Module 5P3: Change management Case Study A: Stepping on two boats

Managing the transition period, optimizing short-term performance, keeping the highest percent of talent, and integrating processes and systems are some issues that need to be tackled as facilitator for change (here it is the case of merger and acquisition). My job will be easing the transition and focusing employees besides managing above issues as these are having direct bearing on profitability, retaining top talent and confidence in leadership decisions. Success depends ultimately on the effective use of people. The strategic triangle for change management The legitimacy and support comes from authorizing environment and, and hence I need to take the top management into confidence. Also I will keep into my mind about the value of the organization in terms of mission, goal and objectives. Operational capacity is another factor which I will consider in the process of change.

Legitimacy and Support

Comes from authorizing environment

Value
Mission Goal Objective

Operational capacity
Ability to deliver result

Other thing I will infuse in the system is discussing the urgency of change, building guiding team, getting the vision right, ensuring two-way communication (top down as well as bottom up), empowering action, building a strong consultative environment and sticking to change.

Another thing I will keep into mind is cycle of change which deciding on my actions.

Ensuring effective communication: As effective internal communication is very important, I will be sincere with employees and let them know the reasons for the change. Communicating regularly to staff will boost confidence, improve morale and prevent rumours from running wild. Hence I will implement an effective communication plan at a very early stage of change. This will help to make all the difference when it comes to communicating with and reassuring employees. This will let the employees focus on how the change affects them personally. Also I will help them understand the big picture by communicating business as well as the advantages to the company and to them. Frequent communication will reduce needless anxiety and confusion among employees. I will also try to build morale and minimize disruption by providing clear, honest, frequent communication throughout the transition. Also I will ensure that true two-way communication opportunities to answer the questions posed by employees to reduce resentment and frustration. For this I will organize open sessions in an interactive setting to support their needs, manage expectations, and prevent undue disruption. Also I will have a communication channel open with the superiors to provide them regular feedback and take their confidence. Essentially I will create a climate of trust where employees will feel accountable and work together effectively to cope with the change.

Tackling with the rumours: During merger and acquisition (M&A), the rumours are rampant and need to be managed effectively. The rumour about job-losses is usually most important to counter honestly and at an early stage. Inconsistent information about the extent of job losses may adversely affect the morale besides negatively affect the perceptions of the acquiring firm managements integrity. Hence, I will not only ensure that the rumours about exaggerated employee retrenchment is stopped and true figures of about 20 overlapping employment posts of in sales and in accounting section is communicated at the earliest. Also I will treat those leaving with the same respect and attention as those staying. Besides, I will ensure that those retrenched employees each get an appreciation letter for their contribution to the company. Further I will also issue the letter of recommendation as Personnel Manager for their reappointment in any other company as and when they need. I will oversee that all service benefits are paid to such retrenched employees at the earliest. Rather than taking a risk-averse, wait-and-see attitude that can lead quickly to irrelevance, I will undertake a proactive role to counter all rumours. Managing distrust: Resistance to the changes that inevitably follow an acquisition may create distrust among acquiring managers by reinforcing fears concerning target firm members lack of loyalty or benevolence. Failure of the acquirer to share critical information with employees of the target firm may detrimentally affect perceptions of openness. And differences in organizational culture (e.g., different problem-solving styles, risk propensities, etc.) may be seen as indicators of distrust-creating value incongruence. As Personnel Manager and facilitator for change management, I will try to minimize, if not eliminate, such value incongruence by creating an environment of trust, integrity, openness, fairness from the very initial stage of M&A announcement. I will follow an approach of sensitivity to employee needs. Ensuring smooth process of assimilation: Here it is a case of acquisitions by a large MNC to a domestic middle sized family business in Greece; hence it is a case of cross-border M&A. Such cross-border M&As are of an order of magnitude more complex than simple domestic M&As. As a Personnel Manager, my prime duty will be to tackle the issues related to human resources, processes and values in such cross-border M&As. Regarding resources, my prime responsibility will be to chalk out the ways and means to hold on to talent and embedded knowledge. As retention is dependent on the ability to change processes, my focus will be to emphasize the need for assimilation and capacity building. Differences in values can be minimized through slow assimilation. I will use management coaching skills to help managers and executives to communicate effectively and completely, to address power issues, and to deal with cultural issues. Also I will bring out to the surface conflicts, if any, and deal with power issues honestly.