Resistance to Change
The main idea of ATLAM is to upgrade its accounting system with the PETRA group-wide SAP system, which claims to be the best software in the industry. The implementation of this new system is expected to cause overwhelming changes for most employees, including top management. The main concern is whether ATLAM staff will be prepared to fully adopt the new system. The proposed plan is to gradually introduce the SAP system by April 2002, coinciding with the start of ATLAM’s new financial year.
ATLAM has a majority of employees who have been with the company since its establishment in 1981. This long tenure poses challenges when it comes to adjusting to a new system. The employees commonly exhibit resistance towards change, as it is natural for humans to feel uneasy about things that are unfamiliar.
In order to implement the SAP system, it is necessary to educate the senior accounts clerks through a pilot session so they can become familiar with the new system before it is introduced to other employees. Lim, the user representative, resists the implementation of the new system due to concerns about cost savings. He is worried about the potential expenses associated with the SAP system, which includes both financial and non-financial information and long-term strategic implications.
Lim expresses concerns about the potential negative response to implementing SAP due to a lack of PCs in the department. Training staff members who have never used a PC before would be expensive and time-consuming. Zulkifli, the manager of the Finance and Accounting Department, emphasizes that utilizing the SAP system would benefit the organization. However, Lim is worried about how well employees will adapt to the new system and also has personal concerns. There is a belief that employees resist change because they do not understand why this new system is being implemented. They are comfortable with their current way of working, which they have been doing for a long time.
The employees were hesitant to accept the change because it disrupted their comfort with existing processes and systems. They had concerns and fears about the new system, seeing it as a potential threat to their job security. Certain employees worried that the change would render their roles unnecessary, while others lacked confidence in their abilities and skills within the new system.
According to Lim, the fear of losing power and control may arise from personal matters and resistance to change. The manager might view these changes as a personal attack and a removal of their control. In addition, Lim sees these changes as an extra burden because he has to familiarize himself with the use of the SAP system as a user representative. This change initiative places additional strain on him by requiring him to handle his current duties while also taking on new responsibilities due to the system implementation. Specifically, Lim disagrees with this change and believes that implementing a different solution would be more effective in resolving the problem.
Despite the doubts of many managers regarding the necessity and cost-effectiveness of implementing the SAP system, it is crucial to acknowledge that this process encompasses not only technological advancements but also alterations in work processes, culture, and habits. These sources of resistance to change can arise from fundamental characteristics such as perceptions, personalities, needs, and desires. Modifying these elements presents a challenge as it entails changing employees’ attitudes and job roles that have become deeply ingrained over extended periods of time. Employees express concerns about grappling with unfamiliar tasks and potentially facing replacement or demotion. The fear of the unknown with regards to resistance to change originates from uncertainty and lack of familiarity with the proposed modifications.
Concerns have been raised about Zulkifli’s decision to remove Lim from the organization. This decision puts ATLAM at a disadvantage as they are losing an experienced employee who knew what he was doing. Despite Lim’s critical nature, his ideas should still be considered. The other manager believed that there was no need to remove him from the project team.
Solutions and Recommendations
Before an organization can implement change in SAP system, several key activities must occur. These activities include conducting necessary assessments to ensure the plan can be adapted by all departments. In any organization, changes will inevitably occur at various speeds. It is crucial for every employee to adapt to these upcoming changes.
While the changes in the SAP system may not be required by all employees, they are essential for the organization as they contribute to the development of a more effective and efficient accounting system that aligns with the PETRA group-wide SAP system. Ultimately, these changes will enhance employee productivity, even if they necessitate layoffs or render traditional skills obsolete. Such changes are crucial for the progress of ATLAM business.
An effective method to handle resistance to change is to actively engage all employees in the process. It is crucial to inform everyone about the mission and vision of the newly implemented system, ensuring they align with company objectives. The key challenge lies in understanding the core nature of resistance, which mainly arises from concerns related to social change and changes in human relationships that often come with technological advancements.
Changing the attitude and behavior of someone who has been doing repetitive tasks for a long time may take a while. However, management can take certain steps to effectively deal with these attitudes. These steps include focusing on new performance standards and motivating staff to see things differently. In addition, management can use the resistance shown by staff as a helpful sign and direction for implementing technological changes.
In order for the SAP system to be adopted, it must be understood as a substantial enhancement over the current ATLAM procedure and techniques. The advantages should be perceived as substantial and worthwhile, despite the likely difficulties of learning the new system and the associated costs. The implemented system should prioritize simplicty and ensure that it is presented in an easily understandable manner. Even if users agree in principle with the proposed change, they may lack enthusiasm if they perceive it as overly complex to grasp or implement.
Employees may find the SAP system unfamiliar, so it should be user-friendly for easy implementation and discontinuation if necessary. With a launch deadline of April 2002, there is limited time to devise strategies for encouraging employee adoption. The company must undergo significant changes, and it would be beneficial to trial the system gradually before making a final decision on its adoption.
Once a new procedure or item is implemented, it is important to have a way to easily assess the advantages it brings. This assessment can be done by measuring factors such as financial impact, time savings, efficiency improvements, or other relevant evaluation criteria. The resistance to change within an organization can originate from various sources related to its structure and composition. Some of these sources may include the company’s corporate culture, management beliefs, and employee relationships.
In order to change any habit, it is necessary to take small steps that follow a stage of progression. Rather than giving employees broad goals such as “be creative” or “think outside the box”, management should provide specific instructions and expectations. The proposed change should be divided into smaller, more attainable tasks. Moreover, rewards and accolades should be given to employees regularly to encourage ongoing habit changes.
This approach to addressing change resistance is effective at all levels of an organization and at any stage of a process, if done properly. It is important to approach employees with the belief that the change will improve their job performance, and to regularly review performance to ensure that the objective of implementing the new SAP system into ATLAM is achieved. Losing Lim as an experienced user representative would be a significant setback for the company.
Zulkifli should have included Lim in the project team, despite his negative thoughts about the SAP system. It is important for Zulkifli to consider the cost benefit analysis of the implementation and recognize that Lim may still see the benefits of using the new system, even though he has expressed skepticism. As a manager, Zulkifli should be able to motivate and persuade Lim to understand the long-term advantages that SAP can bring to the company.
