Role of Communication & Employee Involvement in the Process of an Organizational Change

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1. INTRODUCTION & BACKGROUND

1.1. Introduction
Change, in general, indicates any act of making something different. The factors that necessitate change in organizations are broadly categorized into people, technology, information processing and communication, and competition. Some changes in the organization occur suddenly without the conscious efforts of the people. These are called unplanned changes. On the other hand, some changes are initiated by the management to accomplish certain goals and objectives. These are called planned changes. More often, change is met with resistance.

The resistance can be implicit (or covert) or explicit (or overt). Resistance to change can be classified into individual resistance and
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In the mid 2007 the Management decided to merge the companies of the Commercial Cluster which comprised of 5 Companies. The main intention was to increase the performance with synergized effort as well as to give stronger competition in the industry as the Sri Lankan shipping industry was collapsing.

The company restructuring created an uncertainty in the minds of everyone where everyone was clueless what really was happening. With a lot of resistance and heaps and bounds the restructuring of the Commercial Cluster took place in the beginning of 2008. This study is about the change procedure took place at ABC, how the management implemented it and how did he staff respond to it.

(Refer Annexure for the Figure 1 and Table 1 for the Organizational Structure before the Restructuring and Figure 2 and Table 2 for the Organizational Structure after the Restructuring.)

NOTE:
Further information about the Organization could not be provided since this is a factual incident and hence the Company name is withheld.

1.3. Research Problem
The Objective of the restructuring was to enhance the productivity of the Commercial Cluster with the assumption that it could be achieved through the team cohesiveness, where each of the Companies had positive attributes which could be used to pooled together to achieve better results.

For example, each of the Companies had their own customers. If one approached
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