Corporate structure and culture can be a strength or weakness to an organization depending on the situation at hand. For instance, culture that emphasizes on constant renewal is a reliable strength when it comes to organizational change. It would be easier to domesticate change with such a culture than when the organization professes a conservative culture. Organizational culture is a great advantage when inducting new employees because it gives them some insight of what is expected of them. However, corporate culture and structure can be an avenue of weaknesses when it comes to mergers if the two organizations merging have different cultures. The differences might call for restructuring of the resulting organization to accommodate both organizations. Restructuring is an expensive affair, which might have negative impact on customers (Films on Demand, 2011). How can the weaknesses be improved? Providing prior training to the employees of the organizations on the changes they expect after merger is a great way of reducing culture shock on employees when the two organizations merge. To minimize restructuring costs, the organizations should agree to work with old structures in the meantime while restructuring gradually (Ybema, Yanow, & Sabelis, 2011) There are evidence of new emerging notions of organizing effectively not really replacing the older approaches but "superimposed on them; it states that an organization 's purpose is to get results outside, that is to achieve
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Our case study deals with Mass Merger. Since the 90s, together with the globalization of business, Mergers and Acquisitions have developed at an incredible pace. Thus, companies from all over the world can be lead to work together as one single corporation. Moreover, the world has become interdependent not only economically, but also culturally, that is to say one culture may influence another one or different cultures can be mixed. It is then obvious that intercultural issues have to be solved.
Moreover, merger of the two companies carries along risks to human resources as it increases in insecurity among employees, lower levels of satisfaction at work, less affective commitment, and a loss of trust in the firms and management teams. Those issues would lead to difficulty in bending cultures, reductions in service levels, poor motivation and loss of key people and clients, and eventually impede the ability of the two companies to achieve their longer-term objectives and result in the failure of merger. 
Increasing productivity and sparking motivation in employees, are challenges that managers, businesses, and organizations have struggled with for centuries. While there are many beliefs about which method(s) yield the best results, and what is considered to be the desired result, a ‘one-size-fits-all’ management technique still does not exist. The current movement in psychology, called Positive Psychology, focuses on what is “right” in an individual, and not on their faults. This basic concept is starting to extend its influences into the workplace, making it seem that Positive Psychology may become the key ingredient corporate culture, and all places of employment alike, have needed to promote success and satisfaction in their lines of work.
The second major barrier to a successful merger between the two companies is a lack of corporate cohesion. The corporate cultures of both companies are very distinct. Royal biscuit is a new corporation that grew rapidly under the entrepreneurial expertise of one man, while Edeling is a mature family-owned business. The companies differ historically, politically and foundationally. Members of both corporations are expressing resistance towards the merger. Royal biscuit employees feel threatened by the merger and are engaging in anti-German antics; some workers don’t want to be loose their job to an Edeling worker or, in other words, to “some sausage-eater” (Reimus, B., 2004, p. 3). Edeling employees, instead, feel that Royal Biscuit employees don’t respect their corporate history. Therefore, it is imperative that Brighton and Wallach come to a cultural compromise in order to collaborate on a leadership plan and create competencies between employees within both of the
There is no “one size fits all” when it comes to structure and culture within an organization since industries and situations can vary. Furthermore, if an organization wants to improve its effectiveness and performance, their organizational culture needs to be strong and provide a strategic competitive advantage when it comes to its beliefs, and values. Organizations can differentiate itself from one another by those that do not have structure and culture. It is important to know that employees in all organizations want to work in an environment of trust and respect where they
When an organization does not use a holistic approach towards their culture, structure and systems, the organization could create a poor working environment for its employees and poor results for their customers. An example of culture, structure and systems not working well together can be seen in General Motors (GM). GM prior to its bankruptcy was seen to be a “highly bureaucratic company in which brands, departments and regions operated like self-governing and competing states with a federation” (Smerd, J. 2009).
The analysis is based on the merger and acquisition between E.T Kearney and EDS. E.T Kearney is the largest management consulting group while EDS is a technology firm. The company’s merged to form a new defining entity that could combine the synergies of both firms in the quest for improved efficiency. The merger created a cultural shock which created problems that are associated with organizational culture change .In this paper, we analyze the merger and acquisition as well as the recommendations for better performance of the newly created entity.
Sharing information and keeping the lines of communication open with the existing employees and new employees is going to be a vital requirement for this merger. Mergers tend to leave employees anxious which create increased stress and lower productivity rates among employees (Bhaskar, n.d.). An effective communication plan can help mitigate this problem and quickly return the company to full production when the merger has been completed. Starting communication lines early also help reduce the amount of speculation employees have. Even with before a merger deal is completed employees might get a sense of what is going on through a number of different channels. This can lead to
Organizational cultures that can be a liability to an organization include those that create barriers to change, create barriers to diversity or barriers to mergers and acquisitions. (Robbins, S. P. 2011) Organizational cultures are also good for change and revitalization of a company. This paper will provide background information on Best Buy and the ROWE (Results-Only Work Environment) Program. This paper will describe the culture of Best Buy. This paper will also discuss the approach to organizational change that the ROWE program illustrates. This case has sources of stress and this paper will discuss the sources that are apparent in the case. Changes have occurred
According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the
Many times anxiety can grow because employees fear loss of the organizations traditions. It is important to involve employees on the transition or modifications to traditions, celebrations, and other activities that help shape the organizations culture. It is important for both organizations in a merger to be sensitive to the others rituals and ceremonies and to work towards a compromise and build new traditions supported by the majority.
With the merging and acquisition done by the CIMB group, changes in the organization culture will occur. The current workers of the CIMB group would have to adapt to the new changes of the workplace, or some may even be transferred or terminated. Other than that, the employees will also have to adapt to the new management approach that in brought in due to the merging and acquisition done.
The shared characteristics and, in some cases, perception of employees create what is known as organizational culture. A strong culture constructs a unified employee atmosphere, whereas a weak culture lacks a shared sense of distinction between employees. An employee’s heritage or individual culture, although different than, affects the overall organizational culture of companies. Like society, sub-cultures exist within organizations. Formed by departmental function, geographical location, and/or the personalities of employees, sub-cultures include employees who continue to adhere to the organizations’ overall culture, but have additional independent characteristics. Employees’ individual heritage, along with the culture and
The culture of an organization is the set of values, beliefs, behaviors, customs, and attitudes that helps its members understand what the organization stands for, how it does things, and what it considers important"(Griffin, 49). In other words, "the way things work around here" (Dr. Williams). In order for any small business or large corporation to be successful, the employees must understand what is expected of them. While things might be slightly different in a large corporation versus a small "mom and pop shop", the goal of both is the same. MAKE THE BUSINESS MONEY. The topic of my paper will be on makes a good corporate culture.