Exam
1. Merger or amalgamation
Merger is defined as a combination where two or more than two companies compine in to one company .In this process one company survives and other lose their corporate existence .The survivor acquires assets as well as liabilities of the merged company or companies.Amaigamation is synonym of merger.
A merger or amalgamation should be consederd only after careful examination of the merits and demerits, and ensuring overall positive value addition.The first stage of any merger or amalgamation must be a through rewiew by each organisation of the other,which is commonly know as due deligence process.
Steps to successful merger Merger need careful planning to achive financial goals, reduse problems and for profit-making. Drop in productivity is expected to be round 50% as people from different workplaces have differences of opnion.Even a successful merger can take three months to three years for the completion of recovery process in an organisation. For employees,possibility of changes and uncertainity at workplace can create and stress.This affect judgement, perception, and inter personal relationship. Often redused communication and increased centerlisation as part of restructuring in companies create space for rumours and insecuity in employees .During these times,employee do not have much access to senior level managers .Active intervention is necessary to maintain ing and the level of productivity and to assure employees. Some suggestion for a smoother restructuring and transition are : * Circulate a consistant message in the combining entities from top down. * consistant accountability and compensation through out the company for similar position. * Findout new ways of structuring the company to bridge coprate culture difference. * Establish gaugeable objectives,especialy in areas, which will be working togather for a common goal. * Rewamp the compensation plan to recognise the additional
Merger is defined as a combination where two or more than two companies compine in to one company .In this process one company survives and other lose their corporate existence .The survivor acquires assets as well as liabilities of the merged company or companies.Amaigamation is synonym of merger.
A merger or amalgamation should be consederd only after careful examination of the merits and demerits, and ensuring overall positive value addition.The first stage of any merger or amalgamation must be a through rewiew by each organisation of the other,which is commonly know as due deligence process.
Steps to successful merger Merger need careful planning to achive financial goals, reduse problems and for profit-making. Drop in productivity is expected to be round 50% as people from different workplaces have differences of opnion.Even a successful merger can take three months to three years for the completion of recovery process in an organisation. For employees,possibility of changes and uncertainity at workplace can create and stress.This affect judgement, perception, and inter personal relationship. Often redused communication and increased centerlisation as part of restructuring in companies create space for rumours and insecuity in employees .During these times,employee do not have much access to senior level managers .Active intervention is necessary to maintain ing and the level of productivity and to assure employees. Some suggestion for a smoother restructuring and transition are : * Circulate a consistant message in the combining entities from top down. * consistant accountability and compensation through out the company for similar position. * Findout new ways of structuring the company to bridge coprate culture difference. * Establish gaugeable objectives,especialy in areas, which will be working togather for a common goal. * Rewamp the compensation plan to recognise the additional