Contemporary Management

Case study # 4

Mergers dont always lead to culture clashes

Prepared by:
Mahmoud Nassef Ibrahim
MBA Seeker ESLSCA 53A

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1- Problem definition
Well studied merge between two successful organizations, may face sever culture clashes among both organizations
employees, which will negatively affect the overall performance of the new formed organization.
2- Justification of the problem
As an organization becomes successful, managements expansion plans may include a new merge with another
successful organization, in order to lead and control the market and acquire better market shares.
After applying the studied and planned merge process between the two successful organizations; unfortunately, many
employees inside the new formed organization will begin to fear the change and struggle sever culture clashes.
Everyone wants his culture to be applied and lead the new formed organization forward.
Problems arise when people dont accept the change, as they may feel uncomfortable, because they may fear that the
new coming changes may erode their previous successes they used to have before the merge.
The main reasons behind peoples resistance to change and the slow adapting to the cross culture involvements,
include discourage the adapting to the new culture or find ways to block the cross culture implementations, due to
general resistance between employees of different cultures.
3- List of alternatives
Today, organizations need strong & committed change leaders to create an environment that supports the new merge
processes and drives it forward. Such leaders will accept risk and spend time to overcome resistance to changes.
There are many approaches and methodologies related to establishing a well stable merger between organizations of
different cultures; hereunder three main alternative solutions related:
a. Enforce the overall concept of the Integrated Change among the employees.
b. Implement the phases of the planned organizational change
c. Create team of change leaders to deal with resistance to changes effectively.
4- Evaluation of alternatives
A. Enforce the overall concept of the Integrated Change approach among the employees.
In order to clarify the concept of the integrated change, we must first state the change approaches and how that the
integrated change approach focuses on the advantages of these approaches together:
1) Top-down change
Enhance the overall organizational culture by involving managers who have full awareness of the changes
required.
Top managers encourage employees for change and present their ideas directly to middle management to depend
on their support; in addition to lower level workers.
2) Bottom-up change
Necessarily employees involvement, participation and empowerment are very important, as most employees will
do their best to be involved in the change process.
Creative and motivated managers control the resources that are necessary for the implementation of change.
3) Integrated change
Combines the advantages of both the top-down and bottom-up approaches
From top-down approach, to break all the traditional patterns
From bottom-up approach, to assure the sustainable change as well as continuous organizational learning.
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B. Implement the phases of the planned organizational change

1. Unfreezing stage, where we create the need for change and help people to realize that the existing behaviors
are not effective.
2. Changing stage, where the implementation of the change starts; by identifying new and more efficient ways
of behaving, then taking action to put the changes into place.
3. Refreezing stage, where the stabilization of the change takes place; by providing support and creating
acceptance for the new behaviors.
C. Create team of change leaders to deal with resistance to changes effectively.
To consider education & communication as the most effective key indicators for all employees, this will
support everyone to accept the change. While senior managers would encourage their teams to adapt quicker, in
order to improve the overall performance results.
Managers should recommend the participation and involvement of their teams in all departments.
Change leaders should not rely on any explicit or implicit ways of coercion, while consider the values of the
facilitation, agreement and support; in order to deal effectively with any resistance to change.
5- Recommendations
I recommend applying the first two alternatives in any merge process, in order to avoid any kind of resistance, struggles
and clashes driven from different cultures.
Enforce the overall concept of the Integrated Change approach among the employees.
Implement the phases of the planned organizational change

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