Cash Rich Company Analysis

Organizational development serves as a means of virtually overhauling how a company operates in terms of improving effectiveness over all facets of business operations and at all levels in the business. The first step keeping organizational development principles in mind is setting goals. The common goals for organizational development is increased performance and productivity, enhanced employee morale and profitability. One of the first steps in producing a goal that could promote synergy is assessing Company A's paid 3-month sick leave.

This kind of behavior will not bode well with Company B, especially since Company will own roughly 85% of Company B. The aim then becomes to lessen the amount of paid sick leave offered to 1.5 months or 6 weeks. While this may upset some of the employees in Company A, it will fall in line with the attitudes and work ethic in Company B. Company B. values efficiency and has achieved cash-rich status because of the company's work policies.

Ways to circumvent the resistance to such changes in Company A would be to institute 'leave banks'. Leave banks have "replaced the traditional separate programs for vacation, sick leave, and holidays. Commonly these forms of paid absence from work have been combined into a maximum number of days per year for the employee in his/her bank" (Folsom & Boulware, 2014, p. 156). People can donate their paid sick days and receive additional paid sick days depending on their circumstances.

Since Company A has family members within the company's employee population, this could work to provide some additional options. Leave banks are just one way to manage Company A and put it more in line with the expectations and mindset of Company B. The next step aside from goal setting is employee development. Development plans happen both at the employee and executive level. In terms of executive development, goals may include improvement in decision-making, communication, as well as change management.

Goals for employee development may cover a wide range of activities. But since both companies are sales and service driven, areas for improvement would fall under communication skills, technical proficiency development, creativity, and problem solving. Company A is a third generational family business. This means several family members exist in key positions in the company. There is also a positive environment cultivated by the family-like principles applied to the management of the company. Company B. is the opposite and hires staff based on an algorithm with timed workloads.

For the two companies to synergize, there must be a middle road in terms of changes applied to Company A. Company A's employees can receive training from Company B. to improve productivity, communication, and other key markers. Research suggests when companies invest in their employees and make them a part of development changes, the employee feels a greater sense of connection which Company A has through its family oriented structure.

"The employee also feels greater connection and commitment to the organization which has invested in their development and made clear how this development assists in the attainment and maintenance of competitive advantage within the wider marketplace" (Highes, 2016, p. 93). Company A wants to go to the next level hence the decision to let Company B. acquire them. If Company B. shares the ways they became successful and provide training opportunities for Company A employees, this may help bridge the gap of standards while also creating a connection.

This can work both at the executive and employee level. The next step is restructuring. Company A operates vastly different from Company B. If Company A continues performing the way it has, it may pose a financial burden for Company B. Therefore, Company B. can implement changes in employee reporting structures like what is done in Company B.

They can form new work teams based on skills and experience and move employees from areas where they may be struggling and place them in other areas better suited for their skill sets. The term is called reengineering and allows a change in business processes that keeps ownership and control out and changes in practice feasible. "Reengineering, is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical, contemporary measures of performance, such as cost, quality, service, and speed.

Reengineering refers to the radical redesign of business processes not ownership and control" (Godbole, 2013, p. 6). In terms of ownership and control, the last aspect of organizational development is change management. Management requires organizational development training that encompasses change management training. Because Company A has family members in its management, it is important to let them adjust.