Don Richardson, vice president of marketing for the JEM Corporation, has just emerged from another strategic planning session aimed at developing a new line of business. The company’s management team has been discussing these plans for several months, since major organizational changes will be required to implement the strategic plan. Rumors about the plans have been circulating in the office for months, and several employees who are anxious about the expected changes have already con¬ fronted Don. His only response has been to tell them that an official announcement of this new business plan is expected shortly.

When he returns to his office, Don is met by an ad hoc committee composed of his department managers. The sales manager, Susan Williams, has been the most vocal of the group and, as expected, is acting as spokesperson. “Mr. Richardson, it is imperative that we speak to you right away. The employees are becoming very apprehensive about the proposed changes, and lately their job performance has slacked off.” “That’s right,” adds George Sussman, accounting manager. “My subordinates are asking me all sorts of questions concerning this new line of business, and I don’t have any answers for them. They’re not buying the ‘official announcement’ line any longer. I suspect that some of them are already looking for jobs in the event that department ‘changes’ phase out their positions.”

Implementing organizational change is one of the most demanding assignments that any executive faces. It has been suggested that every change requires three steps; unfreezing the current situation, implementing the change, and refreezing the effected change. This view, however, lacks the specific details needed by an operating manager who must initiate the change.

Required

a. Explain why employees generally resist organizational change.

b. Discuss ways JEM Corporation can alleviate employee resistance to change.