Topic 26 :

The Management of Change

By Zhu Wenzhong

Copyright 2002 by Harcourt, Inc. All rights reserved.

LEARNING GOALS
Explain the importance of managing change for
businesses
State the 4 general reasons for resistance to change
State the 3 specific reasons for resistance to change
Explain the 3 basic stages of managing resistance to
change
State the specific approaches to managing resistance
to change

Copyright 2002 by Harcourt, Inc. All rights reserved.

The importance of managing
change for todays businesses
Businesses are now operating in a rapidly
changing markets and conditions.
Pressure from competitors and various
external changes is forcing businesses to
respond to change and make changes to
their existing operations.

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Resistance to change in the
business
Figure: Reasons for resistance to change
General resistance
Inertia, timing, surprise, peer pressure

Resistance to change

Self-interest, misunderstanding,different assessment

Specific resistance
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Copyright 2002 by Harcourt, Inc. All rights reserved.

General reasons to resistance to
change
The tendency to remain
unchanged. The old way
Inertia
Inertia of doing things are
comfortable and easy, so
people do not want to
change or try something
new.

Copyright 2002 by Harcourt, Inc. All rights reserved.

General reasons to resistance to
change
Poor timing may cause
resistance. When
Inertia
Inertia employees and
managers are in bad
relations, the time to
Timing
Timing introduce change is not
fit.

Copyright 2002 by Harcourt, Inc. All rights reserved.

 General reasons to resistance to
change
Resistance may occur
Inertia when the change is
unexpected or sudden
for employees. .
Timing

Surprise

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Copyright 2002 by Harcourt, Inc. All rights reserved.

General reasons to resistance to
change
Individuals may resist a
Inertia change when the team
resists, even if the
Timing individual does not
strongly oppose the
change.
Surprise

Peer pressure

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Specific reasons for resistance to
change
Individuals may resist a
change if they feel it will
Self-interest
Self-interest cause them to lose
something.

Copyright 2002 by Harcourt, Inc. All rights reserved.

 Specific reasons for resistance to
change
Employees may resist
a change because they
Self-interest
Self-interest do not fully understand
its purpose or benefits
even if it will benefit
Misunderstanding
Misunderstanding them.

Copyright 2002 by Harcourt, Inc. All rights reserved.

 Specific reasons to resistance to
change
Employees and
Self-interest management may see
the change and its
advantages in a
Misunderstanding different way.
Management may the
Different assessment
change as increased
efficiency while
employees may see
only the costs of it.
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Copyright 2002 by Harcourt, Inc. All rights reserved.

Managing resistance to change

Basic stages of implementing

change
Specific approaches to managing
resistance to change

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Basic stages of implementing
change
Figure:

Stage one Stage two Stage three

Unfreezing Moving Refreezing

Copyright 2002 by Harcourt, Inc. All rights reserved.

Basic stages of implementing
change
Unfreezing stage
Breaking from the old ways of doing things,
unfreezing the old organizational culture by
communication
Moving stage
Instituting or establishing the change,
establishing a vision for change direction, and
directing people to the change
Refreezing stage
Reinforcing and supporting the new ways,
strengthening and supporting the change by
providing new control and rewarding systems PhotoDisc

Copyright 2002 by Harcourt, Inc. All rights reserved.

Specific approaches to managing
resistance to change
Education and communication
Participation and involvement
Facilitation and support
Negotiation and rewards
Forcing and coercion

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Question for critical thinking

What are the advantages and

disadvantages of each of the
specific approaches for managing
resistance to change?

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Copyright 2002 by Harcourt, Inc. All rights reserved.