Mergers and acquisitions are areas that may provide a bevy of opportunities for the human resource development practitioner. Prior to any discussion regarding these seemingly elusive constructs, one must examine them from several perspectives. Some organizational leaders may view a specific endeavor as a merger; others may view the same endeavor as an acquisition, which is largely dependent upon some specific particulars associated with the business.

Mergers and Acquisitions (M&As) are an alluring way for companies to cut costs and achieve synergistic financial gains in a growing global market. While profits are the measure of success in M&As, the driving force behind the success or failure rests on the human resources of the companies. The recent reports suggest that 50 to 80% of mergers fail because of an inability to integrate people into a cohesive new entity. It is well-recognized that merging organizations' cultural integration is one of the most crucial and arduous tasks in a merger. When the collective identity of the organization is challenged, the post-merger trauma can be significant to employees and managers. As a result, the organization suffers from employees with poor morale, lack of trust, decreased commitment and attitudinal problems. This article presents guidelines to assist organizations in managing the crucial process of merging organizational cultures. In review of successful M&As, a common characteristic is a proactive approach for creating a new culture that is salient to the people from both organizations. This is accomplished by recognizing the role of both the leader and the employees in the merger process, acknowledging the differences in organizational cultures and using this knowledge to integrate cultural meaning at various levels within the new organization and using every day events to influence change. The role of the leader is significant in creating a synergy between cultures such that employees at every level are excited about the possibilities that lie ahead.

This article presents guidelines to assist organizations in managing the crucial process of merging organizational cultures. In review of successful M&As, a common characteristic is a proactive approach for creating a new culture that is salient to the people from both organizations. This is accomplished by recognizing the role of both the leader and the employees in the merger process, acknowledging the differences in organizational cultures and using this knowledge to integrate cultural meaning at various levels within the new organization and using every day events to influence change. The role of the leader is significant in creating a synergy between cultures such that employees at every level are excited about the possibilities that lie ahead.

HRM Review Magazine, Mergers and Acquisitions, M&As, Human Resource Development, Global Market, Organizational Cultures, Organizational Goals, Cultural Integration, Employee Skepticism, Strategic Objectives, Organizational Leaders.