The change management determines the success of any organisational changes that have been implemented. The purpose of this study is to analyse the effective of the change management and the underlying issues faced by the case study company RSEC. It has been found that the company implemented drastic changes in the operational process, employee job roles and responsibilities in haste. As a result, it was unable to prepare the employees for the upcoming changes. This as result have led to adverse effects on the organisational performance and employee satisfaction. The Lewin’s three stage model of change management have been used to analyse the situation and to provide the necessary recommendations and its implementation.
The case study discussing about the acquisition of Electronic Bits Fast (EBF) by Rapid Supply Electronic Components Ltd (RSEC). It has been highlighted that the acquisition process have led to the surfacing of several change management issues. Both the companies have prominently different organisational structure and operational processes. However, following the finalisation of it has been decided by the authority that the RSEC will adopt the integrated approach of EBF that has been acquired. Adopting an integrated approach could prove to be effective in managing bigger teams and larger customer bases. However, the changing from a decentralised structure to a highly integrated in a very short span of time proved to be quite challenging and it also accompanied high employee dissatisfaction level and significant number of employee releases. This issues have drastically reduced organisational performance, increased customer complaints and massive workloads on the exiting employees. This problem have been further elevated owing to the lack of communication between the change manager and the HR. As a result, the board members are operating under the false impression of successful change management. If the situation is left to continue, it is most likely will lead to severe operational failure and dissatisfaction among the business clients and shareholders.
This section discusses about the analysis of the problems raised from the change management process. It has been segregated into identification of the issues and its relevant analysis and justification of occurrence.
Problem Identification or Issues
The key problem that has raised from the change process is mostly due to the fact that the companies that are involved in the acquisition process operates with completely different methods. The RSEC operates with a decentralised structure where all the branches are run with significant autonomy and independence. On the other hand, the company that has been acquired, that is EBF, is highly centralised and is controlled by the headquarters. The board of directors have decided to integrate all the functions like sales, logistics and customer service, thereby following the operational process of EBF.
It can be mentioned that the integrated approach can prove to be beneficial for the company as the acquisition has increased both the customer base and the employee base. An integrated approach could help to keep the entire operation under control and would help to foster higher resource utilisation. However, the conflict had risen as the board had directed to implement the change in very less time, after waiting for almost a year. The rapid implementation of the integrated approach complied the change manager to deploy a top-down method of direction. This as a result led to lack of communication across the hierarchy, which did not allow him to get the clear picture of the associated issues faced by the company.