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Presented by Sandy Rogan and JoAnn Pavone

Acculturation. Presented by Sandy Rogan and JoAnn Pavone. Acculturation . Acculturation describes the process of contract, conflict and adaptation as a result of combining cultures. What core competencies are needed to achieve acculturation ?. Respect Listening/ Understanding

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Presented by Sandy Rogan and JoAnn Pavone

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  1. Acculturation Presented by Sandy Rogan and JoAnn Pavone

  2. Acculturation • Acculturation describes the process of contract, conflict and adaptation as a result of combining cultures

  3. What core competencies are needed to achieve acculturation? • Respect • Listening/ Understanding • Compromise/Tolerance • Communication • Education

  4. What are the best methods to use to communicate change? • Roundtable discussions • Group meetings • On-on-one meetings • Intranet updates • Written communication

  5. How do you best create a culture with open communication? • Ask questions • Solicit opinions • Form employee committees • Transparency from management • Develop an avenue for employee feedback

  6. What are the most challenging people issues in M&A’s? • Fear • Anger • Resistance to change • Confusion/ Uncertainty • Uneducated

  7. How is conflict best managed in acculturation? • Compromise • Negotiation • Listening/ Understanding • Flexibility/ Accommodations • Education/ Teaching

  8. The Four Modes of Acculturation (Nahavandi & Malekzadeh, 1988)

  9. INTEGRATION ASSIMILATION SEPARATION DECULTURATION

  10. Integration • Triggered when members of the acquired firm want to preserve their own culture and identity and remain autonomous and independent • Does not involve loss of cultural identity to either company • Acquired company’s employees try to maintain many of the beliefs, cultural elements and systems that make them unique, and are willing to be integrated into the acquirer’s structure

  11. ASSIMILATION • One group willingly adopts the identity and culture of the other • Acquired employees relinquish their culture and practices and adopt the culture of the acquirer • Following the merger- structural, cultural and behavioral assimilation will occur CULTURAL STRUCTURAL BEHAVIORAL

  12. separation • Attempting to preserve one’s culture and practices by remaining separate and independent from the dominant group • Acquired employees refuse to become assimilated in any way or at any level with the acquirer and try to remain separate • There is minimal cultural exchange between two groups and each function independently

  13. DECULTURATION • Involves losing cultural and psychological contact for the acquiring company and the acquired company • Occurs when members of the acquired company do not value their own culture and organizational practices and systems • They do not want to be assimilated into the acquiring company; there are feelings of alienation, confusion and loss of identity

  14. Degree of Multiculturalism MULTICULTURAL UNICULTURAL INTEGRATION ASSIMILATION RELATED Degree of Relatedness of Firms SEPARATION DECULTURATION UNRELATED

  15. How much do members of the acquired firm value preservation of their own culture? VERY MUCH NOT AT ALL INTEGRATION ASSIMILATION VERY ATTRACTIVE Perception of the attractiveness of the acquirer NOT AT ALL ATTRACTIVE SEPARATION DECULTURATION

  16. POINTS TO REMEMBER! Bupa Australia successfully acquired the Medical Benefits Fund Group in 2008 Create a vibrant, new organization- not simply merge existing companies Engage staff in the journey of creating the new organization Provide certainty quickly about positions and the direction and operation of the new organization

  17. POINTS TO REMEMBER! 3 out of 4 M&A’s fail to achieve the anticipated strategic and financial objectives The failure of M&A’s can often be attributed to various HR- related factors: - Culture and management differences - Poor motivation - Loss of talent and uncertain long- term goals

  18. POINTS TO REMEMBER! Layoffs often occur as a result of a merger. The manner in which separations are managed will be watched closely by remaining employees. Have a professional exit strategy in place and provide exiting employees with respect and dignity Offering outplacement services will be noticed and appreciated

  19. POINTS TO REMEMBER! A transparent change process and communication between employees should be a priority in the merger process so that individuals feel included in the process

  20. POINTS TO REMEMBER! The most critical components of acculturation are communication and trust. Even when delivering bad news, employees of newly acquired companies appreciate the truth

  21. THANK YOU! We hope you enjoyed the presentation

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