Change Management & Change Process (ISPAT merger and acquisition with Jindal Steel)

1. Introduction

“Organizational change is something that occurs throughout an organization’s life cycle and effects the entire organization rather than one part of it. Change is increasing because of number of forces including globalization led by rapidly advance technologies, environmental resources ,cultural diversity, and the economy; therefore the ability to recognize the need for change and implement change strategies effectively with in a proactive response to internal and external pressures is essential to organizational performance. Internal changes can include organizational structure, external changes involve government legislation and process and HR requirements, competitor movements and customer demand (Wood et al, 2010).”

ISPAT Industries Ltd is one of the fastest growing flat steel producer in India and mainly produce OEM quality steel products for Automobile and White good application with state of art technology ( most modern plant as compared to all other steel plant in India including TATA, SAIL and JINDAL) under the umbrella of young and dynamic executive directors working in Finance ,Marketing ,Supply chain and HRD ,managing group for a cluster of individual upward and downward steel plant that is owned by Mr. Mittal with total turnover of 3.5 million ton.

2. Background Information

Market factors pushed merger and acquisition in order to be more competitive in terms of both demand, supply and price competitiveness. The market needs for steel was homogeneous and they had both global and domestic customers and because of homogeneity of needs and brands were transferable. Economic factors were also favorable for M&A because of standardization of core products, both the company were able to enjoy economi...

... middle of paper ...

...lowers’ team and personal capabilities

Leadership according to ISPAT meant motivating staff, ‘As a managing director and chairman, my main responsibility is to inspire respect.’ According to Mr. Mittal, the quality had to match with innovation. He repeatedly stressed, ‘in order to achieve excel, employee must aim at perfection.’

ISPAT too believed in the positive Pygmalion effect towards his employee’s .He asked the question, if the workers or employees were being treated well, why were they discontented and suspect and hostile towards the company? According to ISPAT, the viewpoint of any successful labor policy depends upon making the employees feel what they wanted.

According to Mr. Mittal, in addition to good leadership, loyalty must be earned by both managers and employees. He promote rise to loyalty and yet he encourages his manager to make tough decisions.