Organizational Change Management

Running head: ORGANIZATIONAL CHANGE MANAGEMENT
ORGANIZATIONAL CHANGE MANAGEMENT
Name of the Student
Name of the University
Author Note

ORGANIZATIONAL CHANGE MANAGEMENT
1
Response to Part 1: Organizational strategy
The finance company, ACY Capital operates in Sydney but majority of the client base is
located in China. The company reflects a vertical hierarchical structure, which involves
instructing employees for managerial decisions. The company have strict policies of abiding
by the concept of authority. The authoritative strategy of ACY Capital restricted flexibility
and effective communication flow in the company. The financial scenario of the company
was negatively depleting with the decreasing customer base and stricter overseas policies of
money transfer. The rate of client base and revenue inflow is decreasing from the source
company. The company decided to acquire a Sydney based Australian company, ‘Synergy
Financial Markets’ as a response for the financial decline. The change management, which
best suits ACY Capital is McKinsey 7-S model, which, if implemented strategically, can
improve the financial conditions of the organization (Frankland et al. 2016).
The key drivers of change for the financial company, ACY Capital is:
External drivers
Customers- The depleting customer base in China, which was considered as the main source
of revenue for the company influenced the requirement for change in the organization.
Customer base was decreasing because of the inefficient hierarchical system in the
organization. The application of authoritative decision making, marked the lack of
communication flow and low employee involvement of the company. Changing business
environment and customer preferences in China marked the need for change management of
the financial company, ACY Capital.
Government- The changes the business environment of China and the stricter policy
implementation of transfer policy overseas in regards with the money transfer influenced the
need for change management in the organization.

ORGANIZATIONAL CHANGE MANAGEMENT
2
Business environment- The business environment of China changed with the application of
governmental policies and changing preferences of customers, which acted as an influence in
regards to the decision of change management in the financial organization, ACY Capital.
Internal drivers
Employee dissatisfaction- The lack of communication and gap between the managerial
decisions and employee involvement reflected the cause of employee dissatisfaction (Al-
Haddad and Kotnour 2015). Employee dissatisfaction was also based on the factor of
hierarchical structure of the company, which restricted the opinion of the employees. The
lack of communication among the interdepartmental system also marked the cause of
employee dissatisfaction.
Organizational system- The organizational culture of the financial organization, ACY Capital
was based on hierarchical culture. The culture restricted the involvement of employees in
organizational decision-making process (Hayes 2018).
Capabilities- The financial organization lacked the capability of developing flexibility,
employee satisfaction and integrating acquisition strategies (Radda, Majidadi and Akanno
2015). The incapability of developing employee involvement in relation to policy or system
structuring also marked the requirement of change management in the organization.
Financial resources- The financial resources of the organization started exhausting with the
decline in sales in China, which was considered as the base of revenue for the organization.
The declining financial resources of the organization influenced the requirement of change
management.