Alegrio Disease Management Incorporated Essay

3782 words - 15 pages

The complexity of analyzing and assessing an organization is a tremendous task for an organization, especially with today’s advanced acquisitions and mergers, advances in technology, globalization and a global recession. Recessions can be good for immense industries like Multinationals (MNC’s) as they have the cash and capital to acquire more at an astonishing low price. However, industries can become so large that they end up bankrupting themselves because there become to many executives, employee’s, middle management, down to ancillary services that cannot keep up with the changes and this makes for a chaotic working environment and results in high turnover because of extreme stressful working conditions. Having a disproportionate executive branch resulting from the acquisitions and mergers can result in enormous amounts of money going out for their pay, benefits and bonuses, yet, no one received termination papers and a severance package to realign the executive branch because everyone was losing things through communication collapses. Communication collapses occur frequently after mergers as people do not knowing exactly what their current role is from previous role. Some executives may think that they are the executive in charge of a certain department because they were prior to the merger just to find out that they are not. However, no one told them their job status had changed or even if they had a job. Many missed examples of mistakes occur in a substantially larger company because of failure to execute initial change plans. There are many exchange partners and they may not know the goods and services that they are exchanging, uncertainty is low at the beginning. The transaction cost is low because they have many exchange partners in the beginning. However, when the exchange partners run into goods and services not met, uncertainty increases. This is the transaction cost theory, the organization wants to keep costs low internally and externally and when there are too many acquisitions and mergers and the executive chain is in disarray because of poor planning and too much too soon, companies can run into internal turmoil. Two of the main causes of this are not having excellent communication flow from departments and departments in chaos not attending to the profit margin closely enough. In situations as these, it is the responsibility of those working for the company to know why the company exists, they should understand the structure of the company, the operations, human resources, marketing, sales, research and development, specialization departments, division of labor, and how the company makes money or loses it. They should understand the company culture, organizational design, how do they acquire the competitive advantage, how do they handle diversity and what can diversity do for a company? They should know that the company requires everyone to promote efficiency, speed and innovation. Even though people claim that they know all...

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