Summary of Article explore The experiment to find out if organizational culture differences

There are certain benefits that derived from the merger, which would also boost the operations and financial performance of the organization.

In the case of the merger between Royal Biscuit and Edeling, there is clearly a lack of cultural competency between

The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,

Due to the diversity of the cultures in the merged organizations, the management team has to facilitate a working culture in the new organization. Each organization

Globalisation has dramatically changed the international business landscape. Corporations are now presented with unprecedented opportunities for growth, development and multinational expansion (Dobbs et al, 2013). With increased market and technological integration also comes the immense movement of people; connecting different cultures and nationalities from across the globe. It is now widely considered that diverse organisations are the most successful organisations, with cross-cultural collaboration often improving overall work efficiency by ‘integrating collective wisdom and strength’ (Li, 2011, 114). However, cross-cultural collaboration can also generate an organisational challenge, as disparate cultural backgrounds can often cause unintended misunderstandings (Li, 2011). The primary aim of this paper is to provide an analysis of an organisational merger between an American and a Chinese healthy food company, which will be situated in China. The authors of this paper will be acting as consultants, aiming to identify the cross-cultural barriers between the United States and China. Both organisations have identified the international merger as beneficial to their strategic objectives, however certain cross-cultural differences must be acknowledged as a potential challenge. Therefore, using relevant cross cultural theories, models and literature, this paper will advise how cultural challenges could be minimised. The paper will focus on issues surrounding communication and

The integration phase is the final phase of a merger and acquisition. This is typically where managers underestimate the magnitude of issues. Problems arise due to over estimation of synergistic benefits, culture, and communication issues between departmental managers, employees, and customers. Culture clashes are a huge issue in mergers and acquisitions. From our research, we found many companies underestimate the severity of these clashes. Each company has its own environment and the smallest changes can upset a whole organization if it is not dealt with

In fact, the associate chairmen of the two firms had just agreed in the opportunity and the necessity of joining their forces, while at the same time they either neglect or avoid discussing, enlightening and deciding upon both the deeper, crucial differences in terms of heritage, culture or vision and the several ongoing functional or operational details. The lack of communication and diffusion of the new elements, factors and directions is obvious both through the internal context of each firm -the employees are really unaware and uninformed- and through the overall, general dimension of collaboration and interaction between the two firms. In few simple words, the merging process is characterized by a major lack of perceived mutuality and essentially no sense of real synergy between the two sides.

In this report, the success or otherwise of any merger hinges on individual perceptions about the manner in which the process is handled and the direction in which the culture is moved. Communication and a transparent change process are important, as this will often determine not only how a leader will be regarded, but who will be regarded as a leader.

One of the most challenging aspects of the merger is determine which culture is the most effective culture to move forward with. It may be from one of the companies, a new one entirely, or even a blend of the two. It may be a large amount of hard work to create an entirely new culture, and there is a low probability of success, too. The easiest and most straightforward solution is to pick one of the company’s cultures as a host culture, and merge the other with it.

The integration of two organizations’ corporate cultures into one is no simple tasks, as corporate values, norms, and expectations will differ between the two organizations. According to the article how to Successfully Manage a Merger, “roughly 70 percent of all corporate mergers fail, according to the Boston-based consulting firm Bain & Company. Although mergers can head south for many reasons, difficulties created by cultural differences at merged companies seem to play a significant role” (Schatz, 2013). When merging cultures, companies must have a strategic plan that makes culture a priority in the change management strategy. This plans needs to include defining the desired culture, assigning a team to manage the cultural change, outlining the organizational culture that you wish to achieve, developing the cultural change plan, and making sure that progress of the plan is measureable.

(2015) stated that cross-border acquisition will have cultural differences between countries which need to be viewed carefully during post-acquisition integration. A classic typology developed by Mirvis and Marks (1992) was being illustrated in Appendix 5.1. The types of integration is referring to the degree of change required by the acquirer and the acquired firm. The authors further elaborate the options for integration in Appendix 5.2 based on the structure choices. For example, ‘absorption’ mergers that require fundamental change in the acquired firm, but little change in the acquiring firm. It is essential for the senior managers fully understand of the merger consequences, and at the same time clearly communicating throughout the organization. The key dilemma of the integration process whereby it requires a lot of resources and time-consuming. Hence, it is advisable to undergo full transformation with integrated operational control has the potential to create new dynamic

The Business Dictionary defines organizational culture as values and behaviors based on “shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time” (“Organizational Culture”, 2017). Simply put, organizational culture is how people learn, think and act on a daily basis within an organization. But if organizational culture is only unique social and psychological environments within a business, then how is it possible that it can be just as influential as business strategy? Research suggests that a strong organizational culture is a key competitive advantage of business because it can be the driving force behind innovation and alignment of goals, help motivate and engage employees, and generate fierce customer loyalty.

The cognitive components, beliefs and values constitute Organizational Culture and Structure. Other beliefs on the subject argue that they include artifacts and behaviors between the visible and the invisible aspects of organizational culture, leading to a common distinction, that a distinction is basically the response to the climate or culture of the organization. Other theorists distinguished multiple levels in comparison to the visible and hidden levels of the company. Schein (1985) as an expert in Organizational Culture identifies more levels:

Organization culture among other things are the values, and philosophies that hold an organization together. According to Susan Heathfield, the way an organization works and interacts with the rest of the world and how it functions inside and out are also part of an organization’s culture. The people in an organization share beliefs, cultures, and rules. All of these things define what an organization stands for. An organization should do all they can to establish a positive culture because who an organization is inside reflects in society.

Organizational culture influences the working environment for employees and in healthcare organizations, the culture also effects patient outcomes. André, Sjøvold, Rannestad, & Ringdal, (2014) report, “researchers have also found that nurses working in contexts with more positive culture, leadership and evaluation reported more research utilization, staff development and lower rates of patients and staff adverse events” (p. 449). Therefore, it is important that health care organizations focus on establishing a positive culture. Research shows that positive work environments have similar characteristics. Nurse leaders are in an optimal position to influence organizational culture.