Organizational culture in merging process helps to explore the challenges and opportunities in integration process. mergers and acquisitions have a unique potential to transform firms and to contribute to corporate renewal (angwin,2001).
The following figure gives an overview of the different elements that should be taken into account when dealing with organizational culture.
The following figure gives an overview of the different elements that should be taken into account when dealing with organizational culture.
THE ENVIRONMENT
Is cleared that a diverse group of variables has an influence on the organizational culture, the different influencing factors some in the broader and the more direct environment of the organization as visualized as surrounding influences. The organization should be aware of those variables. Some influences are:
· National culture
· The evolution of the business
· Professional associations
· Stakeholders
Effective integration can be defined as the combination of firms into a single group, creating joint efforts to achieve goals inside the organization. international mergers arre more likely to bring together people with different values and beliefs about the work place. So, merger implies the reconstruction of a new social indentity.
According to Datta and Grant, 1990 tow organizational integration variables are relevant in the acquisition process:
- the motive for the acquisition (decision making process): it influences the degree of required interaction between members of each organization.
- the process of implementation: it proves if the strategy is or not effective if it leads to high levels of tension and conflict
acquisitions selection decisions are driven by financial and strategic considerations
ACCULTURATIVE PROCESS
according to Nahavandi and Malekzadeh, 1988 this process discribes 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?
the practical steps to minimize the feelings expected by employees are:
- mantaining competitiveness
- Sustaining performance momentum
- Driving employee engagement and commitment in tough times
- Seizing the slowdown as a time to build capability
- Building new skills and capabilities required to win in challenging times
- Maintaining knowledge, skills, and capabilities in the face of extraordinary turnover caused by downsizing
- Sustaining organizational culture
- Providing essential messages through the downturn
- Reinforcing one of the most powerful change resources
- Ensuring continued employer attractiveness/employee value proposition
- Shortening time to employee effectiveness
- Building leaders who can teach leaders
- Ensuring a robust leadership pipeline
- Driving strategic alignment
- Encouraging continued innovation
- and external orientation
- organizational culture: http://www.nhorizons.ca/en-change-culture-change.asp
- Alzira Salama, Wayne Holland, Gerald Vinten (2003) "challenges and opportunities in mergers and aquisitions: three international cases studies-Deutsche bank-bankers Trust; British petroleum-Amoco; ford volvo" journal of European industrial training. vol 27 Iss:6,pp313-321
- cultural change: http://mavilabe.blogspot.com/2011/01/organizational-behavior-national-and.html
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