Preview

Organizational Communication The Culture Integration In M&A

Powerful Essays
Open Document
Open Document
3809 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Organizational Communication The Culture Integration In M&A
Organizational Communication

The Culture Integration In M&A

1. Introduction

For a steadily operated company, the growth and expansion are indispensable to the business. And M&A is the main strategy for enterprise to achieve external growth. With economic globalization development, “M&A” has been growing quickly.It is becoming an important issue worldwide. Companies can realize rapid expansion by M&A. It has a lot of benefits like to improve the quality of companies themselves by strengthen the competitive force, to get more marketing channels, materials and product equipment, to reduce the marketing barriers and risks for entering and exiting. Specific to theoretical aspects, M&A can form synergy effect.

The so-called "M&A" refers to the mergers and acquisitions, it is a corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture.

In recent years, there are many M&A actions,but some of them succeed and some failed finally.Investigations have shown there are many reasons for this.But the one main consists in Human Resources Integration making out not to be good.Effective communication in human resource integration is not a guarantee to the success of the merger, but invalid human resources integration will inevitably lead to the failure of the merger. In the 21st century, the most important resource is human resource. To a certain extent, the competition of modern enterprises is actually the competition of human resource, and it is the well-publicized war for talent. How to integrate human resources is the main topic of enterprises’ M&A. Communication, in this progress, is a key issue. Many mergers do not create

You May Also Find These Documents Helpful

  • Better Essays

    “External Growth is when businesses grow by integrating (joining) with another business.”(Exercise Book) There are also two ways of externally expanding; merging or taking over. “Merging is when two (or more) businesses reach an agreement to join together and operate as one business. It tends to be mutually beneficial to both businesses. A takeover is when one business buys another business. This tends to be more hostile as the buying business is the main one to benefit.” (Exercise Book) Personally, I believe that merging is the better option for businesses to take. Throughout this report, I’ll be providing you with reasons, their evidence and experiences from past mergers and takeovers as to why I believe that merging with another business is the safer and therefore, better option.…

    • 1878 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Finance

    • 5399 Words
    • 22 Pages

    Mergers and acquisitions are formed in the hope that they will create value and there is a vast amount of reasoning on why they have been introduced. Businesses will try and create value for the company, shareholders, customers and employees. The present value of all performance enhancements attributable to management change would result in the increase in value from just by managing the assets more efficiently (Damodaran, 2005).…

    • 5399 Words
    • 22 Pages
    Powerful Essays
  • Powerful Essays

    Schuler, R., and Jackson, S. (2001). HR issues and activities in mergers and acquisitions. European management journal. 19.3, p. 239-253.…

    • 14821 Words
    • 60 Pages
    Powerful Essays
  • Powerful Essays

    Merck/Medco Case Analysis

    • 3129 Words
    • 13 Pages

    acquisition of Medco represents a $6.6 billion bet on where the future of the pharmaceutical…

    • 3129 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    As future HR professionals, it is important to recognize the issues that HR faces when dealing with a merger and acquisition and strategize ways to overcome these issues.…

    • 5441 Words
    • 22 Pages
    Better Essays
  • Good Essays

    Mergers and acquisitions are often planned and executed based on perceived cost savings or market synergies; rarely are the “people” and cultural issues considered. Yet, it is the people who decide whether an acquisition or merger works. The opportunity for HR lies in the fact that customer and employee reactions determine whether the newly combined company will sink or swim.. If a convincing argument is made to senior leaders, HR may gain more power to increase the effectiveness of the organization, and may be able to mold the cultural changes instead of being pushed along by them.…

    • 2368 Words
    • 10 Pages
    Good Essays
  • Better Essays

    Bushwaker Case

    • 1093 Words
    • 5 Pages

    Stevens, Symes. "The Role of Human Resources in Mergers & Acquisitions | Chron.com." Small Business - Chron.com. Accessed January 27, 2014. http://smallbusiness.chron.com/role-human-resources-mergers-acquisitions-23589.html.…

    • 1093 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Gm Merger Acquisition

    • 717 Words
    • 3 Pages

    Companies often implement corporate-level acquisition strategies to achieve product diversification that can build core competencies. In fact, acquisition strategy is the most common means of implementing diversification. For each strategy discussed in the book, including diversification and merger and acquisition strategies, the company creates value only when its resources, capabilities, and core competencies are used productively.…

    • 717 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    Although this was a Human Resource Management book the topics related to organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training all tie in to innovation and management process. With strategic management and innovation being a vital component to a company’s success, the topics that were discussed in the book provided great contents and steps on strategic management and innovation. The topics were useful and interesting with dealing with complex process of merging two companies together to create an international company that is powerful; the way that it suggested to accomplish this was expansion of a business. Uniting two diverse companies with distinct business processes, strategies, and cultures is a definite challenge of mergers, Involving companies from a different culture is even more challenging. People, financial, and operational processes need to be reviewed by executives in order for a new set of rules, procedures, and practices to be developed for the new company. This reference was good because it provided more than one way to accomplish globalization.…

    • 645 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Q3. Why would company seek M&A as a market entry strategy? What are the advantages and disadvantages of M&A? why might a merger fail and what might be the outcome?…

    • 3384 Words
    • 14 Pages
    Good Essays
  • Good Essays

    It is already well known that diversification is a false motive for M&A, because it is cheaper and simpler to diversify for certain investor than for whole corporation7. At the same…

    • 1105 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Ihrm

    • 3256 Words
    • 14 Pages

    Cross-border mergers and acquisitions can create a number of challenges with the HRM team. After studying the difference between mergers and acquisitions, I determined that both have their own individual issues when it comes to strategizing HRM. Mergers (when two companies enter an agreement to join their operations together), create a challenge with deciding which of the two HR teams will take over the newly merged operation. When a company merges, each company entering the agreement has to agree on which leaders from each will be the best fit for the position in the new operation. There are staffing issues such as twice as many employees, and wether there are enough new and existing positions to put them (if not, it could result in layoffs). Each company has their own policies and procedures that may have made that company successful, or even produced different types of services or products. A merger or acquisition can cause personell issues, which often go overlooked for a period of time. If not thoroughly analyzed, this type of agreement (M&A's) can produce a high failure rate.…

    • 3256 Words
    • 14 Pages
    Better Essays
  • Good Essays

    Merger of Ba and Iberia

    • 443 Words
    • 2 Pages

    In human resource management, when taking an employee’s perspective, a company’s merger can be considered as a major process of organizational change. Such a change can, at times, prove to be a major failure like the merger between Digital Equipment Corporation and Compaq (2002) or Daimler-Benz and Chrysler in (1999) both cases failed miserably due to cultural clashes. According to Albert and Whetten (1985), an organizational identity is defined by its key main features which are characterized by (i) what employees think is important to the company; (ii) what differentiates the company from other companies in its employees viewpoint; and (iii) what employees perceive as surviving, i.e., connecting the company’s past with its presence (cf. Gioia, 1998).When mergers take place, as shown in experience, many internal difficulties arise due to the organization’s structural change.(Buono & Bowditch, 1989; Larsson, 1990; Haspeslagh & Jemison, 1991; Greenwood, Hinings & Brown, 1994; Olie, 1994) in specific, new members join the new organization, which can then lead to human resource problems and difficulties like other areas of expertise in an organization face.…

    • 443 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    icici bak merger

    • 4929 Words
    • 20 Pages

    such M&A activities. An attempt has been made to analyze, “Is corporate restructuring a tool to…

    • 4929 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    HRMNFinalAssign4 2

    • 5168 Words
    • 16 Pages

    When one company merges with or acquires another, some changes to both organizations may occur, such as eliminating redundant positions or combining teams and departments. The process of altering the two organizations so they work together as one can take months to complete and human resources plays a vital role in the changes. Human resources communicates to employees changes in who they report to within the company, what team or work group employees are assigned to as well as any changes to different positions’ roles in the organization. Human resources may work with management and employees to alter the job descriptions of various positions, ensuring everyone understands his role in the newly altered organization.…

    • 5168 Words
    • 16 Pages
    Powerful Essays