The Impact Of Organizational Behavior On XYZ Energy During Its Integration With Big Energy Company

Analysis of Big Energy Business Model

Discuss about the Organizational Behavior XYZ Energy.

Organizational behavior is a dynamic field involving various aspects that are required for the functioning of an organization (Buchanan, 2010). This discipline is inclined towards the human aspect that help an organization function effectively and efficiently enabling it to attain its goals. While goals, objectives, vision and mission forms the driving force for every organization it is the employees that turn them into achievable. The scope of this essay deals with the analysis of integration of XYZ Energy with Big Energy Company. While the takeover had been successful with highest priced being paid, it had a negative impact on the employees of the Company (Wood, 2016). XYZ Company had derived its synergies from its existing employee base, with Big Energy ignoring the aspect and making its management team redundant there was a massive impact on values, attitudes and behaviors of the staff of the Company. The essay analyzes the influence of such behavior and certain recommended strategies to overcome the same (Cummings, 2014).   

The role of organizational behavior involves multiple theories and concepts that aim to highlight aspects to gain productivity from employees (Bowditch, 2007). A company might adopt various means and measures such that employees develop job commitment and strive to meet organizational objectives. Big Energy absorbed XYZ Energy into its business model that had an adverse impact on the employees of XYZ Energy. The Company had been a leader in the market space and made high deals in sales form the high levels of commitment of employees. Employees at XYZ Company possessed high levels of motivation and employee engagement that drive them for their Company (Aldrich, 2008). Such high levels of association were due to the leadership structure and prevailing management systems. High levels of loyalty and morale prevailed amongst Company employees that led to their high performance. The takeover by Big Energy was a sudden change whereby the chief management team was made redundant, due to lack of leadership and employee engagement, staff turnover started becoming high from low levels (Choi, 2010).

XYZ Energy was a government owned Company possessing a high-profile corporate sales process. Its already established business model gave it strength and capability to establish itself as a market leader in the energy space. The team of the Company had efficient business model with risks handling and mitigation techniques, it followed a dynamic innovative process that provided it competitive advantage (Barsade, 2007). With low staff turnover and a strong organizational culture, it enjoyed a loyal group of employees who had faith in the Company and was proud of it. The new organizational culture hence was unknown to the employees posts the Company’s integration with Big Energy. Though Sally was appointed to handle the integration, with removal of core management team there was a loss of confidence. The previous business model worked more like a team wherein each business lead initiated from sales and converted using support and other techniques. As Big Energy removed the management team, employees developed a feeling that they will soon also be removed from the integrated Company and their roles will no longer be viable or necessary (Christensen Hughes, 2008). This lead to further low morale amongst employees leading to dissatisfaction levels.

Employee Productivity Levels

The handover of the Company progressed by no recognition system for the employees and staffs. Removal of chief management team depicted low confidence in the way the Company earlier functioned and non-utility towards other staffs and employees. Existing employees at Big Energy were also reluctant to integrate and accustoms with the employees of XYZ Company (Cherniss, 2010). Employees are the most effective resource for any organization. An employee spends maximum part of his life in an organization and being an emotionally intelligent being derives satisfaction from his job role. In absence of recognition and motivation through various endeavors an employee might lose his interests in performing at a particular job role. Such attributes have an effect on the attitudes, values and behaviors of employees. The remaining employees at Big Energy Company started disassociating themselves with the Company and looked for jobs elsewhere (Volkov, 2007).

Employee productivity levels are impacted by various factors which are monitored and controlled such a way that attitudes, values and behaviors are directed towards organizational goal. In this case Big Energy in the integration model has demotivated the staffs by removing their leaders and making them trivial. The Company was not able to recognize the benefits and productivity levels of the staff that could impact the Company’s overall productivity (Chiu, 2006). Such endeavors led to the staff feeling less involved with the organization and hence deciding on leaving the organization. Staff turnover is a critical aspect in organization’s that can lead to high costs related to recruitment and training and development. A staff is more likely to feel stressed, burnout and low levels of motivation associated with this type of work culture. The integration model adopted by Big Energy will lead to stressful attitude of employees and disruption of work life balance (Cunliffe, 2008).       

Employees at the XYZ Company functioned well due to the associated management structure that had a valued leadership system. Such leadership system was well guided by Strategists Sally and other management team members. In absence of a change management leaders and a proper integration model there was an immense gap created by the promoters of the Big Energy Company (Allen, 2007). They failed to visualize the effect this would create on the attitudes, values and behaviors of the employees. The employee’s behavior rapidly transformed and from being productive they become non-productive with a negative attitude towards work. Further, they did not have a proper organizational culture to follow in lack of a leadership system. From the uncertainty of organizational change and leadership system there was a rapid transformation associated with the value system of the employees as well (Avtgis, 2007). The employees had a high amount of association and commitment towards the XYZ Company, which deployed several training and other necessary employee engagement strategies. Improper integration into a new business model with no training and acclimatization for the employees reduced their existing levels of job satisfaction leading to high turnover (Armbruster, 2008).  

Impact on XYZ Company’s Values and Behaviors

Depression amongst employees not only led to low amounts of productivity but also lack in innovation as they lost trust in the new Company. Fear of being redundant made their behaviors stressful and they were all finding for ways to maintain their jobs till they found an alternative. This behavioral aspect within the organization will greatly impact profitability and revenue generation for the Company (Cosner, 2009).  

While Sally had been in-charge for the integration her point-of-view was unheard and the core management team was removed. The basic functional efficacy of XYZ Energy derived from their team work and team building exercises. The entire processes and methods were integrated and designed in such a way that each member from the management along with employees could contribute. In absence of the model for performance and transition into new business model requires time and effort. A transformational leader rather than a strategists would have been capable for hand holding the process of change. Stagg anguish and agitation is a natural outcome for such ineffective and inefficient transition into the new organisation. Thus, below are some recommended strategies that will enable the Company to overcome the current situation and gain competing edge in regards to innovation in the market.  

Recommendation and Conclusion

Big Energy had been effective in taking over XYZ Company and enhancing their competitive edge. However, the primary reason for XYZ Company being a leading competitor in the market was derived from its employees. Hence, Big Energy needs to instill the following strategies such that it is able to regain a major market share;

• Big Energy needs to instill an ambience that can uplift employee morale. With high levels of employee turnover and low innovation with the Company, there needs to be a way and method that could uplift employee morale. The new Company management can talk with individual employees and resolve their stress level. Such aspect will reduce employee burnout factors and make them gain back confidence in their current job role.

• The Company needs to adopt motivational strategy for its integrated employees. The employees behaviors have become negative due to the lack of any job description and job designing. With appropriate motivational strategy aimed at motivating each employee, the Company can gain significantly. Motivational strategy deployed will help develop association with current employee base and enhance their job commitment towards the organization.

• It needs to adopt proper integration model for its new business in order to emerge competitive. The integration of Big Energy with that of XYZ was rather rapid in nature and failed to account for all necessary changes taking place. While the changeover was taking place, the Company needed to appoint a change management leader who could appropriately handhold the process of change and allow for steady integration.

• It needs to adopt a leadership system that allows employees to reach Company aims and objectives. The high success of XYZ Company was greatly associated with its management team. Hence, managers and appropriate leaders can make high contribution towards meeting of organizational objectives. A transformational leader who would allow a proper transition for XYZ employees into the business model of Big Energy would have made the transition valuable.

 

• It needs to deploy employee engagement plans in order to reduce employee turnover and gain high levels of productivity. There are several employee engagement ways and means that can help overcome identified issues. Training and development is an ideal way in the current situation that will enable Big Energy to help its employees identify the Company’s goals and aims. Training and development that can provide employees valuable insight into the business model of the organization. Though their operational and style of functioning might match there are certain discrepancies in their organizational culture. Organizational culture greatly impacts an employee’s behaviors, values and attitudes. A conducive organizational culture creates positive association in between employees and management. Employees needs to be properly guided and provided adequate inputs regarding the existing organizational culture at the Company. This will enable to create an innovative atmosphere and a productive one.
                                                                                                                  

• Overall Big Energy needs to reduce its staff turnover ratio, especially in regards to the staff it has taken from XYZ Company. There is a prevalent issue in Big Energy regarding staff turnover, as employees are leaving the Company due to high levels of dissatisfaction. Such high staff turnover can lead to serious impacts on the Company’s current business model and hinder further growth. Thus, strategists and managers at the Big Energy needs to figure ways and means to reduce the same.

In case Big Energy adopts the above recommended strategies, it will be able to overcome its current issues and establish itself as a leader in the industry.

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