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• With the takeover of DMJSL, the organizational culture is going through a dramatic change. Implementing the change requires strong leadership skills, where DMJSL have decided to follow the Path-Goal Leadership model.

Path-Goal Leadership Theory

• Based in part on the expectancy theory of motivation, Path-Goal leadership theory was initially articulated by Robert House in the 170’s. The theory that a subordinate’s ability to perform certain work tasks in proportional to the amount of direction and clarification of the paths that lead to the goals of organization.

• This means that if an employee is given clearly articulated instructions and demonstration of what to do, then the chance the employee will succeed is greatly enhanced.

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• Path-goal theory argues that a subordinate’s motivation, satisfaction and performance are dependent on the leadership style chosen by their superior.

• Based upon Robert House’s theory, the two primary findings are that if a subordinate has a habitual job then a high level of initiating structure will result in a decrease in employee satisfaction.

• On the other hand, an employee has a highly ambiguous role with the organization then a high level of initiating structure by the leader, would lead to high levels of employee satisfaction.

• Therefore, according to this theory, the success of any organization is dependent on its leaders.

Communication Plan

• Communication means information being transmitted and being understood by other.

• Communication serves four major functions with the organization, which consist of Control, Motivation, Emotional Expression and Informational.

o In Control Function, organizations have the authority and formal guidelines that employees are required to follow.

o In Motivational Function, involves clarifying for employees what is to be done, how well they are doing and what needs to be improve.

o In Emotional Expression, it gives employees the ability of expression of emotions and fulfillment of social needs.

o Informational Function, where it provides the information that individuals and group need to make decisions by transmitting the data to identify and evaluate choices.

Employee Empowerment

• The merger has created a sense of low morale because the former DMJSL employees can no longer take the initiative to solve problems without the approval of upper management.

• This dis-empowerment has also cause lower self-esteem and morale, where they feel that their opinion does not matter.

• This matter is something that Mergers Inc. needs to resolve.

Performance Expectations.

• Re-establish performance goals and expectations in order to align them with Mergers Inc.

• Managers will meet with each employee to set personal performance goals.

• Management must clearly communicate to the employees that rewards are contingent on performance.

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