The role of organizational culture in merging process

 

The merging process on organizations involves the involvement of “new employees” to be part of the organizations, feeling and thinking in the “same way”. Is necessary to create a solid corporate identity that distinguish the members from outsiders, allowing them to create a joint identity.

Merging implies the reconstruction of a new identity, to face today’s fast changing environments and to adapt to new trends. Acquisitions and Integrations are ways of joining forces to boost advantages and compete at bigger scales; allowing companies to:

• Economies of scale

• Increase market share and revenues.

• Geographical diversification

• Improving on Resource allocation.

Although mergers and acquisitions are not always beneficial, they can represent risk to the companies due to the higher level of cultural, managerial and political issues that are needed to take into account.  Sometimes is necessary to perform an acculturative process due to the fact that conflict can occurs when the groups involved in the integration are much differentiated in cultural issue and the organizational forces are rejecting integration.

Success of a particular integration strategy is determined by:

·         The recognition of strategic interdependence among the companies.

·         The important role of organizational autonomy

·         The possibility to fit cultural issues.

Question:

According to the case studies (in class and in textbook), what are the practical steps to minimize the feelings of uncertainty normally expected by employees, and also to facilitate the learning process to occur between the two groups of people in their process of cultural and behavioral integration?

• Developing a proper atmosphere that allows the process it self, preparing staff to change, explaining them the benefits and oportunities that it would bring.
• Setting the gruond and the rules (clauses for the contract).
• Keeping the staff ported about any the process or any changes.
• Allow cooperation and consulting among both groups.
• Training employees to  any new model of machine, equipment or process.



Bibliography:

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Video retreived from: http://www.youtube.com/watch?v=QEfxnoXX21s&feature=related

Information retreived from:http://interactiva.eafit.edu.co/ei/