How to overcome resistance to change for policy makers?

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In the midst of a dynamic business environment, corporate leaders today face a paradox. Companies must be flexible, adaptive, and carry out ongoing transformations to achieve success in competition in their business environment. However, the changes made by companies can’t be separated from the risks that arise. Among the success stories of companies, there are also several failures experienced by other companies. It proves that changes made by the organization can be risky for the company if the change management is not done well, mainly because the company will always face changes without end.

Previous studies have examined the causes of failure and successful initiation of change. The results indicate that success depends on the “people factor” and their commitment to changes made by the company. In several studies, the contribution of employee resistance to failure in efforts to change the company is huge. This finding confirms that employee resistance becomes a challenge when companies have the initiative to improve. Resistance to change, generally found in many companies, including in Indonesia.

In Indonesia, the pressure caused by the increase in Regency Minimum Wages (UMK) for the Indonesian business world is one of the external triggers for companies to make changes to the company. It is because increasing the value of the minimum wage will undoubtedly affect labor costs. Based on a survey conducted at a manufacturing company located in Indonesia. As a result of changes in the company’s external environment then triggered the company to make policies. Some new strategies that have begun to be applied in companies to bring different responses from employees and some resist this change. Thus, how can companies overcome this?

Resistance to change can occur because employees see change as a threat to their interests in the company. They consider change as something that disturbs, threatens the stability and continuity of their work, and has the potential to take something beneficial to them (conflict of interest). Referring to those described above, the success of the changes made by the organization depends very much on the people in the organization. Thus, the next challenge faced by policymakers is finding and managing any factors that make employees anti-change.

Some studies find freedom, or in terms commonly known as job autonomy provided by companies can reduce employee resistance to change. Furthermore, if companies give employees more freedom to do their work, their rejection of change will decrease, and vice versa, if companies limit employee freedom, their resistance to change will increase. It gives employees the freedom to determine how they work. Second, the company can also give employees the freedom to make, consider, and make decisions related to work. Moreover, companies can also expand employment opportunities to use the skills they have in completing work.

In addition to giving freedom to work, it turns out employees with high self-confidence will also make them accept changes that occur. It means, by increasing self-esteem or self-efficacy, employees facing change will help companies overcome the resistance that occurs due to policy changes. Thus, they will more efficiently manage the work stress they experience, especially those that occur due to change. Employees with high confidence will always be optimistic that even if there are changes, they will still be able to complete their work well.

The two recommendation, namely providing freedom in work and increasing employee confidence, are expected to overcome employees who are anti-change. Thus, it will help increase employee productivity amid company policies that must change to meet the demands of the external environment. Even so, these two recommendation also need to be balanced with a policy package that emphasizes the efficiency, effectiveness, and productivity of the company so that the company’s change can achieve success.

Author: Dr. Praptini Yulianti Link:   https://www.ijicc.net/images/vol9iss8/9809_Arina_2019_E_R.pdf

Arina, Nidya Ayu, Praptini Yulianti, Tri Siwi Agustina, Luky Bagas Prakoso. 2019. Sovereignty in Working and Self-Efficacy in Company Change Initiatives: A Perspective from an Indonesian Manufacturing Company. International Journal of Innovation, Creativity and Change. Volume 9, Issue 8, 2019

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