Successful Organizational Change Through Overcoming Risks

Abstract

Organizational change typically implies risk for affected staff, who, consequently, will resist such change. A review of literature on this subject indicates that no appropriate framework has been developed for implementing challenging organizational change that looks after the interest of a risk-averse staff. We apply a model that illustrates the extent to which change managers can implement organizational change that is acceptable to the staff. Our model highlights three possible methods of implementation: (1) compensation for additional risks, (2) governance structures to reduce individual risks, and (3) governance structures to reduce the individual impact of risks. Our model also defines the conditions under which information, communication, and participation become effective tools for mitigating the challenge of risky organizational change.