CIMA Exam CIMAPRA19-E03-1 Topic 7 Question 92 Discussion

EFG is a private hospital. It specialises in state-of-the-art laser surgery, an area which has developed rapidly in the last 10 years. Most of thestaff of EFG are used to change, as developments in technology, new surgical techniques and customer demands have changed rapidly during this time.However, in the lastthreeyears the economic recession has had a significant impact upon EFG, with the numbers of private customersreducing and its profits falling sharply.

The Board of Directors has recently announced that it is to restructure the Organization and rationalise some of the services it offers. A small number of staff will be made redundant and those remaining will have to take on extra responsibilities with no extra pay. Also, the current generous overtime payments are to be drastically cut. Many staff have expressed concern at the impact that these changes will have on them.

The Board of Directors hasclearlycommunicated the economic reasons for change to the staff through several meetings and are operating an open door policy, whereby staff can discuss the changes with their line managers at any time.

Which of the following, according to Kotter and Schlesinger, is theMOST likelyreason for resistance among EFG's staff?