The Importance of Change Management in Organisations

Examination Thesis from the year 2011 in the subject Business economics - Business Management Corporate Governance grade: 78 % (10) University of Exeter (Business School) course: Change Management language: English abstract: 1. IntroductionThe process of globalization and the intensification of competition forces modern organizations to adapt themselves quickly and flexibly to changing market conditions. The concept of change by the change management is hence primarily implemented due to economic downturns economic growth issues political societial or technical general conditions or due to the fact that some organizations do not have sufficient internal strength to sustain its position (Lauer 2010).By virtue of the merger between the Daimler-Benz AG and the Chrysler Corporation in 1998 the newly created concern DaimlerChrysler tried to build new organizational structures for more efficient competitiveness to expand into new markets and to reinforce it's financial position hence taking advantage from a 2+2=5 effect (Cartwright and Cooper 1992). Both companies were trying to move from a coordination growth stage to a collaboration growth stage (Clarke 1994) by the establishment of one single operating entity which as we will see later on led to the failure of DaimlerChrysler during its Red Tape crisis (Greiner 1972). Goal of the change management was to implement a corporate transformation (Dunphy et al. 1993) by finding the best compromise for both companies in regard to the organizational structure culture firm philosophy operational processes as well as the integration of employees (Waller 2001).However in the course of time a strong antagonism and resistance to the merger arose in particular amongst former Chrysler employees. A study from IBM Global Business Services in 2008 shows that only 41% of all change projects achieve its goals while 44% only achieve partially the aspired aims and 15% don't lead to achievement or are abandon