The South African holding company decided to seek an international joint partner in order to give the company credibility overseas, open new markets and use the expertise of the international partner. It is alleged that one of the main reasons that the MNC bought the South African Company, despite its poor financial performance in previous years, was because of a large order that was imminent from the South African Navy. After the acquisition, one of the MNC's goals was to turn a loss-making company into a profitable company within three years.
D About 45% of respondents indicated that they would not move to Gauteng or Cape Town, while about 53% indicated they were willing to move to Gauteng or Cape Town. D About 36% of respondents indicated that their willingness to move was dependent on meeting certain conditions. A newly appointed project manager then conducted a study to determine the feasibility of the eo location.
This was followed by a period of consultation with each of the employees at the KZN site with discussions on how this would affect each employee. In order to avoid operational disruptions, various incentive packages were offered to key employees to either relocate or stay with the company until 2001/2002 as per the above data.
Problem statement and objectives
2 Chapter 2 Literature Review
- Strategic Change
- Obstacles to Change Management
- Positive and Negative Pre-conditions for change
- Value-centred Leadership
- Change Management and Corporate Culture
Major changes in the technological environment of the company must lead to changes in the company's work processes, and may threaten the survival of the company. The former refers to the collaboration between the people who have skills in the strategic, social and technical areas of the organization, since change management programs are rarely successful if they are focused on one component in isolation from the others. One of the BPR debates largely initiated by both Hammer (1990) and Champy (1993), and developed by authors such as Klein (1994), concerns the use of an intuitive approach, versus a methodological approach to change and redesign (also referred to by Lynch (1997) as the prescriptive and emergent approach).
Another theoretical debate concerns the implementation of BPR and the relative merits of "clean proposition" versus "dirty proposition" approaches. Furthermore, companies introducing any initiative with significant implications for corporate culture are well advised to recognize the existence of change as a distinct force in the psyche of the workforce. Makie distinguishes two essential values; trust and non-judgmental behavior as principles to be lived at every level of the organization.
He offers the following advice, which combines aspects of the prescriptive and emerging approaches discussed earlier. Managing the human side of change is always more challenging than managing the technical side, and management should not overemphasize the technical side of change at the expense of the human side.
3 Chapter 3 Research Design and Methodology
- Research Approach
- Sample Design
- Measurement of change in staff turnover after the Joint Venture
- Measurement of change in staff turnover after the Acquisition
- Measurement of change in staff turnover after the relocation survey
- Measurement of change in staff turnover after the relocation decision
- Relationship between staff turnover and gender HO: Staff turnover is not related to gender
- Relationship between staff turnover and race HO: Staff turnover is not related to race
- Relationship between staff turnover and peromnes grade HO: Staff turnover is not related to peromnes grade
- Relationship between staff turnover and age HO: Staff turnover is not related to age
- Relationship between staff turnover and years of service HO: Staff turnover is not related to years of service
Staff turnover was measured by examining human resource management (HRM) records of staff terminations from January 1997 to September 2001. It was decided to measure whether there was a statistically significant increase in staff turnover before and after the following critical events. It was also decided to measure whether there is a statistically significant relationship between staff turnover and variables such as gender, race, Peromnes class, age and length of service.
4 Chapter 4 Data Analysis and Findings
Preliminary Analysis
Analysis of Staff Turnover vs Critical Events
- Analysis of staff turnover before and after the Joint Venture
To see if these observations are statistically significant, we construct operational hypotheses and test for significance.
Measurement of change in staff turnover after the Relocation Survey
- Analysis of staff turnover before and after the Relocation Decision Step 1: Formulate the hypotheses
Measurement of change in staff turnover after the Relocation Decision
- Discussion
- Analysis of Staff Turnover vs Biographical Variables
- Discussion of Results
- Discussion of Results
- Discussion of Results
- Exit Questionnaires
- Quantitative Analysis
The results of our analysis show that the change in staff turnover before and after each of the critical events, namely the joint venture, the acquisition, the relocation survey and the relocation decision, is statistically insignificant. It was clear that some information about the demographics of the staff was needed to have a basis for comparison. This data was kept up to date, and as a result it was not possible to look at the history of the staff complement.
It is known that staff in grades 11 to 15 tend to make up the bulk of the administrative staff in the company. J a questionnaire section completed by the employee's line manager regarding the employee's past performance. We then turned to the comments sections of the questionnaires to determine if there were any trends in the comments of the withdrawers.
Table 9 shows that most comments relate to furthering employees' personal career goals. Four themes emerge from a close analysis of the comments. These relate to low morale or pessimism, poor communication, lack of training and the move. However, this point was not explicitly found in the literature, except as one of the negative conditions for change (fear and lack of optimism).
We then turned to those responsible for managing the change process. This consisted of members of the executive committee and some department heads who played an important role in the change process. We have taken into account strategic benefits such as synergies brought about by the elocation of engineering departments.
Although the change agents indicated that they did not follow any formal approach in the change management process, in our analysis of the above responses we find elements of the prescriptive and emergent approaches described in Chapter 2.
5 Chapter 5 - Conclusion and Recommendations
Conclusion
We interviewed the change agents or managers and found that their approach to change contained both emergent and prescriptive elements. The strategic, economic and structural aspects of the change were addressed, as well as the human issues such as communication, staff buy-in, employee training on the reasons for change, and fairness in retrenchments and relocations, and redeployment . - training of retrenched employees. Our conclusion is that, apart from paying attention to the groups mentioned above and using more effective communication methods, the change process has been well managed.
It would be particularly interesting to compare and contrast the 'attitudes of staff at the Gauteng site with those at the KZN site. It would also be interesting to test the comments of the change agents to see if their views agreed with the majority of staff.
6 Chapter 6 - Limitations of the Study
7 BIBLIOGRAPHY
19.Henderson, J., McAdam, R, (1998), A more subjective approach to business improvement and evaluating organizational change, Total Quality Management, Ju11998, Vol. 21.Hill, F.M., Lee K., Collins, (1999), Total Quality Management and Business Process Re-engineering: A study of incremental and radical approaches to change management at BTNI, Total Quality Management, Jan 1999, Vol. Klein, M., (1994), Re-engineering methodologies and tools: a prescription for enhancing success, Information Systems Management, Spring 1993, pp. 30-35.
Robinson, E., (1997) A method for imaginative measurement and quality culture development, Total Quality Management, June 1997, Vol. Wilkinson, A, Witcher, B., (1993), Holistic total quality management must consider political processes, Total Quality Management, 4, p. 47-56.
8 APPENDICES
APPENDIX I- ,STAFF TURNOVER
APPENDIX 11 - RESIGNATIONS KZN ONLY
RESIGNATIONS KZN ONLY
- APPENDIX III - ANALYSIS OF RESIGNATIONS BY CRITICAL EVENTS
- APPENDIX IV - STAFF COMPLEMENT
- APPENDIX V • ANALYSIS OF RESIGNATIONS BY BIOGRAPHICAL VARIABLES
- APPENDIX VI - ANALYSIS OF REASONS FOR LEAVING
Date of Discharge Surname First Name Full Grade Job First Name Sex Age Race Service Reason Place REASON FOR LEAVE. Date of Discharge Surname First Name Full Grade Job First Name Sex Age Race Service Reason Place REASON FOR LEAVE.
