The paper "Rebirth of Anchor Foods - an Australian Food Processing Company" is a perfect example of a business case study. In this case, we witness the rebirth of Anchor Foods an Australian food processing company. The company was losing market share before its takeover in 2002 by David Clapin which saw significant changes in corporate structure, management team and core business categories resulting in steady profit growth. Still, the company encountered major problems that call for Anchor Foods’ immediate intervention. It is concluded that the organisation should provide intrinsic incentives to the employees to promote constructive organisational culture and employee training on changes processes to promote positive change. Problem Identification and Analysis Based on the facts presented by the case study, a review of Anchor Foods’ behaviour before and after the takeover shows that the company encountered at least four major organisational behaviour problems based on: a) Resistance to change Anchor Foods encountered resistance to change after the takeover.
The employees became worried and uncertain about their future. High turnover was also noted among the old manager. Additionally, the employees resisted increased working hours from thirty-eight to forty each week to promote higher productivity.
These reflect Al Jerjawi (2011) findings that one of the unfavourable effects of mergers and takeovers on employee behaviours is that it potentially leads to uncertainty and insecurity among the employees. This perspective is based on Kurt Lewin’ s Life Space theory, which states that individuals are normally in a constant state with their environment and any change in the balance leads to resistance to change (Napier 2009). According to Ahmad et al. (2011), post-takeovers or – acquisitions bring organisational culture change that can cause traumatic experience for the organisational members, which generate resistance.
Saunders et al (2009) suggest that extreme organisational change such as turnovers or mergers can threaten some employees leading to high turnovers, poor performance and absenteeism to demonstrate resistance to change. b) Attachment to old Organisational culture The employees at Anchor Foods seem to be tied to the old organisational cultures. For instance, they appear determined to hold onto information as they used to do rather than share information as promoted in the new culture. They also seem determined to operate strictly within their roles as they used to.
This old culture prevents effective communication, creativity and innovation. Ahmad et al (2011) argue that since each organisation has own established cultures, members of the organisation may find it difficult to adjust to the new culture. The problems are seen through the lens of Organisational Culture Theory, which proposes that organisational problems can be understood based on the values, attitudes and beliefs of the organisational members. Essentially, culture provides a lens for interpreting how employees make sense of the change. Generation and Evaluation of Alternative Solutions From the above discussion, it is perceived that problems in organisational culture and resistance to change are the two critical issues that need Anchor Foods’ intervention. Solutions to the problem of organisation culture Effective communication between management and employees Ford and Ford (2010) opine that during the change process, it is critical that the top management maintains open communication with the employees.
This can be explained by the classical theory of organizational communication, which suggests that organisation communications are analogous to having a machine that can only produce a productive and effective organisation; depending with the level at which it is managed.