The Eastern Insurance Company (EIC) was formed in 1987. It offers various services including motorcycle covers and education plans, and advice on questions arising from insurance. Before the merger, the Company had a Board of Directors consisting of six members, and twelve employees.
Lion Insurance Company on the hand was formed in the 70’s, initially offering car insurance covers only. With time, the company grew to incorporate Travel insurance, Home insurance, Private medical and dental insurance, Car insurance, Life insurance, and Pet insurance. Being a global company, it had branches across various countries with hundreds of employees. The merger has given rise to one of the leading insurance companies in Europe. A significant component of the union has been the formation of distinct life and non-life indemnity establishments. Company cultures time and again collide after merging, and the outcome can be catastrophic. The Human Resource is faced with the duty of ensuring that both cultures go hand in hand and that the collaboration results to both establishments realizing their objectives.
As the Human Resource Manager, I would employ several strategies to bring out the positive side of the merger. First, I would plan ahead. When companies that have merged give more thought to the commercial and legal consequences of the decision, they frequently fail to think about the cultural implications of integrating different business cultures. The chief verdict that should be made is whether the companies will be run as separate bodies or as one entity. Planning ahead means deciding on whether one of the establishments adopts the other company’s culture, or whether both cultures will integrate (Stafford & Miles, 2013).
The second step would be hiring professionals to help with the merge. Since the purpose of the merge is to form a large successful enterprise, it would be wise to let individuals who have extensive acquaintance and know-how to help with the process. Numerous unions fail for the reason that the people doing the organization are concentrated on economic aspects and fail to reflect on issues like employee morale.
Thirdly, I would involve the staffs in the progression where possible. I would generate cross-operational post-merge groups that comprise of personnel from both corporations to develop the logistical particulars. The reason for choosing this step is because it gives the staffs some proprietorship of the course as well as helping the cultures to get a way to work together (Wickford, 2016).
Communicating regularly with both companies would be the next step. I would identify any problems that may arise from the union, address them professionally, and propose solutions with the staff members, then keep them updated on improvement on a consistent basis. This strategy allows one to pinpoint the talent that he/ she would wish to keep and give them motivations to stay.
The fifth step is to exploit any chance to bring together the cultures fully. Conferences, small group retreats, and out-of-office activities would be the perfect approach to make individuals from the two cultures to talk, share, and interact with each other (Sinha, 2007).
Sixthly, retaining the paramount practices, rules, and structures of the cultures, instead of holding onto one company's strategies and eliminating the others would be an important step. It would be necessary to involve them in dialogs as one decides on what to retain and what to reject. The reason for this step would be to prove to the employees the merger was the best option and not an intimidating takeover.
Next, I would identify the strong points and faults of each enterprise involved in the change. It is important that everyone involved has the goals of the establishment at heart regarding the impending growth and progress of the combined venture. Once the strengths and weaknesses of each company are identified, I would develop a plan of action delineating strategies to achieve the objectives.
Lastly, I would give the union time as I observe how well the goals are realized. Integrating two cultures requires sufficient time. This will give me enough time to nurture the companies, communicate, and follow the progress.
Cultural incorporation is an activity that does not take place in a day. It requires time, dedication, and willingness of the two companies to come up with a distinct plan. The top management should be on the forefront in showing the employees that the merger was the best option. Communication, planning ahead, hiring professional help, and identifying the strengths and weakness of both cultures are among the steps that should be taken to effectively incorporate the cultures.
References
Sinha, P. K. (2007). Current Trends in Management. Channai: Nirali Prakashan.
Stafford, D., & Miles, L. (2013). Integrating cultures after a merger . Bain and company, 1.
Wickford, H. (2016). How to Merge Two Different Cultures in the Workplace . Chron , 1.
