EXECUTIVE PROPOSAL 4
Organization Plan for Merger
The first step is to develop a communication plan. To reduce behaviorresistance, it is necessary to create a communication plan, whichinforms workers from both companies on the merger (Napier& Stratton, 2013). Workers are the ones most affected bythe merger and have the right to know about it prior to itsimplementation. It is an important ethical issue, which the companywill consider and communicate prior and during the merger.
Communication will be through different channels of communication.One is an internal messaging system, through which electronic mailsconcerning the merger, reasons for the merger and expected benefits,will be sent to all parties involved. Another channel ofcommunication is forming a transition team. The team will comprise ofpersonnel from both companies, acting as representatives, whichenhances timely communication on any change.
After communication of the merger, not every individual will beexcited. Most likely, the personnel from the company being acquiredmight find the information devastating. This is because they areworried about their job security. Thus, the next step will be todevise a rational choice paradigm. According to the rational choicetheory, the basis of many human decisions is maximizing anindividual’s personal gains, whereas reducing what can hurt theperson. The paradigm will inform personnel on the process of theirintegration into the merger and their duties. In addition isinforming on how the merger will benefit, the company and all partiesinvolved. This reduces resistance to the merger, because workersbecome more open to the idea.
Next is assisting in the management of psychological impacts of themerger on personnel. The merger will cause relevant changes and thereis a possibility of resistance to the changes (Barros& Domínguez, 2013). Workers may react by resigningbecause of fear, whereas those remaining experience stress.Work-related stress encourages resistance to change. To managestress, the recommendation will involve working with the humanresources team in coming up with a plan. This plan will be sent toall parties involved to reduce stress deriving from shock or fear.
After ensuring that workers are aware of the merge, the other step isto create a shared vision. The shared vision becomes the organizationculture and power (Tsai, 2011). It defines the expectations followingthe merger and acts as the guide on any actions that the companyundertakes. Power in this case referring to the rules, values andshared beliefs that will be created to suit the needs of parties fromboth companies.
The learned needs theory notes that achievement, influence as well asaffiliation are what drive people (McShane& Von Glinow, 2013). In avoiding behavior resistance, itis necessary to motivate personnel. Employee motivation becomes asubsequent step. This entails finding ways to motivate personnel tobuy in the idea of a merger. Employee motivation will be throughproviding better work conditions. Improving the performance ofpersonnel as well results in improving perceptions on the merger. Atthis stage, personnel from both companies will be asked to contributetheir ideas on how the merger will run business in order to becomesuccessful.
As personnel work together, it becomes a team process where they areable to exchange ideas and create rapport. In turn, this decreasesthe chances for behavior resistance. Last, is to create a fairorganization structure. Equity theory notes that workers who perceiveinequality seek to reduce it, which can happen through negativebehavior (McShane & Von Glinow,2013). Hence, the organization structure will consider theneed to create new work arrangement that suit the needs for allparties involved.
Barros, R. H., & Domínguez, I.L. (2013). Integration strategies for the success of mergers and acquisitions in financial services companies. Journalof Business Economics and Management, 14(5),979-992.
McShane, S. L., & Von Glinow,M. A. (2013). Organizationalbehavior (6th ed.). NewYork, NY: McGraw-Hill/Irwin.
Napier, N. K., & Stratton, K.(2013). Communication during a merger: The experience of two banks. HumanResource Planning: Solutions to Key Business Issues Selected Articles, 12(2),119.
Tsai, Y. (2011). Relationship between organizational culture,leadership behavior and job satisfaction. BMC Health ServicesResearch, 11(98), 2-9.