Organizational change affects all employees at some point in their career. There are several tools available which help companies faciliate a postive change experience.
A firm’s decision to close down an existing plant may be viewed as a case of disinvestment or disposing of a current investment. From a company standpoint, closing down a plant can be seen as industrial restructuring with the overall goal of increasing the efficiency and productivity of the firm. The destruction of jobs that follows this decision is considered in the company’s disinvestment decision. The impact of this change affects individuals differently than the company as a whole.
While a monumental change such as a plant closing can be seen as a necessary cost of doing business by the company, the employees affected by this change are likely to resist it. Anytime change is set in motion, companies should expect resistance. It is a natural tendency for people to reject what they perceive as a threat to their livelihood. The more drastic the change, such as shutting down an entire plant, the more intense one can expect the resistance from those most affected to be. A company’s financial status will likely be driving the decision to close down a plant. The company may see this as positive step in reducing the level of debt of the firm thus allowing them to move toward improved overall health and stability of the organization. Employees may see these same financial constraints as a method of increasing the financial status of the company without any consideration of the effect this has on their individual lives.
There are several diagnostic tools that company’s can use to identify and start to overcome resistance to change when implementing a major change. Tools such as a force field analysis which diagrams visually the forces that act for and against an impending change may help the employees understand and accept the changes being implemented. The force field analysis presents the company’s current situation and the situation as it will be once the change is implemented. It shows both the pros and the cons of implementing the decision. While the end result may still be the same (i.e. the plant is closed) by depicting that the company has considered all options, the company may be able to reduce some of the opposing force. The natural tendency when change is forced on people is to become combative or uncooperative. Showing that the company has taken into consideration the impact change will have on its’ employees may help reduce some of the resistance to change.
Actively involving the employees in the change process from the beginning may solicit some commitment from the employees to accept the change. The company should continually communicate and educate the employees regarding the status of the change. The company should also recognize that employees will need support and guidance and they should be prepared to offer some conciliation to the employees. The company should strive to facilitate support versus resistance from the employees by showing they have weighed the pros and cons of their decision, they recognize the hardship their employees will encounter and they are willing to help make the transition as smooth as possible.