Change Management and Communication Plan
Team
MGT/311 – Organizational Development
March 2013

Change Management and Communication Plan
Power Structures The organizational charts reveal that Riordan Manufacturing operates on a departmentalization structure. Grouping of positions by departments and job titles is considered as a division of specialization. The chart also details the lines of authority and responsibility and outlined with a formal power structure system. Employees can easily recognize formal power within the company because of job roles, titles, and interdepartmental relationships from top to bottom. Formal power “is based on an individual’s position in an organization, and it can come from the ability to coerce or reward, or from formal authority” (Robbins & Judge, 2011, p. 421). Riordan has established formal top to bottom communication channels. For example, the vice president of sales makes decisions concerning revenue. Informal communication can leave employees frustrated as decision-making power can come from any employee possibly leading to inaccurate information. The current information at Riordan is consistent with legitimate political behavior, as Riordan’s normal politics is figuring out what lies within the formal and informal rules. Management is concerned with political behavior in the company and encourages open communication that goes along with their power tactics. Because political power is the ability to control the behavior of others to attain the objective of the organization, Riordan uses the reward system as the means of recognizing and reconciling competing interests within the organization. These rewards influence the behavior of employees as they help to control financial and non-financial incentives. Employees receiving a financial reward will engage in excellent leadership to achieve