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.
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.
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