Three Key Elements of a Merger Plan to Achieve Successful Merger
As a leader/manager, one circumstance you may encounter is the necessity to integrate or merge two organizational units. This can be a stressful period which, if not properly managed, can cause a good deal of tension and/or conflict, often leading to decreased organizational performance.
Consider that senior management has dictated that your unit will merge with another manager’s unit over the next three months. You will be the leader of the newly merged group. The previous manager will remain on your staff. Senior management has asked you to submit a merger plan. (If you have previously been involved in an actual unit merger, please share the organizational dynamics you experienced as well as any lessons learned.)
Discussion Question
What are the key issues/challenges/opportunities you face, both short- and long-term?
Describe three key elements of your merger plan and explain the sources of power that will be available to you upon which you will draw to help achieve a successful merger.
Discussion Post
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Discussion Post
The senior management could decide to merge two organizational units for various reasons. While researchers conceptualize motives for business units’ integration in different ways, using distinct theoretical frameworks, the rationales are typically categorized into strategic, managerial, or financial (Junni & Teerikangas, 2019). Despite being the proposed leader of the newly integrated group, I faced challenges related to synergies miscalculation and integration issues both in the short term and in the long term, after the senior management integrated finance and sales units. First, the senior management executed the business units' integration with misguided perspectives concerning realizing synergies, notably because the two units contributed differently to the organizational success. Second, the two departments had different operations before the integration. The merger constituted a change with the potential to change many underlying processes behind how the two units operated (Gavin, 2019). In the long term, integration issues and synergy miscalculation deteriorated organizational performance as efforts to consolidate workforces and operations took excess costs and time.
The three elements...
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