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The Challenges of Merger Between XYZ Energy and Big Energy

Questions:

1.Impact of Integration Model on attitudes, behavior and values of XYZ Staff Members

2.Recommendation to deal with the Identified Issues in Big Energy

In order to fulfill the objectives of an organization, attitudes, behavior as well as values of the employees act an important role. Hence, employer of the organization take care wellbeing of the employees for getting best possible benefit from them. However, merger between two organizations can bring fear and situations of conflicts between the employees of those organizations unless effective measure is taken by the employers. Armstrong (2012) stated that the management of an organization also needs to keep in mind that distrust and fear might not be arise that results loss in their work and feeling as cynical over the steps taken by the management (Nekoranec, 2013). Thus, managers of the organization have a crucial role to understand every matter and respect as well as treat them with proper importance.

1.Installing merger in XYZ have brought fear in the staffs members of the company by seeing chief executive as well as business member of the team of management made redundant and start integration of operation (Schwartza & Boehnkeb, 2004). Job security becomes on the line as the structure of business were same type and duplicated functions such as two marketing departments and operational departments. Thus, it creates high possibility of losing the jobs of remaining staffs. The persisting staffs are left hanging with low morale. Majority of the government own energy organization and corporate process of sale. XYZ Energy has brought well established sales procedure that helps to be competitive in private sector for a record price.

In addition, the action taken by the management of Big Energy were unethical as XYZ management team members need to be redundant without making any consideration of the effort as well as value putting in the procedure as well as systems of the company for integration. Utilizing the Schwartz model, conservation model explains the extent for motivating the employees to preserve status quo as well as certainty provided by it. McShane, Olekalns&Travaglione 2013, p. 50) stated that there is any value congruence among the staffs and the company as it fails to recognize importance of the value in the existing process of XYZ Energy. It failed to recognize the importance of the values present in the existing procedure of XYZ energy along with systems. The work environment of Big Energy has given discourages that make values consistent in behavior, which generate negativity in the company. Attitudes are considered as cluster of beliefs and evaluated the feelings along with behavioral intentions for the persons, objects and event (McShane, Olekalns&Travaglione, 2013, p. 102). In addition, attitude is considered as organizational behavior for job satisfaction, which refers the interpretation of the person’s job context. Thompson & McHugh (2009) commented that the level of satisfaction directly affects absenteeism as well as turnover in the particular organization. Identifying dissatisfaction of the employees is required to use model.


Being successful organization, XYZ Energy had a strong, established robust procedure and systems that can manage the business and its risks. Innovated new procedures in the areas provide important competitive benefits. The organization had loyal staffs relatively with low turnover ((Nekoranec 2013, p.96). Management of the organization had largely majority in the sales process that was announced for the staffs extremely proud of the value.  The core business structure of the organization was not similar and operated in similar energy of retailing market. For an instance, it is required to be more commercial and efficient in trading as well as operational department. Chief executive along with functional members of the business is redundant to any types of integration of the operations at XYZ energy into Big Energy. Sally was retained for post sale that facilitates the parts of integrating into the operation. Big Energy needs to remove majority of the persistingstaffs as rapidly as possible for core competitions. The morale involved in XYZ Energy staffs to be plummeted for realizing that process. The team members are not allowed to compete based on the merits. Hence, it is required to focus on the innovative procedure as well as integration compared to the quality as well as long-term advantages (Manchanda, 2014, p. 1145). In addition, Sally felt strong beliefs that supported the development of the theory. It is important to attempt argument for senior management to revisit in the model of integration and leverage competitive benefits.

The Impact of the Merger on Employee Morale

However, work environment in Big Energy has discouraged value-consistent behavior, which may cause negativity to the particular organization. Perkins and Raisa (2013) asserted that level of satisfaction among the employees directly affects on turnover as well as absenteeism in the organization. Exit-Voice-Loyalty-Neglect model is useful to identify dissatisfaction among the staffs of the organization (Greenberg 2011). In the model, exit is about more number of employees selecting to leave the particular organization. Voice can be referred as Sally JohnSon trying to speak to the superior management in Big Energy related to the requirements and reanalyze the process of integration model and priorities to maintain as well as advantages completely from its competitive benefits as well as proficient staffs. Chughtai (2013) asserted tha neglect is about reducing effort in work for declining moral amongst the persisting staffs, which results failure in Big Energy to leverage innovative systems as well as procedures to the advantages.


There are also little chances to communicate among the staffs and senior management of the organization. They rarely turn up remote office in order to involve with new staffs in the team (Wright & Bonnet 2007, p. 142). Communications between different managers as well as their negative working environment is considered as feedback that helps to determine positive working environment.  The managers can provide subordinates to get a chance for interacting with them and solve the issues (McShane, Olekalns&Travaglione 2013, p.111).  It results fail in putting enough report for integration and any difference of their obstacle for getting success in the organization with the staffs.

2.(Kondalkar, 2007, p.83) mentioned that the organizations need to work in effective ethics and values for its employees.  According to the concept of ethical principles, disruptive justice is considered as equal rewards along with burdens, which are similar to each other. Having instead of effort, it leads up to the process of sale previously. The management of the organization needs to be partial to the persisting employees of the organization. It allows the staffs to compete for the jobs, which is based on the merit. It is not ethical to the organization e= for simplifying the tasks for XYZ employees (Edwards and Cable, 2009). In this context, big fish eat small fishes.  In this regard, upper hand gets priority in the bigger situation.  The management of Big Energy requires being partial to other staffs of XYZ in order to make proper competition the jobs based on the job for investing more previously compared to leading up to the process of sale (Aura, 2010) Engagement of the employees is vital to develop motivated workforce in the particular organization. Exception of the individual staffs is required to distribute fairly (Kondalka, 2007).

Involvement of the staffs is required to develop motivated workforce. On the other hand, big energy generally overlooks long term advantages of the employee engagement. It leads to reject morale and staffs of the organization. Jaroslav (2013) stated that motivated employees have ability to generate high quality work. Thus, management of Big Energy needs to concentrate on motivation of their staffs as well as involving in the new team rather than focusing on speed of integration.

The Importance of Values Congruence in Organizations

According to Creed (2011), developing engaged workforce in an organization needs proper commitments of the employees and management of the organization. Therefore, effective commitments in work explain the mindset and positivity of the organization in fulfilling the target as well as supportive work environment. It also deals with the staffs in proper manner and acknowledgement that can contribute and provide scopes for development of the staffs in the organization. In this situation, management of Big Energy may develop appropriate commitment through fairly training the employees. The process would be based on the merit of them at the time of retaining their jobs. In addition, acknowledgement of the innovative procedure as well as systems is owed to hard work of the staff members of XYZ. Thus, it is required to be supportive for Sally Johnson in terms of retaining staffs of XYZ.


XYZ Energy had honest and loyal employees with low rate of turnover along with well respected team. It makes a contrast with present situation as low rate of morale and leaving job by several people. However, staffs likely to remain in the current situation while moral situation is high. Creed (2011) stated that Brad Bird focuses on the significance of job satisfaction and explains the process of transforming a dollar to three dollars by using high morale. In this situation, management of Big Energy needs to align values of the organization with its staffs. Jaroslav (2013) commented that employees were proud for value developed by them for the organization in the process of sale. On the other hand, Big Energy has failed to create any significant value in the staffs of the organization instead of emphasizing on integration speed. As a result, long term advantages are hampered in Big Energy. Thus, it is required to ensure satisfaction and commitment along with low rate of turnover.  Big Energy had value shapes in attitude as well as behavior. Hence, value of the organization and individuals are similar, there will be less chance to generate conflicts as well as positive attitudes as the result of any types of decisions. It ensures satisfaction as well as commitment towards the organization. Value congruence generates better job satisfaction and intent for retaining in the  particular organization.

It is important in an organization to have effective communication (Morgeson et al. 2013). Hence, in order to teach as well as influence subordinates and reporting along with seeking approval needs to interact with other and require sound communication among the staffs of the organization. Edwards and Cable (2009) commented that management of the organization can understand demand of the staffs through interacting with them. Effective communication also plays a vital role to motivate employees. Kondalkar (2007, p.83) stated that proper communication between the managers with their subordinates is considered as proper feedback and influence the growth of positive environment for working. Therefore, it is recommended for the management of Big Energy to participate in the activities and encourage staffs to interact with more number of people.  Goal-setting theory can be helpful to motivate and influence behavior of the staffs.

Job Satisfaction and Turnover in Organizations

In addition, communication needs to be useful while it comes to the part of motivation for employees. Effective communication is essential at the time of providing feedback. It is the part of procedure of motivating the staffs, which usually comes with the setting of target. Hence, it is recommended to the management of the organization to participate actively for empowering them to communicate between each other. The management of the organization need to play a crucial part through providing scheduled feedbacks to enhance overall performance in the workplace.

Conclusion

Success of XYZ Energy is not blessed with getting success of being the organization, which has powerful procedures as well as systems. However, strong procedure and system are the strengths of XYZ energy along with well-respected management and loyal employees. The management team of Big Energy unable to possess similar abilities to obtain respect from the staffs for having wrong priorities as well as lack of comprehending the demands of the staff.  The changes as well as enhancements are developed and the results of the integration that is not suited with good people of the organization and put in the bad system of Big Energy.

The integration between Big Energy and XYZ Energy has created tensions among the staffs and define the importance of job security required to be kept in the minds of the managers. Hence, it is recommended to Big Energy to investigate deeper into the existed issues and retain skilled employees as long as possible in order to gain competitive advantages in the market.

References

Armstrong, M 2012, Armstrong's Handbook of Human Resource Management Practice, 12th edn, Kogan Page.

Creed, A 2011, Organisational Behaviour, Oxford University Press, South Melbourne.

Greenberg, J 2011, Behavior in Organizations, 10th edn, Pearson Education, England.

Kondalkar, VG 2007, Organisational Behaviour, New Age International.

McShane, S, Olekalns, M &Travaglione, T, 2013, Organisational behaviour : emerging knowledge, global insights, 4th edn, McGraw Hill Australia, N.S.W.

Perkins, S, Raisa, A, 2013, Organizational Behaviour : People, Process, Work and Human Resource Management, Kogan Page.

Thompson, P, McHugh, D 2009, Work Organizations: A Critical Approach, Palgrave Macmillan, UK.

Appelbaum, SH, Gandell, J, Yortis, H, Proper, S &Jobin, F, 2000, ‘Anatomy of a merger: behavior of organizational factors and processes throughout the pre- during post-stages (part 1)’, Management Decision, vol. 38, issue 9, p. 649 – 662, viewed 23 February 2016, Emerald Insight Database.

Chughtai, AA 2013, ‘Linking affective commitment to supervisor to work outcomes’, Journal of Managerial Psychology, July, vol. 83, issue 4, pp. 606 - 627, viewed 23 February 2016, Emerald Insight Database.

Codreanu, A 2010, ORGANISATIONAL COMMUNICATION PATTERNS UNDERLYING THE CONCEPT OF ORGANISATIONAL BEHAVIOUR ', Review of the Air Force Academy, issue 1, p. 98-103, viewed 23 February 2016, Proquest Database.

Edwards, JR & Cable, DM 2009, ‘The value of value congruence’, Journal of Applied Psychology,  vol. 94, no. 3, pp. 654-677,  viewed 23 February 2016, Proquest Database.

Manchanda, P 2014, ‘IMPACT OF ORGANIZATIONAL JUSTICE ON EMPLOYEE COMMITMENT IN SELECT PRIVATE SECTOR BANKS', International Journal of Organizational Behaviour & Management Perspectives, vol. 28, issue 6, p. 1145-1157, viewed 23 February 2016, Proquest Database.

Nekoranec, J 2013, ‘MANAGEMENT AND ORGANIZATIONAL BEHAVIOUR. SOME BASIC ASPECTS’, Journal of Defense Resources Management, vol. 4, issue 1, p. 93-98, viewed 23 February 2016, Proquest Database.

Shwartz, SH &Boehnkeb, K 2004, ‘Evaluating the Structure of Human Values with Confirmatory Factor Analysis’, Journal of Research in Personality,  vol. 38, no. 3, p. 230-255,  viewed 23 February 2016, ResearchGate Database.

Wright*, T &Bonett, DG 2007, ‘Job Satisfaction and Psychological Well-Being as Nonadditive Predictors of Workplace Turnover’, Journal of Management,  vol. 33, no. 2, pp. 949-973, viewed 23 February 2016, Sage Journal Database.

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