Presented by Sandy Rogan
and JoAnn Pavone
ACCULTURATION
Acculturation describes the
process of contract, conflict
and adaptation as a result of
combining cultures
WHAT CORE COMPETENCIES ARE
NEEDED TO ACHIEVE
ACCULTURATION?
 Respect
 Listening/ Understanding
 Compromise/Tolerance
 Communication
 Education
WHAT ARE THE BEST METHODS
TO USE TO COMMUNICATE
CHANGE?
Roundtable discussions
Group meetings
On-on-one meetings
Intranet updates
Written communication
HOW DO YOU BEST CREATE A
CULTURE WITH OPEN
COMMUNICATION?
Ask questions
Solicit opinions
Form employee committees
Transparency from management
Develop an avenue for employee feedback
WHAT ARE THE MOST
CHALLENGING PEOPLE ISSUES
IN M&A’S?
Fear
Anger
Resistance to change
Confusion/ Uncertainty
Uneducated
HOW IS CONFLICT BEST
MANAGED IN ACCULTURATION?
 Compromise
 Negotiation
 Listening/ Understanding
 Flexibility/ Accommodations
 Education/ Teaching
(Nahavandi & Malekzadeh, 1988)
INTEGRATION
• Triggered when members of the acquired firm want to preserve
their own culture and identity and remain autonomous and
independent
• Does not involve loss of cultural identity to either company
• Acquired company’s employees try to maintain many of the
beliefs, cultural elements and systems that make them unique,
and are willing to be integrated into the acquirer’s structure
ASSIMILATION
• One group willingly adopts the identity and culture of the
other
• Acquired employees relinquish their culture and practices and
adopt the culture of the acquirer
Following the merger- structural, cultural and behavioral
assimilation will occur
SEPARATION
• Attempting to preserve one’s 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 independently
DECULTURATION
• Involves 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
Degree of Multiculturalism
INTEGRATION
ASSIMILATION
SEPARATION
DECULTURATION
Degree of Relatedness
of Firms
How much do members of the acquired firm
value preservation of their own culture?
INTEGRATION
ASSIMILATION
SEPARATION
DECULTURATION
Perception of the
attractiveness of
the acquirer
POINTS TO REMEMBER!
Bupa Australia successfully acquired the Medical Benefits Fund Group in 2008
Create 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 organization
POINTS TO REMEMBER!
3 out of 4 M&A’s fail to achieve the anticipated strategic and financial objectives
The failure of M&A’s 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!
POINTS TO REMEMBER!
We hope you enjoyed the
presentation