Change and Culture Case Study I
Change and Culture Case Study I
July 18, 2011
Case Study I
This paper focuses on the merger of company A and company B. The middle manager of a health care organization has the responsibility of combining the workforces of both companies, and re-structuring the systems and shape of the new organization. The task of making company C, the two organizations combined, is made more difficult due to the fact of prior competitiveness in the health care realm, with employees viewing company B as non-professional and lacking in quality care. Company B, however, has several inpatient and outpatient services that company A does not, validating the merger. So, this paper presents the effects of the merger, how employees are coached to work together, the new systems and shape of the organization, and the theoretical framework of the merger.
Effect of Sale
One of the effects of the merger of company A and company B is the power struggle and fights for control that arises from combining the two organizations. Company A was a smaller agency, with a definite hierarchal operating structure displaying a centralization of power, while company B was of a horizontal nature, scattering power from self-determined employees to upper management. Increasing the size of the organization is related to an increase in the structuring of the activities but decreased concentration of power. (Borgatti, 2001, para. 6)
According to Buono & Bowditch (1989) managers in the uncertain environment of a merger or acquisition carry a huge responsibility. It is the middle managers who address problems and are challenged to guide and motivate the employees in
July 18, 2011
Case Study I
This paper focuses on the merger of company A and company B. The middle manager of a health care organization has the responsibility of combining the workforces of both companies, and re-structuring the systems and shape of the new organization. The task of making company C, the two organizations combined, is made more difficult due to the fact of prior competitiveness in the health care realm, with employees viewing company B as non-professional and lacking in quality care. Company B, however, has several inpatient and outpatient services that company A does not, validating the merger. So, this paper presents the effects of the merger, how employees are coached to work together, the new systems and shape of the organization, and the theoretical framework of the merger.
Effect of Sale
One of the effects of the merger of company A and company B is the power struggle and fights for control that arises from combining the two organizations. Company A was a smaller agency, with a definite hierarchal operating structure displaying a centralization of power, while company B was of a horizontal nature, scattering power from self-determined employees to upper management. Increasing the size of the organization is related to an increase in the structuring of the activities but decreased concentration of power. (Borgatti, 2001, para. 6)
According to Buono & Bowditch (1989) managers in the uncertain environment of a merger or acquisition carry a huge responsibility. It is the middle managers who address problems and are challenged to guide and motivate the employees in
References: Borgatti, S.P. (2006). Organizational Theory: Determinants of Structure. Retrieved from http://www.analytictech.com/mb021/orgtheory.htm Buono, A. & Bowditch, J. (1989). The Human Side of Mergers and Acquisitions, Jossey- Bass Inc. Publishers, San Francisco Cartwright, S. & Cooper, C. (1992). Mergers and Acquisitions: The Human Factor, Butterworth-Heinemann Ltd, Oxford. Kavanagh, M. &. Ashkanasy, N.M. (2004). Management Approaches to Merger Evoked Cultural change and Acculturation. Retrieved from http://karhen.home.xs4all.nl/Papers/3/MANAGEMENT%20APPROACHES%20TO%20MERGER%20EVOKED%20CULTURAL%20CHANGE%20AND%20ACCULTURATION%20OUTCOMES.pdf Öfverström, A. (2006). A Middle Manager’s Dilemma in Mergers. Retrieved from http://arc.hhs.se/download.aspx?MediumId=216