CHANGE MANAGEMENT

Change Management

Change Management

Introduction

When a company starts a new project specially a manufacturing company like that of metal or steel, it is difficult to manage the change, because external and internal stakeholder are affected from it. Internal Stakeholders have to learn new things and carry out new works, while external stakeholders are concerned with the impact it is going to have on the environment. In this paper, we will discuss how this change could be managed.

Discussion

Stakeholders

The stakeholders who may raise voice would include people living nearby, government officials, NGOs and all other third parties who are directly or indirectly affected by this issue. They will be concerned about the negative effects of the construction of new plant on the Environment and the Climate. Health Problems could also be created through this issue, hence it could give rise to mass criticism.

Apart from external stakeholders, internal stakeholder like employees could resist this change. Hence it is important to efficiently tackle this delicate issue. During the reorganization stage, managers must be able to understand employee's psychology. They should be ready for the resistance in the form of low level of interest or forthright denial. It is important to note that different individuals hold conflicting opinions. Also not all employees are outspoken to resist change (Margolis & Stoltz, 2010). The solution to this is an open interaction to the team. By doing so, managers will be able to understand; their unfulfilled needs and reasons for resistance. According to research, neglecting the intangible assets may lead to potentially disastrous consequences. One of the leading ways to failure is the inability to integrate two corporate cultures. As far as the impact of mergers and acquisition on organizational is concerned, it has been found that significant cultural difference and level of involvement between the two organizations remain. The organizational culture is composed of the customary rules of organizational operation - that "glue" employees to norms and values. The culture is developed by each organization which could be incompatible when two or more organizations are merged. In cross-border operation, the phenomenon may be exacerbated by differences in values, ideas, expectations and attitudes toward work, styles management and a host of other cultural factors characteristic of each country. If culture is ignored or neglected, the merger between two companies could lead to a continuation of old behaviours (Nutt, 1986, pp. 230- 261).

This could be detrimental to integration (Fisk, 2008, pp. 6-15). The merged enterprise may encounter different attitudes and interests, and often opposition, among employees who try to protect their usual way of working and their emotional balance. Companies that do not take steps to address the differences between the corporate cultures plan their own failure. Therefore, it is perhaps surprising that executives who have experienced a process of Merger & Acquisition have expressed considerable dissatisfaction with the post-merger culture; furthermore, it has been found that employees describe the first few months as a "culture shock" and a further even describe as ”trench warfare"

Solution to the Problem

Change ...