Leadership Skills to Overcome Resistance to Organizational Change

UNIVERSITY OF LA VERNE

La Verne, California

Leadership Skills to Overcoming Resistance to
Organizational Change

A Case-Based Capstone Paper Submitted
in Partial Fulfillment of the Requirements for the Degree
Master of Science, Leadership and Management

Majid Bakarman

College of Business and Public Management

Department of Business Management and Leadership

May 2010

Copyright © 2010

Majid Bakarman

All Rights Reserved

Abstract

Organizations have experienced plentiful organizational change failures over
years, in which the resistance to organizational changes was a major barrier. However,
change agents did not handle the resistance well, because they were lack of certain
leadership skills. The purpose of this case study was to examine where the resistance
came from, and evaluate to what level each element of the resistance impacted on
organizational changes at financial institutions in Saudi Arabia. Research questions
consisted of 1) What are the reasons that lead resisters to resist an organizational
change? 2) What kind of leadership qualities are the most effective approaches to
overcome resistance? Using the surveys monkey for both employees and managers, the
research invited 10 employees who identified the behaviors code and the reasons
behind resistance to organizational change, and five managers who declared their
prospectives about resistance and what actions did they take when they encountered
resistance to organizational changes. The results of this study illustrated the most
important reasons of employees’ resisted organizational changes, and found out that
lack of certain leadership skills were the most challenges for managers who failed to
make organizational changes effectively. The research determined that managers
should have sufficient leadership skills to drive organizational changes successfully.

Acknowledgement

I would like to thank all the professors who work in the MSLM program at University
of La Verne, my classmates, friends, and previous colleagues who participated in the
survey helped me achieve my goals and objectives in this study. I deeply appreciated
them that devoted their valuable time and commitment to the research.

Dedication

This is dedicated to supportive parents who inspired me to pursue my higher
education, my brothers and sisters who consistently encouraged me, my wife and three
children who provided unlimited patience to see me through this effort. For all
participants who responded to the survey contributed to design a successful
organizational change.

Table of Contents

Introduction ………………………………………………………………………………. 1

Literature Review ……………………………………………...………………………… 3

Case Study Methodology ……………………………………………………………….. 10

Results ……………………………………………………………………………………. 16

Discussion and Implementation Plan ………………………………………………….. 22

References ………………………………………………………………………………. 29

Appendices ………………………………………………………………………………. 31

List of Figures

Figure 1: Participated by Years of Experience ………….……………………… 11

Figure 2: Participated by Age …………………….……………………………… 11

Figure 3: Resistance as Negative Attitude ……...……….……………………… 12

Figure 4: The Most Influential Reasons Why Employees Resist ….…….......... 12

Figure 5: Resistance is Negative.…………………………………...…………… 20

Figure 6: Involvement, Appreciation & Experience ……………...………..…… 21

List of Tables

Table 1: Distinctions Between Management and Leadership …………….…… 6

Table 2: Examples of Factors of Resistance …..…………..………..…………… 14

Table 3: The Current Loan Process is Sufficient or Not …..………....…………… 14

Table 4: Example of Open-ended questions ………..……………....…………… 15

Table 5: Communication Behaviors..……………………..…………..…………… 16

Table 6: Feeling Behaviors ……..………………………………………..……… 17

Table 7: Incentive Behaviors ………………………………..……….………… 17

Table 8:Conflict Behaviors ……………………………………..…….…………… 18

Table 9: The Reasons to Resist Change………………………………………… 18

Table 10: Behaviors managers observed employees resist changes…………… 19

Table 11: The most important reasons why people resist the changes…………... 19

Table 12: The actions managers took as leader to overcome resistors behaviors… 20

Overcoming Resistance to Change 1

CHAPTER 1

INTRODUCTION

To be effective, leaders have to overcome resistance to changes in order to

achieve organizational growth and development. Implementing organizational changes

successfully at financial institutions in Saudi Arabia requires certain leadership skills to

institutionalize the change efforts and to reduce resistance. When change initiatives

were introduced into the workplace with little positive impact on work performance and

operating efficiencies, it results in wasted time and money. Organizations are still

suffering from resistance to organizational changes, which demonstrate the need for

leaders to continue to develop their skills to deal with resistance in implementing

changes in the workplace (Atkinson, 2005).

Changes in large institutions are often difficult when leaders are not able to

manage changes well. However, the need to make changes will not go away.

Organizations need to develop an approach to overcome resistance and drive changes

in an effective way. Generating leadership skills to encounter resistance and implement

change efforts successfully will contribute to a better performance, increasing motivation

to its employees, and satisfaction from their clients (Atkinson, 2005).

Research indicates that there is a major challenge in driving organizational

changes, which is dealing with resistance that change agents encounter. It is

extraordinary for any organizational change does not face any resistance. Recognizing

and welcoming resistance as a healthy response and an opportunity to listen to different

perspectives is what allows leaders to successfully navigate the change process

(Atkinson, 2005).

Leadership skills are very essential to overcome resistance to organizational

changes. Wise leaders can achieve the organizational changes by applying leadership

qualities today in the workplace to decrease resistance to organizational changes. As a


result, organizations improve its qualities and quantities, and win the market share

(Geller, 2002).

To identify the leadership skills and behaviors that can help to overcome

resistance to organizational change and two kinds of surveys were completed by

managers and employees in the facilities department of a financial services organization.

The survey was designed to identify the most important factors that were most effective

in addressing resistance when a change process was implemented. Two precise

research questions were addressed: (1) What are the reasons that lead resisters to

resist an organizational change? (2) What leadership quality is the most effective

approach to overcome resistance to organizational changes?

The result of this case study demonstrates the important factors and to what

degree these factors influence employees to resist organization change. The most

central behavior employees asserted in this case was lack of perceived benefits in the

change process. Also the outcome of this case study shows what kind of leadership

skills managers would use when they face resistance from their employees. The results

of this study show that leadership is essential to implement the organizational change

wisely. The recommended action plan is to help managers implement organizational

change efficiently by using different criteria of leadership skills.


CHAPTER TWO

LITERATURE REVIEW

Resistance to Change

Leaders understand resistance as having numerous components, which are

restraining, and do not support the change. People who resist change play it safe in the

current situation, and thus refuse to explore and try a new concept of change, as they do

not see the benefits of it. Although resistance often comes from everywhere in the

organizational change process, resistance is in itself a subjective issue where managers

observe behaviors that do not support an organizational change (Ford & Ford, 2009).

“One of the biggest mistakes change leaders can make is to assume that resistance is

without merit. But resisters can shed valuable insights about how proposed changes

might be modified to increase the odds for success” (Michelman, 2007, p.3).

Harvey (1995) declares that an organizational change that lacks resistance is not

considered a change at all. There are rational reasons why individuals would support the

change process before they clearly understanding its implications. First, followers have

only heard about the change, but nothing has been implemented due to ineffective

managers. Then, subordinates have no commitment to create or develop the

organization. Next, no one is willing to speak up when resistance is present. Fourth, all

team members’ perceptions are alike in terms of organizational change, and everyone

sees it is an appropriate change. Therefore, resistance is a healthy response to a long-

term organizational change which leads leaders to embrace resistance. “A major

problem in driving change in organizations is dealing with and managing the resistance

you will encounter. Whether the initiative is focused upon coaching a new leadership

culture, or promoting new behaviors in customer relationship management, the problems

encountered will be similar” (Atkinson, 2005, p.15).


Michelman states that resisters who may have valuable insights in identifying

organizational change may prevent implementation of such changes (2007). Carefully

diagnosing their mindful inquiries can multiply the chances for streamlined success. It is

not critical how well change is planned in efforts, but the most crucial difficulty is to

ignore change resisters in management positions. Resisters are one of numerous

components of the organization. It is particularly crucial to motivate them. Gullickson

(2009) states that an exclusive development can generate changes and valuable

principles when resistance arises from individuals that resist the change action plan.

Organizations resist radical change with every organizational chart and
standard operating procedure manual they can muster. Therefore, to execute a
strategy, one must enable change, as well as overcome resistance to change.
One model successfully used by a Fortune 100 company recognizes that the
following three items are necessary for achieving radical change:

 Dissatisfaction with an existing situation will create a need to change.
 Clearly communicating a strategic vision will provide a goal for change.
 Teaching and practicing the first change steps will lead to an execution
orientation within the organization. (Lefebvre , 1997, p. 58).

Sources of Resistance

Many sources of resistance have an impact on an organizational change.

Resistances consist of insufficient ownership, inadequate compensation, increased

trouble, management’s commitment, insecurity, norm’s conflict, monotony, disorder,

advantage, diverse experience, the unexpected, substantial change, collapse, and

exceptional organizational structure. Each factor plays a different role in the

organizational change process. Wise leaders predict the circumstance that has more

influence than others do (Harvey, 1995).

Resistance towards change encompasses behaviors that are acted out by
change recipients in order to slow down or terminate an intended organizational
change. Several researchers have reported that attempts to implement strategic
changes sometimes are met with resistance from those affected by the change.
(Lines, 2004, p. 197)


Organizations that operate in dynamic environments are highly competitive in

overcoming considerable challenges to implement organizational changes.

Consequently, managing organizational change is particularly crucial for an

organizational development. In the wisdom of change management, the resistance to

organizational change was the most crucial challenge for implementing it (Mabin,

Forgeson, & Green, 2001).

The reasons employees and even leaders resist change can vary. Some key
issues:
• Fear of risk;
• Lack of clarity regarding purpose of change;
• Fear of inadequate staffing to achieve goals targeted in change;
• Fear of failure; and
• Lack of will to change” (Merisalo ,2010, p.3).

Curtis and White (2002) state several reasons for the most serious causes of

resistance to organizational change, which increase tension, fear of urgency, and

conflicts with change agents. Changees tend to pay attention to their own goals,

misunderstanding the need for organizational change, they are not confident about the

future development. Organizations did not prepare well to create readiness of the

change. More than likely, there was insufficient communication and no system to monitor

the change process, and give inappropriate rewards to those who fully supported and

facilitated the needed changes.

Organizational Change

Bommer, Rich, and Rubin (2005) argued that transformational leadership is a

vital tool used to influence an effective organizational change effort, which

transformational leaders used to motivate employees into becoming agents of the

organizational change. Increasing the organization’s performance will support on-going

institutionalized organizational change (Goodman, & Rousseau, 2005). Carter, Ulrich,

and Goldsmith (2005) announce that each organizational change overcomes objection.


The more individuals are forced to organization change, they more resistance will exist

in buy-in process. All changes encounter resistance. Employees often resist change

while unconsciously they are changing. Resistance while processing an additional

change would virtually disappear. Jones (2010) reported that resistance to

organizational change decreases an organization’s competency and diminishes its

opportunity to sustain. As a result, inactivity is established in the entire organization,

among team members, and at every level. The representative of change does not only

embrace responsibility for the relationship with individuals, but he also generates the

strategy of change implementation (Ford, & Ford 2008).

Leadership Strategy

Leaders hold people accountable for accomplishing proactive process
activities that contribute to eventual group and organizational success in
productivity, quality, and/or safety. Moreover when people see some
improvement in the process, they feel rewarded for their efforts and would
develop a sense of personal responsibility for continued contributions and never-
ending improvement. Thus, by focusing on the process, leaders help people
perceive the power they have over the frequent, intrinsic consequences of their
jobs. (Geller, 2002, p. 32) Leadership strategies are more effective than
management strategies are while dealing with organizational change. (See Table
1)
Table (1)
Distinctions Between Management and Leadership (source: Geller, 2002, p.47)

Managers Leaders
Hold people accountable Build responsibility
Focus on outcomes Focus on process
Focus on extrinsic consequences Focus on intrinsic consequences
Give more corrective feedback Give more supportive feedback
Train only Educate first
Use unconditional directives Use conditional directives
Speak first, then listen Listen first, then speak
Answer questions Ask questions
Promote compliance Promote ownership
Limit mindful choice Facilitate mindful choice
Mandate rules and policies Set expectations
Manage what’s measured Facilitate intangibles
Fall victim to stereotypes Treat people as individuals
Direct Direct, support, coach, or delegate


Miner (2005) claims that resistance arises from subordinates behaviors toward

the organizational change, and such behaviors are decreased by the leaders’

charismatic behavioral responses. Windall (2007) mentions that a wise leader would

reward an earlier achievement, take chances to create a desired acceptance of the

changers for a recent revision even though organizational change is the better plan to

improve efficiency. When determining how to influence employees and reduce

resistance to change, managers should consider the relationship they have with targeted

employees (Furst, & Cable, 2008). As a consequence, individuals will welcome any

variety of change and participate in this plan effectively. Leaders need to have the ability

to bring individuals to their side in order to implement an organizational change

effectively (Knippenberg & Hogg, 2003). Ashkanasy, and Kavanagh (2006) found that

the most crucial competencies of leadership to operate in organizational change are

clarifying the change vision, communicate, and implement transparency in to the

operation process.

The smartest strategy to conquer resistance is to invite changees in to decisions

and solutions making that will be delivered to and affect their work. Providing systematic

procedure (Lee & Krayer, 2003), “Resistance continues only when leaders do not know

how to handle people who are experiencing change. Resistance is the leader’s

challenge, not the employees’ challenge”. Schein (2004) announces that managers often

face subordinates' resistance to change without adequate consideration which often

results in being plans delayed overtime. Conflicts come from lack of readiness to change

and insufficient understanding about the vision. Leaders have to achieve understanding

and acceptance from every level in the organization through communication to support

organizational change, so that the change can be accomplished in a desired time frame.

Huang, and Huang (2009) articulates that how “the strength or the direction, the


relationship between resistance to change and change outcome are meaningful and

even causal” (p.111).

Purpose of this Case Study

The purpose of this case study is to examine where resistance came from and

analyze to what degree each factor is influenced by organizational changes. The goal of

this research is to create a program to assist the internal and external change agents to

implement organizational changes effectively by applying leadership skills to overcome

resistance.

The literature reviewed can provide a broad understanding of the reasons of

resistance to organizational changes, which can well prepare leaders to establish the

framework to overcome the resistance. Communication system is carefully developed in

order to engage the buy in from followers. Characteristics such as persuasive, inspiring,

constructive will be import to core competencies for a change agent (Kotter & Cohen,

2002).

Research Questions

Research Question 1: What are the reasons that lead resisters to resist an

organizational change?

Kotter and Schlesinger (2008) report that “To predict what form their resistance

might take, managers need to be aware of the four most common reasons people resist

change. These are a desire not to lose something of value, a misunderstanding of the

change and its implications, a belief that the change does not make sense for the

organization, and a low tolerance for change” (p.132). Answers to this case research

question are important to help managers diagnose where resistance comes from, so it

can give the change agent a clear image of why individuals resist organizational change.

Therefore, genuine leaders could determine how to deal with resisters for the reason


that they recognize the sources of resistance and where impediment comes from and

set up an adequate strategy to deal with it effectively.

Research Question 2: What kind of leadership qualities are the most effective

approach to overcome resistance?

Answering this question will assist agents to understand adequate leadership

qualities that enable them to lead resisters to understand why they resist. According to

Strebel (1996) “Without such leadership, employees will remain skeptical of the vision for

change and distrustful of management, and management wills likewise he frustrated and

stymied by employees' resistance” (p.92). This research question is vital for the reason

that it generates the valuable impact of leadership qualities for overcoming resistance

and implements organizational change successfully at financial corporations.


CHAPTER 3

CASE STUDY METHODOLOGY

Overview

The purpose of this study was to examine and analyze sources of resistance and

create an instrumental tool of leadership skills to help change agents achieve

organizational changes effectively at a financial institution. Data were gathered from

employees in a major bank in Saudi Arabia, which was set up in 1977, and its capital

was worth Saudi Riyal (SAR) 4500 millions. The organization is composed of a

headquarters, two local offices, and 45 branches nationwide. It is a large organization

with 816 employees. However, the facility department consisted of 20 employees, which

is the heart beating of the bank. A major change at the facilities department would affect

the whole organization.

Participants

This study was conducted with two surveys, which included a managers’ survey

and an employees’ survey. There were five managers who participated in the managers’

survey, and ten employees at the facilities department who completed the employees’

survey.

Selection Criteria

Participants were selected using several criteria:

All participants in either managers’ survey or employees’ survey had experienced at

least one organizational change at the facility department (See figure 1).


Figure 1: Participants’ Years of Experience

Seven out of 15 participants were in the range from 28 to 32 years old, another

five participants were between 23 and 27 years old, two of the rest were over 33 years

old, and only one participant was younger than 22 years old (See figure 2).

Figure 2: Participants’ Age

The managers who participated in the survey of the study were selected to

articulate whether the resistance negative attitude or not to affect organizational changes

at facility department with various perspectives (See figure 3).


Figure3: Resistance as Negative Attitude.

The Managers who participated in the survey were selected to identify the

resistance behaviors that they had observed from employees. The employees who

participated in the survey of the study were selected to explain the factors that caused

resistance when a new change applied (See figure 4).

Figure 4: The Most Influential Reasons why Employees Resist Change.


Survey Instrument

All participants were asked to take the survey using the survey monkey online by

sending the link to their emails. The bank’s permission was given to the researcher to

distribute surveys via a letter of approval signed by the Human Resources Office (See

Appendix A).The participants were given an informed consent attached to their emails.

Their personal identities were not disclosed, and their responses were used for the

purpose of this study only (See Appendix B).

The research was conducted by quantitative methodology, which included two

separate surveys on Survey Monkey for different participants working on different

positions separately. It was the preferred method of data collection for the abroad

participants, because it was easy to manage, and data could be collected quickly

through emails. The researcher created 10 questions in each survey that designed to

collect information either from managers or from employees (See Appendix C and D).

Each survey had three sections :The first section was covered the demographics

questions; the second section was asked three questions about perceptions of

organizational change the in the workplace process; the third section addressed four

questions about the reasons of resistance to organizational changes, included one

open-end question in the employees’ survey and four open-end questions in the

managers’ survey to allow participants to add their insight in terms of organizational

changes.

The scale used to measure the responses was 1 =Strongly Disagree,

2=Disagree, 3 = Neither Disagree, Agree 4= Agree, or 5= Strongly Disagree, to

demonstrate their opinion toward resistance to organization change (Fields, 2002). In

addition, rating scale was used that to explain the degree each factor had influenced

resisters to resist organizational changes. For example, rating of “1” means that

behavior/element had no impact on why the change was not successful and a rating of


“5” means that the behavior/element had a strong impact on the failure of the changes

being made to the loan process.

Use ratings of “2”, “3”, and “4” to evaluate your perceptions between “not at all”

and “very much so” (Harvey, 1995, p.66).(see Table2)

Table 2: Examples of factors that cause resistance
Example of resources of resistance to organization changes

Lack owner ship for the changes to loan process

Lack of Benefits

Increased of burden (it was “more work”)

Lack of communication from senior leaders

One of the common questions in each survey, either in managers’ survey or

employees’ survey part, was about whether the current loan process is sufficient and

needs no improvement to evaluate the loan process contributions to reach the

organization’s goal (See Table 2).

Table 3: The current loan process is sufficient and needs no improvement
Managers Employees
Answer Options N % N %
Strongly Disagree 2 20% 2 20%
Disagree 6 60% 6 60%
Neither Disagree nor Agree 2 20% 0 0%
Agree 0 0% 1 10%
Strongly Agree 0 0% 1 10%

Totals 5 100% 10 100%

The final portion of each survey, either in managers’ survey or employees’

survey, was included an open-ended questions to allow the participants add their


valuable perceptions, for the reason that the internal culture of the financial organization

is played a crucial function to resist organizational changes. (See Table 3)

Table 4:Open-ended questions.
Example of the open-ended questions

What are the reasons that lead resisters to resist change? (Employees survey)

What actions did you take as the leader to address those actions/behaviors? (Managers

survey)


CHAPTER 4

CASE STUDY RESULTS

This case study examined the factors of resistance to organizational changes

from both employees and managers perceptions. Results for Research Question 1:

What are the reasons that lead resisters to resist an organizational change? This

question was answered by ten employees who participated through survey monkey.

Individuals explained where the sources of resistance came from and to what degree

each factor had impacted organizational changes in the facilities department. The

sources of resistance were raised from diverse behaviors, including communication

behaviors, feeling behaviors, incentive behaviors, and conflict behaviors.

The communication behaviors were explained and rated by employees on three

factors, which included: 1) chaos –too much change happened at the same time with an

average rating of 3.89, 2) lack of communication from senior leaders who have most

knowledge about the change itself, employees who participates in the survey rated this

valuable aspect 3.76, and 3) lack of ownership for the changes to the loan process with

an average rating of 3.30. Therefore, there is a relationship between resistance to

organizational change and communication behaviors are very significant from the

participants perceptions (See Table 5).

Table 5: Communication Behaviors
Communication Behaviors Rating Average
1- Chaos – too much work 3.89

2- Lack of communication 3.67

3- Lack of ownership 3.30

The second behavioral factor was feeling, which includes superiority, insecurity,

and loneliness. Participants rated superiority as the most important factor that influenced

feeling toward resistance to change with an average rate 3.44. Insecurity from


organizational changes was rated as 2.89 in average, and loneliness was rated as 2.88

(See Table 6).

Table 6: Feeling Behaviors
Feeling Behaviors Rating Average
1- Superiority 3.44

2- Insecurity 2.89

3- Loneliness 2.88

The third catgory was incentive behaviors, which included lack of benefits, lack of

recognition, and boredom. Lack of benefits was the most important factor that lead

employees to resist organizational changes with average rate 4.38. Lack of recognition

was rated at average 3.56, where employees did not feel appreciated for the effort they

made. As a result, they resisted any sort of change in the loan process. Employees gave

boredom an average rating of 4.00, where it played an important role in the change

efforts, because there was no motivation to learn new things (See Table 7).

Table 7: Incentive Behaviors
Communication Behaviors Rating Average
1- Lack of benefits 4.38

2- Lack of recognition 3.56

3- Boredom 4.00

The fourth catgory was about conflict behaviors, which included lack of clear

organization structure, lack of time to prepare and process the change, norms

incongruence, and new knowledge required. Employees had rated the lack of

organizational structure with averege rate 3.44 that indicated to the relationship between

top management was not effective to facilitate the change efforts. It was hard to make

changes in overnight for the reason that it would create confilcts and the change would

not be successful. Sudden was average rating of 3.76 in the survey. Participants rated


norms incongruence with an average rating of 3.4 in terms of its influence on change.

Employess mentioned that new knowledge required to deal with a new change to avoid

conflicts and misunderstanding. It was rated at average 4.11 (See Table 8).

Table 8: Conflict Behaviors
Conflict Behaviors Rating Ave
1- Lack of clear organizational 3.44
structure
3.67
2- Sudden
3.40
3- Norms incongruence
4.11
4- New knowledge required

Managers also articulated the factors of resistance based on open- eneded

questions. The most significant factor was explained by mangers was that employees

thought that they would not get any benefit from that change, which represented 40% of

the respondents. The second factor was that employees did not pay attention to the

main goal, which covered 40% of the respondents. The third factor was declared that

employees felt inconvenience to make change, which was rated at 10% (See Table 9).

Table 9: The reasons people resist change
Factors of resistance %
1- Lack of benefits 40%

2- Inattention to objectives 40%

3- Inconvenience 20%

Managers were asked about the behaviors they observed from employees during

the change.The behavior managers observed on their employees complained about a

new procedure, which represented 40%. Postponement was a behavior that managers

noticed the employees performed against a new change. Managers also stated that

employees just thought about their own ego (See Table 10).


Table 10: Behaviors managers observed employees resist changes in the loan process.
Behaviors of resistance %
1- Complaining 45%

2- Postponed 33%
3- Focusing on their Own ego 22%

Employees were asked open–ended questions to articulate unique reasons that

led resistors to resist organizational changes. The result of this question as the following:

The first reason was that no benefits employees got from that change. The second

reason was communication system across the hierarchy between managers and

employees. The third one was incompetent employees hired in the facilities department.

The last one was lack of leadership skills necessary to implement changes (See Table

11).

Table 11: The most important reasons people resist the changes.
Behaviors of resistance %
1- Lack of benefits 38.5%

2- Lack of communication 23.1%

3- Unqualified hire 15.4%

4- Lack of leadership 15.4%

5- Fear of losing 7.7%

Managers were asked to explain if the resistance to changes the process was

negative. Sixty percent of the respondents declared that they strongly agreed that the

resistance from employees against the change was negative. Twenty percent of the

participants either disagreed or agreed that the resistance was negative (See Figure 5).


Figure 5: Resistance from employess to change the loan process

Results for Research Question 2: What kind of leadership qualities was the most

effective approach to overcome resistance? For Research Question 2, only managers

responded to the last 4 questions on the survey in order to answered this research

question. The managers who participated in the survey articulated that 60% of them did

not feel appreciated for the effort they have contributed to implement the change in

discussions and decision making in the loan change process. Moreover, 60% of the

managers declared that the earlier change did not contribute to high performance. On

the contrary, 20% of the managers that participated in the survey stated that earlier

changes led to high performance effectively. Most of the managers who answered the

survey did not involve to the discussions and decision-making level in the loan change

process (See Figure 6).


.

Figure 6: Involvement, Appreciation and Experience

The last question in the managers’ survey asked about what kind of leadership

managers would initiate with their subordinates to resolve resistance. The most

frequently stated behavior was to encourage the employees to do the job more

effectively in order to facilitate the success of the change process. Others announced

that the best ways to overcome resistance from subordintes were persuasion and

influence them to perform effectively (See Table 12).

Table 12: The actions mangers took as leader to overcome resistors behaviors
Leadership skills %
1- Power 43.3%

2- Encouragement 24.7%
3- Persuasion 17.6%
4- Influence
14.4%


CHAPTER 5

DISCUSSION AND IMPLEMENTATION PLAN

Many organizational change efforts failed at financial institutions because of

numerous resistances that occur for different reasons. These results are important,

because the participants explained the reasons for resistance to organizational changes,

which organizations can adopt to overcome resistance effectively. The most important

reasons for employees to resist organizational changes were found to be functional

expectations, communication, incentives, feelings, and conflict behaviors. The results

also clarified that managers considered resistances as negative actions toward

organizational changes, so that they often avoided or ignored the individuals who

engaged in these actions. The results also make it evident that employees who resist

organizational changes have not benn involved in the decision making process. These

results illustrate the need for more effective leadership skills to overcome resistances to

organizational changes in the financial institute in Saudi Arabia.

According to Kotter (1996), a useful purpose of an organizational change would

not be understood if the communicators are not delivering the vision of the

organizational change clearly to their subordinates. Direction and simple communication

are effective more than complicated and indirect communication. Communicating

through behaviors about a new approach is more effective to influence the resisters.

Listening to the changes is considered a wise communication strategy because the

employees are providing valuable feedback, which assume the change is a wrong

course.

Participants who participated in this case study declared that communication

behaviors were taking a major function in the change process. The employees who

participated in the survey clarified the reasons of resistance to the change are caused by

lack of communication, lack of ownership, and lack of institutionalization of the changes.


One of the most critical aspects to resist organizational changes is pay off.

Examining the level of pay off to the employees has a great impact on the

implementation. The more the organization generates an appropriate pay off policy, the

less the employees resist the organizational change. Employees would not contribute

effectively to the change unless they see the benefits for themselves (Harvey, 1995).

The majority of the participants either in the employee or manager’s survey emphasized

on incentive behaviors led to successful organizational changes.

Identifying resistance behaviors to organizational changes is an indispensable

process and an opportunity to improve the organizational change, because employees

would provide the leader with a new perception from the blind side that the changer

cannot recognize it in the implementation. As a result, the leader will lead to create

successful change effort (Atchinson, 2005).The majority of the managers who

participated in this case study announced that resistance to organizational change was

considered as negative behavior from their employees.

The most important resource to overcome resistance and drive the organizational

change successfully is empowerment. It takes place when subordinates feel that their

sustainability is in their own hands, they understand the importance of a task;

understand the purpose of organizational change, and are willing to reach the

organization goals. If changees do not feel empowered, they are not motivated to

collaborate in the change process (Harvey, 1995). The majority of the participants felt

lack of involvement in the decision making process, they did not feel recognized and

appreciated to their effort, which kept them away from the organizational commitment.

Lencioni (2002) mentioned that an efficient path to make certain that a group of

changees are focusing their attention on the outcomes of organizational change is to

emphasize their benefits to the success of the organizational change. Once changees

have a common sense about their supervisor values other than focusing on the


organizational change successfully, they will act the same way as supervisor did to

follow the informal norms. A wise leader pays attention to the organizational result, and

empowers subordinates to the right direction. The employees who participated in this

case study demonstrated that the lack of clear statement of benefits played a significant

role in the organizational change to overcome resistance. Moreover, managers who

participated in the study declared that inattention to objectives is a major resistance

behavior that led resisters to resist the organizational change.

Resistance to organizational change occurs when employees lack ownership for

the change as well as if employees do not understand the purpose of the change. For

instance, employees are more likely to accept change that they themselves have

acknowledged and planned. Any major organizational change that is imposed will be

performed negatively and result in resistance. The best way to identify ownership is to

allow changees participate in the change’s decision (Harvey 1995).

The employees who participated in the survey indicated that lack of ownership is

one of the most significant reasons why changees did not implement the organizational

change effectively.

Recommended Action Plan

The result of this case study shows that the reasons why employees do not

perform effectively in the loan process development in the facilities department in the

financial institution. Managers or change agents need to practice leadership skills to

enable individuals to contribute to improving and developing the loan process of the

bank in order to provide customers with better qualified services. The following steps

that will assist managers and change agents to implement the loan process

development effectively in facilities department


Communication for Buy-In

Creating a competency communication is a crucial aspect for managers. Utilizing

communication can increase the urgency of improving the current loan process, because

competitors are growing quickly in financial service industry. In addition, acknowledging

talented employees who are willing to implement a new loan process to ensure the

quality of work at facilities department. A successful communication strategy will

minimize the gap between managers and employees to maintain their positive working

relationships and give employees’ opportunities to share their thoughts about the

strengths and weaknesses of the current loan process. Good communication will allow

managers to deliver effectively the task to employees, which is to get the bank’s targeted

number of loans each month.

A wise communication strategy will help managers to discover the needs of the

employees, which are to improve their ability and train them in new skills in order to help

update loan process from being manually to systematically. In other words, through

communication leaders can identify the specific of training programs that meet facilities

department employees’ need to improve their work skills. It will also assist managers to

collect and select effective incentives from salaries, promotions, and bounces to

motivate employees to perform a new loan process, which delivers better service to

customers. Communication between managers and employees is the key to

understanding the main needs of our customers to get their satisfaction, as result of

which clients will remain loyal to the bank. However, customers will transfer to our

competitors when communication went to a wrong way, which will cause the bank to

downsize and cuts jobs. Communication systems will allow facilities department’s

employees to get an interest rate from treasury department more accessible, so that

they are able to respond to customers fast. Communication will facilitate the how


approval of complicated loan issues between top level managers and employees to

respond to a client in less time possible.

A clear communication from managers will articulate to the employees what

percentages should the productivity increased. Communicators could use most effective

methods that are group meetings with managers from different levels and employees

from facilities department each month; memos to seek feedback, informal one to one

talk to deliver the goals setting of department.

Institutionalization the of Organizational Change

Establishing a new loan process to the employees and managers should plan to

create a new loan process and explain how, when and why should implement the new

loan process in order to ensure that employees would understand and support it

strongly. The factors of Institutionalizations that will allow the new loan process take

place, as result will be implemented successfully.

Planning and preparation is the first step to maintain origination rules in order to

analyze worker efficiency. Managers should be willing to listen to their employees’

perspective in terms of the current loan process and what they think about a new loan

process , also participating and involving the subordinates in the decision is to identify

what is the new change would be and how the change is will be implemented. Timing is

a significant factor to improve daily work task which will result in great attitude job.

Therefore, when the timing of change is effective, then the employees would accomplish

their mission in timely manner. Moreover, Mangers should articulate that loan change

process in clear, simple language to gain the consensus prior to implement a new

procedure in the work place.

Participation and Involvement in the Decision Making

The main function of the leaders in building mutual decision making is to

anticipate employees’ needs in the implementation of the new loan process. Employees


will not embrace the new concept of change the current loan process unless they

participate in the decision of a new loan process the most effective plan leaders should

consider is to expand employees’ support to develop a new procedure in order to fulfill

customers. Sharing information about customers’ satisfaction is to demonstrate to

employees the effectiveness of the current loan process. As result of that developing

loan process is a smart preparation that would keep employees contribute efficiently to a

new loan process.

Managers or change’s agent involve the individuals who are reluctant to some

aspect of the plan and implementation of the loan change process, they can often expect

employees who do not want to implement a new loan process. As result of that, listening

carefully to employees who refuse to contribute to improve loan process and, if possible,

implement their recommendations.

Reward System

Creating a wise reward system is the motivational key to increase employees’

ownership at facilities department. Articulating the most significant advantages that

employees would gain by implementing a new loan process is to give them a clear

picture to evaluate the situation. Reward system includes different aspects that are

payoff, recognition, and promotion.

Employees should be considered as an important characteristic that will

contribute in the loan change process by the changers. Employees want to perform their

job in a way they can receive their interests. Employees are willing to supporting the new

loan process if they believe that they can get benefit from it.

Substantially, rewards must be shaped to individuals carefully to fit their desires.

Employees have different value some of whom, prefer recognition, favor payoff, others

challenge, others honor, others occupation security and so on.


The relation between employees' contribution efforts and loan change process must be

prepared clear to individuals in order to encourage them implement the task effectively.

Creating a short term program can reward employees who contribute effectively in the

new loan process in order to expend their loyalty


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APPENDICES


Appendix (A)


Appendix (B)

CONSENT TO PARTICIPATE IN RESEARCH

Leadership Skills to Overcome Resistance for Organizational Changes
FOR MANAGERS AND EMPLOYEES

You are being asked to participate in a case study research conducted by Majid
Bakarman, from the Master’s in Leadership and Management Program at the University
of La Verne as part of a culminating research project. You were selected as a possible
participant in this study because your experience in organizational change match me
research criteria.

 PURPOSE OF THE STUDY

This study is designed to develop appropriate leadership skills to assist change’s agents
to implement organizational changes successfully.

 PROCEDURES
Leadership skills overcome resistance to change

If you decide to participate in this study, we will ask you to do the following things:

Answer a brief survey consisting of10 questions in three categories. The categories are:
 Demographics (such as your age, experience, and how often you have been involved
in an organizational change)
 Questions related to your expectations of how organizational changes would be
handled.

 POTENTIAL RISKS AND DISCOMFORTS

There is a slight risk of a breach of your confidentiality but every effort will be made to
maintain your identity and responses as confidential.

 PAYMENT FOR PARTICIPATION

There is no payment for participation.

 CONFIDENTIALITY

Any information that is obtained in connection with this study and that can be identified
with you will remain confidential and will be disclosed only with your permission or as
required by law. Confidentiality will be maintained by means of Confidentiality will be
maintained by not publishing any identified information with any survey data. Completed
surveys will be kept away from the organization and will not be accessible to anyone
except Majid Bakarman.


 PARTICIPATION AND WITHDRAWAL

You can choose whether to be in this study or not. If you volunteer to be in this study,
you may withdraw at any time without consequences of any kind. You may also refuse
to answer any questions you don’t want to answer and still remain in the study.

 IDENTIFICATION OF INVESTIGATORS

If you have any questions or concerns about the research, please feel free to contact
Majid Bakarman, 347 755 0333, Majid.Bakarman@laverne.edu or my faculty sponsor,
Dr. Deborah Olson, 909-593-3511 ext. 4579, dolson2@laverne.edu.

 RIGHTS OF RESEARCH PARTICIPANTS

You may withdraw your consent at any time and discontinue participation without
penalty. You are not waiving any legal claims, rights or remedies because of your
participation in this research study. If you have questions regarding your rights as a
research participant, contact Fred Yaffe, PhD, Director of Institutional Research Board at
909-593-3511, extension 4996 or fyaffe@laverne.edu (University of La Verne, 1950
Third Street, La Verne, CA 91750).

By completing the survey, I am giving my consent to participate in this research.


Appendix(C)


Appendix (D)

Leadership Skills to Overcome Resistance to Organizational Change

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