Merging organizational culture

Summary:

In this business world we have as main goal the creation of value when talking about successful and recognition, but sometimes a company can’t reach this on its own so they need to merge with another or more.

But what is merging? Merge is the combination of two or more organizations into one. They usually merge policies, budget, administrations and all the areas into the companies.

However, companies try to look for others with similar organizational cultures and management styles so they won’t have as many problems as they can have by merging with different or parallel enterprises’ costumes.

We need to take into account that the principal component for a company is the employees and merging with parties that are so different is not good for them because this can create a feeling of unconformity and can discourage them, so here is when we can talk about the “ideal culture fit”. This is to find the best and similar culture in: mission, leadership and management styles, the way the organization is arranged in terms of hierarchy, language and communication, physical work environment, staff diversity, interpersonal dynamics and traditions and celebrations.

There are two organizational integration variables which are considered as relevant in the acquisition process: the motive for the acquisition and the process of implementation. The motive for acquisition refers to the reason that the parties have to make the merge and it is the most important because it will influence the level of required interaction between the members. The success of a particular integration strategy depends mainly on the manager’s ability to reconcile the need for strategic interdependence between the two firms and the need for organizational autonomy.  The acculturative process describes the cultural changes resulting from the interaction of one organizational culture with another.

Question:

According to the case studies (in class and in textbook), what are the practical steps to minimize the feelings of uncertainty normally expected by employees, and also to facilitate the learning process to occur between the two groups of people in their process of cultural and behavioral integration?

I think there are seven main steps that are required in order to minimize the feelings of uncertainty and can facilitate the learning process too. These steps are:

1. Have a good internal communication among members; the parties should create a common a communication style.

2. Members should have a high commitment to the merge’s mission and objectives.

3. The way how directors lead the organization.

4. Have a good and fast problem solving.

5. The place to work needs to be comfortable and relaxed.

6. Members should have a frequent interaction, so communication can fluctuate easily when solving problems.

7. To have an established hierarchy

Bibliography:

·         http://www.cgcareers.org/articles/detail/organizational-culture-finding-the-right-fit/

·         http://www.dinero.com/wf_ImprimirArticulo.aspx?IdRef=3485&IdTab=1

·         http://www.thedeal.com/magazine/ID/032134/community/a-new-era-of-m&a-in-china.php