MSM Final

3

Tamalya Lewis

MSM 520

Jane Gibson

Written 2

How Stakeholders are impacted by Change

My organization intends to merge with another company within the healthcare industry. Employees are among the key stakeholders affected by the change. Mergers represent a vast cultural and operational change for employees. This change goes beyond new management or a new name; it will affect the core of the company’s purpose, identity, and day-to-day work. The merger might also interfere with the company’s goals, core values, and mission. However, it might offer different benefits to the employees.

The Stakeholder’s View

Employees are more likely to view the net effect of the change as a gain, not a loss. The transition of two organizations into a single company will create advancement opportunities for valuable and skilled employees. What might have taken years in the organization might not take a long time, since the merger will expand the organization. Additionally, the new company will create positions for some departments or jobs the same way it might eliminate some departments and jobs. The advantage here is that an employee might find him/herself eligible for a job position he/she might not have expected soon.

The change will create better job security for the employees. As of now, my organization is facing financial issues, and most employees are scared about losing their jobs. Merging with the other organization to form a new entity will, therefore, create a more stable organization, which can help workers feel more secure in their different jobs. Another advantage is that the new company might result in higher and better pay. One reason we have decided to merge with another organization is partly because we anticipate developing a stronger company by combining funds and other related resources. Employees job security will grow if the change develops a more competitive organization that is financially stable.

The change will also generate training opportunities for the employees. As we all know, the transition from two different organizations into a single entity might change procedures/practices and even change employees’ roles. Effective training programs will provide the employees with the right skills and knowledge needed to perform new roles. The combination of the two companies presents an opportunity for business development, but it also presents a vast opportunity for employee development. As it is known, the best way to flourish and be profitable in the future is to offer proper training to the employees. The cost to offer training is significantly cheaper compared to the cost of having unproductive and confused employees. 

Change Leaders

Those leading the change are aware of how the change is likely to affect the availability of outcomes valued by the employees. That is why they are determined to do whatever they can to motivate employees to support the change. This includes communicating the change to employees. As Hayes (2014) indicates, the way a change leader communicates the change can have a huge effect on stakeholders’ support. Key stakeholders, especially the employees must be at the center of organizational change to ensure successful implementation of the change. Those leading change in my organization, communicates the change in a proper and effective manner. Regular communication will translate into a greater understanding of the change objectives, hence, successful change implementation.

Those leading the change have also implemented a support structure, which is vital in helping workers adjust to the change both practically and emotionally. The formation of one single entity from two different companies can lead to restructures, so, a support system is needed to help the employees manage the situation. A support structure will also allow employees to develop proficiency in technical skills and behaviors needed to achieve different business objectives.

Change Management

This information will improve the way the change is managed. The information has provided a consistent, structured, and effective change environment that facilitate successful change implementation. The information will also help the management manage and monitor change resistance. Resistance is a normal element of change management; however, it can harm the success of the change. Most resistance arises because of fear of the unknown. Others occur due to risks associated with the change. Having the ability to monitor and manage change resistance will facilitate a smooth and solid change lifecycle.

Communication Tactics

The management can use different communication tactics to overcome the barriers to change. The use of clear and open communication, for instance, will help control the fears and inertia that arise due to the change as management can explain how the change will impact the stakeholders and why it is being implemented. Clear and open communication will also facilitate a transparent and two-way communication structure that provide platforms to vent frustrations, appreciate what’s working, and change what does not work. To add to that, the managers can combine both formal and informal communication. This will ensure that news about the change will get across the organization. With all communication methods such as face-to-face communication, email, text messages, memos, employees will get the message in one way or another. This will also help explain the goals, expectations, and vision for the change.

References

Hayes, J. (2014). The Theory and Practice of Change Management (4th ed.). Palgrave Macmillan.