Comprehensive project On Employees Resistance To Change

PREPARED BY:
ANKITA MEHTA (10MBA046)

Flow of Presentation
y Industry Analysis
 Introduction : Telecommunication Industry  Company Introduction : Portugal Telecom  Porters 5 force Analysis  SWOT Analysis

y Employees resistance to Change y Research Objectives y Case Analysis On company y Conclusion y Finding and suggestion

Introduction: Telecommunication Industry

y The Telecommunications is the world's biggest machine. y Strung

together by complex networks, telephones,

mobile phones and internet-linked PCs, the global system touches nearly all of us.
y It allows us to speak, share thoughts and do business

with nearly anyone, regardless of where in the world they might be.
y Telecom operating companies make all this happen.

Company Introduction: Portugal Telecom

y Portugal Telecom (PT) is the largest telecommunications service

provider in Portugal.
y Currently, Portugal Telecoms international presence extends to countries

such as Morocco, Guinea Bissau, Cape Verde, Mozambique, Timor, Angola, Kenya, China, and So Tom & Principe.
y It involved 3 main activities:

Identification of active companies that operate in the Telecommunications (Terrestrial and Satellite) Industry.

Characterization of each company profile. Recommendations for the definition of areas and forms of cooperation between the Industry and ESA for industrial activities (products and services) in the field of Telecommunications.

Porter's 5 Forces Analysis

SWOT Analysis : Strength

High Growth Rate The broadband subscribers grew from 0.18 million in 2005 7.98 million, at 2009.

Lower capital High return on Liberalization expendi Investment efforts by ture Govt.

Huge Customer potential

Weaknesses
Difficult to enter because of requirement of huge financial resources.

Poor Telecommunication Infrastructure.

A market strongly regulated by Government. 10 to 12 companies offer mobile services in most parts of India, globally, the average is 4. Most competitive market

Late adopters of New Technology

India will be among the last countries in the world to get access to3G technology.

Opportunities
3G Telecom services and 4G services. More Quality Service The mobile value added services Mobile banking, Mobile Ticketing etc Boost to Telecom Manufacturing Companies Telecom Equipment Exports Entry Into other consumer segments leveraging the present channels E.g. DTH service like Reliance BIG TV, Tata SKY, Airtel digital TV by telecom majors like Reliance, Tata and Airtel Respectively. Other examples : Airtel website builder Providing fibre Connectivity to 2,50,000 village panchayat by 2012.

Threats
y

Telecommunication Policies E.g. Trai's 2G direction affecting new players most notably TataTeleservices, Norways Telenor and Essar-owned Loop Telecom

y y

Renewal of 2G license on the basis of market rates of 3G auctions TRAI intentions of rolling out 4G or the fourth-generation technology, known as the ultrabroadband in 2-3 years raising fears rendering 3Gservices somewhat obsolete.

y y

Declining ARPU (average Revenue per user) E.g. price wars like per-second billing which is deflating revenues and making sure the survival of the fittest

y y y

Partiality on the part of the Govt. E.g. Allowing 3G service in a PSU (MTNL,BSNL) before auctioning to Private Sector . Content Piracy

RESEARCH OBJECTIVES
To examine fundamental reasons why Employee resist change.  To find out the reasons why employee resistance to change.  To find out the effect of employee resistance to change on organization.  To find the factors for reduce the employee resistance to change.


Research Methodology

y Qualitative Research y Selection of case studies

Introduction : Employees Resistance to Change

y Behaviour which is intended to protect an individual from the

effects of real or imagined change.

y Employee behaviour that seeks to challenge, disrupt, or invert

prevailing assumptions, discourses, and power relations.

y Change is a way of life for those responsible for managing

organizations and with change comes the discussion of resistance to change.

y The idea of change has increasingly become a necessity for

organizations rather than an alternative that they wish to choose.

Nature of Change
y Survival y Behavior y Process y Structure

Sources of change:
y Internal Drivers :  Improving operational efficiency
 

Need to improve the quality of products and services Process improvement

y External Drivers
     

Customer requirements Demand from other stakeholders Government Regulatory demand Market competition Shareholders

Organizational Change Models

y Kurt Lewins Three Step Model and Force-

Field Theory

Cont
y Force Model By Dr Jager

Cont
y New Model of Change Resistance

Employees resistance
y Lack of understanding around the vision and need for

change.
y Comfort with the status quo and fear of the unknown. y Corporate history and culture. y Opposition to the new technologies, requirements and

processes introduced by the change.

y Fear of job loss.

Manager resistance
y Loss of power and control. y Overload of current tasks, pressures of daily activities

and limited resources

y Lack of skills and experience needed to manage the

change effectively.
y Fear of job loss. y Disagreement with the new way. y Skepticism about the need for change.

Reasons for employees resist change

y Employees were not aware of the underlying business need for change. y Lay-offs were announced or feared as part of the change. y Employees were unsure if they had the needed skills for success in the

future state.
y Individuals were comfortable with the current state; they wanted to

maintain the personal rewards and sense of accomplishment and fulfillment provided by the status quo.
y Employees felt they were being required to do more with less, or do more

for the same pay.

About Company
y The study is a Portugal Telecommunications firm which initiates a new program,

called activity-based costing (ABC).

y

During the implementation process, the organization experienced various problems from employees in different departments concerning the change initiative.

y It provides us with comprehensive empirical evidence which shows most common

causes and symptoms of resistance which we will describe and focus on next sections.
y This case study of a Portugal telecommunications company investigates ABC

implementation and usage. The belief is that open-ended, intensive field-based methods can identify and explore issues from the perspective of actors involved, and aid theory development.

Structure for Macroni Before Change

The need for change

y Production and service costs were not significant issues for

management accountants in Marconi, until 1990s.

y Telecommunications

companies didnt have a proper cost

accounting system for decades . . . they didnt need one. . . . Nowadays, with so many operators in the market, it is impossible to survive without identifying and controlling costs.
y Despite the attempts to improve existing management accounting

system of Marconi, they were far from producing satisfactory results and therefore, the company had decided to replace existing system with ABC in 1997.

CONCLUSION
y To understand, describe, and analyze the factors that lead employees resist

organizational change efforts.

y developed a framework which managers or individuals, who plan to initiate a

change program, can use to manage resistance and to benefit for resistant behaviors of employees.
y Individual resistance to change appears to begin as a self-preservation mechanism

when a real or perceived threat exists and often ends with some form of resistance.
y

Resistance to change is an emerging body of knowledge with many viewpoints.

y It is recommended that anyone who manages people should at least understand the

basics of change and the associated resistance to change in an effort to bring harmony to difficult situations or eliminate those who simply refuse to change and who are sabotaging the efforts of others.

THANK YOU