Chapter 8 resistance to change copyright © 2017 mcgraw

1. Chapter 8
Resistance to Change
Copyright © 2017 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
2.pdf
Providing the Skills to Successfully Manage Change
Managing Organizational Change: A Multiple Perspectives
Approach, 3e, by Palmer,
Dunford, and Buchanan, offers managers a multiple
perspectives approach to managing
change that recognizes the variety of ways to facilitate change
and reinforces the need
for a tailored and creative approach to fit different contexts.
The third edition offers timely updates to previous content,
while introducing new
and emerging trends, developments, themes, debates, and
practices.
Highlights of the third edition include:
• New coverage of contemporary topics throughout, such as
“depth of change”
(Chapters 1, 4, and 12), change in a recession (Chapter 3), the
built-to-change
organization (Chapter 4), and the impact of social media and the

2. communication
“escalator” (Chapter 7).
• A new chapter, “The Effective Change Manager: What Does
It Take?” (Chapter
12), exploring competency frameworks, interpersonal
communication processes
and skills, issue-selling tactics, and the need for the change
manager to be
politically skilled.
• Improved visual appeal with more graphics and occasional
memorable cartoons.
Now available with
—the leading adaptive learning resource.
connect.mheducation.com
Providing the Skills to Successfully Manage Change
Managing Organizational Change: A Multiple Perspectives
Approach, 3e, by Palmer, Dunford,
and Buchanan, offers managers a multiple perspectives
approach to managing change that recognizes
the variety of ways to facilitate change and reinforces the need
for a tailored and creative approach to fit
different contexts.
The third edition offers timely updates to previous content,
while introducing new and emerging trends,
developments, themes, debates, and practices.
Highlights of the third edition include:
• New coverage of contemporary topics throughout, such as

3. “depth of change” (Chapters 1, 4, and 12),
change in a recession (Chapter 3), the built-to-change
organization (Chapter 4), and the impact of
social media and the communication “escalator” (Chapter 7).
• A new chapter, “The Effective Change Manager: What Does
It Take?” (Chapter 12), exploring
competency frameworks, interpersonal communication
processes and skills, issue-selling tactics,
and the need for the change manager to be politically skilled.
• Improved visual appeal with more graphics and occasional
memorable cartoons.
Now available with
—the leading adaptive learning resource.
connect.mheducation.com
Resistance to ChangeResistance is a very real and common
issue that is often faced by change managers during the change
process.
Resistance to change may be the reason for the failure of an
attempted change. However, the reality may be more complex.
For example,
sometimes poor management of the change process can be more
at fault than resistance (in such a situation resistance might
even be a valuable ‘warning sign’)
sometimes change is welcomed (not resisted) because it is seen
as having benefits (e.g., improved security, money, or status)

4. Resistance to Change
Causes of Resistance
Symptoms
- Active
- Passive
Managers as Resisters
Managing Resistance
Change Images & Resistance
6-*
Copyright © 2017 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Causes of ResistanceInnate dislike of changeLow tolerance of
uncertaintyPerceived negative effects on interestsAttachment to
the organizational culture/identityPerceived breach of
psychological contractLack of conviction that change is
neededLack of clarity as to what is expectedBelief that the
proposed changes are inappropriatePerception that the timing is
wrongToo much changeCumulative effect of other life
changesPerceived ethical conflictLegacy of past
changesDisagreement with how the change is managed

5. Resistance to Change
Causes of Resistance
Symptoms
Active
Passive
Managers as Resisters
Managing Resistance
Change Images & Resistance
6-*
Copyright © 2017 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Symptoms of Resistance: Activebeing criticalfinding
faultridiculingarguingappealing to fearstarting
rumoursdistorting facts blaming/accusingintimidating/
threateningmanipulatingsabotagingblocking/ undermining
Resistance to Change
Causes of Resistance
Symptoms
Active
Passive
Managers as Resisters

6. Managing Resistance
Change Images and Resistance
6-*
Copyright © 2017 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
*
Symptoms of Resistance: Passive
Agreeing verbally but not following through (“malicious
compliance”)Failing to implement changeProcrastinating or
dragging one’s feetFeigning ignoranceWithholding information,
suggestions, help, or supportStanding by and allowing change to
fail
Resistance to Change
Causes of Resistance
Symptoms:
Active
Passive
Managers as Resisters
Managing Resistance
Change Images & Resistance

7. 6-*
Copyright © 2017 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Managers as Resisters
Managers are usually represented as the advocates of change
(and ‘the managed’ as the resistors, but the reality can be more
complexManagers are not a homogeneous group, for example,
those in one part of an organization may support a change, but
those in another part oppose itMiddle managers have a crucial
role: they can be critical players in determining the success (or
otherwise) of a change initiative
Resistance to Change
Causes of Resistance
Symptoms:
Active
Passive
Managers as Resisters
Managing Resistance
Change Images & Resistance
6-*
Copyright © 2017 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.

8. Managing Resistance 1‘Let Nature Take Its Course’
A largely ‘hands-off’ approach based on the view that people
respond to change by progressing through a stage response –
denial, resistance, exploration and commitment – i.e., resistance
is a stage that will ‘pass’ without management intervention
Attraction Strategies
Based on the idea that resistance is attraction to elements of the
current system so managing change involves identifying (and
making explicit) the new attractors (in the proposed change)
Resistance to Change
Causes of Resistance
Symptoms
Active
Passive
Managers as Resisters
Managing Resistance
Change Images & Resistance
6-*
Copyright © 2017 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.

9. Managing Resistance 2Contingency Approaches
‘contingency’ means that actions are tailored to the specific
characteristics of the situation, that is, there is no ‘one best
way’
Kotter & Schlesinger (2008) identify six strategies for
managing resistance, appropriate in different situations:
education – keeping people informed
participation – involving people actively
facilitation – providing technical and emotional resources
negotiation – offering incentives to reduce resistance
manipulation – making selective use of information
coercion – threatening undesirable consequences
Resistance to Change
Causes of Resistance
Symptoms
Active
Passive
Managers as Resisters
Managing Resistance
Change Images & Resistance
6-*
Copyright © 2017 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Change Images & Resistance

10. Resistance to Change
Causes of Resistance
Symptoms
Active
Passive
Managers as Resisters
Managing Resistance
Signs of Resistance
Change Images & Resistance
6-*
Copyright © 2017 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.ImagesPerspective on
Resistance to ChangeDirectorResistance signifies that not
everyone is on board with the change program. Managerial
skills can be acquired to overcome this.NavigatorResistance is
expected and represents different interests within the
organization. It should be overcome but this is not always
possible.CaretakerResistance is short-lived and change will
occur regardless of attempts to stop it. CoachResistance is to be
expected and managers need to show others that the resistance
does not promote effective teamwork. InterpreterResistance
occurs when the change is not interpreted well or understood.
The manager’s role is to clarify the meaning of the
change.NurturerResistance is irrelevant to whether the change
will occur. Resistance is a matter of guesswork by the resistor.

11. Quantitative Literacy:
Thinking Between the Lines
Third Edition
Chapter 4
Personal Finance
© 2018 W. H. Freeman and Company
Lesson Plan
Saving money: The power of compounding
Borrowing: How much car can you afford?
Savings for the long term: Build that nest egg
Credit cards: Paying off consumer debt
Inflation, taxes, and stocks: Managing your money
© 2018 W. H. Freeman and Company
4.1 Saving money: The power of compounding (1 of 19)
Principal: The initial balance of an account.
Simple interest: calculated by applying the interest rate to the
principal only, not to interest earned.
Simple Interest Formula
Simple interest earned =
Principal × Yearly interest rate (as a decimal) × Time in years
© 2018 W. H. Freeman and Company
4.1 Saving money: The power of compounding (2 of 19)

12. Example: We invest $2000 in an account that pays simple
interest of 4% each year. Find the interest earned after five
years.
Solution
: The interest rate of 4% written as a decimal is 0.04.
Simple interest earned
= Principal × Yearly interest rate × Time in years
= $2000 × 0.04/year × 5 years
= $400
© 2018 W. H. Freeman and Company
4.1 Saving money: The power of compounding (3 of 19)
Compound interest is paid on the principal and on the interest
that the account has already earned. In short, compound
interest includes interest on the interest.
Example: Suppose that $1000 is invested in an account earning
10% interest compounded annually.
After one year the account earns 10% of $1000 or $100—the
same as with simple interest.
At the end of the second year, the account earns 10% of $1100

13. or $110. The account balance is $1210 when the interest is
compounded annually, but the account balance is only $1200 for
simple interest.
© 2018 W. H. Freeman and Company
4.1 Saving money: The power of compounding (4 of 19)
Simple and Compound Interest ComparisonEnd of yearSimple
interest: InterestSimple interest: BalanceSimple interest:
Growth110% of $1000 = $100$1100$100210% of $1000 =
$100$1200$100310% of $1000 =
$100$1300$10010$100$200050$100$6000Yearly compounding:
InterestYearly compounding: BalanceYearly compounding:
Growth10% of $1000 = $100$1100$10010% of $1100 =
$110$1210$11010% of $1210 =
$121$1331$121$235.79$2593.74$10,671.90$117,390.85
© 2018 W. H. Freeman and Company
4.1 Saving money: The power of compounding (5 of 19)
Period interest rate – the interest rate for a given compounding
period, for example one month. This formula uses the annual

14. percentage rate, APR.
Period interest rate
Example: The period interest rate for $500 invested at 6%
compounded monthly would be
© 2018 W. H. Freeman and Company
4.1 Saving money: The power of compounding (6 of 19)
Compound interest – interest paid on both the principal and the
interest the account has earned.
FORMULA 4.3 Compound Interest Formula
Balance after t periods
Alternatively, we can write the formula as
Where interest is compounded n times per year and y is the
number of years. This form is equivalent since and the number
of periods is .
© 2018 W. H. Freeman and Company

15. 4.1 Saving money: The power of compounding (7 of 19)
Example: Suppose we invest $10,000 in a five-year certificate
of deposit (CD) that pays an APR of 6%. What is the value of
the mature CD if interest is:
compounded annually?
compounded quarterly?
compounded monthly?
compounded daily?
© 2018 W. H. Freeman and Company
4.1 Saving money: The power of compounding (8 of 19)