Nearly from its beginning, Introl Systems, Inc. (the com- pany that produces com

Question

Nearly from its beginning, Introl Systems, Inc. (the com- pany that produces computer chips used in desktop and notebook computers), was located in Englewood Cliffs, New Jersey. This location was convenient for a wide range of employees. Those who lived in New York City had only a twenty-minute commute to work. Those who preferred to live in the suburban areas had more than a dozen small New Jersey communities from which to choose. Even those who preferred a rural lifestyle could find it within a forty-five-minute commute to work.

In 2003, however, company officials determined that the organization had outgrown its facility in Englewood Cliffs. Attempts to obtain permits from local government offices to expand the facility met with resistance. As a result, the company bought the former headquarters of Eastern Union in Morris Plains, New Jersey. After some remodeling to fit company needs, Introl Systems began operating in Morris Plains in June 2003.

The biggest issue facing supervisors concerning the move was the realization that hiring and retain- ing employees might be affected—especially in the engi- neering and design departments. That’s because many of these employees lived in New York City. What was once a twenty-minute commute from the city would now take nearly an hour each way. Further compounding this change was the realization that no public transportation

was available. Going to work now required employees to have access to automobiles.

Kathy Wilson supervised a small group at Introl Systems that worked exclusively on designing computer chips. All six of her employees lived in New York City. When Kathy learned of the move to Morris Plains, she immediately informed her employees. Initially, news of the move appeared to have little effect. But as the date of the move drew nearer, rumors were rampant that almost all of her staff were looking for jobs in New York City.

RESPoNDiNg to thE CASE

15-17. WhydoyoubelievemostofKathyWilson’semploy- ees were resistant to the move? Describe the factors leading to this resistance.

15-18. Assume that you are Kathy Wilson and it is spring 2003. You don’t want to lose any of the skilled and talented people you have on your staff. What specific steps will you take to ensure that your employees remain at Introl Systems?

15-19. Do you believe that company officials could have avoided some of the resistance to change— especially for those employees who lived in New York City? Explain.

Explanation / Answer

15-17. Kathy Wilson’s employees were resistant to the move because the new location was quite far from the current location in Englewood Cliffs, New Jersey. It would take around one hour which was initially just 20 minutes to go to the current location. And even there was no facility of public transportation and thus the employees would require using their automobiles.

Factor leading to resistance to change are:

Any Fear leading to change: the most common reason for the resistance to change is fear of changes. People might fear the uncertainty or the unknown coming their way. This fear includes fear that one may not be able to perform well as before.

Feeling Excluded: people at the time of changes feel that they were not being consulted regarding the changes and thus they feel excluded from the organization and thus resist to the change.

Poor Communication: anything regarding the changes must be communicated to its people. If this is not done, people will resist to changes.

Changes to routine: of course, the changes will lead to changes in the routine of the employees. This makes employees feel insecure about their comfort zone and efficiency to work and thus resist to change.

Misunderstanding about the changes: when the employees do not understand the need for changes, people will definitely resist the change.

Perceptions: people sometimes have perceptions that the changes in the organization are beneficial to only one group or department and thus resist to change.

15-18. Assuming the place of Kathy Wilson, the steps taken would be:

*The communication about moving the organization place must be done well. Any need for change, must be communicated well-in-advance and thus seeking employees trust.

*Employees must be felt that they are a part of the organization and so they are not felt excluded. So, employees must be taken along with the decision of the change.

*As the there was no public transportation facility, Kathy should propose top management to provide transportation facility to her employees.

*Even if the employees need to access their own automobiles, some monetary relief must be provided to make it easier for employees to bring their own automobiles.

15-19: The company officials could have avoided some of the resistance to change.

*The company officials should have done lots of communication regarding the change. Explaining the need of move, must be communicated well.

*As the company needed more facilities than from the current location, which failed to obtain permit from the local government officials, company should have clearly stated the employees that the move was for the betterment of the organization which would in turn be beneficial to its employees.

*The company should have provided full support to its employees regarding transportation, especially the employees who came from New York.

*The company should have conducted training programs to retain employees. These training programs would lower any fear of change and motivate them to work with the changes for the betterment of the organization and for themselves first.

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