To Merge Or Not To Merge

Session 4 - Part A - Strategic steps for merging two companies

Company Q of 200 employees based in India is merging with Company U of 15 employees based in the UK. Several communication aspects and strategic decisions need to be addressed and taken into consideration in order to make the merging process smooth.

Emotional Aspects

During this process there will be a number of emotional aspects that will affect both companies. These include:

1) The new hierarchical structure of the organisation, which will affect all individuals in the companies. There will be a new disciplinary system in the new hierarchy which employees may feel put their jobs at risk. Employees will be nervous about their ability to work efficiently in the new environment, under the new rules.

2) New routines need to be adapted, which may become problematic for those who are resistant to change.

3) Fear for both Companies of cultural differences

4) Company U employees may lose their independence an/or the way of work.

5) Company U will be happy and excited as the company is merging with a large company and is being transformed.

In order overcome these problems, the companies need to improve their communication. The following strategies have been identified as useful tools the company could adopt.

Improving Communication

1) Informal social gatherings could be used for team members to build rapport if possible. They should take into consideration, the physical constraints.

2) An organisational structure chart would clearly illustrate the levels of authority ensuring the employees are aware of everyone's position in the hierarchy.

3) A report and presentation on both sites, clearly stating the reasons of the merger and it's benefits to company U employees, will decrease the sense of apprehension shared by the employees.

4) Information should be provided detailing the standardised procedures e.g. report writing, meeting rules and documentation.

Support of Information Technologies

Information Technology is essential and a key tool for effective interaction within the newly merged organisation. The methods identified as useful tools in this case include the company intranet, to both exchange messages, share information, and publish all relevant information about the company.

Cross-border meetings can be conducted via video conferencing. This will ensure visual feedback during meetings at real time. Emails can be used as tangible artefacts to document the employees' understanding of the messages exchanged.

People and Technology - Session 3

Communication - From Smoke to Cell-Phones

Communication is the process of getting across a message from a sender to a receiver using a common medium. It has been a crucial part of our daily lives for centuries. Throughout history, the medium of communication developed greatly, from the most basic medium of symbols and cave paintings, to the introduction of languages becoming one of the most reliable forms of communication.

The Differences between modern day and ancient communication include the different processes that were required to deliver a message. Presently, information can be processed and delivered in a matter of seconds, whereas in the past, delivering it had to be planned in several stages to ensure it was received.

An example of this could be planning an event. At present, mobile phones, text messaging services and email services are a few examples of different means of communication that are used, and take seconds to deliver a message over a great distance. The same scenario, in the past, would have required a number of planned procedures. Initially, the public's attention would have to be sought. This could have been done by using smoke signals that were adopted and used both in the Americas and China. After this, the message itself had to be delivered to the intended party.

Another important difference identified was that modern technology, such as the mobile phone, allows us to send messages specific to one person. This was not the case in the past, where if a person-specific message had to delivered, it had to be via face-to-face communication.
The leadership method used in the past was more of an Autocratic leadership style. If a decision was made, no modification could be made for the convenience of the participants. Presently, a more Democratic style is adopted, where a tentative plan is proposed and this is followed by discussion to cope with the different schedules of the participants.

The main similarity between modern and ancient communication is the use of the Cultural-Historical Activity theory to best describe the delivery of an activity. The Cultural-Historical Activity theory clearly shows the different processes that are required for the development of a plan. The 'Subject' or idea is needed before any event or activity can be delivered. In this case, the event, is the idea. Usually, there is one initiator of this idea. The 'instruments' are the tools of communication that are used to convey the message. This theory describes both past and present methods used.

Another similarity includes the necessity for a preliminary meeting before the actual event is conducted. Both modern and ancient methods would have required such a system to ensure that the end-product achieved its goal.

Communication has influenced the way we live our lives, our families, communities and even the world economy. The need for faster and easier means of communication continues to drive the world even today. We wait with great anticipation to see if the cell-phones of today are the smoke signals of yesterday, tomorrow.