Consolidated Transition of a Merger
Consolidated Transition of a Merger The transition of businesses coming together is a major task. These companies must look at various techniques and theories in order to create a smooth transition for employees, customers, and the organization. ... The strengths and complexity involved in this merger will need to be fully understood in order for employees and management to be prepared for this change. The change process will define how the communication, intentions of the merger, motivation, management style, cultural sensitivity, and employee morale effect this coming together. ... Merger, Inc. ... Planning the process allows us to evaluate our effectiveness of this merger. As Merger, Inc. begins this acquisition the structure and change will take top priority to ensure a smooth merger. ... In order for a smooth transition to occur, management is responsible for the developing of an effective strategic integration plan (Mawhinney, 1999). The “how” a company deals with change will determine the process of the merger: Let us focus on three levels the individual, group, and structure. ... In a merger, you will be faced with positive and negative results. ... Pros: · Become institutionally stronger · Increase size and financial resources while decreasing building costs · Increase productivity · Gain synergy that would nor exist separately · Develop ways of being and working as a merged organization that appears to have the best chance of being successful Cons: · The anxiety people experience as they wonder about the effect the merger will have on their position in the organization · Uncertainty about the degree of influence one will have in the new position · Staff cuts and change in leadership · Relocation · Job satisfaction · Working relationships · Clarity of guidelines/policies/procedures · Job stress · Effectiveness of management/supervision Upper management, employees, and shareholders will be asking these two questions throughout the next few weeks. ... When the merger is finally completed, the strange faces of Merger, Inc. ... There are several issues that you must be ready to handle, the impact of the merger positive or negative on the company, management and employees. ... In most cases, there would not be a merger if these companies felt there would not be a positive financial result for both parties involved. Recently, it hasn’t all been financial reasons why companies would feel that their merger would succeed, “While a favorable financial statement or product line may be the initial attraction of an acquisition candidate, whether the acquisition actually works seems to have more to do with how well the two organizations’ culture match up”(Robbins, 2001, p. ... One of the reasons most mergers do not work is because companies are not entirely forthcoming about their true intentions once the merger is consummated (Crane, 2000). If a merger is going to be successful, the companies involved must open the lines of communication and clarify their mission. ... The result of this business merger will be to increase performance and produce a cost efficient product that benefits the consumer and the organization. ... Merging two companies together will always be a struggle, but appropriately using the merger to develop the company can only lead to success. ... In doing so, the companies must realize that there may be resistance to these changes and come up with a strategy to deal with this resistance early on in the merger or acquisition. ... Research repeatedly shows that more mergers and acquisitions fail due to inadequacies in the merger and acquisition integration process rather than to any fundamental failure of strategic concepts (Mannix, & Loewenstein, 1993). ... Management team must be committed to the merger, teams must be confident and able to navigate new territory and rise to new challenges. ... Secondly, HR is responsible to develop and approve the new organization’s structure design, including an implementation plan to provide a smooth transition to the new structure. Finally, HR is responsible to transition issues covering re-training of staff as needed, update of job descriptions, and update of policies and procedures. The training process once a merger is consummated is an important step since the two entities work differently. ... For a smooth transition to occur training on the software that would be in operation will need to take place to facilitate greater communication. ... The different forms of leadership characteristics can greatly relate how well a merger or acquisition of a company takes shape. ... They must it able to keep the employee involved so that they stay motivated and feel like they have a voice during the merger. ... As Merger Inc. ... The leadership and motivational theories used during this merger will determine how well this new company operates. Management must be prepared to offer training and evaluate each step to ensure a smooth transition. ... Many pros and cons should be studied in order to weigh the value of this transition. ... Managers must be prepared for this transition and take the appropriate steps to ensure that the overall goals and objectives of the company are met. Merging companies is an amazing task that can be useful and productive if the transition is planned, as it should be. This merger will benefit the employees, management, customers, and the organization.