Cultural Integration in Company Mergers

Paper Summary:

This paper presents an overview of cultural and communication problems associated with the mergers of international multi-cultural European companies. The paper addresses corporate culture integration issues, integrating persons of different nationalities, communication in a multi-lingual environment and with people of different ages and genders and HR practices and benefits harmonization. It then discusses applicable management and communication theories.

Table of Contents:
Objective
Introduction
Review of the Literature
Why Mergers?
Reasons for Failure of Mergers
Attributes Needed by Companies Today
Moving Into New Markets
Corporate Culture - Integration Issues
HR - The International M&A
Communication During the Merger and Acquisition Process
Summary and Conclusion

From the Paper:

"In the international merger and acquisition there are many thing that must be given vital consideration as this work has shown. There are pre-merger considerations as well as considerations during and after the merger in terms of integration, communication, and the responsibilities that HR has in terms of harmonization in the merged corporation. This work has listed the foremost reason for failures of mergers and as well has stated what can be done to avoid these failures. The organization must understand the rationale or strategy that underpins the deal as well as the external constraints and opportunities that exist. It is critical that cultural due diligence be carried out and that this be done prior to the merger in effecting programs for integration that can be put into action immediately after the merger. New management teams need to be appointed quickly and at all levels and at the same time realistic synergy targets must be identified. It is necessary that communication be both consistent and truthful and that the company realize that HR is integral to the merger and acquisition process. While learning the languages that exist in the multilingual environment are preferable, this is not always possible and the use of interpreters is both effective and successful as a means of communication. "

Sample of Sources Used:

• Schuller, Randall and Jackson, Susan (2001) HR Issues and Activities in Mergers and Acquisitions Elsevier 2001 Online available at: http://www.latec.uff.br/mestrado/ rh/Artigos/013.pdf.
• Recklies, Oliver (2001) Mergers and Corporate Culture - TheManager.org Online available at: http://www.themanager.org/Strategy/Merger_Culture.htm.
• Seven Reasons Why Mergers Fail - Emerge International 2006 Online available at: http://www.emergeinternational.com/7_reasons.html
• HR's Contribution to International Mergers and Acquisitions (2006) CIPD Corporate and HR Strategy Online available at: http://www.cipd.co.uk/subjects/corpstrtgy/mergers/hrintlmergacq.htm.
• Dudley, Edward M. (2006) Adventures in Mergers/Acquisitions & Joint Ventures - AICPA Online available at: http://www.aicpa.org/pubs/cpaltr/apr2000/supps/audit1.htm.

More papers on Cultural Integration in Company Mergers:

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