10 Restraining Forces

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Date Submitted: 08/08/2014 09:24 AM

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The first restraining force is complacency, this means that that the organization is operating effectively and nobody within the company feels that there is a need to make changes, in turn there will be resistance. Where Coin Capital is concerned complacency would not exist seeing that the chief executive announced that there will be restructuring taking place. The recession was public knowledge and all employees regardless of position should have been aware of this fact and be prepared if the company got affected by the economic crisis. The second restraining force is threats to status which means that organisational responsibility being restructured which in turn creates a sense of reduction in status especially to those directly affected. The retrenchments that will be taking place at Coin Capital will probably occur in all departments from bottom to top which means works responsibility will shift and increase. The workload will stay the same or increase to stabilize the company's financial situation which means employees in high positions might have to do work which used to be done by lower ranked employees, that creates feelings of status reduction. The third restraining force is the fear of increased responsibility, with organisational restructuring and retrenchments taking place at Coin Capital there will be increased responsibility amongst the employees who will remain with the company, as mentioned above. The fourth restraining force revolves around economic factors. According to Angelopulo and Barker 2006:109 employees are against change because it is seen as a threat to their economic security in turn affecting physiological, safety and esteem needs. This restraining force will exist at Coin Capital because the main reason retrenchments and organizational restructuring is taking place is because of the finical setbacks due to the recession in 2010. Those who are being retrenched will no longer receive an income and those who remain at Coin Capital could...

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