Effects of an Organization's Relocation (Term Paper Sample)

Effects of an Organization’s Relocation into an Open-plan Office Layout
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Executive Summary
As any business entity grows, it might be inevitable for it to relocate into a new geographical area, particularly into an open-paln office layout. However, such a move comes along with some challenges and benefits, both to the firm and its employees, specifically where their motivation and satisfaction , as well as performance may be affected negatively. Therefore, a firm must be extra vigilant when executing such a move, in order to maintain the motivation, satisfaction and performance of its employees; hence its overall performance.
Recently, the Business School announced that it will be relocating into an open-plan office layout in academic year 2016/17. Some of the of the potential benfits and hurdles that the Business School may face when implementing its decision , as well as their their effects on tis employees satisfaction, motivation, and performance are outlined in this report. However, if the Business School can follow the recommendations, then it can reap maximum benefits from its ambitious plan.
Effects of an Organization’s Relocation into an Open-plan Office Layout
As an organization grows, there comes a time when relocation into a totally new geographical area is inevitable. Some of the objectives behind relocation of an organization include cutting down on the operating costs, tapping into a new market, and to serve customers in a better way (Kolko, Neumark and Lefebvre-Hoang, 2007, p.6). This happens to be the case with the Business School, where it intends to relocate into an open-plan office in Headington, during academic year 2016/17. However, relocations particularly to open-plan office layouts can affect employees’ performance, motivation, communication and collaboration, as well as the organizational culture of the relocated departments.
Additionally, relocation not only affects the employees working life, but also their social and non-working life. Therefore, a better understanding of the effects of relocation on employees in general, is vital in order to effectively manage it while maintaining employees, performance, motivation, and satisfaction (Kolko, Neumark and Lefebvre-Hoang, 2007, p.6). This research paper reconnoiters what is in store for the Business School, and how it can effectively manage the situation, in order to ensure that its employees are motivated and satisfied, as well as they are able maintain their performance, if at all it will implement its decision to the latter.
Benefits of Relocation
To begin with, relocating to Headington will come along with some benefits, both to the Business School and its employees. First, the entire Business School fraternity, especially the employees will enjoy upgraded facilities at Headington. This is in consideration of the fact that one of the main objectives behind a business’s relocation is to access modern and upgraded facilities (Kolko, Neumark and Lefebvre-Hoang, 2007, p.6). Therefore, there is a very high probability that the Business School’s employees will get a golden chance of working in a totally new environment, but with upgraded and modern facilities. To a great extent, this will enable them to improve on their performance, which will be enhanced by the new and modern facilities at Headington.
Secondly, the employees will get to enjoy a better life at Headington due to access of entertainment and leisure facilities that will be available there. This is in view of the fact that a business entity, especially a school may relocate in order to ensure that its customers and employees get to enjoy quality life, when they access leisure and entertainment facilities such as gymnasiums and playing fields (Mitchellette, 2008, p.167). Therefore, it is highly possible that the business school employees will get an opportunity of enjoying a better and improved life due to accessibility of leisure and entertainment facilities. Consequently, they will get a chance to strike a balance between their work and leisure, leading to improved performance.
Thirdly, the Business School will be able to lower its operational costs and tap into new markets. Therefore, it will enjoy huge profits and a larger customer base. This is highly possible because another objective that may compel an organization to relocate is the desire of lowering the operational costs and tapping new markets (Mitchellette, 2008, p.168). As a result, the firm will be better positioned to keeping the employees motivated and satisfied, as it can use some of the savings resulting from the low operational costs and larger customer pool, to raise their remuneration. In this way, Business school’s employees will remain to be a motivated and a satisfied lot.
Challenges of Relocation
On the other hand, relocation of an organization also comes along with some negative consequences, especially to its employees that may lead to their poor performance. At first, due to relocation, some employees might be economically constrained in various ways, and this might affect their morale and performance. Relocating means that some employees will have to cover a longer geographical area in order to reach their work stations (Kolko, Neumark and Lefebvre-Hoang, 2007, p.8). As a result, such employees will be forced to dig deeper into their pockets, in order to cater for higher transport costs on a daily basis. Therefore, such employees will be constrained financially, especially if they had not been given enough time to prepare themselves.
On the other hand, some employees might be forced to completely relocate to new residential areas that they deem to be in a closer vicinity to their new working environment. It is common knowledge that relocating from one residential area to another will require such employees to pay for the transportation cost of their belongings. Additionally, in the new residential areas, the employees will have to brace themselves for a new cost of living, which in most cases might be higher than that in their former areas of residence (Kolko, Neumark and Lefebvre-Hoang, 2007, p.8).
As a result, the employees might be stressed; less satisfied and has a low morale, which will eventually affect their performance. However, the Business School’s management might be able to turn things around and keep its employees motivated and satisfied by taking care of the transportation costs of such employees who might be willing to relocate to new residential areas (Kolko, Neumark and Lefebvre-Hoang, 2007, p.8). Additionally, it can be providing free transportation of its employees, to and from work station, in order to win their loyalty of the, especially those who might be required to cover longer distances to reach their new working station.
Secondly, relocation might also affect the social life of employees’, especially those who might be forced to relocate to new residential areas. Such employees will be forced to leave behind their longtime dear friends, and the social life in their former communities, to go and start a totally new one all over again. The scenario is even worse for the employees with families and children who attend school, because they are forced to detach themselves from their former social life (Mitchellette, 2008, p.169).
As a result, such employees, as well as their family members are affected emotionally, and they may suffer a relocation trauma. However, the Business School’s management can mitigate such a situation, and ensure that its employees remain being productive, motivated and satisfied by allowing them to employ social networks such as Facebook and twitter to connect with their friends who they might be missing dearly, while on duty (Mitchellette, 2008, p.169).
Benefits of an Open-Plan Office Layout
On the other hand, the Business School’s decision of relocating into open-plan offices into a refurbished Building at Gipsy Lane will come along with some associated benefits. One pro of an open-plan office layout is that communication between employees, departments, work stations, employees and supervisors is made easier and faster due to lack of physical barriers (Ferreira, Erasmus, Groenewald, 2009, p.197). It is worth noting that physical barriers in most cases leads to time wastage, as employees are forced to constantly move from one place to another, knock doors or book appointments when they need to communicate, especially with their supervisors.
Consequently, the Business School’s employees in the open-plan offices will be able communicate much faster and in easier way. Additionally, when they are faced with difficult tasks, they will be able to quickly turn to each other for consultation and advice. As a result, the employees’ communication and collaboration might lead to the discovery of highly innovative solutions to challenges facing the organization (Ferreira, Erasmus, Groenewald, 2009, p.197). Ultimately, the enhanced communication and collaboration amongst the employees and the mangers will automatically lead to an improved performance of the organization.
The second benefit associated with open-plan office layouts is the fact that the employees are easier to manage because they are in a decentralized situation. As a result, the managers and supervisors will have a less difficult time when tracking down on the employees’ performance. Moreover, in case of emergencies the supervisors and managers can be able to react quickly and salvage the situation, unlike in closed office where the managers cannot be able to react quickly and offer their guidance (Boyce and Lake, 2006, p.10).
Additionally, the close contact between the mangers and the employees improves the much desired collaboration and communi...