Management Report: Integration Challenges in Mergers and Acquisitions

This report delves into the intricate aspects of management within the context of mergers and acquisitions. It begins by identifying conflicting values, such as those arising from poor leadership, globalization resistance, communication barriers, and employee retention challenges. The report then explores the processes employed by top management to integrate staff, including hiring, training, career planning, and employee empowerment. Furthermore, it provides recommendations for resolving conflicting issues, emphasizing the importance of workforce planning, induction processes, and employment arrangements. Drawing upon organizational and management theories, the report highlights the significance of objective thinking and adaptability in a globalized environment. The report also analyzes the cultural challenges in mergers and acquisitions. The report concludes with a focus on senior executive and HR strategies for successful integration.

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Executive summary
This paper deals with the values that are conflicting in nature and those that are related to
the acquisition and the merging of those who are at stake. This paper additionally highlights the
aspects of retention of employees, in addition to the lack of leadership and barriers in
communication along with the cultural barriers. The paper also elucidates the entire process that
is implemented by the staff who are present in the topmost hierarchy of management and who
work along in integration and are involved in the discussion of the process like hiring efficient
employees, training of the employees, their career plan and others in details. In addition to this,
the paper also involves the recommendations that are required to be followed by the two senior
executives along with their HR people in order to follow to work out integration in relation to the
top structure. There needs to be an emphasis on work force planning process along with the
induction process and finally the employment arrangement process. the benefit of the
organizational theory along with the management theories tend to follow the aspects of elevation
in the productivity, making the managers to think in an objective member and try to adapt to
globalization.
Introduction
The process of merging and acquisition represents the ways in which the organizations
are able to establish their business and become popular in the market in the recent times. The
process of merging and acquisition occurs in situations when there is unstable economic
conditions which leads to fall in the profits. Both of these process are used together in spite of
the fact that these two aspects possess different meanings. On one hand mergers refers to
combination of companies to in order to form a new company while on the other hand,

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acquisition refers to then process through which one company buys another company and hence
acquires all of its assets. In times when a company is does not succeed to acquire the favorable
position in the market, the owner of the particular company makes a decision to dissolve the
company through any one of the process of acquisition or merging. Both of these process has its
particular pros and cons since after the process has already taken place, there are several barriers
which are faced by the companies (Huyghe, Souitaris & Knockaert 2015).
Therefore this particular study focuses on the conflicting values along with the
mechanism of the application of merging and acquisition so that the aspects of integration,
recommending how to solve conflicting issues, recommending the process that senior executive
needs are taken into consideration. Focus is also given on the important of the implementation of
the management and organization theory and to the process of overcoming integration.
Conflicting values that are at stake
Out of the several conflicting values, one such value which is of prime importance and
which leads to the merging and the acquisition of the poor leadership in situations where the
owner of the organization merge their companies because of incorrect reasons. One of these
reasons is the resistance to the idea of globalization which leads to the direction of the
technological advancements that results in the hasty change in the process of economic
development. This leads to the motivation of the owners of the organizations in order to carry out
the process of merging and acquisition. This also leads to the elevation of the concentration on
the aspect of improvement of the products along with the acceptability of their product in the
market thereby ignoring the employee variations. Often the CEOs fail to acknowledge the aspect

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employee difference, and just assume that it is quite convenient to overcome them in order to
bring the failures in the newly formed company (Sarala, Junni, Cooper & Tarba 2016).
Another significant factor is the communication barrier that leads to the failure of the
most organizations which have been involved in the process of mergers and acquisition. There
are often several challenges that are faced in terms of communication since while the process of
mergers and acquisition occurs, there are several employees and members of the management
who are left perplexed since there is often lack of proper information that might help in
suggesting the redirection of the work and position in the new organization. Absence of proper
communication often leads to the uncertainty and dishonesty in the organization which in turn
hampers the productivity of the company and thereby causes the downfall to the cause of
mergers and acquisition. Therefore it is very important to inform the employees of both the
parties who are involved in the process of acquisition and merger regarding the progress of the
organization that is important for the organization’s success (Coviello, Kano & Liesch 2017).
During the process of mergers and acquisition, the retention of the employee’s is required
for the challenges which presents a threat to the new organization due to the negative attitude
experienced by the employees. There are often incidences of negative attitude which is a result of
the anxiety related to the future generations along with the security of their job and the alteration
in leadership and confusion which is a result of the lack of communication therefore the
employees feel betrayed by the management along with lack trust for the company. These
organizations must have the objective to maintain the trust of the employees so that the
intellectual talent of the employees are retained. This is also done to ensure the safety of the

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strategies of reducing and replacing employees because this plays a very role in the integration of
mergers and acquisition (Lee, Mauer & Xu 2018).
Additionally there are several cultural challenges, which represents the conflicting value.
These are mostly stake in case of most mergers and acquisition since the aspect of culture
represents shared values along with beliefs and assumption that helps to determine behavior. In
most cases it is seen that, mergers and acquisition are able to bring an unexpected change in
management practices and also the strategies that often leads to the disruption and unease to the
organization (Dhiaulhaq, McCarthy & Yasmi (2018).
Process applied in managing staff to work out integration
Hiring smart employee is one of the process to manage the staff and to maintain trust that
he or she is capable to do the work while there is less supervision by top managing staff. In most
of the cases the managing staff do not pressurize the employees. Like for example Steve job,
who is famously known for hiring the right talent quoted that “it does not make sense to hire
smart people and tell them what to do” (Harinck & Druckman (2017).
Another factor is training that is conducted in the workplace. Training helps to provide
assistance to the managing staff with confidence that their employees are abler to retain the
necessary skills. Motivation of the employees ensures that they will work hard for the company.
Brain Forrester who is the co-founder of workshop digital believes in” the three T’s”. it stands
for: training, trust and time (Kerzner & Kerzner 2017).
The process of integration involves the discussion of the managing staff with the
employees regarding their career plan. Thus by allowing the employees to follow their career
paths, the managers are able to share their share their interest and skills in their minds and also is

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able to empower the employees to attain their goals for performing better in the organization
((Liu et al 2017).
The members of the top management gives an opportunity to the employees to choose the
problem of the integration. Like for example, the HR is able to provide the employees with more
freedom since they get a chance to decide on the type of benefit they require. It is the duty of the
employers to offer the employees with checkpoints to give a chance to log into private exchange
portal. The process of mergers and acquisition is used to implement the process in order to solve
the problem that is related to resentment of the employees (Gess-Newsome, 2015).
Finally the members of the top management staff tend to mobilize their employees by
stating that “It is better to ask for forgiveness than to ask for permission”, which in turn
encourages every employee to establish the mindset of coming up with conscious decision for
taking the organization forward even though it leads to going hastily and without permission. By
using the skills of creativity and problem solving, the employees are able to perform at their
highest level if the employers readily provide them with the resources and the required support.
As a result of this the process of embracing the saying of “ask forgiveness not permission” the
problem of integration is solved among the employees and mergers and acquisition are able to
thrive and compete well in the market (Seibert, Kacmar, Kraimer, Downes & Noble 2017).
Recommendation on how to solve the conflicting issues
There are several incidences when an individual finds oneself in situations when two
different values conflict each other. This mainly occurs because the needs of the human are
several and there are deficit in resources which help to satisfy them. Therefore it is the duty of
the people to find out ways to solve this problem and to provide recommendations in order to
satisfy both of the conditions. In order to satisfy them, it is important to ask several questions

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that are related to the current situation that causing hindrance to satisfy both values. The
questions also are like what can be done in order to make it possible to satisfy both values? Like
for example doing a job that is good paying as well as have a quality time for the family that are
both significant however both are conflicting in the sense that they take up the time of the family.
There might be a solution for this that includes saving the salary and beginning a good work
which does not require the individual to work at late hours and doing things in order to satisfy
other only nut also it might help to satisfy the values because the earnings went higher and he or
she is having a quality time with his family (Hou, 2015).
The other ways of solving these conflicts is considering both the values but satisfying the
one which is of higher value. Selection of a situation that is of higher value needs to be based on
ceratin questions and being value fully satisfied what importance can it give compared to the
other value when it is also satisfied. By answering the questions it is possible to identify the
situation that is of highest value thus helping to resolve the conflicting values (Henry, Foss,
Fayolle, Walker & Duffy 2015). Like for example while going to the medical when a person is
sick and beginning a new venture with the same money are both significant however here going
for medical has the highest value because if someone does not get treatment he or she will die
and not be there to run business but business can be started later after getting cure (Suor, Sturge‐
Apple, Davies & Cicchetti 2017). Finally there might be a situation where an individual faces
conflicting values or he or she might not be compatible and yet they might not be satisfied with
these as a result of the unavoidable scenarios. By using imagery, someone might be able to solve
the problem so that there is elevation of the conflicting values which can be negotiated and the
importance can be found out by satisfying one over the other (Van Marrewijk (2016).

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Recommended process for two senior executives and their HR to solve integration
The process of workforce planning is taken up by the by two senior executives and their
HR in an organization. This involves prediction of the future needs along with the responding to
the needs of the HR thus which can be implemented in the company. A rational basis might be
provided for planning for the need of expansion as well as funding the programs of the HR that
are important for the attainment of the goals of the organization (Wang, Luh & Navid 2017).
Another process that is carried out by the by two senior executives and their HR is the process
of induction which includes the introduction of the recent employees along with the members of
the staff to the organization along with then work mate. Certain factors which are discussed
while the process of induction takes place includes the past history of the company along with
the cultural practices that are followed by the company. This is followed by the terms and
conditions of the company in addition to their benefits and finally the effective methods of
training related to the working and safety measures. The process of induction plays an important
role in the company since it has an important role to play that helps to reduce anxiety and stress
of its employees along with their managers and their colleagues. This also helps to provide the
employees with a sense of belonging so that he or she is able to acquire confidence with the new
job and feels a part of that organization (Weinzimmer & Esken 2017).
The next process that is followed is the employment arrangement, where the type of
employments that the organization will offer are arranged by the two senior executives and their
HR. There are several types of employment thus involving the positions like full time
employment which requires a person to work 35 to 38 hours in week, this is followed by part

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time employment whereby a person works less hours in a week than the one working full time.
Along with this, there are other employment arrangements like casual workers who are involved
in working at an hourly basis. They usually do not have access to long services like work leave.
In other cases, the company may decide to hire a person who uses a contractor services. For
example a contractor is not a part of the organizational employees hence they do not possess any
employee rights. There are employment cycles formed which considers the number of employees
in the company especially those who are qualified for the work along with the employees who
are required in future (Masalimova & Shaidullina 2017).
Usefulness of management and organizational theories
It is seen that the individual who comes up with the theories of organization and
management majorly becomes dependent on the process of observation in order to create a
model for the activities of business. Hence this is mainly employed for the purpose of increasing
the human resources. The theories of management and organization helps the managers for the
purpose of development of the employees to work at a level which is in the optimum level thus
elevating the productivity (Haldorai, Ramu & Murugan 2018). These theories in turn helps to
build up situations that are crucial for the HR to be fully used. It is also required of the HR to
maintain decent relationships with the employees in order to motivate them and to make them
work the maximum (Winter et al 2018). The theories also play a role the enhancement of the
organization which helps in the adaption to globalization which is recently at stake. Through the
business world of globalization it is possible to become interconnected with the international
companies and with the enterprises of business. There are also certain small companies which
include the high experienced workers in the sector of production who are responsible for

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handling the chain of distribution. With the advancement of information technologies like
internet and others, it is possible to improve the business both for the managers and for the
employees so that an environment is created where the managers are highly close to production
(Wood & Vickers (2018, March).
Conclusion
In conclusion it can be stated that the employees tend to leave their jobs as a result of the
poor management practices. There is also an increase in the circumstance that leads to the
increase the production cost thereby causing a decrease in the value that is offered by the
concerned organization. As a result of which, it is quite significant to understand the qualities of
good management along with the understanding of the organizational theories. This can be
brought about by their own research along with formal education in order to create a model
which helps in elevating the amount of production of the employees along with the removal of
redundancy that is related to the process of production and which also helps to mitigate the
problem of integration.

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