As I also stated in my introduction there have been many changes at Blacks recently in the last few months. Blacks are a fairly new business but have already become on of the UK’s leading suppliers of outdoor gear. Since opening they have generated high revenue and have been highly profitable every year. Every year Blacks beats the previous year in sales which shows that their market share is also increasing.
As Blacks looked at their financial status at the beginning of the year and looked at their objectives there was suddenly an opportunity in the market. Competitor called Outdoors, who supply similar products to Blacks for camping was in financial crisis. The only way for Blacks to increase their market share is to close in on competitors.
Blacks saw their opportunity and starting buying Outdoors’ shares. Before buying shares though Blacks approached Outdoors and asked if they would be willing to comply with a friendly take over, but they rejected hoping that there financial crisis would be resolved. It soon became obvious that they were in too much debt so Blacks seized their opportunity and bought them out.
A hostile takeover was imposed and there was nothing the firm could do. They tried to resist the takeover bid but could not manage the finances. The board of directors did their best to ensure shareholders that their interests would be best protected with the current board but many fled
They are now in the process of changing these stores into Blacks stores. The implication of this change has had a big effect on both Blacks’ employees and Outdoors’ employees. There were feelings of fear as to what will happen with so many job that and who would work in the new stores.
In order to show compassion to the existing workers of Outdoors it was decided that they were going to keep the majority of workers and only make a few redundant that had little product knowledge or were just simply not needed. However the staffs were assured that changes would be made in the culture so as to meet the required level of customer service that Blacks offer. This caused some unrest as they resisted to changes
Due to workers being let go some rumours got around through to Blacks stores that existing Blacks employees may have been dropped. However it was just a rumour that fizzled out and started with no real reliable source.
This was one main change that happened at Blacks. Another was the change of manager at the beginning of the year. As I have already stated the change in manager has not been the best to date. The new manger has adopted an autocratic style of management. This leaves no space for ideas to be shared or any participation in decision making.
As a result of this many workers were threatening to leave as before the manger had come we were constantly making bonus by reaching our targets. Since he came though, we have not been able to make target because the workers are de-motivated.
Ways of handling Resistance to Change
The new changes at Blacks have affected the natural order of things at the workplace, for example, new working practices will be introduced, staff have been made redundant and some staff may be re-located to new stores.
This in itself will lead a natural resistance to change, so the question is: how should managers handle this resistance to change? I will propose six easy steps:
1. Managers should keep workers informed at each stage as to what is going to happen. This can be done by having:
-regular staff meetings
2. Managers need to involve workers in the decision making process. This way it helps them to feel a part of the organisation
3. Take steps to avoid rumours spreading and misinformation circulating within and outside the company
4. Set up works council where worker representatives can meet with senior management and discuss issues pertaining to the future of the business
5. Invest in training to enable workers to cope with change, also offer counselling to the workers who may need to be made redundant
6. Review the organisational culture to ensure it fits with the future plans for the business