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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 emphasizes the dynamics of power and conflict within organizations. It posits that organizations are arenas of negotiation and bargaining among various stakeholders, which include employees, management, and external parties. Key characteristics of this theory include:
- Power Dynamics: The significant focus on how power is distributed, with negotiations often determining outcomes. This suggests that change is not only based on rational decisions but also on the political maneuvering.
- Stakeholder Influence: Recognizes the role of different interest groups and stakeholders, each with their own agendas. The theory posits that understanding these agendas is crucial for management.
- Conflict Resolution: Emphasizes the necessity for negotiating and resolving conflicts among stakeholders to facilitate organizational change, suggesting that effective management involves mediating differing interests.
Step 2
Explain a reason for resistance to change resulting from the merger of these two businesses.
Answer
One significant reason for resistance to change following the merger of Home Gym Suppliers and Athletic Sports Company is the cultural incompatibility between the two organizations. This may manifest in several ways:
- Differing Management Styles: Home Gym Suppliers' reliance on classical-scientific methods may clash with Athletic Sports Company's political management approach, leading to confusion and frustration among employees.
- Inertia of Management: Management may be hesitant to adapt to a more politically nuanced environment, resulting in a lack of clear direction and further resistance from employees who are accustomed to their previous management styles.
- Desire for Job Security: Employees may fear that changes brought by the merger could threaten their job security, leading to reluctance in accepting new processes or structures introduced by the merged organization.