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CA Intermediate · Financial Management and Strategic Management · Strategy Implementation and Evaluation

Lakshmi Retail has launched a new strategy and finds that its store managers, though capable, resist the changes because they were never consulted and fear loss of authority. The management wants to build commitment by involving managers in shaping the changes. Which approach to overcoming resistance to change is this?

This is participation and involvement. Managers who help shape the change feel ownership and are less likely to resist out of fear of lost authority. Education only informs, coercion uses force, and manipulation uses token roles, none of which genuinely involves the managers in designing the change.

  1. ACoercion
  2. BEducation and communication
  3. CParticipation and involvementCorrect
  4. DManipulation and co-optation

Explanation

Participation and involvement means letting those affected help design and carry out the change, which reduces resistance arising from lack of say and fear of lost authority. Education and communication only informs people, coercion uses threats, and manipulation uses selective information or token roles, so none match genuine involvement in shaping the change.

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