MERGER AND ORGANISATIONAL CHANGE

Merger and Organisational Change: Case Study - Daimler-Chrysler Merger

Renault enters India with a Joint Venture



Merger and Organisational Change: Case Study - Daimler-Chrysler Merger

Renault enters India with a Joint Venture

Introduction

Nowadays, change becomes an essential part of an organisation to compete and survive in the rapid changing business environment. All businesses once undergo change that engages several risk and resistance within the internal and external environment of business. Organisational change can be disruptive and threatening. It necessitates hard work it essentially engages adapting to personal circumstances, working practices and new environment.

This assignment provides a great insight on strategic change management, discusses why organisational change is important, factors that lead to change, reason of change resistance and how can change be managed. In addition, take into consideration a case study of Daimler-Chrysler to gain better on change management that an organisation encounters during merger.

Discussion

Models of Strategic Change Management

There is a vast literature and model presented by theorists to provide an insight on strategic change management. The most widely used models of strategic change management are Kotter's Eight Step Change Model, Lewin's Change Management Model and McKinsey 7-S Model.

Kotter's Eight Step Change Model presented eight steps of strategic change management. These steps are grounded on effective communication with employees to manage change as it is vital to gain confidence of employees for the survival of the company. Kotter emphasised on offering clear direction to employees regarding change, and empower employees to execute the change. To create acceptance reading change, change agent or employer must create short-term goals and demonstrate them progress. Furthermore, rewards are significant. In this model, persistence is very important as there is a need to influence more change even the short-term goals are fulfilled or the initial plan will die and cease. Finally, to make the change permanent through shifting and fit it into the practices and culture of the company like promotion (Smith, 2011, pp.111-128).

Another change management is presented by Lewis. He recognised three change stages that are yet extensively used these days: first (unfreeze), second (transition), and third (refreeze). Most of the employees tend to remain within few safe zones, as well as resist changing. Employees are comfortable to the status quo and become uncomfortable if change takes place. The frozen state can be overcome with employee motivation. At the transitional stage, employer must reassure that change is not only beneficial for the company but employees, as well. Thus, that the company regain the stage of stability.

The McKinsey 7-S model offers a holistic approach that mutually determines how change will take place in an organisation. This model engages factors, such as skills, staff, style, systems, structure, strategy and shared values. This model can be employed to gain understanding where gaps exist in a company that is resulting in imbalance and what business areas need to improve and align for performance improvement (Jeffrey & Ford, 2009, pp.211-239).

Organisational Change Important

Today, business operates in the fast-moving environment that looks for the ...