Evaluating all the forms of Change during a Merger

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The theme of this topic is to examine the organizational encasement include technological changes. Technological change demand that organizations how to manage the improvement processes.

M anagerial change can be defined as the process in which organizations attain preferred goals. Intended organizations introduce the change for partners. The major factors or forces which are reasons for changes are political, economical, demographic, global, social and ethical forces. The basic reasons for changes at the level of organization are culture, strategy and structure. The reasons for changes at functional level are different suppose direction and power, disagreement and differences in group's directions.

The reasons at the low level like groups or team are values, cohesiveness and groupthink. The reasons to change at individual level are business, instability and insecurity typical way of thought and intentions and habits. Evolutionary changes comprise of restructuring, downsizing, and reengineering and total quality management. This method is use for flexible group work and in relax atmosphere.

According to Lewin's force field theory of change. The theory base on process which associated with research describes how organization attains goals. The difference thought related to organization develop are highlighted as a yardstick to help both organization to increase their efficient and attain goals.

Learning outcome 1: Understand how to apply solutions to organizational change

To illustrate organization change while the process by which organization reach their preferred goals.

To identify the different translation of changes.

To identify the different aspect of changes.

Define the both reasons and the meaning of changes.

Define the dissimilarity between revolution and evolution ways to change.

Describe the Lewin's force field theory of change.

To give the details how to apply the basic steps of action plan.

To identify the variety of components of organizational growth.

In this topic examine the organizational encasement include technological changes. Technological change demand that organizations how to manage the improvement processes.

Organizational change can be defined as the process in which organizations attain preferred goals. Intended organizations introduce the change for partners. The major factors or forces which are reasons for changes are political, economical, demographic, global, social and ethical forces. The basic reasons for changes at the level of organization are culture, strategy and structure. The reasons for changes at functional level are different suppose direction and power, disagreement and differences in group's directions.

The reasons at the low level like groups or team are values, cohesiveness and groupthink. The reasons to change at individual level are business, instability and insecurity typical way of thought and intentions and habits. Evolutionary changes comprise of restructuring, downsizing, reengineering and TQM. This method is use for flexible group work and in relax atmosphere.

According to Lewin's force field theory of change. The theory base on process which associated with research describes how organization attains goals. The difference thought related to organization develop are highlighted as a yardstick to help both organization to increase their efficient and attain goals.

What is organizational change?

Organization required change when an organization wants to want to restructure their resource to use them at maximum level and increase the ability and effectiveness. A company who facing the problem tries to find the ways to get back customers. A rising company introduce new product. Change is common in last 10 years; over 50 percent of all chance 500 companies have decided important change.

Target of Change

The areas include in organization changes for example Human Resource Management. A change take place in account of investment in training, changing, norms to motivate a diverse workforce, social employees, Monitoring promotion and reward system and made change in top management. Functional recourses can be use to increase the value innovation as an environmental changes. Therefore the key factors are important. Organization change comprise of change in structure, culture and technology to increase the value of functions. For example a well team environment improves the growth time. The technologies that use to identify the team work enhance the efficiency and worth.

Technological capacity present new product change in active product and create the importance. Increasing the consistency and feature of product and service is an important part of technology. Sometimes organization need to change there structure to get benefits of new technology. Organization capacity related to operations. Organization use human resource and functional and technological resource from end of structure and culture. These independent resources are influence each other.

Kurt Lewin Model

Lewin is recognizes as a "creator of social psychology" who truly point out the human feature of change. The basic purpose of research is focusing on factors that control the people to change and describe the three stages necessary for successful change.

Kurt Lewin described the three stage of hypothesis of change usually use as unfreeze, change, freeze (or refreeze).

Unfreezing

UN freeze is the most important stage to realize the change in the world now days. From this stage process of change is start. This stage is very important to understand that change is necessary and provide a plate form to move from current position to change. Unfreezing is a stage in which analyzes the all factors before you decide to take a step. The main porpuse of Kurt Lewins theory of force field analyzes.

Change - or Transition

According to Kurt Lewin change s not an event but it is a process and he named it a transition. Transition is an internal pressure or struggle to provoke towards change in change process this stage comes when we change the status from previous that required. This stage influence us that change is beneficiary for us to take a step but this is looking so risky but when you made it you feel a lot of change in your personality also know about your self.

Freezing (or Refreezing)

According to Kurt Lewin's this stage is freezing but most of the people identify it as refreezing stage. This stage is about strengthening the change or stability after the change. The change is normally acceptable and introduces new norms and values. The people who accept the change become more comfortable with new norms. The main concern of this theory is make the change and make sure the desire result is producing also maintain the change in future. It is not happened the result could be change the situation then result would be more terrible. That's why Kurt Lewin's called it freezing to make sure the change is stable and will continue in future.

Learning outcome 2: Understand how to develop a change strategy using implementation model.

Burke Litwin Model

This model has been developing to observe organizational changes and routine. It shows a relation between examination of wider range of institutional framework and the culture also process of change inside the organization.

The model revolves around 12 organizational dimensions:

External environment

Mission and strategy

Leadership

Organizational culture

Structure

Management practices

Systems

Work unit climate

Task and individual skills

Individual needs and values

Motivation

Individual and organizational performance

The model also distinguishes between transformational and transactional organizational dynamics in organizations.

Mergers and Acquisitions 

One plus one make eleven is a special feature of merger or an acquisition. The basic purpose of buying a company is to increase the value of shareholder in result of gathered the resources of two companies. When two companies gathered there resources are more valuable then two separate entities. That's the basic behind M&A. This foundation is most appealing to companies when the times are hard. When the companies will gather competence. Because of these prospects benefits, target companies frequently agree to be purchase when they know they cannot stay alive.

Atlas bank and Crescent bank o

Acquisition deal

Feb.2009

Banking sector

8576 core

1:4 share bet. Atlas bank and Crescent bank

Unfreezing and change or transition:-

Atlas Bank delivered a Net Profit growth of 47% yoy to Rs484cr (Rs371cr). Though, the figure is not similar as IFQ2008 figure are subsequent to according to merger crescent Bank (CB). EPS growth was 15% yoy.

Whereas a disintegrate of line substance interested in Atlas Bank standalone and CB was not available, including CB 1QFY2009 Net income, proceeds grow 32% yoy. The Bank wrapped up the supplementary Provisioning operating cost to convey CB's Secretarial policies used for NPAs in order to its individual stricter policies, by adjusting the identical next to treasury, with a predictable contact of approximately. Rs18-22 per share. Per share. Management indicated nucleus of NIMs of the combined body stood at regarding 4.2%, though the CASA ratio decline to 48%. At …

Al to gather, operating cost, except overhead decrease by 1.5% in sequence. Presenting extensive reduction in cost throughout the session, in line of action. Assets position still consistent, with same net profit ratio at same rate.

Business environmental

At the CMP of Rs1059, the stock is trading at 15.7x FY2010E EPS of Rs66 and 2.1x FY2010E Adjusted Book Value of Rs484 (which factors in the merger with CB and conversion of warrants allotted to Atlas bank).

Vodafone and Hutch

Telecommunication sector

Acquisition of Hutch by Vodafone

Mission and strategy

To take place at number position in telecom sector.

To introduce more foreign brands.

To obtain the more number of government approval in telecommunication industry.

India is the quicker mobile user in world suitable because of population.

Unfreezing

To understand the demand of telecom industry according to market.

POLITICAL

Needs to create self regulating controls in relation to content Public concern

ECONOMIC

Stage of Growth

Company's behavior

Moral Values

Junk Text Messages

corporation with Government

Code of Practice

SOCIAL

Mature content

Mobile phone stealing

nasty calls

Text harassment

Blue jacking

TECHNOLOGICAL

Telecommunication

Text messages

Blue tooth Technology

First Generation Technology

Second Generation Technology

Advent of 3G mobile phone Technology

Learning Outcomes 3: To analyze organizational response to change

Strength-

The major power of Vodafone in the telecommunications market deception in its brand image and recognition. Vodafone, have recognized as a global company and having investment extremely in marketing a differentiated picture by promote a Vodafone life approach currently enjoy a differentiating benefit that, if browbeaten properly, can present a show the way in rivalry. The presence of Vodafone in several countries inside Europe as well as in all over the world enhances this image. It allows customers to travel and enjoy by far the services of their home country hand. It has established planned coalition to provide superior service to customer.

Opportunities:

The telecommunications marketplace, although highly drenched in some part of the world offers huge potential because of the mature population and the superiority of the consumers. It offers great opportunities through a careful market segmentation and abuse of meticulous gainful segment. Different strategies should be pursue ± simple phones and simplified pricing plans to the getting old population and more efficient, complicated solutions for younger generations. The increasing margins of the market could supply additional opportunities through allowing

Weaknesses:

Reliance Industries in March 2009 approved a scheme of amalgamation of its subsidiary Reliance Petroleum with the parent company. The all-share merger deal between the two Makes Amana group firms was valued at about Rs 8,500 core ($1.68 billion). This makes it India's 11th largest Mergers and Acquisitions transaction till date.

Impact

RPL shareholders to get 1 share of RIL for every 16 shares of

RPL

RIL's holding in RPL to be cancelled. No fresh treasury stock

created

RIL to be among top 10 private sector refining company globally

RIL to be among the world's largest producer of Ultra Clean Fuels

Merger to unlock greater efficiency from scale and synergies

Merger to be EPS accretive; AAA rating reaffirmed by CRISIL

RIL to have 3.7 million shareholder

Learning outcome 4: Understand how to evaluate the impact of change strategy

The change needed with the passage of time and it has different effect on organizations.

The most important thing is according to time change having it own importance. For example organizations introduce the changes in different ways and in different departments.

Impact of change on organization

There could be different impacts of changes on organization. Some of aspect of changes can be effect the organization negatively and some of aspects of change can effect positively.

Positive impact of changes

Increase the efficiency of organization

Increase the production

Increase the profitability

Increase in assets

Improve the management

Introduce the new technology

UN freeze is the most important stage to realize the change in the world now days. From this stage process of change is start. This stage is very important to understand that change is necessary and provide a plate form to move from current position to change. Unfreezing is a stage in which analyzes the all factors before you decide to take a step. The main purpose of Kurt Lewins theory of force field analyzes.

Change - or Transition

According to Kurt Lewin change s not an event but it is a process and he named it a transition. Transition is an internal pressure or struggle to provoke towards change in change process this stage comes when we change the status from previous that required. This stage influence us that change is beneficiary for us to take a step but this is looking so risky but when you made it you feel a lot of change in your personality also know about your self.

Freezing (or Refreezing)

According to Kurt Lewin's this stage is freezing but most of the people identify it as refreezing stage. This stage is about strengthening the change or stability after the change. The change is normally acceptable and introduces new norms and values. The people who accept the change become more comfortable with new norms. The main concern of this theory is make the change and make sure the desire result is producing also maintain the change in future. It is not happened the result could be change the situation then result would be more terrible. That's why Kurt Lewin's called it freezing to make sure the change is stable and will continue in future.

Conclusion

From the above discussion, we concluded that the mergers and acquisitions have emerged as a positive tool for the growth of the Banking sector as well as for the companies also. Most of the business firm having tough business competition inside the country and internationally ae well, due to globalization, modernization and change occur in technology . Merge ring the two firms or organization does not mean that they will work successfully because is not merger of two organization but also patch up of people of two organization with different culture, attitude and mentality. The merger of two firms or organization is not only analysis the financial aspects but also analyze the other aspects like culture , norms and other concern before the acquisition.

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