One from Two: Facilitating an Organizational Merger

Abstract

Applied behavioral scientists spend most of their consulting time with single groups or organizations dealing with matters of communications, problem solving, organizational structure, interpersonal relations, and so forth. This paper focuses on the problems which develop when two organizations are joined to create one functioning unit. There is a small but growing body of literature' that is concerned with merging organizations. Although the major emphasis of what is written is on financial matters, Kitching (1967) focuses on matters of management and organization, albeit not in great detail. His data indicated that in 8i per cent of the merger "failures" reported, reporting relationships were unclear and there was a tendency to change them often. He also suggests the necessity of having competent "managers of change" and of setting up unambiguous reporting relationships in the newly formed organizational structure. The financial and economic components of mergers are part of a total mix of problems that includes such things as expectations about norm development, role changes, leadership style, decision-making processes, and goal orientation. It is with these factors that this paper is concerned. The format is that of a case study of a merger situation in which the writers were involved.