Using the same scenario as Week 1 of this Discussion, answer the question in bold below:
In describing three key elements of your merger plan, explain the sources of power that will be available to you and upon which you will draw to help achieve a successful merger.
My Week I Discussion was as followed:
Many mergers fail due factors such as poor motivation, management styles, uncertainty of long-term goals, and poor communication among others. Merging the two organizational units creates uncertainty for the employees of both groups (shrm.org, 2016). Employees may fear changes such as layoffs that could significantly influence productivity. Additionally, tension from members of the newly formed group, especially, if the groups were competitors, could significantly influence employee morale and commitment affecting productivity. If the takeover from the previous manager was hostile, then facilitating the change process could be a challenge to the new manager.
Long-term changes such as changing roles could occur due to the combination of the two organizational units where some employees could have new position roles in the newly formed unit. Job descriptions could be altered of various positions that could lead to confusion of roles if not well communicated. As the new manager, I should communicate to all employees of the merged group their new roles and who they should report to. I should ensure that all employees fully understand their role in the newly formed organizational unit for effectiveness and efficiency (Symes, n.d).
The previous manager and employees may be biased towards people of their original organizational unit that could make running the merged group a challenge. Loyalty from the previous manager could be an issue and he may leave the organization as soon as he gets a better offer (Hennessey, 2014). Like other employees, the previous manager could fear change since he has been deprived his managerial position that could lead to poor performance in his new role. I should effectively communicate with all the employees at every step of the merger process to ensure that they understand their roles in order to meet fully the organization’s objectives. Effective communication entails providing all employees of the merged group with information of the vision of the group and expected future outcomes. This should help provide employees with a sense of control as well as increase their coping abilities on their new roles. It will also provide assurance that any problems they encounter due to the merger will be addressed. Being honest and truthful to all employees of the change process includes sharing information of what is happening (shrm.org, 2016).
A great opportunity is to fully utilize skills and knowledge of persons of the merged group. I believe that working together with employees from both organizational units can help generate more innovative ideas that will enhance productivity. The combined skills should improve the organizational unit’s skill-sets as well as increase other employees’ pool of knowledge enhancing productivity. Reduced costs such as sharing of office space and elimination of duplicate tasks can reduce expenses and the money can be budgeted for other areas that need improvement.
Hennessey, B. (2014, April 30). Merging Two Companies Is Hard. Retrieved from Forbes:
Managing Human Resources in Mergers and Acquisitions. Retrieved from Society for Human
Resource Management: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/mergersandacquisitions.aspx
Symes, S. (n.d). The Role of Human Resources in Mergers and Acquisitions. Retrieved from
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