The Merger Between the Two Institutions - Coursework Example

CHANGE MANAGEMENT Name: Course: Tutor: Institution: City/State: Date: Change Management Introduction The merger between the two institutions is bound to provide new opportunities as well as challenges to the management team that will assume office after the transition. Effective change management will demand the need for adequate planning and identification of issues which pose a risk to the success of the merger. Factors such as misgauging of the strategic and cultural fit, the presence of communication gaps, poor leadership, and economic problems may impede successful merger and transition. In addition, such problems can be solved through establishment of a common and concise vision through an efficient leadership team that is focused primarily on organizational success and gaining favor and commitment from the people. Research is indicative that mergers can be highly influenced by the inherent cultural differences. Leaders are responsible for establishing the appropriate culture and precedence for relationships within the new organization (Pollack, 2003, 171). The pressure for success may give rise to incidences of conflicts between the leadership and management of the two teams. The alignment of corporate strategies from both institutions is a critical step towards achievement of successful transition and merger into one entity (Kilfoil, & Groenewald, 2005, 14). Consideration Factors It is imperative that the management team selected to oversee the transition into one entity takes into consideration the various issues that negatively influence the achievement of success (Duck, 2001, 27). The factors that are known to result in the failed mergers are explained as follows I. Misgauging Strategic Fit This is whereby the merger may be termed as too extensive as what may be expected. This is relative to the lack of compatibility in the core competencies of the two institutions. The lack of compatibility may be brought about by lack of similar technologies and bureaucracies. Thus, it is imperative that both institutions collaborate on enhancing compatibility of their systems. In addition, it is critical to take into consideration the possibility of success given the presence of differences (Mindszenthy, & Roberts, 2001, 29) II. Cultural Clash There is the potential of a conflict between the students from the two institutions due to varied cultures, norms and attitudes towards educational and extracurricular activities. This can be challenged through proactive strategies such as communication and conflict resolution in the event of clashes between management from the two institutions as they transition into one extensive entity. Mutual respect, flexibility, and adequate channels of communication should be present to ensure successful integration between the two institutions. III. Communication Gap / Lack of Integration The lack or absence of clear communication and movement of information provides a breeding ground for anxiety and panic amongst the employees and more so the students. Furthermore, there may emerge a sense of distrust amongst the teams establish to provide oversight as the two institutions merge to create one entity (South Africa, 2001, 12). This is primarily associated with fire of retrenchment as the two entities merge into one institution. IV. Poor Leadership The lack of adequate leadership may impede the successful integration and overall merger of the two institutions. Conflicts between the principal leaders from the two institutions may also impede efficient and rapid integration of the two institutions through overly bureaucratic processes. This can be associated with fear of change that breeds the uncertainty and anxiety in both institutions. V. Mismanagement The various resource requirements may be overestimated or underestimated leading to issues conflicts over minimal resources (McCarthy & Dolfsma, 2012, p.36). In addition, from fear of imminent change when the two institutions merge, employees and management may resort to misappropriation of funds. Emergence of conflict may be brought about by the incapacity to meet various targets due to mismanaged resources such as funds, labor, and materials. Furthermore, the lack of accurate and detailed implementation plans may give rise to failure to identify the core interdependencies between the work teams drawn from the two institutions. The outcomes from mismanagement include incomplete projects or failed projects that demand costly rework and extends the necessary level of integration timeline outlined, which leads to frustration (McCarthy, & Dolfsma, 2012, 43). VI. Economic crisis It is critical to take into consideration the period of merger between the two institutions. This is critical given issues such as inflation, possible loss of revenue and effect of change on the overall number of enrollments conducted annually (Kilfoil & Groenewald, 2005, p. 17). There is a need to also take into consideration the economic climate in the institution that will enable an efficient transition into a new entity. Leadership Style A transformative leadership style would be appropriate for this case scenario. It would provide a means of ensuring inclusion, equitable distribution of resources, and fair delegation of duties and responsibilities to the employees. In addition it relies on collaborative and cooperative relationships with stakeholders, employees and students in deliberation of the effective and optimal avenues that can be utilized to enable transition of the two institutions. Corporate Strategy The change process will be led by the two managers to ensure equitable distribution of duties and responsibilities pertaining to the change process. In addition, this will ensure the elimination of a winner-loser mentality in both institutions and focus on developing a cooperative and collaborative relationship or partnership between the two institutions (Kilfoil & Groenewald, 2005, p. 16). The development of a sufficient corporate strategy upon merger of the two institutions is critical towards ensuring synchronized transition by both institutions. Furthermore, this contributes also to the identification of concise targets, goals and objectives within the selected transition timeline. In a majority of mergers between institutions and businesses as well, there is usually a failure amongst the participating teams to understand the complexity associated with their respective corporate cultures and strategies. Corporate culture is understood to be a critical component that affects performance of an entity (Demers, Giroux, & Chreim, 2003, 236). This is critical towards the commitment, initiative, innovation and creativity of the employees. Efficient and effective movement of information and exchange of capabilities amongst the integrating parties or partners and optimized use of synergies is successfully achieved if the participating parties illustrate respect, transparency, honesty, and understanding of the organizational structures, corporate culture, and processes utilized by the other institution. The willingness of the parties involved to cooperate, understand, and establish a common ground on the retention of practices and business processes is critical towards ensuring successful transition. Corporate cultures of both institutions are deeply embedded in the practices and processes utilized in their respective settings (Collins, 2001, 42). Failure of mergers is usually attributable to the lack of focus on cultural integration and management of resources such as the human factor. Human resources assume a critical role in the transformation of an organization as in the case of mergers and acquisitions or any other changes being undertaken in the institution (Demers, Giroux, & Chreim, 2003, 241). Underestimation of the complexity and critical nature of this factor may result in an insufficient strategy towards integration of the corporate cultures of the two institutions. Some of the reasons for such errors include: I. Lack of awareness of the presence of differences-this takes pace when the managers fail to understand and acknowledge the presence of a corporate or institutional culture II. Lack of readiness-a decision or strategy that fails to take into consideration the culture of an organization such as unattractiveness of change, anxiety and uncertainty that is associated with the unknown III. Lack of understanding- the managers may acknowledge the presence of culture in their respective institutions IV. Lack of competence- this is whereby there is lack of knowledge and understanding on change management strategies Change management is understood to have a significant effect on the moral of the employees and students from both institutions. This subsequently affects the pace of the merger of the two institutions. Relationship building and enabling participation is understood as a critical step towards cultivation of buy-in and facilitation of the merger through development of trust (Brousseau, 1989, 75). Upon making the decision, the preparation and subsequent implementation is left to the merging partners who are solely responsible for the initiation of change. In addition, research notes that for change initiatives such as in the case of mergers and acquisitions: I. The behavioral and emotional aspects should be addressed adequately as the operational issues II. Change usually takes place in a reasonably manageable and predictable manner emulating a series of various dynamic phases present in the change curve. In addition, in the wake of technological advancements, it is possible for the organization to focus primarily on the economies of scale accruable from operation of a single institution (Abbasa et al., 2014, 96). The new institution would be able to deliver specialized and individualized services to the public or students because of the presence of a lean management structure (Demers, Giroux, & Chreim, 2003, 237). This is highly critical due to the competitive nature of current higher education system. This is important due to the necessity of focusing on delivery of quality education due to the availability of resources. Communication With the advent of new technology, it becomes critical for organizations and more so public institutions to utilize new technologies to enhance delivery of quality information. This can provide the two institutions with means of enabling participation of the public, students, employees and other stakeholders in the change management process (Demers, Giroux, & Chreim, 2003, 237). This is important as it ensures that all the interests of the parties included are aligned efficiently. Efficient and effective movement of information and exchange of capabilities amongst the integrating parties or partners and optimized use of synergies is successfully achieved if the participating parties illustrate respect, transparency, honesty, and understanding of the organizational structures, corporate culture, and processes utilized by the other institution. The willingness of the parties involved to cooperate, understand, and establish a common ground on the retention of practices and business processes is critical towards ensuring successful transition. Corporate cultures of both institutions are deeply embedded in the practices and processes utilized in their respective settings (Kazík, 2013, 63). It is imperative that all the stakeholders are involved in the process with acknowledgement of the various possible outcomes from the process. The affected parties or stakeholders in the change management process are able to deliberate on strategies that will optimize the positive outcomes of this process (Abbasa et al., 2014, 94). Communication of needs also ensures equitable and sufficient allocation of resources to the change management process. This is critical given that lack of accurate and detailed implementation plans may give rise to failure to identify the core interdependencies between the work teams drawn from the two institutions. The outcomes from mismanagement include incomplete projects or failed projects that demand costly rework and extends the necessary level of integration timeline outlined, which leads to frustration (Anderson & Anderson, 2004). It is important to note that mergers between businesses or institutions are usually characterized buy relatively high emotions of the parties or partners involved. The anticipated change is understood to play a role in the distortion of the status quo in both institutions. This brings about incidences of conflicts amongst the partners in the event that there is lack of sufficient communication of needs and a heightened level of transparency in the communication of the needs and expectations of each partner. Change Model The two managers or principals should collaborate and utilize a Lewin’s Change Management Model that takes place through three critical stages namely Unfreeze, Change, and Refreeze (Demers, Giroux, & Chreim, 2003, 238). I. Unfreeze This is primarily concerned with determination of processes, practices, and activities that should change. Strong support from top management from the two institutions is paramount for successful transition. II. Change Communication is critical for dispelling rumors and empowering actions that will initiate and implement the necessary changes. in addition this phase demands the need for involvement of all people in the change process to ensure uniform transition to new processes, activities and practices. III. Refreeze This is primarily concerned with anchoring the changes undertaken into the culture of the organization. Development of sustainable strategies becomes a necessity to ensure changes are adopted. This affirmed through provision of support and training to the affected parties and stakeholders (Abbasa et al., 2014, 94). The success of the transition of the institutions into one merged entity is reliant on the establishment of a rigid change management plan (Buckingham & Coffman, 1999, p.44). This is solely founded on three critical elements namely people, principles and culture of the organization. I. Establish a shared and mutually beneficial philosophy II. Enhance and ensure sustainable inclusion III. Adopt and utilize a participative approach towards decision-making IV. Utilize and practice critical relationship based approaches to ensure sufficiency of integration Affective issues should also be dealt with immediately due to foreseeable consequences such as: I. Nurturing of the employees given that they are intellectual assets of the institution and a source of strength for the organization II. Involve people to internationally and nationally accepted standards III. Build on consensus amongst the partners IV. Avoid the development of an ideology of winners versus losers as part of the outcome in the change process V. Provide choices as a means of alleviating uncertainty and anxiety amongst the partners in the change process Develop capacity through: I. Scheduling of activities time and duties through a process that as aimed at achieving consensus and compliance II. Provide the necessary support in the such as resources and emotional support to the teams and departments involved in the change process Enhance and manage diversity in an appropriate manner In dealing with resistance I. Questions should consider the foreseeable outcomes or benefits from the change process accruable to al the partners involved II. Focus should be shifted more towards processes rather than things III. Enhance communication through the hierarchical order established in the new institution to ensure minimal incidences of conflicts IV. Enable the involved partners to visualize on the anticipated outcomes accruable from the change process V. Enable sharing of information such that all the partners and stakeholders involved are also able to visualize the success and associated benefits from the change process VI. Minimize surprises through communication of the effects and the anticipated outcomes that all the parties involved will be subjected to Sustainability Issues 1. Communication This is understood to be a focal point in the change management process. It primarily focuses on sending the right information and attitudes on the change management process. The information should be correlated to the events taking place in the processes. The lack of transparency and honesty has been understood to be a major impediment towards efficient transition. This is because it creates anxiety, mistrust, and a negative perception towards the change process. In addition, communication can be utilized by the management to establish precedence over the behavior and attitude expected from the employees (Abbasa et al., 2014, 94). This is illustrative of the importance of communication as part of planning and overall management. Communication enables the management to move information to other members of the institution on the rational for some of the decisions that were made in relation to the merger between the two institutions. This is critical towards providing the respective members of the two institutions with an understanding on how decisions that affect their duties and positions in the new organization were made. There is a need to separate talking with communication. Communication relies on exchange between parties on valid information to ensure that they are able to adjust in a manner deemed as necessary (Mindszenthy & Roberts, 2001, 29). Face-to-face communication through seminars and training workshops can provide an effective platform for transition and movement of information from the management of the organization to the employees, and in this case the affected students from the two institutions. The interactions between the management, employees, students and other stakeholders should focus on transparent and efficient movement of information that pertains to changes on processes and practices with the merger of the two entities. Accurate information and communication of the same is understood to be the basis for indentifying facts (Anderson, & Anderson, 2004, 12). In such a merger, the employees and students are the primary victims of the process given that this will distort their schedules and prompt the rescheduling of daily routines and related activities. In addition, it is also critical for the managers from the two institutions to focus on the various emotional statuses being exhibited by the employees and students such as denial, shock, anger, depression, bargaining, testing and lastly acceptance of the entire change process. This can be attributed to change in roles or organizational position especially amongst the employees who are usually affected greatly by the change process (Brousseau, 1989, p. 75). Bibliography Abbasa, H, Khalidb, A, Buttc, A, & Zafar, F, 2014, Merger Failures & Corporate Strategy: Change Management to Solve the Query. International Journal of Sciences: Basic and Applied Research (IJSBAR), 13(1): 90-102 Anderson, LA & Anderson, D, 2004, How to be a strong leader in the face of uncertainty. Retrieved July 13, 2004 from http://www.workinfo.com/newsletter. 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