Introduction
The paper will review contemporary management practice involving a case study of one UK’s power and energy Services Company named Energy Co. One topic from HRO 383 curriculum that is related to the contents of the case is the company structure. The thing that relates this topic to the content of the case is the company’s leadership hierarchy that the case discusses. Therefore, the mentioned issue of staff resistance towards change results from the way the leadership of this company approaches the change process. The case study indicated the Energy Co. has been through a process of change in its operations to promote delivery of services and improve budget efficiencies in the next five years. However, staffs in this company are not comfortable with these changes, and they have raised several questions regarding the validity of the changes and how they can positively impact the performance of this company. Some staffs also feel that the management of this organization imposed these changes despite consultations that were there before these changes were implemented. All these reasons have led to workers demonstrating various forms of resistance towards the changes that the company has been implementing.
A literature review will be conducted to see what different authors say about staffs’ resistance towards change within organizations. The literature review will begin by defining what resistance to change means. The literature review will then identify what various other say are the causes of resistance to change among staffs. After determining the causes of resistance to change, the literature review will then find the best model for implementing changes within an organization. The review will also identify the best leadership model that fits implementation of change within organizations. After the literature review, comparisons of the findings will be made against the problems defined in the case. Later, key strengths and weaknesses within the case of Energy Co. concerning the role of managers’ approach towards change will be identified. Finally, recommendations on how managers at Energy Co. can improve their approach towards change so as to combat staff resistance will be made.
Literature Review
Definitions
Myers et al. (2012) defined resistance as the act of people actively doing something they are not supposed to do officially, or equally, intentionally not doing something they are expected to do. Myers et al. continued to say that the reason why managers view resistance negatively is that it can obstruct them from achieving their goals. On the other hand, Van de Ven& Poole (1995) said that organizational change is an experiential entity of deviations in quality, shape, or state over time. However, it is worth noting that resistance to change is not a new thing, neither will it ever end because as Harvey & Broyles (2010) says, resistance is natural and necessary element of change. According to Harvey and Broyles resistance is not a negative part of change, but a positive one.
Employees can either demonstrate passive or active resistance to change (Payne & American Management Association, 2005). Active resistance is characterized by negative comments, faultfinding, disruptive behavior, and predictions of failure. On the other hand, Passive resistance is characterized by denial, concealed aggression, victim behavior, and depersonalization. Klewes and Langen (2008) expounded active and passive resistance to change by classifying the characteristics associated with both types of resistance into individual and group or organizational characteristics. The authors revealed that individuals with active resistance had features such as frequent contraction, criticizing the managers, counter arguments, agitated and frequently complaining. On the other hand, groups with active resistance demonstrate characteristics such as staff members attacking one another, power games, forming of cliques, and rumors. Contrariwise, individuals with passive resistance exhibit features that include: absenteeism, helplessness, inattentiveness, tiredness, slackness, and working to rule. On the other hand, groups with passive resistance are characterized by a tense atmosphere, high rate of illness, lack of teamwork, difficulties in making decisions, debating unimportant issues, and high fluctuation rate (Klewes&Langen, 2008).
Sharma (2007) argued that there are three types of resistance that employees can have towards change in an organization. The first type of resistance is referred to as emotional resistance, and it occurs as a result of employees’ feelings and attitudes towards change. The second type of resistance is referred to as rational resistance, and it is based on logic, reasoning, and refusing to accept the fact that change is happening. The third type of change is referred to as social resistance. These resistances results from social values, community values, political affiliations, and labor movement affiliations.
Why Staffs Resist Change
On his their part, Cummings and Worley (2009) tended to concur with Kotter& Schlesinger third source of resistance by saying that staffs resist changes in their organizations because of the uncertain future that change brings. By the future being uncertain, staffs wonder whether the skills and contributions they currently possess will be valued in future. Staffs are also uncertain whether they can adapt to the changes and work effectively to achieve the benefits that the new situation brings. In other words, Zimmermann (2002) said that staffs resist change because of the comfort that the status quo provides in terms of security. Arbuckle (2000) seemed to agree with Zimmermann (2002) because he argued that there are at least two reasons that make people resist change. According to Arbuckle, the two reasons are the cost or the effects of the change to themselves, and fear of unknown future. All those authors agreed with Kotter& Schlesinger (1979) in one way or another because the reasons that they provide in their work of why people resist change falls into all the categories provided by Kotter& Schlesinger.
Lussier and Achua (2012) stated seven reasons that make staffs resist changes in the organizations they work for. The seven reasons are the threat to the employees’ self-interests; lack of confidence in change succeeding; uncertainty; distrust in leadership; fear of manipulation; threat to personal lives. On the other hand, Payne & American Management Association (2005) had a unique way of stating why employees resist change. Their way of stating reasons that make people resist change was based on conditions, making it unique. The four conditions that increase the chances of resistance to change include: When expectations of employees are significantly disrupted; when change happens in an unexpected and unexplained manner; when change is imposed with new behaviors and roles introduced without prior explanation; when stakeholders’ feedback is ignored (Payne & American Management Association, 2005).
Transformational Leadership Approach when Implementing Change
Managers’ approaches and how they handle changes within the organizations play a vital role in deciding whether the employees resist changes or not. According to Shell (2002), managers should ask themselves three questions before they implement change within their organizations. The three questions are: What status of the professionals will the change affect? What social relationship of the employees will the change affect? Will the change impact the employees’ physical and economic security? Shell says that managers should expect one form of resistance or another if the change they are about to introduce within the organization touches on one of three variable. Lussier and Achua (2012) argued that effective leaders should not be too harsh on resistance or regard it as indiscipline that should be addressed through coercion or punishment. The authors said that effective leaders should inform, support, and motivate their employees in the change initiatives.
Effective communication should be done before, during, and after the change is implemented because it prevents misunderstandings, gossip and rumors, and conflict. According to Lentz (2012), a leader with good communication skills, change management skills, motivational skills, empowering skills, and one who has a vision is a transformational leader. Just like Lussier and Achua (2012), Beerel (2009) said that removing or firing the person who leads a resistance to change in an organization is not the solution. Beerel (2009)further said that effective leaders should work with such people by listening to them. Borkowski (2016) supported the assertions of Lussier and Achua (2012), and Beerel (2009) by saying that efficient managers should regard informal leaders with the utmost respect because they are important in the change process. According to Borkowski, informal leaders are the people within teams that the team members address their concerns and issues. These informal leaders provide feedback and criticism to the managers. Some of the characteristics of transformational leaders are accepting criticism and feedback (Bronwynne, 2007). This indicates that transformational leaders are the kind of leaders who embrace a good working relationship with informal leaders (Nelson & Quick, 2014).
Kotter (1996) came up with an eight-stage process that managers within organizations should follow to implement change while minimizing resistance. The eight stages are: developing a vision and a strategy; establishing the need of urgency; develop a guiding coalition; communicating the vision of change; empowering the employees to act; generating short-term achievements; consolidating the accomplishments and then producing more changes; anchoring the new changes in the organization’s culture. Still with the aim of implementing change within an organization successful by reducing resistance, Kanter et al. (1992) came up what he referred to as the “ten commandments of executing change.” The “ten commandments” are: Analyze, the organization and establish why change is needed; create a common vision and a shared direction; detach from the past; establishthe need of urgency; supporting a strong leader role; gathering a political sponsor; construct an implementation plan; establish enabling structures; convey, involve people, and be truthful; emphasize and institutionalize change (Kanter et al., 1992).
Besides Kotter and Kanter et al., Luecke (2003) came up with seven steps of how managers can implement change successfully with minimal or even without any resistance. The seven steps are mobilizing energy and commitments in identifying business problems and solution to these problems jointly; developing a common vision on ways to organize and manage competitive strategies; identifying the leadership; institutionalizing success by use of formal policies, structures, and systems; focusing on results and not activities; starting the change at the ends and not from the top; monitoring and adjusting strategies in response to challenges in the change process (Luecke, 2003; Beerel, 2009).
Synthesizing the Literature Review
Another thing that was learned from the literature review effective communication is necessary when managers are implementing changes within their organizations. Instead of manager firing or coercing employees who lead resistance to change, they should embrace communication (Lussier and Achua, 2012). Implementing a change within organizations require transformation leaders because they possess qualities such as excellent communication skills, change management skills, motivational skills, empowering skills, and vision (Lentz, 2012).On the other hand, (Kotter, 1996; Kanter et al., 1992; and Luecke, 2003) came up with steps that managers can employ while implementing change. Kotter came up with an eight-stage process that managers can use to minimize resistance when implementing change. Contariwise, Kanter et al. (1992) came up with what he referred to as the “ten commandments” of implementing change while Luecke (2003) developed seven steps of implementing change.
Organizational Analysis
One thing that arose from the case study is that staffs of this company are reluctant to accept the change that the management of this company has introduced. Some of the changes that the organization has introduced are aimed at enabling the delivery of centralized works planning and work scheduling through the use of handheld tracking technology and also a vehicle tracking technology. The changes will benefit the company in terms of smooth delivery of services and budget efficiencies. However, staffs in this company are not content with these changes. Their morale has gone down, and they are questioning how these changes can improve the performance of the company.
Staffs at Energy Co. are resisting change despite consultation being integrated into the change process. From the literature review, it can be said that this resistance is still there because the company lacks transformational leaders in its change process. Transformational leaders are aware of the power of communication before, during, and after the process of change. Transformational leaders also possess such skills as change management skills, empowering skills, motivational skills, and vision (Lentz, 2012). If the Energy Co. implemented the process of change with leaders who possess the transformational leadership skills, then the process of change is likely to be smooth and efficient because the chances of resistance would be minimized.
Key Strengths and Weaknesses of the Energy Co
One of the strengths of Energy Co. is rewarding of the employee who conforms to the procedures and practices, and also for finishing their assignments on time. Strength of the company is the comprehensive investigatory procedure that is there to identify the cause and rectify any issue that arises. The two strengths are vital in combating resistance. The first strength can prevent the staffs from demonstrating both passive and active resistance while the second strength can identify the staffs that sabotage the company’s structures’ as a result of resistance to change.
One weakness of the Energy Co. is in the decision-making structure. The company decision-making structure is hierarchical which means that it is the top management makes the decision and then these decisions flow down to the managers, then to the employees. Probably this is one of the reasons that the company is facing resistant from the employee during the process of change. As it was revealed from the literature review, communication is a vital thing in the change process. However, as compared to the horizontal communication of information, vertical communication has less is very formal and so it can create misunderstanding.
Recommendations and Action Plans
Conclusion
However, it is possible to implement changes within organizations with minimal or without any resistance if transformational leaders were involved in the process. Transformational leaders possess qualities that that can serve to satisfy almost all the employees in an organization during the process of change. Some of the qualities that these leaders possess include: motivational skills, change management skills, communication skills, and integration skills. Another thing is that communication should start even before the change process begin and should not end even after the process is completed. This way resistance to change can be minimized.
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