Problem Statement
The employees working in the banking sector are often reluctant to accept organizational change, even if this transformation can improve a business’s performance. In particular, they do not readily adjust to the merging of separate departments. It should be noted that this transformation entails the adoption of new performance standards and workplace procedures.
This resistance can take many forms; for example, one should mention that some people tend to adhere to previous workplace procedures, and they usually do it at a time when management does not closely monitor their performance. Additionally, they can display little commitment to organizational goals. These responses to change can create challenges for the entire organization. In particular, the company cannot adopt new practices that can improve its sustainability. This issue has become particularly acute nowadays when companies have to face both global and local competition. In turn, business administrators need to understand how they can help employees embrace new practices. This problem has already been examined by various researchers; nevertheless, it is important to study this issue within the context of the banking sector. These are the main issues that should be addressed.
Information on the problem
Researchers note that unwillingness to accept change is a widespread response among individuals. One can refer to the survey of 1000 leading companies put on the Fortune list. It indicates that the success rate of organisational changes ranges from 20 to 50 per cent (Strebel, 1996). Such problems can be observed in the businesses representing different sectors of the economy, including the banking industry. This survey also shows that workers may find difficult to adjust to new policies. These people can be very skilled professionals; furthermore, they have many years of work experience.
Scholars distinguish several reasons why employees often struggle with change. In particular, they attach importance to such details as the loss of control and lack of clear expectations. They believe that their duties are not properly identified, and job design is very vague (Kanter, 2012). Very often, employees feel that changes make them unable to plan their workplace activities (Kanter, 2012). Apart from that, they report that new practices are very suddenly imposed on them (Kanter, 2012). So, they do not have a sufficient amount of time to adjust to new practices. Finally, in the initial stages, these people can often believe that they lack the necessary skills to embrace new practices. It should be noted that in many cases, these beliefs are not justified because they can have the proper educational background. This is why researchers note that resistance to change can often be irrational (Ford & Ford, 2009). These are the main tendencies that researchers single out. To a great extent, these arguments are relevant to the work of the banking institutions which also need to change different elements of organisational design to reduce operational expenses and become more responsive to new trends.
The scale of this problem indicates that resistance to change cannot be attributed only to the lack of skills and motivation. One should not suppose that many workers are inherently opposed to change. In many cases, the problem can be explained by the fact that organisational changes are not introduced properly. In particular, one should pay close attention to such aspects as timing, clarity of managerial instructions, empowerment of workers, job design, motivation, and so forth. Additionally, the most common concerns of workers suggest that in many cases, the managers do not communicate with workers regularly. These are some of the main assumptions that can be made.
In this case, one can speak about the inability of managers to engage employees. In other words, they cannot properly explain what kind of changes should be implemented, and why they are needed. Therefore, this problem takes its origins in the lack of proper communication. More importantly, organisational leaders often fail to put themselves in the position of employees. Business administrators working in banking companies should consider these issues if they see that their initiatives are not readily accepted by employees. Therefore, a company that faces such a problem should address the underlying causes that prevent people from accepting new practices.
The management of the chosen company does not know why exactly the workers resist the merging of different departments. Nevertheless, they may assume that their reactions are related to the causes identified by researchers. So, to gain better insight into their views, they should poll workers. This poll can take the form of a semi-structured interview.
Logical argument
On the whole, resistance to change indicates at the inefficiencies in the work of business administrators who represent the banking sector. Indeed, the merging of different departments can be challenging for workers, but these difficulties can be overcome. These professionals do not consider several important premises. In particular, even well-intended initiatives can be misunderstood or even rejected, if their rationale is not properly described. Overall, the implementation of changes is a process that affects various stakeholders, for example, clients, investors, owners, and workers. The key issue is that the needs of workers are often disregarded. As a result, the performance of an organisation can be impaired for a long time. Apart from that, this transformation affects customers who are often dissatisfied with the services that are provided to them. Overall, this argument is based on the study of relevant academic literature and my observation of the client organisation.
Anticipated outcome
This problem can be effectively addressed if the management regards workers as active participants of organisational change. This solution incorporates several important steps. In particular, they should prompt workers to express their opinions about new workplace procedures. To a great extent, this goal can be achieved with the help of surveys or in-depth interviews. In this way, one can better identify the strengths and weaknesses of new policies. In many cases, it may be necessary to modify some of the new policies. These are some of the improvements that can be achieved in this way.
Additionally, the management should clearly explain why new practices should be adopted and how this goal can be achieved. Apart from that, they should show that this change can benefit workers as well. These people should see that by adopting new practices, they will produce better results. This task is vital for strengthening their commitment and motivation.
Much attention should be paid to the peculiarities of job design. In particular, it is vital to identify the duties of various employees. This step is vital for avoiding the uncertainty and perceived loss of control that workers often experience during organisational changes. As it has been said before, the lack of clarity in job design and workplace requirements is one of the factors that intensify a person’s resistance to change. This is why this problem should be addressed by the senior executives of companies.
Apart from that, the management should rely on the assistance of those workers who can be viewed as role models by their colleagues. In this case, one should speak about the most skilled employees whose actions are often emulated by other people. These are the main elements of the solution.
The implementation of the solution
This solution can be implemented in the company representing the banking industry. It is a medium-sized organisation, and its employees can resist structural changes. At first, the management should distribute a list of open-ended questions that prompt people to express their views about the transformation of the departments. This method has been chosen because in this case, it is not necessary to interview a large number of workers. In particular, managers should encourage workers to speak about the specific difficulties that they encounter. Additionally, the management should enlist the support of the most experienced workers. In particular, they should focus on employees who have worked in the company for at least five years. Furthermore, these people should be distinguished in terms of their expertise. These individuals will play a critical role in explaining the new requirements to other employees. This solution does not require considerable investments. Moreover, it is not very time-consuming. These are the main details that should be taken into account. Overall, this approach can be important for increasing the company’s readiness for change in the future.
Reference List
Ford, J., & Ford, L. (2009). Decoding Resistance to Change. Harvard Business Review. Web.
Kanter, R. (2012) Ten Reasons People Resist Change. Harvard Business Review. Web.
Strebel, P. (1996). Why Do Employees Resist Change?Harvard Business Review. Web.