Change and Culture Case Study

[Name of the Institute]Change and Culture Case Study

Introduction

Merger of two health care companies has an impact on the managers, clinicians, consultants, nurses, staff and other employees of the organizations. There are several motives behind merging two organizations in a single organization. In this case study, the merger takes place in order to provide good quality patient health care service and to make use of inpatient and outpatient services offered by the other company. This article discusses the impact of the merger on the culture and employees of the company. A middle manager faces many challenges when his health care company merges with a formal competitor. Matters become worse when the employees used to perceive the competitor as an enemy which offered reduced quality of service. In this study, the measures required to be taken by the middle manager in order to ensure that the combined staff works together towards providing quality health care. This article also sheds light upon the development of systems in accordance with the shape of the newly merged company.

Discussion

The main interest of companies in mergers is to exploit the synergies. Majority of the firms fail as they try to merge mainly due to the enormous cultural differences between the two organizations (Smith, 2001). Major focus of the firms is on its finances. Managers get preoccupied by the financial synergies, market business and shareholder values. In this way, their attention gets diverted from their employees to the finances of the organization. The cultural and human dimensions of the company tend to be ignored. These dimensions require to be blended in order to make the employees of both firms work as a single unit. This would help in advancing and developing the company. Middle managers play a crucial role in managing the changes that have been brought about due to the merger (Hirschfield, 2011). The new firm has several inpatient and outpatient services which the second firm does not. This can help in projecting a positive working environment for the newly merged firm. The central aim of the newly merged organization is nothing but high quality patient care.

Effect of the sale on the culture of the combined company

During and after the merger, both organizations face a clash of culture. This cultural clash turns out to be one of the primary reasons for the unsuccessful mergers. The working conditions for employees as well as the culture of the organization will be immensely affected (Gallagher, 2000). The human factor is one of the most significant factors to be considered during mergers. As both the health care businesses have their own manner of carrying out daily routine activities related to their business, the workers are familiar to the way in which the organization works. The policies of both firms require to be merged as well. The roles and job descriptions of the majority of the employees will be affected and changed due to merger. The reporting authorities and managers of employees will get changed.

The working relationships between ...