The Impact Of Organizational Change, Structure And Leadership On Employee Turnover: A Case Study

Abstract

Purpose - To provide the management team at BTSA Ltd with a practical guideline in managing organizational change through a designated lead change agent.

Design/Methodology/approach - This guideline was developed by analyzing various organizational behaviour variables which included organizational structure, leadership and organizational culture. The objective of the case study is to provide a pragmatic approach to dealing with transformational change, particularly the role and responsibility of leadership.

Findings This case identifies a distinct correlation between each above stated variables and productivity/citizenship factors among employees. As a result of the takeover by an international conglomerate, BTSA Ltd was facing major changes and sustained a high level of employee turnover within the company, including the abrupt departure of their lead change agent. This resulted in a sharp decrease in TQM initiatives and major slowdown in R&D projects. The key findings have determined the core elements which explained the turnover issue and the impact of organizational change (for a small Canadian based firm acquired by a US conglomerate).

Originality/value - This case study is practical for mid-sized firms which are currently involved or will shortly be facing foreign control through a recent merger or acquisition. It provides management (of the acquired firm) with insight on the potential pitfalls involved in transformational changes and tools to mitigate a situation which can potentially lead to its downfall.