Leading Through Ambiguity

Mergers are such a complex concept, which can bring about a variety of emotions. I remember learning about the topic while pursuing my MBA. During that time, I reviewed companies that had merged and their history. Some were horrible stories of people losing their jobs and a loss of the mission of the company. I think that in most of these cases (the ones I learned about through MBA) the merger was done out of fear. Their company was struggling to grow, had financial issues, or policy were changing the way they needed to do business. Perhaps this was why there were negative repercussions from the merger.

Once the merger has been finalized and integration is complete, middle managers need to assess their staff to be sure that each employee is doing his or her part to make the merge as successful as possible. If there are employees who are resisting the changes being made within the company, or not buying into the new culture and vision, it is necessary to evaluate the situation and

Apparently the outgoing owners were no longer concerned about the employees, much less what they'll lose, and that's an unacceptable move. Why would the company approve the merger if the existing needs of the associates were never met? It seems as if the outgoing company had no negotiating leverage; hence, it's either accept the merger and gain something or lose the merger and waste a potential financial gain. Should the new company suffer the frustration of the newly acquired employees? Unless they intentionally enter into unfair practices, they should never suffer any dissatisfaction; although, changes took place due to pressure, credit should be awarded to the company for accepting to reinstate all benefits plus an additional

was its negotiation with labor unions to remove a substantial cost and time risk to improve stakeholder’s confidence that the merger was going to go through.

Poor Communication: The executive staff of each company needs to communicate to their employees the reason for the merger, what is expected from the merger, and the intentions of the executive staff as it relates to the merger (Siegenthaler, 2010). Employees involved in the merger need to know that they are needed and not expendable because of the merger.

Poor communication between people at each level in the organisation and the other organisation it is merging with is one of the main reasons why mergers fail. Mergers are normally made at the top end of hierarchies leaving middle management and lower employees in the dark making the demoted through communication diseconomies of scale. Through this process, the communication is more likely to be distorted when going down the levels of

There are four stages organizations undergo when a merger is decided. The first stage of a merger and acquisition is the pre-deal or pre-merger and acquisition; it includes finding compatible business ventures and partners to assess potential targets and develops a plan for execution (HR Focus, 2005). Organizations planning to go through a merger or acquisition must consider the legal implications including equal employment opportunities. HR must examine the policies of both companies and ensure employees are properly trained. Training should include harassment, disability, and

A merger or acquisition is a combination of two companies where one corporation is completely absorbed by another corporation. The less essential company loses its identity and becomes part of the more imperative corporation, which retains its identity. A merger extinguishes the merged corporation, and the surviving corporation assumes all the rights, privileges, and liabilities of the merged corporation (Gomes, 2011). A merger is not the same as a consolidation, in which two corporations lose their separate identities and unite to form a completely new

The employees are supposed to have alarming beliefs and questionable attitudes toward the merger and if those attitudes do not get properly managed, it will badly affect the company’s performance. The most questionable attitude in this case could be employee’s perception toward management decisions as it could a sense of uncertainty within them. They become more sensitive to their future as any uncertain thought about company’s decisions and actions could let them thin that their job is at stake. Thus staff turnover is quite probable as no employee could thrive in uncertain work environments. Differences in opinions, either professional or technical could also result in employees’ frustration and developing angry attitude resulted by genuine work complaints (Nelson, D. & Quick, J., 2006)

Risks. There are many potential risks associated with acquisitions and mergers. According to Allen (2014) risks include “ the miscalculations regarding the scale, scope and change management implications of the integration and the level of assimilation required” to make the transition a success. Another risk is would include the a lack of an adequate or strong communication strategy. Finally, a lack of identification or preparation to ensure key staff and core competencies are identified and a plan is in place to ensure they are retained could prove to be a major risk.

Why companies consider merger to be important for their business success is not far fetch, to increase market share, economies of scale, profit from R&D, benefits on account of tax shields and reduction of competition. However, the merger also has some associated problems such as increased business complexity, clash of corporate culture and sometime employee may be resistance to

Mergers of corporations take a lot of time, consideration, team work, and cohesiveness with team members and groups. Conflict and confrontations will surely arise, but it is up to those in management to learn how to deal with and make sure that everyone and everything operate effectively and orderly.

The goals that the company has to relocate the people and to pay for all the expenses for relocation because they do not want to hire people locally they want to bring their own employees. The employees need to understand that the merge of these two company is very beneficial for the future. In order for this new company, that is mixed up from two previous rival companies, in order for this to work they must relocate some of the workers. They will have to find a way to work together. The hardest thing for HR would be to force people to move and relocate and not end up losing them because they are a big part of the organization.

According to Yamanoi & Sayama (2013) found studies that propose the effects of lower post-merger financial performance is due to lack of cultural integration and creates organizational dysfunctions, with interpersonal conflict, organizational communication ineptitude, thus creating employee and executive turnover. With cultural

Point A implies that a lot times a Merger is happening for the sake of it as in just because it’s a trend and it would bring the organization in the news. It may happen not for a real Business cause but for having media attention. Here the Banking institution or the Lawyer normally tries to be diplomatic and never corrects or advice their possible clients in order for their own interests being served.