The effects of change on an employee and an employer

When this happens, it is inevitable that some employees will leave the company to seek employment elsewhere. Over time, routine sets in and the employees start to feel comfortable not only with their job security but also with each other. When a change is introduced, employees often resist it and the status quo becomes disrupted.

All of these can be devastating changes to employees, particularly those who are supporting families. The best way to handle these changes while keeping the morale up of the remaining or unaffected employees is by communicating with all of the employees every step of the way and treating the affected employees with fairness and compassion.

You may see these employees taking longer lunch hours, coming in later and leaving earlier or simply not coming into the office at all. Carey School of Business website, change in the workplace creates two factions: Loss of Loyalty Many companies look to salaries and benefits as the first places to cut back when looking to make changes that involve cost-saving.

The employees that remain, whether they stay voluntarily or because they could not find employment elsewhere, are often resentful.

Typical changes that negatively impact a portion of the employees are salary cuts, loss of benefits, downgrading in job position, job loss or relocation to another city, state or country.

The Effects of Change on Employees

Part of the reason, Reardon suggests, is that many employees do not believe the management handles change effectively. The group taking control will usually dig in, increase their productivity, hit their deadlines and do everything they can to shine in front of their managers hoping they will sail through the changes with their job intact.

Whatever the reason, change is almost always difficult for employees and it can wreak havoc with your bottom line. The remaining employees cope with the changes by avoiding them. There may be many causes for increased stress levels, including perceived injustices or unfairness, lack of timely communication by management or fear of future changes.

Depending on the type of employee -- one who copes with the change or one who shies away from it -- the effect of this fear may vary. Those who struggle with change may become less productive and overly cautious.

Whether they are looking for new jobs or simply avoiding the office, expect to see an increase in employee sick days while you carry out the organizational changes. Employees lose their company loyalty and may even become angry enough to purposefully sabotage the company.

Video of the Day Brought to you by Techwalla Brought to you by Techwalla Fear of Loss of Job Changes in an organization may cause employees to begin to feel less secure about their jobs. Motivation decreases, taking job performance along with it.

In contrast, those who shy away from the change may ultimately end up quitting the job because of it. Employees who cope with change but fear the loss of their job may be inspired to work harder and prove themselves.

After some resistance, the status quo eventually returns to some degree of normalcy. An organization that handles change ineffectively may find that, once the resistance to change settles down, key employees have left the company due to the change.

The writer further explains that the employees who cope with the change often try to get ahead with the new management or otherwise treat the change as a form of challenge which they strive to overcome. Increased Time Away From Work When organizational changes are announced, particularly when there is downsizing involved, employees generally divide into one of two groups: Before announcing changes to your employees, put yourself in their shoes to help you to understand how they might react so that you can mitigate risks to your company and unnecessary stress on them.

Loss of Confidence in Management Change may bring about a loss of confidence in the overall management of the organization, according to Skip Reardon on the website Six Disciplines.

Organizational change can happen for several reasons, including financial concerns, a merger or acquisition, expanding markets, accommodating growth or a simple shift in business model.

Negative Impact of Organizational Change on Employees

The lack of confidence could result from a failure on the part of management to effectively communicate the effects of change, the reasons for it and the ultimate goal in the organization with regard to the change.

Life Changes Some organizational changes require major restructuring, resulting in sweeping life changes for a number of employees.The Effects of Change on Employees by George Lawrence J.D.

- Updated September 26, When people work together, it is natural that they become close. In this rapidly evolving environment, organizations cannot afford to ignore the effects of change on their employees, or the effects of employee attitudes toward change on their own success. Our research suggests that the impact of change can be consequential and the returns on handling it.

Effects of Change and Change Management on Employee Responses: An Overview of Results from Multiple Studies Donald B. Fedor and David M. Herold.

effects of change management on employee performance in co-operative bank of kenya limited by doreen kendi kinoti a research project submitted in partial fulfillment of the.

Jun 27,  · The Effects of a Change in Business Environment on Strategic Planning Positive & Negative Effects of Employee Motivation Three Methods to. “Employees’ reactions to change are influenced by a number of factors.

It is reasonable to expect that change agents focusing on employee sities of employee reactions to change exist. Employees’ reactions, as defined by the employees’ level of resistance .

The effects of change on an employee and an employer
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