Session 4 workshop- Merging of two companies

MERGING OF TWO COMPANIES

Participants-
SUMIT
TONY
PAUL
CINDY

Task - Human Behaviour during merger of two companies

There are two companies Q & U. Q is an Indian Company which is taking over U, a UK based company. Q co. is taking over U co. There are several issues when there are two companies merging. These issues are from both the companies, i.e. Parent co. and the merging co.

There are several issues to be taken care of and dealt with in case of a merger. There are emotional issues involved with the decision of the two companies. These issues should be taken care of while merging of the two companies. The employees in the U co. might feel that the working enviroment and organisational structure in the Q co. would be different from their co. so they would resist the change and would not agree to the merger. There would be different social rules and regulations of Q co. which does not match with U co. The employees of U co. would feel a sense of insecurity of losing their job.

There emotional issues involved in merging two companies can be behaving in such way: first of all, we think of the employee in U co. they might have kind of resistance to merging with other co. since they have different couture/social background, and further for, when two companies merge together, competition will increases among employee or even manager in different department, they are afraid of losing they current job. Secondly, U & Q Company has their own rules, regulation and work policy, and it would be quilt a lot different the one in UK and the one in Indian. As a parent co. Q company wants U company done jobs according to their rule, however, U co. may not like to follow Q company’s rules to against their own rules and market. And finally, people have different way of thinking, again it might because of the couture differences, some employee may afraid of merging so that they will have lot of complain, but some employee may take this as a challenge to work hard, to develop themselves.

There are several methods for improving the communication among employees and the owners of the two co.'s. A bridge should be built up through informal communication and social gatherings such as company parties. There should be task alloted to the groups of the two companies. This would allow the employees of the two companies to know each other in the work enviroment as well and help the employees of the U co. to know and adapt to the working enviroment. Both the co.s' should clarify the doubts of the employees of their co. that how this merger will help them in increasing their capability and they would not be losing their jobs because of that. Q co. should take the initiative of organising training events to make the employees of U co. understand the culture and working enviroment of Q co.
Last but not the least, the same information technology platform should be used in both the companies with wich both the companies can easily familiarise with. Companies should ensure the communucation between the two is running smoothly by using telephone, e-mail, fax, video conferencing, skype, etc. This would facilitate the companies in creating a healthy work enviroment.