ABSTRACT

In this chapter we consider the challenges of bringing about major change using organisation design. Innumerable articles refer to the high failure rate of change initiatives and here we consider some of the possible risk factors and what HR can do about them. We start by looking at conventional organisation design, which itself is undergoing transformation as we shall discuss in the next few chapters. We shall also look as mergers and acquisitions (M & As), a key area where change management is needed. M&As are typically embarked upon to save costs and acquire valuable assets yet a study of the financial benefits of mergers and acquisitions by Hall and Norburn (1987) found that returns to shareholders are at best ‘slight’ and at worst ‘significantly negative’. To be successful in their aims M&As must be managed in a way that gets the ‘people bits’ right. We shall cover:

What is Organisation Design?

Designing organisations

Mergers and acquisitions: getting the ‘people bits’ right