Process Of Merger Integration-B.V.Raghunandan

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the steps involved in the process of bringing two entities together or absorbing one unit by another

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Process Of Merger Integration-B.V.Raghunandan

  1. 1. B.V.Raghunandan, SVS College, Bantwal. Karnataka-India
  2. 2. <ul><li>Type of Merger decides the Mode of Integration </li></ul><ul><li>Identities are retained, lost and created </li></ul><ul><li>Involves Integration of systems, processes, procedures, strategy, reporting systems etc </li></ul><ul><li>Most difficult aspect is integration of people </li></ul><ul><li>Mergers prompted by efficiency may involve downsizing and consolidation </li></ul><ul><li>Requires change of mindset, cultures & behaviour </li></ul><ul><li>Involves redistribution of power, conflict of interest and divided loyalty </li></ul>
  3. 3. <ul><li>Power, Authority, designations and positions to be redistributed </li></ul><ul><li>New designations may have to be created </li></ul><ul><li>Style of management and working relations decide the culture in an organisation </li></ul><ul><li>Any serious variation must be tackled </li></ul>
  4. 4. <ul><li>Power - Autocratic </li></ul><ul><li>Role -Bureaucratic and Hierarchical </li></ul><ul><li>Task -Team Work and Project Assignment </li></ul><ul><li>Persons -Equality of Human Beings </li></ul>
  5. 5. <ul><li>Culture Audit should be conducted as a Part of Due Diligence </li></ul><ul><li>Methods of reducing the resentment of Top Management should have been devised </li></ul><ul><li>Where the methods are not sufficient, it may result in turnover of top management personnel and employees </li></ul><ul><li>Real Integration can not tart unless the resentment is removed </li></ul>
  6. 6. <ul><li>Assessing Speed of Change </li></ul><ul><li>Establishing Clear Leadership </li></ul><ul><li>Clarity of Communication </li></ul><ul><li>Maintaining Customer Focus </li></ul><ul><li>Making Tough Decisions </li></ul><ul><li>Dealing with Resistance </li></ul><ul><li>Taking Focussed Initiative </li></ul>
  7. 7. <ul><li>Not creating sense of urgency for change </li></ul><ul><li>Not creating powerful coalition </li></ul><ul><li>Lacking vision for the organisations </li></ul><ul><li>Insufficient Communication </li></ul><ul><li>Lack of proper planning </li></ul><ul><li>Ignoring resistance </li></ul><ul><li>Setting easy targets and making show-offs </li></ul><ul><li>Not anchoring changes in corporate culture </li></ul>
  8. 8. <ul><li>Board Level changes </li></ul><ul><li>Appointment Heads of various divisions </li></ul><ul><li>Rationalising the functions like production, research and marketing </li></ul><ul><li>Performance Evaluation </li></ul><ul><li>Remuneration/Rewards </li></ul><ul><li>Key People Retention </li></ul><ul><li>Conflict Management </li></ul>

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