Merger/Acquisition Transition Plan. Essay

926 words - 4 pages

Merger/Acquisition Transition PlanMergers/Acquisitions are complex and risky endeavors but this is a common and accepted strategy in business today. This plan will help create a strategy for leadership (path-goal theory) to address the needs of the group. This plan will provide organized information to help make the right decisions, simplify the integration process, provide business information, processes, and identify expectations. The implementation of this plan will benefit the business by integrating efforts to reduce business risk, help the integration be organized, managed, and cross- functional. Finally this plan will help management continue to focus primarily on running the business while the merger/acquisition is underway.Effective leadership is a must for all companies in business today in order to provide valuable goods and services and to employ skilled and motivated workers. Never is there a time when effective leadership is more important than during mergers and acquisitions. Employees from both companies are usually anxious, apprehensive and unsure about their future employment. It is important that leaders from both organizations provide stability and motivation to the employees.Recently GK Genomics was purchased by a sole proprietor. GK Genomics was a small company that did not utilize the most expensive and technologically advanced equipment available. However, they did have a diverse workforce with a vast amount of knowledge that has yet to be put to use. The structure of the previous owner of GK Genomics did not allow the employees to fully use their talents or capabilities. The employees of GK have since become unmotivated and skeptical about the merger with the new company.Management from both companies agree that GK Genomics has the talent and resources to be profitable and competitive in the field of genomic research. It is will be up to the new management team to turn the behavior of the workers around and begin to develop a unified team. The managers have gotten together to develop some outlines for the new management teams. Based on research and knowledge of effective leadership the new company has developed an effective leadership model. The new leadership team's first objective is to examine the determination and optimism of the employees. In order to raise productivity and boost morale the new management team will begin by talking to the employees and gathering their views on how to make the workplace better. This beginning step will take place in all departments in order gather the information needed to create efficient workers.The idea behind the development of effective leaders is to create a management team that the employees respond to and respect. Research has shown that an effective manager can follow the path-goal theory developed by Robert House. The term path-goal is derived from the belief that effective leaders clarify the path to help...

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