Workers are going to be laid off and this would affect the overall morale of workers as they would face job insecurity. Research shows that in change management, it is essential to keep the morale of workers high in order for the change management to be successful . Secondly, workforces in the two units are strongly competitive, and so there would be group forming and norming issues when they are brought together. Thirdly, the redundant workforces are cut, but that means workers will have to learn to pick up their slack and this could take some learning curve. Finally, there would be the usual issues of change management such as that of resistance and other barriers to change.
There are excesses in the workplace as duplication functions are carried out in the sites. Now in reducing the duplication by letting go of some workers, it will be necessary for the management to attempt to balance diversity . The management should not prejudice against race, gender sex or any elements of diversity and should retain employees purely based on merit and strategic functional necessity when reducing the workforce .
The organizational structure is presented below. The organizational structure is more flat rather than hierarchical and hence this would enable the management to have better control over the divisions and would also facilitate better communication flow in the process.
Current workplace trends as noted from the ABS site and in media reports indicate the presence of a labor force participation rate at 64.8 percent . In global trends, the economic recession pushed many industries to reconsider their labor, but skilled workforces still remain and hence the organization would not have a problem in recruiting.