Managing Conflicting Values in Organisational Merger: A Case Study of DeWaal Pharmaceuticals and BioHealth Labs

This paper examines the problem of job distribution post-merger, especially at the top level, in light of a given case study of the merger of two medicine companies DeWaal Pharmaceuticals and BioHealth Labs which faces issues during and after the process of merger.

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Executive Summary
Organisation merger is one of the latest trends that is observed in all parts of the world where
either more prominent organisations are acquiring smaller organisations, or two similar
organisations are merging. The problem in this process lies with the job distribution post-
merger, especially at the top level. This paper examines such problem in light of a given case
study of the merger of two medicine companies DeWaal Pharmaceuticals
and BioHealth Labs which faces issues during and after the process of merger.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
The Conflicting Values at Stake................................................................................................3
Critical Analysis of the Process Used........................................................................................5
Recommendation to resolve conflicting values.........................................................................7
Recommendation for the top management................................................................................8
Usefulness of the management and organisational theories......................................................9
Reference:................................................................................................................................11

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Introduction
Merger and acquisition are one of the latest trends in the world of business. Most of
the large enterprises have this propensity of acquiring smaller enterprises which are
productive and have a promising future. Examples of such acquisitions and mergers are
plenty in recent times including Facebook acquiring Whatsapp and Instagram, or Google
acquiring Android. The target is to take over a promising business entity and maximise its
value. In this report, there will be a detailed discussion about two companies DeWaal
Pharmaceuticals and BioHealth Labs and the process of their merger and acquisition.
Discussion
The Conflicting Values at Stake
The merger of two companies results in a merger of top positions as well. There
cannot be two HR managers for one company, and before the merger, there was one HR
manager for each company, so after the process takes place, they have to decide on one single
HR manager who will lead the new company. This is true for all the top posts of the
company. Therefore it is evident that there will be conflict in the process. As the people who
have to leave the position would not do it without resistance. It is seen in this case that does
not face such demotion people are planning to withdraw from the company even before the
merger takes place.
Every organisation has its own organisational culture. This culture mainly depends on
the region where the organisation is located and also on the cultural background of the people
working in the organisation. The two organisations in this case study belong to two different
continents, one from America and one from Europe (Netherlands) (Light, 2001). Therefore it
is evident that there a significant difference in the culture of the two organisations.
Consequently, the conflicting values lie with the cultural differences. Various theories and

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models can be attributed to organisational culture, and for the better understanding of the
conflict in this case study, some of these theories can be discussed. Hofstede cultural theory
and model can be used to understand the cultural difference between the two organisations
and the possible conflicts.
Image 1: Hofstede Cultural Model of USA and Netherlands
Source: (Hofstede, 2017)
Though the two countries are similar regarding some aspects of the model like Power
Distance and Indulgence, and very close in Individualism as well, they have a vast difference
regarding Masculinity and Long-Term Orientation. “The Netherlands” scores 14 on
Masculinity scale measurement and is in this manner a “Feminine society”. In the countries
which are termed as “Feminine”, it is essential to keep the “life/work balance”, and one
ensures that all are incorporated (Bakir et al., 2015). A powerful “leader” is steady to his or
her kin and family, and basic leadership in the community is accomplished and achieved
through “contribution”. Supervisors make progress toward accord and individuals esteem
“balance, solidarity and quality” in their working lives (Fahey & Glickman, 2012). Dutch are

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known for their long discourses and discussions, until the point when the parties have reached
an agreement. The USA is just the opposite.
Critical Analysis of the Process Used
Integration, merger and acquisition is part of change in an organisational change that
needs to be appropriately managed in order to keep situations under control and to implement
top management staffing correctly the Lewin cultural theory can be applied for better
understanding, This first phase of progress includes setting up the association to acknowledge
that change is fundamental, which provides for separating the current conditions previously
one can develop another method for working (Batras, Duff & Smith, 2016). The primary
process of this is to build up a way in which the idea can be given that this process cannot
achieve the result that is required. The demonstration is aimed at the thought of bringing a
solution which everybody can understand and cope up with. To bring necessary amendments
to the organisation to deal with the process should begin with the head of the structure– one
has to challenge the “convictions, qualities, demeanours, and practices” that right now
characterise it and makes an essential part of its organisation structure (Burke, 2017). It is
also required to bring necessary changes to the infrastructure where the work will be held.
This is because the two organisations are habituated in working in different settings and work
culture there should be a balance between the two.
The unfreeze situation when most of the people feel vulnerable and helpless goes
away in a while, and the people start accepting the changes, the new position and they start
looking for better ways in which they can do away with the problems they are facing and
adapt (Shirey, 2013). People begin to acknowledge and act in ways that assist the new
heading. The advancement of the process of being rigid to the unique situation and the
adaptability come in stages as the people take time to think about their position.
Perspective is taking part in the new institution where a new process is put

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into place. The change carve is the process of starting from a static position
hating the company to take part in the state. Exchange car presents the
starting point at the low status of the change curve represents the position
of people where they do not want to change and then to go up to the place
where people proactively take part in the change. People start to think how
this change in the organisation is improving their work life. If they perceive
that the move will be good then automatically they take part in the shift.
When the situation is good, and it is seen that the people are proactively taking part in
the change and settling with it, then the case again goes towards refreezing, this when better
methods of working are achieved. The external signs of the refreeze from which the situation
can be understood are “enduring affiliation plot, unsurprising arrangements of obligations,
and so forth”. The managers and the upper administration must take care of the situation that
the refreeze is well taken care of. This expresses ensuring that the actions are frequently used
and that they are combined into the customary industry.
A point of struggle among the most troublesome HR issues following a merger is the
demeanours of the employees and staff members (Cascio, 2012). Dependent upon the effect
the merger has on their occupations, staff members can end up pushing, disillusioned or irate.
Some might have scorn if mates or accomplices were offered promotion following the
merger. Others are worried over how their occupations may change. Change is an essential
explanation behind stress for a significant number individuals, and occupation parts
habitually change through. Whichever affiliations specialist remains in charge following the
merger every now and again impacts the course of pay and focal points in the new
association. All things considered, if specialists get or experience consistency in pay and
points of interest, issues are restricted. On the off chance that a few representatives are

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requested to take pay declines or face huge advantages cuts, grumbling and low spirit will
probably come about (Kiitam, McLay & Pilli, 2016).
Recommendation to resolve conflicting values
An association's culture is all the natural characteristics, feelings and practices that choose
how people complete things and achieve their targets (Gilin, Leiter and LeBlanc, 2015).
Three critical segments in blend portray the culture:
1. The behavioural benchmarks appeared by everyone in the organisation from higher-
ranking pioneers to front-line specialists
2. The essential capacities and judgement about “where and how” to battle, as described by
the association's framework
3. The working model of the association—the “structure, accountabilities, organisation
instruments” and techniques for working that create and maintain the arrangement for how
work finishes
To fuse two companies, the company that acquires at the beginning describe the social focus
in broad terms. This is never-ending work for the CEO—and the “CEO” must deal with his
or her dedication until the point when the moment that the objective is made sense of it. It
legitimises and requires incorporation at best.

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Setting the merger arrangement in a general sense incorporates hard choices. An acquirer can
adapt the association, or it can make a blend of both the organisation in a balanced way. Once
in a while, it can even use the merger to bring in the “acquiree's” culture into its specific
affiliation. In case deliberately pitching item contributions is a key to the merger's success,
for example, organising the business drive culture will be crucial.
Recommendation for the top management
A significant part of the time, there is a primary differentiation between the “acquirer's
culture” and that of the obtained. Regardless, it can be difficult to exactly point out where,
and how critical, the qualifications are. “Diagnostics” can perceive and understand and
measure the qualifications among people, units, arrive regions and limits. They can in like
manner empower the HR to make sense of which openings ought to be closed (McKenzie,
2015). An association can use an extent of instruments, including the following:
 Administration interviews for revealing authoritative styles and needs.
 Video and sound records of people in their occupations, allowing one beside other
examinations of different techniques for working.
 Choice X-shafts and duty mapping exhibiting who is accountable for each component
of critical decisions.
 Process stream maps are exhibiting how the capacity is done—routinely extremely
novel in connection with one relationship to another.
 Client interviews proposed to perceive unique customer perspective of each affiliation
(Moser & Kalton, 2017).
 Warmth maps exhibiting which groups are most basic in understanding the
acquirement's regard and where the best social gaps exist.
 Representative examinations are getting some data about accepted practices,
perspectives and requirements.

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These gadgets frequently incite profitable talks. One effective yield of specialist considers,
for instance, is a "word cloud." The administrator demands that people pick three descriptors
to delineate both their specific association and the other one— a thriving, low-effort way to
deal with begin the symptomatic strategy and to amass sponsorship around a more broad
culture effort. The results, gathered by word cloud programming, consistently reveal
structural complexities and give a start to open talk.
Usefulness of the management and organisational theories
Hypotheses concentrated on human conduct and connections are not so much
dynamic but rather more grounded in real human inspirations (Dalkir, 2013). Be that as it
may, they can be excessively hopeful about the potential for developing commonly
advantageous connections in the working environment. Workers and managers don't
generally have perfect interests. Administrators may now and again settle on choices that
outrage workers while representatives may put their particular advantages over the company.
Administration hypotheses because of ideas of authority and motivation may not give enough
weight to that tension (O’Sullivan, 2017). Employees in most of the cases leave their
employment because of poor management, a situation that increases the costs and expenses
and brings down the ability return the invested amount in a business. Entrepreneurs ought to
see great administration keeping in brain the “end goal” to make a “plan of action” that can
enhance “worker profitability”, dispense with excess in procedures. Since supervision
rehearses depend upon the suppositions of supervisors and representatives or a contextual
analysis in a specific territory of business, they work best for casual associations. Little
ambiguity exists regarding whether a management model will bear fruit because the repute of
the model justifies itself with real evidence (Tovstiga & Farhad, 2017). Administration
rehearses concentrate more on the flow between gatherings, which permits directors greater
flexibility in settling on choices and enables representatives to work together as a unit when

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they cooperate on an undertaking. Entrepreneurs should combine administration “practices
and speculations” because of their “plan of action”. An industrialist or startup owner will
typically study and execute administration rehearses because he expects adaptability to
support his business model. As his business develops, he may include a few components of
“administration hypothesis” keeping in mind the end goal to formalise the necessary
leadership and initiative characteristics of administration.
Summary and Conclusion
The trend of a merger in the international trading scenario has caused a lot of new
more prominent businesses to come up. The merger though has many complications and
lengthy processes, the result of a successful merger is always beneficial for the companies
and employees. The case study which is studied above mentions a merger that has been not
implemented in a balanced way. The companies going for a merger must evaluate the
benefits for both the parties before final implementation. The cultural difference of both the
organisations must be assessed and respected. The induction of the employees in the new
company must include benefits for employees from both the sides.

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