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.
Once the merger has been completed, it is important for top executives to define the culture in which they plan to achieve. This culture can be comprised of a blend of the different organizations’ cultures, or adopting the one organizational culture that feel best suited to guide the company moving forward. The article integrating cultures after a merger explains that “to integrate two cultures, savvy acquirers first define the cultural objective in broad terms. This is invariably a job for the chief executive—and the CEO has to be willing to sustain his or her commitment until the
Over time, the culture can change or adapt. This may be due to new leadership, mergers, or acquisitions. It may even be due to a change in the market climate itself. As new employees are brought on, they must be taught the company culture to keep it strong and in line with the overall company umbrella. Most large companies have established culture programs for their leadership, so that they may take those tools, thought processes, and examples back to their teams to keep the culture strong.
I did not like the book The Call Of The Wild because in the first two or three chapters after buck gets adopted by Francois the book repeats itself over and over again. Also every time something that should kill Buck, he breaks through and lives with minor inguries. I liked the book because Buck shone through all the other dogs he was brave, loving, and always did what his master told him too.
2. Given the diversity of cultures embedded in the merged organization, what should the management team do to facilitate a working culture in the new organization?
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
The organization’s culture reflects the interpretation of the shared values and beliefs by its leaders and employees. Culture drives the performance and behavior of the employees, and thus, play a significant role in the success of any organization. Hence, a pre-merger cultural assessment of the merging entities should be conducted to identify areas of commonalities and potential incompatibilities. Respecting both cultures, addressing differences, and planning to leverage the best of existing cultures will ease the blending. Also, implementing a similar approach to align the service operations- by engaging the medical staff, identifying differences, and providing similar high-quality care and patient satisfaction across the two campuses; will mirror the shared
Some businesses in America transfer into bi-cultured after starting out as monoculture. This typically happens when one company buys out the other or they join each other and sub-merge. Every now and then this happens globally. Companies face changes when a merger takes place such as how the business will operate, wages, and or if there will be interference from the government. Once the merger has begun the rules are changed to better serve the company whether people are with it or against it. Company success stories are sent over to a list which is created called the Globe Project list. This list gives pointers and advice for globalized managers to practice based on several key items and characteristics required during a successful merger. Daft states, “Some of the characteristics are assertiveness, performance, and human orientation” (Daft, 2013 ).
3. What specific factors should the company take into account when integrating the different cultures, who should be responsible for the integration process, when and how should the integration process take place and how should its success or failure be evaluated?
Yes the different culture of the two companies will affect the future integration and strategy of the company Gamier and the senior management team had made efforts to combine both cultures under the Spirit of GKS banner the company was still struggling for the distinctive identity the different philosophy of the companies were still alive advise were given to the management on how to deal with both the merged companies employees, Getting people to work to common processes was also a 'problem': managers, for instance, would agree on a way forward during a meeting but on returning to their sites would carry on as before and allow people to stick to their Glaxo or SB way of doing things.
Today, we were called into the boss’s office and told that our company was about to go through a major restructuring. In two weeks, the organization will be merging with a national conglomerate and it is our job to get the “troops prepared”, as she put it. She stresses to us the importance of effective leadership and communication. She would like for us to establish and initiate a plan that will help the employees with the transition. Luckily for us, we just completed a seminar on organizational behavior and we know exactly what needs to be done to make this transition as positive and seamless as possible.
Ms. Sally Thompson, the new president of Diamonds Vacation Ownership Club, (DVOC) needs some assistance in addressing organizational culture change. Ms. Sally is looking for ways her organization can be transformed seamlessly and successfully. The goal is to align the culture of DVOC with the values of the parent company, Diamonds Hotels. Ms. Sally was recently appointed, and she has no direct experience in creating Synergies across organizations. Ms. Sally has several concerns and has enlisted the assistance of a team of consultants. Some of the president’s questions range from if she can use mediated dialogue, how she can reduce resistance to cultural change, different types of leadership and management, a step by step approach,
The modern business culture must, by necessity, be fluid if it is to succeed globally. There is interaction between employees, between stakeholders, and between global environments. In fact, this environment is formed through multiple interactions between the strengths, weaknesses and opportunities presented through the organization's unique culture. Since truly the one constant in business is change, it is how we adapt to such changes; as individuals and part of groups, that helps manifest behaviors as he culture evolves. Indeed, many believe that one of the templates that make up this fluidity is the concept, even more popular in the late 20th and early 21st centuries, of mergers and acquisitions (Horibe, 2001).
Cultural integration is the extent to which units throughout an organization share a common culture. This is the culture’s breadth. Organizations with a pervasive dominant culture may be hierarchically controlled and power-oriented, such as a military unit, and have highly inte- grated cultures. All employees tend to hold the same cultural values and norms.
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.
Organizational culture is the most important issue to consider when acquiring another company. While some cultures differ from others, that doesn’t necessarily make them weak cultures. Key questions to ask are; how well will the companies cultures mix with each other? If changes to either culture occur, what implications does this have on productivity and efficiency?
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.