Contents Contents Page No Dedication. 3Acknowledgement. 4Abstract.
5Contents. 6CHAPTER 1. 6INTRODUCTION.. 81.
1 Background: 81.2 Introductionof the organization. 91.3 Objectives: 91.4 Significance: 9CHAPTER 2. 10LITERATURE REVIEW..
. 102.1 TheNecessity for Organizational Change ……………………
102.2 Reason of Employees to Resist Change. 102.3 Reasonsof Acceptance of Change. 14CHAPTER 3. 17RESEARCH METHODOLOGY. 173.
1 Measurementof the Variables. 173.2 Populationand Sample. 183.
3 DataCollection. 19 CHAPTER 4. 20DATA ANALYSIS. 204.
1 DemographicCharacteristics. 204.2 Rating Scale Factors ………………………………………….22 4.
3 Other Factors………………………………………………….24 4.4 Chi-Square Test……………………………………………….254.5Summary:……………………………………………………26CHAPTER 5……….. 28CONCLUSION..
285.1 Conclusions/Findings 285.2 Recommendations. 295.2 LimitationsAnd Directions. 29REFERENCES.
30Questionnaire for Employees’ Resistance towards Organizational Change. 34Section II 37Introduction of thestudent………………………………………………………37 CHAPTER No. 01INTRODUCTION 1.1 Background:1.1 Introduction:21st century is the century ofchallenges, not only for individuals but also for organizations as well.Survival rate and quality with prosperity are associated with changes withinthe organizations. Now a day, organizations are fighting for the implementationof changes which may synchronize the compatibility of organizations with theglobal requirements. Those organizations who want to excel in the market, theirmain objective is to access demand of (external) world market and buildinternal capacity to fulfill the requirements.
My study is based upon INVOTECHEXCELL FZCO, excelling and leading company in United Arab Emirates. INVO TECHis facing tremendous pressure due to ancient type of internal mechanism to dealwith problems with external atmosphere.There is only one factor which can completelydiverse the fate of an organization that is change. But change is that factorwhich completely change the mind set of implementer firstly and then style ofimplementation gain all the importance. Most of the failed attempts ofimplementations are failed due to failed strategy. Employees’ resistance is amajor threat to organizational change process. Employees mostly show reactiveresponse towards change. INVO TECH EXCEL established in 2008 and thenshifted to JAFZA in 2010.
INVO TECH is based on health care sector andmanufactures medical related products like operational instruments and othersurgical accessories at affordable prices and have demand all around the world.INVO TECH is willing to serve the humanity interms of health care related issues by providing quality products andaffordable prices which is most important by market point of view. Affordableprices gives space in market to INVO TECH and quality products sustain thecustomers as well as attract more customers.
In present era requirements ofcustomers are changing day by day, so it is very essential to keep up to datelevel of organization to meet with global challenges. In this scenario changeis vital factor.1.2Background: Change in anorganization is not only the formality. It means that diversification ordeflection of present state of mechanism and essential to achieve goalseffectively. When organization tries to implement change, employees resist.Most of the organizations faced resistance from employees and very badimpression also imposed upon the management. Employees seeks their owninterests, due to this reason they make unions and create hurdles to implementany change.
INVO TECH want to upgrade the manufacturing and marketing mechanismwhich is automate system. Background of this study is based upon challenges toimplement change. 1.3 Objectives: Major objectives of this thesis are:· To checkthe level of resistance from employees towards change,· Toidentify those factors which causes resistance to change in the organization?Thesefindings will help us to understand implementation of change process INVOTECH Excel FZCO in the form ofsuggestions and recommendations. 1.
4 Significance: After understanding and going through all the change process, we will beable to check the level of resistance by employees in INVOTECH EXCELL FZCO. Wewill also find out the magnitude and intensity of resistance and then factorseffects employees towards resistance. At the end we will suggest how to reduceintensity of resistance and how to reduce conflict between the employees. CHAPTER No. 02LITERATUREREVIEW 2.1 Importance of organizationalchange.Change is the management and is the integral part ofan organization (Szamosi and Duxbury 2002).
Keeping in view the above citationor 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 theorganizational change process? It is the process of optimization of performanceto its ideal state (Jones 2004). It is core objective of an organization tomake continuous improvement to adjust the changes (Weick, Quimm 1999). In mypoint view, Lewin’s 3 states of changes is the best description of changeprocess. Lewin proposed a three steep process for successful organizationalchange, Unfreezing, moving and freezing (George & Jones 2002).Pin point of the change process which is responsiblefor successful implimantation is employees so employees participation is veryimportant.
Mintzberg and Waters (1985) emphasis on the participation of theemployees. Participation is the indicator of positive effects on the strategyprocess. It is noticed that the involvement of employees change, in strategywill reduce organizational resistance and create a higher level ofpsychological commitment and also qualitatively better strategic decisions (Kimand Mauborgne, 1998).
2.2 Why Employees Resist ChangeResistance to change is the phenomenon that effectsorganizations through employees and important factors which can effect and influencethe success percentage of organizational changes, which could be new technologywith innovation, new policies and SOPs, and new organizational structural body.Maurer (1996) observed that 2/3rd of organizations are failed tosuccessfully implement the change process, resistance was the little factor butcritically important contributor to that failure in the whole process.According to Clark (1999), most employees may have been given limitedopportunity to be involved in the organizational change practice. It shows thatthe involvement is related to resistance. Ashforth and Mael (1998) described it as deliberateacts of omission and commission. Shapiro, Lewicki, and Devine (1995) observed thatwillingness to deceive authorities constitutes resistance to change.
Block(1993) discovered that the resistance may occur when people distrust or havepast compulsions, having different understandings of the situation. Graham(1986) noted that some employee resistance to organizational change process ismotivated by their own internal fears. Brower and Abolafia (1995) defined resistance as aparticular 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 beenwell expressed, this concept has also limitations and juridictions.
Jermier,Knights, & Nord (1994) argued that the interests of managers should not beprivileged over the interests of workers when processing organizational change.Most of the times, managers blame others for the failure of the initiative ratherthan accepting of their role in its failure (Argyris, 1990). It is also showsthe resistance from the individual because someone is fully adjusted in presentstate of structure so he feels fear. On the other hand differences inparticipant responses to change usually reflect either misunderstandings aboutthe change or individual characteristics and attributes. Watson (1982) whichshows the hidden benefits of managers to be sustain the present system. Now we will try to understand the reasons whyemployees react negatively to change process: Personal loss – Right or wrong, people are afraid they will lose something, particularly.
Security – 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. Pride and 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”). Friends and 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. Responsibility – a concern that jobs will be reduced to menial tasks without responsibility. Authority – 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 authority. Good 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.
Status – 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 her manager. No need. 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.” More harm 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.” Disrespect: Lack 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 also compromises. 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.
Challenge to authority: Sometimes, authority holder officer reject the change because he may be have personal grudges or simply want to show his importance. Secondary 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 WelcomeChange There are few factors which encourage someone toaccept the changes in his, Rothbard, Piderit, & Dutton (1998) point outthat only one reason is there that employees accept change keeping in mind thattop 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 isdetermined by expectations. Harper (2001, P.10) urged those organizations whichimplement change must encourage the employees which allow for the “sloughing ofyesterday” because it will force to thinking.
Make available man and money forthings, creates willingness to act. (Deci & Ryan 185) investigated thatinternalization can be supportive for person’s autonomy or accepting changes.Cognitive evaluation theory (Journal of organizational behavior Vo.: 26, Issue04, 2005, P. 331-362) deals with extrinsic and intrinsic motivations and saysintrinsic motivation urges individual to accept the change.A solution has to be proposed that will reduce themember’s inscure feelings and resistance to change (Schein, 1992)Employees will accept the change when they willclearly their secure future and benefits, the attitude of the employees willautomatically change.Reasons for a positive reaction to change include: Personal gain – When changes are made, somepeople 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 lossof which would lead to change resistance. More security – a perception ofgreater security in a job, perhaps because more of personal skills will beused, such as when there is a change in an engineering department tocomputer-aided design and an individual feels more effective working withcomputers than using a pen to design on a drafting board. More income – a hope for a salary increase, morebenefits, an incentive, or profit-sharing program, or more overtime. More authority – a hope for promotion to aposition of greater authority, or a new boss who allows more authority than wasavailable under the previous boss.
More status/prestige – a hope for a new title, anew office, or a special assignment that carries with it status and prestige. More responsibility – a hope for a job changethat provides new responsibility, or a new boss who assigned moreresponsibility than the previous one did. Better working conditions – a hope for a new workschedule, new equipment, or other conditions that make the job easier or moreenjoyable. Increased personal satisfaction – a hope for agreater feeling of achievement because of a chance to use their abilities moreto eliminate some of the obstacles that had stood in the way of personalperformance. Better personal contacts – an expectation ofbeing moved to a place with greater opportunity for contact with and visibilityto influential people.
A new challenge – the expectation of morerewarding work. Less time and effort –Anotherreason why change may be welcome is if the change actually makes the job easierand requires less time and effort. For example, worksimplification programs carry the slogan “Work smarter, not harder,”and changes that can actually deliver on this promise are often welcomed.
itcan reduce the- physical effort required to do the job. Respect for the source – If people have apositive attitude toward the person or the department from which the changecomes, they will be more likely to accept and even welcome the change. Effective communication – People who are asked todo things instead of told to do them may react very positively, as are thosewho perceive they have had some input effecting the change.