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Organizational Communication The Culture Integration In M&A

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Organizational Communication The Culture Integration In M&A
Organizational Communication

The Culture Integration In M&A

1. Introduction

For a steadily operated company, the growth and expansion are indispensable to the business. And M&A is the main strategy for enterprise to achieve external growth. With economic globalization development, “M&A” has been growing quickly.It is becoming an important issue worldwide. Companies can realize rapid expansion by M&A. It has a lot of benefits like to improve the quality of companies themselves by strengthen the competitive force, to get more marketing channels, materials and product equipment, to reduce the marketing barriers and risks for entering and exiting. Specific to theoretical aspects, M&A can form synergy effect.

The so-called "M&A" refers to the mergers and acquisitions, it is a corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture.

In recent years, there are many M&A actions,but some of them succeed and some failed finally.Investigations have shown there are many reasons for this.But the one main consists in Human Resources Integration making out not to be good.Effective communication in human resource integration is not a guarantee to the success of the merger, but invalid human resources integration will inevitably lead to the failure of the merger. In the 21st century, the most important resource is human resource. To a certain extent, the competition of modern enterprises is actually the competition of human resource, and it is the well-publicized war for talent. How to integrate human resources is the main topic of enterprises’ M&A. Communication, in this progress, is a key issue. Many mergers do not create

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