MSG Team's other articles

12974 Credit Rating Terminology

Credit rating is an important and almost central part of the overall credit risk management function in any organization. Every major organization around the world has implemented credit rating in some form. In many companies, credit rating has been overtaken by credit scoring. Instead of providing a rough range about the creditworthiness of a prospective […]

10241 Skills Required for Effective Managerial Communication

An individual needs to possess certain skills for effective managerial communication. Let us go through various skills required for effective managerial communication: Body Language and overall personality of an individual play an essential role in effective communication. It is essential for managers to express their thoughts in a positive way. Remember shouting at team members […]

12686 The Challenge for Contemporary Leaders is to Restore Trust and Faith in Institutions

Loss of Trust and Faith and the Rise of Populists Public trust and faith in institutions is at an all time low. Starting with the Global Financial Crisis of 2008 in the United States and then the Sovereign Debt Crisis in Europe in 2009, including the Brexit vote in the United Kingdom, and the election […]

12777 Collateralized Debt Obligations: Advantages and Disadvantages

In the previous article, we studied about how collateralized debt obligations (CDOs) are derivative instruments that have been built on top of other derivative instruments. They are complicated to understand and risky to trade. However, despite the various negative accusations against collateralized debt obligations (CDOs), they continue to be very popular. This is because they […]

10126 Laser Communication System

The various communication modes provide us the various routes and channels through which the data and information can flow among individuals. The individual will never come to know what the other person is thinking, unless and until the information is shared. Communication does not merely mean sharing one’s thoughts. The receiver after decoding the information […]

Search with tags

  • No tags available.

Resistance to change is inevitable as there are many parties who stand to lose from change and apart from the status quoists there are vested interests who would oppose change. The changes that the organizations and the companies introduced in the wake of the global financial crisis were systemic and fundamental in nature and hence there would be many reasons for people and employees in these organizations to resist change.

The primary reason why the people would resist change is that because of job losses and the associated risks of layoffs and restricting, they stand to lose and hence there is a strong element of resistance that enters the discussion.

Since the organizations in Australia undertook drastic changes to the way they worked, the people working in these organizations have every reason to resist the changes because they are at the losing end of the changes and hence have a stake in resisting change. This goes for the majority of people who were affected by the downturn and whose jobs and careers were at stake because of the global financial crisis.

The other reason for people or organizations to resist change is that the global financial crisis was systemic in nature and hence called for fundamental changes in which the system operated.

This meant that the people or organizations at the receiving end of these changes had to bear very drastic changes in the way they operated and hence those who gain by following the status quo had every reason to resist the change. This was especially the case with organizations that underwent restricting and cost cutting where though there were no drastic job losses, many of the perks and benefits for the employees were cut leading to widespread dissatisfaction and discontent with the kind of changes that were being proposed. Hence, this is the second most important reason for people or organizations to resist changes in the wake of the downturn caused by the global financial crisis.

The third reason why organizations resisted the changes in the aftermath of the global financial crisis is that many of the changes introduced led to regulatory and legal changes in the way organizations operated and hence there was every chance that these organizations had to implement rules and regulations that would curb excessive risk taking and speculation.

Given the enormous benefits that these methods of risk taking and speculation bring to the people and organizations concerned, it is indeed the case that they would not be willing to forego these benefits.

Hence, this is a very important reason for people and organizations to resist the changes introduced in the aftermath of the global financial crisis.

In conclusion, change is something that is constant but given the inherent tendency of the bureaucratic structures in organizations to resist change, there is always an element of resistance to change. Particularly when the changes are drastic as seen in the case of the global financial crisis, there tends to be steadfast opposition to change by the organizations and hence this is a fact of life that the change makers and the change agents have to factor in their strategies.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *