Organizational Plan to Create Smooth Merger

Organizational Plan to Create Smooth Merger
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Rational Choice Paradigm
This merger is a rational choice activity aimed to increase value and utility of the newly formed company. The merger is a proactive approach that is taken to deal with macroeconomic processes caused as a result of economic disturbances (McShane and Von Glinow, 2013). The merger aims to create synergies that aim to develop efficiency and the net gain for both the two companies. The synergy is the increased performance which the newly merged company will achieve over that which separate, uncombined companies could have not achieved.
Ethical issues
Merging the two companies will raise ethical questions. For example, some questions deal with the extent in which the value system of the two firms will fit each other. A mismatch can cause serious problems on employees, customers, and shareholders. Another ethical issue deals with the rights of employees affected by merging the two companies. Some employees will be drastically affected by the merger because certain jobs will be eliminated or shifted (Weber and Rachman-Moore, 2012). Employees should be informed about the merger activity early enough, and they should be involved in the merger process.
Team processes
Team and work groups should not be disrupted during the merger, but their roles should be redefined, their working approaches should be changed, and a shared culture and vision should be developed. Team processes will run effectively when clear communication, strong vision and operational synergy are developed on shared working approach and open team culture (Bhaskar, 2012). Plan for change must be properly developed to sustain value newly merged company. Transition teams are necessary to facilitate the integration processes. Team performance and processes depend on developing a shared set of performance goals, a shared working approach, a common purpose and they must hold each other mutually accountable.
Improving perception
The merger may cause some anxiety, frustration, and uncertainty among employee, which may affect employee perception and attitude. Employees should be informed about the merger as early as possible. Management must discuss matters which are perceived importance behind merger frankly and openly to employees (McShane and Von Glinow, 2013). Employed should be informed about the opportunities that will be gained from the merger. This will help to improve employees’ perception and, therefore, can support the merger.
Work-related stress
The merger is an issue that may cause stress on employees because they may feel that they are going to lose their jobs. Management must be honest with employees since employees always appreciate openness. It is not good for employees to hear at the gate that they are going to lose their jobs. Management should tell employees about their job security rather than hearing from somebody else that employees are going to lose their jobs (McShane and Von Glinow, 2013). Probably the merger will cause the number of employees to be reduced, but the trick is to communicate this information so that competent employees should be retained while less competent employees should...