Contents Page No
CHAPTER 1. 6
1.1 Background: 8
of the organization. 9
1.3 Objectives: 9
1.4 Significance: 9
CHAPTER 2. 10
LITERATURE REVIEW… 10
Necessity for Organizational Change ……………………10
Reason of Employees to Resist Change. 10
of Acceptance of Change. 14
CHAPTER 3. 17
RESEARCH METHODOLOGY. 17
of the Variables. 17
and Sample. 18
CHAPTER 4. 20
DATA ANALYSIS. 20
4.2 Rating Scale Factors ………………………………………….22
4.3 Other Factors………………………………………………….24
4.4 Chi-Square Test……………………………………………….25
CHAPTER 5……….. 28
5.2 Recommendations. 29
And Directions. 29
Questionnaire for Employees’ Resistance towards Organizational Change. 34
Section II 37
Introduction of the
CHAPTER No. 01
21st century is the century of
challenges, not only for individuals but also for organizations as well.
Survival rate and quality with prosperity are associated with changes within
the organizations. Now a day, organizations are fighting for the implementation
of changes which may synchronize the compatibility of organizations with the
global requirements. Those organizations who want to excel in the market, their
main objective is to access demand of (external) world market and build
internal capacity to fulfill the requirements. My study is based upon INVOTECH
EXCELL FZCO, excelling and leading company in United Arab Emirates. INVO TECH
is facing tremendous pressure due to ancient type of internal mechanism to deal
with problems with external atmosphere.
There is only one factor which can completely
diverse the fate of an organization that is change. But change is that factor
which completely change the mind set of implementer firstly and then style of
implementation gain all the importance. Most of the failed attempts of
implementations are failed due to failed strategy. Employees’ resistance is a
major threat to organizational change process. Employees mostly show reactive
response towards change.
INVO TECH EXCEL established in 2008 and then
shifted to JAFZA in 2010. INVO TECH is based on health care sector and
manufactures medical related products like operational instruments and other
surgical accessories at affordable prices and have demand all around the world.
INVO TECH is willing to serve the humanity in
terms of health care related issues by providing quality products and
affordable prices which is most important by market point of view. Affordable
prices gives space in market to INVO TECH and quality products sustain the
customers as well as attract more customers. In present era requirements of
customers are changing day by day, so it is very essential to keep up to date
level of organization to meet with global challenges. In this scenario change
is vital factor.
Change in an
organization is not only the formality. It means that diversification or
deflection of present state of mechanism and essential to achieve goals
effectively. When organization tries to implement change, employees resist.
Most of the organizations faced resistance from employees and very bad
impression also imposed upon the management. Employees seeks their own
interests, due to this reason they make unions and create hurdles to implement
any change. INVO TECH want to upgrade the manufacturing and marketing mechanism
which is automate system. Background of this study is based upon challenges to
Major objectives of this thesis are:
the level of resistance from employees towards change,
identify those factors which causes resistance to change in the organization?
findings will help us to understand implementation of change process INVOTECH Excel FZCO in the form of
suggestions and recommendations.
After understanding and going through all the change process, we will be
able to check the level of resistance by employees in INVOTECH EXCELL FZCO. We
will also find out the magnitude and intensity of resistance and then factors
effects employees towards resistance. At the end we will suggest how to reduce
intensity of resistance and how to reduce conflict between the employees.
CHAPTER No. 02
2.1 Importance of organizational
Change is the management and is the integral part of
an organization (Szamosi and Duxbury 2002). Keeping in view the above citation
or observation, importance of the organizational change is absolutely clear.
But before I go to depth of the importance, I would like to clarify what is the
organizational change process? It is the process of optimization of performance
to its ideal state (Jones 2004). It is core objective of an organization to
make continuous improvement to adjust the changes (Weick, Quimm 1999). In my
point view, Lewin’s 3 states of changes is the best description of change
process. Lewin proposed a three steep process for successful organizational
change, Unfreezing, moving and freezing (George & Jones 2002).
Pin point of the change process which is responsible
for successful implimantation is employees so employees participation is very
important. Mintzberg and Waters (1985) emphasis on the participation of the
employees. Participation is the indicator of positive effects on the strategy
process. It is noticed that the involvement of employees change, in strategy
will reduce organizational resistance and create a higher level of
psychological commitment and also qualitatively better strategic decisions (Kim
and Mauborgne, 1998).
2.2 Why Employees Resist Change
Resistance to change is the phenomenon that effects
organizations through employees and important factors which can effect and influence
the success percentage of organizational changes, which could be new technology
with innovation, new policies and SOPs, and new organizational structural body.
Maurer (1996) observed that 2/3rd of organizations are failed to
successfully implement the change process, resistance was the little factor but
critically important contributor to that failure in the whole process.
According to Clark (1999), most employees may have been given limited
opportunity to be involved in the organizational change practice. It shows that
the involvement is related to resistance.
Ashforth and Mael (1998) described it as deliberate
acts of omission and commission. Shapiro, Lewicki, and Devine (1995) observed that
willingness to deceive authorities constitutes resistance to change. Block
(1993) discovered that the resistance may occur when people distrust or have
past compulsions, having different understandings of the situation. Graham
(1986) noted that some employee resistance to organizational change process is
motivated by their own internal fears.
Brower and Abolafia (1995) defined resistance as a
particular kind of action or inaction, while. Sagie, Elizur, and Greenbaum
(1985) used compliant behavior as evidence of reduced resistance.
Although the concept of resistance to change has been
well expressed, this concept has also limitations and juridictions. Jermier,
Knights, & Nord (1994) argued that the interests of managers should not be
privileged over the interests of workers when processing organizational change.
Most of the times, managers blame others for the failure of the initiative rather
than accepting of their role in its failure (Argyris, 1990). It is also shows
the resistance from the individual because someone is fully adjusted in present
state of structure so he feels fear. On the other hand differences in
participant responses to change usually reflect either misunderstandings about
the change or individual characteristics and attributes. Watson (1982) which
shows the hidden benefits of managers to be sustain the present system.
Now we will try to understand the reasons why
employees react negatively to change process:
loss – Right or wrong, people are afraid they will lose something,
a concern about job loss through a reduction in force or automation.
Money – a
concern about loss of money through a reduction in salary, pay, benefits,
or overtime or through increased expenses because of a move to another
location that is farther from their home.
satisfaction – a concern about ending up with jobs that no longer require
their abilities and skills, such as automation through computer-aided
design in engineering departments (e.g., a “button pusher”
instead of a “skilled craftsman”).
important contacts – a concern that a move to another location will no
longer allow contact with friends and important people, resulting in loss
of visibility and daily contacts.
Freedom – a
concern that a new boss will replace confidence and personal freedom with
closer supervision that provides less opportunity for decision-making.
– a concern that jobs will be reduced to menial tasks without
a concern about a loss of power and authority over other people because of
reorganization takes place or a new boss who decides to withdraw
working conditions – concern about being moved to a less desirable work
location, e.g., from a large private office to a small one or from an
office to a desk in a partitioned work area.
concern about loss of job title, responsibility, or authority that will
result in a loss of status and recognition from others, such as when
another layer of management is inserted between a subordinate and his or
This type of resistance is epitomized by a reaction such as ?What’s the
matter with the way things are now?” or “I don’t see any reason
why we should change.”
than good. This kind of resistance occurs when people feel the change is a
mistake that it will cause more problems. Although sometimes this reaction
is justified, it is particularly common when people at the lower levels of
an organization feel that top management makes changes without knowing
what’s going on “down on the line.”
of respect is that factor which creates a wide line which may cause of
disrespect in response as well as the can cause of exhausting. It is way
of keeping organization environment pleasant otherwise honesty in work
Bad timing: Changing
in the timing is very important and crucial factor which is hard to
accept. Employees are also compelled by domestic problems and have a rigid
timing in the perception, so it is hard to change the timing.
authority: Sometimes, authority holder officer reject the change
because he may be have personal grudges or simply want to show his
source information: There are many of managers which are sensitive about
learning of the change. They wait until they hear it “from the
horse’s mouth.” It is the mindset of the managers, I think so they
are compelled by their nature to do so.
2.3 Why People Accept or Welcome
There are few factors which encourage someone to
accept the changes in his, Rothbard, Piderit, & Dutton (1998) point out
that only one reason is there that employees accept change keeping in mind that
top management will address their problems as well. Porter and Lawler (1968)
suggested that what is the level at which an individual try to accept change is
determined by expectations.
Harper (2001, P.10) urged those organizations which
implement change must encourage the employees which allow for the “sloughing of
yesterday” because it will force to thinking. Make available man and money for
things, creates willingness to act. (Deci & Ryan 185) investigated that
internalization can be supportive for person’s autonomy or accepting changes.
Cognitive evaluation theory (Journal of organizational behavior Vo.: 26, Issue
04, 2005, P. 331-362) deals with extrinsic and intrinsic motivations and says
intrinsic motivation urges individual to accept the change.
A solution has to be proposed that will reduce the
member’s inscure feelings and resistance to change (Schein, 1992)
Employees will accept the change when they will
clearly their secure future and benefits, the attitude of the employees will
Reasons for a positive reaction to change include:
Personal gain – When changes are made, some
people may gain such things as new job titles, more responsibility, more money,
and more authority. In short, they may stand to gain any of the things the loss
of which would lead to change resistance. More security – a perception of
greater security in a job, perhaps because more of personal skills will be
used, such as when there is a change in an engineering department to
computer-aided design and an individual feels more effective working with
computers than using a pen to design on a drafting board.
More income – a hope for a salary increase, more
benefits, an incentive, or profit-sharing program, or more overtime.
More authority – a hope for promotion to a
position of greater authority, or a new boss who allows more authority than was
available under the previous boss.
More status/prestige – a hope for a new title, a
new office, or a special assignment that carries with it status and prestige.
More responsibility – a hope for a job change
that provides new responsibility, or a new boss who assigned more
responsibility than the previous one did.
Better working conditions – a hope for a new work
schedule, new equipment, or other conditions that make the job easier or more
Increased personal satisfaction – a hope for a
greater feeling of achievement because of a chance to use their abilities more
to eliminate some of the obstacles that had stood in the way of personal
Better personal contacts – an expectation of
being moved to a place with greater opportunity for contact with and visibility
to influential people.
A new challenge – the expectation of more
Less time and effort –Another
reason why change may be welcome is if the change actually makes the job easier
and requires less time and effort.
For example, work
simplification programs carry the slogan “Work smarter, not harder,”
and changes that can actually deliver on this promise are often welcomed. it
can reduce the- physical effort required to do the job.
Respect for the source – If people have a
positive attitude toward the person or the department from which the change
comes, they will be more likely to accept and even welcome the change.
Effective communication – People who are asked to
do things instead of told to do them may react very positively, as are those
who perceive they have had some input effecting the change.