Readiness for change is defined as a cognitive precursor to resistance or as a support for a change effort. The main objective of this literature review is to explore readiness for change at the individual and organizational levels. It reviews publications to trace readiness for change. It provides a picture of the concept of readiness for change, explores and identifies the relationships between the readiness for change , individual change , and organizational change and the challenges of change. Dealing with the complex nature of change is the greatest challenge when following through and sustaining a change initiative. Leaning on institutional theory, it contextualizes the concept of readiness for change in Ethiopia.