Culture Acculturation

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As mentioned before, culture is unique for each organization. There are no two companies are totally fit in term of their culture, therefore, every company in M&A have to experience an acculturation in the post-acquisition integration process. Larsson and Lubatkin (2001) defined acculturation in M&As as “the outcome of a cooperative process whereby the beliefs, values, and assumptions of two previously independent companies form a jointly determined culture.” Vancea (2011) suggested four possible strategies for acculturation. The first one is “integration” which means a combination of the two cultures through a reciprocal influence. The second strategy is “assimilation” which requires the adoption by the company of the other’s culture and identity.…show more content…
This stress of employees usually comes from uncertainty rather than changes. Employees may rely on rumors to reduce their uncertainty if there is a lack of formal information from management regarding on the M&A. This kind of rumors usually enlarges the negative information and would create greater stress and tension among employees. Therefore, communication is a key in the post-acquisition integration. Weber & Drori, (2011) argued that communication not only helps to reduce uncertainty, negative attitudes and behaviors of employees, but also increase cooperation and commitment of employees, enhance company’s image of caring and trustworthy, and ultimately establish a new organizational identity. Communication allows management to have a better understanding on the point of view of employees from the acquired company. It can also help to identify their concerns and keep monitoring of their attitudes and expectations throughout the whole integration process. The focus of communication should be on the employee’s major concerns in the M&A such as arrangement of redundancy, changes in compensation and benefit, work conditions in order to mitigate their…show more content…
Their reactions include adaption, commitment to new expectations, resistance, dysfunctional behavior or withdrawal. The intention of many M&A is based on the belief of acquirer that they can better utilize the physical capital or human capital of the acquired company, therefore, they seldom provide autonomy for the managers of acquired company and expect them to conform to the preferred management practice of the acquiring company. It creates pressure which may lead to negative attitudes in terms of cooperation, commitment and job satisfaction, and thus result in a high turnover rate of employees. If this situation occurs among top management of acquired company, there will be a more serious impact on the success of the M&A because they are the key asset for the acquired company and are not easily be
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