13.3. PROBLEMS AND ACTION STEPS

There are a number of problems associated with implementing major organizational changes. Managers who are not sensitive to these problems and attempt to implement organizational changes in an autocratic manner will find themselves imposing an enormous cost on the organization, as well as to the individuals involved and, indeed, to the very objectives that they had hoped to accomplish. Oxtoby, McGuiness, and Morgan (2002) note that people generally do not destroy what they themselves have created. This explains why it is important to implement change from within instead of importing a model for organizational change from elsewhere.

Management should provide an analysis indicating the need for organizational change and articulating the objectives and goals that need to be achieved as a result of this change. Implementation of major changes in an organization can present significant problems and must be dealt with in such a way as to minimize their adverse impact on organization effectiveness.

Nadler (1982, p. 449) identified three major problems that occur when implementing major organizational changes:

13.3.1. Resistance to Change.

Since change represents some uncertainty, it has an impact on the stability and security of the individuals affected. For the individual, this could mean finding new ways of coping with new situations and new environments.

Change can cause people to fall into six readiness states (Hritz, 2008). The six states are:

Indifference. Seeing no need to change. This may result in behaviors such as apathy, disregard, and unwillingness to produce change.

Rejection. Unwilling to change. This might result in behaviors such as fear of change, refusal to change, challenging the business case of change, and discouragement of others from changing.

Doubt. Looking at the downside. Behaviors may include skepticism, suspicion, hesitancy, or even questioning.

Neutrality. Willingness to participate but unlikely to initiate change. May be seen as indecisive, and noncommitted.

Experimentation. Providing momentum for change but unknowingly doing so. Can be seen as willing to participate and move change forward.

Commitment. Embracing change. With regard to behavior they will be eager to learn and perform change.

13.3.1.1. Organizational Control.

Organizational change may alter the existing system of management control and may change some of the existing power distribution. Organizational change may also make it difficult to monitor performance and make corrections during the transitions.

13.3.1.2. Power.

Since an organization is in a way a political system consisting of different individuals, groups, and coalitions holding and competing for power, an organizational change that alters the power distribution is likely to cause some political activity.

Implications and specific action steps to overcome the problems are identified in table 13.1. Each situation is different and each organization is unique with regard to its history, individuals involved, and specific problems being addressed by the organizational change. Consequently, the general action steps suggested can serve only as a guide for developing an organizational change plan and strategy.

Table 13.1. Organizational Change Management and Action Steps
Problem: Resistance. Implication: Need to motivate change

Action Steps

  • Identify problems and issues that necessitate the need for change. Individuals affected need to be jolted out of the present complacency and stability.

  • Affirmatively seek participation by the affected staff in the change. Focus on building ownership of the change among the participants so that they would be genuinely motivated not only to accept the change but make it work smoothly and effectively.

  • Build in rewards for the behavior that is needed during the transition stage and after implementation. Restructure awards (e.g., pay, promotion, monetary rewards, job assignments, other recognitions) to support the direction of the transition.

  • Allow time for dealing with the feeling of loss caused by the change. Show understanding and provide necessary information to help overcome the problems it might create.

Problem: Control. Implication: Need to manage the transition

Action Steps

  • A critical step is to develop and communicate a clear image of the future. Recognize that the transition and the implemented states are still dynamic systems. Provide written information, which explains the reasons for the change, what the new organization would be like, how the transition will occur, and how individuals will be affected.

  • Include all changes needed to accommodate the new organization. This may include structural change, task change, change in the social environment, and so on.

  • Organizational management for the transition needs to include items such as a transition plan, a transition manager, and resources for the transition. At times, other transition management structures such as task forces or experimental units may be needed during the transition period.

Problem: Power. Implication: Need to shape the political dynamics of change

Action Steps

  • Develop multiple and effective mechanisms (e.g., surveys, sensing groups, consultant interviews, formal reports on key milestones, informal channels) for generating feedback about the transition to management.

  • Assemble and mobilize the key power groups in support of the change. Work with individuals adversely affected and develop ways to investigate any adverse effects caused by the change.

  • Use leader behavior to generate enthusiasm and energy in support of change.

  • Use positive symbols and language to generate support and enthusiasm for change.

  • Build in some stability and minimize anxiety, provide some sources of stability (e.g., physical location, people, some programs) that stay unchanged. These should be identified and communicated to the organization members.

Source: Adapted from Nadler (1982, p. 446).

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