Case Study on Organisational Change - Essay Example

Case issues While analysing the given case scenario, it is clear that the takeover of the ‘Star’ by the ‘Iron Cage’ caused the Star to move from a highly profitable company to an underperforming company. The major identified issue is that the business acquisition raised severe challenges to the Star’s innovativeness as the resulted organisational change prevented the company from effectively dealing with experimentation. Undoubtedly, this adverse situation negatively affected the Star’s market competitiveness since thoughtful experimentation and frequent innovations are essential for the sustainability of a chemical company operating in a progressive niche-market.

Declining employee loyalty was one of the main reasons for the Star’s failure. According to the author, the business takeover led to the formation of a coercive worksite environment and hence this excessive bureaucracy by Iron Cage top management persuaded Star employees to change their view from “it is my company” to “it is just the company I work for” (Grieves, 2004, p.233). In addition, Star employees did not get extensive exposures to demonstrate their creativity due to the parent company’s over-involvement. . Such a situation adversely affected the formed organisation’s managerial activities and ultimately operational efficiency.

The most potential reason for Iron Cage’s break up is that the organisation failed to ensure the active involvement of Star employees. In short, it can be asserted that over-dominance of Iron Cage management over Star employees ended up in the Iron Cage’s break up and sell off. Case study analysis The company’s failure could have been avoided if the Iron Cage had efficiently dealt with the change management subsequent to the Star acquisition. The case study clearly indicates that the Ice Cage management was not thoughtful in integrating two entirely different organisational cultures.

The Iron Cage tried to coordinate quality assurance systems and achieve cultural integration by installing a managing director from its own ranks. The organisation did not consider any of the Star’s top executives for this change management process. In addition, the parent company had done nothing proactive in preparing Star employees to adapt to a new organisational environment. The Ice Cage’s business integration strategy was against the business ethics of change. According to Audi (2012, pp.46-50), the idea of business ethics is of greater significance in ensuring an organisation’s sustainability as this concept is a key to tool to achieve employee loyalty and reputation.

Similarly, the Iron Cage management did not give any importance to Star employees’ problems and opinions. In contrast, the parent company tried to suppress the ideas and suggestions of Star employees. The case study clearly indicates that Star’s managers were not satisfied with the language of the