Causes of Resistance to Organizational Change

The main reasons for resistance to change are both individual and organization. The research document of individual and organizational behavior has found that organization groups and individuals resist change. Resistance to change provides a degree of stability and predictability to behavior, as it does not allow immediate change. If there was no resistance to change the organization will take on characteristics of chaotic randomness. Read: Reactions to Organization Change There may be reasons for resistance to change for analytical purpose, lets us categories the causes into the following. Individual Resistance. Group Resistance. Organizational Resistance. 1. Individual Resistance Individual arise due to differing perceptions, personalities and needs. Some of these reasons appear to be rational and emotional. These reasons are listed below, a). Economic Factors The economic reasons for the resistance to change may be the following: In organization when the development or change on technology takes place, employee resists the Continue reading

Five Sources of Power Used by a Leader

A leader is a person who can influence the behavior of others without using force. Leadership also means that the process of influencing a group to achieve goals. There are three main types of leadership style, they are autocratic, democratic and laissez faire. Besides the three main types of leadership styles, there are also five sources of power that used by a leader, they are coercive, reward, legitimate, expert and referent. First, the autocratic style of leadership, it is also called the leader centered style. This type of style described a leader who tended to centralize authority, make unilateral decisions and limit employee participation. An autocratic leader always tells the people that what should be done, the employees have to perform the work without changing any of the orders. There are three main characteristics of autocratic leadership style, they are formal relations, centralized authorities and single man decision. Formal relations Continue reading

Leading Versus Managing – A Comparison

In this era of globalization for today’s workplace, people always like to say that “A manager may be a leader; a manager may not be a leader, but a leader may emerge who is not a manager.” So what its means of this phrase? It means that a leader and a manager could be different. For example, an outstanding leader may have superior management skills, but not all managers could possess true leadership skills. In short, it is possible for the role of manager and leader not to be connected at all. This phrase is important to prove that having both talented managers and dedicated leaders make the business success. Why? Let’s see the difference between managers and leaders as following. Manager and Leader – Definitions By definition, a manager is an individual who is given a position and the power within an organization. In normal circumstance, he is normally Continue reading

Various Aspects of Business Failure

Business failure occurs due to different reasons. While few firms fail within first year or two of life, few others grow, mature and fail much later. The business failure can occur in a number of ways and also from different reasons. Why Business Firms Fail Let us try understand the different reasons why corporate often fail; An imbalance of skills within the top echelon. A chief executive who dominates a firms operations without regard for the inputs of peers. An inactive board of directors. The board of Directors lack of interest in the financial position of the company may lead to insolvency. A deficient finance function within the firm’s management. The absence of responsibility for the chief executive officer. Apart from the above mistakes the firm usually is vulnerable to several mistakes; Management may be negligent in developing effective accounting system. The company may be unresponsive to change. Management may Continue reading

Four Levels of Organization Development Interventions

Organizational development is the direction of organizational consulting, which is a list of methods aimed at changing the existing situation in the field of corporate culture, psychological climate, and other degrees of satisfaction with work. Unlike organizational diagnostics, these events and projects not only assess the current situation in the organization but mainly aim at changing this situation. In addition, the given development interventions are conducted at four levels, such as physical, infrastructural, behavioral, and cultural, and they are assisted by coaching activities.  Moreover, organizational development of an enterprise is a systematic, purposeful improvement of its organization by building more rational production and management structures, regulating the functions of individual units or divisions. The given approach also affects workers and their interaction by streamlining labor, managing processes based on the optimal combination of production elements, and creating conditions for their smooth functioning and further development. In other words, the essence of Continue reading

External Prospects of Business Growth

The analysis of the internal perspective of the growth of the business reflects on the operations that the organization must undertake to stimulate productivity and the quality of employees. In addition to the internal factors that influence the organization, external factors affect the performance of the business. The external factors include political, economic, socio-cultural, technological, legal, and environmental issues. The political environment involves the political stability of the country in which the business is operating. In this case, the additional factors that the political factors would influence include the regulation policies formulated by the government. If the government formulates stern policies based on its doctoral nature, the business operations will suffer leading to poor performance and reduction in quality provision. On the other hand, if the government adopts democratic leadership, business issues will be considered during policy development leading to business growth in the whole industry. Economic factors are crucial Continue reading