Obstacles and Resistance to Organizational Change in the New Post-COVID-19 Environment

Obstacles and Resistance to Organizational Change in the New Post-COVID-19 Environment

Copyright: © 2023 |Pages: 29
DOI: 10.4018/979-8-3693-0235-4.ch008
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Abstract

Leaders initiate changes to increase competitive advantage and drive organizational sustainability, agility, and flexibility in their respective hypercompetitive industries. While organizational change is inevitable, uncertainty perpetually accompanies organizational change management processes. Uncertainty often breeds resistance; hence the organizational change process must be managed effectively using the requisite change management model. Despite the availability of more than 40 recognized organizational change management models, and even using the appropriate change management model, obstacles and resistance predominantly punctuate change management initiatives, subsequently igniting debates that more than 75% of all organizational change processes fail. The key reason associated with failed organizational change initiatives is (the seemingly) poor management of the human capital aspect of the change process. Poor communication of the change process leads to employees' resistance to change, as employees often believe that they will lose something in the process.
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Introduction

Leaders initiate change to increase competitive advantage and drive organizational sustainability, agility, and flexibility in their respective hypercompetitive industries. While organizational change is inevitable, uncertainty perpetually accompanies organizational change management processes. Organizational change management models are either processual or descriptive (Parry et al., 2014). Processual models detail the sequential steps within the process, thus providing a prescribed route along which the change process unfolds, while descriptive models highlight the success factors and variables that affect organizational performance and the success of organizational change projects. (Errida & Lotfi, 2021; Parry et al., 2014). Irrespective of the organizational change management model employed, employees’ resistance was historically and remained primary among the myriad of challenges that inevitably accompanies organizational change initiatives (Ahmad & Chowdhury, 2021; Kotter & Schlesinger, 1979; Tanner, 2023).

The declaration of an impending organizational change exercise often triggers employees’ negative perceptions, anxiety, and a threat to their job security (Ahmad & Chowdhury, 2021; Kotter & Schlesinger, 1979; Li et al., 2021, p. 201). As the organizational change exercise progresses, if not managed effectively, the lack of a holistic new vision and communication (in the form of full disclosure) subsequently fuels employees’ mistrust of leadership, frustration, and uncertainty (Ahmad & Chowdhury, 2021; Kotter & Schlesinger, 1979; Li et al., 2021). Uncertainty often breeds resistance to organizational change (S. Srivastava & Agrawal, 2020); hence the organizational change process must be managed effectively using the requisite change management model. Considering the added component of inevitable challenges, whether the organizational change initiative occurs via the earlier organizational change models or other processes such as business process re-engineering (BPR) coined by Hammer and Champy (1993); Six Sigma (Singh & Rathi, 2019); the Toyota way for lean production (Soliman, 2020; Tsukada, 2013) or organizational development (D. R. Brown & Harvey, 2021); there is no guarantee that the organizational change process will be successful.

The World Health Organization's Director General declaring the rapid global spread of Coronavirus 2 (SARS-CoV-2) as a public health emergency of international concern (United Nations, 2020) triggered organizational change on an unprecedented scale. The announcement precipitated and propagated the first global, mass, synchronous, unplanned organizational change when globally, organizational leaders sent employees home to work remotely (B. A. Brown & Heitner, 2022). Without other options, many organizational leaders enacted mandatory, rapid, and drastic organizational changes, whether or not the organization's capacity allowed for such rapid adaptation (Choflet et al., 2021). Thus, traditional organizational change management models built on a planned (either processual or descriptive) format and allowing time for a sequential unfolding of the change process may have proven insufficient or irrelevant during the rapid, unpredictable, unfolding turbulence associated with the unexpected arrival of the COVID-19 pandemic (Choflet et al., 2021; Geroche & Yang, 2022). The purpose of this chapter is to (a) review the literature on organizational change, with specific reference to the obstacles and resistance to organizational change; and (b) provide recommendations to prevent the incubation or proliferation of said obstacles and resistances, especially considering the burgeoning usage of virtual teams (and remote working) owing to the COVID-19 pandemic.

Key Terms in this Chapter

Change Management Model: A designated plan or template detailing the intended methodology for altering an organization's business process or business model from a present undesired status to a new or future desired state.

Fourth Industrial Revolution: The initiation or dawn of intelligent and connected production systems designed to sense, predict, and interact with the physical world. These smart and connected systems allow for making decisions that support real-time production.

Descriptive Change Management Models: Descriptive models highlight the success factors and variables that affect organizational performance and the success of organizational change projects.

Latin America and the Caribbean: A world region comprising 33 countries. The region's countries are the Caribbean territories, Bahamas, Mexico, and most of Central and South America.

Organizational Change Management: The process of controlling the transformation and development within a corporation.

Processual Change Management Models: Processual models detail the sequential steps within the process, thus providing a prescribed route along which the change process unfolds.

Black Swan Event: An unpredictable incident beyond what is typically expected of a situation that has potentially severe consequences. Usually, no standard operating procedures or contingency plans exist to manage the event.

Hyper competition: A state of ultra-high competitiveness for scarce resources and market share, specifically between corporations in a select industry.

Post-Covid-19 Pandemic Environment: The state of the global workplace's biosphere after the World Health Organization's May 5, 2023, declared an end to COVID-19 as a public health emergency of international concern.

Organizational Change: A processual or descriptive adjustment of a corporation's business model or process to remain relevant, agile, and competitive. Organizational change may involve alteration to corporate structure, human capital, and technological capabilities.

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