MBA 3041 ORGANIZATIONAL CHANGE AND

DEVELOPMENT ASSISGNMENT

ON

Organisational Culture and Mergers &

Acquisitions

BIRLA INSTITUTE OF TECHNOLOGY

MESRA - 835215, RANCHI
NOIDA CAMPUS

Submitted By
Sushant MBA/4542/13
Vidushi Gautam MBA/4543/13

ACKNOWLEDGEMENT

We would like to convey our gratitude towards our bank management lecturer
Dr. Monika Bisht for helping us in completion of the assignment.
We would like to thank her for her sheer guidance, support and time whenever
needed.
We would also like to thank our friends for supporting us in the completion of
the assignment.
Last but not the least we would also like to express our Heartfelt thanks to our
parents and siblings as without their support and motivation the assignment
would not have been completed.

LIST OF CONTENTS

1. Organisational culture
2. Strong versus Weak cultures
3. Types of organisational cultures
4. Organisational culture model
5. Mergers & Acquisitions
6. Types of M&A
7. Impact on M&A
8. Recommendations
9. Conclusion

ORGANISATIONAL CULTURE

An organizational culture, also termed as Corporate Culture, is comprised

of the patterns of shared beliefs and values that give the members of an
institution meaning, and provide them with the rules for behaviour in their
organization. The culture is not generally recognized within organizations,
because basic assumptions and preferences guiding thought and action
tend to operate at a preconscious level.
Nevertheless, this preconscious level affects many areas within the
organization, including, performance, cooperation, decision making,
control, communication, commitment, perception and justification of
behaviour.
Edgar Schein (1992) gives a clear definition of the corporate culture: a
pattern of shared basic assumptions that the group learned as it solved its
problems of external adaptation and internal integration, that has worked
well enough to be considered valid and therefore, to be taught to new
members as the correct way to perceive, think, and feel in relation to
those problems.
Moreover, he defines the corporate culture by dividing it into three levels:
- At the first level of Schein's model there are the organizational
attributes. This level includes the facilities, offices, furniture, visible
rewards, the dress code, and how the persons apparently interact
with each other and with the external members. Those elements of
the culture are easily discerned but hard to understand.
-

The second level includes the espoused values. At this level, there
are the company slogans, mission and, internal and personal values
that are extensively expressed within the organization. This level
contains the strategies, goals and philosophies of the organization.

At the third and deepest level we can find the organization's tacit
assumptions and values. These are the elements of culture that are
invisible and not cognitively identified between the organizational
members. Additionally, these are the elements of culture that are
usually taboo to discuss. Many of these unspoken rules exist
without the awareness of the membership.

According to Shein, the notion of corporate culture is broadly accepted as

important as a business concept or financial control and employee
satisfaction. He incorporated five elements in the corporate culture:
1. The business environment - the orientation of the organizations
within this environment which influence the cultural style.
2. Values - are in the centre of the corporate culture. They are build
up from the key beliefs and concepts shared by the employees.
3. Heroes they are the personifications of the organization's values;
they represents the role model in order to conduct the employees to
the success.

4. Rites and rituals - ceremonies and rituals that reinforce the

culture (sales conferences, product launches, employee birthday
celebrations ...)
5. The cultural network - stories and gossip which spread
information about the valued behaviour within the organization.

The corporate culture is, to some extent, influenced by the national

culture & involves 5 dimensions:
- Power distance - how are the status differences marked between
people with high power and low power?
-

Collectivism versus individualism - is a culture focused on

individuals or groups?

Masculinity versus feminity - the aggressiveness is related to

masculinity. It is the level to which individual are competitive and
self-confident.

Uncertainty avoidance - a measure of flexibility and need for

rules.

Short versus long term orientation past - oriented or futureoriented people; short- term profitability or long-term growth.

Strong versus Weak Cultures

Three elements determine the strength of corporate culture:
1. The number of shared beliefs, values, and assumptions. The higher
the number of shared assumptions, the thicker the culture. In thin
cultures, there are few commonly held assumptions and values.
2. The number of employees who accept, reject, or share in the basic
beliefs, values, and assumptions. If employee acceptance is high, a
strong corporate culture will emerge.
3. The higher the number of shared beliefs, values and assumptions,
the stronger the culture of the organization.
Once a corporate culture is established, it provides employees with
identity and stability, which in turn provide the corporation with
commitment. On the other hand, a strong culture, with well-ordered
values, beliefs, and assumptions may hinder efforts at change, especially
in a merger or takeover. Much will depend on the type of merger and the
compatibility between the two organizations cultures.

Types of Organizational Cultures

Roger Harrison describes four main types of organizational culture
Power Cultures
In organizations with power cultures, power rests either with the
president, the founder, or a small core group of key managers. This type
of culture is most common in small organizations. Employees are
motivated by feelings of loyalty towards the owner or their supervisor,

these types of organizations foster a sense of tradition in both the physical

and spiritual sense. Power cultures tend to have inequitable compensation
systems and other benefits based on favouritism and loyalty, as well as
performance.
Role Cultures
Role cultures are highly autocratic. There is a clear division of labour, and
authority figures are clearly defined. Rules and procedures are also clearly
defined, and a good employee is one who abides by them. Organizational
power is defined by position and status. These organizations respond
slowly to change; they are predictable and risk averse. This type of culture
thrives in industries which employ mass production techniques, in
automobile manufacturing, for example.
Task/Achievement Cultures
Task/achievement cultures emphasize accomplishment of the task;
research and develop-ment is an example. The employees usually work in
teams, and the emphasis is on what is achieved rather than how it is
achieved. Employees are flexible, creative, and highly autonomous.
Person/Support Cultures
Organizations with a person/support culture have minimal structure and
serve to nurture personal growth and development. They are egalitarian in
principle, and decision making is conducted on a shared collective basis.
This type of culture is rarely found in profit-making corporations; it is more
typical of professional partnerships such as law firms.
The corporate culture significantly affects the performance of the
company and is especially beneficial in the employees activity,
commitment, initiative and also increases efficiency and quality. The
benefits of the strong corporate culture on companys performance are
expressed by:
- Perception and thinking of workers is in harmony; low rate of
unnecessary conflicts in communication,
- Human behavior is automatically regulated; there is smaller need to
coordinate all practices in the organization,
- Enables quick decision making; consensus is easier to find,
- People in the organization shares common goals and values; actions
lead to their fulfilment,
- Increased motivation of individuals and groups; increased
engagement, reduced the need for monitoring the workers
performance.
The willingness to understand, to cooperate and to create a common and
better whole is considered to be as important as the availability of
material resources.
The corporate culture is primarily determined by daily behaviour of
management. People focus on what management do rather than on what
they say. The corporate culture is deeply embedded within the
organizational system. It cannot be taken out and dealt with in isolation.

Management of transforming companies usually focuses on economic

indicators and do not pay enough attention on the corporate cultures
integration. It is clear that the corporate culture should be regarded as
one of the pillars of success. Threatening results of underestimating the
impact of the corporate culture on M&A makes us wonder: How is it
possible that management underestimated the corporate culture as the
determinant of M&A? There can be numerous reasons.
- Lack of awareness of the existence of differences - managers do not
understand that the corporate culture exists,
-

Lack of understanding - although managers know that the corporate

culture exists, they do not understand the issue, or they do not want
to deal with it or are underestimating its threat

Lack of readiness - a conscious decision not to deal with culture for

such as the reasons as unattractiveness, fright of the unknown, or
feeling that there is no real reason to care,

Lack of competence - management wants to do it appropriate, but

do not know how.

HR department should be involved in the planning of integration process

from the very beginning and not only after the implementation.
M&A transactions place high demands on HR management, who bears
significant responsibility on the final results. According to the Nov and
Schroll-Machl18 management should be focused on ensuring following
factors:
-

Provide HR factors and company culture depth analysis,

Establish a clear integration strategy,

Create conditions
stakeholders,

for

active

communication

between

all

- Ensure management concentration on the integration phase.

It is necessary to thoroughly analyze the initial state of integrating
companies before human resources integration planning and the
corporate culture. Analysis of the corporate culture aim to precise
identification of the individual factors of the corporate culture, assessing
their compatibility and proposing targeted solutions and steps leading to
it.

Organisational Culture Model

Schein (1985) defines the corporate culture by dividing it into three levels.
His model may help to understand cultures and highlight the possible
differences.
- The first level: Artefacts and Creations: The process of cultural
assessment starts when employees see the perceived differences in their

cultures. This involves the employees observation of the differences on

the visible artefact and tangible behavior. They see the differences in
structure, offices, furnishing and how the persons apparently interact with
each other and with the external members. This level includes the
facilities, offices, furniture, visible rewards and the dress code. Those
elements of the culture are easily discerned but hard to understand.
- The second level: Espoused values: This level includes the companys
slogans, mission, vision and, internal and personal values that are
extensively expressed within the organization. This is considered partly
visible as these values could be seen. The other part that may not be seen
is described as the values that are acceptable in one organization and not
in another. The main difference in value is how managers proceed with the
decision-making. One organization might have a traditional and
conservative business approach while the other might have quick decision
makers and like to take risks.
- The third level: Basic Assumptions: these assumptions are the
organization's tacit assumptions and values. These are the elements of
culture that are invisible and not cognitively identified between the
organizational members. Additionally, these are the elements of culture
that are usually taboo to discuss. Many of these unspoken rules exist
without the awareness of the membership. They are built in every day
interaction in one organization but remain unknown in another. Those
unconscious rules are the common roots of culture clash.

MERGERS & ACQUISITIONS

The transactions of great significance, not only to the companies

themselves but also to many other constituencies, such as workers,
managers, competitors, communities and the economy, whereby two
companies are combined to achieve certain strategic and business
objectives. This general definition of M&A gives a significant overview
about where these activities have real impacts.
A merger is a combination of two corporations in which only one
corporation survives and the merged corporation goes out of existence. In
a merger the acquiring company assumes the assets and liabilities of the
merged company. In this definition, the merger is referred as an
acquisition, both terms here are ambiguous. Nevertheless, this description
of merger is sometimes related to the term statutory merger which differs
from the subsidiary merger. This kind of business transaction combines
two companies in which the target company turns into a subsidiary of the
parent company.
Mergers often require the approval of both the acquiring and target firms
shareholders and the acquiring firm.
An acquisition is a business combination in which one of the enterprises
involved, the acquirer, obtains control over the net assets and operations

of another enterprise, the acquiree, in exchange for transfer of assets,

incurrence of a liability or issue of equity.
A uniting of interests is a combination in which the shareholders of two
enterprises control over the net assets and operations of those enterprises
and continue to share in the risks and benefits attaching to the combined
entity.
Put differently, the acquisition is the action whereby the acquiring
company purchases the interests of the acquired companys shareholders
and ceases to have any interest right after the acquisition. While in the
merger context, both companies pool their interests which means that
the shareholders of both companies have still in their portfolio interests
from their company but also get interests in the other enterprise.

Types of Mergers & Acquisitions

Vertical Mergers & Acquisitions
In a vertical merger a firm purchases one of its suppliers (a backward
merger) or merges with one of its customers (a forward merger). Because
an acquired firm generally falls under the acquiring firms corporate
umbrella, most of the interaction between the two firms is at the
corporate level. The level of complexity at the corporate level increases,
as do the rules governing the acquired corporation, which faces a
reduction in self-determination. This leads to the demotion of subsidiary
executives to middle management, which often leads, in turn, to a higher
level of executive turnover, especially if the executives of the acquired
firm are treated as if they have been conquered, causing them to feel
inferior and experience a loss of social standing.
Horizontal Mergers & Acquisitions
In horizontal mergers one corporation acquires another corporation whose
product or service is closely related or of the same type. An example
would be the takeover of one printing firm by another. From a human
resources perspective, these are the most difficult mergers to implement,
since the acquiring firm already has expertise in the business operations
and will act to consolidate the two firms to avoid redundancy and become
more cost-effective. Downsizing and voluntary quits usually precede or
immediately follow the merger.
The intense interactions between the employees of both corporations may
result in conflict and the compatibility of styles and values between
management and staff becomes central in personnel decisions. Hence, it
is of utmost importance that the acquiring firm communicate clearly the
reasons for the procedures, to allow the acquired firms employees to
prepare for and respond to any proposed changes. If the organizational
cultures of the two companies are significantly different, productivity gains
may not be realized for several years, and in the worst case, the merger
may fail.
Concentric Mergers & Acquisitions

Concentric mergers occur between two firms with highly similar

production or distributional technologies. A merger between a motorcycle
manufacturer and an automobile manufacturer would be an example.
Both kinds of corporations service transportation needs, but they are
unique structurally. In concentric mergers, there is a tendency to combine
some operations, especially departments focused on technology and
marketing. This will result in the sharing of expertise between the two
firms, which may be resisted by the employees of both firms. The best
way to overcome this resistance is by obtaining the consent of the
acquired firms human resources management before the merger.
Conglomerate Mergers & Acquisitions
A conglomerate merger involves the acquisition of an unrelated business.
The acquired firm is usually one of many under the corporate umbrella of
the acquiring firm and is perceived as providing profitable diversification.
Since the two firms are unrelated in product or service, internal changes
to the acquired firm, which will remain relatively autonomous, are likely to
be minimal, and there will be few cultural consequences. Occasionally the
acquiring firm will send a new team from headquarters to manage the
unit, which will cause conflict among the senior executives of the acquired
firm and may result in a higher quit rate among its employees and
feelings of insecurity and instability.
Despite these, conglomerate takeovers tend to be the most benign of all
the sources of cultural change.

Cultural Compatibility
The success of a merger or acquisition depends, in part, on the cultural
compatibility of the two organizations. When an organization acquires or
merges with another, the contract may take one of three possible forms
depending on the nature of the two cultures, the motive for and the
objective and power dynamics of the combination.
The Open Marriage
In an open marriage, the acquiring firm accepts the acquired firms
differences in per-sonality, or organizational culture, unequivocally. The
acquiring firm allows the acquired firm to operate as an autonomous
business unit but usually intervenes to maintain financial control by
integrating reporting systems and procedures. The strategy used by the
acquirer in this type of acquisition is non-interference.
Traditional or Redesign Marriages
In traditional or redesign marriages, the acquirer sees its role as being to
dominate and redesign the acquired organization. These types of
acquisitions implement wide-scale and radical changes in the acquired
company. Their success depends on the acquiring firms ability to displace
and replace the acquired firms culture. In essence, this is a win/lose
situation.

The Modern or Collaborative Marriages

Successful modern, or collaborative, mergers and acquisitions rely on an
integration of operations in which the equality of both organizations is
recognized. The essence of the collaborative marriage is shared learning.
In contrast to traditional marriages, which centre around destroying and
displacing one culture in favour of another, collaborative marriages seek
to positively build on and integrate the two to create a best of both
worlds culture. In collaborative marriages the two organizations are in a
win-win situation.

Acculturation
Regardless of the cultural fit, all mergers and acquisitions will involve
some conflict and turbulence during a necessary process of acculturation.
The Conflict Stage
While the two firms try to overcome their difficulties, each firm, depending
on the merger type, the amount of contact each has with the other, and
its cultural strength, will compete for resources and try to protect its turf
and cultural norms.
The Adaptation Stage
Conflict between the two organizations will eventually be resolved either
positively or negatively. In a positive adaptation, agreement will be
reached concerning operational and cultural elements [that] will be
preserved and [those] which will be changed. In a negative adaptation,
the conflict will be manifested as employee dissatisfaction and high
turnover rates, which could result in operational under-performance.

Four Modes of Acculturation

Assimilation
Assimilation is the most common method of acculturation and results in
one firm, usually the acquired firm, relinquishing its culture willingly and
taking on that of the acquiring firm. Thus, the acquiring firm undergoes no
cultural loss or change. Generally, the acquired organization has had a
weak, dysfunctional, or undesired culture. Therefore, the new culture
usually dominates and there is little conflict.
Integration
If the cultures are integrated, the acquired firm can maintain many of its
cultural characteristics. Ideally, the merged firm retains the best cultural
elements from both firms. During integration, conflict is heightened
initially, as two cultures compete and negotiate but it is reduced
substantially upon agreement by both parties.
Separation
If the acquired firm has a strong corporate culture and wishes to function
as a separate entity under the umbrella of the acquiring firm, it may

refuse to adopt the culture of the acquiring firm. Substantial conflict may
be engendered and implementation will be difficult.
Deculturation
Deculturation is the least desirable possibility. It occurs when the culture
of the acquired firm is weak, but it is unwilling to adopt the culture of the
acquiring firm. A high level of conflict, confusion, and alienation is the
result.
Mergers and Acquisitions can be threatening for employees and
produce anxiety and stress. Hunsaker and Coombs found identifiable
patterns of emotional reactions experienced by employees during a
merger or acquisition; they have labelled this phenomenon the mergeremotions syndrome.

The Merger-Emotions Syndrome

-

Denial. At first employees react to the announced merger with

denial. They say it must be just a rumour.
Fear. When the merger becomes a reality, employees become
fearful of the unknown. For example, workers become preoccupied
with job loss.
Anger. Once employees feel that they are unable to prevent the
merger or acquisition from taking place, they begin to express anger
towards those who are responsible. In many instances, employees
feel like they have been sold out after providing the company with
loyal service.
Sadness. Employees begin to grieve the loss of corporate identity
and reminisce about the good old days before the merger.
Acceptance. Once a sufficient mourning period has elapsed,
employees begin to recognize that to fight the situation would be
useless, and they begin to become hopeful about their new
situation.
Relief. Employees begin to realize that the situation is not as
inauspicious as they had envisioned and that the new employees
they interact with are not as bad as they had predicted.
Interest. Once people become secure with their new positions or
with the organization, they begin to look for positive factors and for
the benefits they can achieve through the new entity. They begin to
perceive the new situation as a challenge in which they can prove to
their organization their abilities and worth.
Liking. Employees discover new opportunities that they had not
envisioned before and begin to like their new situations.
Enjoyment. Employees discover that the new situation is working
out well and feel more secure and comfortable.

The merger-emotions syndrome provides management and researchers

with the opportunity of pinpointing the emotional stage of the employees
of an acquired corporation. Management should recognize that these
emotions exist among the employees and deal with them as expeditiously
as possible. At a minimum, managers should provide positive feedback to

employees, emphasizing that their performance is commendable under

the stressful situation brought about by the acquisition, in order to
alleviate negative work-related feelings.

Impact of Corporate Culture on Mergers & Acquisitions

According to Gene Gitelson, John W. Bing, Ed.D. And Lionel Laroche, 83 %
of all mergers and acquisitions failed to produce positive outcomes and
half of them destroyed the value. Moreover that, according to the
interviews of over 100 senior executives involved in these 700 deals over
a two-year period revealed that the overwhelming cause for failure "is the
people and the cultural differences". Therefore, they present the seven
pitfalls that represent the critical areas of the M&A transaction that drive
the deal to the success if the leader applies this agenda the first 90
days of the new organization.
Pitfall 1: Preoccupation => Strategy: Acceleration: leaders are
advised to speed the integration to reduce the uncertainty and anxiety. In
the case of international M&A's, he or she has to ensure that both
individual and collective concerns are addressed. Indeed, studies indicate
that employees and managers at all levels lose a minimum of 15% of
personal effectiveness as a result of rumours, misinformation, and worry.
They also indicate that teams tend to become less effective during
mergers and acquisitions.
Pitfall 2: List-making => Strategy: Concentration: during the first 90
days, the leader has to focus and get everyone to focus on the 20% of
the goals that yield 80% of the economic value.
Pitfall 3: Organizational proliferation => Strategy: Accelerate,
concentrate and adapt: the leader must create quick-acting teams that
include people from both side of the merged companies and set clear
mission. Clear and strong leadership are essential not to break down the
new organization in sub-teams.
Pitfall 4: Infrequent and irrelevant communication => Strategy:
Accelerate, concentrate and adapt: over communication is the key
success to get the message received by the employees. As for example, a
frequent communication repeated at least 7 times through multiple
avenues - print, voice mail, e-mail, meetings, and video.
Pitfall 5: Triangulation (confusion in old and new goals and
objectives) => Strategy: Concentrate and adapt: the leader must
help people to adapt to the new goals and objectives by dispatching
information which depend on peoples cultural background.
Pitfall 6: The relatives => Strategy: to adapt: time is relative, the
leaders started their adaptation to the new reality before those who got to
know about the merger on the announcement day. They wonder about
why people don't seem to "get it" and for resist to the new realities. Plus,

the concept of time is also related to culture. While long-term in North

America tends to mean three years, it means up to 30 years in Japan. So,
the leaders have to actively handle the merger across time, space and
organizations, keeping in mind the different concepts of time and space
perceived by the different people involved in the merger.
Pitfall 7: The guiding light: Strategy => Adapt: the first role of the
leader is to implement a clear vision. However, a good leader requires
different skills and attributes like charisma and positive attitude. Only a
new culture can create the context for real change to happen. Changing
culture means changing behavior. But one of the quickest way to effect
change and create the new company is to place in all key positions those
individuals who are true representatives of the new culture and who can
lead effectively people on both side of the company's cultural divide.

RECOMMENDATIONS
Following are seven of the most important concepts that suggest the
implications for an effective M&A in corporate integration:
- Metallurgy: Metallurgy describes the structures and properties of
metal, the way it is extracted from the ground and is refined, and the
various means of creating things from it. When describing organizations,
the term refers to a system of processes and procedures that occurs in all
organizations and that creates specific cultural traits around the ways
people approach their work on a day-to-day basis. So, managers involved
in mergers or acquisitions might not want to rush to replace these
practices.
- Mythology: Mythology is the group of stories, ideas, or beliefs that
become a part of an organization. During the process of mergers and
acquisitions (M&A) integration, managers should identify organizational
myths which are represented by the stories, ideas, or beliefs that become
a part of an organization. Plus, these stories are not necessarily based on
facts; they usually reflect historical accounts of greatness or tragedy
- Missiology: Missiology is the process of persuading others to accept or
join a belief, cause, or movement. Most organizations have a tacit
process through which they will integrate the new employees or not,
depending on the unspoken practices of the organization. Managers who
integrate the new talent into the new merged organization have a
significant advantage because they will be involved in the value creation.
- Meritocracy: A meritocratic system gives opportunities and
advantages to people on the basis of their contributions and abilities
rather than on the basis of their job longevity, connections, status, or
other such attributes. For an effective M&A integration, it includes to
address the ways in which individuals contributions are recognized and
valued. Managers should take into consideration the traditions and
systems for advancement and reward which are present in both

organizations before the merger. These differences could have an impact

on the employees, they can resist to the new organization or accept to put
efforts within it.
- Modality: Modality is a treatment or strategy applied to a specific
disorder or circumstance that needs improvement. Within an
organization, people can develop some real treatments that represent an
impressive medicine chest to overcome the dysfunctional behaviours or
problems that can occur within the organization. Those specific remedies
have to be identified and evaluated by the managers in order to bring
value to the acquisition and integrate them into the new organization.
- Mores: Mores are customs and habitual practices, especially as they
reflect moral and ethical standards that a particular group of people
accept and follow. The implications for effective M&A integration include
paying attention to the ways ethics is practiced in the organization:
Managers should identify the mores of each organization and the ways in
which they can be effectively shared across organizations. Furthermore,
they should formulate strategies to equalize mores between organizations
by advancing a best of approach to mores and ethics development in
the new organization.
- Mettle: Mettle - the courage, spirit, or strength of character of a group
within an organization or the particular mental and emotional character
unique to an individual. The extent to which individuals pay attention to
their own spiritual development or are encouraged by the organization to
develop mettle can result in an important cultural value. Effective M&A
integration suggests that managers should look closely at ways that
individuals show their mettle by sharing concerns and practicing respect
for others within the organization. Enhancing and supporting these
behaviours is critical for the organization success.

CONCLUSION
Few would argue that corporate culture does not matter for merger
success. But even widely accepted truths are sometimes shockingly
lacking in substantial theoretical foundation and persuasive empirical
support. Such is the case with the role of corporate culture. The
overarching conclusion is that there are numerous ways to characterize
and measure culture, but a common thread running through all of these
seemingly disparate ways is that corporate culture can significantly
influence individual and group behavior, and thus affect postmerger
performance.
The impact of culture on merger performance may be quite longlasting.
To the extent that the underperformance of acquiring firms is driven by
cultural misalignment between the acquirer and the target, the
diversification discount could very well, at least in part, be a cultural
mismatch discount.

A proactive strategy for dealing with corporate culture and human

resource issues is fundamental to the success of mergers and acquisitions.
However, these issues are rarely considered until serious difficulties arise.
Management often fails to acknowledge that culture and human resource
issues can actually cause a merger to fail. Acquisition managers must
recognize that the role of people in deter-mining merger and acquisition
outcomes is in reality not a soft but a hard issue. Without the commitment
of those who produce the goods and services, make decisions and
conceive strategies, mergers and acquisitions will fail to achieve their
synergizing potential as a wealth-creating strategy
Careful proactive planning by the acquiring organization to reduce the
emotional fallout can ease the transition and reduce the risk of failure for
an otherwise advantageous merger.