Organizational Culture in the Management of Mergers

Organizational Culture in the Management of Mergers

Organizational Culture in the Management of Mergers

Organizational Culture in the Management of Mergers


This book focuses on the importance of organizational and human factors in the long-term success of mergers. While the failure of many of the 1980's mergers points to the need to implement the merger of two organizations as cultural entities, much of the focus has been on pre-merger financial planning. This volume explores the roles of organizational culture, strategy, leadership, and structure in combining two organizations. Special attention is paid to the need for the two merger partners to negotiate the process of implementation rather than to have similar cultures.


The purpose of this book is twofold: (1) to demonstrate the importance of organizational culture and people in the successful management of mergers and (2) to provide a framework for analyzing and managing the process of merging cultures, people, and strategies. We hope to provide the reader with information that can be used in planning the merger of two organizations.

Although much has been written about mergers, the central focus has been on the financial aspects. We first became interested in mergers about ten years ago when one of us attended a conference at which John Berry, an eminent cross-cultural psychologist, presented his research showing how the native cultures of Canada have adapted to pressures from the dominant Canadian culture. Berry had no interest in organizational mergers, but his ideas appeared to be so pertinent to mergers that, after the conference, we began the process of researching the role of culture in merger strategies and eventually developed the model that became the foundation for this book.


This book is targeted to all individuals who, as members of acquiring or acquired organizations, have the power to negotiate some of the processes for the implementation of mergers, as well as to those who are simply at the receiving end of all the changes. Executives who negotiate a merger can use the ideas presented in this book to plan for the cultural aspects that are often the key to the success of a merger. Less influential bystanders can also gain an understanding of the cultural adaptation processes that . . .

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