XYZ and Aertex Companies’ Merger and Related Change

Leadership approaches

XYZ Corporation is undergoing an organizational change owing to its merger with Aertex, which is a giant communication company. XYZ has to change its organizational structure to ensure that it establishes an organizational structure, which accommodates employees from both companies. Besides, XYZ has to change its organizational structure from vertical to horizontal, which will incorporate all employees in the decision-making process (Dolly 2007, p.4). The Human Resource Manager of XYZ has been given the mandate and responsibility to ensure that all employees adopt the new organizational change and collaborate with the Aertex employees to form a cooperative team. The human resource manager uses leader-member relations to ensure a successful change in the organizational structure.

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This approach ensures the development of effective groups, which depend on the proper match between a leader’s styles of interaction with employees. Consequently, it depends on the degree to which the situation gives control and influence to the leader (Barraclough 2009, p.25). The human resource manager is a relationship oriented-leader and establishes a strong relationship with a small group of employees owing to time pressures. The manager trusts the in-group members that receive more attention and privileges compared to the out-group members. There are high interaction and high levels of trust between the manager and the in-group employees that result in higher satisfaction and productivity. The leader maintains a formal relationship with the members of the out-group and insists on task completion and productivity. The manager allows all members to function within limits that are defined by the superiors thus creating an employee-centered relationship (Northouse 2010, p 33). For example, the manager asks the employees to debate on how to maintain high levels of production amidst the organizational change in structure.

The manager uses the path-goal approach, which ensures that he assists employees in attaining their goals by providing the necessary direction and support. The approach ensures that the leader offers advice and direction with the prime aim of ensuring that employees’ goals are compatible with the overall objectives of the company (Dörffer 2011, p.66). The manager has to ensure that he clarifies the path to allow employees to achieve their work goals, which are in line with the objectives of the company (Wood 2006, p. 44). For example, the leader invites suggestions from employees on the best approach when making the organizational change in structure.

The manager expects contributions and suggestions from each member before he makes the final decision. It is important to note that both approaches were effective in the change process. This is because the manager and his team were able to make a successful transition or change in organizational structure while maintaining productivity and growth (Denton 2002, p. 33). The manager used the influence and trust of the in-group to push for the organizational change while maintaining a formal relationship with the out-group (Sadler 2003, p.61). Also, the manager used a participation and consulting approach to guide the employees and allow them to contribute to the change process. This gives the employees a sense of belongingness in the company and boosts their motivation resulting in positive change and growth.

The power and political issues of the change process

There were power and political issues that emerged during the organizational change process. It is important to identify the power bases of the Human Resource Manager and discuss how the manager utilized his power bases in the organizational change process. The leader uses his position and expertise as the human resource manager to get power and control over the employees and thus attain the objectives of the change process (Hardy 2009, p.14). The manager has the opportunity and mandate to control information that other employees do not access. Also, the manager has different ways of influencing the employees, which include reward, persuasion, knowledge, and coercion. The manager used coercive power since he is in a position to dismiss, suspend, or demote employees that go against the organizational change process.

The manager depended on a coercive power base, which depends on fear to attain the objectives of the change process. Though the manager has the power to dismiss and demote employees, he did not intimidate or use fear to ensure that the employees attain goals. Instead, the manager relied more on reward power compared to coercive power to ensure that the company had a smooth organizational change process. The employees were complying with the manager’s directives and instructions since it resulted in rewards and positive benefits (Hardy 2009, p.53). The manager was rewarding employees with promotions and the freedom to work as long as they meet the objectives and goals of the change process. The manager was relying on his legitimate power, which arises owing to his position in the hierarchy. His legitimate power allowed him to reward employees with promotions and better compensation owing to salary reviews.

This became a motivating factor for the employees who become more determined to achieve the change process objectives. It is important to note that the manager was using his expertise and access to information to gain power and manage the change process. The leader has many years of experience in management enabling him to gain skills and knowledge in the field. The manager insisted on reasoning by use facts and data to make rational decisions instead of using assertiveness or sanctions. He was friendly to the employees and used negotiations to ensure that employees attain the objectives of the change process. It is imperative to note that the manager was using politics, which is a subset of power to attain the change process (Hardy 2009, p.14).

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The manager was using influence to control the distribution of resources and lobby the superiors for more time and resources to attain the change process. He developed powerful allies within the organization and gained control over organizational resources. This is important in ensuring that there are enough resources required to have a smooth and effective change process. This is only possible using non-formal skills and abilities, which are not part of formal qualifications. Also, this is important in pushing for efforts that influence the goals, criteria, or processes that are important for the decision-making process ( Badham & Buchanan 2008, p. 71). The power of the manager was crucial in attaining the objectives of the change process.

There were conflicts, which occurred among members during the organizational change process owing to work and personal differences. The conflict management process is vital in ensuring that the change process is effective and attains its goals and objectives. The conflict occurred owing to a state of disagreement where parties differed in opinion and goals. Besides, there was conflict owing to personal differences resulting in a state of dislike or annoyance. This results in negative attitudes or emotions in either party towards each other. It is important to note that conflicts among employees can occur due to stress resulting from environmental and organizational factors (Eunson 2012, p.78). The conflict management process begins with conflict management awareness. It is important to acknowledge that conflicts are often more about relationships and differences between people.

These differences result in one party causing either psychological or physiological harm to the other party. The conflict management process articulates that it is important to focus on the conflict situation to determine what either party needs and what can realistically be obtained. People are judgmental about others, which may result in negative interactions and unpleasant behavior. Surprisingly, conflicts may occur due to non-verbal factors such as body language and mannerism. Also, it may occur due to verbal factors such as language and physical appearances or physical characteristics (Eunson 2012, p.18). Conflict may also occur due to other factors such as contact, identification, and friendship or intimacy. External factors such as social context, cultural setting, and physical environment affect the occurrence of conflict.

These factors affect and determine how to deal with conflict management. The conflict management process dictates that it is important to balance perspective about others and be aware of the influence. The manager responsible for the change process ensured the use of an effective and straightforward conflict management approach. First, the manager was keen on determining the root cause of conflict among the members. The main cause of the conflict was communication problems and varying degrees of dependency among members. Some members felt that the communication method of others was inappropriate and rude. Also, members felt that others were depending more on them resulting in bulk work and long hours in the office. These conflicts resulted in unhealthy competition among members and avoidance (Jeong 2009, p. 4). The manager insisted on effective conflict resolution methods, which included negotiations and the use of an arbitrator or mediator.

The manager encouraged group members to indulge in negotiations instead of confrontation or avoidance. The manager would hold group meetings and encourage members that feel offended by others to talk and find a solution to the conflict. The manager would encourage members to think positively about their colleges and delay negative evaluation. This had positive outcomes with increased group performance and improved quality of decisions (Jeong 2009, p. 77). The conflict management process resulted in creativity and innovation in the organizational change process. This resulted in improved group performance and attainment of the proposed organizational change in the organizational structure. Also, the conflict management process resulted in better understanding and performance among members (Avruch 2007, p. 19).

The role of the organization’s culture in the change process

XYZ Company has an organizational culture that supports the development and growth of the company when changing its structure. Also, the organizational culture played a primary role in the change process, which was effective and manageable. The company has an organizational culture built on teamwork, determination, and strict compliance with rules and instructions. The organization culture has been developed over years and allows the company to deal with its problems of external adaptation and internal integration. The elements of the company’s culture entail norms and organization values that are shared by most of its members (Schein 2010, p.22). The dominant culture of the company revolves around teamwork and determination. It is important to note that there is a subculture, which is common among the members of the team that is facing an organizational change. The subculture of the Human Resource Manager’s department develops to reflect a common problem or situation, which the team is facing.

This is critical to the change process since the employees can face the challenges and problems associated with the change process. The team faces time constraints in its endeavors and is comfortable working long hours to attain the organization’s objectives and goals. The strong culture positively influences the attitudes and behavior of the members and is a factor in the attainment of objectives. New members adopt the already existing culture of teamwork and determination, which results in shared norms and values among the group members. The department than by the rest of the organization’s members holds the sub-culture of the group more strongly (Schein 2010, p.52). This results in a culture of teamwork and determination that is critical in the overall performance of the company. The organizational culture of shared values and norms ensures and influences employees to work hard and smart in an effort o achieve the organization’s goals. The employees value hard work and see it as personally worthwhile owing to how good performers are treated.

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XYZ’s culture is an asset rather than a liability since it allows the organization to have a positive image. Individuals that join the department have a sense of belongingness to the team and work towards the attainment of its goals and objectives. The organization culture conveys a sense of identity, which facilitates the generation of commitment to something bigger than self-interest (Joanne 2002, p.71). It shapes the attitudes and behavior of employees thus fostering growth and development. It is important to note that a strong organizational culture is a strong determinant of the outside image of the company. The strong culture of the company is not a barrier to change in the organizational structure. It is important to note that the company relies on its culture to attain growth and make possible changes within its structure or management. The culture of the organization is a big contributor to the attainment of change within the organization and depends on the employees’ attitude. The organizational culture of the company works in favor of change and allows the smooth change and adoption of a new organizational structure (Witte1999, p. 22).


Conclusively, the paper outlines the change in the organizational structure of XYZ Company owing to its merger with Aertex. The manager applies a leader-member relation approach owing to its benefits and proper integration with the change event. This approach is recommendable owing to its cost-effectiveness and high productivity. The manager relies on a strong relationship with his members to attain the required change within the organization. The manager helps the employees in attaining the required change by providing the necessary direction and support (Hardy 2009, p.99). The approach is effective and allows the organization to attain a change in the event, which has limited time. It is important to note that the approach is compatible with the overall objectives of the company. The trust and influence of the in-group are important in the attainment of the change event.

The manager utilizes his power positively to ensure the success of the change event. He relies on his position to influence the outcome of the change process. The use of reward has a positive influence on the motivation and morale of the employees. The manager does not use coercion to threaten or intimidate employees since it negatively affects the change process (Eunson 2012, p.102). Also, the manager uses his expertise and knowledge in management matters to ensure an effective change in the organizational structure. It is important to note that the manager does not rely on politics since it may negatively affect the change process.

The manager ensured a positive conflict management process that resolved the conflicts arising within the organization. The conflict management process did not negatively affect the process since the manager was able to resolve it before it derails the change process (Denton 2002, p.71). The negotiation process is effective since the members that conflict can resolve their problems before it negatively affects the change process.

The organizational culture of the company has a positive influence on the entire change process. It is recommendable that the organization does not heavily rely on its organizational culture since it may hinder the change process. The organization has to rely on a positive culture since it affects the attitude and motivation of the employees. The group can alter the dominant organizational culture if it does not coincide with the objectives and goals of the change process (Witte1999, p. 12). The organizational culture has to match with the objectives of the change event. This is important in ensuring that the change process is effective and attainable.


Avruch, K 2007, Conflict Resolution for Managers and Leaders, John Wiley & Sons Publisher: New York

Badham D & Buchanan R, 2008, Power, Politics, and Organizational Change, Sage Publisher: New York.

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Barraclough, S 2009, Leadership, Heinemann Library Publisher: California.

Denton, J 2002, Organisational Learning and Effectiveness, Routledge Publisher: Boston.

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