Orissa introduced power sector reform during the year 1995 for the first time in the country. The reform process briefly comprised the following steps. Orissa Hydro Power Corporation (OHPC) was incorporated as a company on April 21, 1995, to take care of generation of electricity from hydro powerhouses. Grid Corporation of Orissa (GRIDCO) was incorporated during the same month as a company to take care of transmission and distribution of electricity. Orissa State Electricity Board (OSEB), which was taking care of all these activities, was closed down. Hydro powerhouses and projects under the State Government and OSEB were transferred to OHPC. This process of reform necessitated transfer of employees from OSEB and the Government to GRIDCO and OHPC. There naturally was resistance from these employees for getting transferred to OHPC or GRIDCO. Why did the employees resist the change? What were the real causes of this resistance at the individual level? This study was conducted to go into the process of transfer of employees and the factors that the employees considered important to them for their transfer and subsequent absorption in OHPC or GRIDCO.

A survey was conducted amongst the employees of OHPC to determine what factor they considered most important for their preferences for absorption in OHPC, GRIDCO or the Government. These factors indicated the influence of individual needs to the resistance to the change process. It was found that different groups of employees, depending on their personal needs, considered different factors as most important which influenced their resistance to change. Non-executives of the Government working in the powerhouses considered better compensation package in OHPC as most important and did not resist the change. However, similar employees working at Bhubaneswar considered continuance at Bhubaneswar as most important. They resisted the change apprehending transfer out of Bhubaneswar. Engineers from the Government resisted the change because of loss of authority and power in OHPC. Others resisted the change because of limited number of places in OHPC for transfer. The suggestions on the basis of these findings for OHPC are to rationalize the compensation package for all its employees from OSEB and the Government. It was also suggested that OHPC should improve education and healthcare facilities where its powerhouses were located with emphasis on training and development of the employees.