Monday, 31 January 2022

Question No. 5 - IBO - 02 International Marketing Management Mcom 1st Year

Solutions to Assignments 

IBO-02 International Marketing Management

Question No. 5 Comment briefly on the following statement: 

(a) In addition to the general considerations in packaging, there are certain special factors to be considered in export packaging. 

There are certain special factors to be considered in export packaging design. These factors relate to

1. Language
A package does promotion functions too. The literature printed on the package material must be in local language. Then only a majority of the users can understand the product information the package label bears. Thus, language is one of the important considerations to be borne in mind while designing export packaging

2. Regulations in the foreign countries
Packaging is subject to government regulations in foreign countries. Packaging standards are specified for certain commodities. If packaging does not comply with foreign regulations, it may attract punitive action.

3. Buyer’s specifications
Sometimes, buyers specify their requirements with regard to packaging. They may like to purchase the product in a specific form which may be convenient to them. When the package is in the form of a tube rather than a jar, it would be easy for the buyers to handle the package of the product till it is used up.

4. Length of the distribution channel
Channel distribution is the pathway of reaching goods to the ultimate consumers. A lengthy distribution channel involves too many middlemen taking a longer time between production and final consumption. Then the package must endure the rigors of travel and handling in the long distribution channel. Stronger packaging is preferred in such cases.

Depending upon the time factor involved in the distribution channel, packaging must be designed. A package should be capable of withstanding the stresses of handling in transport and storage.

5. Environmental factors
Environmental factors like weather and climatic conditions greatly influence the package design. A tropical country requires different packaging than for a country with cold climate.

6. Disposability of packages
Generally, consumers in developed countries prefer disposable containers. If the package is disposable immediately after use, then due care must be given to the package material. The package material should not cause environmental hazards. It would be better if the material could be recycled.

7. Size of package
The size of the package is one of the important considerations in designing packages. It depends upon the buying characteristics of consumers. If buyers purchase regularly at short intervals, then the size of the package can be small. On the other hand, buyers with freezers at home may prefer big packages.



(b) International marketing displays an interesting paradox with respect to control situation. 

Marketers assume that the else choices they offer, the more likely guests will be fit to find just the right thing. They assume, for illustration, that offering 50 styles of jeans instead of two increases the chances that shoppers will find a twain they really like. International marketing displays an interesting paradox with respect to control situation. Notwithstanding, probe now shows that there can be too substantial choice; when there is, consumers are less likely to buy anything at all, and if they do buy, they're less satisfied with their selection.

 It all began with jam. In 2000, psychologists Sheena Iyengar and Mark Lepper published a remarkable study. On one day, shoppers at an upmarket food request saw a display table with 24 strains of gourmand jam. International marketing displays an interesting paradox with respect to control situation. Those who tried the spreads took a ticket for$ 1 off any jam. On another day, shoppers saw a resembling table, except that only six strains of the jam were on display. The large display attracted further interest than the small bone. But when the time came to take, people who saw the large display were one-tenth as likely to buy as people who saw the small display.

 Other studies have Vindicated this result that other choice isn't always better. As the variety of snacks, soft drinks, and beers offered at convenience stores increases, for specimen, transactions volume and punter satisfaction shrinkage. Either, as the number of withdrawal investment options available to workers increases, the chance that they will choose any shrinkages. International marketing displays an interesting paradox with respect to control situation. These studies and others have shown not only that undue choice can produce “ choice palsy,” but also that it can reduce people’s satisfaction with their verdicts, yea if they made good bones. My confreres and I've start that increased choice decreases satisfaction with matters as trivial as ice cream flavors and as significant as jobs.

These results challenge what we suppose we know about natural nature and the determinants of well- being. Both psychology and business have operated on the supposition that the relationship between choice and well- being is straightforward International marketing displays an interesting paradox with respect to control situation. The other choices people have, the better off they are. In psychology, the benefits of choice have been tied to autonomy and control. In business, the benefits of choice have been tied to the benefits of free requests more generally. Added options make no bone worse off, and they're bound to make someone better off.

 Choice is good for us, but its relationship to satisfaction appears to be more complicated than we had assumed. There's lowering frontier usefulness in having volitions; each new option subtracts a little from the feeling of well- being, until the frontier benefits of added choice standing out. What’s more, psychologists and business academics similarly have largely ignored another product of choice Fresh of it requires increased time and trouble and can lead to anxiety, rue, monstrously high expectancies, and nature- blame if the choices do n’t work out. When the number of available options is small, these costs are negligible, but the costs grow with the number of options. Ultimately, each new option makes us feel worse off than we did anteriorly.


(c) The revolutionary changes in the information technology is sweeping across global business. 

The effects of technological change on the global economic structure are creating immense transformations in the way companies and nations organize production, trade goods, invest capital, and develop new products and processes. Sophisticated information technologies permit instantaneous communication among the far-flung operations of global enterprises. New materials are revolutionizing sectors as diverse as construction and communications. Advanced manufacturing technologies have altered long-standing patterns of productivity and employment. Improved air and sea transportation has greatly accelerated the worldwide flow of people and goods.

All this has both created and mandated greater interdependence among firms and nations. The rapid rate of innovation and the dynamics of technology flows mean that comparative advantage is short-lived. To maximize returns, arrangements such as transnational mergers and shared production agreements are sought to bring together partners with complementary interests and strengths. This permits both developed and developing countries to harness technology more efficiently, with the expectation of creating higher standards of living for all involved.

Rapid technological innovation and the proliferation of transnational organizations are driving the formation of a global economy that sometimes conflicts with nationalistic concerns about maintaining comparative advantage and competitiveness. It is indeed a time of transition for firms and governments alike. This book provides a broad overview of these issues and seeks to shed light on such areas as the changing nature of international competition, influences of new technologies on international trade, and economic and social concerns arising from differences in national cultures and standards of living associated with adoption and use of new technologies.
At the institutional level, private enterprises are the principal instruments in many countries for developing and using technology, although governments play an important enabling role. The task of private enterprises is to be knowledgeable about the current state of science and technology, to understand the needs of the marketplace, and then to create technologies, products, and services that best meet those market needs. Morris Tanenbaum pointed out that this endeavor embraces many disciplines (basic science, engineering, production, distribution, marketing, and finance) and individual motivations. Many participants and observers of the contemporary technological scene propose that we are going through a period of discontinuous change as the breadth of technological applications expands and the time scale of change becomes shorter. For example, markets are becoming more global as transportation and communication speed the flow of knowledge of new products, and greater investment is being made in research and development (R&D) as technological capability has expanded. This process has placed new demands on organizations as they strive to obtain quick and effective market information and access, recoup their R&D investment more quickly, and recognize the importance of sharing technological capabilities. This is particularly true with regard to the information technologies—the one technology most rapidly changing other technologies. It achieves its greatest power when it is most global; where it provides the means to obtain access to the information systems of other countries and establish arrangements that promote the transfer of technology.

Government plays a central role in technology issues at the national level. Technology has now become a part of almost every political discussion as politicians have realized the impact of technology on world events. Governments vary in the way they influence and exploit technological changes, for example, through regulation, procurement, protectionist policies, and support of R&D. Public attitudes among various countries also differ, and these differences can affect governmental technology policy. “Given the fact that there is no ‘correct’ way of dealing with technologies which is applicable to all countries,” Sir Robin Nicholson commented, “each country must find its optimum way depending on its history, institutions, and public attitudes.” This implies that countries will move forward at different speeds, creating imbalances among nations. In this respect, multinational corporations, responsibly managed and sensibly treated by the countries in which they invest, and transnational joint ventures serve an important function by promoting global equilibrium.

From an international perspective, the main issue is to sustain and improve world growth and improve growth per capita. This breaks down into the problems of Western Europe, Japan, the United States, Eastern Europe and the Soviet Union, and the problems of the more and less advanced developing countries. Robert Malpas noted that it becomes essential for all these players to harness technology for growth; however, this effort is frequently constrained by protectionism, concerns about intellectual property, the demands of international marketing and finance, and, of course, national security. The net result appears to be that emerging nations, with a few exceptions, have even more difficulty achieving the growth necessary to close the gap with leading nations. Among the trends at the international level that can help sustain and improve world growth: the rebirth of interest in manufacturing, the spread of expert systems which multiply skills and help in the industrialization process, the acceptance of multinational corporations, the privatization of various industries, and the increased interest of governments in technology.


(d) A market research report must use the format that best fits the needs and desires of its readers. 

In essence, a market research report is a document that reveals the characteristics of your ideal customers, their buying habits, the value your product or service can bring to them, and the list of your top competitors.

The marketing research report paints a picture of what kinds of new products or services may be the most profitable in today’s highly competitive landscape. For products or services already available, a marketing research report can provide detailed insights as to whether they are meeting their consumers’ needs and expectations. It helps understand the reasons why consumers buy a particular product by studying consumer behavior, including how economic, cultural, societal, and personal factors influence that behavior.

Furthermore, the purpose of writing a marketing research report is to make calculated decisions about business ideas – whether they’re worth pursuing or not. This requires one primary skill which is observing the pattern which is hidden in the User Generated Content (UGC) written in different tones and perspectives on the social web.

Simply put, writing a market research report is a vital part of planning business activities and serves as a neat way to assimilate all the information about your target market and prospective customers.

Now, there are two key varieties of marketing research report formats – primary and secondary.

Primary vs. Secondary Market Research

Let’s take a look at the main recipes of how to make a market research report in detail:

Primary Research
This method of marketing research involves gathering firsthand information about your market and prospective clients. You study your customers directly by conducting:

  • Interviews (either by telephone or face-to-face)
  • Surveys and polls (online or by email)
  • Questionnaires (online or by email)
  • Focus groups discussions with a sample of potential customers and getting their direct feedback
  • Some crucial questions that you need to ask your prospective customers in your primary research are:

What are the factors that motivate you to purchase this product or service?
What do you like or dislike about this type of product or service already available on the market?
Are there any areas you’d like to suggest for improvement?
What according to you is the appropriate price for this product or service?
Primary research also involves analyzing competitors’ strategies, so you can find gaps and weaknesses that you can turn into your strengths.

Secondary Research

The second method of writing a marketing research report is all about analyzing the data that has already been published and using the available information on the web. That is, secondary research is done from reliable reports and statistics found on the websites of other organizations or authority blogs in your industry.

Sources can be:

Public: This includes all the free sources like social media and forums, Google Trends, YouGov, and government sources such as the United States Census Bureau.
Commercial: This includes industry insights compiled by research agencies like Pew, Gartner, Forrester, and so on. Typically, these are paid.
Internal: This is the historical market data your organization already has in-house, such as the Net Promoter Score, customer churn rate, and so on.
Secondary data can help you identify competitors, establish benchmarks, and determine target customer segments or demographics – people who live a certain lifestyle, their income and buying patterns, age group, location, etc.

How to Prepare Market Research Report

Now, here are some concrete steps and guidelines for writing a marketing research report.

Step 1: Cluster the Data
First off, compile all the relevant data you’ve accumulated from your primary and/or secondary research efforts. Survey results, interview answers, statistics from third-party sources – bring it all together and then analyze the information to sketch out the profile of your target market.

Step 2: Prepare an Outline
Next, create a skeleton of the report so that you understand what information will go where. An outline with sections and subsections will help you structure your marketing research report properly. A typical report includes an introduction, background and methodology, executive summary, results, and a conclusion with links to all references.

With an outline in front of you, start by writing the front matter of your report – an introduction that provides a brief overview of your business and the reason you conducted the market research. Include a summary of the market research process and the results you have analyzed. For instance, you might have been gauging the feasibility of a new product, so summarize that your market research report is for a new product launch.

Step 3: Mention the Research Methods
An important next step is to clearly mention the methods used to conduct the research. That is, if you conducted polls, specify the number of polls, the percentage of responses, the types of people or businesses targeted, and the questions included in the poll. Tag all the resources for demographic information, such as census data.

Step 4: Include Visuals With Narrative Explanation
Visuals such as charts and graphs are an important part of any research paper. They make sure that the findings are easy to comprehend.

So, create tables, graphs, and/or charts illustrating the results of the research. Accompany it with a narrative explanation of the visual data. Highlight the inferences you made based on this data.

Step 5: Conclude the Report With Recommendations
Finally, conclude your report with a section that lists actionable recommendations based on the research results to facilitate decision making. For example, all the numbers may point to the conclusion that your customers desire a particular feature that no other product on the market is currently offering. In this case, it is clear that it’s a good idea to invest your resources in providing that feature and gain a competitive edge.

At the very end of the report, include reference links to all the sources and an appendix for supplementary materials and further reading.


Question No. 1 - MCO-01 - Organisation Theory and Behaviour

Solutions to Assignments 

MCO-01 - Organisation Theory and Behaviour

Master of Commerce (M.Com) - 2nd Year 

Question No. 1 What is organisational change? Discuss the forces influencing the organisational change? “As the change is introduced in an organisation, it may face the resistance by the organisational members”. Elaborate. 



Organizational change is the movement of an organization from one state of affairs to another. A change in the environment often requires change within the organization operating within that environment. Change in almost any aspect of a company’s operation can be met with resistance, and different cultures can have different reactions to both the change and the means to promote the change. To better facilitate necessary changes, several steps can be taken that have been proved to lower the anxiety of employees and ease the transformation process. Often, the simple act of including employees in the change process can drastically reduce opposition to new methods. In some organizations, this level of inclusion is not possible, and instead organizations can recruit a small number of opinion leaders to promote the benefits of coming changes.

Organizational change can take many forms. It may involve a change in a company’s structure, strategy, policies, procedures, technology, or culture. The change may be planned years in advance or may be forced on an organization because of a shift in the environment. Organizational change can be radical and swiftly alter the way an organization operates, or it may be incremental and slow. In any case, regardless of the type, change involves letting go of the old ways in which work is done and adjusting to new ways. Therefore, fundamentally, it is a process that involves effective people management.

Managers carrying out any of the P-O-L-C functions often find themselves faced with the need to manage organizational change effectively. Oftentimes, the planning process reveals the need for a new or improved strategy, which is then reflected in changes to tactical and operational plans. Creating a new organizational design (the organizing function) or altering the existing design entails changes that may affect from a single employee up to the entire organization, depending on the scope of the changes. Effective decision making, a Leadership task, takes into account the change-management implications of decisions, planning for the need to manage the implementation of decisions. Finally, any updates to controlling systems and processes will potentially involve changes to employees’ assigned tasks and performance assessments, which will require astute change management skills to implement. In short, change management is an important leadership skill that spans the entire range of P-O-L-C functions.

1. Workplace Demographics

Organizational change is often a response to changes to the environment. For example, agencies that monitor workplace demographics such as the U.S. Department of Labor and the Organization for Economic Co-operation and Development have reported that the average age of the U.S. workforce will increase as the baby boom generation nears retirement age and the numbers of younger workers are insufficient to fill the gap. What does this mean for companies? Organizations may realize that as the workforce gets older, the types of benefits workers prefer may change. Work arrangements such as flexible work hours and job sharing may become more popular as employees remain in the workforce even after retirement. It is also possible that employees who are unhappy with their current work situation will choose to retire, resulting in a sudden loss of valuable knowledge and expertise in organizations. Therefore, organizations will have to devise strategies to retain these employees and plan for their retirement. Finally, a critical issue is finding ways of dealing with age-related stereotypes which act as barriers in the retention of these employees.

 

2. Technology

Sometimes change is motivated by rapid developments in technology. Moore’s law (a prediction by Gordon Moore, cofounder of Intel) dictates that the overall complexity of computers will double every 18 months with no increase in cost. Such change is motivating corporations to change their technology rapidly. Sometimes technology produces such profound developments that companies struggle to adapt. A recent example is from the music industry. When music CDs were first introduced in the 1980s, they were substantially more appealing than the traditional LP vinyl records. Record companies were easily able to double the prices, even though producing CDs cost a fraction of what it cost to produce LPs. For decades, record-producing companies benefited from this status quo. Yet when peer-to-peer file sharing through software such as Napster and Kazaa threatened the core of their business, companies in the music industry found themselves completely unprepared for such disruptive technological changes. Their first response was to sue the users of file-sharing software, sometimes even underage kids. They also kept looking for a technology that would make it impossible to copy a CD or DVD, which has yet to emerge. Until Apple’s iTunes came up with a new way to sell music online, it was doubtful that consumers would ever be willing to pay for music that was otherwise available for free (albeit illegally so). Only time will tell if the industry will be able to adapt to the changes forced on it.

3. Globalization

Globalization is another threat and opportunity for organizations, depending on their ability to adapt to it. Because of differences in national economies and standards of living from one country to another, organizations in developed countries are finding that it is often cheaper to produce goods and deliver services in less developed countries. This has led many companies to outsource (or “offshore”) their manufacturing operations to countries such as China and Mexico. In the 1990s, knowledge work was thought to be safe from outsourcing, but in the 21st century we are also seeing many service operations moved to places with cheaper wages. For example, many companies have outsourced software development to India, with Indian companies such as Wipro and Infosys emerging as global giants. Given these changes, understanding how to manage a global workforce is a necessity. Many companies realize that outsourcing forces them to operate in an institutional environment that is radically different from what they are used to at home. Dealing with employee stress resulting from jobs being moved overseas, retraining the workforce, and learning to compete with a global workforce on a global scale are changes companies are trying to come to grips with.

4. Changes in the Market Conditions

Market changes may also create internal changes as companies struggle to adjust. For example, as of this writing, the airline industry in the United States is undergoing serious changes. Demand for air travel was reduced after the September 11 terrorist attacks. At the same time, the widespread use of the Internet to book plane travels made it possible to compare airline prices much more efficiently and easily, encouraging airlines to compete primarily based on cost. This strategy seems to have backfired when coupled with the dramatic increases in the cost of fuel that occurred begining in 2004. As a result, by mid-2008, airlines were cutting back on amenities that had formerly been taken for granted for decades, such as the price of a ticket including meals, beverages, and checking luggage. Some airlines, such as Delta and Northwest Airlines, merged to stay in business.

How does a change in the environment create change within an organization? Environmental change does not automatically change how business is done. Whether the organization changes or not in response to environmental challenges and threats depends on the decision makers’ reactions to what is happening in the environment.

5. Growth

It is natural for once small start-up companies to grow if they are successful. An example of this growth is the evolution of the Widmer Brothers Brewing Company, which started as two brothers brewing beer in their garage to becoming the 11th largest brewery in the United States. This growth happened over time as the popularity of their key product—Hefeweizen—grew in popularity and the company had to expand to meet demand growing from the two founders to the 11th largest brewery in the United States by 2008. In 2007, Widmer Brothers merged with Redhook Ale Brewery. Anheuser-Busch continues to have a minority stake in both beer companies. So, while 50% of all new small businesses fail in their first year, those that succeed often evolve into large, complex organizations over time.

6. Poor Performance

Change can also occur if the company is performing poorly and if there is a perceived threat from the environment. In fact, poorly performing companies often find it easier to change compared with successful companies. Why? High performance actually leads to overconfidence and inertia. As a result, successful companies often keep doing what made them successful in the first place. When it comes to the relationship between company performance and organizational change, the saying “nothing fails like success” may be fitting. For example, Polaroid was the number one producer of instant films and cameras in 1994. Less than a decade later, the company filed for bankruptcy, unable to adapt to the rapid advances in one-hour photo development and digital photography technologies that were sweeping the market. Successful companies that manage to change have special practices in place to keep the organization open to changes. For example, Finnish cell phone maker Nokia finds that it is important to periodically change the perspective of key decision makers. For this purpose, they rotate heads of businesses to different posts to give them a fresh perspective. In addition to the success of a business, change in a company’s upper-level management is a motivator for change at the organization level. Research shows that long-tenured CEOs are unlikely to change their formula for success. Instead, new CEOs and new top management teams create change in a company’s culture and structure.




Resistance to Change 

Change is constant and unavoidable. However, human behaviour has repeatedly shown a resistance to change in the existing methods and ways of doing work. Organizations, for the advancement of business processes, require constant adaptation to changes. However, organizational resistance to change acts as a major hindrance in the path of development and success of an organization. Such resistance to organizational change brings in the need for defined change management. Before we move on to discuss the resistance to change theory, the reasons for resistance to change and the ways of managing the resistance to change, let’s take a quick look at the main causes of change in an organization:


Business strategy and structure changeMergers and acquisitionsProduct reaching the end of the life cycleChanges in government priorities


So, the influencing factors for organizational change can be both internal as well as external.



Resistance to Change Meaning in Organizational Context



The resistance to change meaning can be defined as a major obstacle in the way of development with new technology and methodologies. Change in the techniques and organizational structure comes at regular intervals. However, with pre-existing methods, individuals become reluctant to learn and implement the new techniques bringing in a resistance to change. Resistance can be in the form of protests and strikes by employees, or even in the form of implicit behaviour. The organization with its managers must take up initiatives in managing resistance to change and in the process develop a gradual adaptation to change ensuring productivity as well as efficiency at work. 



Reasons for Resistance to Change


The common causes of resistance to change in all organizations are stated below:


- People are not willing to go out of their comfort zones defined by some existing methods for learning something new.

- Changes in methods and techniques come with a change in power, responsibilities as well as influence. Organizational resistance to change comes in from people negatively affected by the changes implemented.

- Insecurity, laziness and lack of creative approach make people cling to the pre-existing customs there by resisting changes.

MCO-01 - Organisation Theory and Behaviour - Master of Commerce (M.Com)

Solutions to Assignments 

MCO-01 - Organisation Theory and Behaviour

Master of Commerce (M.Com) - 2nd Year 


Question No. 1 What is organisational change? Discuss the forces influencing the organisational change? “As the change is introduced in an organisation, it may face the resistance by the organisational members”. Elaborate.       CLICK HERE 

Question No. 2 “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors”. Discuss and explain the different stressors.                                                                                  CLICK HERE 

Question No.  3 Write short notes on the following: 
 (a) Bureaucratic theory 
 (b) Team effectiveness 
(c) Theory of Attribution 
(d) Models of men                   CLICK HERE 

Question No. 4 Differentiate between the following: 
(a) Classical conditioning and Operant conditioning 
(b) Formal and Informal Work Groups 
(c) Power and Authority 
(d) Organisation Culture and Organisation Climate      CLICK HERE 

Question No. 5 Comment briefly on the following statement:
(a) Redesigning jobs based on feedback is also a technique of job redesign. 
(b) Informal channel is the result of the operation of social forces at work place. 
(c) Organisation Development is the modern approach to management of change for human resources development. 
(d) The components of organisational effectiveness are managerial policies and practices, employee characteristics, organisational characteristics and the environmental characteristics.                              CLICK HERE 


Similar searches

MCO- 05                      Accounting for Managerial Decisions
IBO- 01                        International Business Environment
IBO - 02                      International Marketing Management
IBO - 03                      India's Foreign Trade

Saturday, 29 January 2022

IBO-03 - India’s Foreign Trade - Master of Commerce (M.Com)

Solutions to Assignments 

IBO-03 - India’s Foreign Trade

Master of Commerce (M.Com) - 1st Year 

Question No. 1 What do you mean by WTO? What is its role in in world trade? Describe India’s efforts for integrating itself with the world trade.                CLICK HERE

Question No. 2 How has the new tariff policy of the government of India helped improving competitiveness in the industries? Describe its salient features.                 CLICK HERE

Question No. 3 ”Garments have emerged as the star-performer in the Indian textile export scenario.” Elaborate.                 CLICK HERE

Question No. 4 Write short notes: 
(a) Indian competitors in the export of electronic goods
(b) Potential of health services in India.                 CLICK HERE

Question No. 5 Comment briefly on the following statements: 
(a) Electronic commerce is re-creating the worlds economy; 
(b) The government of India announced sweeping changes in the trade policy in
the year 1991; 
(c) The most remarkable aspect of Indian agriculture is its diversified nature; 
(d) The ASEAN region is important to India for several reasons.                  CLICK HERE


Question No. 5 - MMPC-001 - Management Functions and Organisational Processes

Solutions to Assignments 

MMPC -001 - Management Functions and Organisational Processes

Question No. 5 - Discuss the concept of change in organisations and the reasons for resistance to change. Briefly discuss the strategies to overcome resistance to change.


What is Resistance to Change?

Change is constant and unavoidable. However, human behaviour has repeatedly shown a resistance to change in the existing methods and ways of doing work. Organizations, for the advancement of business processes, require constant adaptation to changes. However, organizational resistance to change acts as a major hindrance in the path of development and success of an organization. Such resistance to organizational change brings in the need for defined change management. Before we move on to discuss the resistance to change theory, the reasons for resistance to change and the ways of managing the resistance to change, let’s take a quick look at the main causes of change in an organization:

  • Business strategy and structure change
  • Mergers and acquisitions
  • Product reaching the end of the life cycle
  • Changes in government priorities

So, the influencing factors for organizational change can be both internal as well as external.


Resistance to Change Meaning in Organizational Context


The resistance to change meaning can be defined as a major obstacle in the way of development with new technology and methodologies. Change in the techniques and organizational structure comes at regular intervals. However, with pre-existing methods, individuals become reluctant to learn and implement the new techniques bringing in a resistance to change. Resistance can be in the form of protests and strikes by employees, or even in the form of implicit behaviour. The organization with its managers must take up initiatives in managing resistance to change and in the process develop a gradual adaptation to change ensuring productivity as well as efficiency at work. 


Reasons for Resistance to Change

The common causes of resistance to change in all organizations are stated below:

- People are not willing to go out of their comfort zones defined by some existing methods for learning something new.
- Changes in methods and techniques come with a change in power, responsibilities as well as influence. Organizational resistance to change comes in from people negatively affected by the changes implemented.
- Insecurity, laziness and lack of creative approach make people cling to the pre-existing customs there by resisting changes.


Types of Resistance to Change

The types of resistance to change are stated below:

1. Logical Resistance: Such resistances come in with the time genuinely required in adaptation and adjustment to changes. For example, with the advent of talkies, the movie production houses had to shift techniques in the change from silent movies to talkies. This, in a very logical sense, took time for the sound engineers and even the filmmakers to adapt.

2. Psychological Resistance: Often resistance to change in change management comes with the psychological factor of fear of embracing the unknown, or even from hatred for the management and other mental factors like intolerance to changes.

3. Sociological Resistance: Sometimes resistances come not for particular individuals but from a group of individuals. In such cases, individuals do not allow their acceptance with the fear of breaking ties with the group.  


Managing Resistance to Change

An organization’s effort in managing resistance to change should come with proper education and training of the employees of the changes implemented. For a smooth change to facilitate, the organization has to take care of the considerations stated below:
  • Changes should come in stages. A one-time major change would straightaway put operations into a stop.
  • Changes should not affect the security of workers.
  • Leadership qualities in managers with initial adaptations would gradually encourage employees to do so.
  • An opinion must be taken from the employees who will ultimately be subject to the changes.
  • Educating the employees and training them with the new methodology will boost up their confidence and build their efficiency. 
The basic resistance to change theory defines the resistance to change meaning as the reluctance of people to adapt to the changes and to cling to the pre-existing customs and methods, mostly due to the fear of facing the unknown and its possible negative effects. The management of an organization must be well aware of the various aspects of resistance to organizational change and be trained if the need arises, in methods of managing resistance to change. This is crucial for a smooth transition and restoration of organizational harmony.


Overcoming Resistance

Although change will always come with opposition, it is certainly possible to overcome it. Managers should strive to help their employees adapt to changes and facilitate new variations in performance.

First, managers must be able to convince employees that the changes they propose are necessary. They should show how employees and the organization itself will benefit from these changes.
Second, managers can keep the following in mind to make changes smoothly:
Changes should not happen all at once because they are easy to apply in stages.
Changes should never create safety issues for employees.
Managers should consider the views of all employees who will influence the proposed change.
If managers show leadership by first adapting to the changes themselves, the staff is less likely to resist.
Adequate staff training in advance can help them to accept change with confidence.


The Importance of Participation

It is always a good idea to encourage employee participation when management plans for change. Since the changes are for employees, they should have a say in the planning process. Such participation will make them less likely to resist the implementation of the reforms.
Managers can arrange small informal meetings or conferences with staff on this. Managers must explain all the relevant details of the proposed changes. Employees should be encouraged to express their views as well.


If employees are not properly informed of changes in the way they work, especially if they do not see the need for change, they may become insensitive. They may also face opposition when they have not participated in the decision-making process.


Spotting Resistance

Note whether employees miss meetings related to change. Late assignments, forgotten obligations, and absenteeism may be signs of resistance to change.
Some employees will publicly challenge the change, its purpose, or how it happened. An employee with a high position and a senior officer may be strong in his or her resistance. Low-level workers may resist collective bargaining in ways such as downsizing, staying home from work, deliberately misunderstanding guidelines, and, in rare cases, planning to bring in a trade union.
Employees are also resilient to change by failing to take action to move to a new location, keeping quiet about their familiar and unfamiliar business, in the same way, withdrawing their interest and attention, and failing to add to interviews, negotiations, and application requests.

Overcoming resistance
Before trying to carry out any change, leaders must recognize that resistance is normal, especially when people don’t understand the change, trust leadership, or believe the new initiative is necessary. In some cases, employees might think that a different change is needed or they’ve become cynical after a few failed change projects. They may think that this is just another flavor of the month initiative that will fizzle out soon enough. Some people can also have low tolerance for change in general. 

The first thing to remember is that a supportive workplace culture, clear and inclusive communication, and reliable feedback loops as part of an organizational framework can be a huge help to any change management initiative. Experts know this too, which is why the recommended approaches to handling resistance always stress the importance of communication and employee involvement. 

Six change approaches Kotter and Schlesinger suggested Six Change Approaches to handle resistance to change:

1. Education and communication 
First and foremost, employees need to understand the reasons for the change initiative. It’s important for people to see the leaders’ logic and hear the rationale, even if they don’t agree with it. And this should be done before any steps towards the change are taken. To help employees really understand the reasons behind the change, leaders should use a range of techniques and multiple meetings to hammer home the message. This is especially true if they know there’s a lack of knowledge on the subject or that inaccurate information is being circulated.

2. Participation and involvement
When building a change management team, it’s important to gather input from all levels and departments of the organization. Having people involved in the process helps them engage in (or at least tolerate) the change in a positive way. If people are given a chance to come up with ideas, discuss the ideas of others, or otherwise be involved in the process, they’ll become invested in the change and understand it better. 

When it’s clear that certain individuals are more likely to resist the change, leaders should make sure to include them in the design aspect of the plan. They will then have ownership of it and they’ll feel more involved, leading to commitment, which is worth much more than meek compliance. This approach is most useful when leaders don’t yet have all the necessary information to plan the change and where there is a chance that employees will have the power to resist.

3. Facilitation and support
Leaders need to invest a little more time to provide facilitation and support when people are resistant due to fear and anxiety. Training alone is not enough. Leaders should think about guided discussion groups to help people talk about their worries or even vent their frustrations. In anxiety-inducing situations, the change curve can help leaders understand what kind of support is needed at each stage. 

4. Negotiation and agreement
When individuals or groups value logic and stability, and think they’d be worse off because of the change,  leaders need to take an approach that is fair, logical and consistent. Employees have to see clearly that the change—whether they agree with it or not—is being introduced and implemented in a way that makes sense. For example, if an action needs to be performed, leadership should communicate the reasons behind it and the outcomes that are expected. This will ensure that employees will see why certain choices are being made and provide the much-needed stability. 

5. Manipulation and co-optation
In order to encourage change-resistant people to adjust their position, information must be used in a selective way. Leaders need to determine which employees are happy with the prospect of change and appoint them as  “change agents”. Their mission will be to sell the change to others in the organization, so leaders must choose their agents wisely. For individual employees or well-respected group leaders, this could mean including them in the change management team. 

This approach can be a bit of an ethical dilemma, but it’s often the only option left when all others have failed. If it’s done incorrectly, and people realize that they are being manipulated, it can intensify resistance and lead to more problems.

6. Explicit and implicit coercion
If there’s absolutely no willingness from people to accept and participate in the change, leaders could consider communicating potential negative consequences of continuing the status quo. This approach should be the absolute last resort, only to be used if all else fails.

All Questions - MCO-021 - MANAGERIAL ECONOMICS - Masters of Commerce (Mcom) - First Semester 2024

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