Merging between two companies

Session 4: Workshop, Oct 22nd 2008

Part A

Imagine that one organisation is merging with another. You need to consider how 2 (new owners and the old employees) group communicate. (Considering an example of two companies, Company U and Company Q, to better understand the issues involved in this transition. Company U is a British training company, that's been around for 20 years. It consists of 15 people, and Company Q, an Indian company, with employee strength of 200 people, has bought it.)

> What emotional aspects do you see involved?
> What would you do to improve communication on each side (owners, employees)?
> Any support of information technologies?

Emotional aspects: Negative aspects - job insecurities; downsizing; adapting to rules and regulations of new company; adaptability of new environment; cultural differences; loss of independence;shift of control; insecurity about remuneration, vacations; insecurity about efficiency of new employees.
Positive aspects - excitement over new things (new stationery, location, opportunities, ...); company going international, new market, better career prospects;
more exposure, interacting with new people; pride over merging with an international company.

Imrove communication: Keep everyone aware of what's happening, by emails and newsletters; joint presentation by representatives of both companies, example of working together; informal meetings, lunches; representatives from each company visiting the other country to get familiarised with the new environment; video conferencing among employees; constant feedback from employees by questionnaires and meetings;

Support of information technologies: Technology has made communication better and easier; video conferencing, emailing, telephone.

Narrative of 300 words describing the stratergies to make the merging of the two companies very smooth.

The merging of two companies is a difficult time for everyone involved in the transition. Consider an example of two companies, based in two different countries. Both companies involved have to work together in order to make the transition as smooth and hassle-free as possible. Good communication is essential between both parties. As far as employee concerns, both companies should make sure all their employees are involved and kept aware of what's happening. Representatives from both companies can conduct presentations/induction programmes together to make their employees comfortable with the other company and the people they're working with. Seeing their superiors working together, discussing the new company policies and regulations, helps make the employees comfortable.

Downsizing and job insecurity being the major issues, employees should not be made promises that cannot be kept. If any assurances are made, they should be ones that can be kept. Regular updates, through something as simple and effective as an e-mail/newsletter can help the employees be kept informed at every step and learn about the new environment.

The employees would be feeling a loss of their independence. Cultural issues come in, some practices considered efficient maybe considered as a waste of time by the other side. When a merger occurs, sacrifices are usual, but they should be taken as a step towards growth. Care should be taken to make sure both companies are comfortable with the issue at hand. Perhaps by getting feed back from the employees in the form of questionnaires and open sessions, involving employees and executives discussing issues face-to-face, would help in better resolution. Video conferencing among employees of the two companies can help both sides understand their work and culture, or even personal visits. Better communication between everyone involved can make the whole process much smoother, and the employees and owners will look forward to working together.