Merging of two Companies

In the scenario of two companies merging there are always major issues to address. Employees of both sides will surely sense fear regarding uncertainties about their future in the merged company. If the two companies belong to different region or country then there is always fear or anxiety of adopting a different culture, language and working practices. Merge usually result in some employees from both sides losing their jobs or adjusting to a new pay scale.

With this in mind the managers of the merge process need to make clear to everyone what are the objectives of the merge and how the merge process will be implemented. This should be done firstly with some preparatory meetings with each side of the merge and also later with a joint conference with everyone impacted by this process. One of the options is to create a negotiating committee on both sides so that they can hold regular meetings either face-2-face or by video conferencing. These committees can then go back and update the rest of the employees in the respective companies.

A desired effect of the merge is that both companies should capitalize from the synergies resulting from the standardization of the processes, or how the both sides monitor and control the activities. This should then be the first step of the merge process to ensure a smooth transition to a one single company which will eventually lead to an increase of profit, efficient work procedures and a better working environment.

The next important action is to synchronize the technologies used by both the companies so that all the employees can work on a common platform and can exchange their ideas and experiences. This common platform provides a way to communicate more effectively which not only improves the social, but also the professional work environment.

Communication is the key factor, or the most effective tool, to ensure that each step of the merging process is goes through smoothly and effectively.