Mergers and Acquisitions (p383)
•Often involve downsizing ; e.g. AOL and Time Warner, layoff of 15000 employees
•In addition to downsizing, org have to deal with challenges of integrating two, often distinct, corporate
•Differences between smooth and problematic merger depends on degree to which senior managers take the
necessary steps to blend the cultures of the merged companies (“merger culture” experts to help them)
Changing the Org Technology, Work processes, and Tasks
•Early studies focus at technological change
•Today introduce new equipment, tools or automation for competitive factors
•Techniques such as TQM (total quality management), reengineering, and flexible manufacturing have
become common targets of change for demands of cost reduction and quality.
•TQM and reengineering popularized by Michael Hammer and J.Champy is the “Fundamental re-thinking
and radical redesign of biz processes to achieve dramatic improvements in critical, contemporary measures
of performance (cost, quality, service, and speed)”
oReengineer: process by which managers redesign how tasks are bundled into roles and functions to
improve org effectiveness.
Changing People’s Attitudes and the Org Culture
•Org culture: pattern of basic assumptions that are considered valid and that are taught to new members as
the way to perceive, think, and feel in the org
•Cultural change takes longer than structural because it often requires re-examination of corporate values.
Challenges to Effective Change Mgmt (p384)
Individual Reactions against Org Change
•Rational responses based on self-interest.
•Reactance – a negative reaction that occurs when individuals feel that their personal freedom is threatened
•# of confident Canadians in ability to cope with change has declined in recent years
•Traditional OB refer to employee reactions to change as “resistance”
•Contemporary OB view it as possible red flags regarding areas for improvement in the change process as
well as potential sources of important info
oReactions vs resistance
•Common types of reactions
Fear of unknownWhat will I be expected to do?