Organisational Change and Leadership: PURA-IT Software Division Report

This report examines the organizational change at PURA, a Brisbane-based engineering firm, which is spinning off its profitable software development division to form a new entity, PURA-IT. The report details the rationale behind this decision, driven by the software team's unique work practices and the need for greater independence to foster innovation. It outlines the process of presenting this change to the team, the outcomes of the meeting, and potential risks. The report suggests recommendations, including the need for updated technology and flexible office spaces, to ensure a smooth transition and continued success. The report also includes a letter to the CEO summarizing the key points and the expected positive impact of the change. The report emphasizes the importance of communication, team unity, and employee satisfaction throughout the transition process, referencing relevant literature on organizational change and leadership.

PROVIDE LEADERSHIP ACROSS THE ORGANISATION
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Executive Summary
Brisbane based engineering firm PURA is separating its most profitable sector, the software
development department into a completely new organisation due its unique work practises and
approaches. These approaches have led the department to its success but has also created some
friction between them and the other groups of the company. therefore the board has decided to
separate the department to avoid stagnation and ensure that the groups freedom to function
independently remains intact. the following report narrates the procedure by which such an
organisational change can be achieved smoothy amd with efficiency. it also identifies the risk
factors and suggests feasible solution that will ensure that PURA-IT retains its old efficient
functionality while innovating new ideas with the availability of more independence.
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Table of Contents
Review of the Case Study 4
Presenting the Organisational Change to the Team 5
Outcomes of the Meeting 6
Short Report on the Change 6
Summary of the Change 6
Groups Affected 7
Risk Management 7
Recommendations 7
References 8
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Review of the Case Study
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.
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Presenting the Organisational Change to the Team
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.
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Outcomes of the Meeting
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.
Short Report on the Change
Summary of the Change
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.
Groups Affected
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
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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.
Risk Management
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.
Recommendations
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.
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Letter to the CEO
The CEO
PURA Engineering Firm
Brisbane, Australia
Date:
Sir,
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
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
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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.
Thanking you
Yours Faithfully
9

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References
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development: Exploring possibilities for organisational change. Accounting, Auditing &
Accountability Journal, 27(2), 218-233. Retrieved from
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