Conflict during Merger and Acquisition Process
Discuss About The International Agile Systems And Management.
Merger and acquisition are one of the latest trends in the world of business. Most of the large enterprises have this propensity of acquiring smaller enterprises which are productive and have a promising future. Examples of such acquisitions and mergers are plenty in recent times including Facebook acquiring Whatsapp and Instagram, or Google acquiring Android. The target is to take over a promising business entity and maximise its value. In this report, there will be a detailed discussion about two companies DeWaal Pharmaceuticals and BioHealth Labs and the process of their merger and acquisition.
The merger of two companies results in a merger of top positions as well. There cannot be two HR managers for one company, and before the merger, there was one HR manager for each company, so after the process takes place, they have to decide on one single HR manager who will lead the new company. This is true for all the top posts of the company. Therefore it is evident that there will be conflict in the process. As the people who have to leave the position would not do it without resistance. It is seen in this case that does not face such demotion people are planning to withdraw from the company even before the merger takes place.
Every organisation has its own organisational culture. This culture mainly depends on the region where the organisation is located and also on the cultural background of the people working in the organisation. The two organisations in this case study belong to two different continents, one from America and one from Europe (Netherlands) (Light, 2001). Therefore it is evident that there a significant difference in the culture of the two organisations. Consequently, the conflicting values lie with the cultural differences. Various theories and models can be attributed to organisational culture, and for the better understanding of the conflict in this case study, some of these theories can be discussed. Hofstede cultural theory and model can be used to understand the cultural difference between the two organisations and the possible conflicts.
Though the two countries are similar regarding some aspects of the model like Power Distance and Indulgence, and very close in Individualism as well, they have a vast difference regarding Masculinity and Long-Term Orientation. “The Netherlands” scores 14 on Masculinity scale measurement and is in this manner a “Feminine society”. In the countries which are termed as “Feminine”, it is essential to keep the “life/work balance”, and one ensures that all are incorporated (Bakir et al., 2015). A powerful “leader” is steady to his or her kin and family, and basic leadership in the community is accomplished and achieved through “contribution”. Supervisors make progress toward accord and individuals esteem “balance, solidarity and quality” in their working lives (Fahey & Glickman, 2012). Dutch are known for their long discourses and discussions, until the point when the parties have reached an agreement. The USA is just the opposite.
Cultural Differences between DeWaal Pharmaceuticals and BioHealth Labs
Integration, merger and acquisition is part of change in an organisational change that needs to be appropriately managed in order to keep situations under control and to implement top management staffing correctly the Lewin cultural theory can be applied for better understanding, This first phase of progress includes setting up the association to acknowledge that change is fundamental, which provides for separating the current conditions previously one can develop another method for working (Batras, Duff & Smith, 2016). The primary process of this is to build up a way in which the idea can be given that this process cannot achieve the result that is required. The demonstration is aimed at the thought of bringing a solution which everybody can understand and cope up with. To bring necessary amendments to the organisation to deal with the process should begin with the head of the structure– one has to challenge the “convictions, qualities, demeanours, and practices” that right now characterise it and makes an essential part of its organisation structure (Burke, 2017). It is also required to bring necessary changes to the infrastructure where the work will be held. This is because the two organisations are habituated in working in different settings and work culture there should be a balance between the two.
The unfreeze situation when most of the people feel vulnerable and helpless goes away in a while, and the people start accepting the changes, the new position and they start looking for better ways in which they can do away with the problems they are facing and adapt (Shirey, 2013). People begin to acknowledge and act in ways that assist the new heading. The advancement of the process of being rigid to the unique situation and the adaptability come in stages as the people take time to think about their position. Perspective is taking part in the new institution where a new process is put into place. The change carve is the process of starting from a static position hating the company to take part in the state. Exchange car presents the starting point at the low status of the change curve represents the position of people where they do not want to change and then to go up to the place where people proactively take part in the change. People start to think how this change in the organisation is improving their work life. If they perceive that the move will be good then automatically they take part in the shift.
Application of Lewin Cultural Theory in Change Management
When the situation is good, and it is seen that the people are proactively taking part in the change and settling with it, then the case again goes towards refreezing, this when better methods of working are achieved. The external signs of the refreeze from which the situation can be understood are “enduring affiliation plot, unsurprising arrangements of obligations, and so forth”. The managers and the upper administration must take care of the situation that the refreeze is well taken care of. This expresses ensuring that the actions are frequently used and that they are combined into the customary industry.
A point of struggle among the most troublesome HR issues following a merger is the demeanours of the employees and staff members (Cascio, 2012). Dependent upon the effect the merger has on their occupations, staff members can end up pushing, disillusioned or irate. Some might have scorn if mates or accomplices were offered promotion following the merger. Others are worried over how their occupations may change. Change is an essential explanation behind stress for a significant number individuals, and occupation parts habitually change through. Whichever affiliations specialist remains in charge following the merger every now and again impacts the course of pay and focal points in the new association. All things considered, if specialists get or experience consistency in pay and points of interest, issues are restricted. On the off chance that a few representatives are requested to take pay declines or face huge advantages cuts, grumbling and low spirit will probably come about (Kiitam, McLay & Pilli, 2016).
An association’s culture is all the natural characteristics, feelings and practices that choose how people complete things and achieve their targets (Gilin, Leiter and LeBlanc, 2015). Three critical segments in blend portray the culture:
- The behavioural benchmarks appeared by everyone in the organisation from higher-ranking pioneers to front-line specialists
- The essential capacities and judgement about “where and how” to battle, as described by the association’s framework
- The working model of the association—the “structure, accountabilities, organisation instruments” and techniques for working that create and maintain the arrangement for how work finishes
To fuse two companies, the company that acquires at the beginning describe the social focus in broad terms. This is never-ending work for the CEO—and the “CEO” must deal with his or her dedication until the point when the moment that the objective is made sense of it. It legitimises and requires incorporation at best.
Setting the merger arrangement in a general sense incorporates hard choices. An acquirer can adapt the association, or it can make a blend of both the organisation in a balanced way. Once in a while, it can even use the merger to bring in the “acquiree’s” culture into its specific affiliation. In case deliberately pitching item contributions is a key to the merger’s success, for example, organising the business drive culture will be crucial.
HR Issues and Challenges during a Merger
A significant part of the time, there is a primary differentiation between the “acquirer’s culture” and that of the obtained. Regardless, it can be difficult to exactly point out where, and how critical, the qualifications are. “Diagnostics” can perceive and understand and measure the qualifications among people, units, arrive regions and limits. They can in like manner empower the HR to make sense of which openings ought to be closed (McKenzie, 2015). An association can use an extent of instruments, including the following:
- Administration interviews for revealing authoritative styles and needs.
- Video and sound records of people in their occupations, allowing one beside other examinations of different techniques for working.
- Choice X-shafts and duty mapping exhibiting who is accountable for each component of critical decisions.
- Process stream maps are exhibiting how the capacity is done—routinely extremely novel in connection with one relationship to another.
- Client interviews proposed to perceive unique customer perspective of each affiliation (Moser & Kalton, 2017).
- Warmth maps exhibiting which groups are most basic in understanding the acquirement’s regard and where the best social gaps exist.
- Representative examinations are getting some data about accepted practices, perspectives and requirements.
These gadgets frequently incite profitable talks. One effective yield of specialist considers, for instance, is a “word cloud.” The administrator demands that people pick three descriptors to delineate both their specific association and the other one— a thriving, low-effort way to deal with begin the symptomatic strategy and to amass sponsorship around a more broad culture effort. The results, gathered by word cloud programming, consistently reveal structural complexities and give a start to open talk.
Hypotheses concentrated on human conduct and connections are not so much dynamic but rather more grounded in real human inspirations (Dalkir, 2013). Be that as it may, they can be excessively hopeful about the potential for developing commonly advantageous connections in the working environment. Workers and managers don’t generally have perfect interests. Administrators may now and again settle on choices that outrage workers while representatives may put their particular advantages over the company. Administration hypotheses because of ideas of authority and motivation may not give enough weight to that tension (O’Sullivan, 2017). Employees in most of the cases leave their employment because of poor management, a situation that increases the costs and expenses and brings down the ability return the invested amount in a business. Entrepreneurs ought to see great administration keeping in brain the “end goal” to make a “plan of action” that can enhance “worker profitability”, dispense with excess in procedures. Since supervision rehearses depend upon the suppositions of supervisors and representatives or a contextual analysis in a specific territory of business, they work best for casual associations. Little ambiguity exists regarding whether a management model will bear fruit because the repute of the model justifies itself with real evidence (Tovstiga & Farhad, 2017). Administration rehearses concentrate more on the flow between gatherings, which permits directors greater flexibility in settling on choices and enables representatives to work together as a unit when they cooperate on an undertaking. Entrepreneurs should combine administration “practices and speculations” because of their “plan of action”. An industrialist or startup owner will typically study and execute administration rehearses because he expects adaptability to support his business model. As his business develops, he may include a few components of “administration hypothesis” keeping in mind the end goal to formalise the necessary leadership and initiative characteristics of administration.
Conclusion
The trend of a merger in the international trading scenario has caused a lot of new more prominent businesses to come up. The merger though has many complications and lengthy processes, the result of a successful merger is always beneficial for the companies and employees. The case study which is studied above mentions a merger that has been not implemented in a balanced way. The companies going for a merger must evaluate the benefits for both the parties before final implementation. The cultural difference of both the organisations must be assessed and respected. The induction of the employees in the new company must include benefits for employees from both the sides.
Reference:
Bakir, A., Blodgett, J. G., Vitell, S. J., & Rose, G. M. (2015). A preliminary investigation of the reliability and validity of Hofstede’s cross-cultural dimensions. In Proceedings of the 2000 Academy of Marketing Science (AMS) Annual Conference (pp. 226-232). Springer, Cham.
Batras, D., Duff, C., & Smith, B. J. (2016). Organizational change theory: implications for health promotion practice. Health promotion international, 31(1), 231-241.
Burke, W. W. (2017). Organization change: Theory and practice. Sage Publications.0020
Cascio, W. F. (2012). Methodological issues in international HR management research. The International Journal of Human Resource Management, 23(12), 2532-2545.
Dalkir, K. (2013). Knowledge management in theory and practice. Routledge.
Fahey, K., & Glickman, C. (2012). Leading for powerful learning: A guide for instructional leaders. Teachers College Press.
Gilin Oore, D., Leiter, M. P., & LeBlanc, D. E. (2015). Individual and organisational factors promoting successful responses to workplace conflict. Canadian Psychology/Psychologie Canadienne, 56(3), 301.
Hofstede, G. (2017). Cultural Dimensions: Country comparison.
Kiitam, A., McLay, A., & Pilli, T. (2016). Managing conflict in organisational change. International Journal of Agile Systems and Management, 9(2), 114-134.
Light, D. A. (2001). Who goes, who stays?. Harvard Business Review, 79(1), 35-41.
McKenzie, D. M. (2015). The role of mediation in resolving workplace relationship conflict. International journal of law and psychiatry, 39, 52-59.
Moser, C. A., & Kalton, G. (2017). Survey methods in social investigation. Routledge.
O’Sullivan, P. (2017). 8 Transitioning the new CEO while embedding a merger. Coaching and Mentoring in the Asia Pacific.
Shirey, M. R. (2013). Lewin’s theory of planned change as a strategic resource. Journal of Nursing Administration, 43(2), 69-72.
Tovstiga, G., & Farhad, M. (2017). Post-Merger Growth Due Diligence. In Value in Due Diligence (pp. 187-205). Routledge.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
