Challenges of mergers and acquisitions

Document Type:Thesis

Subject Area:Psychology

Document 1

However, in most cases, the process of mergers and acquisitions face great challenges. To mention some of the most common challenges include, communication challenges, employee memory challenges, and cultural problems. These problems are highly propelled by the habit of a company to overlook the role of employees and only focusing on the market. Seemingly, having a successful merger and acquisition process is very difficult. Communication challenge Communication challenge is the most critical problem that most companies face while undergoing the merger and acquisition. More importantly, the employees of both involved parties should be engaged in the whole process of the integration (Cartwright 78). The management can share the information about the progress of the integration through various platforms that are available such as email.

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Nevertheless, the companies’ management should always be aware of the expression of fear, questions, and concerns that the employee may have. An effective response to the employee concerns and questions will build the employees trust and will significantly yield to a successful merger. A clear illustration of the necessity of maintaining excellent communication skills while managing a merger project is that of the BenQ and Siemens. They should have considered the variance of the culture between the two companies. Apparently, conflicts have been having been an experience between Germany and their counterparts, the Taipei Headquarters, on the strategies of the new product development. After the acquisition, BenQ evoked a series of tactical changes. They assumed that their German partners would understand, but it was never the case.

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In addition, they further believed that the employees would be contented with the new implementations and they would cooperate. These feelings are iconic for determining the employee’s future at an organization. The organization must always work extra hard to maintain or rather to redeem the employee’s trust to keep them. Reduction and replacement method play a vital role in the amalgamation of the merger and the acquisition. It is the role of the management to ensure that there is sufficient flow of information and connection between the employee and the organization managers. As well it is a better way of ensuring transparency in an organization. Different companies have different cultures hence the process of the merger is such critical (Dreu and Gelfand 45).

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Companies that have cultures that add up together have a higher probability of merging successfully. Undeniably, when mergers and acquisition happen the new company tends to assume new culture as the management techniques, and strategies change. However, when these changes happen just abruptly, it causes negative implications on the people concerned at a company. Daimler and Chrysler's companies give a good illustration of how cultural difference can cause a crisis on merging and acquisition. Every organization should observe legit communication skills as well observing the cultural values. Through considering the employees’ opinion, the manager will be able to understand issues of concern before they develop into a threat of a company. Works Cited Bradley, Lori. "Mergers and acquisitions as collaborative challenges.

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