Elektrolux The Acquisition And Integration Of Zanussi
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)
▪ Breton and Wintrobe, The Logic of Bureaucratic Conduct To communicate these changes, Mr. Rossignolo was seen as the perfect change agent, because he is Italian and knows the Swedish organisation culture. But he also had to build up trust with the Italians, who considered him closer to Sweden than Italy. In respond to this attitude, an external consultant was brought in. As Mr. Estes says, "you don´t try to ram your conclusions down people's throats. You try to persuade people what has to be done and provide confidence and leadership for them."(Quinn, p136) By this Mr. Rossignolo set a sign that he does not want to take one party's side, but that he is neutral and therefore he increased the Italian´s trust in his person. Being accustomed to an authoritarian style, the Italians had to adopt Elektrolux´ democratic and decentralised decision making policy. The lower management appreciated the new possibilities of promotion and therefore demanded higher involvement. They are like the top-management at the end of the organisational hierarchy and can only gain influence. The top-management, naturally to their competition for control, appreciated that they had not "a single Swedish manager imposed on top." Whereas the middle management feared the loss of control over their subordinates and property rights.
Some common words found in the essay are:
Breton Wintrobe, According Swedish, Leif Johannsson, Elektolux Zanussi, Openness Elektrolux, Sweden Italy, Cafiero Quinn, Elektrolux Zanussi, Swedish Italian, Conflicts Italian's, middle management, breton wintrobe, formal structure, network supports, task forces, building trust, network supports formal, supports formal structure, supports formal, trust unions, gained trust unions, swedish ethic, breton wintrobe call, lower levels, style top management,
Approximate Word count = 2069
Approximate Pages = 8 (250 words per page double spaced)
|
