Employee Alignment in Strategic Change
An investigative report analysing alignment practices and advising TMT to adapt practise to strategic change
Introducing the company and the case
The analysis conducted in this report will focus on the company Inalfa, at the moment of this analysis the company holds an workforce of approximately 3000 employees. Inalfa is a family owned supplier of metal products. The company had originally been a producer of heaters for in-home use. As with the introduction of central heating in homes the market declined the company started to focus on car accessories. During the years the development of sunroof systems for cars was found to be a profitable business and over the years the company grew to be the third largest producer of sunroof systems. While the sunroof business exploded Inalfa also maintained its original operations in metal forming. The metal forming department had grown to be a successful supplier of parts to a variety of clients. It’s largest businesses focussed of the production of parts for the copier manufacturer Xerox and many car accessories as bumpers and door panels for different car brands. result two business units were designed to give home to all employees and activities. The Business Unit Sunroofs (BUS) and Business Unit Metal (BUM) were implemented to organizationally and financially separate the sunroof and metal activities. Both business units were still financially linked in the holding Inalfa Industries. Under this holding both BU’s were accounted for under the ownership of the family
Main effect on the work floor
The split brought about a large change in day-to-day activities on the work floor. The metal department has always been the main supplier of parts for the sunroof division. As the business units now were to operate individually this structure changed. Were formerly employees would be colleagues now they had become client and supplier of each other.
Acquisition by ABN Amro Capital The origination of the business units As the sunroof department grew to be more and more successful in its operations, revenues kept growing. The client base kept growing; as clients demanded to have a better insight of the operational efficiency of the sunroof division there came a demand increase transparency. Operations of Sunroofs and Metal needed to be clearly separated. In 1997 the first ideas originated to split the financial activities of both department through an organizational split between both departments. As a The success of the BUS kept steadily growing and opportunities for growth grew beyond extend of the capital of the family that was still in complete ownership of the company. In order to facilitate further growth the Inalfa Industries embarked on a search for an external investor. ABN Amro Capital was found and acquired a majority of the company ownership. At first the deal was focussed on the acquisition of the complete holding, eventually only the BUS was acquired. The holding and BUM remained family property.
The overall identity of Inalfa can be typified as the ‘Shared Meaning’ paradigm.The characteristics of the ‘Shared Meaning’ paradigm are; a high degree of centralization and formalization. This means that the communication structure is focusing on one central position in the organization. Thereby also the organizational structure is centralized because organizational structure and communication structure are mutual. With centralization there is also a high awareness among employees of who is in charge. Another characteristic of the ‘Shared Meaning’ paradigm is that the organization is capable to withstand or react on medium to high external turbulence, unlike the ‘Bureaucracy’ or ‘Accountability’ paradigms, whereby the organization is not able to react on high external turbulence. In the case of Inalfa every employee needs to communicate to his direct supervisor and the supervisor has...
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