Organization-wide interventions: A case study of New Oriental & Technology Group


1.0 Introduction 4

2.0 Company information 4

2.1 Company background 4

2.2 Problem diagnosis 6

2.2.1 The Star model 6

2.2.2 Performance diagnosis on New Oriental 8

2.2.4 Problems 13

3.0 Downsizing issue 14

3.1 Definition of downsizing 14

3.2 Needs for downsizing in New Oriental 14

3.3 Risks of downsizing 17

3.3.1 Legal risks 17

3.3. 2 Influence on productivity 17

3.3.3 Influence on reputation 18

3.4 Measures to manage risks 19

4.0 Organization- wide interventions 21

4.1 Intervention strategy 21

4.1.1 Attrition and advantages 21

4.1.2 Furloughs and advantages 21

4.1.3 Negotiated retirements and advantages 22

4.1.4 Unpaid vocation and advantages 22

4.2 Disadvantages 23

4.3 Considering alternatives 24

4.3.1 Eliminating layers 24

4.3.2 Merging units 25

4.3.3 Redesigning tasks 25

5.0 Political issues 26

5.1 Theory 26

5.1.1 Definition 26

5.1.2 Reasons 28

5.2 Political issues 28

5.2.1 Sabotaging 29

5.2.2 High job hopping rate 29

5.2.3 Exposure of confidential information 30

5.2.4 Inside conflicts 30

5.3 Solutions 30

6.0 Conclusion 32

7.0 Reference 33


Figure 1.0 The star model………………………………………………………………7

Figure 2.0 corporate structure of New Oriental Education & Technology Group…….9

Figure 3.0 Maslow’s hierarchy of needs………………………………………..…….18

Figure 4.0 The level of organizational politics in different level of employees……27

1.0 Introduction

In this case study, New Oriental & Technology Group is the target organization for us to exam as the external change consultant. Four major issues are examined in the case including key characteristics, downsizing, organization wide interventions and political issues.

Under the analysis, we expect the present problems of New Oriental Group will be solved successfully.

2.0 Company information

2.1 Company background

According to the research from Yu and Li (2003), Galbraith (2002), New Oriental is the largest chain language training school in China, which is founded in 1993 by Mr. Yu Minghong. And ever since the founding of New Oriental & Technology Group, this language training school has gained greater and greater popularity in Chinese training training market. For instance, until the end of 2011, New Oriental & Technology Group has already attracted millions of students successfully all China around with the assistance of language instructors and other staffs in different departments from New Oriental & Technology Group (New Oriental Education & Technology Group Inc. 2011). And the corporate vision of New Oriental & Technology Group is to offer Chinese language learners with the outstanding benefits and competitiveness in their workplaces or schools with the improved foreign languages ability via these language training courses and assistances from New Oriental & Technology Group (Yu 2009).

Just as its founder MR. Yu describes the corporate and business philosophy of New Oriental & Technology Group is to combine innovation and humor in teaching practices supported by interactive teaching manners and traditional Chinese essences in teachings (Yu 2009).

In New Oriental & Technology Group, its core products are educational services mostly related to language issue (New Oriental Education & Technology Group Inc. 2011). At first, for the customers of primary foreign language level especially English language among all the age range, New Oriental & Technology Group provide customers with programs such as pop English program for kids, summer camp for intensive langue trainings and English salon every week to meet different needs of the beginners in foreign language learning, especially students customers (New Oriental Education & Technology Group Inc. 2011).

Secondly, towards language learners with medium level, New Oriental & Technology Group offers them with attractive and practical training services to keep pace with international requirements and domestic requirement such as trainings focusing on exams of CET 4, CET 6 and TEM 4 required by Chinese higher education ministry, exams of IELTS, TOEFL or BEC required by oversea colleges or universities as the primary requirement for Chinese to study aboard. And a set of trainings programs focusing on improvement of the actual foreign language ability for Chinese foreign language learners are also offered by New Oriental & Technology Group such as every day English, business English, oral English and so on (New Oriental Education & Technology Group Inc. 2011).

2.2 Problem diagnosis

2.2.1 The Star model

Jay Galbraith argues the five important components of an organization are in the alignment, and then this organization may be work at its most effective manner (Galbraith 2002). And in this model the five elements are people practices, reward systems, process and lateral capability, structure and strategy, which are described in figure 1.0.

At first, strategy works as the corner stone, which assist corporate to define it vision, working direction and competitive advantage (Galbraith 2002). Secondly, the structure element in the star model works as the basis of formal authority relationships and activity groups, which is often represented by the organizational chart (Galbraith 2002). Thirdly, process and lateral capability in this model often represents the networks, processes, teams, integrative character as well as matrix structures in the organization (Galbraith 2002). Fourthly, reward systems refers to the organizational goals, scorecards and metrics values, behaviors compensation and rewards, which is aimed to pursue the alignment of individual actions with the organizational objectives to ensure people in the organization to be able to practise these human resources practices such as selection, training and development, performance management and so on in the combination manner (Galbraith 2002). At last, people practices refers to the issues such as staffing and selection, performance feedback as well as learning and development in an organization to ensure the right performance of both individual employees and management (Galbraith 2002).

Figure 1.0 The star model

figure 1.0


Source: Galbraith, J. 2002, Designing dynamic organizations, Amacon, n.p.,

2.2.2 Performance diagnosis on New Oriental

As the excellence of the star model to help organizations such as New Oriental & Technology Group to diagnose its problems in these important aspects such as strategy issue, structure issue, process and lateral lateral capability, reward systems and people practices, the performances and practices of New Oriental & Technology Group will be diagnose to find out the problems of this organization in China (New Oriental Education & Technology Group Inc. 2011). Strategy issue

The first strategy adopted by New Oriental & Technology Group is the fast expansion strategy, which is based on the large amount of investment to reach the aim of fast expansion in China (New Oriental Education & Technology Group Inc. 2011) . That is to say, New Oriental & Technology Group makes use of the great sum of investment to realize the dream to open more and more chain foreign language training school in China.

The second strategy of New Oriental Education & Technology Group is to extend its departments to meet the needs of fast expansion in foreign language training industry of China (New Oriental Education & Technology Group Inc. 2011). For example, the departments such as Paopao English department for kids, secondary education department for middle and high school students and elite English department are these examples of the extension department of New Oriental Education & Technology Group (New Oriental Education & Technology Group Inc. 2011). Structure issue

Figure 2.0 is the corporate structure of New Oriental Education & Technology Group at the current time, which shows the big and large organizational body of this organization especially the mid managerial level department or sections as we mark in figure 2.0.

Figure 2.0 corporate structure of New Oriental Education & Technology Group

Mid level managerial


Source: New Oriental Education & Technology Group Inc. 2011, Annual and transition report, New Oriental Education & Technology Group Inc., Beijing,

From the organizational structure of New Oriental Education & Technology Group, it reflects that the decision making power of this organization is decentralized to each sections, especially the medium level managerial sections. While the responsibility distribution for each section in New Oriental Education & Technology Group is independent respectively. Moreover, supervision from shareholders of New Oriental Education & Technology Group is seemed only towards the two sections including Beijing Hewstone technology section and Beijing decision education & consulting section rather than the entire sections of New Oriental Education & Technology Group. Process and lateral capability issue

The first point of New Oriental Education & Technology Group’s issue in process and lateral capability point is its fast developing and extended network all over China. For example, till the end of 2011, the business network of New Oriental Education & Technology Group was extended to 42 cities of China which is the twice of the result in 2009 (New Oriental Education & Technology Group Inc. 2011).

For example, besides the investment of language training center, New Oriental Education & Technology Group has also invest a lot to built up the secondary education schools such as Yangzhou foreign language middle school, which requires for a large sum of capital investment from New Oriental Education & Technology Group. And according to the survey from its annual report , the gross profit of this school is from 200,000 in 2004 to – 18,660,000 in 2009, which shows the great pressure for New Oriental Education & Technology Group to manage the entity school rather than the training schools in China compared to those strong competitors of middle level education operators. (New Oriental Education & Technology Group Inc. 2011) Reward systems

In New Oriental Education & Technology Group, the teaching groups are divided into two groups such as full time teachers and part time teachers to represent New Oriental Education & Technology Group to deliver customers with educational services (New Oriental Education & Technology Group Inc. 2011).

The responsibility of full time teachers is to provide instructions and management assistance or other functions in New Oriental Education & Technology Group, whose compensation and benefits are based on the hourly rates, bonus related to performance due to students feedbacks, the basic salary, annual dividends and other kinds of employee benefits related to their teaching performance. While for part time teachers, the salary is based on their hourly rate and teaching performance. (New Oriental Education & Technology Group Inc. 2011)

Moreover, besides the above compensation system in New Oriental Education & Technology Group, New Oriental Education & Technology Group has designed and implemented attractive reward systems to attract and retain teaching talents including incentives of equity which offers teachers in New Oriental Education & Technology Group with shares and share options, attractive bonuses based on teaching performance, nonfinancial compensations such as security and health benefits, pensions, holiday with payment and other kinds of attractive incentives. (New Oriental Education & Technology Group Inc. 2011) People and practices issue

According to the annual report of New Oriental group, in its issue of people practice management, it mainly focuses on the financial incentives to promote employees’’ performance. And in the employee selection aspect, it insists strict recruitment strategy including primary job interview, written examination to check the written ability of candidates in their applied language teaching position, teaching presentation examination and final test, which shows the strict and professional talent selection strategy in New Oriental Group (New Oriental Education & Technology Group Inc. 2011). While in the employee training and development aspect, it is lacking in focus on this issue. For example, when candidates finally survive from the interview process, they are relatively free and are offered almost no regular training and development programs to improve their performance.

2.2.4 Problems

At first, the fast expansion strategy lays great financial pressures for the management New Oriental Education & Technology Group which even hinder the investment of this group on its employee training and development. And it also hinders the further and healthy development of this organization to meet the fierce competition.

Secondly, the middle level managerial sections of New Oriental are seemed too fat for it to manage well, which also results in the great financial pressure.

Thirdly, the number of full time teachers in New Oriental Education & Technology Group is obviously larger than part time teachers, which indicates more investments on the salary and compensations of New Oriental Education & Technology Group.

3.0 Downsizing issue

3.1 Definition of downsizing

According to Owodunni (2007), downsizing is one of the popular means to reduce the size and cost of operation in an organization which often rely on direct reduction of the total number of employees under the situation that the market for a certain kind of industry is tight, it is possible and reasonable for organizations to adopt downsizing to fight for survival in such kind of hostile atmosphere to compete with other strong competitors in the same industry or sector. While for employees, downsizing often results in unnerving and upset situation.

3.2 Needs for downsizing in New Oriental



According to Cascio and Wynn (2004), downsizing is regarded as a necessity under special circumstance. In New Oriental Education & Technology Group, there are several reasons for it to engage in downsizing.



At first, we have found out the problems existing in New Oriental Education & Technology Group including great financial press and improper training design caused by over fast expansion, fat body of middle management, high salary cost due large number of full time teachers than part time teachers. We believe downsizing may enable New Oriental Education & Technology Group to work more efficiently. For example, those middle management level sections in New Oriental Education & Technology Group such as Shanghai Smart Words Software Technology Section, Beijing Pioneer Technology section, Beijing Judgment Education & Consulting section, Beijing Hewstone Technology section and Beijing Decision Education & Consulting section can be downsized to a small body (New Oriental Education & Technology Group Inc. 2011). More detailed speaking, New Oriental Education & Technology Group is recommended to merger these Beijing bureaus which work under the same objectives and have the same function together such as Beijing Pioneer Technology section and Beijing Hewstone Technology section, Beijing Judgment Education & Consulting section and Beijing Decision Education & Consulting section. To downsize the middle management body of New Oriental may enable it to save operating cost and improve the working effectiveness (Cascio and Wynn 2004).



Secondly, New Oriental Group is also necessary and reasonable to sack some full time teachers to save costs in salary and use the kind of crisis awareness to improve the performance and productivity of employees especially teaching staffs. In fact, as we mentioned above the failure of Yangzhou foreign language middle school is partly from the inadequate performance of the employees and their managers in this school. This kind of example requires New Oriental Organization to conclude the fact some some employees in New Oriental Groups are unnecessary or they can even be blamed for the failures of some performance. And therefore, this kind of employees is expendable for New Oriental Group (Robinson & Carmen n. d.).



Thirdly, engagement in downsizing may also create psychological advantages for New Oriental Group according to the research from Robinson and Carmen (n. d.). In their researching many employees are seeking new skills and knowledge for their jobs positively than their previous performance to hope they will be indispensable to their organizations, which create positive benefits for organizations. For New Oriental Group, it is lacking in training and developing programs and designs for their formal employees. If this organization engages in downsizing, many formal employees may feel the danger and work more positive and hard to avoid being sacked.



In essence, downsizing is advantage for the economy of the organization (Robinson and Carmen n. d.). For example, Robinson and Carmen (n. d.) believe downsizing is perceived to be beneficial for the value of investments including increasing of stock price. Referring to the situation of New Oriental Group, downsizing may create benefits at least short term benefits for this organization such as the rise of its stock price.

3.3 Risks of downsizing

3.3.1 Legal risks

Engaging in downsizing also indicates the risk of breaching the employment contract. The employment rights of staffs in New Oriental Group are also be set forth in several formal documents such as appointment announcement, staff handbooks, manuals of personnel and several written regulations or policies in New Oriental. And all of these above mentioned documents can be claimed to be inside the contract of employment in New Oriental Group. For New Oriental, if it engage in downsizing such as sack employees without proper management, it is possible to face with lawsuit as breaching of employment contract.

3.3. 2 Influence on productivity

Mitchell (2002) mentioned downsizing may lower the productivity of organization although it may only last for a short while. New Oriental Group will face the same embarrassment because downsizing may make employees feel unsafe and become resentful. This is real even though they are not the ones faced with job loss. Because, some individual workers laid off are friends with these remaining employees, it may make the remaining employees have the sense of loss and even decrease their working productivity possibly.

3.3.3 Influence on reputation

Gandolfi (2008) mentioned downsizing will influence the reputation of an organization as the employer brand. Maslow (1943) defined the five categories of needs for ordinary people to be motivated in their ordinary life or work including physiological needs, safety needs, belongingness needs, esteem needs and self-actualization needs.

Figure 3.0 Maslow’s hierarchy of needs

figure 8.0

Source: Maslow, A. F. 1943, A theory of human motivation, Psychological Review, vol. 50,

For employees who work in organizations such as employees working in New Oriental Group, above the physiological needs of base salary to ensure their living, they seek the safety needs such as safety work and job security in their organization. While New Oriental groups engagement in downsizing may breach the safety needs of employees seeking in their job, which will give negative impressions on employees in New Oriental and these people who are planning to apply the positions in New Oriental and build the image as a untrustworthy employer (Gandolfi 2008).

3.4 Measures to manage risks

The first measure for New Oriental Group is to link its downsizing related plans with its corporate plans. And it is important for New Oriental to make clear clarification on the purpose, positive outcomes and detailed plans for the forthcoming downsizing to remove the doubts and misunderstanding from employees (Noer 2001).

Secondly, according to Noer (2001), ensuring the process of downsizing is implemented in New Oriental in the fair manner. The fairness will make people feel better if they have this feeling towards the ongoing downsizing. For example, New Oriental had better connect each role involved in the downsizing process with the value chain by some tools such as impact map so as to clarify the actual process, steps and information such as who will stay or who will go to all of the employees in New Oriental.

Thirdly, minimizing the guilty feeling from these survival employees and increasing the involvement level of employees in the decision-making process of New Oriental in all of its levels may assist New Oriental to regain the sense of belonging from its remaining employees (Kusum 2004).

Fourthly, Kusum (2004) mentioned enhancing the communication effectiveness towards the downsizing issue is the good choice. Announcing honestly to people about the downsizing and listening to their voices carefully and sincerely will also remove the resistance to downsizing.

Fifthly provide the proper support and respect for those who will be sacked to remove their feeling of betrayed, isolated and insulted so as to make the possibly worse situation to be relatively easily managed (Kase & Zupan 2005).

Sixthly, referring to these “survivors”, New Oriental should also provide them with special supports, sometimes should be individual support according to their individual difference (Kase & Zupan 2005).

At last, New Oriental Group should also recognize and celebrate the achievement of each individual or groups to improve their sense of belonging and sense of honor to make them working hard even after the great changes caused by downsizing ( Kase & Zupan 2005).

4.0 Organization- wide interventions

4.1 Intervention strategy

4.1.1 Attrition and advantages

Owodunni (2002) mentioned utilizing freezes and eliminating positions by attrition is available and valuable to eliminate financial pressure and human resource management in New Oriental. On the one hand, with saving from the intervention, New Oriental can save cost, which can be then invested in people training issue for ordinary employees such as course instructors or higher level of employees such as managerial staffs to make them more fit and adaptable to the strict and furious competition environment.

4.1.2 Furloughs and advantages

Temporary furloughs can facilitate New Oriental to eliminate some unnecessary permanent positions without bringing about too fierce objection (Owodunni 2002). This provision provides temporary adjustment in the workforce New Oriental without application layoff. In fact, temporary furloughs are often used as temporary layoffs to save cost and relieve tense relationships. While several principles for furloughs should also be obeyed in the temporary furloughs, it enables New Oriental to manage its interventions in the legal scope. First, the total number of furloughs is limited in no more than seven days per year or two to obey the requirements of employment. Second, New Oriental should notify the labor union about this temporary layoff is carried out. Or else there may be legal problems in employment issue.

4.1.3 Negotiated retirements and advantages

There is an increasingly common intervention named negotiation retirement to popularize voluntary severance and plans of early retirement for organization to apply, which have been implemented in many academic industry such as schools and training schools (Owodunni 2002). Under some typical incentive design, New Oriental offers some packages of benefits to some selected employees to negotiate them with early retirement to reduce some unnecessary positions, which may save the payroll of New Oriental sufficiently by attrition and avert risks of layoffs.

4.1.4 Unpaid vocation and advantages

Unpaid vocation enjoys increasing fame among profit and nonprofit organizations, it gives employees in New Oriental the choice to have a holiday without salary rather than being sacked (Marchington & Wilkinson 2007). That is to say, unpaid vocation gives New Oriental the time to remit financial pressure and avoid destroying the relationship with employees. And some employees who are given the unpaid vocation may also make use of this chance to find a new job to avoid the risk of being sacked.

4.2 Disadvantages

First of all, whether attrition, unpaid vocation or furlough is soft, it indicates soft consequence but superficial function (Marchington & Wilkinson 2007). Attribution or furlough is to make use of employees short period leave to save operation costs. Although cost can be reduced to a certain amount, it cant last as long as the contribution produced by lay off. Because, lay off means to sack some certain employees for ever, unpaid vocation, attribution, or furlough own only temporary function, which wont avoid the truth that employees who are back from unpaid holiday or furlough have to be paid.

Second, if the ultimate aim of the above interventions fails, the cost may be more expensive (Marchington & Wilkinson 2007). There are three major problems for New Oriental such as fat management group, insufficient investment on training and development of employees and too fat body of full time teachers which put great financial and developing pressures for New Oriental. And if employees who are involved in the attrition plan fail to meet the original objective of this plan and they refuse to leave their position gradually, which may make New Oriental get into the trouble. On the one hand, New Oriental has to admit these employees legal position as the official employees of New Oriental, which indicates a set of employee benefits and safety issues that New Oriental cant sack them with some reasonable excuses. On the other hand, if these employees refuse to leave their position, it also indicates New Oriental cant hire new and expected employees to fit these employees position, which may influence the entire developing plan of New Oriental and its human resource management strategy.

In short, all the organization interventions require New Oriental Group to handle carefully to avoid future troubles, which are even legal troubles.

4.3 Considering alternatives

As the mentioned organization interventions owns short term life and some unavoidable disadvantages, more alternatives of organization interventions are listed here for New Oriental Group to choose and deal with its problems.

4.3.1 Eliminating layers

Towards the fact middle management body, one of the most direct and effective means are eliminating layers. Cameron, Freeman and Mishra (1991) recommended the advantages of eliminating layers are both reducing the pressure of big body and cost saving. The large and fat middle management body of New Orienatl Group has been a headache bothering the upper management for a long time. Although several relatively mild and soft means are resorted from time to time, the results and consequqnces are only seemed to last for a short time rather than long term benefits. Since these mid means are out of function, the direct and effective means such as eliminating layer of management can be depended on and tried out to get expected results and support New Oriental to get a effective development speed.

4.3.2 Merging units

Merging units are good offering from Cameron, Freeman and Mishra (1991) to solve New Oriental Groups present headache. According to the offering from Freeman and Mishra (1991), New Oriental group is persuaded to merge the units with the same function and being operated in the same places such as merging Beijing Pioneer Technology section and Beijing Hewstone Technology section or merging Beijing Judgment Education & Consulting section and Beijing Decision Education & Consulting section are feasible to reduce management layer and simplify the organizational structure (New Oriental Education & Technology Group Inc. 2011)

4.3.3 Redesigning tasks

Resigning tasks of employees is feasible for New Oriental Group to transfer some pressures according to offerings from Cameron, Freeman and Mishra (1991). As we analysis above, some managerial sections in New Oriental Group are working insufficient and even can be regarded as useless. If lay off is too radical, why not use a softer means such as resigning tasks?

According to the information from New Oriental Education & Technology Group (New Oriental Education & Technology Group Inc. 2011), most of the middle level management employees own oversea studying and living experience, which can be exploited by New Oriental to make them as senior lecturers for teachers in New Oriental or even senior instructors for students to make up for the lacking of qualified teaching talents and finding out free trainers for teachers to improve their teaching or language skills.

In short, the three alternatives own long term benefits which are feasible for New Oriental Group to take into consideration with low investment risk.

5.0 Political issues

5.1 Theory

5.1.1 Definition

According to Robbins (1993), political issues inside an organization are defined to be the practical utility of power in actual action including practices which are even not asked for as the part of individuals formal role and also including the activities aimed to impact the advantages and disadvantages’ distribution by negotiation throughout the whole origination, shown in figure 4.0 about the level of organizational politics in different level of employees.

And there are two types of political issues often practised inside an organization including the legitimate one such as the ordinary everyday politics and the illegitimate one such as the politics outside of the games rule.

Moreover, Robbins (1993) also mentioned the reasons to cause political issues to exist inside an organization. At first, it is due to the fact that there are different values, objectives or goals and norms between individual employees and groups, employees and management, and different managerial groups, which makes organizational politics come into being. Secondly, under some circumstance, the resources are limited, therefore different groups or individuals practise politics to fight for their interests or more benefits. At last, organizational decisions are often based on the facts that whether the individuals or groups have good performance, which makes politics come into being in the organization.

Figure 4.0 The level of organizational politics in different level of employees

figure 4.0


5.1.2 Reasons

For New Oriental & Technology Group, the reason to cause the politics in this organization is mostly because of the downsizing practice, there are so many risks for employees in New Oriental Group to face and deal with such as the possibility to be sacked or reduce salary or other kinds of uncertain risks during the process of downsizing. Therefore, employees in New Oriental Group are possible to practise several political activities which are even illegitimate to protect their interests and avoid risks.

5.2 Political issues

5.2.1 Sabotaging

The first possible political issue faced by New Oriental Group is sabotaging from employees. In most organizations engaged in downsizing, they may not avoid employees sabotaging according to Buchanan and Badham (2008), which is the same possibility faced by New Oriental. For example, employees may feel angry or disappointed about the ongoing downsizing, which may make they face the misfortune of being sacked or other kinds of trouble. Under such kind of circumstance, these angry or disappointed employees may choose to do harms to New Oriental Group including perform their assignment inactively and negatively or defame the reputation of New Oriental as the employer or even defame New Oriental in front of the customers. If this happens, the reputation and working morale of employees will be influenced a lot.

5.2.2 High job hopping rate

Buchanan and Badham (2008) mentioned high rate of job hopping will easily happen during organizational downsizing era. The sense of danger often drives employees to grow the intention of leave. This kind of frustrated emotion can make even the elites in New Oriental to form the intention of leave or job hopping. And if this kind of insecurity feeling becomes serious, the whole organization may be moved because of high rate of employee turnover.

5.2.3 Exposure of confidential information

According to Buchanan and Badham (2008), downsizing may drive employees to practise illegitimate politics such as exposure of confidential and secret to the competitors. Referring to the downsizing issue in New Oriental Group, it is possible for employees especially these faced with the fate of being sacked to deliver or leak important business secret to its competitors such as Universal IELTS and Lange Education, which may increase the weakness and decrease it competitiveness when compete with its competitors in Chinas language training industry.

5.2.4 Inside conflicts

Buchanan and Badham (2008) also mentioned downsizing may cause inside conflicts among employees and employees, employees and their departments, middle pr lower level of management and upper management and so on. For New Oriental, if it is engaged in downsizing practice, it is inevitable for New Oriental to involve with the conflicts caused by its employees such as slander with each other to gain the survival chance or forge documents about outstanding performance and other kinds of illegitimate practices to hurt the interests of each other and their organization so as to gain the survival chances.

5.3 Solutions

Lines (2004) offered many tips for organizations such as New Oriental Group to deal with these politics issue arousing during the time of organizational change.

At first, forming employees in New Oriental Group with the rationale for downsizing by providing them with thorough information is the right choice to manage peoples resistance during changing time due to lack of information or even misinformation. This measure is defined as education and communication to remove misunderstanding between employees and New Oriental Group to clarify the importance and advantage of downsizing for both this company and its people.

Secondly, improving the degree of participation and involvement of employees in the changing process may be effective for New Oriental Group to decrease the probability of the above mentioned illegitimate politics. During some time, illegitimate political behaviors are due to the feeling of exclusion from the process. Therefore, if people are involved in to the downsizing process actively, their sense of belonging will be enhanced which may results in low probability of the occurrence of illegitimate politics in New Oriental Group.

Thirdly, support and facilitation is also the choice for New Oriental to deal with the politics issue in the change program such as downsizing. Sometimes, illegitimate politics including sabotage, job hopping, leaking business secrets are due to the anxiety and uncertainty towards the change, New Oriental Group is recommended to offer resources including technical resources and emotional resources for both the survivors and laid offs to mollify their hurts and emotions and avoid the occurrence of illegitimate politics.

Fourthly, negotiation and agreement is also important to lower the probability of illegitimate politics occurring. For example, towards employees, especially these actual or potential illegitimate politics makers, New Oriental Group should express honest attitude and give them support and proper compensation to make up their loss.


Fifthly, New Oriental Group is required to use manipulation and cooperation to buy the support of some certain employees to give support and make positive pubic voice among employees in New Oriental Group to alleviate the pressure among employees towards downsizing and reduce the chances of illegitimate politics.

6.0 Conclusion

Thanks to the analysis; many aspects of New Oriental Group have been explored to support it to find out the best ways to enforce organizational transformation with the lowest cost and highest return.

7.0 Reference

Buchanan, D.A. & Badham, R. J. 2008, Power, politics and organizational change, 2nd edn, SAGE Publications, London,

Cameron, K. & Freeman, S. & Mishra, A. 1991, Best practices in while collar downsizing managing contradictions, Academy of Management Executive, vol.5, pp. 62,

Cascio, W. F. & Wynn, P. 2004, Managing a downsizing process, Human Resource Management, vol. 43,

Galbraith, J. 2002, Designing dynamic organizations, Amacon, n.p.,

Gandolfi, F. 2008, Learning from the past – Downsizing lessons for managers, Journal of Management Research, vol.8,

Kase, R. & Zupan, N. 2005, Human resource management and firm performance in downsizing: Evidence from Slovenian manufacturing companies, Economy and Business Review for South East Europe, vol. 7,

Kusum, S. 2004, Revisiting the survivor syndrome: The role of leadership in implementing downsizing, European Journal of Work and Organization Psychology, vol.13,

Lines, R. 2004, Influence of participation in strategic change: Resistance, organizational commitment and change goal achievement, Journal of Change Management, vol.4, no. 3

Marchington, M. & Wilkinson, M. 2007, Human resource management at work: people management and development, 3rd Edn, UK,

Maslow, A. F. 1943, A theory of human motivation, Psychological Review, vol. 50,

Mitchell, M. 2002, Charging back up the hill: Workplace recovery after mergers, acquisitions, and downsizings, John Wiley & Sons, New Jersey,

New Oriental Education & Technology Group Inc. 2011, Annual and transition report, New Oriental Education & Technology Group Inc., Beijing,

Noer D. M. 2001, Healing the Wounds: Overcoming the Trauma of Layoff and Revitalizing Downsized Organizations, Jossey-Bassey Publishers, USA,

Owodunni, A. A. 2002, Effects of direct attention thinking tools and brain writing creativity techniques on business process re-engineering skills of customers’ service bank workers in Ibadan, University of Ibadan Press, Ibadan,

Owodunni, A. A. 2007, Perceived influence of downsizing on survivors’ psychological stability and job performance among workers in Ibadan, African Journal of Cross-cultural Psychology and Sport Facilitation, vol. 9, pp. 61-72,

Robinson, M. & Carmen, A. n. d., Reengineering ( Downsizing), corporate security and loss prevention, Journal of Risks, Security and Crime Prevention, vol. I,

Robbins, S. 1993, Organizational behaviour, Prentice Hall, Hemel,

Yu, M.H. 2009, Social responsibility of New Oriental ( 新东方的社会责任), WTO Economic Review, vol. 6,

Yu, M.H. & Li, X.Y. 2003, It is important for people to live philosophically: The interview with Yu Minhong (人要哲学地活着——俞敏洪先生访谈录), Economy Theory and Management, vol. 10,

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