Question

Since the integration of two new stores, Fred Fryer's Donuts, Inc. has recognized that there is a need for reengineering the entire organization. The main need is to install new state-of-the-art kitchen equipment in the seven remaining stores, and then dispose of all old equipment to a salvage dealer or else incur a loss. The employees will have to be trained to operate the new computer programmed equipment. Some of the older employees are worried that learning the computerized system may be too difficult. Fred is setting up the main store as a training store. The regular employees from the main store have the responsibility of instructing the classes or overseeing the installation of the new equipment and testing its operation before employees return to their jobs. The organization is also replacing the old employee reporting system. Ordering of materials will now be done by an intranet. Fred has promised that no one will lose his or her job because of the organizational changes. He estimates that when the employees get to the computer programming training, as many as 10 percent of the current employees will resign or retire. He also thinks that opening a new store will absorb the excess employees.

Which of the following courses of actions is best for Fred and the team leaders to practice if they need to overcome employee resistance?
A) ignore the employees who resist the change
B) terminate employees who resist the change
C) educate employees and communicate with them
D) promise bonuses upon completion of the changes

Answer 1

To mitigate employee resistance, Fred Fryer's Donuts, Inc. should educate and communicate with employees to involve them in the change process, emphasize understanding, and provide training and support.

Step-by-step explanation:

The best course of action for Fred and the team leaders at Fred Fryer's Donuts, Inc. to overcome employee resistance to organizational change is to educate employees and communicate with them. This approach focuses on providing meaningful information about the changes, explaining the benefits of the new systems, and offering support and training. It also fosters an environment of transparency, where employees feel respected and involved in the process. This is preferable over ignoring or terminating employees who resist the change, as these actions can create further resistance and negative sentiments. Introducing incentives, such as bonuses, could be helpful but should not be the sole strategy as it may not address the underlying concerns or knowledge gaps that the employees may have.