Readiness for organizational change: the effects of individual and organizational factors

Abstract

PurposeThis study proposes to understand the conditions favorable for readiness for organizational change. The analysis helps in proposing managerial interventions that would be useful for change management in an organization.Design/methodology/approachThe study employs an empirical methodology to investigate the effect of individual and organizational factors on readiness for organizational change. The study has used descriptive research design. Bivariate linear regression is used to test the hypotheses, and multiple regression is used to identify the pertinent factor that affect individual's readiness for organizational change. Thereby, a causal relationship model is proposed, using few pertinent factors which are tested using the structured equation modeling (SEM) technique.FindingsFirst, each of the factors independently has a significant effect on readiness for organizational change. Second, the prior experience of change, commitment towards organization and participation in decision-making are the pertinent factors that affect readiness for organizational change. Lastly, commitment towards organization partially mediates the relation between participation in decision-making and readiness for organizational change.Practical implicationsThe analysis helps in proposing managerial interventions that would be useful for change management in an organization. It investigates how individual and organizational characteristics influence employees' readiness for organizational change, causing them to adopt the change process.Originality/valueTo the best of the authors’ knowledge, this is one of the first studies that investigates the pertinent individual factors and the organizational factors that affect readiness for organizational change in the context of an emerging economy, India.