2. When an acquisition takes place, there is usually a lot of concern on behalf of all the company’s employees. Not only the company that is being acquired also by the company that is doing the acquisition. Usually there will be jobs lost, consolidation of positions, promotions, demotions, etc. It is the responsibility of the Human Resources Department to ensure
Providing clarity about the change can improve the transition process. According to Mclean (2011), leaders
Step 2 is forming a powerful guiding coalition. Leadership will have to be on board and on the same page in regards to the change. Kotter and Cohen reveal the core problems people face when leading change. Their main findings are that the central issue concerns not structure or systems but behavior and how to alter it (Farris, 2008). The success of the changes will depend on the ability of the managers to show their commitment to change and motivate the employees to do the same. Without any process to track the implementation, the change can also fail.
Implementing change in an organization is complicated. It is important that a manager understands their role and responsibilities for which could very well be the success or failure of an organization. A manager should know how to handle staff resistance, and the areas that require change. There are processes that help management with assisting their staff members with adjusting to change and concentrate on the areas of importance. This process includes planning, assessment, implementation, and evaluation. The difference between a failed organization and a successful manager is when the manager has the ability to implement change with little disruption to
Communication breakdowns within an organization may contribute to resistance in changing organizations. Managers must be prepared to talk candidly about the needs for change, otherwise fear and uncertainty will remain a prevailing element that can damage morale and prevent successful implementation of the desired changes at all levels of the organization. Employees need comprehensive information about the nature, processes, and consequences of organizational change.
As stated in the memo that was distributed to the management staff on May 31, 2010, it is the responsibility of our management team to make sure this merger continues to take place as smoothly as possible. Management is also responsible for making sure we give this sales team every possible resource and tool to be productive, efficient, and successful. To make sure this is accomplished, we will conduct a needs analysis to ensure we are offering training in the most pertinent areas.
Not only were the leaders impressed by the employees insights, they took action to address all of the problems. As a result, participation increased, communication improved, relationship between employees and management improved, and access to training and development opportunities were wide-spread. But most importantly, once the original change initiatives were introduced, employees embraced the initiatives, offered insights on how to improve their outcomes, and ensured their success.
The merger is a qualifying reorganization. It is a forward triangular merger, §368(a)(2)(D), because the parent (ODI) created a subsidiary (Atlantic) with the contribution of its stock (the ODI Nonvoting Preferred Stock), and then the target (CPI) merges into the subsidiary (Atlantic). CPI’s shareholders will receive the nonvoting preferred stock of ODI, and CPI will disappear. The requirements necessary under §368(a)(2)(D) is that the subsidiary acquires substantially all of the target’s assets, which will be 90% of net and 70% of gross. This does occur because Atlantic acquires all of CPI’s assets and liabilities. Typically, stripping off a target’s assets are prohibited, but in this case the subsidiary is acquiring the cash received from the sale of the tools division. Another requirement is that the target’s shareholders only receive stock of the parent and not the subsidiary, and in this case, the stock transferred to CPI’s shareholders are all ODI’s stock. Another requirement is that the target is merged into the subsidiary, which does occur; CPI merges into Atlantic and Atlantic survives. The final requirements are the judicial authority requirements. There is a continuity of shareholder’s interest test, just like required in a type “A” merger. Even though not all three shareholders of CPI receive shares of ODI, Harry’s and Teresa’s ownership is greater than 50% of CPI. Harry owns 60% (300/500) of CPI and Teresa owns 22% (110/500) of CPI. It also meets the
Looking at three approaches by Freeman and Cameron’s (as cited in Lam, 2014, pg.137), we will consider the changes in work design, changes in technology and change in structure. In addition we will look at what Similarly and Cascio (as cited in Lam, 2014, pg. 137) suggest for steps to restructuring. In these steps the most important action is to communicate to all employees of what is being considered and what is going to happen. Also suggested is to seek employee’s input for making change which could include a round table meeting lead by Mr. Ramon
Post-merger integration work is difficult, political, and often driven by teams that still have day jobs. Budgets are undefined, executive leadership is not clear beyond the C-level, no plans exist, and no one has done it before. Companies are willing to spend money on due diligence ahead of signing the papers, but do not always follow through to ensure that targets are met. In many cases, integration team members are plucked from the “operate and maintain” staff, and either cannot see or do not share the strategic vision of the “design and build” dealmakers. Companies that thrive from mergers do eight things (at least) correctly: Have a Plan, Communicate, and Measure Results, Dedicate the Team, Automate, Plan for Turnover, Focus on Business
The authors were successful on this step by creating a valuable and diverse team that complimented each other, which was a necessity to ensure they had mixed points of views and opinions. Next, the team must create the approach they are going to take, and to be sure each team member has a clear understanding of the benefits for the future of everyone involved. This step was evident by the group meetings. Fourth, it is imperative for the team to demonstrate impeccable communication skills and the ability to influence others to comprehend the significance of the change (Kotter and Rathgeber 2006).
For most, resistance to change inevitable, for some it is their personality and others it is fear of the unknown. Organizational structure may change through downsizing, outsourcing, acquisitions, or mergers. In this paper, I will be examining resistance to change during a merger and how to manage this type of stressful and many times unclear change in an organization. There are three key strategies for managing resistance to change; communication, participation, and empathy and support. Throughout this paper I will discuss the three strategies above as well as some other contributing factors to change in an organization.
In order to move forward and keep ahead, I believe an organization need change leaders who have capabilities to have their workforce go from change avoidance to change acceptance. “One of the most significant strengths of an effective leader is the ability to create a positive work climate where people are energized to do their best work, free of unnecessary distractions” (Cronkite, n.d.). During this part of the change process I feel the change leader would have better success if he would be tactful and harness the skills of others by working in a collaborative rather than hierarchical way. Leadership in an organization involves instilling motivation and enthusiasm in the employees. An effective leader knows how to manage and tackle difficult situations and people. Many reasons can cause a force of change in organizations but I feel it’s up to change leaders to manage these planned and unexpected changes. (Word count: 548)
First, we will need to address employees through their direct supervisors. It will be most effective to send an email on Monday to notify supervisors of a meeting that week, on Wednesday, which will be done via teleconference. During this meeting, the VP of human resources, the PR team, as well as the CEO will all be present to address concerns. The CEO will announce the merger that will take place, and that this will allow the company to expand with its products and services. Unfortunately, this merger requires the company to consolidate departments and change job descriptions for many positions, which means many jobs will be eliminated from both companies. After her announcement, the VP of HR will provide the resources available for all employees, which include: a 24 hour HR hotline and a severance package for all employees who continue to work after this news.
I realized there are several steps an Organization Developer must consider in order for a company to have a successful outcome when they go through a transition. The OD must be able to identify several different components to produce a positive outcome. For instance, the OD must identify what needs to change with the company and communicate the problem in a clear and concise manner. It is also important to put together a team that can help with the process to ensure that everything goes accordingly. Also, if additional training is necessary then that must be factored in for others to understand the different aspects of someone else’s job. Employees must also understand why the change was necessary; therefore, the OD must be the one to convey that message in order for employees to understand the process of reorganizing. Once employees understand why the change is taking place, they must understand the new plans and goals