NHRD Journal - National HRD Network

communication process because of the
insecurity and uncertainties associated with
the combination process. There are two basic
types of communication that should be
included - first, to keep the organization
members informed about the merger, its
implications, and its implementation and
secondly, to facilitate the work getting done.
In the context of merger, there can be no 'over
communication' - people would welcome
communication. Employees are more likely to
react positively when they are well informed -
about the positive aspects as well as the
negative aspects than when they are forced to
rely on hearsay and speculation. Also, it is
not only important what is communicated,
but also how it is communicated. For
communication to be effective, it needs to be
seen as credible. The information should be
released in an honest, open and timely manner
and there should not be attempts to distort the
truth and manipulate people.
• Co-Opt: For a smooth transition to happen,
there should be an attempt to involve
individuals from both the organizations at
various levels. Setting up of integration
teams, or teams focused on projects, crossfunctional
challenges can be used as
mechanisms for driving this. Integration
teams have been found to be a very effective
mechanism to share information, sort out
operational issues and facilitate execution
of the Integration plan. Moreover, the teams
can serve as conduits of accurate
information and be identified as sources
that employees can turn to. They help the
members to know each other; which help
resolve much of the "we-they" attitude that
inhibits the integration process. The greater
the number of shared experiences that can
be produced early on in the process, the
faster a set of symbols and shared meanings
will develop with which organizational
members begin to identify, which will
facilitate the integration process.
• Collaborate: It is important for a successful
transition that the organizations start
working together and build a culture of
collaboration and trust. In the context of
merger, there might arise, a natural reluctance
to work together. Hence, platforms and
triggers need to be put in place to enable
cooperation. Co-opt is a powerful mechanism
to build trust and facilitate collaboration. In
addition to it, sending the 'Right Signals' help
in this process. Right signals, which appeal
to common values of fairness, respect, care
and reciprocity, serve to break down cultural
barriers and lead to mutual development and
implementation of a common organizational
purpose. Another step in this direction is the
need to enhance reciprocal organizational
understanding. This will enable the
organizations to work on knowledge and
skill transfer, both of which will directly
impact the value creation process.
The intensity and magnitude associated with
each of the Key Actions will depend and vary,
based on the Integration Plan adopted and the
context of the Organization(s). The details - like
when, who, what and how - also need to be
finalized after factoring in the context. It must be
kept in mind that the 4C's are merely the starting
steps in the Integration plan, which would need
to address, along with the macro issues, the issues
at the micro level. At the same time, the Key
Actions (4C's) enable creation of an environment
for successful execution of the Integration Plan.
Conclusions:
• Studies have shown the failure rates in
mergers at 50 percent and one key reason is
the failure to manage people and
organizational issues that arise, in the
context of merger.
• The dynamics involved in the merger
process lead to employees reacting
unfavorably to mergers. This could be due
to culture differences or uncertainty
associated with the process or anxieties on
account of the impact on role; or a
combination of these.
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November 2007 NHRD Journal