Saturday, March 8, 2014

The cultural elements of Mergers, Acquisition

















People have the power to make or break organization  restricting

Employes must consider cultural process before deciding on mergers acquisition because the integration of people is important in organizational restricting employers usually focus on financial and strategic issues and ignore HR issues forgetting that the behavioral dimension in two companies significantly differs.

Management should realize that cultural factors have the power to make the new organization active. Any structural change due to a merger brings anxiety to people what makes employees panic is the possibility of restricting and the resultant reduction in man  power or redeployment Insecurity and dolts about the future plague their minds.

Employees of the acquiring company face a specific set of issues. Those with successful records and result orientation skills are moved in the acquired  company these employees people handling skills may be questioned as there is no glare tee that they will continue to excel under a new management as the value system in which they were groomed is absent they will struggled to relate with there new colleges

It is dangerous to ignore employees anxieties and for an extended period the management must communicate the change management before and after a merger decision .the CEO must conduct a town hall meting explain the changes to employees.

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