Change Management

Unit 6

Unit 6

Resistance to Change

Structure: 6.1 Introduction Objectives 6.2 The Concept of Resistance 6.3 Negative and Positive Aspects of Resistance 6.4 Recognising Resistance 6.5 Factors Responsible for Resistance Types of resistance 6.6 Reducing Resistance to Change Techniques for managing resistance 6.7 Responding to Unexpected Resistance 6.8 Summary 6.9 Glossary 6.10 Terminal questions 6.11 Answers 6.12 Case Study

6.1 Introduction
After studying the previous units, you must be familiar with the concepts of Change management. You have also studied the organisational aspects of change management and life cycle of an organisation. We have also learnt the different models of change management and integration of change models. One of the biggest challenges faced by the HRM during the implementation of an organisational change is that of Resistance to change. Whether a change is of a major proportion or is of an objectively small proportion, the change manager must anticipate that the people in the organisation are going to find reasons to resist the changes. Human beings have a tendency to resist change towards the values that have been successful earlier. This holds true even if there are better alternatives to meet the needs. Resistance to change can arise in many forms, the more obvious being that of active resistance, where people tend to object, or refuse to cooperate with the change. Other, more subtle forms of the resistance, surprisingly, are more difficult to deal with.
Sikkim Manipal University Page No. 117

Change Management

Unit 6

This unit will give us a definition on the concept of resistance. It will give us an insight into both the negative and positive aspects of change and the factors responsible for resistance. And most importantly, it explains the different techniques that help us to manage the resistance to change. Learning Objectives After studying this unit you should be able to: explain the concept of resistance. tell the negative and positive aspects of resistance. describe the factors that are responsible for resistance. explain different techniques for managing resistance.

6.2 The Concept of Resistance

Most people as you know don't like change; this is because they don't like being changed. It is when change comes into view, often despite its obvious effects, fear and resistance to change follow. The Concept of Resistance emerges when an individual senses a threat to something that he values. This threat could be for real or may just be a perception by the individual himself. The resistance may arise either from a genuine understanding of the change or from misunderstanding. It could also arise as a result of his almost total ignorance about the change. According to change theory, human systems look for homeostasis and equilibrium. Let us go look into what the above statement is suggesting to us. Most of us prefer predictability and stability in both personal as well as our professional lives. We typically avoid situations that upset order, threaten our self-interests, increase stress or involve risk. When faced with changes to our status quo, we tend to resist initially. The resistance continues and, in some cases increases, until we recognise the benefits of the change and see the gains to be worth more than the danger to our self-interests. There are two fundamental sources of resistance. They are: Fear. Lack of awareness. Fear of change is necessary and acts as an integral protective aspect of our survival mechanism. Very often we are justified in being fearful of the potential consequences of a change, especially of an imposed change as it
Sikkim Manipal University Page No. 118

Change Management

Unit 6

really may be damaging to our best interests and our survival in the current environment. Lack of awareness on the topic is the other critical component of the change model that gives rise to the concept of resistance. Most of the times it is this lack of awareness which gives rise to unnecessary changes and conflicts in the change process. Self Assessment Questions 1. The Concept of _________ emerges when an individual senses a threat to something that he values. 2. _____________ of change is necessary and acts as an integral protective aspect of our survival mechanism. 3. ______________ on the topic is the other critical component of the change model that gives rise to the concept of resistance.

6.3 Negative and Positive Aspects of Resistance

According to Ansoffs 1 definition Resistance has been considered as a phenomenon that affects the change process, delaying or slowing down its beginning, obstructing or hindering its implementation, and increasing its costs. Any concept as we know has got two sides to it. In a similar manner, the concept of resistance to change too has got both its positive as well as its negative effects. Unfortunately, when the word resistance is mentioned, as in the definition, both you and I, on a collective note, tend to ascribe negative connotations to it. This is a misconception that we all have. However, to justify this point, it is necessary to first look into the negative side of the coin to start with because only then can its positive aspects can be appreciated. Negative aspects of resistance An individuals natural reaction to change, under any circumstances, is to resist. In an organisational context, the biggest causes of resistance to change are the actions and attitudes of the leaders introducing the change and the managers seeking to implement it.
1

University-essays.tripod.com/ansoff_analysis.html

Sikkim Manipal University

Page No. 119

Change Management

Unit 6

They generally become the target of an emotional response from individuals within the organisation. They may be labelled as difficult, inflexible or unsupportive. Some may even say that they lack initiative or vision. They may be called a cynic or pessimist. This need not be the case always.

The negative aspects of the concept of resistance if not dealt with wisely can lead to the failure of the entire project and then of the organisation as a whole. Hence, it is important to consider the other side of the coin as well. Positive aspects of resistance Let us now look into how this entire concept acts as a boon in disguise, that is, the positive side. A degree of scepticism can prove to be healthy especially where there are weaknesses in the proposed changes.
2

Leigh asserted that Resistance is a perfectly legitimate response of a worker. The following information will help us to realise how analysing resistance as a positive force and suggesting the use of resistance to build support towards the change comes into practice. Resistance is any form of conduct that tries to keep the status quo, or it is the inertia that persists to avoid change. Inertia and resistance are not to be considered as negative concepts as change always may not be inherently beneficial for organisations. Resistance helps to show the change managers certain aspects that were not properly considered during the change process. You can also view it as a natural survival mechanism within organisations that assist in the checking, adapting and some cases bring to a halt the decisions made by fallible and ill-informed senior managers. The concept of resistance can be advocated to prevent folly. This can be done by the following methods: Attend resistance messages: The members resisting change generally would have performed a detailed study of the change and ultimately its consequence on the organisation. Thus, attending to their messages will help the change agents to learn much to their advantage.

en.wikipedia.org/wiki/Nullification_Crisis

Sikkim Manipal University

Page No. 120

Change Management

Unit 6

Listen to the resister: In this procedure, lending an ear to the resister will lead to exploring and addressing the resisters real concerns so as to ensure a more effective change.

Hence, we can come to the conclusion that resistance if dealt with as a constructive tool for change management your effort towards securing a successful change will be paid off. In this manner, we learn that resistance to change is not the fundamental problem but, in reality, is a symptom of more basic problems. Activity 1: Assume that you are an employee of a company ABC. Your colleague has been asked to work from another branch of the same company. Unfortunately, he is disappointed and raises a resistance to the change. In what ways, according to you does this resistance act as both positive as well as negative? (Hint: The two types of Resistance) Self Assessment Questions 4. The concept of __________ can be advocated to prevent folly. 5. Resistance to change is a perfectly legitimate response of a _________. 6. The two methods advocated in checking the change managers during an organisational change are by __________and ____________.

6.4 Recognising Resistance

It is important to be able to spot the resistance to change when it occurs rather than get surprised when the change mysteriously fails. Identifying the same will help you to respond appropriately to it. This is one of the biggest challenges faced by the change managers. If you can catch the resistance early, it will then give you a chance to respond to it before it takes hold, hence, effectively nipping it in the bud. Let us first look into some of the early signs of resistance. These can be in the form of: Gossip. Testing.

Sikkim Manipal University

Page No. 121

Change Management

Unit 6

Gossip When a change is announced, the tom-toms will start beating loudly and the grapevine will bear fruits of much and varied opinion. Keep your ear to the ground so as to know what is being said around the coffee points. Listen particularly for declarations of intent and attempts to organise resistance. Grumbling and complaints are natural ways of airing discomfort, so you should not try to squash it as this will anyway lead you to failure. The biggest danger happens when it is allowed to ferment in an information vacuum. Respond to the gossip by opening it up, show that you are listening to the concerns and that are taking them seriously. Providing lots of valid information will help to fill the vacuum. Testing Just as a high school class tests a teacher's ability to maintain discipline, so will some brave souls test out what would happen when they resist the change. An example, the resisters may not turn up to a meeting or may openly challenge a decision. How you deal with such early resistance has a significant effect on what happens next. For example, you can shout at them and hurt their sentiments, or you can take an adult position, describe what they have done and assertively question their motives. Resistance to change can occur in two ways, namely: Individual action. Collective action. Individual action Individuals, may resist, however, this is generally limited to the extent of their personal power. For those with a lower power, this may include passive refusals and covert action. For those with more power, the resistance may include open challenge and criticism. An individual action must be handled individually. It should be started with those who possess a greater power and then the message gets automatically conveyed to those below.

Sikkim Manipal University

Page No. 122

Change Management

Unit 6

An example of dealing with an individual who is resisting change: Disciplining a senior executive can send a strong signal to the other resistors. Collective action People generally do not bother of organising unless and until they have serious issues with the change. This gives rise to what is known as organised resistance. Organised resistance is usually a sign of a serious problem. When these people find a common voice in the organised resistance, then their words and actions could create a significant threat to the change, even though they might be individually less powerful. Care should be taken while managing the collectives. It should be done by negotiating with their leaders rather than dealing with a myriad of smaller fires. You may be needed to make some concessions, but you can see to it that at least at the end of the negotiation you should be able to rescue some key elements of the change. You can also use the 'divide and conquer' approach, by striking deals with the individual key players; although this must be done carefully as it can cause a serious backlash. An example of a collective action against resistance to change: Trade Union. Resistance need not always be out in the open, in most cases it often starts out in a more underhand, covert way. Thus, we can conclude that resistance to change is basically expressed in two ways. These include: Covert resistance. Overt resistance. Covert resistance Covert resistance is the deliberate form of resistance to change, but done in a manner such that it allows the perpetrators to seem as though they are not resisting. Covert resistance should be handled by showing that you know what is happening and investigations should be so designed so as to identify the people responsible. When the resistance is covert in nature, you may also be required to resort to covert methods to identify the source and hence take appropriate action.

Sikkim Manipal University

Page No. 123

Change Management

Unit 6

An example of covert resistance being expressed can be through the sabotage of various kinds. Overt resistance Overt resistance does not try to hide, as it is the result of either of someone comfortable with their power, or someone for whom covert acts are against their values, or someone who may be desperate. Deal with the overt resistance by first seeking to respond openly and authentically. If they are blindly resisting, then you will be left with no alternative but to defend, for example by isolating and disciplining the culprits. Although overt active resistance is potentially damaging, it is at least visible and there is the option of using formal disciplinary actions. An example of overt resistance being expressed can be in the form of an open argument such as refusal or attack. Another aspect of the overt resistance is that it does not necessarily need to take positive action as in some cases it can be passive. Let us read further to understand how overt resistance can be further classified. Overt resistance can be expressed through two types of actions. They are: Passive resistance. Active resistance. Passive resistance Passive resistance occurs when people do not take any specific action. Their main tool will be to refuse to collaborate with the change. They may agree and then do nothing to fulfil their commitments. This could become very difficult to address, as the resisters would have particularly not done anything wrong. One way to address this is by getting the public commitment to an action, and by following it up publicly if required. This will ensure that they complete the action. This process should be repeated until they are either bought in or they give in. For example, during meetings, they may sit quietly and appear to agree with the change.

Sikkim Manipal University

Page No. 124

Change Management

Unit 6

Active resistances Active resistance occurs when people take specific and deliberate action to resist the change. It may be made overt, with public statements and acts of resistance, or it may be made covert, such as organising others to create an underground resistance movement. Thus, we have seen the different ways of recognising resistance.
Activity 2:

Assume that your company has increased the work timings by an hour. You being the change manager, how will you go about picking up the early signs of resistance to the change? (Hint: Covert and Overt Resistance) Self Assessment Questions 7. Resistance can happen either as an________ or as a ___________. 8. _________________ is the deliberate form of resistance to change, but done in a manner such that it allows the perpetrators to appear as if they are not resisting. 9. ______________ does not try to hide; it may be in the form of an open argument. 10. Overt resistance can either be ________ or as a ___________.

6.5 Factors Responsible for Resistance

There are several factors that cause resistance to change. Here, we shall look into some of the critical reasons why employees resist change. These could include, their: Inability to understand change and its implications. Conviction that change is irrelevant and inappropriate. Difficulty to cope with the level and pace of work after the change. Speculated notion that change is a temporary phase. Perception that their superiors regard them as incompetent. Lack of influence or control. Lack of faith in their talent to learn new skills. Feeling of too many changes occurring too soon.
Sikkim Manipal University Page No. 125

Change Management

Unit 6

Dislike to some managers/superiors and total mistrust in them. Feeling that it would involve a compromise on their income. Belief that the organisation does not need the extra effort. Unwillingness to use new technology to simplify work processes. Lack of proper communication channels between the management and themselves.

We observe that the mentioned reasons broadly belong to basically two categories. These are: A lack of awareness about the change. Comfort with the way things are and hence a fear of the unknown. Given figures briefly explain the two broad categories. Figure 6.1, illustrates how a lack of awareness about the change gives rise to a fear of incurring a potential for loss on a personal level. Some of the losses on the personal level have been given in the diagram. Figure 6.1 illustrates the lack of awareness about the change

Figure 6.1: Lack of Awareness about the Change

Figure 6.1 gives us an insight into how the potential for loss on a personal level acts as a reason for factor instigating the resistance to change; even though there isnt a potential threat, the individual believes that there is.
Sikkim Manipal University Page No. 126

Change Management

Unit 6

Figure 6.2, on the other hand, explains how comfort with the way things are develops within us the resistance in change. When, in reality, there is no such thing as comfort. Comfort is something that we assume or rather create for ourselves. It is that situation, wherein, we make ourselves believe that the way the things are currently is good and safe, and that any change to this would require us to get out of our comfort zone. The figure illustrates some of the factors that influence this state of mind.Figure 6.2 illustrates the comfort with the status quo.

NEGATIVE ATTITUDE TOWARDS THE ORGANISATION BEFORE THE CHANGE

Figure 6.2: Comfort with the status quo

Thus, figure 6.2 tells us how an individuals comfort with the ways things are causes him to raise a resistance to change. When actually in truth comfort is something an individual perceives in his mind, it does not exist. It is a creation by the human mind. It is important to note that fear of the unknown could also lead to the described. Resistance can also be classified into two other categories, which include: Resistance to the content of change. Resistance to the process of change.

Sikkim Manipal University

Page No. 127

Change Management

Unit 6

Resistance to the content of change: This involves the object of the change. An example of this type of resistance is that, when a specific change is introduced in technology, like the introduction of a particular reward system. Resistance to the process of change: This involves the way in which a change is introduced and not the object of change. An example of this kind of resistance is when the management re-structures jobs with no prior consultation with the employees who are affected by the change. 6.5.1 Types of resistance There are three types of resistance involved in any resistance to change. These are: Level 1: I Do Not Get It. Level 2: I Do Not Like It. Level 3: I Do Not Like You. The following example 3 will give us an insight into the different types of resistance. Let us consider a real life scenario wherein an executive announces that the company will restructure starting the following week. The employees and middle managers begin to resist. As the project unfolds, executives see resistance appearing in many forms malicious compliance, in-your-face arguments, even sabotage. The executives respond by pushing the change even harder. They then start to make demands. Employees start to redouble their opposition and the change ends up either failing or going far over budget and way past deadlines. Let us now look into the types of resistance involved in the same. Level 1: I Do Not Get It: Level 1 involves information involving the facts, figures and ideas. It is the world of thinking and rational action. It is the world of presentations, diagrams, and logical arguments. This could also arise from lack of information, disagreement with data, and lack of exposure to the critical information or maybe even just the confusion over what it means.

http://www.beyondresistance.com/resistance_to_change.html

Sikkim Manipal University

Page No. 128

Change Management

Unit 6

Many at times, we make the mistake of treating all resistance as if it were Level 1. Well-meaning managers supply their people with more information hold more meetings, and make more PowerPoint presentations - when, in fact, something completely different is called for. And that's where Levels 2 and 3 come in. Level 2: I Do Not Like It: Level 2 concerns the emotional reaction to the change. Blood pressure rises, adrenaline flows, pulse increases. It is centred on fear: People are afraid that this change may cause them to lose face, status, control - maybe even their jobs. When Level 2 is active, it makes communicating the change very difficult. People stop listening. So no matter how terrific your presentation is, once people hear "downsizing" their minds go elsewhere. This, however, is uncontrollable. They are not choosing to ignore you; it's just that they've got more important things on their minds - like their own survival. Level 3: I Do Not Like You: This means, maybe they do like you, but they don't trust you or don't have enough confidence in your leadership. This is difficult to digest, but lack of attention to Level 3 is a major reason why resistance flourishes and changes fail as it is seldom talked about. In Level 3 resistance, people are not resisting the idea in fact, they may love the change you are presenting they are resisting you. But maybe it may not be you; they may be resisting those whom you represent. Whatever be the reason for this deeply ingrained resistance, you can't afford to ignore it. People may understand the idea you are suggesting (Level 1), and they may even have a good feeling about the possibilities of this change (Level 2) but they won't go along if they don't trust you. Thus, the example broadly classifies the types of resistance involved in an actual organisational change. However, the following section explains the methodology involved in reducing resistance to change. Self Assessment Questions 11. Resistance to change can be classified into two main categories. These include the resistance to the ________ of change and the resistance to the _________ of change.
Sikkim Manipal University Page No. 129

Change Management

Unit 6

12. There are three types of resistance involved in any resistance to change. (True/ False)? 13. Level 2 concerns the emotional reaction to the change. (True/ False)? Activity 3: Assume that you are working as a change manager in a company named ABC. Note down some of the different types of resistance that you come across when the company decided to open a new unit in another state. (Hint: Classify them into the two broad categories as explained.)

6.6 Reducing Resistance to Change

From the issues raised in the section above, it can be seen that change is complex and there is not a single solution. There are chances that you may come across people who accept or welcome the change. Two reasons why people would favour the change is as follows: Personal Gain When an individual foresees possibilities of gain in the following areas such as: Increased Security. Money. More Authority. Status or Prestige. Better work conditions. Self satisfaction. Better personal contacts. Reduced time and effort. Other Factors Some of the other reasons that an individual accepts change are as follows: Provides a New challenge. Likes or Respects the source. Likes the way in which the change is being communicated. Reduces the boredom. Provides an opportunity for input. Improves the future. Perception that the change is necessary.
Sikkim Manipal University Page No. 130

Change Management

Unit 6

Thus, we can infer from the two situations that resistance to change can be minimised through the following manner: Education and communication. Participation and involvement. Facilitation and support. Negotiation and agreement. Manipulation and co-optation. Explicit and implicit coercion. The following is a step-by-step procedure which when followed will help you to minimise the resistance to change: 1. Provide all the facts about the reason for changing. If risks are involved, acknowledge them but explain. 2. Objectively explain the benefits that could result from the change. 3. Seek questions or clarifications and answer them. 4. Invite participation and ask for suggestions because the people involved know the situation best. 5. Avoid surprise because this stirs unreasoning opposition more than any other factor. 6. Acknowledge the rough spots and explain how you plan to smooth the change. 7. Set standards and explain your expectations. 8. Contact the informal leaders and use their resources. 9. Acknowledge and reinforces the staffs co-operation and give them feedback on the process. 10. Keep the two way communications open for suggestions and corrections. 6.6.1 Techniques for managing resistance The 5 key techniques that are used to manage resistance to change: Factual aspect of dealing with resistance to change. Emotional aspect of dealing with resistance to change. Personal aspect of dealing with resistance to change. Individual and collective capacity for change. Acceptance of the limitations of change.

Sikkim Manipal University

Page No. 131

Change Management

Unit 6

Let us look into the mentioned aspects in detail: Factual aspect of dealing with resistance to change: A good communication tactic is vital for a successful change management procedure, and is essential to deal with the factual aspects of resistance. There are 2 stages to the factual communication: Before the change occurs and during the change process. The structural and content part of your communication will help greatly from the order of a programme-based approach to leading and overseeing the change initiative. Emotional aspect of dealing with resistance to change: Many leaders in the world of change management and change leadership are now speaking about the importance of the emotional aspect of leadership and the need to address the human dimension of change. The definitive work in this area is William Bridges 4 as he focuses on transitions and the psychological changes that lie behind significant organisational change. He maintains that the situational changes are not as difficult for companies to make as the psychological transitions of the people impacted by the change. Personal aspect of dealing with resistance to change: We often either overlook or ignore the factor of YOU as the change leader It is easy to speak of change management but the reality is that change involves leadership as well as management. The primary cause of failure in all the change initiatives is that all the people related are to be dealt with their emotions. So the change leader is expected to possess some very special qualities. What you do, and how you do it, is largely dependent on how you are as a person. The mastery of this area is critical to the success of a change initiative. 5According to Daniel Goleman, "The leaders emotions are contagious - they infect the organisation"

4 5

William Bridges-Navigating the transitions of change The Man in the Mirror-Daniel Goleman

Sikkim Manipal University

Page No. 132

Change Management

Unit 6

Individual and collective capacity for change: Another factor that is often over-looked is that of limits to how far and how fast people and organisations can change. Why this happens to be so important is because organisational cultures are the single biggest determinant factor of how an individual responds in an organisational environment. In other words, you can not jump from childhood to adult maturity in a single step and without evolving through all the prevailing stages of development. Acceptance of the limitations of change: Another dimension that that is involved in dealing with the resistance to change, is that however well planned and executed things happen. Whether we like it or not there are significant aspects of our personal and organisational lives that are out of our control. These things are generally very stressful and often can not be fully resolved.

6.7 Responding to Unexpected Resistance

Unexpected resistance, as the name suggests, is the resistance that occurs when the individual suggesting the change least expects a resistance. Responding to unexpected resistance involves 5 steps6. Let us look into these by taking into consideration an example so as to understand such a scenario more clearly. Imagine that you are in the middle of a meeting and then suddenly someone speaks out against the change. 1. Pause: The natural tendency of most individuals is to react instantly. The voice used may be that of authority and tinged with anger. But think how this may appear to other people? The message conveyed is 'public disagreement is not allowed'. The outcome of this is that the person who was resisting the change now has the sympathy of others. It is also likely that the resistance may just go underground. So the very first thing is to bite your lip, hold your tongue and count to three. Take a minute to pause and consider the situation.

http://changingminds.org/disciplines/change_management/resistance_change/unexpected_resistance.ht m

Sikkim Manipal University

Page No. 133

Change Management

Unit 6

2. Listen: The next step to be followed is to listen carefully not only to what they are saying but also to how they are saying it. Listen for the hidden message within the lines. Listen to their fears, hopes and ambitions. Hear out their tensions and emotions. Observe how they are coping. Use appropriate questioning techniques to learn more. 3. Empathise: Make sure that your initial response is one that empathises with their position. Show them that you understand, even though you may not agree, and respect their right to voice an honest opinion. When people expect a fight but find only concern, the surprise is likely to change their opinion. 4. Think: Before you address the resistance, think hard about what you are going to say and how you are going to say it. Done wrong, a response will show your empathy to be false and may cause a hostile response. 5. Respond: Respond in a way that offers the other person a dignified way out. Seek win-win. Use their language. Reframe their position to show them a bigger picture. Self Assessment Questions 14. One of the reasons why people would favour the change is because of ________ gain. 15. A good ______________ tactic is vital for a successful change management procedure. 16. The five steps to be taken when dealing with unexpected resistance to change are: ________, _________, ________, ________ and _________.

6.8 Summary
In this unit, we have discussed about the resistance to change. It has been observed in many situations that employees in an organisation find some reasons to resist change. Employees generally refuse to cooperate with the changes. The resistance can arise from the individual who feels threat of losing something valuable or can arise due to mere misunderstanding. The resistance arises due to fear of change and lack of awareness.

Sikkim Manipal University

Page No. 134

Change Management

Unit 6

Changes need not significantly alter the way the leader leads. Dealing with resistance to change involves looking totally at the sources and the causes of resistance. To a large extent, resistance to change is the default element for the adult behaviour, and often the level of resistance is directly proportional to the life and work experience. The ideal way of dealing with resistance is not to have to! If you have taken care to plan thoroughly and have addressed all of the key areas required to successfully lead and manage the change, you would have separated many of the totally unnecessary and expected causes and sources of resistance.

6.9 Glossary
Term Change Homeostasis Description The process of becoming different A process of interaction or mechanism which balances various influences and effects such that a stable state or a stable behaviour is maintained. The act of defending one's position in response to confrontation A person who resists change To maintain the status quo is to keep the things the way they presently are. A way in which all participants can profit from it in one way or the other, that is, a situation wherein both parties win, and the middleman wins as a successful negotiator.

Resistance Resister Status Quo Win-Win

6.10 Terminal Questions

1. What are the positive aspects of Resistance to Change? 2. What are the differences between Overt Resistance and Covert Resistance? 3. List out some of the factors responsible for Resistance. 4. Explain the techniques involved in managing Resistance. 5. Briefly explain the points to be considered when dealing with an unexpected Resistance.

6.11 Answers
Answers to Self Assessment Questions: 1. Resistance
Sikkim Manipal University Page No. 135

Change Management

Unit 6

2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Fear Lack of awareness Resistance Worker Attend Resistance messages, Listen to the Resisters Individual group Covert Resistance Overt Resistance Active, Passive Content, Process True True Personal Communication Pause, Listen, Empathise, Think, Respond

Answers to Terminal Questions: 1. Refer Section 6.3: Negative and Positive aspects of Resistance 2. Refer Section 6.4: Recognising Resistance 3. Refer Section 6.5: Factors Responsible for Resistance 4. Refer Section 6.6: Techniques for Managing Resistance 5. Refer Section 6.7: Responding to Unexpected Resistance

6.12 Case Study

Managing Change in Banking Sector This case study illustrates an instance of Resistance to change that occured in the banking sector. In the year 2000, the Indian Banking sector faced a crisis. It was decided to introduce computers. This was a decision taken by the bank management to improve the efficiency of the bank processes in general which included speeding up of work. This change was met with lots of resistance from the employees. The primary fears being the loss of job, as the introduction of computers would reduce the manpower. Other fears that added to the resistance by the employees belonging to the middle age group were, the lack of
Sikkim Manipal University Page No. 136

Change Management

Unit 6

confidence to grasp the technology and apprehensions of being replaced by young and skilled professionals. Their resistance was expressed openly. The unions representing the bank employees went on strike against the decision. They did not in any way try to hide their dislike. The management then understood their fears, but introduction of computers was inevitable. They had to go ahead with the decision, and this was possible only if the employees would cooperate. The management then realised that, it was the lack of information that lead to most of their insecurities. They decided to educate them concerning the positive changes that the introduction of computers would bring and how it would benefit not just the employee but also the customer who is at the receiving end and thereby increase their efficiency. It was decided to provide all its employees with an extra increment for using the computers. This helped them to introduce computers into the banking sectors. However, this meant that the head count was to be reduced. But, they could not just remove the employees. Instead, the concept of VRS (Voluntary Retirement Service) along with attractive packages was introduced, which tempted the bank employees to go for VRS. The attractive packages included ex-gratia for the individuals who opted for it. Now, as we see it has been 10 years since the use of computers have come into practice. The employees now agree with the management on the terms that the computers have helped to speed up all the processes, thereby, reducing manual labour. The customers have been benefited as the banking sector is now able to provide them with a faster and better service. Questions: 1. What were the challenges faced by Management while introducing computers into the banking sector? (Hint: Factors for resistance to change) 2. Discuss the step-by-step procedure adopted by the Management to overcome the resistance to the change. (Hint: Dealing with resistance to change.)
Sikkim Manipal University Page No. 137

Change Management

Unit 6

References Radha R Sharma (2007), Change management - Concepts and Applications. V.Nilakant and S.Ramnarayan (2006), Change Management. E-Reference http://en.wikipedia.org/wiki/Change_Management http://www.managingchange.bis/manage_change_resistance.html

Sikkim Manipal University

Page No. 138