The Background
PURA, an engineering firm from Brisbane has decided to spin off its software development team, which is the most profitable part of the organization, and establish it as a standalone entity of business known as PURA-IT. The software development work unit has always had a separate work approaches and work practices that were different from the rest of the staff at PURA (Blanco-Portela, Benayas, Pertierra & Lozano, 2017). The board believes that these different work approaches like work sharing, flexible working environment and requirements and flexible work attires have led to the exceptional success of the unit. The boards decision to create an independent establishment for this department is expected to have a positive outcome on the department and the company as a whole. The the standalone entity will have more freedom for the staff to become more flexible and creative in their efforts to meet the clients need. It also helps reduce the friction that has been created between the rest of the PURA staff and the software development team as a result of the laters free flowing attitude. A separate entity will create a completely separate work environment that the current work unit can mold according to their own needs. Unlike the current situation were though the unit has a certain amount of independence they also are also restrained by the norms and working customs of the whole company (Domingues, Lozano, Ceulemans & Ramos, 2017). The separate establishment will ensure that there freedom of functionality. The new board has also reassured that the new entity will have the same members on the board as PURA so that the entity does not lose its importance. This will also have a positive impact on the overall productivity of the new organisation.
The Board has decided to create a separate spin off establishment for the company’s software development division which will e named a PURA-IT, as it is the most profitable segment of the whole organisation. This will ensure that the flexibility and freedom that this particular department currently enjoys will remain intact and find new and more innovative work approaches with its new found independence, for the ease of the department the leader of the team will remain the same but there will be separate administration. An existing senior manager from PURA will be appointed as the CEO of the new entity. This will ensure that new working body will not face any issues regarding the transition or any other administrative issues in the future (Georgalis, Samaratunge, Kimberley & Lu, 2015). The administrative body will also ensure the independence of the separate organisation. The board has sourced new premises which are one train station away from the main offices. The all services have been reorganised but the workspaces have not been fitted out yet as the board believes that team should have input on the creation of a new environment for work. All entitlements and accruals will be carried forward to the new entity but new contracts will be issued as the current workforce will be working in a entirely different company (Godemann, Bebbington, Herzig, & Moon, 2014). For this inconvenience, employees will be receiving a signing bonus of $1500 and and additional $4500 for remaining with the new organization for the entire 12 months of the new contract. The 12 month contract will also provide employees who may feel insecure about working for a significantly smaller company. The board wishes that current team remains intact but they are providing the employees with choice of either joining the new organisation or remaining with PURA by being redeployed to another department (McCall & Gray, 2014). The board expects an extensive feedback from the workforce in order set this new chain of events into motion.
The Board’s Decision: Benefits for Both Entities
Majority of the Software development is satisfied with the new organisational changes that have been proposed by the board. They are will to face the new challenges of working in a completely separate company rather than a separate department. They have shown initiative and as the department with all different set of work approaches and functionality is a closely knit group, discord was minimal (Grant, 2014). Few of the staff who showed signs of insecurity were quickly handled by there colleagues and made to understand the benefits of the new entity. The whole team has come to an agreement that they will shift to the new organisation but there are a few questions regarding the goals and objectives of the new entity. As PURA as a whole had a set of goals that were not specifically oriented towards the separate department but with the advent of the new company, the goals need to specified.
PURA has decided to create a separate organisation for its software development department which is the most profitable sector of the company. The department has few unusual approaches and practises of working like flexible working conditions and work environment requirements that have contributed to its success but this freedom has created a certain amount of friction between them and the rest of the organisation.
The new organisational entity will make sure that this freedom and flexibility will remain intact and provide the team with greater functionality (Pollack & Pollack, 2015). Though there is a risk of insecurity among the employees both from the new entity and the whole organisation, as other departments may feel that there needs are being overlooked and the board is giving more priority to this particular department and employees in the new entity may feel less secure about working in a much smaller organisation, the close knit nature of the organisation will ensure that such difficulties are overcome through an open door policy between the staff and the administration.
There can be no lack of communication between the two bodies during this transitional period. The new organisation needs to have its workforce united and thus projects that require the effort of the whole team needs to approach. Projects that will require dividing the staff into separate groups need to be avoided.
Since the new entity will be dedicated to software development the computers and other technological equipment need to upgraded to current specifications from the once that were being used in the old organization (Hottenrott, Rexhäuser, & Veugelers, 2016). Since the department has been flexible with its working approach the office space should be updated according to the need of the staff and complete independence should be given to them regarding this issue.
The purpose of this letter is to inform you of the organisational change that PURA is going through in a few months. The Board has decided to create a separate spin off establishment for the company’s software development division which will e named a PURA-IT, as it is the most profitable segment of the whole organisation. The software development work unit has always had a separate work approaches and work practices that were different from the rest of the staff at PURA. The board believes that these different work approaches like work sharing, flexible working environment and requirements and flexible work attires have led to the exceptional success of the unit
Administrative Changes and Upgrades
This will ensure that the flexibility and freedom that this particular department currently enjoys will remain intact and find new and more innovative work approaches with its new found independence, for the ease of the department the leader of the team will remain the same but there will be separate administration. The board expects an extensive feedback from the workforce in order set this new chain of events into motion. Majority of the Software development is satisfied with the new organisational changes that have been proposed by the board. They are will to face the new challenges of working in a completely separate company rather than a separate department. They have shown initiative and as the department with all different set of work approaches and functionality is a closely knit group, discord was minimal. The board wishes that current team remains intact but they are providing the employees with choice of either joining the new organisation or remaining with PURA by being redeployed to another department.
Since the new entity will be dedicated to software development the computers and other technological equipment need to upgraded to current specifications from the once that were being used in the old organization. Since the department has been flexible with its working approach the office space should be updated according to the need of the staff and complete independence should be given to them regarding this issue. the issue has been handle quite efficiently and the transitio is expected to go smoothly without any delays or hurdles.
References
Blanco-Portela, N., Benayas, J., Pertierra, L. R., & Lozano, R. (2017). Towards the integration of sustainability in Higher Education Institutions: A review of drivers of and barriers to organisational change and their comparison against those found of companies. Journal of Cleaner Production, 166, 563-578. Retrieved from https://www.researchgate.net/publication/318981320_Towards_the_integration_of_sustainability_in_Higher_Education_Institutions_A_review_of_drivers_of_and_barriers_to_organisational_change_and_comparison_against_those_found_of_companies
Domingues, A. R., Lozano, R., Ceulemans, K., & Ramos, T. B. (2017). Sustainability reporting in public sector organisations: Exploring the relation between the reporting process and organisational change management for sustainability. Journal of environmental management, 192, 292-301. Retrieved from https://iranarze.ir/wp-content/uploads/2018/02/8630-English-IranArze.pdf
Georgalis, J., Samaratunge, R., Kimberley, N., & Lu, Y. (2015). Change process characteristics and resistance to organisational change: The role of employee perceptions of justice. Australian Journal of Management, 40(1), 89-113. Retrieved from https://www.researchgate.net/profile/Ying_Lu27/publication/273496999_Change_process_characteristics_and_resistance_to_organisational_change_The_role_of_employee_perceptions_of_justice/links/55d682ae08aec156b9a86334.pdf
Godemann, J., Bebbington, J., Herzig, C., & Moon, J. (2014). Higher education and sustainable development: Exploring possibilities for organisational change. Accounting, Auditing & Accountability Journal, 27(2), 218-233. Retrieved from https://www.researchgate.net/profile/Jan_Bebbington/publication/259573757_Higher_Education_and_Sustainable_Development_Exploring_Possibilities_for_Organisational_Change/links/558bd53f08ae08a56ed1d543.pdf
Grant, A. M. (2014). The efficacy of executive coaching in times of organisational change. Journal of Change Management, 14(2), 258-280. Retrieved from https://www.tandfonline.com/doi/full/10.1080/14697017.2013.805159
Hottenrott, H., Rexhäuser, S., & Veugelers, R. (2016). Organisational change and the productivity effects of green technology adoption. Resource and Energy Economics, 43, 172-194. Retrieved from https://www.econstor.eu/bitstream/10419/125778/1/845568620.pdf
McCall, V., & Gray, C. (2014). Museums and the ‘new museology’: theory, practice and organisational change. Museum Management and Curatorship, 29(1), 19-35. Retrieved from https://dspace.stir.ac.uk/bitstream/1893/18383/1/Museums%20and%20the%20_New%20Museology_-%20Theory,%20Practice%20and%20Organizational%20Change%20-%20for%20STORRE.pdf
Pollack, J., & Pollack, R. (2015). Using Kotter’s eight stage process to manage an organisational change program: Presentation and practice. Systemic Practice and Action Research, 28(1), 51-66. Retrieved from https://www.researchgate.net/publication/298807527_Elucidating_the_relationship_between_Sustainability_Reporting_and_Organisational_Change_Management_for_Sustainability
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
