hrm- organization change resistance

TRINITY INSTITUTE OF PROFESSIONAL STUDIES

Sector – 9, Dwarka Institutional Area, New Delhi-75Affiliated Institution of G.G.S.IP.U, Delhi

BBAHRM (17202)

Organization Change Resistance

By: Ratika Malhotra

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Resistance to Change – Kurt Lewin• 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.

• Resistance is the resultant employee's reaction of opposition to organizational change (Keen, 1981; Folger & Skarlicki 1999).

• Resistance to change introduces costs and delays into the change process (Ansoff, 1990).

• Employee resistance is the prime reason why most change does not succeed or get implemented (Egan & Fjermestad, 2005).


Factors in Resistance to Change


Individual ResistanceEconomic Factors (Economic needs e.g. physiological & Job

security)• Job Security: New machine or technique will replace or

degrade them.• Fear of Economic Loss: people feel that they will lose the

portion of their salary. E.g. British Airways.Social Factors (People are part of social group which satisfy

there social need of mutual compatible interaction).• Desire to maintain existing Social Interaction


Individual Resistance• Outside Interference: Change agent as outsider if he belong

to other social class. E.g. change initiated by manager affecting workers.

Psychological Factors (Based on emotions, sentiments and attitude). Wayne H. Bovey, Andrew has identified individual psychology plays a vital role in resistance to change.

• Negative Perceptioni. May be perceived as an instrument for exposing weakness of

people.ii. Change means something is wrong at particular level.• Past Failure


Individual Resistance• Lack of Trust in Change Agent• Fear of Unknowni. Result of change is seen in future which is

uncertain.ii. It creates anxiety and stress and thus they want

to avoid it.• Increasing workloadi. employees except for normal work activities

usually will be loaded with activities of a new change process.


Organization Resistance

• Other than individual & group, organization also is required to adapt with the change.

• REASONS:a.Past Successb.Stability of systemc. Limited Resourcesd.Sunk Cost



• Stability of the System/Bureaucratic inertia: i. Organization have their own mechanisms as a

rules, policies, and procedures. ii. Even though individuals want to change their

behavior these mechanisms in many cases can resist to the proposed changes.



• Resource Limitationi. Every change require resources.(Human,

Capital)ii. It organization is not equipped, change is

difficult.iii. Here organization has to decide whether old

method can be used for new change or not.



• Sunk Costi. It is a cost that has already been incurred and

cannot be recovered.ii. what will happen to organization current assets ?• Past Successi. Success by following a particular set of

management practices makes org rigid to change.


What went wrong with Nokia?

At the end of 2009 Nokia had a clear market leadership in the global smart phone market at 38.6%. By the end of 2014 Nokia is struggling hard not to be nowhere.

https://jonobean.files.wordpress.com/2014/11/screen-shot-2014-11-12-at-23-40-35.png


Reasons:

More of hardware company: i. underestimated the importance of softwareii. engineers were expert at building physical devices. Past Success:i. Earning more than fifty per cent of all the profits in

the mobile-phone industry in 2007, and most of those profits were not coming from smart phones.

ii. Underestimated how important the transition to smart phones would be.


Reasons:

Lack of Innovation:i. Nokia’s Windows phone which came in 2011.ii. high-tech era has taught people to expect

constant innovation.

hrm- organization change resistance

Education