Organizational Change

A case study on Organizational Change

Facts of the case

A materials handling equipment manufacturing company has purchased a small electronic company. The electronic company designs both the software and hardware of computer system for running materials- handling vehicles. The cultures though being complimentary were found to be very different.

The parent company was a old traditional, third generation, family managed and single technology organization situated in a small town where as the subsidiary company was modern electronics company situated in California.

The employees of the parent company were conservatives; old friends and second generation peoples whereas those of new company were technical people, entrepreneurs and modern

Some Economic Conditions demanded the need for integration of the two organizations.

The executive management was having following choices:

1. Bring the new enterprise into the old physical setting

2. Operate them as two separate enterprise with a liaison group

3. Work in a project organization

4. Make the acquired organization an arm of the technical function of the company

Problem:

• To choose one of the above choices

• To give managerial strategies for organizational change

Analysis:

• As the parent company is stable and mechanistic it is not possible to bring the supportive new company into the old setting. We should always think for the company’s progress for it’s survival in future with advanced technologies.

• Since the economic condition necessitates integration the organizations cannot be operated separately.

• If we go for making the acquired organization as an arm of technical function of the parent company all other operations of the organization will be carried in the same old