Resistance to institutional and organizational change: An individual perspective

Abstract

In order to answer the question, how reactions to organisational change and resistance to change differ during different stages of institutional development of country the author conducted research in more than 200 Estonian companies after two waves of organizational changes. The first took place before 2000, during the period of social transience and reinstitutionalization. The second started from 2000 in the context of more stable institutions. The results indicate, that reactions to change depend not only on previous changes, but also on the previous institutional stage. In Estonia, the long period of stagnation during the Soviet regime created the expectation of radical change. It brought about deinstitutionalization and reinstitutionalization, which together created an environment of social transience. Expectations were high and the changes demanded a lot of energy. This resulted in tiredness and a desire for stability, but instead the changes continued in the form of continuous revolutionary change. This was rather demanding and created a lot of fear and resistance. The success of companies depends on people, and people usually have more skills and abilities than are being utilized by their organizations. If organizations want more from their people, the managers should consider the institutional impact of change on the employees’ attitudes toward change.