Friday, July 20, 2012

Corporate Renewal-Academic-Resources for Change: The relationships of Organizational Inducements and Psychological Resilience to employees’ attitudes and behaviors towards organizational Change



The success of organizational change is not only dependent on the managers but also on how the employees support the changes being made. In my opinion this article takes a look on what are the motivating factors that will make an employee more receptive to change or not. The article analyzes inducements and psychological resilience as factors to an employee’s attitudes to organizational change. According to the authors, “little attention has been given to employee resources as a critical determinant of these effects.” (Shin et al,2012)

The authors of the article surveyed 234 employees and 45 managers and examined how employees reacted to change. The first factor tackled were organizational inducements, these inducements can be both intangible and tangible. The tangible ones being as higher wages, benefits while the intangible ones being such as feeling part of the “inner circle” The authors found that as the organization was about to initiate the organizational change, the “resource-rich” employees were more positive and willing to participate in the change than the “resource-poor” employees. This can be attributed to the fact that they felt that they’re jobs were not in danger or that they had enough professional development that they could go out and find another job without a problem. The authors states that the main reasons employees may oppose to change are “increased workloads resulting from the assignment of new work tasks, the need to adjust to new work relationships, and very often, the introduction of new strategic goals” (Shin et al, 2012) By having inducements that can make the employee feel well-equipped to take on those changes, can greatly increase the employees attitude towards the change. The manager must be careful not to only focus on monetary inducements as they are only a smart part of what the employee values.

The article also states the employee’s psychological resilience as another major factor. The organizational change will bring on many challenges and hardships.(Shin et al ,2012) The employee must have the resilience to be able to adapt to these change and not let it overwhelm him. In my opinion, the employee psychological strength is the biggest factor on how the employee reacts to the change. If the employee as the saying goes “doesn’t drown in a puddle”, he will be able to easily adapt to the hardships and changing environment.

The authors also saw that in many cases, employees who both had the inducements and resilience to endure an organizational seemed to have an increased sense of commitment towards the firm. The employees feel like they are “part of the team” and are more positive on the change. This is important for managers as they need to instill a sense of belonging to all of its employees.

In my opinion this article did a great job in contributing to the study of employee’s attitude to the organizational change. The managers must be preemptive of the change and start giving the employees inducements so that when the change comes they will be ready for it. It has been my personal experience that at times the employees are the factor that causes a change to fail or take longer than expected. Applying this article to current events, we can examine RIM. The company is growing thru some mighty big changes and the employees must be able to have a positive attitude to these changes. In order to achieve this, RIM must give its employees the necessary inducements so that they will feel part of the team and give the firm their full commitment.

Works Cited
Shin,Jiseon, M. Susan Taylor, and Myeong-Gu Seo "Resources for Change: The relationships of Organizational Inducements and Psychological Resilience to employees’ attitudes and behaviors towards organizational Change." Academy of Management Journal, 55.3 (2012): 727-748.

10 comments:

  1. I really like the point made that "the organization was about to initiate the organizational change, the “resource-rich” employees were more positive and willing to participate in the change than the “resource-poor” employees." Even this statement is a psychological finding. What exactly classifies "resource-rich vs resouce-poor"? It doesn't necessarily have to do with financial resources but psycological resources such as confidence, integrity, and assurance that allows them to be more accepting of the changes. Although it's not 100% possible, I would think that the best way to have resilient employees accepting of change and as productive as possible is to hire employees who are "'psycologically resouce-rich' " .

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    1. Michelle you bring up a great point. It were possible to hire only people who are psychologically resilient, it would be a piece of cake. However, at time the right person for the job won't have the same resilience as others. In my opinion for the sake of the firm, I would hire someone who is right for the job and work on his psychological needs.

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  2. This article does make a great point by identifying resources highly motivated to participate and be positive to changes.
    However, I think the inducements tactics should be used carefully. This could leave other resources in organization feeling unwanted and leave earlier than expected, creating more problems to deal with.

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    1. Sameer, you bring up a great point! However as a manager once must make sure that everyone in their unit feels appreciated.In my opinion a great manager should always be in tune with his team and see what each member needs in other to feel like they are part of the company. Some many need constant appraisal, while others may need less.

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  3. Good analysis, Jose. This article really helps managers in management of organizational changes. I agree that organizational inducements and employee’s psychological resilience are two important motivating factors to help managers analyze how to make the process of changes successful. The adaption to the changes from employees does make a difference in this transition. I believe many managers think highly of tangible factors but ignore the intangible factors in consideration of employees management strategy.

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    1. I agree with you Raymond. There are times managers are too caught up on the tangible things they forget to look into intangible such as the psychological resilience. The managers have be aware of all the factors that will affect the employees

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  4. Great article Jose. Organizational change seems to be the only constant in a business economy that is ever changing especially due to the globalization of business. I do believe that many workers look at change as negative. The feel that they will be given more work with less pay or that responsibility will be taken away and therefore there job is in trouble. I do believe that proper inducements can be given in order to get employees to go along with the new changes.

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    1. Mark,it is true that some employees see change as negative. The inducements must be given but also managed by the managers so that each employee feels at home. The inducements are so vital because it will make the employee welcome change, if indeed they lose their job, they know that it will be easy for them to find another.

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  5. Great article Jose, to enforce change in the organization is a big task. Making that happen is even more difficult but it can become easy if you have employees who are flexible for change than being more resistant. For employees who are more resistant, organization should make more efforts to let them know that making changes will not only benefit company but it will also benefit them.

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    1. Great point Vijeta. Yes the quality of employee is important and the manager in my opinion must well informed about what makes his employees tick. That way he know who he has to hold hands with as the change is taking place.

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