ADC812S - Advanced Organisational Development and Change - 1st Opp - Nov 2022


ADC812S - Advanced Organisational Development and Change - 1st Opp - Nov 2022



1 Page 1

▲back to top


nAm I BI A un IVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENTOF MANAGEMENT
QUALIFICATION: BACHELOR OF HUMAN RESOURCESMANAGEMENT HONOURS
COURSE CODE: ADC812S
COURSE NAME: ADVANCED ORGANISATION
DEVELOPMENT AND CHANGE
DATE: NOVEMBER 2022
DURATION: 3 HOURS
EXAMINER:
MODERATOR:
PAPER: 1ST OPPORTUNITY QUESTION PAPER
MARKS:100
Ms. Enzy Kaura & Mr O Sikopo
Dr S Amunkete
INSTRUCTIONS
1. Answer ALL the questions.
2. Write ciearly and neatly.
3. Number the answers clearly.
4. The paper consist of 4 pages including the cover page.

2 Page 2

▲back to top


3 Page 3

▲back to top


SECTION A
Question 1
The Sprint and Nextel Merger: The first two years
In August 2005, the telecom giants Sprint and Nextel announced plans to merge into
a single company called Sprint Nextel Corp. The merger combined Sprint's brand
awareness with Nextel's large federal market, giving the new company a vast portfolio
of customers while opening up a host of new business opportunities. While the
merger's financial/legal side was straightforward, the task of combining the two
companies into one could not have been more difficult. The two telecoms differed on
almost every dimension. Sprint's culture was traditional and bureaucratic; Nextel's was
entrepreneurial and flexible. The firms had different networks, products, technologies,
and processes; their human resources infrastructures and practices were completely
different, as were their ages, business cycles, and customer bases.
From the start, executives at Sprint Nextel knew that the human element would be
crucial to merger success. Employees at both firms were highly talented, experienced,
and motivated, and it was imperative that they remain with the merged firm and
become committed to its success. To make this happen, Sprint Nextel's HR group took
the early lead in implementing the merger. It was charged with taking a systemic look
at the legacy companies to identify their best practices and to develop what would be
best for employees in the merged firm. Equally important, HR needed to ensure that
employees received timely and accurate information about the merger, especially what
changes to expect and how they would affect their work lives.
HR worked closely with corporate communications on the pre-merger announcement
and initial communications program. It started with an inspiring webcast shown to all
employees featuring the CEOs of both firms. This was followed quickly by scheduled
road shows at which executives visited the opposite firm's facilities to meet employees,
discuss the merger, and answer questions. This personal communication was
supplemented with periodic newsletters, webcasts, and online information updating
employees on the merger's progress. Sprint Nextel's intranet included a "rumor mill"
icon where employees could get correct information on questions related to the
merger. The goal of all of this communication was to present a consistent message
about the merger that was up-to-date, accurate, and addressed employees' major
concerns.
An initial worry, for example, concerned the location of the new firm's corporate
headquarters. Nextel was headquartered in Reston, Virginia, and Sprint in Overland
Park, Kansas. Executives and staff at the two locations were concerned about where
the new head office would be located and whether they would need to endure the
hardship of having to move to a new locality. To quell rumors and reduce disruptions
to employees' lives, Sprint Nextel quickly announced that it would retain both company
headquarters, with executive headquarters being located in Reston and operational
headquarters in Overland Park. Only 78 employees wound up having to relocate.
Another concern had to do with the inevitable workforce reductions that follow major
mergers. Because Sprint and Nextel operated in the same industry, duplications and
redundancies in jobs were common when the two firms merged, especially when their
legacy systems and procedures were integrated during implementation. With HR's
lead, reductions were handled with a good deal of personal care and respect to those
2

4 Page 4

▲back to top


5 Page 5

▲back to top


leaving the firm, roughly 5,000 out of about 65,000 employees in the merger's first two
years. Separation packages and severance benefits were fair and generous, resulting
in many people voluntarily taking them. Those who chose to leave, for instance,
received severance pay based on criteria existing either just before the merger date
or at the time of termination, whichever resulted in the highest pay out. To assess the
merger's progress, HR periodically surveyed employees and fed that information back
to executives so they could take corrective actions. During the merger's first two years,
data showed high ratings for management quality and employee engagement in work.
Scores for employee commitment to the new firm and intent to stay were lower,
however, suggesting the need to address and resolve those issues. In commenting on
the how well the new firm was developing its own cultural identity, Sandra Price, the
head of HR, suggested an informal indicator of merger development: how often she
heard the word "legacy" connected to the employees of the former firms. Price
reported that "sometime between the 12th and 15th months, I began hearing that word
less," and now at the two year mark, "I seldom hear it anymore [as applied to
employees]."
Questions
1.1 Why did this companies merge?
(5)
1.2 What were the real problems that both companies had to attend to?
(5)
1.3 In your opinion, was this merger a success? Please motivate
(5x2=10)
1.4 Discuss the importance of effective communication in mergers and
acquisitions.
(10)
SECTION B
Question 2
2.1 There are various departments and sub-units that work together to achieve
organisation effectiveness and success. Rapid changes in the business world
are forcing organisations to restructure these departments and sub-units in
order to become more flexible in adapting to these changes. There are different
types of structural designs that organisations can adopt for specific
environmental situations. With that in mind, differentiate between a network and
process-based structures.
(5x2=10)
2.2 Organisations are challenged with employees who are not working together
effectively as team members. As an OD consultant, identify the intervention that
you will recommend to improve relationships between these groups. (16)
2.3 Transformational change is an emerging part of organization development, and
there is some confusion about their meaning and definitions. Distinguish
between the two.
(5x2=10)
3

6 Page 6

▲back to top


__",_"l,9i,/i_sl~"11)

7 Page 7

▲back to top


2.4 "I am stressed out", this is a common phrase used by most people. Every other
person you meet is either stressed out or has been in the past. As an OD
consultant, how will ensure that stress is alleviated in an organisation?
(10x2=10)
2.5 Research suggests that employees' progress through at least four distinct
career stages as they mature and gain experience. Discuss the stages in detail.
(12)
2.6 Explain the process of conducting performance appraisals.
(12)
4

8 Page 8

▲back to top