Assessment 3: Business Memo on Ethics of Managing Resistance to Change

This assignment presents a business memo analyzing the ethical dimensions of managing resistance to change within the context of the Lakeland Wonders case study. The memo focuses on the actions of CEO Cheryl Hailstrom and Senior VP Mark Dawson, examining their approaches to a proposed organizational change involving offshoring. The analysis begins by establishing two key principles of ethical change management: fairness and respect. It then assesses Mark Dawson's resistance to the change, critiquing Cheryl Hailstrom's response based on relevant change management literature. The memo highlights Cheryl's failure to engage stakeholders and apply ethical principles. Recommendations are provided to improve the change process, emphasizing employee involvement, a participative leadership style, and constructive dialogue with Dawson. The assignment references several academic sources to support its arguments and recommendations, offering practical insights for effective and ethical change management.

To: Lakeland Wonders Management
From: Change Management Advisor
Date: January 22, 2019
Re: Business Memo on the Ethics of Managing Resistance to Change
The primary objective of this Memo is to provide significant insights on why Mark Dawson’s is
resisting the change process championed by Cheryl Hailstrom and also provides
recommendations on what Cheryl should do to enhance the success of the change process. It also
critiques Cheryl Hailstrom response to Dawson’s reasons for resisting the change process. As per
the case study, Cheryl’s major problem is her failure to engage key stakeholders in the change
process despite the fact that her intentions are to change the culture of the organization and her
failure to apply the principle of fairness and trustworthiness. She should, therefore, consider
involving other key stakeholders in creating the new vision of the organization.
Ethical Change Management Principles
Change is inevitable and organizations such as Lakeland Wonders are expected to continuously
adapt to the change process to enhance their competitive advantage in their industry. However,
Westover (2010) notes that only one-third of changes implemented by organizations become
successful. This is attributable to the fact that it is quite problematic to have change programs
successfully implemented by staffs due to their unwillingness to change what they are
accustomed to as in the case of Lakeland Wonders (Darnell 2013; Goksoy, 2016). Therefore,
organizations must adhere to the principles of ethical change management to address individual’s
resistance to the change process including the principle of fairness and respect.

The Principle of Fairness
The principle of fairness requires a person to utilize unbiased and open procedures for collecting
and evaluating information to aid in the decision-making process. For this reason, organization
executives are required to seek out conflicting perspectives and relevant information before
making crucial decisions (Kotter, 2012). Failure to take into account other people point of view
when making important decisions often result in the resistance to the change process
Principle of Respect
The principle of respect requires a leader to owner people’s worth and dignity. Leaders are
expected to treat all staffs with respect irrespective of their position in the organization. It is the
responsibility of leaders to treat everyone with consideration even if they find them to be
unpleasant (Westover, 2010). Therefore, adhering to this principle refrain a person from
resorting to violence, coercion, and intimidation to achieve that which their heart desires. It is
thus imperative for leaders to appreciate individual beliefs and differences in matters concerning
the organization.
Evaluating Mark Dawson’s Behavior Regarding the Change Process
According to Kantian theory, a decision or action is considered moral if it is accepted by
everyone, if it is based on a principle, and is not used to achieve one’s goal (White, 2011).
Dawson’s resistance to change is, therefore, management related because he does not agree with
Cheryl decision to transform the culture of the organization by offshoring its manufacturing
services (McNulty, 2002). He is also concerned that the management has not included the Union
representatives in the change process despite them playing an essential role in the company’s
operation. Failure to include them might result in employee’s strike which might undermine the
company’s reputation. However, Dawson’s resistance to the change process aims to benefit the

company by promoting innovative and better solutions and methods to expand the company
rather than changing its culture. He is also resisting the abandonment of the company’s identity
and core values by offshoring its manufacturing services, hence helping the company maintain
itself as a United States brand.
Critiquing Cheryl Hailstrom Decision
According to the three-step change model, change agents must address resistance to change
process by eliminating or reducing restraining forces while emphasizing the driving forces. As
per the case study, the restraining forces towards the implementation of the change process
include unwillingness to transform the culture of the organization, dilution of the brand by
offshoring manufacturing services, and failure to involve key stakeholders in the change process.
Therefore Cheryl decision according to the three-step change has failed in reducing the
restraining forces to enhance the implementation of the change process while at the same time
creating an imbalance in the existing status quo. She also failed in introducing systems and
practices that maintains and reinforces the desired outcome (Kennett-Hensel & Payne, 2018;
Stanford, 2016). On the contrary, she is focused on enhancing the shareholder’s value by
expanding the company’s operation minus taking into consideration the feelings of Dawson’s
and other staffs in the company. For all these treasons, she should consider discussing the vision
with all staffs and assess why they are resisting the changes she is championing and in
collaboration come with a solution to the problem.
Recommendations
Yilmaz and Kilicoglu (2013) argue that it is imperative for Cheryl to take into consideration
employees’ feelings and point of view before implementing the change process. Failure to do so
will result in various emotions including fear, frustration, uncertainty and a feeling of being

disoriented or threatened. Therefore, to enhance the successful implementation of the change
process, Cheryl should do the following:
i. Promote employees involvement and participation in the change process to avoid
dismissing potential valid staff concerns (Ajmal et al., 2012; Fagan-Smith, 2012). Their
involvement will help in identifying any incorrect assumptions and misunderstandings
ii. Cheryl should ensure that her leadership style is in line with the culture of the
organization (Aziz, 2018; Vukotich, 2011). For this reason, she need to adopt a
participative leadership approach and a two-way communication to bring closure to
issues that characterize her change process
iii. She should view Dawson’s resistance to the change process as something positive and
work with him to find lasting solutions (Vyas, 2013).

References
Ajmal, S., Farooq, M. Z., Sajid, N., & Awan, S. (2012). Role of Leadership in Change
Management Process. Abasyn University Journal of Social Sciences, 5(2), 111–124.
Aziz, E. M. A. D. E. (2018). How successful organizations implement change: Integrating
organizational change management and project management to deliver strategic value.
Philadelphia, Pennsylvania, USA: Project Management Inst.
Darnell, E. (2013). Leading Successful Changes in Your Business: A New Model Combining
Change Management and Change Leadership. Hamburg: Anchor.
Fagan-Smith, B. (2012). All together now: why employee engagement is critical throughout the
change process. Communication World, (4), 35.
Goksoy, A. (2016). Organizational change management strategies in modern
business.Hershey,Pennysylvania
Kennett-Hensel, P. A., & Payne, D. M. (2018). Guiding Principles for Ethical Change
Management. Journal of Business & Management, 24(2), 19–45.
Kotter, J. P. (2012). Leading change. Boston: Harvard Business Review Press.
McNulty, E.(2002). Welcome Aboard (But don’t change a thing). Harvard: Harvard Business
Review.
Stack, L. (2013). Leadership Strategies for the Four Stages of Change : Moving Your Employees
to Commitment. Highlands Ranch, Colo: The Productivity Pro, Inc.
Stanford, J. (2016). Breaking the Cycle of Failed Change Management. Alexandria, VA:
Association For Talent Development

Vukotich, G. (2011). 10 Steps to Successful Change Management. New York: New York Press
Vyas, R. (2013). Managing the dimensions of ethos, pathos and logos of change through
transformational leadership. Journal of Soft Skills, 7(3), 7–22
Westover, J. H. (2010). Managing organizational change: Change agent strategies and techniques
to successfully managing the dynamics of stability and change in organizations.
International Journal of Management & Innovation, 2(1), 45–50.
White, M. D. (2011). Kantian ethics and economics: Autonomy, dignity, and character. Stanford, Calif:
Stanford University Press.
Yilmaz, D., & Kilicoglu, G.(2013). Resistance to change and ways of reducing resistance in
educational organizations. European Journal of Research on Education, 1(1). 14-21