The Increasing Necessity For Organizational Change Commerce Essay

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The idea of change has increasingly become a necessity for organizations rather than an alternative that they wish to choose. Although it is usually associated with crisis, even the most successful companies have to face necessity of change. Ability to shift direction and to improve functioning of an organization can be assumed as one of the key competencies of contemporary business organizations. As the complexity of business life markets gets intense, organizations have become much more sensitive to any occurrence that take places in their environment.

While there have been various factors that force organizations to change, developments in technology, diminishing role of governments in business life and globalization are some of the main factors that necessitate organizations to revise the way they conduct businesses (Champy & Nohria,1996). Dynamic nature of business environment also influences customers' preferences on all kinds of products and services and therefore, being able to respond these shifting demands requires flexible organizations which can implement new strategies successfully.

Considering the fluctuations in external environment, the issue that concerns organizations most has been the scope of change. De Wit and Meyer (2004) have identified two basic paths for change.

Firstly, some organizations tend to adopt themselves to ongoing changes through constantly improving their operations by small alterations. These changes usually focus on improving existing systems by keeping fundamental structure of business same (De Wit & Meyer, 2004).

Secondly, organizations which conceive constant but small improvements as inadequate, tend to employ radical changes which refer to complete renewal of existing way of doing business. Parallel to the diversity in these approaches, methods to accomplish desired change plans vary in terms of their scope and impact.

Although it is a very frequently repeated discourse that change is inescapable and organizations must change, the failures or low rate of success in change programs discloses the necessity of additional work on the subject of change management. According to statistics reported by leading corporate reengineering practitioners, success rate of change management, in Fortune 1000 companies are quite below 50% (Strebel, 1996). The gap between intentions and outcomes, despite the amount of existing studies and theories, has motivated us to make further research on the issue.

One may list various causes for failures in change resistance have been one of the most salient elements of those unsuccessful attempts. Although the idea of change has a significant popularity in today's societies, shifting behaviours of individuals has not been an easy task. It may seem perfectly acceptable in written papers or oral discussions but people in organizations usually tend to resist change. Since every change can be accepted as a transition to a new situation which individuals are unfamiliar with, giving up old way of doing things and shifting to a new system, unsurprisingly produce resistance.

There is a vast amount of arguments in the literature. In the late 1940s and 1950s, resistance to change had been identified as an important obstacle for implementation, and this perception has been still preserving its validity. However, some researchers have also tended to emphasize the constructive value of resistance because they believe not every change initiative is geared to produce good outcomes.

While resistance to change has been usually conceived as a quite essential human response, individuals may have different reasons for their resistant behaviours. Psychological factors stemming from negative expectations about change lead to manifestation of these behaviours. On the other hand, cultural atmosphere within an organization which is characterized by obsolete ideas and beliefs can also lead its members to be unresponsive to change. Alternatively, interests of groups or individuals and their struggle for power can turn resistance into a response resulting from political concerns (De Wit & Meyer, 2004).

STATEMENT OF THE PROBLEM

As an effort to gain deeper insight on change management, the researcher is significantly interested by the high rate of failures in change programs and problems and unexpected outcomes arise as a result of employee resistance to change. Based on the information obtained through literature reviews and case studies on change management, with a special focus on resistance to change, the research will developed a framework which describes key concepts in managing resistance successfully to prevent its negative effects and, if possible, benefit from its constructive value.

However, what has motivated and shaped research has been the lack of a comprehensive theory that can describe and analyze critical elements of resistance management. The researcher believes that to cope with resistance successfully, a careful analysis of resistant behaviours is necessary. Application of models as a result of the research, may enable managers to distinguish various responses of individuals to change and to take valuable elements, if exist, which are inherited in these responses.

OBJECTIVE / PURPOSE OF THE STUDY

The purpose of the study is to understand the role of resistance in the process of change management. The researcher believes that, the outcome can provide a deeper understanding of key factors in implementing change programs. By referring to resistance, the researcher, do not necessarily see it as a barrier that needs to be eliminated; instead, it is aim to understand the concept of resistance in a wider scope to identify crucial issues that can influence process of change in a positive way. In other words, the issue that is concerned in this thesis is to find an optimum way of managing resistance which takes all the aspects of resistance into consideration. It is believe that such an approach can be influential in terms of minimizing failures or dissatisfactions in change programs.

By studying the research question and issues related to it, the researcher hope to bring a new perspective about resistant behaviours of employees during the change process. Understanding, describing and analyzing roots and symptoms of resistance can enable us to construct a framework to implement change programs more successfully. Emphasis on resistance also brings the opportunity to use it as a constructive tool in terms of determining the defects of existing change programs.

Concerning the change implementation, this study aims to locate and to emphasize critical factors in management of resistance. The role of leaders in terms of creation and transmission of the change message through communication and participation possess a significance place in our understanding. From this perspective, the researcher believes that by highlighting the importance of these activities, this research will be able to depict a comprehensive picture explaining the impact of leaders/managers in resistance management.

It is also hope that this study will be capable of contributing to scientific community by presenting logical arguments and providing new spaces for further research. Additionally, considering the implications of the research, it would also be a valuable source for individuals in business life to locate different problems related to resistance and to take appropriate actions to handle them.

RESEARCH QUESTIONS

Parallel to the diversity of arguments existed in the available literature, the researcher, preferred to approach resistance by taking its both negative and positive aspects into consideration. However emphasize the constructive aspect of resistance which managers can benefit during change processes. Under the light of this general purpose, guiding question of the research is constructed as follows:

Concerning the nature of resistance, what kind of a strategy is necessary to manage resistance effectively during the change implementation?

How goal conflict between firms and employees contribute towards employee's resistance to change as a major cause?

How to harmonise or reduce the intensity of goal conflict between firms and employees, to overcome employee's resistance?

Why do people resist change so strongly?

What can be done to overcome this resistance?.

Giving a comprehensive answer to above question constitutes the essential goal of this study. The questions involve two basic concepts, change and resistance, and these shall be analyzed deeply throughout the research process. While understanding the nature of change and the process of implementation can be assumed as the umbrella of study, the researcher will also focused on resistance in terms of its sources, symptoms and dimensions.

SIGNIFICANCE OF THE STUDY

The study shall help managers to equip themselves with the principal guidelines of change management and appreciate and understand how 'change' increases the magnitude and intensity of goal conflict and how it contributes towards employees' resistance to change.

Change is inevitable in human, societal and organisational set-up, since when managed properly will positively contribute to the sustainability of the organisation. 'Positive' change brings in new and improved ways of doing old things.

DELIMITATIONS

Oti-Yeboah Timber Company Limited in Sunyani is selected because the researcher lacks time and financial resource to extend it other related company for comparative analysis. The research is set within the boundary of 'why employees resist change' and possible models to be recommended for management to adopt to avoid unnecessary resistance and how to manage it if it occurs.

LIMITATION OF THE STUDY

One of the major limitations to this study will be time. Time constrains will hinder the effort of reviewing every possible literature on the topic under research, as well interviewing all necessary stakeholders (employees, managers, supervisors). Collection of primary data couple people reluctant of respondents to co-operate with researchers, due to ignorance and literacy is another headache.

Financial constrains is also worth mention. Research requires availability of adequate resource in terms of money, and as a student, adequate funds will be difficult to access.

PRELIMINARY DEFINITION OF TERMS

Resistance: Resistance is the resultant employee's reaction of opposition to organisational change (Keen, 1981). According to Zander (1950), resistance is a behaviour which is intended to protect an individual from the effects of real or imagined change.(cited in Dent & Goldberg, 1999, p. 34). Folger and Skarlicki define resistance as employee behaviour that seeks to challenge, disrupt, or invert prevailing assumptions, discourses, and power relations. ( Folger & Skarlicki, 1999, p.36). Resistance is defined as either taking action against change or being passive to respond it (Brower a& Abalofia, 1995). Parallel to this, Ashforth and Mael (1998) define resistance as "intentional acts of commission (defiance) or omission. Piderit, 2000 defines resistance as a response to frustration and aggression caused by the change initiative. Watson (1982), defines resistance simply as reluctance of employees.

Change: De Jager (2001) who defines change as "the act of replacing old with the new" De Jager (2001) who defines change as "the act of replacing old with the new" Organisational context, change means a shift or alteration in the current culture, which means the way we do things around here.

Change management

Organisational change

ORGANISATION OF THE CHAPTERS

This study is organised into five chapters. Chapter one deals with the introduction, problem statement, research questions, objectives, significance and scope of the study. Chapter two reviews a wide variety of literature on financial sector development. These include an overview of the banking sector, financial innovations and savings. Chapter three provides the methodology, data description and an index of financial innovation. Chapter four covers analysis and interpretation of results. Finally, chapter five presents policy recommendations, and a summary of the study.

CHAPTER 2

LITERATURE REVIEW:

Even though the concept of resistance to change is not a new one, no consensus about its content and the ways it is experienced has existed among the researchers who have studied it. It is usually repeated, in both academic and business world, that many of the change initiatives one way or another have produced poor results. The rate of fail in organizational formation has been fifty to seventy per cent (Hammer & Champy, 1993).

De Jager (2001) who defines change as "the act of replacing old with the new" Organisational context, change means a shift or alteration in the current culture, which means the way we do things around here. When changes of some sort need to be made, conflicts are already pre-programmed, as firm needs and wants to change but employees have different priorities. There can never be a change without conflict (Boonstra, 2004)

The reasons for change have been categorised by many authors as follows:

Change as a measurement or solution to complex problems in organisation (Woodward & Nancy, 2007)

Incremental and radical change (Burnes, 2004)

Planned and unplanned change (Fernandez, 2007)

Structural change (Drucker, 1990)

Continuous and episode change (Perkins et al., 2007)

Technological change (Garg and Singh, 2006)

Hultman (1979), argues that it is a fallacy to accept change as inherently good because its success depends on the outcome it bring about and to assess the performance of a change effort certain period of time is needed.

Flower (1962) argues that many change attempts fail because it is usually misunderstood by those managers who actually initiate change. In other words, managers fail in overcoming resistance because they think change process as quite straight forward, like moving one situation to another. However, for successful transition it is important to understand how this attempt had been conceived by the employees.

Resistance is the resultant employee's reaction of opposition to organisational change (Keen, 1981). The restraining forces are deemed the potential sources of resistance to planned changed (Stoner and Freeman, 1992)

Kreitner (2004) also approaches the resistance by focusing on possible reactions from employees and provides managers with a framework to apply in dealing with resistance. He basically identifies three different stages in a change process.

Kegan and Lahey, 2001, suggested that, the approaches which explain resistant behaviours of employees have varied substantially in accordance with the researchers' point of views. The issues such as organizational dynamics, relations between managers and employees, and perception of change are some of the most referred ones to identify the roots and symptoms of resistant behaviours. They further explained that, employees resist a change by relying on individual psychologies.

Most literature tends to write a prescription for eliminating resistance by focusing on the relationship between managers and employee. He suggested that, "employees and organizations have reciprocal obligations and mutual commitments; both stated and implied that defines their relationship" (Strebel, 1996, p.87). He called these mutual agreements as personal compacts and argues that employees are likely to resist an idea which can damage these personal compacts

It should be noted that even in normal situation, goal conflict exists between firms and employees, but the magnitude and intensity of this conflict is what matters. Goal conflict is defined as the degree to which individuals feel that firm's goals are incompatible and conflicting with their own goals and needs, and make it difficult to achieve them (Locke et al. 1994).

THEORETICAL FRAMEWORK/CONCEPTUAL BASE OF THE STUDY

As one of the pioneers in development of the concept of resistance to change, Lewin (1951) had advanced a theory, called force-field theory, focusing on resistance during the process of organizational change. According to Lewin (1951), two different types of forces are embedded in an organization. While one group of them works in favour of change, the other group opposes it. When these two groups of forces are balanced, the organization experience inertia, and in order to change this equilibrium, forces for change need to be strengthened and resisting forces should be weakened. The responsibility of managers who plan to implement change is to work towards diminishing the impact of resistance forces while on the other hand reinforcing the forces for change.

While Lewin's view on change represents a dialectical approach involving opposing forces, Zander (1950) explains resistance by focusing on individuals and their attitudes toward change. He perceives resistance as a type of behaviour of an individual who aims to protect himself and his interests from possible impacts of the change efforts. What seems also significant in his analysis is the distinction between the causes and symptoms of resistance. Therefore, he urges manager who has to deal with resistance in change implementation to focus on causes instead of merely eliminating the symptoms of resistance.

With regards to organisational change models the following five models are common and shall be examined by the researcher:

Kurt Lewin's Three Step Model and Force-Field Theory,

John Kotter.s Eight Step Model,

Colin Carnall.s Change Management Model,

Nadler and Tushman.s Congruence Model and

Peter Senge and Systemic View on Organizational Change

There are other organisational change and resistance theories such as: principal agent theory, goal theory, stakeholders' theory, neoclassical, neo-Keynesian and managerial theory of firm. The principal agent theory, neo-Keynesian, and managerial theory explain the conflict between firms and its employees' goals and interest. However, the stakeholder theory and principal agent theory has been studied and matched with the situation of the firm understudying to provide solutions and suggest recommendation for reducing and harmonizing goal conflict, to overcoming resistance to change.

Those theories are essential to understand the basis of organizational change practically. In general, organizational change efforts are classified into three different approaches in the literature to investigate organizations (Hamburger & Yitzchayak, 1998). The first approach comes from classical management theory that focuses on the empirical facts and practical results by describing organizations as the formal unit. The second is the sociological approach that analyzed the sociology of organizations by focusing on the different identities and classes within the organizations, which create conflicts with the basis of socio-economic differences. The third approach that we will also use for our description comes from the psychological approach, which focuses on the individuals and their psychological conditions in order to describe the organizations.

For many people, the term resistance has negative connotations and this attitude reflects itself in academic studies too in the form of solutions to prevent resistance. Parallel to this, "resistance has been classically understood as a foundation cause of conflict that is undesirable and detrimental to organisational health." (Waddell & Sohal, 1998, p.543).

Classical organizational theory has had a big impact on this general tendency to see resistance as a problem which needs to be eliminated. The dominant idea in classical theory, perceives unity and coherence as the fundamental prerequisites for maximization of performance in production and development. Therefore, discrepancy and pluralism in terms of ideas and attitudes are considered to have a negative impact on organizational performance (Waddell & Sohal, 1998).

According to him, because organizations are continuously subjected to internal and external forces to change, during this period, resistance may function as a stabilizer, and balance these internal and external demands. From this point of view resistance provides organization with, what Hultman called, a rhythm, that is crucial for survival of the organization.

Litterer (1973) addresses apathy and passivity as important obstacles for implementing change and argues that conflict and resistance can be desirable in terms of providing organization with energy and motivation during change process. However, it has to be noted that authors who have proposed these positive ideas about resistance, also pay attention to the amount of conflict and resistance. In other word they do not deny that too much conflict can lead to distraction of attention from the core of issue (Waddell & Sohal, 1998).

CHAPTER 3

METHODOLOGY

Introduction

This chapter describes the methods and procedures used to collect and analyse data in order to determine how Valco Hall can be sustainable and eliminate wastage. It includes background of the study area, the study design, population of the study, sampling technique, sample size and sampling procedure, collection, and data processing and analysis.

BACKGROUND OF THE STUDY AREA .

Sunyani is the municipal capital town of Brong Ahafo Region. The 2000 census revealed that Sunyani municipality has a population size of 179,165 people. 89023 are males and 90142 are also females. According to ghanadistrict.com, Sunyani municipality is located in the heart of Brong Ahafo Region, between Latitudes 70 55'N and 70 35'N and Longitudes 20'W and 20 30'W. The municipality shares boundaries with the Wenchi District to the North, Berekum and Dorma Districts to the West, Asutifi District to the South and Tano South District to the East. In terms of occupation, about 48% of the total population engaged in agriculture production. About 24% of the population are also employed in the service sector, 15% are employed in the commerce sector whiles the other 13% of the total population are also employed in the industry sector. Among the Municipal attractions are the Cocoa House and the Roman Catholic Cathedra. Apart from the attraction sites, the residents in the municipality are also sociable to visitors which entreat them to come back for another visit. The educational background in the municipality according to the brochure of the district shows that it ranges from basic level to the University level. The municipality boost of 107 Junior High Schools made up of 76 being government and 31 being private schools. There are 12 Senior High Schools, made up of 7 and 5 government and private schools respectively. There are two polytechnic schools, College of Renewal National Resources and the Catholic University College of Ghana, Fiapre, are also in the municipality.

Study Design

A study design is a plan or blue print that explains the basic structure of the study. It provides the procedural outline for the conduct of a study (Amedahe, 2004). The researchers adopted a descriptive survey design to collect data for analysis. The survey design was consistent with the description by Sarantakos (2005), and Fraenkel and Warren (2002) that surveys are methods of data collection in which information is gathered through oral or written interviews, and could be structured, more formal, or a combination of the approaches. The authors stress the need for consistency throughout the exercise to curtail errors.

Considering the various elements inherited in the concept of resistance and its complexity, the researcher found it much more convenient to employ qualitative design rather than quantitative. Although, initially intend the researcher had first hand empirical data through investigating the issue on the field, it appeared impossible because of certain limitations. When we consider the amount of time that is necessary to study resistance empirically, it takes much more time than we had to prepare this study. In addition to time constraint, studying resistance in a real organizational setting demands certain amount of financial resource which also limits the initial plans.

THE RATIONALE OF QUALITATIVE RESEARCH

Qualitative methodology is a very broad discipline and basically refers to the research processes in which findings are obtained through non numerical or statistical techniques (Strauss & Corbin, 1990). Its purpose is to reach an in-depth understanding about social realities and patterns create them.

Strauss and Corbin (1990) have identified three basic elements of qualitative methodology. First is the data which is obtained through interviews, observations, analysis of documents and materials, second is procedures which are employed by the researcher to evaluate collected data and third is the final reports, in written form or verbal, which states the findings and implications of a study. Parallel to the essential aim of qualitative approach, in terms of understanding why and how of social realities, conducting a qualitative research usually necessitates small but focused samples to search deeply a given social phenomenon.

STRENGTHS AND WEAKNESS OF QUALITATIVE DESIGN

Martyn Shuttleworth (2008) suggested the following as the advantages and disadvantages of qualitative research design. Qualitative techniques are extremely useful when a subject is too complex to be answered by a simple yes or no hypothesis. These types of designs are much easier to plan and carry out, useful when budgetary decisions have to be taken into account.

The broader scope covered by these designs ensures that some useful data is always generated, whereas an unproved hypothesis in a quantitative experiment can mean that a lot of time has been wasted. Qualitative research methods are not as dependent upon sample sizes as quantitative methods; a case study, for example, can generate meaningful results with a small sample group.

He stated that, whilst not as time or resource consuming as quantitative experiments, qualitative methods still require a lot of careful thought and planning, to ensure that the results obtained are as accurate as possible.

Qualitative data cannot be mathematically analyzed in the same comprehensive way as quantitative results, so can only give a guide to general trends. It is a lot more open to personal opinion and judgment, and so can only ever give observations rather than results.

Any qualitative research design is usually unique and cannot be exactly recreated, meaning that they do lack the ability to be peer reviewed.

STUDY POPULATION

Twumasi (2001) defines population as the group of elements that a researcher is interested in studying. Osuala (2001) suggested that population means identifying characteristics which will identify each unit as being a member of a particular group. According to Fraenkel and Warren (2002), population refers to the complete set of individuals (subjects or events) having common characteristics in which the researcher is interested. For the purpose of this study, the target population comprised employees, supervisors drivers, security and management.

RATIONALE OF THE POPULATION

The population for this study will be selected from the staff/employees and management of Oti-Yeboah Company Ltd. The Staffs will be chosen because they are the recipients of management decisions, while management will be chosen since they make the long, medium and short-term decisions.

SAMPLING TECHNIQUE/METHODS/SAMPLING SIZE

According to Amedahe (2004), sampling is the process of selecting a portion of the population to represent the entire population in a study. A sample consists of a carefully selected unit of the population for a particular study (Sarantakos, 2005). As Israel (1992) puts it, many researchers adopt different ways to determine the sample size on the basis of the confidence level and precision required. The general notion held by many researchers is that, the larger the sample sizes the lower the risk of sampling errors occurring. However, Best and Kahn (1998) contend that the sample size depends on the nature of the population, the kind of data to be elicited, the nature of the analysis to be carried out, and the availability of funds for the study. Due to resource and time constraints, as well as the need for specific information, a cross-section of the population was sampled for the study.

Sampling technique according Twumasi (2001) is a process adopted in taking any proportion of the population or universe as a representative of that population or universe.

He again explained Sampling technique as a process of selecting units (example, people or organisation) from a population of interest so that by studying the sample the researcher may fairly generalize the results back to the population from which the sample was chosen. Nachmias, et al. (1976) explained purposive sampling as, the researcher been adhered to the objectives of the study and select respondents who can answer the research questions. The purposive, as well as the sampling technique were used to collect data from staff and customers for the purpose of this study.

RATIONAL FOR THE SELECTION PROCEDURE AND THE SAMPLE SIZE

A sample size of 60 respondents was chosen comprises sixty (40) employees and ten (20) management team and supervisors. Majority of the research was based on the employees, since they are mostly affected by the decisions of management.

PRE-PILOT TEST

STUDY VARIABLES

The variables for the study include: resistance, goal conflict, organisational and change management.

INSTRUMENTS

Description of how instrument was developed

Evidence of how face, content, and construct validity was determined

How reliable the instrument is (provide reliability coefficient)

How was items format determined

Indication of how scoring will be done

DATA COLLECTION

To ensure successful of this work, both primary and secondary data will be used. Primary data is gathered from the field. Such information can be collected through questionnaires, observation, face-to-face interviews and among others. Questionnaire defined by Osuala (2005), is series of structured questions, which are related to a research topic and also directed to a respondent with the aim of gaining first hand knowledge on the topic or the perception the respondents have about the topic. Questionnaire was used because it helps the researcher to obtain first hand knowledge of the respondents concerning why they resist change.

The collection of data shall be schedule as follows: The first will be used to distribute and educate stakeholder on the essence of the research. The collection period shall last for four weeks. Intermittent interview schedules shall be conducted with employees who are illiterates.

The researcher intends to collection the data personally, since that will give it much credibility and reliability.

DATA ANALYSIS

The raw data obtained from the survey were scrutinised for validity and reliability by way of sorting, editing and coding in order to eliminate or at least minimise errors, omissions, as well as other discrepancies capable of compromising sound judgment. The organised data was subsequently entered into the Statistical Product and Service Solutions (SPSS) software to facilitate data description and analysis.

Descriptive statistics in terms of frequencies was used to present the quantitative data in the form of tables for further interpretation and analysis using percentages. Therefore, qualitative and quantitative techniques were employed to present, describe, analyse and interpret data collected.

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