Analyzing Organizational Behavior: XYZ Energy Acquisition Case Study

This case study examines the organizational behavior issues that arose when Big Energy acquired XYZ Energy. The analysis focuses on the impact of the acquisition on employee values, behavior, and attitudes, highlighting the clash between the two companies' cultures and the resulting decline in employee morale. The study explores key concepts such as organizational culture, Schein's behavior model, and McGregor's Theory X and Y, as well as the importance of human resource management during acquisitions. It also provides recommendations for Big Energy to improve employee satisfaction and integrate the two companies successfully, emphasizing the importance of managerial strategies like the System Model, Collegial Model, and Supportive Model to foster a positive work environment and achieve organizational goals. The case study emphasizes the need for understanding and adapting to the acquired company's culture and employee needs to ensure a smooth transition and retain valuable employees. The study also highlights the failure of Big Energy to effectively manage the integration process, which led to employee demotivation and departures.

XYZ Energy 1
XYZ ENERGY
by Name
The Name of the Class (Course)
Professor (Tutor)
The Name of the School (University)
City, State
Date of Submission

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Introduction
Organizational Behavior
Organizational behavior is the study that explores and scrutinizes the structure of the
organization that has an impact on the behavior of staff within the organization (Glăveanu 2008).
Adhikari (2003) defines organizational behavior as the study that examines the behavior of a
person or group of persons within an organization. The study assists to examine and analyze the
emotions, attitudes towards work, job satisfaction, motivation of employees (Adhikari, 2003)
The acquisition of the larger company Big Energy to smaller company XYZ Energy caused
many issues. This study purposes to understand the impact of the acquisition by evaluating the
various issues faced by the staff pertaining values, behavior and attitude.
Values
Values are beliefs held and under one’s control. Values vary from one organization to another
and also from one individual to another. Values are the crucial foundation of every business
organization whether the organization is aware of it or not (Middleton 2002). A company’s
values are what is important to that company, what the company strives to accomplish every day.
In most cases, the values tend to revolve around how the company interacts with the customers
and employees. Through this interaction, the business is able to motivate or influence behavior
and highlight how each employee should approach the work ethos (Biswas 2009).
The two companies Big Energy and XYZ companies did not blend or complement between the
employees and supervisors that consequently impacted the interpersonal relationships and
ultimately influenced the managerial effectiveness. The assimilation of the organizations
severely affected the employees as their advancement and growth was at stake and therefore their
morale was at its lowest. Therefore, when Sally Johnson intervened seeking a solution by

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arguing to the senior management to reconsider their decision to integrate Big Energy, was
pointless because the employees had already started to leave. Big Energy management was
unable to effectively manage the integration process causing the employees of XYZ Energy to
resign yet they had contributed immensely to the growth of XYZ enabling it to reach where it
was today.
Organizational Culture
Organizational culture is another crucial aspect in the growth and expansion of an organization
(Schermerhorn et. al. 2000). The culture helps the managers and administrators of an
organization to determine who to employ by hiring a suitable person to fit well within the criteria
and standards in accordance with the organization policy (Ujjainia, n.d.). Culture will require the
employees new or old to fit into the ways and methods of the organization. The organization will
be looking at people with similar values and those who will fit in well to the environment of the
organization. For example, if the company’s core value revolves around particular religious
beliefs such as Muslim, it is highly unlikely that the organization will employ a Christian or
Indian in the organization.
Organizational behavior significantly depends on the organizational culture (Schermerhorn et. al.
2000). A corporate or organizational culture depends largely on the behavior of the organization.
XYZ Energy had a culture that can be matched with Schein’s behavior model that puts emphasis
on three main aspects of an organizational culture. The case study reveals that XYZ company
had its own culture which the staff had adapted. The management team seemed to work well
with staff members who outwardly showed their respect to them. The relationship between the
leaders and staff was more of democratic rather than autocratic. The employees contributions
were respected too and appreciated which can be depicted in the Schein’s behavior model.

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Models
According to Edgar Schein, an organization culture is created with time not within one day.
Employees undergo changes including adapting to the external environment and hurdles,
including solving issues. These experiences enable the employees to form practices that are
repeated day by day thus creating or forming the organization culture. The new employees also
adapt to the organization culture and work harmoniously without strain or stress (Robbins
2001). Schein believed that an organization culture had three levels.
Artifacts: this is the organizational characteristics that can be seen or identified easily such as
code of dress, mission and vision, office facilities and furniture and general behavior of
employees.
Values: these are stated values, the attitude and thought process of the employees (El-Katsha
2002). XYZ were experts and professional in their job. They had a competition value that was
based on merit but after the integration, the employees lost morale. McGregor’s Theory X and Y
in which McGregor’s describes X and Y as two extremes where X naturally dislike their job and
will take every opportunity to avoid it (Card et. al. 2011). Theory Y on the other hand according
to McGregor describes the motivation aspect of employees stating that employees can either
work efficiently or dislike work depending on the conditions found at the work place. Work
could either be a satisfaction or punishment source. After absorption and on seeing some
employees leave the organization, Big Energy should have investigated to determine whether the
XYZ employees were X kind of people or Y with regard to McGregor’s theory. Big Energy
should then put in place ways to amend the situation so that the employees’ morale would
improve.

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Assumed values: these are behaviors that cannot be measured, implanted yet make a difference
to the organization culture (Gordon 2003). Some facts and beliefs stay concealed but affect the
organization culture. The deep human aspects for example, females in an organization do not
believe in sitting in late while men would be comfortable with such an arrangement. The
organization may well understand such practices and follow them though not spelt out or
discussed openly but the employees understand them.
Human Resource
The essential factor of any organization is human resource because they constitute the inner
social system of the organization (Bottom and Kong 2010). The employees established the
organization and without them an organization would not exist. Through them the organization is
able to achieve its objectives. The human resource of an organization is a crucial factor that must
not be ignored. After the integration, things have taken a twist, and the employees of XYZ feel
demotivated. During acquisitions, cultures of both companies are blended to create an
environment that can either strengthen or destabilize an organization (Ajzen 2011). Big Energy
did not recognize the organization behavior of XYZ, or if they did, they did not care to blend
with their company’s. The two companies are struggling to identify the model of the two
companies, XYZ being most affected because the managers of Big Energy overlook their plight.
The behavioral patterns can deeply affect the overall performance of the organization if not
looked into earnestly. Big Energy should have brought positive influence to XYZ and assist the
employees of XYZ to adopt the behaviors of the Big Company so that they could feel embraced
into the new system thus working towards the betterment of the company’s future.
After some employees left the organization, Big Energy failed to look into the issue around their
exit and to listen to their sentiments in a bid to rectify the problem with the remaining

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employees. The management did not exercise their conceptual skills thus ignoring the various
models given by theorists on organizational behavior. In the acquisition, Big Energy only used
competitive advantage to earn more profits. It was more concerned with the speed at which the
company would be acquired than the quality of the acquisition. Thus, the process they used to
integrate XYZ did not acquire the operation processes and systems which ended in demotivating
the staff of the remaining organization.
Recommendations
Interdependence and organization of systems is essential for any organization to acquire
employee job satisfaction and higher profits (Bailey, 2007). Big Energy should enhance the
morale of the employees by using managerial strategies. After integration, the morale of XYZ
employees deteriorated, Big Energy should portray the correct behavior and high value system.
To achieve its goals, Big Energy should integrate the human resource with other resources to
enable it achieve its goals. Big Energy, did not pay attention to human resource but only looked
at the integration process. It should start by understanding the culture, structure and nature of
XYZ and then take appropriate decisions (Hargreaves 2011). Some models that Big Energy
should adopt in the integration process include:
System Model: this model core factor is trust and self-motivation thereafter assisting to improve
the performance and results of employees in an organization (Harms 2008). This model is ideal
in the acquisition because employees will not wait to be supervised. Rather, they will work with
zeal towards achieving the goals of the company.
Collegial Model: this model requires that employees and management work together
supportively and accomplish their goals (Buelens 2011). Team work is encouraged in this model

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as everyone is geared towards achieving the goal thence will have the will, responsibility and
energy towards work. Big Energy can adopt this Model.
Supportive Model: this model entirely depends on the managers or leaders who should support
the juniors to achieve their goals. For example, Big Energy managers should have supported the
XYZ remaining employees to perform better in their jobs.
Conclusion
The models outlined above will assist Big Energy to work towards a successful integration that
will encourage employees of XYZ to remain in the company and perform their duties better.
However, the challenge that will face Big Energy will be to choose the preferred model that will
best suit the situation at hand. The company needs to mingle with the employees, discern and
consider the best approach to adopt to attain best results (Hiriyappa 2009).

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