This case study examines the nature of a business merger. The two companies being merged are Uwear and Paledenim. These two companies have very different company cultures. Uwear is a company that is public and has 100 employees. The company has a culture that allows them to do their work, go home, and not consider other employees or future tasks. Paledenim is a private company with 15 employees. Their culture is one of helping team members and always keeping in mind the success of the business. This paper explores various strengths and weaknesses among the managers in execution of their duties (Walton & John, 2004).
Strengths and Weaknesses
Uwear has many strengths and weaknesses within their culture. The management does not enforce teamwork, but rather each employee is an individual only responsible for their particular duties. This is a weakness because the employees are not working as a team. With team work comes different views and more ideas. However the strength in this style allows for the employees to complete tasks in a timely manner and be completely focused on their own work. This management style is not wrong, but could benefit from other styles.
Paledenim practices a culture that promotes teamwork. The weakness in this style allows for complacency on the part of employees. Some employees may not reach deadlines because they know that other employees will help them if they are in a bind. The strengths are that this type of culture allows for shared ideas and a group effort to complete tasks. The employees are not only focused on their own success, but a shared success for the business. The management’s promotion of teamwork is helpful to an overall success, but can be flawed at times.
The strongest way to deal with employees is to have a mixed style of dealing with them. Management should consider taking in multiple management styles to use. An democratic style often works better than an autocratic style.
The Best Approach
When the merger happens, it is important that each manager is handled in a manner in which they will respond positively to the event. As managers, they have influence over their employees as to whether employee morale will rise or drop after the merger. Uwear’s manager will be told exactly what will happen and how it will take place. He will be given specific duties and instructions for himself and employees. This is how he will respond best to the news. Now the manager from Paledenim will be asked questions and persuaded to become part of the new team. He will not appreciate being given orders, as that is not his style.
These approaches will help to ensure that a plan for the merger will be formulated and implemented. They will also be introduced and briefly trained as to how the new company culture will work. There will be a mix of the cultures to ensure greater success. The new policy will include an atmosphere that encourages teamwork, but also assign specific duties to each employee. This will ensure the best outcome for the company. Their understanding may be achieved through offering challenging tasks but attainable. Such a strategy may help in enlarging the employees’ abilities without discouragement hence efficient performances (Hesselbein & Paul, 2003).
Dealing with people in the best way they respond is the most successful way to get things done. Each person is different and must be handled in a different manner. Leadership styles suggest that this be accounted for when trying to get a task accomplished. If leadership tries to act as dictators rather than part of the team, the staff will not respond positively.
New Policy and Challenges
The managers from each company may not believe that this new culture will work. They may believe that there management style is the best. However, the weaknesses noted above can be pointed out. Though neither style of management is incorrect, if the styles are merged there will be more success. It is the job of the new management to make the prior managers understand the importance of a company culture that seeks success and foster employee growth. The above approaches to management will help with this concept.
The training will of course be ongoing. Managers of a merged company need to attain knowledge on how to bring the two different groups of employees together. In different companies there are different strategies of management, thus in order to bring such as employees together as a manager of a merged company, it is a must to attend seminars about leadership strategies of merged companies (Northouse & Peter, 2001). This is a chellenge to the management. Bringing two separate groups together can be difficult. Employee morale could suffer, as well as productivity. The management must face these challenges and resolve them immediately. Their guidance is necessary to success. The managers will be able to face these challenges head on with the new plan that has been implemented of a mixed company culture based on the importance of hard work, as well as teamwork. Also the training will help to lessen these challenges in the future.
When merging two companies that have different cultures, it can be very difficult to create a new, mixed culture. The managers must be willing to change in order to influence employees. They must also be approached by new management in ways that fit their style in order to make this a positive experience. If management can help this process, the merger will be successful.
Hesselbein, T & Paul M., (2003). Leader to Leader. San Francisco, CA: Jossey-Bass Publishers.
Northouse, B & Peter G., (2001). Leadership Theory and Practice, second edition. Thousand Oaks, CA: Sage Publications, Inc.
Walton, S., & John, H., (2004). Sam Walton: Made in America: My Story. Canada: Bantam
Books, p. 120-140.