Overcoming Resistance to Change
Reasons for resistance to change:
- Cost of purchasing new equipment
- Cost of redundancies
- Cost of retraining employees
- Costs associated with structural reorganisation of the business
Purchasing new equipment
Changes in a workplace often necessitate purchasing new equipment, such as new computers. Can lead to:
- Improved processing flexibility
- Improved processing speed and shorter lead times
- More consistency in production
- Higher overall quality of processing
- Reduced wastage and losses from equipment failure
Redundancy payments: money given to employees when they are forced out of their job because their position is no longer required or relevant.
Retraining: arises from change that causes a reorganisation of the business’s internal hierarchy or from the acquisition of technology e.g. computer software.
Reorganising Plant Layout
- Can have high costs associated
- Can lead to loss of productivity when adapting to new work processes
Inertia: describes a psychological resistance to change. A feeling of uncertainty or fear of the unknown, when change is imminent or pressing, can lead people to resist.
Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.