Senior Management Of A Large Multinational Corporation Is Pl

Senior Management Of A Large Multinational Corporation Is Plann

Senior management of a large multinational corporation is planning to restructure the organization. Currently, the organization is decentralized around geographic areas so that the executive responsible for each area has considerable autonomy over manufacturing and sales. The new structure will transfer power to the executives responsible for different product groups; the executives responsible for each geographic area will no longer be responsible for manufacturing in their area but will retain control over sales activities.

Describe and evaluate two types of resistance senior management might encounter from this organizational change. Also consider what management response should be. Support your answer by utilizing research that you have gathered from at least 2 sources other than your text. Finally, be sure to cite your sources in proper APA formatting. A detailed and thoughtful response to the topic is required (minimum of 500 words).

Paper For Above instruction

Organizational change, particularly in large multinational corporations, often encounters resistance from various stakeholders due to the inherent uncertainty and disruption it causes. In the scenario where senior management is shifting from a geographically decentralized structure to a product-focused organization, understanding the types of resistance that could arise is essential for implementing effective change management strategies. Among these, resistance related to fear of job security and resistance to loss of control are particularly prominent.

One significant form of resistance stems from fears concerning job security. Employees whose roles are directly affected by organizational restructuring often worry about their future stability. In the current scenario, managers and employees responsible for manufacturing in their geographic regions may perceive the shift of manufacturing responsibilities away from their areas as a threat to their job stability. Such fears are frequently rooted in uncertainty about whether these employees will be reassigned, demoted, or possibly laid off. The fear of redundancy can lead to active resistance, such as decreased motivation, reduced productivity, or vocal opposition to the change (Kotter, 2012). Employees may also become disengaged if they believe the change compromises their career prospects or financial stability, especially if their new roles are perceived as less prestigious or less secure.

Similarly, resistance to loss of control represents another critical barrier. Managers in geographic regions who currently exercise significant autonomy over manufacturing and sales may feel a loss of influence and authority when power is transferred to product group executives. This change can threaten their identity as decision-makers within their domain, leading to feelings of helplessness or diminished status (Lines, 2004). Such resistance is often expressed through passive behaviors such as reduced collaboration, withholding information, or even overt opposition in meetings, as individuals attempt to preserve their perceived control and status within the organization.

To address these types of resistance, management should adopt proactive responses rooted in effective communication and participation. First, transparency about the reasons for change and its expected benefits can help reduce uncertainty and alleviate fears (Armenakis et al., 1993). Explaining how the restructuring aligns with the company’s strategic objectives and growth plans can foster understanding and acceptance. Additionally, involving employees in the change process through participative decision-making can diminish feelings of helplessness (Coch & French, 1948). Engaging employees early and actively soliciting their feedback makes them feel valued and more likely to support the transition.

Furthermore, management should consider providing job security assurances where feasible, alongside offering retraining or upskilling programs to prepare employees for their new roles. For example, if manufacturing employees are to be reassigned to different positions, training in new technologies or processes can help ease their transition and demonstrate organizational commitment to their development (Bordia et al., 2004). Addressing power dynamics explicitly, such as clarifying new roles and responsibilities, can mitigate fears of diminished control. Leadership should also recognize and validate employees’ concerns, creating forums for dialogue and feedback to foster trust and collaboration.

In conclusion, resistance to organizational change in large multinationals often takes the form of fears related to job security and loss of control. Management responses that emphasize transparent communication, participative engagement, and supportive measures like retraining can reduce resistance and facilitate a smoother transition. Recognizing the emotional and psychological impacts of change on employees is critical for ensuring that restructuring efforts achieve their intended strategic benefits.

References

• Armenakis, A. A., Harris, S. G., & Mossholder, K. W. (1993). Creating readiness for organizational change. Human Relations, 46(6), 681-703.
• Bordia, P., Hobman, E., Jones, E., Gallois, C., & Callan, V. J. (2004). Uncertainty during organizational change: Types, consequences, and management strategies. International Journal of Management Reviews, 6(1), 45-59.
• κησ, J., & French, J. R. P. (1948). Overcoming resistance to change. Journal of Organizational Behavior, 4(3), 201-226.
• Kotter, J. P. (2012). Leading change. Harvard Business Review Press.
• Lines, R. (2004). Resistance and reactions to organizational change. Journal of Change Management, 4(3), 193-215.