This report stresses that mergers and acquisitions often fail to materialize because of the inability of the two firms to actually reconcile their cultural differences. The given case study outlines different situations which emerged as a result of the acquisition made by Orton of the Costwise. …
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Organizational behavior theories suggest that managers have to accomplish different organizational tasks through employees. As such motivating employees is one of the key tasks to be performed by the managers to ensure that the will to deliver the work and accomplish the organizational tasks remain high. In order to achieve any level of motivation, managers therefore have to offer certain explicit and intrinsic rewards to the employees to remain motivated. It is important to understand that motivation is not necessarily being related with the rewards of monetary nature but employees can be motivated through different other aspects of overall work too. Managers therefore must have to ensure that they understand the different motivational states of their employees to design and develop appropriate motivational strategies. (Rollinson, 2008.) Motivational States From the facts provided in the case study it could be assessed that the employees of both the organizations felt demotivated and were unable to cope with the change. The employees of the Costwise specially seem to be at odds with the proposed changes in the culture as well as change in the management of the firm. Firstly, the managers at Costwise were relatively independent in terms of setting up some of the tactical moves for the stores. Hiring, setting up prices as well as managing the overall competition at local level was in the hands of the managers. With the takeover, however, this was not the case as Orton was highly centralized in terms of controlling and setting up each and every aspect of doing the business. This move from the de-centralized culture to a highly centralized...
The overall situation described in the case study suggests that takeover has resulted into strong dissatisfaction for the employees. The lack of motivation therefore might have resulted into employee performance issue which could not allow the firm to actually profit from the takeover. It is also important to understand that the overall culture of the organization was highly centralized with most of the decision making taking place at the center. This has however, not been the case with the Costwise where managers were often involved in the decision making at the store level. This change in the way decisions were made therefore has also resulted into the strong motivation issues for the organization. In order to overcome such situation, it is important that Orton must redesign its compensation system to better accommodate the employees. There is an strong resentment within ex-Costwise employees that they are being paid less thus creating dissatisfaction as well as the lack of productivity.
This paper makes a conclusion that empowering the employees is also another important strategic move which can be undertaken to ensure that the employees perform to the best of their capabilities. This could be achieved by allowing more participation from the employees and making them part of the overall decision making process undertaken at the Orton. This could allow the employees to become more responsible and accountable for their work and decision.
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“Organisational Behaviour Assignment Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/management/1392682-organisational-behaviour.
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