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Change And Merger Essay

1583 words - 7 pages

Change and Culture Case Study I

Mergers occur almost every day in the business world for one reason or another. In health care two or more facilities may merge because of lack of staff, budget cuts, or poor administration that causes pending closures of one or more facilities.
When mergers of two healthcare facilities occur, top line management and administration are normally always the first to get the axe from the healthcare facility that needed the bailout. This leaves middle management with the task of effectively aligning the staff of the healthcare facilities without causing conflict that would undermine the good nature of the newly formed health care facility. The scenario ...view middle of the document...

There is normally not a concentration on the culture of the business.

This is where the Human Resources departments of the merged health care facilities come into play. The two health care facilities must first align the staff of the newly formed human resources department with staff from both facilities. The role of each person should be clearly defined along with their responsibilities. Human resources will work design a culture that is favorable to everyone. Human resources will need to apply systems that will be able to combine the way each facility has handled different situations. They will develop new policies, expectations, and expected behaviors for the employees, communicate it to all staff and train where appropriate, the training will be inclusive of both health care cultures prior to the merger. For example, if one the health care facilities were accustomed to perform better in training programs that rely more heavily on structured and passive learning techniques, such as reading assignments and lectures, and the other facility’s training culture was human resources based, the newly formed human resources department would develop a cross-cultural training that would be inclusive to both styles (Weber, & Tarba, 2012). Nonetheless, these factors can be the reason for the merger but the impact that employees of the different health care facilities and what skills, trades, and expertise they bring to the facility are usually not a factor in the decision to merge.
Mergers tend to have a more negative affect to the employees of merging entities which can affect the business culture of each individual health care facility. One facility business culture focused on patient care and the other facility focused on services provided. Merging causes the two facilities to be undecided on what will be the culture of the newly formed health care facility. The behavior the employees will also affect the merger because each facilities employees are used to doing their duties a specific way and the health care facility that did the bailout or saved the other facility from shutting down feels superior over the other facilities employees.

Combined with the fact that these separate health care facilities were competitors will also weigh heavily on the success of the partnership. This will lead to conflict among the employees and management will have to set up a series of training and seminars to help the employees co-exist with each other. According to Giessner, Ullrich, and van Dick, (2011), “it is often the merger’s impact on employee identities as members of the pre-merger organizations and its consideration by change leaders that determines the merger’s failure or success”. The merger of the combined health care facilities will also have an influence on who remains in management, who graduates to management positions, as well as which process of each facility will remain in effect. An important factor in this merger is to...

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