African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4131

Full Length Research Paper

Organizational performance and readiness for change in public sector undertakings

George Mathew
  • George Mathew
  • Anna University, Chennai, India.
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Sulphey M. M.
  • Sulphey M. M.
  • TKM Institute of Management, Kollam, India.
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Rajasekar S.
  • Rajasekar S.
  • Akshaya Institute of Management Studies, Coimbatore, India.
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  •  Received: 12 July 2014
  •  Accepted: 24 September 2014
  •  Published: 14 October 2014



The present study makes an assessment of the readiness/resistance to change of employees of State Public Sector Undertakings (SPSUs), compares readiness between executives and workers of SPSUs, employees of SPSUs and Central Public Sector Undertakings (CPSUs), and between employees of Public Sector Undertakings (PSUs) making profits as well as losses. The factors affecting readiness to change were identified from literature. A standard questionnaire was used to explore the factors that contribute to the success/failure of organizational changes. A comparative study of readiness to change among the employees of State and Central PSUs is carried out using statistical measures. The study established that the human factor in the State PSUs of Kerala is less resistant and more favorably disposed to change. The executives of SPSUs are more willing to change than workers. Comparing the readiness to change of employees of SPSUs and CPSUs, the former is found more willing. There is no significant difference in the attitude to change between employees of SPSUs making profits as well as losses. Employees of CPSUs in Kerala that are making losses are more willing and less resistant to change, whereas those making profits  are less willing and more resistant to change. The present research makes use of an instrument already developed by a previous researcher in a similar study. Further there is a limitation by the adequacy of samples used. The findings of the present research are of much assistance in developing strategies for the revival of PSUs in Kerala. Resistance to change of employees is alleged to be the militating factor against revival of the PSUs in Kerala. The present study comes out with findings not only to disprove this notion but also that the workers, in general, welcome change.


Key words: Central PSUs, State PSUs, organizational change, business process reengineering, critical success factors, critical failure factors, revival, readiness/resistance to change.