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Essay / Broadway Brokers - 1844
The current economic crisis has forced many organizations to restructure and downsize strategically. Broadway Brokers is not immune to these economic challenges and has faced competition from discount brokers and Internet brokerage services. Broadway Brokers' position as the largest market share has been compromised by its slow response to changing changes within the industry. Broadway Brokers staff had strong sales and interpersonal skills, but lacked knowledge of the high-tech skills that were flooding the market. Organizations' lack of adaptation to new technologies and their considerable overhead costs threatened their profitability. The organization was faced with the need to restructure, consolidate and lay off employees in order to remain competitive in the current financial environment. Rumors of impending office consolidations and staff layoffs had existed for some time. However, the CEO's comment in a Financial Times article confirmed these rumors. In fact, decisions had already been made by senior management to adopt a structural plan that would significantly reduce offices, close offices, and reduce the number of employees throughout the organization. Senior management was firmly committed to downsizing and consolidation and was now relying on its management staff to develop a plan to implement a transition. A dozen of the company's most respected managers – from assistant vice presidents to general managers – met to develop a plan for change (Jick & Peiperl 2003). In developing a transition plan, many concerns were presented to management staff for review. First, Broadway Brokers successfully grew and was no longer a potentially more flexible organization. Broadway Broker's management team faces the difficult task of downsizing and consolidating the business. organization. A thorough investigation into how to execute the proposed changes will need to take place before the organization can move forward. Change processes must be carried out in a way that demonstrates compassion and consideration to everyone involved. For change to be successful, the management team must understand and comprehend the psychological impact of the imposed change and how employees will respond. Most humans are afraid of change and do not accept it in a positive way. The road ahead will be difficult for the Broadway Broker's management team, however; with proper planning and understanding, positive change can support the future of the organization.