How to achieve integration on the human side o the merger

Blake, Robert R.; Mouton, Jane Srygley

doi:10.1016/0090-2616(85)90029-4

Cited by 80 publications

(46 citation statements)

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“…In other words, M & A usually look wonderful on paper in the planning phase, but are diffi cult to implement post-deal. ' Human issues ' and managerial actions in the post-acquisition phase are claimed to be critical for the outcomes of the deal ( Blake and Mouton, 1984 ;Cartwright and Cooper, 1993 ;Birkinshaw et al , 2000 ). The results of our study show that managers should favor interpersonal relationships between employees of both fi rms after an M & A.…”

Section: Managerial Contributionsmentioning

confidence: 61%

Identification Processes in Post-Acquisition Integration: The Role of Social Interactions

Rouziès¹,

Colman

2012

Corp Reputation Rev

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International audienceWe examine the role of social interactions between employees of two firms in a post-acquisition context on their identification with two relevant loci of identification: the pre-acquisition unit and the acquirer group. We used a mixed methods longitudinal design to understand how social interaction foster dual identification. Quantitative results show that social interactions foster identification with the pre-acquisition unit and with the acquirer. Moreover, qualitative results give a finer-grained vision of social interactions. We show that situated identification develops thanks to joint objectives, deadlines, quick wins and contribution to the whole group. This paper contributes to the literature on organizational identification specifying the effects of an understudied antecedent on two loci of identification. It also contributes to the literature on the management of the post-acquisition integration process empirically confirming that social interactions are favorable in the integration proces

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Section: Managerial Contributionsmentioning

confidence: 61%

Identification Processes in Post-Acquisition Integration: The Role of Social Interactions

Rouziès¹,

Colman

2012

Corp Reputation Rev

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“…Organizational and human integration have been described as two distinct concepts (Blake and Mouton, 1985;Birkinshaw et al, 2000). Birkinshaw et al acknowledge that these two constructs are not independent and that enhanced human integration might ease capability transfer and resource sharing.…”

Section: Interplay Between Organizational and Human Integrationmentioning

confidence: 99%

“…First, a general scepticism or fear after the announcement of an M&A, also known as the 'merger syndrome', results in distrust, tension and hostility between employees and senior management (Blake and Mouton, 1985;Marks and Mirvis, 1986). Even if only very few changes are to be implemented, M&A activity has a destabilizing effect on the involved employees (Nikandrou et al, 2000).…”

Section: Human Integrationmentioning

confidence: 99%

Integration Management of Western Acquisitions in Japan

Froese

Goeritz²

2007

Asian Bus Manage

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In recent years, Japan has seen a sharp increase in foreign cross-border merger and acquisition (M&A) transactions. Among the larger cross-border M&A transactions in Japan, a few multinational companies are already struggling with their acquisitions. In this study, we systematically analyzed and compared the unsuccessful DaimlerChrysler-Mitsubishi acquisition with the successful RenaultNissan acquisition. We collected secondary data and conducted interviews with both Japanese and foreign managers. Despite some similar starting conditions, these acquisitions developed widely divergent outcomes. In this study, we have focused on post-acquisition integration and separated it into human integration and organizational integration. Findings indicate that human and organizational integration are strongly interwoven in Japan, with human integration being a necessary prerequisite for organizational integration. These findings highlight the importance of the human factor in the success of acquisitions. Active communication, participation, assertive leadership, commitment and the creation of a sense of urgency have been found to facilitate human integration. With regard to organizational integration, the autonomy of the integration management and independence from any keiretsu network have been identified as important factors.

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“…As a rule, studies that examine the key factors in the success of M&A operations focus on the so-called evolutionist paradigm (Lorenzoni, 1992;Ferretti, 2000), adopting a primarily resource-based perspective (Barney, 1986;Wernerfeld, 1984;Grant, 1999) while attempting to identify the superior contribution of certain managerial and organisational factors to M&A operations whose economic results proved especially positive. Examples include Blake and Monton (1984), Sitkin (1986a and1986b), Salter and Weinhold (1979) and Haspeslag and Farquhar (1987), who have indicated that the success of M&A operations largely depends on the quality of the underlying plan and the consistency of its implementation. Haspeslag and Farquhar (1987), in particular, have stressed the importance of compliance between strategy and structure in the generation of value.…”

Section: The Role Of Corporate Culture In the Success Of Manda Operationsmentioning

confidence: 99%

M&A and Post Merger Integration in Banking Industry: The Missing Link of Corporate Culture

2007

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The intense concentration process taking place in the financial systems of the major countries has attracted substantial attention from stakeholders and academics. The impact of M&A on value creation and efficiency / effectiveness improvements of banks involved appears, on the whole, disappointing and still hard to create benefits for customers. The reason seems to lie in the difficulty of governing a post-merger integration process, which generally requires good governance and management practices, significant experience and attention to cultural profiles and individuals' behavior. More in detail, management literature recognizes the importance of corporate culture, considered as the set of values and decisions that drive individuals' behaviors within organizations, for explaining alliance success in M&A operations. In fact cultural clashes could determine conflicts and negative effects, on one hand, on the timing and the effectiveness of the post-merger integration process and, on the other hand, on motivation and turnover of individuals. Set in Italian banking industry, this paper proposes a framework, applied to a representative sample of cases (about 78,2% of market share, based on total assets), for assessing cultural similarity of actors involved in M&A operations. Corporate culture is measured using an ethnographic approach focusing on language as its special artifact. The assessment is based on the definition of some key concepts that are relevant for the banking industry (e.g., competencies, competition, customer, disclosure, human resources, innovation, risk) and on a text-analysis model applied to a corpus of reference texts produced by the surveyed banks three years before M&A. The elaboration of data uses Wordsmith 4, a text analysis software developed by Oxford University. The paper is organized as follows: at first, we analyze and explain how low levels of cultural compatibility before M&A could limit the success of post-merger integration processes of banks. After, we propose and describe the measurement procedure of the cultural fit among bidder and target banks, based on text analysis. Lastly, we conclude with the discussion of the results obtained for each couple of banks involved in M&A and with suggestions for future applications of our framework.

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How to achieve integration on the human side o the merger

Cited by 80 publications

References 0 publications

Identification Processes in Post-Acquisition Integration: The Role of Social Interactions

Identification Processes in Post-Acquisition Integration: The Role of Social Interactions

Integration Management of Western Acquisitions in Japan

M&A and Post Merger Integration in Banking Industry: The Missing Link of Corporate Culture

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