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company. In contrast, people who have less loyalty to the organization may comply
with the proposed changes simply because they do not care enough about the fate of
the company to oppose the changes. As a result, when dealing with those who resist
change, it is important to avoid blaming them for a lack of loyalty. [14]

KEY TAKEAWAY
Organizations change in response to changes in the environment and in
response to the way decision makers interpret these changes. When it comes to
organizational change, one of the biggest obstacles is resistance to change.
People resist change because change disrupts habits, conflicts with certain
personality types, causes a fear of failure, can have potentially negative effects,
can result in a potential for loss of power, and, when done too frequently, can
exhaust employees.
EXERCISES
1. Can you think of an organizational or personal change that you had to
go through? Have you encountered any resistance to this change? What were
the reasons?
2. How would you deal with employees who are resisting change
because their habits are threatened? How would you deal with them if they are
resisting because of a fear of failure?

7.4 Planning and Executing Change Effectively
LEARNING OBJECTIVES
1. Describe Lewin’s three-stage model of planned change.
2. Describe how organizations may embrace continuous change.
How do you plan, organize, and execute change effectively? Some types of
change, such as mergers, often come with job losses. In these situations, it is
important to remain fair and ethical while laying off otherwise exceptional
employees. Once change has occurred, it is vital to take any steps necessary to
reinforce the new system. Employees can often require continued support well after
an organizational change.
One of the most useful frameworks in this area is the three-stage model of
[1]
planned change developed in the 1950s by psychologist Kurt Lewin. This model
assumes that change will encounter resistance. Therefore, executing change without
prior preparation is likely to lead to failure. Instead, organizations should start
with unfreezing, or making sure that organizational members are ready for and
receptive to change. This is followed by change, or executing the planned changes.
Finally, refreezing involves ensuring that change becomes permanent and the new
habits, rules, or procedures become the norm.
Figure 7.13 Lewin’s Three-Stage Process of Change

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