also quality
improvement, job satisfaction and commitment among
employees, and job performance and productivity. [23]
7.5 Training And Perceived Organizational Change
Training relates to the technical aspects of change and
helps ensure that employees have acquired the necessary
skills to carry out new tasks and convey new values,
frameworks, and approaches .Training can also increase
employees‟ confidence in dealing with challenges and
changes, and smoothly performing new tasks or adapting
to a new environment. Training is a contributor to
successful change efforts. [23]
8. ADKAR A TOOL FOR MANAGING
EMPLOYEE’S RESISTANCE
ADKAR model can be used to identify gaps in our change
management process and to provide effective coaching for
our employees. The ADKAR model can be used to:
diagnose employee resistance to change
help employees transition through the change process
create a successful action plan for personal and
professional advancement during change
develop a change management plan for your
employees
The ADKAR model has the ability to identify why
changes are not working and help you take the necessary
steps to make the change successful. This make us able to
break down the change into parts, understand where the
change is failing and address that impact point. Effective
management of the people dimension of change requires
managing five key goals that form the basis of the
ADKAR model:
Awareness of the need to change
Desire to participate and support the change
Knowledge of how to change (and what the change
looks like)
Ability to implement the change on a day-to-day basis
Reinforcement to keep the change in place.[24]
9. CONCLUSION
In context of the review of literature discussed above, it is
justified that organizational change is a key driver behind
employee resistance towards change. Incremental changes
are easier to trigger as compared to radical changes that
require a rigorous transformation in culture and structure.
The three main approaches towards change (planned,
guided and directed) have their respective pros and cons.
In comparison, because planned changes are flexible,
participative, go slow and have a clear road map, they can
be more effective. Lack of communication, unsupportive
organizational structure, knowledge or skill obsolescence,
and limited resources are the some reasons due to which
employees resist change The resistance to change can be
overcome through building change capacity. Building
organizational change capacity requires focused
intervention at micro, meso and macro levels. The
implementation of organizational change is triggered
through leaders and managers of the organization.
ADKAR is the key tool used to manage the employee
resistance to change. Overall the paper provides a critical
review of literature to trigger a successful organizational
change.
10. REFERENCES
[1] Hill, C., Jones, G. (2001). Strategic Management,
pg486. Houghton Mifflin, Boston.
[2] Gareis ,R .(2010), “ changes of organizations by
projects” ,International Journal Of Project Management,
Vol.28, pg.317-327 .
[3] Chiang, C.F. (2010),”perceived organizational
change in the hotel industry an implication of change
schema”, International journal Of Hospitality
Management, Vol 29,pg.157-167
[4] Waddell ,N. and Sohal, A.(1998),” Resistance: a
constructive tool for change management”, Management
Decision, Vol 36 No.6,pg 543-548
[5] Lorenzi ,N.M and Riley,R.T.(2003),”
Organizational issues=change”, International Journal of
Medical Informatics ,Vol 69 ,pg197-203
[6] Levy, A., Merry, U., (1986). “Organizational
Transformation – Approaches, Strategies, and Theories”,
Greenwood Publishing Group, New York.
[7] Osborne, S.P and Brown.(2005).” Managing
Change and Innovation in Public Service Organizations”
Taylor & Francis e-Library,1st edition, pg 91-92
[8] Helms ,M.M. (2006).” Encyclopedia of
Management”, Thomson Gale,5th edition, pg 520-521
[9] Dawson, P. (2003).” Reshaping Change: A
Processual Perspective”. London: Routledge
[10] Kotter ,J.P.(2012)” Leading Change”, Harvard
Business School Review,pg18-19
[11] Cawsey, T. & Deszca, G. (2007). Toolkit for
organizational change. Thousand Oaks, CA: Sage.
[12] Bovey,W.H and Hede.A. (2001).” Resistance to
organizational change: the role of defence mechanisms”,
Journal of Managerial Psychology, Vol 16, No. 7, 2001,
pG. 534-548.
International Journal of Management Excellence
Volume 2 No. 3 February 2014
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[13] Burke, W. W. (2008). “Organization change:
Theory and practice”. London: Sage.
[14] Boohene, R. & Williams A. A. (2012).
“Resistance to organizational change: A case study of Oti
Yeboah Complex Limited”. International Business and
Management, Vol 4(1), pg 135-145
[15] Lunenburg, F. C. & Ornstein, A. C. (2008).
“Educational administration: Concepts and practices”.
Belmont, CA: Wadsworth
[16] Mullins, L. J. (2005). “Management and
organisational behavior”. Harlow, England ; New York :
Prentice Hall/Financial Times.
[17] Buono,A.F.& Kerber,K.W (2009). “Building
Organizational Change Capacity” Journal of Management
[18] “Managing Change And Transition”.(2003),
HARVARD BUSINESS SCHOOL PRESS
[19] Pagon. M, Banutai. E & Bizjak. U (2008),
“Leadership competencies for successful change
management, a preliminary study report”, University of
Maribor, Slovenia, pg 1-25
[20] Abbas ,W&, Asghar,I.(2010).“The Role Of
Leadership In Organizational Change”, university of
Gavle, pg . 21
[21] “Overcoming Resistance to Organizational
Change Initiatives”.(2008).Aric hall, pg 2-3
[22] Fairfield-Sonn, J.W., Ogilvie, J.R., De l Vecchio,
G.A., (2002). “Mergers, acquisitions and long-term
employee attitudes”. Journal of Business and Economic
Studies Vol 8, no 2, pg 1–16.
[23] Fenton- O‟Creevy, M. (1998).” Employee
involvement and the middle manager: evidence for a
survey of organizations”. Journal of Organizational
Behavior, Vol 19
APPENDIX
Figure 1: Types of Organizational Changes
Source: Levy, A., Merry, U., (1986). “Organizational Transformation – Approaches, Strategies, and Theories”, Greenwood
Publishing Group, New York
International Journal of Management Excellence
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©TechMind Research, Canada 242 | P a g e
Figure 2: Types of Organizational Change
Source: Dawson, P. (2003).” Reshaping Change: A Processual Perspective”. London: Routledge. [9]
Figure 3: Forces of Change
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Source: Kotter, J.P. (2012)” Leading Change”, Harvard Business School Review, pg18-19
Figure 4: Change Management opportunity Curve
Source: “Overcoming Employees Resistance to Change”, pg. 1
Figure 5: Causes of Resistance
Lack of
communication 17%
Unaware Of Change
Objectives 17%
Organizational Structure
32%
Limited Resources
14%
Knowledge &Skill
Obsolescence 17%
International Journal of Management Excellence
Volume 2 No. 3 February 2014
©TechMind Research, Canada 244 | P a g e
Figure 6: Leadership Competences for Effective Change Management
Source: Abbas ,W&, Asghar,I.(2010).“The Role Of Leadership In Organizational Change”, university of Gavle, pg . 21. [20]
Figure No 7:ADKAR model
Source: Change Management Learning Center pg 1
Table 1 : Different Approaches to Changes
DIMENSIONS
DIRECTED
CHANGE
PLANNED
CHANGE
GUIDED
CHANGING
Character
Top-down, hierarchical
Linear, “road map”
Iterative spiral
Change Goals (Ends)
Tightly defined,
unchanging goal
Clear goal, with some
modification as needed
Loosely defined
direction
Change Process (Means)
Tightly constrained
Flexible, participative
Experimental,
improvisation
International Journal of Management Excellence
Volume 2 No. 3 February 2014
©TechMind Research, Canada 245 | P a g e
Change Leadership
(Role)
Tell, order, command
Devise a plan to accomplish
the goal
Point the way, guide and
watch over, instruct
Changemaker Dynamics
Persuasion
Influence, cooperation
Collaboration
Pace of Change
Urgent, fast, “just do it”
Go slow during planning to
go fast during
implementation
Act quickly, improvise,
learn, react and continue
to iterate
Table No 2: Building Change Capacity
LEVEL
FOCUS
ILLUSTRATIVE ACTIONS
Micro
Developing an understanding and
acceptance of different change
approaches & Enhancing willingness
and ability to change
Adopt a common, enterprise-wide framework for
thinking and talking about change
Develop widespread knowledge about different
approaches to change and when each is appropriate
Provide change coaching and consulting services
Establish change agent networks to share best
practices, tools and insights about changing
Select, hire, evaluate and reward people based on their
ability to thrive on change
Form diverse teams to encourage innovation and
creativity
Develop, reward and promote supervisors and
managers who enable change
Create a climate of trust, honesty, and transparency
Meso
Building a change-supportive
Infrastructure & Providing appropriate
resources
Frequent meetings to identify and critically assess
opportunities
Encourage low-cost experiments with new ideas
Creation of systems to share knowledge, information
and learning across boundaries
Responsive and proactive training and education
Devote resources to continually scanning the
environment for new idea
Encourage external contact with stakeholders,
especially with customers
Shelter breakthroughs with their own budgets and
people
Macro
Creating a change-facilitative
Culture & Ensuring ongoing
strategizing
Emphasize learning and information sharing
Valuing alternative viewpoints and tolerance for
mistakes in the interest of learning
Stakeholder orientation
Creating a shared purpose
Thinking dynamically and systemically so that
strategies can change quickly
Examining future markets, competitors, and
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©TechMind Research, Canada 246 | P a g e
opportunities
Factoring future scenarios into today‟s decisions
Creating and communicating a change friendly