Post on 14-Jun-2015
description
B.V.Raghunandan, SVS College, Bantwal. Karnataka-India
Type of Merger decides the Mode of Integration
Identities are retained, lost and created Involves Integration of systems, processes,
procedures, strategy, reporting systems etc
Most difficult aspect is integration of people Mergers prompted by efficiency may
involve downsizing and consolidation Requires change of mindset, cultures &
behaviour Involves redistribution of power, conflict of
interest and divided loyalty
Power, Authority, designations and positions to be redistributed
New designations may have to be created
Style of management and working relations decide the culture in an organisation
Any serious variation must be tackled
Power - Autocratic
Role -Bureaucratic and Hierarchical
Task -Team Work and Project Assignment
Persons -Equality of Human Beings
Culture Audit should be conducted as a Part of Due Diligence
Methods of reducing the resentment of Top Management should have been devised
Where the methods are not sufficient, it may result in turnover of top management personnel and employees
Real Integration can not tart unless the resentment is removed
Assessing Speed of ChangeEstablishing Clear LeadershipClarity of CommunicationMaintaining Customer FocusMaking Tough DecisionsDealing with ResistanceTaking Focussed Initiative
Not creating sense of urgency for change Not creating powerful coalition Lacking vision for the organisations Insufficient Communication Lack of proper planning Ignoring resistance Setting easy targets and making show-
offs Not anchoring changes in corporate
culture
Board Level changesAppointment Heads of various
divisionsRationalising the functions like
production, research and marketingPerformance EvaluationRemuneration/RewardsKey People RetentionConflict Management