Mergers and acquisitions have become increasingly in today's economy due to the stiff competition among companies. small companies find themselves in a situation of loss-making, as a result of dominance by the large companies. this forces the small company to merge by selling their shares. as a result of a merge, a new company will be able to enjoy the economies of scale as also the widen their portfolio(Kemal, 2013). Among those objectives are: reduce behavioral resistance, improve perception, come up with ways to solve work-related stress, rational choices paradigm, enhance employee motivation, enhancing team process, establish good channel of communication,
solving organizational cultures differences, solving ethical issues arise as a result of merge and establish new organizational structure.
Employee motivation
create an opportunity to expose all the employee, to the need of the two committees of the companies. by exposing their performances through exhibitions, this makes them feel empowered. organizing employees session where: employee get to know all the procedures expected of the company, employees can comprehend their accountability and get to criticize companies' activities. furthermore, increment the recurrence of criticism since the representative comprehends the need and his or her responsibility in requesting input.
Risks and work-related stress
We will assess the risks which should be overseen and build up a solution for solving chance. This process will include not just the risks of inability to achieve anticipated results, yet the inability to benefit from circumstances. Amid the advancement of procedure, we will distinguish the variables affecting organizations adequacy and change-related risks, including recognizing the individuals who will feel debilitated by the changes.
Communication
build up a correspondence technique and plan that incorporates the means, media, and estimations proper for progress. The methodology will include both formal and casual correspondence roads and give methods for discourse what's more, criticism. It will concentrate both on the interior and outside groups of onlookers including client portions. Effectively take part with the correspondence organizations managers assets accused of actualizing the arrangement and offering the progressions the Order Fulfillment program will bring.
Rational choice paradigm
most people choices depend without anyone else benefits while limiting what can hurt the person, as per Business Dictionary. Entrepreneurs ought to consider adjusting the hypothesis of judicious decision into their plans of action as it can help anticipate and clarify future buyer spending choices.
Behavioral resistance
The authoritative arrangement for a smooth merger of the two organizations has the goals of limiting social protection from change at the two organizations and to acknowledge cooperative energies after the merger is finished. The arrangement will designate duty to the HR staff and officials included. These will incorporate looking, arranging and contracting with associations, elucidating and actualizing the data innovation needs, designation of customers of both the organizations and consistency with the legitimate prerequisites.
Organization culture
cultural crush is the number one reason behind an arrangement's inability to accomplish the guaranteed esteem. In a culture conflict, the organizations' basic methods for working are so extraordinary thus effortlessly misjudged that individuals feel baffled, prompting unsettling and abandonment. Profitability banners and nobody appears to know how to settle it. There is need to set instructions to understand set the social incorporation agenda, diagnose the distinctions that issue.
Dealing with ethical issues
Companies mergers are attempted with the conviction that the consolidated organizations will have the capability to develop more quickly and intensely more grounded than they were as free companies. The management group of the two company confront moral quandaries before starting the merger, as arrangements continue and after the exchange is shut. the organization need to manage takeovers, Terminating Employees and Confidentiality.
Reference
Wang, William Yu Chung., (2013), merger of multinational companies A case study of the Global Virtual Enterprise". Journal of Global Information Management21(1), pg42-58.
Derek van der Plata (9 September 2013). Four Companies That Know How to Acquire. Private Company Mergers and Acquisitions.
Bartusch, Ronald.(2013) A Guide to Merger Agreements". WSJ Deal Journal. Retrieved 19 August 2013
