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‘For Internal Use Only’ Proposal, Business Plan Example

Pages: 6

Words: 1554

Business Plan

Mergers can create many internal issues resulting in unfavorable behavior. The main focus of this proposal is to minimize behavioral resistance to change at both companies that include clients, leadership, and subordinates. It will discuss several variables that management can use to motivate the new team to support the company’s position during and after the merger. Mergers are challenging, however with a successful plan in place; we can move forward with business as usual with a new, bigger company base.

Improving Perceptions

Right from the announcement of the merger, employees have formed a negative position for the newly formed organization. According to McShane & Von Glinow (2013) the equity theory is an important tool that can be used for improving perceptions. The equity theory states that employees can establish the feeling of equity by associating their input or outcome ratio to the input and outcome ratio of other people. How employees perceive their position in the company can be determined by what they give and get out of their efforts. Individuals fear what they don’t know, and when mergers are concerned, the perception is inevitably negative. Improving perception can be done by improving communication. Allowing the smaller insurance company to know that they have the option to join the new team and move forward together can establish an improved perception about the merger and provide an opportunity for improved organizational behavior. The perception of the merger may be negative in the beginning, but management can change that by showing the benefits to all employees of the newly formed entity.

Work-Related Stress

Mergers can create significant stress, and it can trickle down to all level of employees. Our goal is to eliminate as much stress from work as possible. We want all employees to feel valued and to know that their contribution is a vital part of the newly merged company’s success. According to Meier et Al. (2014) the conflict may lead to depression symptoms, making individuals more vulnerable for conflict, showing a vicious circle that has great psychological costs to the economic and individual cost for the organization. Reducing the work-related stress can establish a better work environment and overall employee performance.

Employee Motivation

Motivating employees to get on board with the new merger is an important step in improving the organizational behavior. “Our motivation is the soul of our goal. It is the big why behind the hard work and sacrifice needed to reach the goal. It is what gives meaning to our work” (Journal, 2015). The management needs to determine what factors motivate their teams. Motivation can be based on money, personal-advancements and other considerations that can be used to get all employees on the same page. Allowing all employees involved to feel like they are a vital part of this merger can establish an important level of motivation. It can provide support and reduce potential organizational resistance.

Rational Choice Paradigm

The rational choice paradigm is based on the belief that individuals are looking out for their benefit while minimizing the potential hurt. Employees involved in the new merger will ultimately be concerned with how they will benefit from the two companies joining and how it affect them negatively. Job security is one of the most dominant consideration for self-preservation and can be easily provided for all employees. It is important for organizational behavior to minimize the potential risks and emphasize the employee benefits.

Team Processes

The team processes are important for strengthening the organizational behavior. Joining individuals from different teams to work on a project together will join efforts from different groups and allow them to build off of each other. According to Armstrong (2012) transition along with socialization includes the channel for new individuals in a temporal and spatial organizational boundaries along with the culture of workgroups to preserve the hierarchical shape and role of professional identities. The team process allows individuals to work with others in the shaping their new identities within the organization. It also shows how new and old employees can work together to move forward in a positive manner. It builds unity and allows each to have a voice in making the organization stronger.

Channels of Communication

The channels of communication need to be established prior to the merger being completed. According to McShane & Von Glinow (2013) the expectancy theory provides a graceful model that is based on a rational logic to determine the chosen level, direction, and persistence of motivation. The theory essentially states that efforts in work are directed towards people believing the behavior will lead to a favorable outcome. The ability to communication horizontally and vertically is an import for the new organizational growth. The employees cannot employ favorable behavior if the employees do not know the expectations of the newly formed company.

It is important that channels of communication are provided for all existing and new employees. They need to know who to go to in the event they have issues or concerns. “The language of the workplace speaks volumes about the company’s culture. How employees talk to one another, describe customers, express anger, and greet stakeholders are all verbal symbols of cultural values” (McShane & Von Glinow, 2013). Establishing the lines of communication throughout the company will provide an opportunity for all employees to speak and to be heard. It will also reduce resistance that will inevitably arise during the merger process.

Organizational Culture and Power

The organization culture and power establish the parameters for operations. It is important to allow the newly established or revised culture to be shared with all employees, so they know where the company stands. The powers of the organization will be created so all employees know their new chain of command. The culture and power can establish the basis for moving forward with the new entity and also provide a form of security for all employees.

Ethical Issues

Ethical issues will be inevitable during the merger process. McShane & Von Glinow (2013) discussed the four-drive theory is one of the few motivational theories that can directly influence ethical issues. Individuals have the need to acquire that motivates them to seek, take, retain and control situations. Ethical issues can easily arise when individuals are seeking to obtain the upper hand in any given situation. The second four-drive theory is the drive to bond. It is formed from a social relationship and the ability to establish caring commitments with others. Social relationships can ignite ethical issues because of the support for an individual instead of the organizational purpose.

The drive to comprehend fulfills the curiosity, the need to know the environment and ourselves. When a company’s vision is unclear, it allows for individuals to act in an unethical manner to satisfy their curiosity. Finally, the drive to defend is the step where individuals work to protect oneself physically and socially. If individuals feel that their position in the company is being challenged, ethical issues can arise in efforts to protect themselves from the unknown. Ethical issues are not always sequestered to personal gain; they also exist in cases of personal survival. Mergers can create many ethical issues that managers need to be aware of and address prior to bigger issues arising.

According to Cekada (2012) the cultural, social and political influences help form the individual’s ethic and values. Professionals must realize the influences and decide the best manner to train and manage a multigenerational workforce where members all possess different learning, values, expectations, and styles. They need to consider the four-drive theory and the various factors that can initiate ethical decisions within the newly formed organization. Ethics is the backbone of any company’s success, and understanding driving factors is a vital tool for ensuring that the desired behavior is taking place.

Organizational Structure

Communicating the new organizational structure is important to keep all employees in support of the needed changes for the merger. Departments will join forces so some managers will remain in their current position, and some will have to move to new responsibilities. We will review each employee’s position to determine their best fit within the new organizational structure. In efforts to maintain a positive organizational behavior, we will be sharing the new structure as it is established.

Recommendation

The recommendations for establishing a favorable organizational behavior during this merger will begin with a company gathering. It will be a casual event that allows all existing employees and new employees to get to know each other in a natural environment. We will open the door for communication were all employees, new and old, can express concerns and suggestions through the appropriate channels. It will establish an organizational behavior were everyone feels their voice is vital for success. Finally, it is recommended that corporate meetings and events will include all appropriate members of the new company and the existing. It will establish an environment that all employees are valuable and establish a support for the new merger endeavors.

References

Armstrong, Denise E. (2012). Connecting personal change and organizational passage in the transition from teacher to vice president. Journal of School Leadership, Volume 22.

Cekada, Tracey L. (2012). Training a multigenerational workforce. Professional Safety. Journal for Quality and Participation. (2015). Retrieved from: www.asq.org/pub/jqp

McShane, S. L., & Von Glinow, M. A. (2013). Organizational behavior (6th ed.). New York, NY: McGraw-Hill/Irwin.

Meier, Laurenz L.; Norbert K. Semmerc; and Sven Gross. (2014). The effect of conflict at work on well-being: Depressive symptoms as a vulnerability factor. Work & Stress, Vol. 28,           No. 1, 31–48.

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