Communication to existing employee and management right after merge
Employee communication Strategy In HBR case study “Who Goes, Who Stays?” Steve and Kasper lack on important communication with the employees. They should have begun communicating with their employees as soon as possible in the merger process. Should have considered informing them of company desire to merge with, acquire or be acquired by another company before they begun searching for a counterpart to the deal, if possible. They should have given employees plenty of time to provide feedback about the deal and make personal and career arrangements, if necessary. Any type of change is challenging for most employees, and being part of an acquisition or merger can
…show more content…
Not telling your troops the “truth” will change Be honest. Tell employees that you don’t have all the answers now and that the truth will change from day to day. Help them understand the volatility of the situation. Solution: An effective communication to employees about strategy, targets, and initiatives is vital if employees are to contribute to the strategy. A merger is an agreement between the owners of two companies to combine the operations and brands of both companies into a new, single entity (Merge ahead, 2012). An acquisition occurs when one company purchases and either absorbs or sells another business, with or without the approval or the company's leadership. Mergers and acquisitions affect the employees of all companies involved in a number of ways, making effective and timely employee communication vital to ensuring that the transition flows as smoothly as possible. Given these challenges, it is essential to keep the following points in mind when planning and managing communication during a merge and acquisition.
Flow Diagram Retrieved from: Reflection on M&A, 2007
Discovery Different types of deals drive very different messages about the possibility, content and effect of change. Be very specific with employees when talking about likely outcomes and possible
Mergers and acquisitions have become a growing trend for companies to inorganically grow a business within its particular industry. There are many goals that companies may be looking to achieve by doing this, but the main reason is to guarantee long-term and profitable growth for their business. Companies have to keep up with a rapidly increasing global market and increased competition. With the struggle for competitive advantage becoming stronger and stronger, it is almost essential to achieve these mergers. Through research I will attempt to dissect the best practices for achieving merger success.
“Employees [often] attach themselves to their organization via duties, co-workers, and work routines, and the application of personal skills, performance, and career goals (Yoon, K., & Kim, C., 2015, p. 5). Thus, when a mergers and acquisition occurs, employees may experience significant stress or anxiety. These feeling are often further exacerbated by a fear of cultural conflicts, a fear of organizational restructuring, a fear that they will be less valuable or inferior in the newly formed organization (Yoon, K., & Kim, C., 2015, p. 6).
The board and administrative staff can calm the fears of the staff before and after the consolidation by first reframing using dividing terms such as the word “us” The two organizations will be merging therefore the boards will have to come together to avoid sides. Human resource managers will also need to step in and help manage employees. To help human resource managers can create employee suggestion programs. This will encourage employees to create and identify improvements, process, and outcomes for the
Mergers and acquisitions are a stressful time for any company, regardless if they are the purchaser or the company being acquired. It is important to remember that the goal of this acquisition is meant to positively impact both companies and every one involved is responsible for continuing to bring the customers value. Every department involved is going to have a unique set of challenges and the human resources department is no different. Human resources are going to be responsible for managing any problems regarding employees as this merger continues. In order to prepare for any anticipated problems this report is going to focus on three specific areas; sharing information with employees, managing personnel changes and lastly managing geographical consolidation.
Because of the hasty decision to implement the change there is a very high risk of employee resistance to change. The upper management had no investment in the decision and will feel a resentment and lack of control that could trickle down through the organization. The dangers her are that original companies will become infected with a negative attitude toward the new parent company causing
When information is shared between the two companies it makes the whole organization better. Utilizing programs to show how effectively the company is operating can help show areas of concern. These can be accessed and addressed in a timely fashion . Because each side would like for the company to thrive, they work together . During this merger roles of the employees / department should be clearly defined . As with anything the lack if knowledge or understanding is what cause failure. As I have started before knowing when employees are aware of their roles and how to do them effectively thing run much more smoothly and are done to standard. (work by rote) .when the employee fails to understand the organization Does as well . While it s the employees job to stay well informed it is also up to management that these things be made clear. During a merger the by learning different ways of comp,eying task employees learn and management s able to vine up with new techniques.
Leading by example is the most effective way to produce results. The middle managers in most companies are more approachable than top management; therefore it is imperative that middle managers are on board with the new vision of the company and display this in a positive way. While the merger is occurring it is essential to build a team atmosphere, full of open communication, honesty, and teamwork. Each employee from both companies should feel as though their positions is important, and their cooperation is essential to the success of the forming company. Once the merger is complete, it is all about the new culture, staying visible, approachable, and communicating information early and often (Bolton & Lewis, 1998). Aside from ensuring employees are blending well, it is important to focus on patient care. There will be changes implemented at every phase of the merger, but it is important not let misunderstandings, or issues within the staff affect the quality of care given to the patients.
As critical as planning for culture fit is the need to communicate throughout the merger process. A clear and thoughtful communication plan can go a long way in easing concerns, distrust and resistance as employees are challenged to go from the known to the unknown. (Gunn). Even though, we experience many changes, the leaders communicated with us the plan and the timeline to provide a vision and clarity. Jaclyn stated, “They were all very open, if you have questions, please come to us. If you 've got concerns, please come to us. There wasn 't any sort of we need to be quiet; we need to keep quiet”. (Personal communication, September 21, 2015) Furthermore, the leaders worked nonstop to resolve the system issues we encounter and they were attentive to how this affected us. They provided a timeline of what will happen, and when it will happen. According to “Organizational Change and Development” resource, “The key to avoiding or handling resistance to change based on lack of understanding is to communicate clearly what the change entails”. (Organization Development). In addition, I believe we all experience the “DADA syndrome”. The process people go through when
The case study talks about the proposed takeover of Bushwhacker Mining Pty. Ltd. by Coongan River Ltd. (CRL). With the decline in gold prices, CRL has considered the option as Bushwhacker’s success in the gold industry was due to its highly skilled management team. Majority of the Bushwhacker staffs were formerly CRL staffs, which had left CRL because they did not like the way CRL was structured, in addition to its culture. The senior HR Manager of CRL, Bob Cowdrey, is aware of Bushwhacker’s management, and plans to use the takeover as a catalyst to make similar changes to other divisions within CRL. However, to achieve an effective takeover, Bob must resolve several issues that could affect the outcome of the
Communication is a vital element in at these stage of change process, constantly relaying information to all stakeholders including employees who might be laid off in the merger process, managers and administration. Bozak (2003) clarifies the above saying opening up and been honest and truthful about communication settles doubts in the minds of players involved the change process, which creates a “sense of security and trust in all those involved with the proposed change.” The inclusion of direct employees in the change processes like planning and decision making will promote a feeling of belongingness and empowerment, which in both long and short run will help to overcome majority resistance, because they understand the benefits to them, the company and their target clients. During the unfreezing stage, the important point in this stage is actively engaging all parties to work towards accentuating the positive driving forces and diminishing the restraining forces so that the merger and the inherent changes are successfully
From the beginning of his campaign to now, Donald Trump has emphasized his belief that the needs of America need to be placed before the needs of other countries. This is supported by the statement that “[America] is the only country in the world whose immigration system puts the needs of other nations ahead of [its] own. That must change” (Immigration reform [Trump], 2016). Even though he plans to implement policies that promote American opportunity in regard to changes in immigration laws, Donald Trump is at a disadvantage when it comes to policy because he is primarily a businessman and not a politician. That being said, however, Donald Trump still believes that he can make America great again through his immigration reform. Towards the beginning of his campaign, Donald Trump voiced his plan regarding the process of immigrants gaining legal status, saying that he “Would get people out and [he] would have an expedited way of getting them back into the country so they can be legal” (Corasanti, 2016). However, a year later in August of 2016, he stated that “For those here today illegally who are seeking legal status, they will have one route and one route only: to return home and apply for re-entry like everyone else under the rules of the new legal immigration system” (Corasanti, 2016). Donald Trump’s proposed immigration policy has also evolved over the course of his campaign when it comes to the prevalent topic of deporting 11 million undocumented
Organizations need to be aware that within this type of arrangement an element of chaos can exist, from department integration, duplication of services and regrettably, employee layoffs. With this in mind, the effect of a merger or acquisition on employee morale can be significant to the reorganization of the new integrated health system. Identifying and addressing areas of concern proactively will allow for a positive impact on the hospital department performance, as well as create a sustained advantage by achieving the ultimate strategic goal of integrating two cultures.
Many challenges occur when a merger occurs; especially when it occurs among competitors merge two different organizations into one facility per se disrupts the operation and functionality on all levels involved within the organization. During this transaction, it is an opportunity to combine many knowledgeable individuals, introduce new styles of performing tasks, and introduce different styles of performance.
I believe criminology is the course for me because I am interested in learning about crime and criminal justice theories and also the psychological and sociological side of criminology. From a young age I first became interested in anything to do with criminology and investigative works simply by watching fictional television programmes such as Morse, Agatha Christie and Medium. The process that was taken into investigating these crimes and the way in which the Detectives solved these different cases has always fascinated me. The series ‘Silks’ particularly attracted me and it has given me an interest in pursuing a career in working possibly as a Barrister’s Clerk. Through these various programmes it has helped me to develop an interest
2. When an acquisition takes place, there is usually a lot of concern on behalf of all the company’s employees. Not only the company that is being acquired also by the company that is doing the acquisition. Usually there will be jobs lost, consolidation of positions, promotions, demotions, etc. It is the responsibility of the Human Resources Department to ensure