Photo AI
Home Gym Suppliers merged with Athletic Sports Company to improve profits - HSC - SSCE Business Studies - Question 24 - 2006 - Paper 1
Question 24
Home Gym Suppliers merged with Athletic Sports Company to improve profits. Home Gym Suppliers had been using classical-scientific theory while Athletic Sports Compan... show full transcript
Worked Solution & Example Answer:Home Gym Suppliers merged with Athletic Sports Company to improve profits - HSC - SSCE Business Studies - Question 24 - 2006 - Paper 1
Step 1
Describe political management theory.
Answer
Political management theory emphasizes the role of negotiation and bargaining among key stakeholders within an organization. This approach suggests that power dynamics and relationships between individuals or groups play a crucial role in decision-making processes. In this theory, managers act as negotiators who navigate the interests of various parties to facilitate cooperation and achieve organizational goals. It acknowledges that conflicts may arise and that effective management requires understanding and addressing these power imbalances.
Step 2
Explain a reason for resistance to change resulting from the merger of these two businesses.
Answer
A significant reason for resistance to change in the merger between Home Gym Suppliers and Athletic Sports Company is the cultural incompatibility between the two organizations. Employees from each company may have different values, norms, and expectations due to their distinct management philosophies. This cultural clash can lead to misunderstandings and a lack of trust, making employees resistant to adopting new practices and procedures post-merger. Additionally, uncertainties regarding financial implications and concerns about potential job losses may further fuel this resistance.