Employees Resistance Towards Organizational Change

Topics: Principal-agent problem, Change management, Goal Pages: 67 (21454 words) Published: January 31, 2013
Employees Resistance towards Organizational Change

Blekinge Institute of Technology
School of Management
Ronneby, Sweden

Supervisor: Göran Alsen

Authors: Kamran Khan
Masood ur Rehman

Master Thesis in MSc. Business Administration

JUNE 2008

This thesis is submitted to the School of Management at Blekinge Institute of Technology/Blekinge Tekniska Hogskola in partial fulfillment of the requirements for the degree of MSc. in Business Administration. The thesis is equivalent to 10 weeks of full time study and 15 ECTS.

Contact Information:
Authors: Kamran Khan & Masood ur Rehman
E-mail:kamranarasha@yahoo.com
mrehman200@hotmail.com

Blekinge Institute of Technology,
School of Management,
P.O. Box 520,
SE-372 25 Ronneby

Internet: http://www.bth.se/mam

Telephone: +46 455 38 50 00
Fax: +46 457 271 25

ACKNOWLEDGEMENT

We want to show our sincere gratitude to all those who made this study possible. First of all, we are very thankful to the helpful staff and all the faculty of BTH School of management. One of the most important tasks in every good study is its critical evaluation and feedback which was performed by our supervisor Göran Alsen. We are very thankful to our supervisor for investing his precious time to discuss and criticize this study in depth, and explained the meaning of different concepts and how to think when it comes to problem discussions and theoretical discussions. All this, made our tasks very interesting and challenging for us, it also provided us an opportunity to remove any flaws and weaknesses. A warm thanks to Henrik Sällberg, Marie Aurell, and Anders Nilsson who provided us guidance on how to start. We appreciate the efforts of all the staff, senior managements and owners of the firm understudy, who so openly and warmly welcomed us to use previous observations and take in-depth interviews and discussions about the work. Our sincere thanks go to our family members, who indirectly participated in this study by encouraging and supporting us.

Kamran Khan &
Masood ur Rehman

Background
Organizations perceive change as very important for its survival and prosperity in today’s most competitive environment and new business challenges. They make change initiative to keep up the pace with changing environment and new challenging competition. The success and performance superiority of organizations are very much dependent on its ability to align its internal arrangement with the demand of external world. While studying the change literature, the concept of change and its differentiation/types seem very ambiguous and it was very difficult to understand the overall picture of change from the scattered literature. As different authors have defined change, based on their differentiation, in different manners, e.g. Schien defined change as it can be natural evolutionary, planned and unplanned change, Leavitt expanded the technical-social (technical & social change) framework, by adding structural change (Leavitt, 1965). We will try to present somewhat clear and complete picture of organizational change based upon the literature and empirical study, which according to our point of view is very important for understanding change and its major problem i.e. employees resistance to change (the main area of this study). Our empirical study is based on a firm operating in a developing economy, which was under severe pressure from external environment and internal problems, and made it very important for its survival to introduce a major change program. Change as an important factor has been discussed by different authors as, ‘change is the only constant’ and very important for the firm. But managing change is very challenging & complex and great amount...

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