Merger Acquisition/Transition Plan. Essay

2759 words - 11 pages

Merger/Acquisition Transition PlanIn the midst of a merger/acquisition transition, it is important to assess the theoretical and practical dimensions of effective leadership. Utilizing the Path-Goal leadership theory, an effective leadership plan can be developed. There remain several communication and empowerment issues teams must face during a merger/acquisition that will be discussed in detail in the following paragraphs. The plan will also address the needs of the group, and provide individual and organizational expectations to team members.Effective LeadershipThere are five different types of leaders: charismatic, traditional, situational, appointed, and functional. A charismatic leader gains influence mainly from strength of personality, e.g. Napoleon and Hitler. The difficulty with charismatic leadership is few people possess the exceptional qualities required to transform all around them into willing followers. A traditional leader is one whose position is assured by birth, e.g. kings, queens and tribal chieftains. Situational leader's influence can only be effective by being in the right place at the right time. This kind of leadership is too temporary in nature to be of much value in a business. Appointed leaders possess influence, which arises directly out of position, e.g. managers and supervisors. This is the bureaucratic type or leadership, where legitimate power springs from the nature and capacity of the position within the hierarchy. A functional leader secures one's leadership position by actions, not words. Functional leaders adapt their behavior to meet the competing needs of the situation (Burns, 2000).Characteristics of Effective LeadershipLeadership is something more than just morality and intellect; it is also more than just personality or accident. Instead, it is intimately linked with the person's education and behavior. A modern leader should be able to interact with people because leadership is essentially a human process at work in organizations. The basic elements of leadership are the leader himself, the subordinates, the goals and the environment or situation. The role of the leader is to formulate a group according to its needs and direct the group towards its goals. The style of leadership and the reactions of the group are determined considerably by the situation.In small groups the role of a leader is to have a close relationship with subordinates and to motivate them for the activities that must be accomplished. In this case the leader needs to show certain personal skills: the ability to manage the given situation, make decisions and to be self-sufficient.At the same time a leader should be able to satisfy the interests of the group within the limits of the people's rights and by not using subordinates for one's own personal benefits. There are three classic types of leadership: Autocratic, Democratic, and Laissez-faire. All play an important role in the personal behavior of the leader affecting his or her...

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