The scenario depicted in the given case study analyzes the presence of cultural conflict between two groups of employees after the acquisition of XYZ energy by Big Energy. Case study intends to understand the effect of integration model which is employed by Big Energy on vales, behavior and overall attitude of individual as well as group of individual or employees in XYZ energy. After the acquisition of government organization by one of its private competitors, the impact of this restructuring is analyzed on the behavior, personality and employees performance (Aninkan and Oyewole 2014). It is depicted in the given case study that although both the organizations belong to same industry, there is an increased reluctance by management if Big energy in increasing their communication with the existing employees of XYX energy. This lead to conflicts among employees and management of both the groups. Restructuring of XYZ energy by way of acquisition has resulted in failure of acquiring company to maintain integrity among the employees and leading to change in attitude and behavior staffs. The given case study has been executed by analyzing the impact of integration model on followed by Big energy on behavior and attitude of staffs of XYZ energy. Later part discusses about recommendation to be provided to Big energy for dealing with the emerging issues identified in the case study.
1.Integration Model Impact on Overall Behavior and Attitude of existing Employees of XYZ energy:
Integration model define the process and terms with the help of which the two group of organization forms a single entity at the corporate level. Absorption of XYZ energy by Big energy incorporates synthesizing of former employees into the corporate culture of later organization. There is quite possibility that the acquired culture may be essentially the integrated company culture. In light of establishing unified system by way of acquisition, it is essential that acquired employees should adopt to newer attitude, culture and behavior (Arvinen-Muondo and Perkins 2013). Financial aspects of the organization might be impacted in good sense due to restructuring, the existing employees of XYZ energy might lack sense of importance. Overall impact of acquisition is reflected on the productivity, performance, personal values of employees. This changes from the sense of motivation and optimism to uncertainty and state of resentment.
Acquisition of XYZ energy by Big energy has resulted in several adverse impact on the employees performance and behavior. Soon after the absorption of Big Energy, its core management team was removed and functional business members were made redundant. It also intended to remove majority of staffs as early as possible. In regard to this, the morale of employees of XWZ energy fell sharply and frustration arose. This was because Big Energy was more focused on maintaining its competitive position in the market by speeding up the integration rather than focusing on long-term benefits and quality. Implementation of integration model in the business of both the organization lead to increasing redundancies and dwindling of staff members (Awadh and Alyahya 2013). Therefore, the integration model has several impact on the XYZ employee’s values, behavior and attitude.
Impact on values- Status quo of the company is challenged by the integration model, mainly in situation of XYZ employees who are anticipating their uncertainty about future. Initial impact of model has the broad range of uncertainty concerning downgrading their position, losing their jobs and their immediate managers. Every group of Big energy has employees from different culture, attitude, personality, loyalty of work toward organization. Due to the acquisition by Big energy, there is degradation in moral values of employees of XYZ energy. It is clearly evident from the given case study that employee’s skills are not judged by their skills and security of jobs is not determined by performance factor. Job security of employees is getting hindered resulting in degradation of moral values due to adoption of integration model (Bosman 2014). There is reducing integrity among the employees which is increasing conflicts among them and the resultant impact would be poor performance, decreased loyalty towards the organization and increasing tendency of being absent from work. Integration of two groups has severe impact on development and growth of employees (Baker and Parkinson 2016). This reflect the lack of management in human relation skills. Prior to acquisition, XYZ Energy used to compete for their work based on merits but after it was acquired by Big energy, the employees were demotivated and lost their motivation.
Impact on attitude- Attitude is regarded as the state of mind that is developed through experience or due to prevailing circumstances. Since the core management team and functional members were made redundant after acquisition, existing employees of XYZ felt demotivated and they have the anticipation that they would be struggling to make their existence in the company on merit basis. Attitude related analysis depicts that employees are facing issues due to the combined environment of both the organization, which has resulted in their changed behavior (Heine et al. 2016). Senior management of Big Energy hardly visit remote office to engage with the existing employees of XYZ and newly acquired staffs, which is impacting their attitude.
Impact on behavior- Existing employees had changed behavior because of their falling morale. Value of XYZ energy resides in the loyalty of staff members which impacted the growth. However, the integration model has impacted the organization by way of diminishing of growth due to changed employee’s behavior. Reasons attributable to the frustration of employees was the little effort by senior management of Big energy in looking after employees welfare, quality and long-term benefits. On the other hand, it solely focused on integration process. Many employees were demotivated due to changing attitude toward organization and working conditions. Acquisition was intended to strengthen the ability of group but in the given case, there are some negative impacts leading to changed behavior of employees (Judge and Robbins 2014).
2.Recommended Strategies to Management of Big energy for dealing with Issues faced by Employees:
Integration model adopted by Big energy amid acquisition aims at gaining competitive advantage that would help them in reaping profits in long run. Integration rate is the main focus of acquiring organization rather than focusing on long term benefits and quality. Management of Big energy needs to be efficient in addressing value, behavior and attitude of individual. They need to follow behavioral model of organizational efficiency, which makes the assessment about the application of managerial skills and knowledge of people examining behavior of individual. Organization is made by confidence upon the leadership, their value system (Martin 2017). The behavior of existing employees of XYZ energy should be managed by Big energy by way of understanding, controlling, describing and predicting their behavior.
Under the authority, the senior management of Big energy should describe individual behavior by recognizing their attitude. Situation of organization should be kept under check by pointing the behavior. When employees are electing to leave the organization and losing enthusiasm, management of Big energy should understand behavior of employees depicting the way employees are behaving. They should accordingly take measures to bring situation under control and stabilize the environment. It is mentioned in the case study that senior management of Big energy rarely visit remote office with existing staff members and new team. Incorporating behavioral model would lead to have frequent interactions of the management with team which would assist them in identifying personality of employees (Muneer 2013). It would help management in spotting prompt employees and imbibing them to generate higher yield by properly channelizing their work.
Since the Big energy is not concentrating on quality of work being generated and benefits derived and integration process is their sole motive for gaining competitive advantage. There is a need to break this concentration and they should devote themselves to development process and training their employees. It should be intended to redirect the enthusiasm of employees toward goal of organization. Work environment should be controlled by organization so that it provide proper platform for enabling employees to work them effectively and efficiently contributing to higher benefits and production (Rao 2013).
Management of processes and inter dependence is very vital for creating higher job satisfaction among employees and higher productivity. Therefore, it should be ensured by Big energy that morale of employees are always kept high. Managerial sayings and dictums should be used by them. Prior to integration, morale of employees plummeted and they felt demoralized and hopeless about their future. Big energy should portray right behavior and high level of value system should be uphold by organization. Incorporating this feature would help them in building such culture that would be suitable to the current integrated organization. It should seek to bind all employees to such cultural relationship that is mutual. Desired goal of organization is achieved by integrating human resources with other resources, which is the fundamental of management (Somech and Drach-Zahavy 2013). Big energy should not only confine its resources in building up the integration process but it should also make some effort toward developing human resource department for keeping the attrition rates at lower level and keeping employees intact.
Decisions should be taken by management of Big energy after understanding the nature of organization. Environment during change should be investigated for employing the model that is best suited for the organization to deliver better results. For integrated organizations, some of the recommended model to be incorporated are as follows:
- System model- Trust and self-motivation is pedestal of this model and it helps in improving employees’ performance. This model is suitable in case of restructuring as employees are motivated for accomplish goals of organization and they are obligated to their job (Venkatakrishnan and Perumal 2016). Remaining employees needs to be convinced by management of Big energy that they form an integrated part of organization so that they do not lose their morale.
- Supportive model- Leadership form the basis of this model. Say, for example, official and managers of Big energy should have encouraged and supported the remaining employees for performing well in their job. Incorporation of this model would help in stimulating performance of employees and delivering better results.
- Big energy is also recommended to employ McGregor theory of Y as in the given case, employees are self-motivated. At the same time after acquisition, their talent and capabilities seems to be underutilized. It is required by management to build employees potential and help them in achieving their professional goal by aligning with the goals of organization. An atmosphere of encouragement and trust should be created intending to develop employees. This would help in reducing disparity between subordinates and superior by communicating well (Vivek 2016).
- Autocratic model- This model depicts the roles, power and responsibility of employees who are part of Big energy. It focusses on describing the authority and power of employees already working in organization and for employees who are new to organizations (Wilson 2013). Authorized should be described to new and old employees for minimizing the adverse impact in long-run.
From the above discussion and analysis of case study, it is concluded that major challenge faced by Big energy is select the best model and examining its effectiveness suiting to integrated organization. Big energy should work on boosting employee’s morale for performing them in coordination. Since immediately after acquisition, organization began experiencing lower self-esteem and increasing level of value system should be the first priority of Big energy. Growth of XYZ energy have been supported by motivating employees and after acquisition, organization have been faced with loss of employee retention and motivation. In this regard, it is advised by manager of strategy department to reconsider the integration model and revisit priorities for leveraging competitive advantage and preserving existing and newly acquired key staffs. Recommended models would help in fulfilling needs of employees. Identifies issues is mainly attributable to the difference in culture and business structure of both the organization. The acquired organization is a public company and acquiring organization is private company, although core business structure of both organizations are similar. Mani issues is concerning the human recovers and which is explained by incorporating various organization behavioral model.
Aninkan, D.O. and Oyewole, A.A., 2014. The influence of individual and organizational factors on employee engagement. Int. J. Dev. Sustain, 3, pp.1381-1392.
Arvinen-Muondo, R. and Perkins, S.J. eds., 2013. Organizational behaviour. Kogan Page.
Ashraf, A.M., 2014. Organizational Behaviour. Regal Publications.
Awadh, A.M. and Alyahya, M.S., 2013. Impact of organizational culture on employee performance. International Review of Management and Business Research, 2(1), p.168.
Baker, M.J. and Parkinson, S.T., 2016. Organizational buying behaviour: purchasing and marketing management implications. Springer.
Bosman, J.P., 2014. Organizational behaviour.
Heine, I., Beaujean, P. and Schmitt, R., 2016. Conceptual Framework for Analyzing the Fit between Organizational Strategy and Culture. Procedia CIRP, 51, pp.79-84.
Judge, T.A. and Robbins, S.P., 2014. Essentials of Organizational Behaviour (12e Uppl.).
Martin, A., 2017. Organizational Behaviour-Verhalten in Organisationen. Kohlhammer Verlag.
Mukhopadhyay, S., 2014. Organizational Behaviour.
Muneer, S., 2013. Culture and Organizational Behaviour (Second Printing 2010). South Asian Journal of Management, 20(3), p.200.
Rao, K.S., 2013. Understanding Organizational Behaviour. Review of HRM, 2, p.318.
Somech, A. and Drach-Zahavy, A., 2013. Organizational citizenship behaviour and employee's strain: Examining the buffering effects of leader support and participation in decision making. European Journal of Work and Organizational Psychology, 22(2), pp.138-149.
Venkatakrishnan, C. and Perumal, R., 2016. ORGANIZATIONAL BEHAVIOUR. International Journal of Scientific Research, 4(9).
Vivek, S.A., 2016. Impact of organizational citizenship behavior on managerial effectiveness. Prabandhan: Indian Journal of Management, 9(2), pp.7-18.
Wilson, F.M., 2013. Organizational behaviour and work: a critical introduction. Oxford University Press.