1. Introduction and Organizational Context
We chose the topic of Merger and Acquisition as they are very relevant and prevalent in the current time. Still, acquisitions are tricky. Corporate cultures need to mesh, as do revenue and expense synergies. While CEO's often see themselves as empire builders looking to grow their companies by any means necessary, the reality is that successful acquisitions that really help companies long-term are in the minority.
There are many factors involved during M&A such as: volume and valuation, growth, TMT convergence, talent management, business transformation to name a few. According to our case study one of the most important aspects that we believe ...view middle of the document...
They have grown quickly in the last 5 years with 100 Oracle Commerce projects delivered. Merging with Company A gives them the ability to deliver strategy, user experience, big data analytics, mobile device management which is important to their clients down the road.
2. Exploration of Organizational Behavior Dimensions
Company B has faced a revolution while the acquisition process was happening. Leaders had key roles to keep teams motivated and successfully complete the process. “Leadership is the ability to influence a group towards the achievement of goals.” But how did leaders from Company B influence their teams? What were the main activities? What were the challenges? These points will be explored below.
Source: MBA Katz, Organizational Behavior Course, Professor Nisha Nair
An important part of efficient leadership is communication. Effective leaders have the ability to communicate their ideas and build trust within the team. During M&A processes employees tend to feel insecure, wonder about the future, and feel disconnected from the company. Leaders at Company B trying to avoid these standard behaviors, developed and conducted a proper communication channel for employees to better understand the steps involved and the main risks of the project. It was a clear and transparent structured plan that helped the company keep the execution of the project on track. Employees knew not only the pros and cons of the whole process but also how, when and if they could help in some tasks. Company B has transactional leaders, who guided and motivated the followers in direction of established goals by clarifying role and task requirements.
Also, retention bonus were created to retain the best employees. Leaders, rather than managers, focus on people (not tasks), build processes (not controls), and influence (not organize). Leaders knew that to complete this revolution in the company they would need engaged employees. It is important to highlight that leaders talked to each employee to decide together with them what the main goals would be and the expected results. Moreover, all salaries, even though the company was doing a turnaround in all processes, were paid exactly on time. These two initiatives helped the company retain the talents and keep its intangible assets (intellectual capital). Engaged and high performance employees can train their successors and spread the company`s culture. Even though leaders used the ability to reward and sanction they acted as transformational leaders since they inspired followers to transcend their own self-interests (talking individually with them) for the good of the organization. It was a strategy to retain the best employees and to create a sustainable organization.
Finally, but not less important, it is worth to highlight the role of the managers of processes. Timesheets and billing were unaffected and financial consolidation was as expected. It seems easy, but these...