What is it about?
After a merger, organizational functions are often combined for cost saving purposes. The paper discusses how enhancing, rather than reducing the pre-merger identities of both organizations can help to promote positive post-merger integration.
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Why is it important?
The human toll of mergers are a leading cause of merger failure, with employees in newly acquired firms often feeling alienated and dis-attached from the standalone organizations they once worked for. The paper provides a novel avenue for how to maintain per-merger identities, making acquired employees feel more comfortable in post-merger organizations, while still promoting positive integration with employees from the partner company.
Perspectives
Pre-merger identities are often stripped in order to promote better post-merger integration. This process robs the newly formed organization of history, organizational memory, and depth which once motivated staff to perform. Finding ways to keep organizational identities in tact, without damaging performance, therefore becomes essential for the authenticity and success of the merger process.
Jay Joseph
University of Kurdistan Hewler
Read the Original
This page is a summary of: Managing change after the merger: the value of pre-merger ingroup identities, Journal of Organizational Change Management, May 2014, Emerald,
DOI: 10.1108/jocm-10-2013-0184.
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