Cultural Challenges During the Merger Process
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Cultural Challenges During the Merger Process
Step 1: Define the Problem
AT&T was known for being the largest internet and cable provider, and Time Warner was known for being one of the largest entertainment companies. Together with the AT&T merger, it created Warner Media was over $85 billion. (Kinicki and Fugate, 2020). The Warner Media Group made leadership changes and selected John Stankey as their CEO. Mr. Stankey has been with AT&T since the early ’90s and is considered AT&T’s subject matter in the business.
The new merger kept the same employees and only changed leadership. At WarnerMedia, there are also expected to be some layoffs primarily because they morph the companies together (Bond, P., 2019). In addition, the recent leadership changes do not include Time Warner subject matter experts. Having to merge the two companies’ employees, the difference in the organizational culture will have to be considered. The problems that AT&T will encounter are organizational cultural differences and uneven expert knowledge in leadership.
Step2: Identify causes
Merging the two companies that provide unique services can be challenging, making the organizational culture difficult for employees. In addition, the employees will have to learn new skills sets to continue and keep up with technological changes that the company will have to maintain to keep up with their competitors. The employees are also faced with downsizing, which can cause “legacy media workers fear for their livelihoods” (Bond, P., 2019).
With the mega-company merger, leadership will be tested. The new CEO, Mr. Stankey, has been known for being strict, inflexible, and forced on the “bottom -line,” which can undermine the success of the manager-to-employee relationships, according to Farrell (2019). In addition, with Stankey being the CEO, the original power structure from Time Warner will be gone, and it will be a “tough time because they [AT&T] don’t understand that business” (Farrell, M., 2019). There will also be many challenges that leadership will have to overcome to “reduce conflict, foster collaboration, and integrate cultures” (Kinicki and Fugate, 2020).
Step 3: Make your recommendations for solving the problem.
The organizational cultural challenges during the merger process can cause employees to be resistant, dissatisfied with changes, or even quit (Kinicki and Fugate, 2020). Therefore, one recommendation is a cultural or climate survey. In addition, the organization can use the organizational culture assessment surveys used in various work settings to identify cultural deficiencies (Davis and Cates, 2018). The data from these surveys give new leadership a plan to address the cultural issues and can change as an outcome of the challenges that affect the organization’s culture.
Another recommendation is for the new leadership to look at its training process and prepare their new managers and employees to succeed in the new Warner Media Company. The training will focus on aligning the mission, vision, and goals of the organization. In Ephesians 4:11-16, we learn that Christ has gifted prophets, evangelists, pastors, and teachers to be equipped to work in God’s ministry to lead and train individuals into and about the doctrine. This improvement will continue until the church has reached unity, and by reaching maturity and unity, the church will no longer astray from the doctrine, and we will exhibit the character and qualities of Christ.
Bond, P. (2019). WarnerMedia’s big question: How many jobs will be lost? hundreds of pink slips are coming for ‘duplicative administrative functions’ in AT&T’s entertainment empire, but CEO john stankey and TV chief bob greenblatt risk eroding ‘distinctive’ individual brands like HBO and turner in the process. The Hollywood Reporter, 425(10), 21. https://link.gale.com/apps/doc/A580721751/BIC?u=vic_liberty&sid=summon&xid=864cd4fd
Davis, R., & Cates, S. (2018). The implementation of the organizational culture assessment instrument in creating a successful organizational cultural change. International Journal of Business and Public Administration, 15(1), 71.
Farrell, M. (2019). AT&T’S change agent: WarnerMedia group CEO john stankey has a major task ahead: Transform the tel co’s content business for the digital age. Multichannel News, 40(9), 6.
Kinicki, A., & Fugate, M. (2020). Organizational behavior: A practical, problem-solving approach plus Connect. McGraw-Hill.
Holy Bible, New King James Bible VersionWoman’s Study Bible. (2017). Thomas Nelson. (Original work published 1995).
Technology advances have created companies that have the capability to stream such as Netflix, Hulu, and Apple to name a few. With new companies on the market gaining success, the older cable companies are getting pushed out. AT&T has learned to adapt and overcome these difficulties by being one step ahead. Recently the company has merged with Time Warner, another large company that includes HBO, TNT, TBS, CNN, and other assets. For the merge to be successful AT&T’s leadership must figure out a system to put in place that will makes sense for both companies and ways to effectively communicate to their employees (Lee, 2019).
AT&T is attempting to overcome multiple problems, with the advancement in technology streaming services having the upper hand. However, the largest problem the company has is how to make the merge between themselves and Time Warner effective. The challenge will be minimizing conflict and fostering collaboration and cohesiveness among employees (nearly 270,000 in the combined company), processes (decision making, HR, technology, and communication), and products (streaming, content, mobile, and cable) which is a large leadership challenge (Lee, 2019). Because both companies are so large and have so many employees, leadership has not set systems and procedures in place to help employees with the transition. Because of these changes and lack of understanding employees are starting to resist the change. Leadership will need to understand why employees are resisting this change and help overcome it (Kinicki, 2020).
The executive Mr. Stankey’s leadership style has been put in question, which has led to unsatisfied employees, and friction between the two companies. The company has already seen departures of two long time employees, Richard Plepler who worked at HBO for more than two decades and David Levy the president of Turner Broadcasting. No matter where you work in a company you are part of a team, and the company itself represents a team effort to reach a goal. Each department or division represents a team too, so do the smaller groups of people working together in those departments. In each case a team’s success is directly linked to the efforts of individual players and how well those players get along and work with each other (Kroeger, 2009). Mr. Stankey as well as other leadership in the company have not been transparent with communicating where they are taking the company in terms of growth and expansion. needs to shift perspective and start focusing on the employees and how to set them up for success. To create a working environment that allows members to thrive and be part of the team.
For the merge to be successful Leadership in the company will need to set up feedback sessions with employees and supervisors to better understand their frustrations. Leadership will also need to shift to a more “human-side” approach and involve HR practices to help ease the transition (Riikka, 2019). Building a new set of policies and standards based off both companies’ old ones. Leadership will need to be more transparent with how they are approaching new ideas and allow employees to grow and provide them with more opportunities for that growth. One verse that encompasses the idea to work together is Hebrews 10:24-25 And let us consider how we may spur one another on toward love and good deeds, not giving up meeting together, as some are in the habit of doing, but encouraging one another-and all the more as you see the Day approaching (English Standard Version, 2001).
Kinicki, A. (2020). Organizational Behavior: A Practical, Problem-Solving Approach (3rd ed.) McGraw-Hill Education
Kroeger, O., Thuesen, J., Rutledge, H. (2009). Type Talk at Work, How the 16 Personality Types Determine Your Success on the Job. Random House Publishing
Lee, E., Koblin, J. (2019). “AT&T Assembles a Media Team, Joining a Battle with Giants,” The New York Times. www.http://www.nytimes.com/2019/04/business/media/att-warner-greenblatt.html
Riikka, S., Vaara, E., Junni, P. (2019). Beyond merger syndrome and cultural differences: New avenues for research on the “human-side” of global mergers and acquisitions (M&As). Journal of World Business, Volume 54, Issue 4, Pages 307-321
English Standard Version (2001). Hebrews 10:24-25 https://greatresultsteambuilding.net/five-great-teamwork-verses-bible/ (Links to an external site.)
Tired of getting an average grade in all your school assignments, projects, essays, and homework? Try us today for all your academic schoolwork needs. We are among the most trusted and recognized professional writing services in the market.
We provide unique, original and plagiarism-free high quality academic, homework, assignments and essay submissions for all our clients. At our company, we capitalize on producing A+ Grades for all our clients and also ensure that you have smooth academic progress in all your school term and semesters.
High-quality academic submissions, A 100% plagiarism-free submission, Meet even the most urgent deadlines, Provide our services to you at the most competitive rates in the market, Give you free revisions until you meet your desired grades and Provide you with 24/7 customer support service via calls or live chats.