Problem:
ABC Company (ABC) produces and bottles isopropyl alcohol for name brand drug stores. ABC has full production facilities in two adjacent states, Ohio and Indiana. The two plants are approximately six hours apart by highway travel. Given the company's cost structure and eroding market share, ABC is struggling financially. One of the plants will be upgraded with new technology that will require the existing workforce to attend 45 hours of college-level training at a local community college and pass an operator's exam to maintain employment. After the upgraded plant is operating successfully, the second plant will be closed. However, approximately half the entire workforce at the plant to be closed will be given the opportunity to work at the remaining plant, given that the employees are qualified and needed. ABC must successfully manage resistance from its employees to the changes requiring more education, the successful passing of an operator's exam, and potential relocation to another state since ABC is operating in a tight labor market that offers few suitable new workers.
Students should be able to successfully complete the following learning objectives after viewing your 8-10-slide presentation.
- Correctly define stakeholder groups
- Identify reasons for resistance to change by each group.
- Describe actions to mitigate change resistance.