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Home Gym Suppliers merged with Athletic Sports Company to improve profits - HSC - SSCE Business Studies - Question 24 - 2006 - Paper 1
Question 24
Home Gym Suppliers merged with Athletic Sports Company to improve profits. Home Gym Suppliers had been using classical-scientific theory while Athletic Sports Compan... show full transcript
Worked Solution & Example Answer:Home Gym Suppliers merged with Athletic Sports Company to improve profits - HSC - SSCE Business Studies - Question 24 - 2006 - Paper 1
Step 1
Describe political management theory.
Answer
Political management theory focuses on the dynamics of power and influence within organizations. It posits that decision-making is often a negotiated process among stakeholders with varying interests and power levels. Key characteristics include:
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Negotiation and Bargaining: The theory emphasizes the importance of negotiation among key stakeholders as a strategy for exercising power and influence within the organization.
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Coalitions and Alliances: It often involves forming coalitions where groups come together to exert influence on decisions and policies.
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Conflict Resolution: The theory recognizes that conflicts are inevitable and requires mechanisms to resolve disagreements among stakeholders effectively.
In summary, political management theory highlights the significance of political behavior and relationships in organizational governance.
Step 2
Explain a reason for resistance to change resulting from the merger of these two businesses.
Answer
A significant reason for resistance to change in the merger of Home Gym Suppliers and Athletic Sports Company is the cultural incompatibility between the two organizations. Employees may find it challenging to adapt to new processes and practices that diverge from their established norms.
Specifically, this resistance can arise from:
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Financial Concerns: Employees might fear that the merger will lead to job losses or reductions in benefits, prompting apprehension about their financial stability.
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Inertia of Management: Long-standing management practices may lead to a reluctance to adopt new strategies, contributing to a disconnect and resistance among staff unwilling to change.