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Organizational Change and Factors that cause Resistance to Change

October 12, 2011  by: rekhas  Points: 12   Category: Others  Earning $0.50   Views: 508

Planned change refers to a change in organizational philosophy or change in goals and implementation of new policies and goals.


Forces of change may arise from organization's internal or external environment or even from individuals themselves. There are two ways to respond to these changes- react to the crisis or plan for the change. Planned change refers to a change in organizational philosophy or change in goals and implementation of new policies and goals.

Factors leading to Organizational Change

Many factors can cause changes in the organization. These are as below-

Nature of Workers

Globalization emphasizes on employing multicultural people in the organizations. Hence, various firms modify policies in order to manage the workers from diverse backgrounds, effectively.

Technology and Change

Organizations are now adopting sophisticated technological means in order to keep up with the tough competition in the market. Replacement of direct managerial control with computerized means leads to wider span of control and flat organization structures.

Economic Factors leading to Change

Fluctuation in interest rates and foreign exchange rates can also cause organizational changes. Fluctuations in economy can also lead to layoffs and loss of jobs.


Organizations constantly need to defend themselves from the pressure of competition. They need to face traditional and new businesses who introduce new products and services in the market. Organizations have to handle competition by using innovative methods and ideas.

Sources of Resistance to Change

Employee resistance to change is a major challenge for all organizations when implementing changes. Employee resistance can be in form of implicit or deferred means. Implicit resistance can occur in form of loss of loyal employees, lack of motivation to work and more errors at work. If the organizations do not deal with such resistances in the early stages, they will become a big hindrance in the later stages of change implementation. Moreover, sources of resistance to change can be both individual and organizational.

Individual Resistance to Change- Some main reasons for individual resistance to change are-

Habit- it becomes a habit for employees to work in the same conditions for long time. Hence, they oppose or resist any new changes or developments in the organization. Moving away from familiar environment can cause resistance to change.

Security- individuals give high priority to safety and security. Hence, change seems like a threat to employees and they will resist them.

Economic Factors- in firms where productivity and wages are interlinked, individuals oppose changes due to fear that they may fail in performance of new tasks efficiently. Hence, it may decrease productivity for the organization and lower earning for employees.

Fear of Unknown- if management introduces new concepts in the organization, it can face resistance from the employees.

Information acceptable by employees does not face rejection whereas information against their thinking faces rejection. Thus, these are individual factors that cause rejection of organizational change.


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