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Case study on Type of leadership

Category: Corporate Governance Paper Type: Case Study Writing Reference: MLA Words: 1000

            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.

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