Furthermore, a side issue of organizational changes is that the organization frequently forget the focus on the work environment. This is the main reason why conflicts arise as normal part of structural changes. In order to prevent difficulties when a structural change happens, managers and employees have to be aware of the effect changing structural processes might have (Andersen,
One of the negative side would be the employees themselves or the stakeholders are resist to the change or not having a proper explanation from the managers caused them to circulate incorrect information about the change and thus hinder the completion of projects. Under those circumstances, if managers do not organize and plan the organizational change management accordingly, this would negatively affect the organization which causes the company out of business and customers. In conclusion, the rate of organizational change is increasing as change is needed for an organization to keep surviving and growing in this globalization era. Managers that possess good leadership and management skills such as able to vision better future of the company and workers, good planning strategies, provide better platform between employees and acknowledge their
In the today’s organisations business world, Change has become an obligatory means for an organisation to survive in the marketplace even for organisation that are small, medium or large. Success is subject to classifying key zones of change, what tools to be used for implementing the change to these key areas and how changes are implemented in a better way. It is the duty of the managers of the organization that play the main role in the change management, as this can cause many serious problems rising internally within the organization or external to the organization. The notion of change management is acquainted in most organisations today but how they achieve change or even more how effective they are at it, differs extremely depending
Organizations make operational adjustments in order to survive global competition. When profits decrease, a cost reduction is usually suggested in order to return business to a profitable position by merging or acquiring new businesses (Shook & Roth, 2010). In response to a weakness in the current environment, economically, or competitive threats, there is a need for change. Mergers occur when two companies combine their operations and participate as equal partners in order to achieve strategic and business objectives (Sudarsanam, 2003). An acquisition occurs when one company takes over a smaller company and obtains control to determine how the combined operations will be managed (Shook & Roth, 2010).
However, it is vital to identify the forces that control organizational change. According to Mullins (2010), there are various factors that trigger change in an organization including unpredictable economics, legislation changes, political interests, levels of government involvement, and resource scarcity. All this factors affect the operations at HKBA. Research has positioned organizational leadership at the centre of change management. According to Armstrong (2009), through effective leadership, members of an organization can be inspired to achieve the desired results.
Organizational change Many companies worldwide have in one way or another implemented change in the operations of their business over the past years. This type of change in the operation of any business is described by the term organizational change. Factors such as new technology, competitive advantage and globalizations influence organizational change within a company (Hayes, 2014). The ability of a company to manage and successfully implement change is crucial to its survival. Consequently, organization change has attracted the attention of many researchers and scholars.
The general concept of change is defined as just “a new state of things, different from the old state of things”(French et al., 2000) B4 Organizational change may also be defined as “a state of transition between the current state and a future one, towards which the organization is directed.” (Cummings et al., 1985) B4 The origins of this definition are found in the thinking of Lewin (1947).Organizational change refers to any alteration that occurs in the overall work environment of an organization. It may relate to changing technology, organizational structure, working processes, work environment, organizational policy, and even the roles people play (Kondalkar, 2013). B-2 Struckman and Yammarino (2003) defined organizational change as “a
There are a seven problems in achieving acquisition success which are integration difficulties, inadequate evaluation of target, large of extraordinary debt, inability to achieve synergy, too much diversification, managers overly focused on acquisition, and too large. The first problems is the obstacles to integrate between firms. This is because each companies have different system especially for their financial and control. Moreover, the merge companies have to develop their corporate culture and implement the other firm’s culture to their company. Furthermore, managers paying too much attention on the acquisition.
This can affect the performance of the employees, which can cause instability within the organization. The rapid and massive changes in the organizations structure can create a sense of insecurity in the employees; this can also affect the behaviour of employees and change their working routine. Changes in behaviour of employees can affect the productivity of the organization in ways that can either affect its goals and objective or enable the organization achieve the same goals and objectives with ease. Thus, it is up to the organization to come up with a long-term plan to ensure sustainability of the organization. In addition, the plan should be coupled with short-term experimental learning that will familiarize the employees with the anticipated changes within the organization.
Mergers and acquisitions form part of the measures that organisations follow when they want a change in the organisations’ fortunes. Acquisitions, mergers and change have been an on-going part of the operational strategy of many organizations for years, and have proven to be a significant and popular means for achieving corporate diversity, growth and rationalization (Kavanagh, 2006:81). Change in oorganisations is often met with resistance especially from employees especially when change brings with it the threat of downsizing the organisation’s workforce (Todnem, 2005:34). The change that McCormick experienced ranged from an acquisition and they also experienced an organisational restructuring all these changes had an effect on the employees in different ways. The impact of the change that happened at McCormick is going to be analysed in the following subsections.