Employee Resistance And Effects Of Their Prior Outlook Business Essay

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In the state of Kuwait, great pressure on market service has been recognized. Retail banking seek effortless to improve customer retention by providing and offering all services required by customers. The current trend that affects retail banking in the state of Kuwait is the increase demand of Islamic banking services. To respond to these needs, retails bank has greatly considered these requirements and study to implement and open Islamic banking services (e.g. accounting, investment tools and transactions) including well-established conventional banks. In the state of Kuwait, X bank has transformed from conventional bank to Islamic bank. X bank has converted fro conventional to be a full Islamic financial services provider. Change from old system to new system could not be done without any resistance.

X bank employees has experienced change, however their resistance to this change has not been fully studied and considered. Resistance to change is the action taken by individuals and groups when they perceive that a change that is occurring as a threat to them. The threat need not be real or large for resistance to occur. Other banks in Kuwait, whom considered opening partially or full Islamic services are questioning the extent of employees resistance how employees resist and their personal style they may influence the success of their organization change. Thus, studies on how employees experienced change needed to be considered and studies to better enhance our understanding of how retail banking could reduce any potential resistance, improve their productivity and successfully implement organizational future change.


This study attempt to explore the effect of employees experience of X bank on change, and seeks to identify possible reasons for differing perspectives on change both before and after implementation. In particular, the impact of an employee's personal prior outlook is considered. Employee's personal experience in this study is defined as their attitude on change in general and the level of their resistance. The current study has incorporated the well-know framework namely "Resistance to Change Scale" (RCS) that presented by Oreg in 2003. The experience of X bank employees on change thus has been measure and analyzed on the scale of Resistance to Change Scale (RCS).


When change take place or new system implemented, the responsibilities of organizational members can be drastically altered. Employee resistance is one outcome of this process. However, resistance can be reduced, if not eliminated, by attending to the rights of employees through involvement and engagement in the active participation in all aspects of the implementation process. The purpose of this study thus can be reported as to explore the experiences of X bank employees related to the change of a courts system. The totally change of the X bank from conventional bank to full Islamic financial provider has been thus considered, and the employee experiences of X bank has been studied and investigated toward these new changes.


To achieve the purpose of the study, the current study attempts to answer the following questions:

To what extent the employees of X bank are prior positive outlook to the new change?

To what extent the employees of X bank are negative assessment of the new way after the change?

What is the effect of X bank support and training courses provided on employee's prior positive outlook and negative assessment after changes?

What is the overall Resistance to Change (RTC) of X bank?

What is the relationship between (RTC) and X bank prior positive outlook and negative assessment of the new way after change?


The significance of this study is the potential contribution at two primary levels: theoretical and practical. At the theoretical level, The study attempts to provide a review of the change literature focusing particularly on resistance. This review is included to assist in identification of potential gaps in current change literature. Furthermore, literature on change and employees experiences are considered and discussed to enhance the existed body literatures. Thus, the present study is expected to bridge a gap in the literature for empirical research focusing on change and resistance.

For the practical contributions, this study is expected to make a contribution by providing additional evidence to retail bank management on the importance of reducing employee's resistance and improve the degree of their involvement to better enhance the organizational change. Exploring employee's perspectives toward this approach is very important to the retail banking top management in order to reduce resistance and thus improve their organizational performance and competitiveness.


No study can be free of limitations; the current study may face some limitation due to the following:

Scarcity of literatures has indicated, few studies have addressed the human issue and experiences toward changes. Studies have been extensively study the change from the organizational perspectives not from employee's perspectives.

The limited of resources (time and financial resources) affect the distribute process of questionnaires to all the employees of X bank.

Employees maybe unable to answer some questions, especially employment information due to different reasons such as the security, privacy and the organizational cultures (data were not desirable to be given to others as these data were considered as private to the employees).

Employees may not be cooperative to assist the researcher

Delay in returning the surveys from some employees could increase the time-scale of analyzed the result of study.


This study expected to comprise six major chapters. Chapter 1 provides a discussion of nature, purpose and significance of the study. Chapter 2 presents an extensive review of the literature on bank selection criteria for the purpose of laying out the theoretical foundation of the study. Chapter 3 presents research methodology, it discuses the population and sampling, data collection procedures, questions of the research and instrumentation. Chapter 4 presents the result of data analysis. Chapter 5 reveals the discussion of the study. Finally, chapter 6 presents Summary, conclusion and other implications of the study.



In order to understand the concept of employee resistance, the literature reviews attached to this study will critical define what is meant by the term resistance. Studies and research on employee resistance and prior outlook on change will be discussed and analyzed to better enhance out understand and to be the framework to conduct the current study and analyze the results.

The prior study of Alvin Zander (1950) has defined resistance to change as "behavior which is intended to protect an individual from the effects of real or imagined change". Later, and at the same bases, studies has defined resistance as "any conduct that serves to maintain the status quo in the face of pressure to alter the status quo" (e.g. Zaltman & Duncan, 1977). Folger & Skarlicki (1999) defined resistance as "employee behavior that seeks to challenge, disrupt, or invert prevailing assumptions, discourses, and power relations". In their study Folger & Skarlicki (1999) suggested that "organizational change can generate skepticism and resistance in employees, making it sometimes difficult or impossible to implement organizational improvements".

Furthermore, Coetsee (1999) uttered that "any management's ability to achieve maximum benefits from change depends in part of how effectively they create and maintain a climate that minimizes resistant behavior and encourages acceptance and support". The notion that employee resistance can be overcome cognitively suggests that negative thoughts or beliefs about the change exist.

Studies such as Waddell and Sohal (1998) have examined the organizational level, the result of their study suggested that resistance is a function of four factors; rational, non-rational, political and management factors. When considering organizational inertia or resistance to change, it is also important to consider the contribution made by the individuals within the organization. Furthermore, George and Jones (2001) have recognized that an individual resistance to a change is due to having cognitive and affective elements. Literatures and studies in the area of resistance to change reveals that a growing recognition to the emotional aspects of change within organizations, and marks a change from the belief that as long as a rational explanation and compelling reason is provided, then change will occur.

According to the study of Goodstone and Diamante (1998) it is not sufficient to believe that by giving employee's information that indicates the need for change will make them change. Thus we can say that if an organization require behavioral change at an individual level in order to change at an organizational level, the issues of the emotional impact of change would be paramount important to closely investigated. Similarity, in his study Diamond (1996) has identified the failure of technology transfer, that there is an emotional component to change and that it cannot be viewed as an entirely rational process; 'successful innovation and adoption relies on an individual's openness to learning and change' (Diamond, 1996). Being able to understand and in some cases predict the extent of resistance that may be encountered at the level of the individual would assist managers to plan appropriate change strategies taking such factors into account.

Some literature and studies have fails to consider the impact of change on employees. For example, Balogun and Jenkins (2003) uttered that "the employees need to be enabled to re create their ways of working, their daily routines and practices. Whilst change can be imposed by senior managers, the detail of what individuals need to do differently to meet the aims of change cannot". Balogun and Jenkins (2003) thus are arguing that employees are not addressed and involvement in the organizational change. For effective change to occur, individuals need to be actively involved in knowledge creation in order to effect change.

In his study, Barrett et al. (1995) has explained that "change is not something that comes from the outside and alters the inside of a community" This implies that considering the individuals when implementing change is critical. The current study thus targeted at further understanding the nature of individuals and the extent to which this can impact on change. The problem statement presented next is the main driver force for conducing this empirically study.



Quantitative research context will be conducted to achieve the purpose of the study. The research will carried out through a survey method. The targeted sample are X bank employees in the state of Kuwait and the recent change from being conventional bank to full-Islamic financial provider will be considered from the employee perspectives and experiences.


The study deemed the survey questionnaires as an appropriate method of collecting data, literatures indicated that large number of research participants in questionnaire approach when the researcher is able to clearly articulate the information of interest and have appropriate measures of variables (Sekaran, 2003). As results, the researcher has adapted a previously validated measure of resistance to change. The Resistance to Change Scale (Oreg, 2003), was used in conjunction with a range of statements relating to individual's outlooks prior to change and after change implementation. This approach to data collection allowed for information to be collected from a large number of respondents in order to analyze differences between individuals with varying scores on the Resistance to Change Scale (Oreg, 2003).


The questionnaire was written in English language. Using Six-point agreement scale questions, the questionnaire form has been developed from prior studies primary the study of Oreg, (2003). The questions were designed to identify the employees' reactions toward implementing the new Islamic financial system in X bank. Each employee received three-page questionnaire. The first address the four diminution of Oreg (2003), which are (Routine seeking, Emotional reaction, Short-term focus and Cognitive rigidity). The second part asks respondents to rate their prior outlook to changes and their negative assessment after changes. The final section depicted for demographic factors. The survey is attached in Appendix 1.


As the researcher has slightly modify the survey items to better address X bank in the state of Kuwait, the researcher will pre-tested the survey by incorporating validity tests available with the SPSS software package. The collected data thus will be analyzed and tested using the SPSS to ensure validity and reliability for the interpretation and results.

Note: study tools, population and sampling and survey distribution process will be explained later in details. The results, discussion and conclusion are the final chapters of the study.