The case study focuses on a merger that had a detrimental financial, cultural, and morale effect on a company. The memo includes an analysis of three problem, recommendation, and implementation sets. The conclusion is that effective management and communication can remedy the current situation while steering the company back to its former glory.
Susan Baskin
Change in the workplace is never an easy paradigm for either managers or employees. Often, as in the case of Susan Baskin, change results in anxiety, which exacerbates into stress when there is no mitigation of these anxieties. At the heart of proper change management is open and regular communication regarding the necessity of the change as well as how it is to benefit the company in the future. In Ms. Baskin's case, the company is facing a long-term negative change effect, which can only be reversed by implementing specific communication, change, and management tactics.
a.i the first and most obvious fact is that the company has been losing revenue for the lifetime of change implementation (p. 446).
A second and related fact is that this has caused both employee and manager morale to decline significantly, affecting the ability of workers at all levels to function optimally.
As a result, key partners have been leaving the firm, while the company has been forced to lay off a large proportion of its workforce. This exodus of human resource power has resulted in a further decline of morale, creating a type of downward cycle.
b. Recommendation
Baskin's recommendation is sound: The initial merger should be disbanded. This is the root of the financial and other problems the company has been experiencing.
c. Implementation plan
The most important component of implementation is communication. Employees and partners should be included in this process. The communication should focus on providing the assurance that the company is returning to its former roots. A return to the company's original name should be included in this.
III. Analysis
a.i. One of the root causes of the current morale situation is that the merger has caused significant anxiety.
ii. This anxiety has never been addressed by means of communication. One reason for this, as offered by Papadakis (2005, p. 236), is the fact that managers may have failed to recognize the effect of the merger on the company's employees and their morale, as well as the corporate culture in general.
iii. The anxiety levels among staff has been allowed to escalate, creating the current low morale levels, exacerbated by the company's financial situation and the necessity to lay off staff.
b. Recommendation
The root of the continuing anxiety level is that it was never addressed by means of communication when it arose in response to the merger in the first place. This can be mitigated by communicating clearly and honestly about the current situation. Open communication should be established among staff members and management, with all workers assured that there is a remedy for the company's current situation. Communication is also an important component of motivation. Staff and senior members should be convinced that the company still has potential to return to its former glory. All partners and employees should therefore agree about what is to be done to improve and remedy the company's current situation (Rowe, p. 1). This can only be done by effective communication.
c. Implementation
A strong communication strategy should be implemented. Because the company is relatively small, communication can occur on an individual or small group basis. It is recommended that communication procedures be initiated with top level staff on an individual basis, while general employees can be addressed in relatively small groups. It is important that these communications occur on an open and two-way basis, with employees invited to ask questions and make recommendations.
IV. Analysis
a.i a further central fact that relates to the company's current situation is that there has been a basic lack of active decision-making by senior partners. This tendency has demonstrated a lack of flexible leadership (Yuki, 2008), where leaders failed to adapt to the new business environment and therefore became ineffective.
ii. This has resulted in a basic lack of innovation and revenue for the company.
iii. A further result was that many key partners simply gave up and left for other, more profitable ventures.
b. Recommendation
There are two key recommendations. The first is to communicate openly with remaining key personnel to determine if they have been contemplating an exit from the company. If so, reasons for this aim should be solicited and discussed openly. During this discussion, recommendations can be made for decision-paradigm changes within the company. Key personnel should be convinced to stay. The conversation should be focused upon making the convincing process successful.
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