Dealing with Employee Resistance while Deploying New Manufacturing ERP Program: A Complete Guide 

The only constant in the corporate world is ‘change,’ and resistance to change is often experienced by every other company. Whether big or small, management change or IT infrastructure advancement, important or insignificant, it’s basic human nature to resist anything different from their regular routine.

Deploying ERP for Manufacturing industry is one of the biggest changes a company can encounter. A high-performance industry-specific ERP system is known to build strong capabilities, enhance business performance, support informed decision-making, and provide a competitive edge to the manufacturing company. 

Even though the ERP platform brings transparency to management in terms of resources, finance, efforts, budget, and time, one significant problem the business faces is resistance from employees. Implementations often fail miserably because of strong opposition from the employees.

If you are running a manufacturing business and considering deploying an industry-specific ERP system, this article is for you. Read on to uncover the reasons for employee opposition to ERP deployment and how you can deal with it.

Reasons for Employee Resistance to Manufacturing ERP Implementation

• Insecurity Towards the New System

Manufacturing ERP software based on the latest technology and advanced features usually gives employees performance jitters. They fear that the advanced system might bring improved results to the company than the manual manufacturing process, and thus, they might have to lose their jobs. 

• Fear of Much Transparent System

A huge scope of errors, mistakes, and manipulations remains when manufacturing operations are monitored by manual supervision. Workers and employees think of using this space to cover their mistakes.

However, the ERP platform increases internal transparency to the next level, vanishing room for manipulation. It creates fear in employees’ minds that their mistakes might be caught soon and held responsible for the losses. Therefore, they naturally resist ERP implementation. 

How to Overcome Employee’s Resistance to Manufacturing ERP Implementation?

Your manufacturing unit must consider adopting the following listed ways for a smooth transition from the pre-ERP to the post-ERP phase:

• Planning and Preparation are the Key

Before taking the plunge, properly plan everything from start to end for a rewarding manufacturing ERP implementation. You should estimate possible job role changes and prepare your staff. Informing employees beforehand will make the blow less intense. 

• Employee Engagement

It will help if you get every employee on board. Before launching the ERP system in your manufacturing unit, the entire company must understand the need and strategy behind ERP implementation, from managers to supervisors to employees.

Moreover, top management must engage employees during implementation to keep resistance and non-cooperation at bay. With employee engagement, you can capitalize on manufacturing ERP benefits at the earliest. 

• Education, Training, and Support to Lay Foundation for Change Management

To achieve a streamlined operational flow, ensure overcoming the communication gap between the ERP implementation team and employees. The management must encourage employees to complete involvement and time for a successful knowledge transfer process. 

You can make your employees comfortable with the ERP at a later stage by organizing a dedicated training schedule and documenting knowledge transfer for future reference. Also, ask the vendor to provide post-implementation support to educate and train employees on how to work with a manufacturing ERP system. 

• Constant Communication to Avoid Confusion and Rage

Communicating with the employees between the originating and receiving end of the change due to ERP implementation can make or break your project’s success. Therefore, it’s crucial for the management and employees to reciprocate the thoughts and feedback while ERP is being deployed in the company. 

Communication gaps must be avoided by the change introducers (top management) to get regular updates from the other side (employees) and diagnose if any issue is detected. 

Wrapping it all up!

ERP for Manufacturing Industry is known to manage, automate, streamline, and control all crucial processes needed for successful production, accounting, inventory, resources, accounting, marketing, supply chain, and distribution management. They help top management set improved business practices and equip them with accurate, real-time information to make proactive decisions.

However, sometimes employees resist manufacturing ERP implementation due to their insecurities. Adopting the above-discussed measures can help manufacturing companies mitigate the unwanted impact of such crucial industrial change and bring a smooth transition by developing a cordial relationship between employer and employees. 

eResource Infotech is a leading ERP Software company in India. The company offers a range of ERP software products designed to address the needs of different industries, including manufacturing, construction, process manufacturing, trading, transportation, and services.