Culture impacts the decision making process in an organization to a great extent. In a system of management where there is no appropriate delegation of powers, when one has to look up to the top even for minor decisions, the work-flow gets bogged down. The ranks’ having no responsibility or accountability does not augur well for a company that seeks growth. When the ranks follow the routine procedures, without empowerment, no scope for new ideas exists.
The changes need to be in tandem with the existing organizational culture. Failure to analyze this factor will result in resistance to changes by the workforce of the organization, because the corporate culture is a strong, invisible force. It is experienced in every aspect of the work and dealings of the employees of the organization, as it has been transmitted to them since long, often from generations.
Changing strategies demands constant attention, in the context of globalization and internet revolution. Strategy is an important development in the life of an organization. All successful organizations have two important qualities. They are healthy and smart. Smart, because they develop intelligent strategies like product features, marketing plans, and financial models that score distinctive advantage over competitors. Healthy as no confusion and politics exist in the working of such an organization which results in high morale and higher productivity.
Think-tanks of an organization formulate the strategies after intensive deliberations, and yet they may prove to be unproductive. Great companies do make great mistakes. But a dynamic strategist is quick to grasp where the faults lie and initiate remedial measures. When strategies are changed the chances of disorientation in the organization are real. The management may feel trapped when the strategy backfires, and doesn’t deliver the expected results. Therefore, any change in strategy must not be at the cost of the organizational clarity. With the advent of global competition in business, the strategists in the organization have to take into consideration factors related to the personal life of the employees that have assumed alarming dimensions.
According to Suzan Lewis & Cary L Cooper(2005), “ Work-personal life harmonization issues are experienced in the context of diverse cultural expectations, levels of government, workplaces, family and varying economic and social contexts and conditions. But, many of the core issues are similar, across the different contexts, particularly as globalization and technology have made the world more interdependent.”(p.131)
Mergers and Acquisitions
Mergers and acquisitions of business organizations have received great push in the context of globalization. Due to historical and several other unspecified factors, the cultures vary. Merger does not bring forth uniformity of cultures overnight. It is an on-going process. It is likely to hit many roadblocks. The two cannot walk together, unless they are agreed. Every organization has certain in-built distinguished features that differentiate it from the other organizations.
Generally, merger decision generates at the top. It is a policy decision which the two managements have taken after detailed deliberations taking into considerations the pros and cons of such a move. From the day of the merger, a new corporate culture begins to evolve. But the imprints of the past are difficult to erase. The pangs of the merger are experienced intensely at the grass roots level. The employees in such circumstances have two choices. Carry on with the available discipline of the post-merger era or quit the organization to seek choices elsewhere.
Though merger is decided at the highest level, what is important is the integration of the minds of the employees of the organizations in different cadres. If one of the merged organizations enjoys a better position, the employees of that organization will feel that their chances of promotions are blocked by the workforce that has just arrived. Merger is a calculated business gamble and the clash of the cultures is the inevitable consequence.
Ref: Lewis, Suzan & Cooper, Cary L. (2005).Work-Life Integration: Case Studies of Organizational Change: Wiley; 1 edition