Elektrolux

The acquisition of several companies constantly indicates a big change for both the purchasing and the acquired organisation plus the people within. To successfully combine and integrate Elektrolux and Zanussi it is essential to consider both organisations formal and informal set ups which are seriously influenced by their culture. Lifestyle develops on the other hand nationwide although also particularly in an business. Building up trust is important to formulate a working informal network, which will supports the formal framework. Thus confident influence is taken on the selected behavior of people inside what Breton and Wintrobe call “ bureaucracies';. This kind of behaviour is definitely characteristically competitive, especially in such times of major change.

This change should be managed step-by-step and is referred to by Quinn as reasonable incrementalism. That builds “ the seed products of understanding, identity, and commitment in to the very processes'; (Quinn, p145) and is the underlying strategy which makes integration successful.

After Elektrolux announced the acquisition of Zanussi, both organisations and people within were confronted with many adjustments which made tensions or misfits that called for new visions. (Normann in Quinn, p99)

As a first step, quest values and guiding principles of Zanussi were made public to the personnel in the Objective Statement. (Exhibit 3 just in case Study, p914) From the bottom-up they should figure out step-by-step within a learning process (Normann in Quinn, p99) what actions was generally expected and address. Bennis and more (in Quinn, p101) as well agree that “ applications to achieve significant change should be phased and largely taken on bottom up, but the legitimacy of alternatives must be established by the support of key people towards the top. '; Aside from the new Mission Statement, education and teaching programmes were undertaken to diffuse the brand new philosophy and policy.

Thus the rules to get building up an efficient network are produced visible. This kind of network facilitates the formal structure. Breton and Wintrobe also imagine “ human relationships between superiors and subordinates in bureaus are generally governed by exchange and trade and not by giving of orders and directions. ';

Exchange can easily take place, if perhaps property rights are existing and are maintained “ trust'; (Breton and Wintrobe, p4)

Trust is vital for the functioning of networks and must be piled up incrementally.

One effective means of building up trust is by producing “ emblematic moves'; (q, 111). In addition to this, the “ most important adjustments are often those which signal a change in frame of mind at the top of a great organisation. '; (Riccardo and Cafiero in Quinn, p112).

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