Organizational Change Management Unrelated Industry

Question: Describe about the Organizational Change Management for Unrelated Industry. Answer: Introduction Merging of the companies takes place when two or more decides to carry out business together. In order to grow, expand and diversify, a company intends to acquire another company in another unrelated industry that helps to minimize the impact of the performance of the company in terms of profit and market position. As per the given case study, the Australian university decides to carry out merging of the academic departments of economics, finance and accounting to create a business school. The merging of the departments is not an easy activity and therefore involves a lot of internal as well as external issues. In order to make the merging of the departments successful it is necessary for the head of the authority to identify those problems and work on the issues so that the organizational goal and objectives are achieved. In this study, the merging of the three departments to form a business school is discussed along with the analysis of the merging activity. The various issues related to the merging activities are identified in the study that will help the managers of the business to understand the loopholes of the business and the areas to be worked on. Based on the identified issues, the alternative solution is designed and recommendations are accordingly made that helps to achieve the goals effectively. Case background In Australia, projects has been undertaken to exercise university-wide restructuring that helps to enhance the overall ranking of the university. As a result of such outcome, one of the Australian University decided to merge the economics, accounting and the finance department as one in order to build a business school. At the beginning, during the establishment of the business school, the company had a financial deficit of a small extent that increased over the years. The deficit grew up to $200k and the economics department had annual deficit of $750k. The learning and the teaching committee is set up that supports the management of the business school to coordinate the response of the school to a university wide review of supporting students and teaching. From the review it has been observed that the business school was rated as a below average. This was a concern since the business was not able to earn higher profit. There have been issues in each of the department that collectively reduced the productivity of the business school. The department of economics that was once a well-known department in Netherlands had currently observed low performance and productivity. The scholars who were the main individuals in creating the base for the reputation of the department had retired and the others those were still serving from a long time had become less productive. Analysis: Problem identification It has been already stated that the business school suffered from financial deficit while the economics department had the maximum deficit. It can be opined that the department of economics is the source of the deficit since the staffs of the department were paid high amount of salary and were promoted to senior grades. The promotion and the increment in the salary was made based on the previous performance of the company. Moreover, although the members of the economics department were committed towards teaching, they showed least commitment towards preparing the review of the University Teaching Quality and student support. According to the members of the department the approach to the quality assurance of the university was bureaucratic and thus they intended to carry out activities as per their long-established practices that they used to manage the teaching and the student activities. The overall performance of the department of economics was poor as the members failed to maintai n the quality assurance through formal structure. This further affected the other members of the other two departments. The members of the other department felt let down by the members of economics department. The productivity of the members had fallen drastically, which affected the overall performance of the business school. The finance and the accounting department has not pointed out much issues while they have developed and grown much since the establishment that gave way to the merging of the departments. On the other hand, the management studies in the largest department among the three departments in the business school. There are three sub divisions under the management namely the marketing, organization behavior and the operation management. The department has been able to achieve success, however the members of the department are not satisfied as they feel exploited (Grant, 2014). According to the management department, almost a good amount of their net income that they earn is used by the economics department to deal with the deficit and by the accounting and finance team to fund new appointments. The department further faces problem regarding the retention of the staffs. This causes shortage of qualified and experienced faculty member for teaching, which in turn reduces the productivity of the business school. All the three departments are incapable of bringing innovation within the organization and fails to develop cost effective approaches. The departments of the business school lacks integration within each other as they have their own departmental office and their own admission and administration (Pollack, Costello Sankaran, 2013). Another issues that influence the approach to managing the change in the business school is that due to the increasing demand of the student there might be a need of the new degree programs to combine the department of economics with the other two departs of the business school. Problem analysis and justification From the overall case study, it can be observedthat the department of economics is the one that faces the maximum issues and is the source of the financial deficit in the business. There are a number of factors that are responsible for the occurrence of such a situation (Kidron, Ofek Cohen, 2016). First of all it can be stated that the management of the department of economics were not effective. The management was incapable of handling the financial matters effectively. Moreover, the decision to promote the staff and raise the amount of the salary was one of the wrong decision (Hales, Press Johnson, 2012). The department already had a deficit since the establishment of the business school. Thus, increasing the salary caused the deficit to increase more. On the other hand, the informal structure of the department reduced the performance quality of the overall business (Hayes, 2014). The department failed to consider and carry out the cost effective approach as the department hardly consisted of staff members who were productive, effective and experienced. There is lack of satisfaction among the members of the management department as they are feeling exploited by the members of the other department. A portion of the revenue earned by the management department is used by the finance and the accounting department to fund new appointments and by the economics department to balance the deficit. The staffs of the management department are not being able to enjoy the profit earned by the team. Furthermore, the lack of integration within the departments causes the downfall in the performance level of the business school as a whole (Nordin et al., 2012). The coordination and integration is a type of a strategy that supports the organization to carry out appropriate decision making and implement strategies within the organization according to the plan. Therefore, it can be inferred that the lack of integration has been a reason behind the inability to incorporate cost effective strategies. The productivity of the employees and the staffs can b e increased if there is coordination and integration within the organization (Cocks, 2014). It allows the leaders to guide and direct the members towards the right direction. It is necessary for the management team to allocate the resources effectively so that there is no wastage of resource or creation of deficit. In order to allocate the resources properly, a budget plan is needed to be prepared properly. The budget plan will help the management team to understand the maximum about of money they are allowed to invest for a particular project or activity (Contrafatto Burns, 2013). Alternative solutions The issues faced in the various departments of the business school has been the root cause of the below average marking of the business school in the industry. In order to mitigate the issues and increase the efficiency of the business school, there needs to be introduction of alternative plans will support the organization to achieve the goals and the objectives of the organization. The departments of the business school needs to utilize the cost and engineer the plans, design and development process throughout (Kempster, Higgs Wuerz, 2014). The objectives of the organization and the activities are to be set according to the budget based on the life-cycle cost. This will help the economics department to maintain the cost reduce the level of deficit in the economics department and in the overall business school. Moreover the satisfaction level of the staff needs to be improved. The low level of satisfaction caused the efficient staffs of the departments to resign. This decreases the level of performance of the business school. In order to increase the employee satisfaction the managers of the business school needs to provide the members of all the three department employee orientation (Quinn et al., 2012). The orientation offered to the employees will help the members of the department to ensure that the expectations of the employees are realistic. If proper coordination and integration is carried out between the departments there is a creation of positive work environment (Teo et al., 2013). Recommendation In order to achieve the high quality standard that the departments of the business school previously had, there are certain measures that the business needs to adopt. There is a need of implementing cost effective strategy that helps to minimize the input cost and thereby saving money for balancing the incurred deficit. In order to increase the productivity of the staffs and reach a sustainability position in the industry, there needs to be arrangement for training made that are cost effective (Waddell et al., 2013). The training will help the new teaching staffs to understand the ways in which the administration works and also enable them to manage the students effectively. The performance of the administrators, the teaching panel, the recruiters and the students of all the department of the business school needs to be monitored that will ensure to keep the performance level high of the overall workplace. The members of the management department has to be provided employee satisfaction by giving them improved benefits and protecting them from being exploited by the other departments (Lozano, Nummert Ceulemans, 2016). This will help to retain the potential staff members and thereby deliver enhanced organizational performance. Implementation Before implementing the strategies in the environment of the business school, it is important to ensure that the employees and the other stakeholders are ready to accept the changes made in the organizational management. It is further effective, if a leader for the organization is selected who is capable of handling and managing the organizational activities and issues of the business school (Pollack, 2012). The implementation of the strategies is a critical activity that ensures the success of the company. The strategic implementation refers to how, when and where the desired goals and objectives are to be reached (Pollack, 2015). 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