The Role of Culture in Cross-Border Mergers - Research Paper Example

It plays a significant role in ensuring that employees are satisfied and maintain their performance after the merger. Apart from culture, there are other factors that affect the outcome of the merger. Organizations need to understand them and develop means of ensuring that they d not hamper progress. In all these operations, there is usually a strong link between mergers and acquisition strategy with human resource management strategy. This relationship helps in enhancing the employees’ performance in order to facilitate the realization of the goals of the merger.

Mergers and acquisitions is a practice in the commercial policies in regard to investment and administration that are concerned with the purchase, sale or merging two or more companies in a bid to provide assistance in form of finances or boost the rate of growth of a company without necessarily developing another unit. On the other hand, the acquisition is a situation whereby a company is purchased by another. Ownership is fully transferred completely to a different company. Acquisition it usually involves a superior company purchasing a smaller one although there are some other cases whereby a smaller firm purchases a more superior one and continue using its name for the purpose of maintaining its customers.

Both mergers and acquisitions can take this reverse process. The process of mergers and acquisitions is usually a long and complicated one, depending on various factors that influence the outcome, which may be a success or a failure. There are several factors that are known to be responsible for the failure of mergers and acquisitions. For example, the cross border mergers in the UK banking sector have been closely linked with the ineffective use of supervisory powers as well as cultural and political factors.