In the current business environment business mergers have emerged as one of the strategies of improving business efficiency. Business mergers involve combining two businesses into one. Business mergers are complicated affairs because there are a numbers of challenges that managers involved in the process have to circumvent. Because mergers involve the fusion of two different management systems, the effects of mergers are felt in service delivery, staff management, and motivation, business information management as well as harmonizing management structures. In the health service sector studies reveal that organization involved in mergers are negatively affected by the mergers especially due to the fact that larger merging partners have tendencies to dominate smaller partners. This generates a series of complications in the process. Therefore it becomes the responsibility of the management to lead the business successfully through the process.
It is the responsibility of the management to steer their organization through mergers. Such managers are faced by a series of post merger assimilation challenges. One of the frequently occurring post mergers management challenges is the misconception that a successful merger should take the shortest time possible. This misconception may lead to failure of the process as mergers involves the harmonization of two complicated business strategies especially in areas dealing with accounts, business models and service delivery. Thus Mr. Smith may be disillusioned by the slower speed of the integration process. The manager is also likely to face resistance from employees. Mergers are characterized by many changes in the business process including services management codes of conduct, reduction of salaries and layoffs. Thus changes bring in new and unfamiliar business practices. Therefore the threats of loosing a job, demotion or reduced wages are likely to drive employees towards resisting the merger (Gerds and Schewe, 2009). Mr. Smith will also come face to face with competing organizational cultures. Difference emanating from the diversity of organizational cultures does pose changes especially regarding areas that deal with innovation, communication models and risk management (Fulop, Protopsaltis, Hutchings, King, Allen, Normand and Walters, 2002).
To overcome these challenges there are a number of management options available fro Mr. Smith to employ. There is need to form a powerful coalition comprising the two institutions and as such Mr. Smith can appoint a powerful transitions committee comprising personnel from the two institutions. The personnel must be from various departments for equal representation. Such a move will realize a shared vision and smoothen the way for the impeding transition (Waters, 2003). Another management option will be to analysis and assessment of the competing organization cultures at the planning stage of the integration. At this face it will be valuable investment to engage an origination culture consultant who will investigate all aspect of the cultures of the two organizations. The investigation will target identifying any aspect that may hinder the process of integration. Furthermore the consultant will assess the underling attitudes of the medical staff regarding the merger. If any negativity is identified, counter measures will be developed. Mr. Smith will need to manage staff anxiety created by such business ventures. To do this there will be need to involve educating the staff on the implications of the impending integration. Such a program will also address the needs of the employees in light of the new developments (Waters, 2003; MacLaren, 2002).
The merger between the two hospitals means that the managers will have to make a number of adjustments top fit into the reorganized business environment. The CEO from Springville General Hospital will have to be ready to consult before any decision is arrived at. Because a lot of decision making will involve consultations, Springville General Hospital CEO will have to learn to compromise in arriving at management decision. This will be aimed at avoiding dragging the integration process. This means that the CEO will have to b ready to blend disparate management activities so as to transform the merger into realizable goals. Springville General Hospital CEO may have been used to a certain information management systems. In the new situation the te CEIO will have to adjust to accommodate new information management, ethods. For example of Springville General Hospital used the email as the main communication mode, the merger may require a lot of face to face conversation as well as meetings (Li-Ping, and Timmer, 2008). Adjusting to new management practices is vital for effective post merger transition.
From a layman’s pint of views merging two businesses is an attractive proposition. However business managers understand that business mergers are complicated affairs riddled with a number of management challenges. The time that is needed to undertake the process is usually creates confusion with manager expecting success sooner rather than later. The hospital staff may also present a management challenge as they may resist the new culture emanating from the merger. However, the business world has seen successful mergers. With strong focused leadership the two hospitals can navigate the complicated process with ease.
Reference List
Fulop, N., et. al. (2002). Process and impact of mergers in NHS trusts: Multicentre case study and management cost analysis. British Medical Journal. Web.
Gerds. J., & Schewe G. (2009). Post merger integration. Berlin: Springer Verlag
Li-Ping Tang, T. & Timmer, L. S. (2008). All in the name of change: Effects of organizational change on performance measures of customer service in the health care industry. International Journal of Organizational Theory and Behavior, 11(2), 220-239.
MacLaren, E. (2002). One for all: Combining management across hospitals. Nursing Management, 33 (7); pg. 32.
Waters, V. L. (2003). Overcome hidden expenses, migrating staff. Nursing Management, 34(5), 20-24.