Case Study No 6 Culture clash

Journal of Management and Strategy, 2011

The purpose of this study was to understand the degree to which employees' satisfaction with merger-induced organizational changes impact on their productivity and the merged-firm performance. This is because, the introduction of market-driven business reforms in many developing economies has seen the emergence of growth-drivers that includes the search for new markets, increasing competition in local markets, new investors' interest in emerging markets, and hence the desire for firms to merge. The results showed that human resource issues are important aspects of mergers which, if it is not well handled, may impact negatively on employee satisfaction with consequent repercussions on productivity and the success of the merger. It is concluded that employee satisfaction to a merger-induced organizational changes could be enhanced by instituting effective two way communication system and using participatory approaches in job redesign processes. By implication, merger-induced change has human factor challenges that merging firms need to understand.

Aut Aut Research Journal, 2021

An extensive review of literature reports has been carried out in order to get a good quality observant in the topic of Mergers and Acquisitions. Literature review has been done from books, journal, published national and international papers etc. The issues covered consist of Motives, Financial performance, Work Environment, Job Satisfaction, Employee Morale, Employee Stress. Literature assessment has been collected from each inside India and outside India. Most of the companies studied enhanced work environment and job satisfaction after merger or acquisition. This might be because of decreased cost of operation added approximately with the aid of using economies of scale. The observed out that mergers and acquisition became now no longer the simplest contributor to job satisfaction and other factors also contribute towards increased job satisfaction.

This article reports a longitudinal study that examined mergers between three large multi-site public-sector organizations. Both qualitative and quantitative methods of analysis are used to examine the effect of leadership and change management strategies on acceptance of cultural change by individuals. Findings indicate that in many cases the change that occurs as a result of a merger is imposed on the leaders themselves, and it is often the pace of change that inhibits the successful re-engineering of the culture. In this respect, 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. Leaders need to be competent and trained in the process of transforming organizations to ensure that individuals within the organization accept the changes prompted by a merger.

Journal of Organizational Change Management, 1989

Reacting and Adapting to Change Mergers have become a fact of life for worldwide business. Usually, mergers take place for solid financial reasons: an opportunity to take a great leap forward in growth, the chance to consolidate operations and reduce expense ratios or, perhaps, to capitalise on the synergy brought about by a union of two organisations with complementary strengths. However, after a decade in which we have seen mergers take place at a truly frenetic rate, we now know that many of the financial outcomes anticipated at the outset of a merger never are achieved (Louis, 1982). In most cases, this is not because financial assets were over-valued, nor because market opportunities were exaggerated. Generally speaking, financial miscalculation is not the problem. The real culprit is human miscalculation. Merger planners tend to become so distracted by the potential financial rewards that a merger offers that they overlook the human side of the equation. The fact is that the financial rewards cannot be had without the support, cooperation , and loyalty of the employees of the merging organisations. To get the most out of financial assets, companies need the talents and energy of their human assets. But, in a difficult merger, valuable human assets can evaporate as rapidly as the morning dew. Mergers bring change. Names change, faces change, jobs change, locations change, procedures and policies change, relationships change, career opportunities change. So, passing through the merger transition period requires people to cope with changes on many fronts. Some people cope with change better than others do. Some see change as offering the possibility of a better tomorrow. But others find change and the uncertainty it brings emotionally exhausting. One way to cope with the emotional stresses of change is to be able to anticipate ahead of time how you will feel as you enter a period of change. This will help to keep things in perspective. Otherwise, your emotions can dominate you to the point where you simply cannot see things clearly and objectively at all. Your emotions will dominate your thinking throwing open the door to distorted perceptions. When this happens, you end up reacting more to what is going on

The Batuk, 2022

In most of the mergers of financial institutions, the issue of human side i.e. justice, satisfaction and work behavior of employees are neglected. But, the success of the new organization after Merger and Acquisition (M&As), largely depends on how actively and innovatively their employees work in the changed working environment. Hence, the purpose of this study is to explore the organizations' initiation for cultural integration in M&As process in Nepalese financial institutions. Further, it aims to examine how cultural integration initiation influence employees' satisfaction and their work behavior. This research follows inductive-deductive approach as the variables or issues were induced primarily and the data were analyzed with quantitative techniques. 234 responses from employees working in new organizations after M&As, from the large and small organization of M&As, and managerial and non-managerial level were collected based on organizational justice and social identity theory. Descriptive statistics were used to analyze the data. The result of the study revealed poor cultural integration initiation from the top management during M&As. Feeling of workplace injustice is being increased which caused deviant work behavior of the employees. This study emphasizes on the urgent need of organizational justice and enhancing the social identity of the employees working in all the M&As organizations. The consequences of the poor cultural integration initiation associated to organizational justice and social identity add on comprehensive framework of these theories.

Post-merger and acquisition integration era is the period where planned and thought through, as well as contingent strategies are deployed with the aim of achieving the motive/s for the merger or acquisition. This is the make or break stage of the whole merger and acquisition process. The study was basically a review of literature on the various strategies that are employed at this stage of the merger and acquisition process. It was aimed at finding the strategies that are most appropriate for all situations. At the end of the day, it was concluded that no one strategy stands tall, and that the appropriate strategy depends on a number of factors such as type of the deal, cultural differences, sizes of the firms involved, human resources available, motive/s for the merger/acquisition, environmental/industry uncertainties, competition, profits envisaged, complementarity, compatibility, and so on. It was also concluded that success at the end of the day will in most of the time depend on getting it right from the beginning, as well as getting the " people thing " or " human factor " right, as is one of the major causes of merger and acquisition failure.

ijetrm journal, 2022

The preceding chapter has incontestable however governance will be enforced in the company Sector and necessary role vie by the company Governance within the process of merger and uniting, whereby the Board of administrators, Audit Committee and Auditors need to stay way more argus-eyed throughout merger and uniting making the mechanism clear and to confirm that no unscrupulous activity takes place throughout such method. once more protection ought to incline to the whistle blowers that is either staff, shareholders or the other neutral if merger and uniting of Company takes place violating their interest. an endeavor has been created earlier to demonstrate the statutory framework of Merger and uniting in Republic of India. It has emerged that the statutory framework provides a close theme of uniting and role of the courts in sanctionative the theme. but the statutory framework of amalgamation isn't enough. There square measure variety of gaps found within the legal framework which are stuffed up by the judicial pronouncements from time to time. so it becomes essential to look at the role of Superior Courts that's the Supreme Court and various High Courts in Republic of India just in case of merger and uniting because the Indian higher judiciary has taken the statutory provisions and has answered some conflicting questions of law with reference to merger and uniting from time to time and has evolved a number of principles within the field of merger and uniting. This chapter is primarily devoted to the said side aspect.

United States Air Force Academ y2 Mergers and acquisitions have been a major force in business and industry but have seldom been studied in government contexts. Many studies suggest that failures of mergers are often related to inadequate attention to organizational cultures and human behav ior. The current case study focuses on a little-reported merger phe nomenon-the government reorganization. It also describes the careful, considered, psychological tenets and organizational struc tures that were key to the successful change.