Merger and Acquisition happen all the time. But many companies unable to stimulate growth post mergers due to conflicting corporate cultures. Managing human resources means managing the people and cultures. In merger and acquisition (M&A), it is not merely as easy as putting two cultures into one bowl. Instead, it challenges the management to consider any possible culture clash, address employees concern due to management change, and the need to define the new company’s directions. Although managing cultures can ensure the smooth transitions in M&A, many executives regard managing culture is a low priority compare to the financial deals and strategic aspects (Marks & Mirvis, ...view middle of the document...
Often times, Merger and acquisitions follow by layoff. When two companies merger, having two managers in the same division will not make sense because considering the efficiency. In HR practice, merger and acquisitions mean organizational redesign that includes restructure the job analysis in the company. During merger and acquisitions, “job analysis helps provide a systematic basis for comparing the content of jobs that existed in the separate companies, which is essential when deciding where jobs can be eliminated” (Jackson et el., 2012).
The main issue with M&A is seniority issue. In many cases, “acquiring managers from the stronger or larger company are prone to adopt an attitude of superiority and treat the members of the target firm as inferior” (Marks & Mirvis, 2011). This argument supports the Social Identity Theory; “organization members show a positive bias toward members of their own in-group and tend to hold a negative view about the members of an out-group in order to enhance the relative standing of their own kind” (Marks & Mirvis, 2011).
III. Cultural Pluralism, Integration, Assimilation, and Transformation
a. Cultural Pluralism
“Cultural pluralism defines combinations wherein the companies established a relationship based on mutual coexistence or, more frequently, where the parent company grants a subsidiary a measure of independence” (Marks & Mirvis, 2011).
b. Cultural Integration
c. Cultural Assimilation
Cultural assimilation is probably the most common endstate, especially when there is a difference in the size and sophistication between the lead and target firm (Marks & Mirvis, 2011).
d. Cultural Transformation
In transformational combinations, rather than value premerger strengths, it is useful for HR interventions to...