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Academic reportCase study: Transformation at Galactic Manufacturing CorporationPranay Kamtam-20149545MBA 7000People and OrganisationProf: Barbara BarnesDATE:11/12/2018Introduction:The report evaluates the key issues faced by leaders and operation manager due to merging three businesses (food, home, personal care) into one organisation. Galactic manufacturing corporation is an UK based global product group have decide to merge their three businesses area (food, home, and personal care) is to accomplish its purpose and to gain maximum profit. Change in the organisation will affect organisation culture and structure.
Merging businesses have become more established part of life, especially in the business and corporate environment (Brousseau, 1989). According to Covin and Kilmann (1990) mergers always give negative impact on organisation culture due to poor communication and lack of management support. The main aim of the report is to examine the impact of the changes on those involved. Its primary approach is through analysis.Key issue faced by leaders and managers:1.Change in organisation structure: GMC has not seen such a massive structure change in its 70 years history, it will be very challenging for the leader and managers as GMC implemented Flat structure with in the organisation it has many disadvantages like less advancement opportunities for employees, inefficient decision making (Rishipal, 2014).
Making the right decision at the time of merging the three business will be a key issue faced by the leaders. The wrong decision taken by leaders and managers will result in the business diverting away from main goal of obtaining maximum. According to organisation theorists (willianson,1975; Ouchi, 1979; Rivkin and Siggelkow, 2003) decision making and monitoring is considered as main organisation practices’ has transformed its global business into flatter organisation structure where manager and leader had to take the decisions and need to monitor the productivity among the employees.
2.Change in organisation culture: According to Cameron and Quinn (2011) states that culture is the major distinctive feature of successful organisations. Competition in the organisation had increased between the employees in the GMC after the merging of the business, it is positive sign for the business however for some individual it may be demotivating which would disturb the work environment. It is leader and manager responsibility to take decision by consensus not by the competition. According to Cameron and Quinn (2011) organisation culture will not be impacted if the decision not made by competition.3.Redundancy: Redundancy damage the organisation when its used for organisation change. redundancy damages employee in terms of employee trust, employee stability and motivation (Campbell-Jamison, 2001). After merging the business, it would have been very crucial for the leader and manager in GMC to take the decision on lay off. Leaders and managers must decide on what basis the employee need to be laid off and removing of employee would have been a big challenging issue for leader and managers as on what basis the employee need to be removed from the organisation and mainly need to work on remaining employees as redundancy should not damage the organisation structure and culture. brock et al. (1987) in terms of redundancy there will be a significant impact on the survivors as how justly the redundancy employees were treated. Redundancy would be a big challenging for leaders to choosing an employee for redundancy.4.Managing change: Change is constant in this world managing those changes by manager and leaders within the organisation is the biggest challenge (Carnall, 2003). GMC had followed same structure and culture for 70 years and after merging of its three-businesses, GMC culture and structure had changed and to manage the changes it will be very tough for leaders and managers.a) Challenges: GMC has changed its structure after 70 years and the leaders and manager must go through challenging time initially.it is leader’s responsibility to assign the work to the right department at right time and managers must monitor the work.b) less manpower more work: GMC had depended one HRM and with less managing power who were there managing UK business. Doing more work with less manpower will be risk to leaders and manager .it will increase the stress on the individual department leaders and managers which may leads to lose of concentrate on employees. More work load with less manpower would increase the stress of an individual employee which will impact on the performance (Tipton et al. 2013; Taylor 2015).5.Other issue that could have been faced by leaders and managers: a) Relocation: Employee working in the organisation will not be happy with changes. relocating the business may not be convenient to employee who have family or who are familiar with the new places, in that case leader and manager have to take the decision on the employee whether to ask the employee to resign or attract them with some incentives.b) Change in work environment: Although the work environment was made pleasant, employees who have moved to the new work place may feel demotivated in the initial days of work as the change was brought after 70 years and the culture and structure of the organisation has changed. HR issues:1.Outsourcing: GMC had outsourced its HR services to Global HR services which is located in Bangalore India. The HR services was outsourced to achieve cost-effectiveness and the work was outsourced for $1.2 billion. According to OSF GLOBAL SERVICES (2012) report: outsourcing could in fact increase the cost of the company. Therefore, it will be very challenging for GMC to achieve the cost effectiveness. There could be many issues in future a) Unsecure data: It is very risky to provide their employee data to an outsourcing company. if the data goes into wrong hands GMC may lose its reputation or it may lead to different unknown consequence.b) Communication gap: There will be certainly collaboration issue between employee of Global HR services and the HR management in UK. Director of GMC HR department agreed that there will collaboration issues with the new teams of HR which needs to be addressed. according to Gilley (2005) communication is very essential to achieve successful results2.Straitegic HRM: Strategic HRM has been used by different global organisation to improve its firm performance (Dimba, 2010). Strategic HRM a way deal with HR, that offers support to the organisation goals with proper strategy formula (CIPD). strategic HRM involves organisation development management and talent management. HR staff have an essential task to carry out in change management as they need to work as change agent as well (Ulrich, 1997). Talent management at GMC would just be conceivable if there is appropriate investigation of HR Metrics.HR plays very important role in talent management and change management. HR are likewise a key accomplice to organisation (Ulrich, 1997).3.HR metrics: HR metrics are an essential method to evaluate the expense of HR and the effect of representative projects and HR forms Furthermore, measure the achievement (or failure) of HR activity (Kalpan & Norton, 1996). As the HR services it will be very difficult for GMC to rate the talent of an employee. According to Caine and Parker (1996) it is importance to hire the correct employee at correct time and correct place. with redundancy there would have been change in the HR matrices and it will become bit difficult to plan and forecast at GMC as the HR metrics was outsourced.4. Less scope for new comers: GMC HR services are managed by only one director as the HR services was outsourced there is less chance of hiring new HR employee at GMC. GMC will now be focusing only the experienced workers and talented employees. However, a stable and loyal workforce culture will be disturbed. loyal and stable employee in the organisation is more productive (Auer et al., 2008).HR policies and recommendation to be followed at GMC:1.Outsourcing: Many organisations have understood that they basically don’t have the required arrangement of skills among their present employee or to earn more profit the work is being outsourced so that work can be done on time and companies don’t need to train them and upskill their employees. GMC has outsourced its HR department to global HR department. GMC HR UK department whenever if any data is being shared with them even GMC UK HR department have to look for it so that they get clear information about their employee. GMC need to provide training to outsourcing staff. 2.Performance and rewards: HR play a vital role in the organisation. Human resources need to recognise the employee productivity and employee talent. Rewards have a great impact on motivation of the employee. rewards, recognitions and incentives are the prime factors that affect employee motivation. appraisal leads to rewards and better HR development which will be straightforwardly connected to employee performance. According to freedom (1978) employees being rewarded for the excellent performance which they do for the organisation which untimely result in profit of the business. GMC HR services need to focus on employee motivation and recognise them for the work they have done. As GMC agreed that they moved towards performance driven culture, it is HR responsibility to rewards the employee for the good thing they have done as it will feel more motivated which will ultimately improve GMC productivity. 3.Learning and development training: As the GMC has recently adopted new culture after 70 years it will be concerning for the employee to work in different places .HR service employee need to motivate leader to take part in learning new things and improving the ability to work which will help employee and organisation in the long time Ullrich (2008). Change is necessary in any business and employee working in the organisation need to be flexible in working. HR need to provide learning opportunities to employee which may help the business In the long time.HR management have to focus on each and every individuals developing their skills which should help the business .HR management should concentrate on the employees who are unable to give their best ,they need to help the employee to improve their skills. 4.Strategic HRM: According to Wright & McMahan (1992) SHRM is the example of arranged HR arrangements and exercises planned to empower an association to accomplish its goals. Strategic HRM mainly focus on the system of human resources practices help enhance firm performance and help organisation to achieve its goals GMC Uk and Global HR services need to collaborate and work to achieve its goal.UK HRM and Global HR services need to work to gather to accomplish its goals. 5. Employee relationship: Higher job satisfaction may lead to greater employee commitment to organisational goals and values. GMC had removed many of its employee to achieve cost-effectiveness due to which employee might have felt insecure about their job and its very important for a business to have a strong relationship with their employee. Higher involvement of employee with the organisation leads to greater productivity and enhanced motivation and desire for more responsibility (Fenton-O’creevy, 1998). GMC must come up with the new idea which will motivate its employee and make them involve in the organisation which will be beneficial for future. According to Kopelman et al. (1990) giving value to employee goals would lead to increase in productivity of the organisation and motivate individual employees.Reference:1. Rishipal (2014) Analytical comparison of Flat and Vertical Organizational Structures’, European Journal of Business and Management, 6 (36), pp. 56″65.2. Mathew J. 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