A merger has been always considered
as an extremely complicated occasion with an apparently unlimited number of
aspects that might able to lead whether to a success or a failure for both
companies that merged together. With the fact that a merger has the capability
to impact lots of parts of both companies in fundamental approaches, a merger
might characterize a highly complex process in organizational changes. In
addition to this, in almost of mergers circumstances, do not appear to deliver
better performance for both companies. Research has proposed that in order to
realize the effective changes, and in specific cultural change, the most
fundamental thing has appeared as the involvement of the CEO who works along
with a team of executives (Kavanagh and Ashkanasy). For this reason,
the top leaders must able to assume the function of the main architect of the
organizational change processes. The cultural differences have been noted as
one of the furthermost broad difficulties branches. Thus, there is an
importance in giving the efforts to focus on the senior level of management which
has the capability to lead the arise of numerous cultures into the new company,
the cultural impacts, along with the slow adaptation performed by the employees
in the new company. Hence, the management definitely needs to take
responsibility for both human and cultural aspects to adjust a positive
approach with a purpose to reintegration ensuing the process of merger. Many
studies have also observed that the managers are the most fundamental players
in developing, renovating, as well as institutionalizing the organizational
culture. On the other hand, at the time when some leaders communicate things
that they assume to be right or wrong, they will make their personal beliefs as
a part of the new organizational culture. Thus, the implementation of any kind
of organizational change frequently struggles in case if the top management or
the leaders are unable to properly frame the organizational changes into the
new company.
Furthermore, the organizational
cultures have been measured as neither static nor constant. Instead, these
organizational cultures have the capacity to evolve throughout the time, and
for this reason, it appears to be logical if we say that all the cultural
systems will eventually reveal the consistent, incremental organizational
changes scattered on the events by more occasional. Moreover, a merger will
always represent immediate and sudden unexpected changes which will lead to the
formation of uncertainty. The role and function of a leader in the processes of
adapting the new organizational culture can be done by the socialization, the
staff selection, elimination of different members, the mechanism of cultural
communication, along with the role modelling of suitable manners.
Some studies have proposed that a
merger is a high-profile and high-risk occasion. In order to get success in the
process of merger, the executives or leaders will be required to align their
goals with a purpose to deliver the best performance and capture the value. At
this point, the leaders should have the capability to make certain decisions in
the full-pressures environment which has high expectations from both companies
that merged, and notwithstanding the tight deadlines that followed the
processes of organizational changes. Unfortunately, some leaders convey the
limited experience regarding integration, specifically for the huge or
complicated mergers. Hence, improving their integration leadership enthusiasm has
been considered as the most critical factor to lead the success in these
processes (Kavanagh and Ashkanasy).
In
the context of a merger conducted between Al Mada and Al Shurooq architecture
companies, the leaders of both companies need to sit down and discuss to
implement the best approaches in the processes of organizational changes. Both
leaders need to build an effective leadership style to integrate the entire employees
from both companies to be one new company. Both leaders need to create a team
to plan how the organizational changes will be implemented properly in the new
company, and also make sure that the entire employees will able to follow and
adjust with the changes and the new environment. For this case, the leaders
from both Al Mada and Al Shurooq architecture companies need to have the
transformational leadership style which is the a style of leadership whereas
the leaders will motivate, encourage, and also inspire the entire employees to
adjust with the organizational changes (Vasilaki, Tarba and Ahammad). Here are some
reasons for Al Mada and Al Shurooq architecture companies to apply the
transformational leadership style in this merger:
A
transformational leader will encourage motivation along with the positive
improvement of the employees
A
transformational leader will motivate the employees to adjust the
organizational changes with clear values, standards, and priorities
A
transformational leader will build an organizational culture by inspiring the
entire employees to move from an old one to a new mindset
A
transformational leader will provide both vouching and mentoring while at the
same time, also allowing the entire employees to involve in the decision-making
process and engage in completing the challenges appear in the organizational
changes
References of Type of leadership style required of the Merger between Al MADA AND AL SHUROOQ Architecture Companies
Appelbaum, Steven H., et al. "Mergers 101 (part
two): training managers for culture, stress, and change challenges." Industrial
and Commercial Training (2007): 191-200.
Bergamin, Stephan and Markus Braun. Mergers and
Acquisitions: Integration and Transformation Management as the Gateway to
Success. Springer, 2017.
Gaughan, Patrick A. Mergers, Acquisitions, and
Corporate Restructurings. John Wiley & Sons, 2015.
Kavanagh, Marie H. and Neal M. Ashkanasy. "The impact
of leadership and change management strategy on organizational culture and
individual acceptance of change during a merger." British journal of
management (2006).
Schönreiter, Irene Maria. "Methodologies for
process harmonization in the post-merger integration phase: A literature
review." Business Process Management Journal (2018): 330-356.
Vasilaki, Athina, et al. "The moderating role
of transformational leadership on HR practices in M&A integration." International
Journal of Human Resource Management (2016): 2488-2504.