Learn about the likely workforce challenges that can arise when companies with very different organizational cultures and approaches merge, as covered on the SHRM-SCP certification exam. Understand the impacts of streamlining operations post-acquisition.
Table of Contents
Question
Which outcome is most likely if a German company with robust policies and work rules acquires a United Kingdom company that has few rules and corporate policies whose strength is a quick response to market opportunities?
Answer
The differing organizational approaches of the companies will be a source of workforce challenge and discord. Post-acquisition strategies generally result in streamlining the workforce and business operations. As a result, workforce challenges and discord are likely to emerge and will need to be addressed.
Explanation
When a German company with robust policies and work rules acquires a United Kingdom company that has few rules and prioritizes quick responses to market opportunities, the differing organizational approaches are likely to cause significant workforce challenges and discord.
Post-acquisition, the acquiring company will typically seek to streamline the workforce and business operations of the acquired company to gain efficiencies and align practices. However, employees of the UK company, who are accustomed to operating with more autonomy and less bureaucracy, may strongly resist the imposition of the German company’s more formal and structured approach.
This clash of organizational cultures can lead to reduced employee morale and engagement, loss of key talent, and difficulties executing the combined company’s strategy. Leadership will need to proactively manage the cultural integration, clearly communicate changes, and find ways to preserve the positive aspects of the acquired company’s entrepreneurial and agile culture within the context of a larger organization. Careful change management, as well as openness to adapting approaches rather than unilaterally imposing the acquirer’s model, will be critical for success.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.