Merging To Companies Together

Merging To Companies Together

7

Merging To Companies Together

MergingTo Companies Together

MergingTo Companies Together

Businessorganization form mergers and acquisitions for strategic reasons. Abusiness organization may establish a merger with another businessorganization to expand their market share, reduce intense competitionthat has a negative impact on both business organizations or acquiretechnology that is necessary for its long term goals. Throughmergers, business organizations become more powerful in the market,more efficient and in the long run, more profitable. However, mergingtwo companies is associated with several challenges. Among them mostimportant challenges are related to human resources management.Mergers results into merging of similar departments and working teamsfrom the merging companies. For example, a merger will result intomerging of accounts or production teams from the two companies. Sincethey are not use to working together, how effectively thesechallenges will be handled with have a huge impact on the success orfailure of the merger. Some of the challenges that are likely to faceteams after a merger include voluntary turnover of highly experiencedand skilled individuals due to changes in the working environment,poor integration into working teams, low commitment and loyalty tothe group and cultural issues (Sudarsanam,2010).If these issues are not handled well, they can have adverse effectson teamwork leading to failure.

BruceTuckman’s stages of group development can be used to over thechallenges facing working teams after mergers. The first two stages,forming and storming are very critical in establishing working groupsafter mergers. Although the initial stages of team development aremore critical, all the four stages of development are important inthe formation of strong working group. The success in the initialstages, immediately after the merger, has a direct impact on teamcommitment and the effectiveness of the group in later stages. Everystage of development has feelings and behaviors that are recognizableand characterize the stage of development in a group. As a teamleader, the stages of team development are essential in themodification and understanding of the team behaviors patterns(Griffin,2010).

Forminginvolves bringing together the different individuals that form theteam. In business mergers, each department will consist ofindividuals who have not worked together before. At the formingstage, individuals from the two working groups usually have positiveexpectations about merging the two working groups. However, dependingon how the merger was handled by the top management, there may beanxiety among some of the members of the teams. This is the mostopportune time for the team leader to establish working relationshipamong the members of the team (Griffin,2010).

Additionally,clarification of the mission of the newly established group iscritical. Before the forming stage of group development, the twogroups have been used to working independently. An effective formingstage will ensure that the two groups gather as much informationabout each other as possible. By understanding each other, the taskahead of the team, opportunities and challenges and how to approachthem, the team will be able to effectively work together. At theforming stage, the members of the new team are also motivated towardsaccepting the other members of the team and avoiding unnecessaryconflicts. This will ensure that serious issues are avoided and theteam concentrates on the routine job. The team leader at this stageof development should be hands on and have excellent communicationand team building skills (Griffin,2010).

Dependingon how the management handled the merger, several feelings are likelyto characterize this stage of group development. If the merger waswell managed, there will be little or no resistance with majority ofthe team members from both sides of the merger supporting thechanges. The absence to resistance to change will be characterized byexcitement of the different members of the group and eagerness towork in the new team. As a result, they are likely to have very highexpectations for the new working group. However, at the formingstages, some of the team members are likely to develop anxiety asthey struggle to fit into the new team, with new performance measures(Griffin,2010).

Asthe team leader, it is important to be prepared to handle some of thechallenges associated with the forming behavior. For example, theteam leader needs to be conversant with the dynamics of the twomerging groups. This will enable him effectively deal with thenumerous issues and questions that are likely to emerge. Theeffectiveness of the team leader to deal with the emerging issues inthe initial stages of the new team development will have asignificant influence on the success and failures in subsequentstages of team development. The principle facet of the forming stagein the team development is establishment of the team structures andstrategic goals and assigning roles to the members depending on theindividual skills and abilities. Thus, at this stage, significantenergy is focused on orientation and defining the working group toaccomplish the tasks ahead (Griffin,2010).

Thesecond stage of the new team development is storming where teammembers from the merging teams are requested to express theiropinions and clarify issues. At this stage, the team leader has theresponsibility of ensuring that all the energy in the group isdirected towards success of the group. Additionally, the team leaderis able avert some inherent conflicts at the early stages of groupdevelopment. Through support and guidance from the team leader, themembers of the group will be able to appreciate the changes anddecisions made by the management and what they expect from the newgroup or organizational arrangements. It is also important to notethat at this stage, team members may be testing the differingperspectives created by the new arrangement which may result intoconfrontations. Depending on the nature of the group, the memberswill find ways of negotiating with each other and developingdivergent ways of completing the task in hand. However, some groupsfind it difficult to mature in terms of their approach towardsconflicts which makes it difficult to move out of the storming stage(Griffin,2010).

Atthe storming stage the period in which individuals try to pretend tobe nice to each other is over. The important issues in the new groupstart to emerge and be addressed. As a result, patient thatcharacterized the first stage of group formation steadily disappearsas minor confrontation starts to emerge. The conflicts at this stageare mainly related to the work and mandate of the group orresponsibilities of individual members of the working team. However,it is important to note that while some teams or members of the teamremain in the comfort of the forming stage, others more into thestorming and get into the real issues early.

Theteam leader needs to be very careful as the team transits from onestage of development to another. This is because the dynamics ofworking teams, especially after mergers vary. It is important to notethat at this stage of team development, the team is moving towardsthe achievement of the team objectives. As individuals gets down towork, they discover that the excitement that characterized the firststage of team development can not be maintain due to diversitybrought about by a larger group (Griffin,2010).For example, the effectiveness of the measures put in place to dealwith the conflicts will be dependent on the organizational culture.Since the two merging organization may have different cultures, it isimportant to ensure that none of the merging teams feels that theyare losing or winning the battle. This is because it will result intomore persistent conflicts and the team is likely to spend more timein the storming stage of team development.

Additionally,team leaders need to be aware of the feelings and behaviors that maybe an impendent to the achievement of the desired goals. For example,anger and frustrations that are common in this stage can negativelyaffect team development. These frustrations and anger may be directedtowards other members of the group (Griffin,2010).This is very essential in the team building after a merger becauseindividuals are more likely to become critical about members of theteam derived from the other team. This will extend the period of timethe new team will take in storming stage of development and impendeffective merger of the two working teams.

References

Griffin,J. (2010). Residentialconstruction management: managing according to the project lifecycle,Ft. Lauderdale, FL: J. Ross Pub.

Sudarsanam,P. (2010). Creatingvalue from mergers and acquisitions: the challenges,Harlow, England: Financial Times Prentice Hall.