Acculturation

AcculturationPresented by Sandy Rogan and JoAnn Pavone

1Acculturation describes the process of contract, conflict and adaptation as a result of combining culturesAcculturation

Select 10 volunteers from the group3What core competencies are needed to achieve acculturation?RespectListening/ UnderstandingCompromise/ToleranceCommunication Education Roundtable discussionsGroup meetingsOn-on-one meetingsIntranet updatesWritten communication What are the best methods to use to communicate change?

Ask questionsSolicit opinionsForm employee committeesTransparency from managementDevelop an avenue for employee feedback

How do you best create a culture with open communication?

FearAnger Resistance to changeConfusion/ UncertaintyUneducated What are the most challenging people issues in M&As?

CompromiseNegotiationListening/ UnderstandingFlexibility/ AccommodationsEducation/ Teaching

How is conflict best managed in acculturation?

The Four Modes of Acculturation (Nahavandi & Malekzadeh, 1988)DECULTURATIONASSIMILATION SEPARATION INTEGRATIONTriggered when members of the acquired firm want to preserve their own culture and identity and remain autonomous and independentDoes not involve loss of cultural identity to either companyAcquired companys employees try to maintain many of the beliefs, cultural elements and systems that make them unique, and are willing to be integrated into the acquirers structure

Integration

One group willingly adopts the identity and culture of the otherAcquired employees relinquish their culture and practices and adopt the culture of the acquirerFollowing the merger- structural, cultural and behavioral assimilation will occurASSIMILATION

STRUCTURALCULTURALBEHAVIORALAttempting to preserve ones culture and practices by remaining separate and independent from the dominant group

Acquired employees refuse to become assimilated in any way or at any level with the acquirer and try to remain separate

There is minimal cultural exchange between two groups and each function independentlyseparation

13DECULTURATIONInvolves losing cultural and psychological contact for the acquiring company and the acquired company

Occurs when members of the acquired company do not value their own culture and organizational practices and systems

They do not want to be assimilated into the acquiring company; there are feelings of alienation, confusion and loss of identity

INTEGRATION SEPARATIONASSIMILATIONDECULTURATIONUNICULTURALMULTICULTURALRELATEDUNRELATEDDegree of Multiculturalism Degree of Relatedness of FirmsPerception of the attractiveness of the acquirerHow much do members of the acquired firm value preservation of their own culture?INTEGRATION SEPARATIONASSIMILATIONDECULTURATIONNOT AT ALLVERY MUCHVERY ATTRACTIVENOT AT ALL ATTRACTIVEPOINTS TO REMEMBER!

Bupa Australia successfully acquired the Medical Benefits Fund Group in 2008Create a vibrant, new organization- not simply merge existing companies

Engage staff in the journey of creating the new organization

Provide certainty quickly about positions and the direction and operation of the new organizationPOINTS TO REMEMBER! 3 out of 4 M&As fail to achieve the anticipated strategic and financial objectives

The failure of M&As can often be attributed to various HR- related factors:- Culture and management differences- Poor motivation - Loss of talent and uncertain long- term goals

POINTS TO REMEMBER! Layoffs often occur as a result of a merger. The manner in which separations are managed will be watched closely by remaining employees.

Have a professional exit strategy in place and provide exiting employees with respect and dignity

Offering outplacement services will be noticed and appreciated

POINTS TO REMEMBER! A transparent change process and communication between employees should be a priority in the merger process so that individuals feel included in the processPOINTS TO REMEMBER! The most critical components of acculturation are communication and trust. Even when delivering bad news, employees of newly acquired companies appreciate the truth

THANK YOU!We hope you enjoyed the presentationCanon and Gigue in D Major for 3 violins and continuoChamber Music Society of Lincoln CenterMusic from the Isabella Stewart Gardner Museum, Boston, track 2/4Classical392833.78eng - Recorded live in the Tapestry Room of the Isabella Stewart Gardner Museum, Boston. ISGM is pleased to share this concert under a Creative Commons Music Sharing License. For details see www.gardnermuseum.org.eng - iTunPGAP0eng - iTunNORM 0000031B 000002C2 00003AB5 00003E41 0005AE49 0005AAD0 0000659B 000073A6 0004F358 0005A963eng - iTunSMPB 00000000 00000210 000009FC 0000000001084674 00000000 005FD925 00000000 00000000 00000000 00000000 00000000 00000000eng - iTunes_CDDB_129096704+180726+4+150+32184+61639+107671eng - iTunes_CDDB_TrackNumber2