Organizational Change and Ethical Considerations

This assignment delves into the complexities of organizational change, focusing on how managers can leverage both personal and structural power for successful implementation. It highlights the importance of ethical considerations, particularly when dealing with resistant positions. The discussion emphasizes the need for transparent communication, support, and ethical leadership to ensure a smooth and responsible change process.

Running head: MANAGEMENT OF CHANGE
Management of Change
Name of the Student:
Name of the University:
Author’s Note:

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Introduction
Management of change is an effective way of dealing the changes in an organization for
capitalizing on the change opportunities (Axelrod & Axelrod, 2017). This study will examine
reasons for which managers frequently demonize resistance to change as a problem, which needs
to be managed. Apart from that, the study will also assess the relationship between the power and
resistance in respect to organizational change. On the other hand, the study will examine the
ethical issue associated with power and resistance and assess the implication of managerial and
resistant position towards effective organizational change management. The example of
Woolworths Limited will be used as example of organizational change.
Employees’ Resistance to Change
Resistance to change is the actions initiated by the employees, when they perceive that
change occurring in the organization is actually a threat to them. Resistance to change in
organizations can be occurred for several reasons. In case of Woolworth, most of the employees
prefer to have predictability and stability in their professional life. In such situation, initiating
ERP system would be a huge change for the organization as well as the employees.
According to (Hornstein, 2015), the employees mostly want to be stick to their current
status quo. Hence, the new change in Woolworths can change the current status quo of the
employees, which can encourage them to resist the change. On the other hand, (Voet & Der,
2014) opined that the employees can resist to organizational change for the fear of unknown. The
new ERP system is completely new to the employees of Woolworth. In such situation, the
employees have fear for the unknown factors, which can encourage them to resist the change.
The employees always suffer from the fear of job security, which changes occur in their

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organizations. The installation ERP system may cause loss of job for some employees, as the
automated process of ERP system may reduce the human efforts. Hence, the employees may
resist to the change with the fear of job loss.
Different Understandings of Resistance
Resistance to organizational change occurs, when the employees imposes adequate
resistance for preventing the changes to be occurred. (By, Oswick, & Burnes, 2014) stated that
resistance to change can come up in the form of natural biological response against the change,
as the brain mostly wants to hold on the known matter. Biologically, the employees are
hardwired to the needs of certainty and security. Certainty is the tendency of the employees to be
stick onto the same place or same status. Hence, the tendency of the employees to stick on the
current status quo can lead them to raise resistance to organizational change. In comparison with
the fact, (Zhao, Seibert, Taylor, Lee, & Lam, 2016) opined that at biological level, the reptilian
brain is responsible for human flight and fight. Reptilian brain always functions purely for the
interest of the survival of people. Hence, anything that is perceived to be as threat to the
employees’ survival, they will naturally raise resistance against that organizational change.
Hence, the employees of Woolworths naturally impose resistance against the changes with ERP
installation.
In case of Woolworths, the employees may need new set of skills and knowledge for
handling and managing the new ERP system. (Der & Vermeeren, 2017) stated that lack of
competency in the new changes often make the people resistant to organizational change.
However, the employees of the organization have lack competencies in the areas of ERP system,
which has led the employee to resist change. On the contrary, (Lockett, Currie, Finn, Martin, &
Waring, 2014) opined that the employees, who resist to the organizational changes, do deep

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analysis on their personality that gives them better ability to manage their resistance. It often
converts them to the cause of changes. Poor communication with the employees makes them feel
uncertain about the organizational change. Hence, they impose opposition to the organizational
change. In case of Woolworths, poor communication can lead the employees to be resistant
about the organizational change.
Resistance as a Problem
Change is inevitable in every area of an organization towards its getting high level of
success. It can be opportunity, threat, problem and neutral for the employee depending on their
different viewpoints. Resistance to change is obviously a problem, which hampers the successful
change management process of the organization hindering its long term business success. Given
that organizational change is constant, the organizational leaders have to manage as best for
achieving the required changes with minimal disruption of the stakeholders. There can be more
resistance than necessary, when the change is handled ineffectively.
The employees may feel less optimistic and hopeful about their professional future, when
they resist to any organizational change. (Al-Haddad & Kotnour, 2015) opined that lowered
morale can be spread throughout the entire staffs, which can be a great issue for the employee
recruitment and retention. Hence, the managers consider resistance as a big problem, which can
be managed immediately. (Kovač, 2017) pointed out that motivating people to change direction,
establishing new strategy, transforming new business model and adopting new ways of
collaboration for implementing organizational change is quite challenging. Resistance to change
often spread negativity among the staff members of the organization, which ultimately causes

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disruptive work environment. Hence, the managers demonize resistance as huge problem, which
needs to be handled instantly.
Relationship between Power and Resistance
Organizational power has very close relationship with the resistance to change in
Woolworths. Power refers to the possession of authority associated with an individual or group
of individuals to influence others. The effectiveness of authority on influencing employee
resistance to change has conceptualized the power in organizational change management. The
managers of Woolworths can use personal power to manage the resistance level of the
employees. According to (Petrou, Demerouti, & Xanthopoulou, 2017), in personal power, one
person has more power over others and get the other persons to do something that they otherwise
would not do. In case of change management, power is viewed as potential ability of the change
agent to influence the employees in organizational change context. (Axelrod & Axelrod, 2017)
opined that the managers of Woolworths often uses expert power to influence the resistance of
the employees against the change. In expert power, the managers obtain respect from the
employees for their skills and knowledge. Hence, they can use such power to convince the
resistant employees for accepting the organizational change. On the contrary, (Wetzel & Gorp,
2014) stated that there is great relation between the legitimate power and resistance of the
employees in organizational change. The managers of Woolworths can use formal positional
power on the employees to convince the resistant employees towards organizational change.
Apart from that, the managers can also use referent power, reward power and association power
to influence the resistance level of the employees.

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As per (Holten & Brenner, 2015), structural power potentially belongs to any collectivity
in a particular structure regardless of the personal traits of the individuals. The relational network
of the interdependent groups is collaborated through collaboration and competition. The
managers of Woolworths can use control of scare resources, where they can allocate scarce
organizational resources among the group of competing interest for influencing resistance. Apart
from that, (Celik & Ozsoy, 2016) opined that centrality power can be highly effective for
influencing the resistance of change. While comparing personal power and structural power, it
can be said that both the power has huge influence on employee resistance. However, in contrast
with personal power, structural power has more stable effect on the resistance of change.
While considering the theoretical perspective of organizational change, the mainstream
approach of Kotter can be highlighted. According to (Sharif & Scandura, 2014), in mainstream
approach, the resistance to change is seen as pathology. In this approach, the managers and
change agents use manipulation, sanction, coercion and other forms of power for overcoming the
employee resistance to change. On the contrary, (Lord, Dinh, & Hoffman, 2015) opined that in
sociological approach, power is seemed to a coercion, which is the ability of managers to get the
employees to do something that they would not do otherwise. However, resistance is itself a
form of power, where the employees of the organization can exert some form of power.
However, both the approach equally influential on the demonization of the resistance level of the
employees.
Ethical Issues Associated with Power and Resistance
Ethics is the moral principle, which governs the behavior and activities of an individual.
According to (Xu, Payne, Horner, & Alexander, 2016), organizational ethics help an

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organization towards differentiating between right and wrong behavior and activities. It actually
directs the organizational members towards right direction. On the other hand, (Celik & Ozsoy,
2016) opined that organizational ethics help the organizational members towards taking moral
decisions towards the overall benefits of all members. While considering the Utilitarianism
ethical framework, it can be said that ethical and best action always maximizes utility.
Moreover, best action always enhances the pleasure and wellbeing of the people and minimizes
the suffering of the people. However, In case of power and resistance of Woolworths, the
powerful managers often impose the changes on the less powerful people and force them to
accept the changes. The managers often ignore the suffering level of the resistant position or
employees leading the unethical behavior.
Utilitarianism ethical framework equates good with pleasure and evil with suffering or
pain. (Hornstein, 2015) pointed out that the standard of Utilitarianism ethical framework is only
measured through right and wrong. The relationship of power with the organizational change
leads to purposefully misinterpreted statements regarding the organizational change. Oftentimes,
the managers of Woolworths have stated that organization change is actually intended for
purposefully increasing employee engagement. However, in real scenario, the true rationale
behind the organizational change results in performance based metrics, which can suffocate and
scrutinize the activities of the resistant position. In this way, the relationship between power and
organizational change may lead to unethical behavior.
Implications of Managerial and Resistant Positions in Change Management
The managers of the organization should create the way of communicating with the
employees about the new changes and initiatives. According to (Celik & Ozsoy, 2016), the

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employees or resistance position will be willing to accept the change, when they will understand
the urgency of the changes in the organization. In case of Woolworths, the mangers always
update the employees about the urgency of the changes for effective implementation of change
management. On the other hand, (Al-Haddad & Kotnour, 2015) opined that the managers should
provide effective training programs to the employees for understanding the unknown areas of
organizational change. Such effective training programs will bring a confidence among the
resistant position, which will help them to accept the changes towards implementing
organizational changes. While considering the mainstream approach of organizational change, it
can be said that organizational manages should have best knowledge about the organizational
change. Hence, they can use their expert power for convincing the resistant position for effective
organizational change.
As per (Lord, Dinh, & Hoffman, 2015), the managers should also implement a support
structure for supporting the resistant position in accepting the organizational change. The change
agents or managers should be highly supportive to the employees, who resists for organizational
change. Proper support from the managers obviously reduces the complexity level of the change,
which can encourage the resistant position towards accepting the organizational change. For
example, the managers of Woolworths are always supportive to their employees in reducing their
complexities in organizational change. While considering the sociological approach of
organizational change, it can be said that the managers can use the power to get the resistant
positions towards accepting the change.

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Conclusion
While concluding the study, it can be said that the fear for unknown can make the
employee resistant about the new organizational change. The fear for job loss also resists the
employees towards accepting the organizational change. Resistance to change can create
disruptive work environment in the organization. Hence, the managers often demonize
organizational change as a problem for organization. Power and resistance has great relationship
for implementing organizational change. The managers can use both personal power and
structural power for implementing successful organizational change. However, imposing change
and forcing the resistant positions to accept the change can lead to ethical issue. Moreover, the
managers should be highly communicative and supportive to the resistant position towards
implementing successful organizational change.

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