Overcoming Resistance to Change

Overcoming Resistance to Change

Reasons for resistance to change:

Financial costs

  • 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.