Negative Effects of Change Management

by Luanne Kelchner; Updated September 26, 2017

Change management is a process businesses use to implement significant changes to the organization. The organization may use change management when implementing policy changes to the management of the organization, production methods or employee policies. The systematic approach to making changes in the organization attempts to transition employees through the disruption a change can cause. While the system attempts to minimize the negative effects, employees and management can have trouble with the change.

Employee Resistance

Implementing a new policy can result in employee resistance. Employees resist change when there is not a clear understanding of the reason for the change. A lack of knowledge on how it will affect their work can also cause employees to resist. Workers with personalities that require process and reliability in their work life will find change a difficult adjustment.


Handling a change in the workplace effectively can take time, which can result in lost production and expense. The change process requires training and communication to employees affected by the change. For example, implementing a new continuous improvement system in a company requires training for all employees in the tools, methods and processes the new system needs for success.

Lack of Support and Failure

A lack of support for change management can cause new policies and processes to fail. All invested employees and management must be on board with the change process for success. The system will fail if employees do not use the new system or policy and management does not enforce the change. Before a company begins the change process, it is vital that management and staff support the decision and make a commitment to the new policy or process.


If the company does not handle change effectively, it can have a detrimental effect on the morale of workers. Low employee morale has a negative effect on productivity, which can cause a financial loss for the organization. Lowered employee morale also results in increased absenteeism and high employee turnover. Including employees in the change process and communicating throughout reduces morale problems.

About the Author

Luanne Kelchner works out of Daytona Beach, Florida and has been freelance writing full time since 2008. Her ghostwriting work has covered a variety of topics but mainly focuses on health and home improvement articles. Kelchner has a degree from Southern New Hampshire University in English language and literature.