Healthcare Management (Leadership in Practice: Sack Case 2) Discuss the challeng

Question

Healthcare Management (Leadership in Practice: Sack Case 2) Discuss the challenge of corporate mergers. What are the steps, characteristics, and behaviors a health leader should take to build relationships with internal, “interface,” and external stakeholders? Healthcare Management (Leadership in Practice: Sack Case 2) Discuss the challenge of corporate mergers. What are the steps, characteristics, and behaviors a health leader should take to build relationships with internal, “interface,” and external stakeholders? Discuss the challenge of corporate mergers. What are the steps, characteristics, and behaviors a health leader should take to build relationships with internal, “interface,” and external stakeholders?

Explanation / Answer

Leaders face several challenges during corporate mergers and take possible action to overcome the challenges. The challenges and solution to effective corporate mergers are discussed here. A leader plays the primary role in initiating and completing a merger by communicating both internally and externally. The leader must have an excellent relationship with the merged company to make a smooth transition.
Managing culture is the first major challenge faced by a leader. When a merger occurs between two organizations, the headquarters and subsidiaries of the company might be located in various nations. The culture of the nations and the merged companies differ considerably with the transfer of best practices. The merger of Daimler and Chrysler corporations can be considered the best example of a merger facing cultural challenges. The leader must develop a unified vision for the organization and train the employees accordingly to make the change transition in a smooth manner. The leader must possess the characteristics of a transformational leader like motivating, encouraging, social skills, charisma, empathy, ethical and moral principles to bring a change in the newly merged organization or accommodate the cultural changes that occurred as a result of the merger.
Communication is the second major challenge faced by a leader in a merger. Language barriers and translating information between languages is a major challenge. The BenQ and Siemens merger failure is a classic example of a merger failure due to communication challenges. A leader must provide language training to both the employees of merged companies to enhance communication in the workplace. Leaders must use strategic planning before the merger to overcome the language barriers by hiring an external expert in the field. Experts comment that leaders must work towards integrating the employees together by creating organization values and empowering the employees. When a merger occurs, there will be the fear of job loss perception among the employees. A leader must instil confidence among the employees by communicating with them and providing them with information for future actions. Rumours in the grapevine are hard to handle and the leader must communicate regularly to develop trust and clear ambiguity from the employee minds during a merger.
Employee retention and managing human resources is the next major challenge in a merger. Employee turnover is a major issue after a merger resulting in damaged customer relationships. Negative attitudes develop among employees leading to lower productivity after the merger. Leaders must involve the employees in the merger strategy to overcome the challenges that arise from human resources. Feedback from the employees must be solicited to overcome their resistance to change. The HR managers must work closely with other functional managers regarding the staffing decisions, retaining talent, aligning with new benefit and compensation programs. The HR manager after gathering information from various departments must communicate the desired information to the leader. Merger training and hiring quality consultants on mergers and acquisitions are proactive steps taken by a leader to overcome the challenges of a merger.

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