THE ROLE OF ORGANIZATIONAL CULTURE IN MERGIN PROCESS

THE ROLE OF ORGANIZATIONAL CULTURE IN MERGIN PROCESS

Organizational culture:

A pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization. Is an idea in the field of organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization

Mergers and acquisitions (M&A) is a corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity

Integration process:

is the real source of value creation in acquisitions, it value could create through: economy of scale, economy of scope, increased revenue or market share, Geographical or other diversification and resource transfer

Merging: implies the reconstruction of a new social identity

The success of a particular integration strategy depends primarily on:

• The manager’s ability to reconcile the need for strategic interdependence between the two firms.

• The need for organizational autonomy

• The existence of cultural fit.

Given the current business environment, managers may want to focus on three particular cultural modifications:

1. Support for a global view of business.

2. Reinforcement of ethical behavior.

3. Empowerment of employees to excel in product and service quality.

According to the case studies, what are the practical steps to minimize the feelings of uncertainty normally expected by employees, and also to facilitate the learning process to occur between the two groups of people in their process of cultural and behavioral integration?

The cases studies demonstrate that the impact of cultural differences in international merging and acquisitions can be minimized when the company that buy the other company takes the time to create a positive environment before initiating any actual consolidation of human and physical assets . also appropriates integration strategies implementation can facilitate the learning and acculturation process resulting in minimizing the uncertainties in the work place and increasing the willingness to cooperate and to be part of a new cultural integration.

References:

Alzira S., Wayne H., and Gerald V. (2003) “Challenges and opportunities in mergers and acquisitions: three international case studies – Deutsche Bank-Bankers Trust; British Petroleum- Amoco; Ford-Volvo”, Journal of European Industrial Training, Vol. 27 Iss:6, p. 313-321.

Salama, Alzira, Wayne Holland, and Gerald Vinten. "Challenges and opportunities in mergers ans acquisitions. ." Journal of European Industrial Training 27 (2003): 313-321. Prin

Nelson, D and Quick, J.C. (2009) Organizational culture. In Organisational Behavour: Science, the

real world and you.

organizational learning and managing change

ORGANIZATIONAL LEARNING AND MANAGING CHANGE

Organizational learning:

Learning: is acquiring new or modifying existing knowledge, behaviors, skills, values, or preferences and may involve synthesizing different types of information. The ability to learn is possessed by humans, animals and some machines. Progress over time tends to follow learning curves. Human learning may occur as part of education, personal development, school or training. It may be goal-oriented and may be aided by motivation

Social learning theory: Explains human behavior in terms of continuous reciprocal interaction between cognitive, behavioral, and environmental influences.

Goals settings:

• Process of establishing desired results that guide and direct behavior.

• Lead to collective achievement

• Increases work motivation and task performance.

• Reduces role stress associated with confusing expectations.

• Improve the accuracy and validity of performance evaluation.

Learning organization is the term given to a company that facilitates the learning of its members and continuously transforms itself; learning organizations develop as a result of the pressures facing modern organizations and enables them to remain competitive in the business environment. A learning organization has five main features; systems thinking, personal mastery, mental models, shared vision and team learning

To obtain and sustain competitive advantage, organizations must enhance their learning capability and must be able to learn better and faster from their successes and failures, from within and from outside

What is the relationship between organizational learning and individual satisfaction?

The relation is very necessary and complex because the economic benefits can be maximized, they must consider the sensations in front of the organizations from his employees. For example, it is clear that when within the organizations clear and respectful policies towards the employees are handled they obtain great results of the work that those same employees realize. The organizational learning is a process in which important information, new, exclusive, proactive, its transmit of clear way to the employees, as long as is obtained this information is to the benefit of the company and its employees. When this process is related of positive way to desires of the employees can be spoken of a satisfactory process of benefits and a process that the makes successful relation between the administrative part and the productive part of the organization.

MANAGING CHANGE

Change:

The coping process of moving from the present state to a desired state that individuals, groups, organizations undertake in response to dynamic internal and external factors that alter current realities

Organizational change
Planned change	Unplanned change
Change resulting from a deliberate decision to alter the organization	Change that is imposed on the organization and is often unforeseen

Scope of change:

• Incremental change: Change of a relatively small scope, such as making small improvements.

• Strategic change: Change of a larger scale, such as organizational restructuring.

• Transformational change: Change in which the organization moves to a radically different, & sometimes unknown, future state

Is it possible to change corporate culture? If so, how?

Is possible but is difficult because People and organizations are creatures of habit, and changing habits is much harder than changing structures or systems. Culture is a complex system with a multitude of interrelated processes and mechanisms that keep it humming along.

But you could start with simple things like for example, if you want to create a faster moving, less perfectionist culture, instead of berating someone for sending an email without proper capitalization, send out a memo with typos in it. Or if you want managers and employees to communicate more effectively, stop checking your computer in the middle of a conversation every time the new message sound beeps. Instead, put your computer to sleep when they walk in your office. Or if you're trying to create a more employee-focused culture, instead of making the bride work on her wedding day, give her the week off. 

References:

Singh, Kavita. "An Analysis Of Relationship Between The Learning Organization And Organization Culture In Indian Bussines Organization.." Organizational Markets In Emerging Economies 1 (2010): 142-164. Print

Nadler, D. and Nadler, M (1998) Champions of Change: How CEOs and Their Companies are Mastering the Skills of Radical Change. San Francisco: Jossey-Bass.

 Nelson, D and Quick, J.C. (2009) Managing Change. In Organisational Behavour: Science, the real world and you.

LEADERSHIP AND MANAGEMENT

LIDERSHIP AND MANAGEMENT

“Management is responsible for maintaining order; leadership is responsible for producing change or movement.”

The difference between manage and lead is that the first is used  to direct or control the use of; handle, to exert control over, to make submissive to one's authority, discipline, or persuasion.

Obviously, management skills are important. Organizations need the capability of effectively managing the items and resources.

The rub comes when you start thinking about managing people. People aren't budgets or marketing plans. People are a resource in a whole other classification beyond the other resources of an organization.

People won't perform most effectively if they are being controlled or made submissive to authority. Effective management controls complexity

On the other hand, lead show the way by going in advance, to guide or direct a course, to inspire the conduct of. “Influencing, guiding in direction, course, action, opinion”. Effective leadership produce useful change

Types of leaderships:

Transformational leaders: Leaders who inspire followers to transcend their self-interests and achieve exceptional performance. Characteristics: Charisma, Individualized consideration, Inspirational motivation, Intellectual stimulation

Charismatic leaders: A leader’s use of personal abilities and talents in order to have profound and extraordinary effects on followers.

Authentic leaders: A leader who is guided by explicit values that emphasize collective interest, enabling them to operate at high levels of moral integrity. Not egocentric.

Management process

·        Reduces uncertainty

·        Provides stability

·        Components

·        Planning & budgeting

·        Organizing and staffing

·        Controlling & problem solving

Leadership Process

·        Creates uncertainty

·        Creates change

·         Components

·        Setting organizational direction

·        Aligning people with the direction via communication

·         Motivating people to action

·         Empowerment

·        Gratify needs

Do you work in an autocratic, democratic, or consultative work environment? What might be the advantages and disadvantages of each?

I would want to work in a democratic work environment because in this I could participate in the decisions and how employee could be informed about things that affect their work and shares decision making and problem solving responsibilities

Advantages of Democracy: Democracy can provide for changes in government without violence. In a democracy, power can be transferred from one party to another by means of elections. The jurisdiction of the citizens of a nation determines its ruling authority. 

This system prevents monopoly of the ruling authority. The ruling party has to make sure it works for its people for it cannot remain being the authority after completing its term unless re-elected by the people.

This brings in a feeling of obligation towards the people. This results in a feeling of gratefulness towards the people. It can serve as their motivation to work for the people for it is the common masses that have complete power over choosing their government.

Another important advantage of democracy is that the people gain a sense of participation in the process of choosing their government. They get the opportunity to voice their opinions by means of votes. This gives rise to a feeling of belongingness in the minds of the people towards their society.

Disadvantages of Democracy: not all the citizens are fully aware of the political scenario in their country. The common masses may not be aware of the political issues in society. This may result in people making the wrong choices during election.

As the government is subject to change after every election term, the authorities may work with a short-term focus. As they have to face an election after the completion of each term, they may lose focus on working for the people and rather focus on winning elections.

Another disadvantage of democracy is that multitudes can influence people. Citizens may vote in favor of a party under the influence of the majority. Compelled or influenced by the philosophies of those around, a person may not voice his/her true opinion. 

References:

Nelson, D.L. & Quick, J.C. (2010) Organizational Behavior: Science, The Real World and You. South 

Western College Publication, 7th. Ed.

Northouse, P. G. (2001). Leadership: theory and practice. Thousand Oaks, CA: Sage.

Lee, Jangho, Thomas W. Roehl, and Soonkyo Choe. "What makes managment style similar and distinct across borders? Growth experience and culture in korean and japanece firms." Journal of International Bussines Studies 31 (2000): 631-652. Prin

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