Abstract
When organizations implement continuous quality improvement (CQI) programs, managers and employees are faced with massive change, often requiring a renegotiation of the psychological contract between employer and employee. This paper discusses generational differences in reactions to major change initiatives as well as change management issues in public and nonprofit organizations. Its specific focus is an organizational unit in the nonprofit sector whose CQI program, which required more employee involvement, was met with varied reactions among older veterans of its small workforce. Observations of the unit and its employees are used to develop a typology of reactions to major change among long‐time, older workers. Strategies are provided to managers who must develop methods to deal with adverse reactions to major organizational changes such as CQI. The typology may be useful to management development specialists who are attempting to transform organizations with significant age diversity.

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