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The Impact of Organizational Change, Structure and Leadership on Employee Turnover: a Case Study

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Submitted By rinsad
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Journal of Business Case Studies – January 2008

Volume 4, Number 1

The Impact Of Organizational Change, Structure And Leadership On Employee Turnover: A Case Study
Steven H. Appelbaum, Concordia University, Canada André Mitraud, MBA, Canada Jean-François Gailleur, MBA, Canada Marcello Iacovella, MBA, Canada Raffaele Gerbasi, MBA, Canada Victoria Ivanova, MBA, Canada

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

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