Case Study: Tobias Tech And Koru International

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The report is written by Anne Nguyen – consultant of ProActive Consultancy commissioned by Elliot West – founder of Tobias Tech on November 1, 2015. The objective of the report is to locate and analyze problems of the upcoming merger between Tobias Tech and Koru International, and to seek potential and practical recommendations to ensure a smooth and successful merger.

Firstly, the insufficient communication between top managers and employees in two companies, which could be solved by using sufficient communication techniques such as group discussions and public forums. The second serious issue is the differences in organizational cultures and stages in product life cycles, it is recommended that a new organizational culture be established
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In other words, Nick Brown has successfully created “the grapevine” among Tobias Tech employees. The rumor emerged quickly as a response during the merger process, in which the workforce is uncertain about the upcoming changes in their jobs and is anxious to know the purpose of having a merger. Therefore, this explains why the grapevine flourished in Tobias Tech and later spread out to Koru International employees. In terms of the grapevine’s effects, Lorette (n.d.) stated that the grapevine is unstable and unreliable which can fuel anxiety, conflict and misunderstanding within …show more content…
This is shown through the fact that top management did not know about the containment plan until a dissatisfied employee came and talked to Charles. If the top managers had paid attention to information flow in the lower levels, they would have been able to clear out the rumor which would put the workforce at ease during such crucial turning point of both companies.

Upward communication can be improved through holding staff meetings, group discussions, surveys and workshops so that the staff could share their thoughts, worries and give feedback about the merger. By doing this, there will be great information flow from employees to top management. While the staff can verify the information they obtain and get opinions from their colleagues, the top management can take immediate actions towards any false information and ease the stress in the

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