Elektrolux :: essays research papers fc

The acquisition of different companies always indicates a change for both the acquiring and the acquired organisation and the people within. To successfully combine and integrate Elektrolux and Zanussi it is essential to consider both organisations ´ formal and informal structures which are heavily influenced by their culture. Culture develops on the one hand nationwide but also specifically in an organisation. Building up trust is important to develop a working informal network, which supports the formal structure. Thus positive influence is taken on the selected behaviour of people within what Breton and Wintrobe call “bureaucracies';. This behaviour is characteristically competitive, especially in such times of major change. This change should be managed step-by-step and is described by Quinn as logical incrementalism. It builds “the seeds of understanding, identity, and commitment into the very processes'; (Quinn, p145) and is the underlying strategy which makes integration successful. After Elektrolux announced the acquisition of Zanussi, both organisations and people within were confronted with many changes which created tensions or misfits that called for new visions.(Normann in Quinn, p99) As a first step, mission values and guiding principles of Zanussi were made public to the employees in the Mission Statement.(Exhibit 3 in Case Study, p914) From the bottom-up they should understand step-by-step in a learning process (Normann in Quinn, p99) what behaviour was generally expected and correct. Bennis and others (in Quinn, p101) also agree that “programs to achieve significant change must be phased and largely undertaken bottom up, but the legitimacy of alternatives must be affirmed by the support of key people at the top.'; Besides the new Mission Statement, education and training programmes were undertaken to diffuse the new philosophy and policy. Thus the rules for building up an effective network are made visible. This network supports the formal structure. Breton and Wintrobe also assume that “relationships between superiors and subordinates in bureaus are generally governed by exchange and trade and not by the giving of orders and directives.'; Exchange can only take place, if property rights are existing and are supported by “trust'; (Breton and Wintrobe, p4) Trust is essential for the functioning of networks and has to be built up incrementally. One effective way of building up trust is by making “symbolic moves'; (q,111). In addition to this, the “most important changes are often those which signal a change in attitude at the top of an organisation.'; (Riccardo and Cafiero in Quinn, p112).