Merger Integration: Resolving Conflicting Values and Structuring Top Management in "Who Goes, Who Stays?"

Assessment 2
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Contents
Introduction......................................................................................................................................3
1 What conflicting values are at stake in the case? Identify and explain, using relevant
management theory and concepts. Contextualise your answer with reference to literature on
integration problems in mergers and acquisitions, with specific reference to people issues...........4
2. Critique the process that is being applied to work out the details of the integration, particularly
with regard to structure and top management staffing using relevant management theory and
concepts. Ground your answer in evidence regarding people and culture issues in merger
integration studies............................................................................................................................5
3 How would you recommend the conflicting values be resolved?................................................7
4. What process would you recommend that the two senior executives and their HR people
follow to work out the details of integration in regard to the top structure?...................................8
5 Evaluate the usefulness of the management and organisational theories and practices from the
subject that you have applied in analysing the case........................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
When a company enters into a contract or merger or an acquisition, the company goes through
various changes which might have positive as well as negative impacts on the company. This
makes it important for the organization to make sure that these issues are identified at an early
stage such that mitigation strategies for the same can be effectively undertaken. In the
management report provided below, the impact of merger has been explained taking into
consideration the case study of Harvard Business Law i.e. “Who goes, who stays?” (Light,
2001). The analysis of this case has been presented in the report which would be presented in
the form of answers to some specific questions.
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1 What conflicting values are at stake in the case? Identify and explain, using
relevant management theory and concepts. Contextualise your answer with
reference to literature on integration problems in mergers and acquisitions,
with specific reference to people issues.
The conflicting values that have been identified in the case presented below are related to the
cultural issues in both the firms. Due to these cultural issues the head of both the companies i.e.
Steve and Kaspar are having a hard time in continuing this merger. This puts both the companies
in a bad position which is required to be effectively solved by the higher management of the
organisation. the cultural differences that are being faced by the organisation can be further
studied by the Resource-Based theory of Diversity Management.
The main aim of the Resource-based Theory is to identify the impact of diversity implementation
in a particular place. In the case of study presented, the implementation of diversity is felt on
both the firms i.e. DeWaal Pharmaceuticals and BioHealth Labs. It can be understood from the
model that both the companies due to the merger are facing the issue of placing qualified and
talented workers in a position best suited to them. The main reason behind the problem is
inability of companies to understand the needs and requirements of the employees. This makes it
important for the head of the organisation to ensure that this model is effectively implemented as
this can help the company to become a more diversified workplace and help talented employees
to get uplifted as well. apart from this, the organisation can also take into consideration the
consultant Approach for diversity management which can help the employers to better
understand the needs and requirements of their consumer base effectively (Grant, 2016). If the
company is able to create a positive diversity in the workplace, they would be able to transform
the diverse differences into the economic success of the company.
When a company enters into the merger process, the main issue that is faced by the organisation
is the amalgamation of diversity due to which the company is required to consider the needs of
each and every employee which causes the situation of a dilemma for the higher management.
With high diversity, the company is required to analyse the various behaviours of the employees
as well which puts the company in a position which is not viable. It has been identified that at
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