The Importance of Creating Innovation Culture in an Organization

Major companies and corporations that comprise a big part of the United States economy take advantage of certain opportunities such as going public through IPO’s, acquisitions, and mergers. These three approaches provide an additional resource and many times an advantage to expand, become more profitable, or simply save a company’s existence.

The goals of mergers range from reducing the number of competitors, to access of new products (Belcourt et al., p 330). Statistics show that 80% of new product developments fail (Howells, 2011), partly due to challenges and conflicts with human resources functions. Mergers and acquisitions are the fastest way to enter new markets. “It is estimated that 1/3 of all mergers fail due to faulty integration of diverse operations and cultures,” (Chhinzer, 2013). Therefore, the success of a merger or acquisition lies in the ability to guide, motivate, retain, and effectively use

Innovation is an important tool in all companies and organizations. It helps them to create new products or change their current products in a way that brings them huge competitive advantage. It changes how the products are created and delivered and the risks that are undertaken to deliver the products. Regular and focused innovation is thus extremely important in the survival of organizations as is evidenced in the history of many of the successful organizations(Shane & Ulrich, 2004). In the IT sector, innovation is extremely important and is even known to be a priority. Various government agencies as well as private sector companies have stated that lack of innovation is a huge risk to the future of the organization and should be avoided at all costs. These sentiments are shared across the governments of Australia, UK, Canada, US, India and South Africa. This is to show that the importance of innovation cuts across all continents and countries(Bessant & Tidd, 2011).

Mergers and acquisitions are becoming commonly practiced strategic options for organizations. Organizations are coming together one way or another to realize emerging commercial opportunities. Goals for this upcoming and popular strategy converges around themes including growth, diversification and achieving economies of scale.

Mergers and acquisitions immediately impact organizations with changes in ownership, in ideology, and eventually, in practice. There are multiple reasons, motives, economic forces and institutional factors that can, taken together or in isolation, influence corporate decisions to engage in mergers or acquisitions. The financial risks of merging with or acquiring an organization in another country and how those risks can be mitigated are important issues for corporations to conduct research on. This paper will examine the sensible and dubious reasons for mergers and acquisitions and the benefits and costs of the cash and stock transactions.

It is interesting to understand while organizations attempt to implement new ideas within them, it is discovered the critical role that culture and subcultures play in implementing them. According to Huczynski et al, 2007, the factors affecting company performance are many and varied; isolating the contribution of culture is difficult if not possible and it is in the interests of both management consultants and managers to maintain that “cultures makes a difference”. Thompson P & McHugh D (2002), are of the view that strong cultures not only exist but are also the reason for better or even excellent company performance.

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 Idea in Brief: This memo illuminates evidence-based practices leveraging worker engagement, as a driver of organizational culture change and innovation in a large work force. I am proposing a strategic paradigm for bolstering internal communication and mobilizing a 1% cadre of frontline workers as change agents. T.E.A.M. S.T.A.R.S. is comprised of 9 facets: Team Psychological Safety, Embracing Mistakes, Autonomy & Accountability, Making & Managing Goals, Shared Vision & Identity, Team Sharing (via Enacted Capabilities), Assessments, Reflection, and Social Support Structures. Each of these components serves four interdependent, and complementary features of large organizations with superior reputations’ for worker engagement, internal communication, organizational innovation, and customer service: Organizational Learning, Information Analytics + Management, Operational Agency, and Organizational Trust.

Many people who work hard to be business owners always set out to be an Entrepreneur, which is, a risk taker in the private enterprise system, a person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business. Being an entrepreneur is almost as common as being a sole proprietor in a business. What many business people and working individuals may not know is about being an Intrapreneur, the word in its self is self-explanatory. The word Intrapreneur says to me that, you are an entrepreneur on the inside of a business for an organization; just the opposite of being an Entrepreneur. Intrapreneur means, the process of promoting innovation within the structure of an existing organization. So how does an effective leader promote innovation within an already thriving organization while still being able to achieve the mission and goals in which the business must follow? Well recently the hospital in which I work held a town hall meeting with the President and CEO of the organization. The hospital had just merged with New York Presbyterian as an affiliation to gain better marketing, become more profitable, and overall making it a bigger business. The president was not very pleased with the hospital ranking as a two star hospital and wants to find ways to motivate the people whom work under him. All staff members from nurse managers, to department heads have to devise a plan to implement within their departments to improve new ways to promote

In our days mergers and acquisitions are a predominant feature of the international business system as companies attempt to exploit new market opportunities and to strengthen their market positions. Each year sets a new record for the total value of mergers and acquisitions and nearly every day new announcements are made in the business newspapers.

This research paper is about Mergers and Acquisitions and the effects and consequences it has on employees. Mergers and acquisitions are sometimes referred to as takeovers or raid. In this paper, I will attempt to elucidate some of the reasons behind M&A and some of the effects it has on employees. There are a plethora of effects and consequences that mergers and acquisitions have on the workforce. However, this paper only delves into some of the more prevalent and perverse effects they have on the labor force.

Diversified firms that communicate will have a greater ability to share information and technology; however, one must remember that with mergers and acquisitions each business needs to know all mechanisms of the other to be successful. A new structure might have to deploy between the organisations to enable full growth of any on-going operations. In

Leaders are facing unprecedented challenges in today’s global organizations to prove themselves in employees’ perception of being ethical leaders. Some conducts, which might be considered right in one organizational culture might be considered wrong in another. Normative appropriate conduct varies with societal and organizational culture (Yidong & Xinxin, 2013). Perception of leaders being ethical affects employees’ performance and innovative work behavior (Yidong & Xinxin, 2013). Global leaders should possess traits such as honesty, altruism, high moral values, transparency, integrity, and fairness to be respected by the followers as a role model (Cowart, Gilley, Avery, Barber, & Gilley, 2014; Yidong & Xinxin, 2013).

The merger of companies creates value by increasing profits and capturing market share in a time unachievable by natural growth (Salama, Holland & Vinten, 2003). This has caused M&A to be very popular with companies thus causing a huge activity in M&A. However this optimistic view of M&A does not match the success rate of M&A where a large amount end in failure (Weber & Tarba, 2012). It is often not the shortfalls of the proposed strengths and benefits a merger may provide a company that causes failure but rather it is where the acquiring company is unable to successfully merger the acquired company’s culture into their own (Vuuren, 2012). Organizational culture is often overlooked by

The research proposal which is going to be written will mainly revolve around the concept of mergers and acquisition in current situation. Research would mainly focus upon: How mergers and acquisitions take place? Why there is need to merge or acquire? What are the legal ways or step to do that? What parties are involved in mergers and acquisitions? What are the Factors to be considered before mergers and acquisition? In order to carry out whole research till the conclusion few models will be used such as business evaluation models which will comprise asset evaluation method, historical earning evaluation, future maintainable earnings evaluation, relative valuation and future discounted cash flows (DCF). The purpose of choosing the topic “mergers & acquisitions” is its significance in the industry of modern world now days. (Hansell, 2005)