Of course it is possible.
The changes are effective once the installation is done, yet I recommend at some later time to restart the machine anyway, especially if we're talking about Windows-based VMs.
You may right-click a VM in the Flash-based / HTML5 Web Client and update VMware tools with the following parameters:
Advanced Options:
/S /v "/qn REBOOT=R ADDLOCAL=ALL REMOVE=Hgfs"
You can also utilize
PowerCLI to update the VMware Tools like so:
$VM = "MyVM"
Get-VM $VM | Update-Tools -NoReboot
Be aware that when using paravirtualized drivers a short network loss might occur when replacing the VMware Tools based network drivers (one to two ping losses).
BR
NC