Effects of the Absorption of XYZ Energy by Big Energy
Describe about the Organizational Behaviour for Operations of Organization.
The structure and operations of an organization can affect the behavior of employees within an organization. Thus, the study of organizational behaviors entails investigation on how the structure, individuals, and groups affect the human behavior in an organization. According to Argote and Ingram, (2014) creation and transfer of knowledge is a vital factor for establishing a competitive advantage in a firm. In this regard, the Big Energy case study outlines a retrenchment program for employees of XYZ Energy after complete integration of the two companies. Nonetheless, through organizational behavior we can be able to analyze the impact of the decision made by Big Energy on the employees that remain to facilitate the integration. Moreover, according to Singh and Srivastava, (2016) organizational behavior helps in analyzing job satisfaction, motivational impacts, emotions, psychology, attitude towards their job, the personality of employees. Thus, it is appropriate to understand the concepts of organizational behavior before making decisions that affect employees of an absorbed organization. The aim of this study is to ascertain the effects of the integration model utilized by Big Energy when it acquired XYZ Energy on the values, attitudes, and overall behavior of the individuals and groups of employees absorbed from XYZ Energy.
Effects of the Absorption of XYZ Energy by Big Energy
The global economy has changed the operations of many businesses in the current business environment. Although successful organization witnesses continuous success, they are often faced with continuous changes that are marked by changing tactics to respond to the changing economic conditions. Some organizations opt to merge or acquire other organization in the same industry like the case of XYZ Energy and Big Energy. Regardless of the strategy employed by the company, there are associated effects that come with the decision or strategy employed. In this case, the effects include loss of identity and status. However, these changes can have different effects on the level of employee engagement and behavior. This is because the organizational changes can result in changes in the expectation of the employees that can affect their careers. Moreover, organizational changes can have adverse effects on the business model, employees’ performance, and attitudes. Nonetheless, the effects of the integration model utilize by Big Energy is analyzed based on several factors that include;
Sociology Analysis: According to Macionis (2007), sociology analysis is conducted to analyze and identify the behavior of the different groups that exist within an organization. In this case, both organizations had similar roles with different employees working on them. This similarity can result in confusion and retrenchment of employees.
Psychological Analysis: According to Glaveanu (2008), psychological analysis helps in an analyzing the change in the behavior of an individual and its impact on employee performance during an absorption process. Moreover, this analysis can show the problems experienced by XYZ Energy employees due to changes in the working strategy of Big Energy. These changes can have adverse effects on the performance of employees and the organizational in general.
Social psychological analysis: social psychological analysis portrays the positive and negative effects of organizational changes and culture integration. Ideally, when different groups of people with different working strategies working towards a common goal, they should have proper coordination and understanding among the employees. This is because if the coordination and understanding of employees are not good, this can have drastic effects on the performance of an organization.
Having mentioned that is important to note that the goal of Big Energy after acquiring XYZ Energy should be managing the old and new employees since they both have the abilities to develop the organization and have a common goal. According to Hartnell, Ou, and Kinicki (2011), after absorption, an organization should strive to manage the diversity of employees that result from an acquisition by improving their work culture, organizational strategies, work model, and management systems to suit the perspective of both group employees. Moreover, according to Thompson and McHugh (2009), during an acquisition an organization is aware of the organizational behavior of the employees that is, employees behavior, thoughts, beliefs, working style among other factors. However, after an acquisition, an organization like Big Energy should conduct an analysis or study to ascertain the behavior, personality, thoughts, and beliefs of new employees expected to work with Big Energy. Nevertheless, Biswas (2009) outlined that to maintain the status and position of a company in the market after an acquisition; the company should consider the ability, working style, and beliefs of both employees. This can enable the organization to understand the challenges and the positive attributes the employees can bring to the organization and create a positive working environment that can sustain the growth of the organization. Thus, Big Energy should be an analysis of the organizational behavior of XYZ Energy employees to ascertain their commitment and loyalty level and from this analysis; the company can be able to ascertain the attributes they see fit for Big Energy.
According to Ajzen (2011) to understand the effects of an integration model on the attitude of employees, a company must assign the roles and responsibility of different employees to ascertain the satisfaction level of the employees. Thus, Big Energy should assign the employees their duties and responsibility to ascertain their productivity and determine their job satisfaction level. Ideally, due to the shift of working environment from XYZ Energy to Big Energy, employees can experience environmental problems (Card and Giuliano, 2011). Thus, the organization should ascertain if the environmental problem affects the commitment of the employees and affect their job satisfaction level. Moreover, due to the diversity of employees working for the same goal or objective, the company should conduct a meeting to ascertain the problems facing the employees.
Effects of Big Energy Integration Model on Employee Values
Hoffman et al. (2011) stated that the effects on employees values could be assessed using the McGregor Theory X and Theory Y. Theory X outlines that the dissatisfaction level exists in employees and when provided a chance they can leave their job. Thus, Big Energy should utilize Theory X to ascertain the satisfaction level of employees. This is because the employees can be affected by the new environment and loss of fellow employees. On the other hand, Theory Y entails the commitment of employees to their job description and how they perform these duties. Moreover, the model utilized by Big Energy can result in loss of important and experienced employees, who cannot be replaced easily. This can result in loss of morale and job commitment for employees that the company intends to keep.
Additionally, the model utilized by Big Energy can result to loss of vital employees that hold the organization together. This can result in the disruption of the organization culture that motivates and enhance the satisfaction level of employees. Thus, the model can result to employee demotivation due to loss of key employees. Nonetheless, this can result in a negative attitude towards the job as outlined by Theory X of McGregor. Moreover, according to Valle and Garcia (2006), it is important to set clear the values and beliefs of an organization before an acquisition process to focus a common goal in both employees of an acquisition. This can affect the performance of the employees because value changes can take a while to integrate into the employee's systems.
According to Hargreaves (2011), organization culture is an important factor to consider during an acquisition. This is because different individuals have different abilities and expertise that can contribute to the development of the organization. However, the model utilized by Big Energy does not take into consideration the organizational culture and the abilities of the employees during the integration process. This is because the company laid off the employees without considering their abilities and how it can contribute to the development of the company. This can result to unprofessionalism in the retained employees since they might feel the company does not uphold professionalism and competitiveness. This is because the company did not assess the qualifications of their fellow employees before laying them off.
Having mentioned that is important to note that the outlined methods of McGregor can help the company ascertain the thoughts, attitudes, and behavior of the individuals or groups of employees. According to Wolf (2009), after an acquisition there are management changes that face the human resource managers, these problems are termed as merger syndrome in which the change of management affects the values if the employees due to management change. However, the company can overcome the merger syndrome problem by conducting employee motivation programs like technical games or other forms of competition (Korzynski, 2013). Korzynski (2013) further states that the motivational activities can also help the company understand the qualitative behaviors of the employees. Moreover, to motivate the employees to work in a new environment due to acquisitions, the company must understand their qualitative behaviors (Eatough et al., 2011).
Social Psychological Analysis
The absorption of XYZ Energy by Big Energy can result in changes in the behavior of employees due to changes in management, changes in organization culture, loss of a fellow employee, and change in working environment among other factors. Moreover, organizational changes can result in changes in the attitude of employees towards the company that can de-motivate the employees. According to Kehoe and Wright (2013), after an acquisition, the cultural and behavioral values of both companies are combined to strengthen the ability of the company in achieving its goals. However, this move can result in negative effects on the behavior of the employees because of value and culture changes. In addition to this, the model utilized by Big Energy can result in even drastic effects because of the loss of fellow employees and friends. Furthermore, the model utilized by Big Energy does not take into consideration the values and culture of XYZ Energy, which can result in negative effects on the employees absorbed by the company.
Additionally, the model utilized by Big Energy can result in communication barriers within the organization because of the new environment, which can lead to demotivation and behavior changes in the organization. Ideally, demotivation can result to absenteeism of employees due to various reasons outlined by McGregor’s Theory X. However, conducting an organizational behavior study can help a company understand the interpersonal behavior of the employees that can help in the integration process of the employee and help in the motivation of the employees (Chiang and Hsieh, 2012). Nonetheless, Big Energy has employees from with different personality, attitude, and cultural difference. Thus, understand the interpersonal relationship can help in motivating the employees and maintaining good behaviors in the employees.
The main aim of an integration model is to find best approach and strategy that gives a company a competitive advantage over its competitors in the market. Moreover, a company should employ an integration model that best suits the needs of the company. From the above discussion, it is evident that the model employed by Big Energy is not effective in maintaining the productivity and motivation of the new employees and old employees in the company. Furthermore, the model is not effective in achieving the long-term competitive in the market because the company did not evaluate the organization behavior that would enable them to recruit the best and competent employees to deliver the objectives of the company. In this regard, there are various models that Big Energy could have used to achieve its long-term goals.
Collegial Model: This model focus on the teamwork of the Thus it could have enabled the company to integrate the best employees from both companies. According to Suppiah and Singh Sandhu, (2011) and O’Shaughnessy (2013), this model can enable the company to coordinate a good team that can achieve the goals of the company.
Autocratic Model: This model focus on the roles and responsibilities of the employees and their expertise. Miner (2007) states that the model can enable the company to recruit employees based on their expertise towards achieving the goals of the organization.
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