Specific challenges leaders face in post-merger environment

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Reference no: EM133781920

You are working as a HR consultant in Thameslink PLC, for past 3 years. Unfortunately, the recent pandemic has drastically impacted the company, resulting in low sales, low employee morale, low performance, low revenue, high employee turnover, as a result the company is now on the point of going out of business. As a last resort, Thameslink PLC directors have decided to merge with another firm, 'The Guardians PLC', Therefore, the two organisations merged to form 'The Thamesguardian PLC,' which now operates under a single common ownership and management structure. However, the problem persisted after the merger, as new arrangements were not generating the intended results. The effects of merger strategies are not only reflected in organisational performance, but also among the employees of the merged organisation. For example, confusion, incompatible cultures, management styles, clash of ideologies, low motivation, loss of key talent, lack of communication, diminished trust, and lack of surety are commonly observed in employees in the post-merger situation as they become unsure of their future in the new organisation. Also, the intended aims of the merger have not been achieved as evidenced by the poor organisational performance. McKinsey have put it, 'Anyone who has researched merger success rates knows that roughly 70% fail' (Meeks, 2022). As the companies embark on the merger journey, they face challenges in aligning their leadership styles, managing the cultural transition, and ensuring that employees from both organisations are committed to the new vision. The challenges posed by the merger of Thames[1]Guardian PLC. are reflective of the intricate dynamics involved in combining two distinct organisational entities. The successful resolution of these challenges will play a pivotal role in determining the overall success and effectiveness of the merged entity in the competitive landscape. The merger not only requires a seamless integration of technology and operations but also a strategic approach to navigating the human side of change. Therefore, organisational restructuring is now required not only to succeed and increase performance, but also to gain employee commitment and trust Within your role as the HR Consultant for the organisation, you will be leading the restructuring and the change programme for 'Thamesguardian'; which will include the planning, implementation and evaluation stages. As a result, you will need an understanding of how to engage people for that change to be effective, choose the right approach that supports a change culture; how to continuously innovate to deliver and embed the change longer-term. Therefore, as a people professional, your role is to find ingenious solutions for the given organisation to cope with the pre- and post-merger changing trends which may determine the growth and survival of the organisation

1. Identify and critically analyse the specific challenges leaders face in the post-merger environment.

2. Critically evaluate the role of leadership in change management as a critical driver of the given organisation's ability to adapt, innovate, and thrive in post-merger landscape.

Here we have to speak about:

Critical drivers refer to a model for others; involvement supportive/ lead by exemple or by threat.

Learning and development;

Thrive in post-merger landscape; innovate/ lateral thinking, culture- leadership style, adaptivity creativity accept others idea- involvement- communication- feedback- individual and others;

3. Apply a tailored leadership and change management model/theory in seeking employee commitment and support, post-merger.

Tailored leadership style applies 3 models. Refer to CIPD.

Reference no: EM133781920

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