Change Management

Question 1

What constitutes a psychological contract?

Answer 1

The unwritten expectations that employers have for employees and the expectations employees have for their employers constitute a psychological contract between the two.

Question 2

Three explanations for why people resist change

Answer 2

Expectation: Managers who expect resistance to change often become defensive. Their defensiveness, in turn, causes resistance.
Risk: When people fear that change will hurt them (e.g., by resulting in layoffs, pay reductions, or unpleasant new responsibilities), they tend to resist change.
Compulsion: When managers try to force employees to accept change, employees often resist out of resentment of compulsion.

Question 3

What two groups identify sources of resistance from employees?

Answer 3

Organizational or Group Factors

Over-Determination or Structural Inertia
Narrow Focus of Change
Group Inertia
Threatened Expertise
Threatened Power
Resource Allocation

Individual Factors

Habit
Security
Economic Factors
Fear of the Unknown
Lack of Awareness
Social Factors

Question 4

What are seven methods to encourage change?

Answer 4

Consider international issues
Look at the big picture
Start small
Get the support of top mgmt
Foster participation
Encourage open communication
Reward those that cooperate