The plan to merge the two insurance companies aims to minimize any cases of behavioral resistance to change within the organizations. The plan will enhance allocation of responsibility to the human resource personnel, as well as the executives involved in the organizational processes. In essence, there will be the need to examine and determine the pay scales, clarify and implement efficient information technology, negotiate with unions, and allocate clients of the two companies the tasks, which they are expected to undertake in the merger process. Ideally, complying with the required ethical standards and legal requirements will be of great vitality (Giessner, Horton, & Humborstad, 2014).
The first step involves forming a transition team. After incorporation of the transition team to undertake the administrative processes in the companies, the payroll department will be required to communicate its requirements to the head of the human resource and the department of corporate tax. Integrating payroll data from the smaller insurance company would facilitate the merger plan. The personnel in the transition team should come from all the organizational levels comprising of the subordinates and the executives to enhance ease of communication. As the team communicates with the employees, they need to ensure honesty and continuity of the information disseminated. Honesty in information dissemination promotes efficient, ethical standards in the organization. A specific helpline can be established for clarifying employee apprehensions. The employees will acquire severance packages, which reduces the cases of negative discussion on the merger process. The company will send e-mail messages to the executives of the acquired company informing them of the need for change. The general insurance technicians and account handlers of the two companies will have to be given four weeks pay (Bena & Li, 2014).
In contrast, the merger company should give the vice presidents of finance and operations a salary of six months. After merging the two companies, the transition team will have to assure the employees about the organizational change that has occurred to avoid any resistance. Assurance will improve the morale of employees and motivates them thereby enhancing productivity. In situations where employees do not understand the processes of an organization, they may be affected by work-related stress as they do not feel accommodated in the system. The rational decision to equip the personnel with adequate skills and make them aware of how to manage stress in the workplace will boost the performance of the merger company (McShane & Von Glinow, 2013).
For the merging insurance company to realize the best standards of operation, the transition team will have to maintain the customers of the merged organization with the personnel responsible for account handling in the company. In the current operational system, the two companies differ in the procedures used in various areas. Additionally, it will be essential to train different personnel from the small company. The personnel include insurance advisors and technicians, as well as the claim investigators. The training programs will equip the employees with adequate information on the procedures undertaken by the insurance company (Wells & Walker, 2016).
Retention of the claim handlers would enhance the provision of expertise hence boosting the stipulated processes. The merger will need to retain not less than two vice presidents and three managerial staff in senior level to promote leadership in the organization. By retaining these persons, the employees will be capable of inculcating the culture of the medium-sized insurance company. Moreover, the organization will conduct weekly meetings for its employees within the first one month. Through the meetings, the company will give the employees the opportunity to analyze the various changes within the organizational spectrum. The meetings will also involve discussing the employee concerns such as changes in the environment of work and the job processes. Two presidents will attend the meetings and provide answers to the questions, which the employees may ask (Ismail & Bebenroth, 2016). On the second month, the meetings will be conducted once after two weeks. The company will reduce any cases of behavioral resistance by following the proposed plan.
Bena, J., & Li, K. (2014). Corporate innovations and mergers and acquisitions. The Journal of Finance, 69(5), 1923-1960.
Giessner, S. R., Horton, K. E., & Humborstad, S. I. W. (2016). Identity management during organizational mergers: Empirical insights and practical advice. Social Issues and Policy Review, 10(1), 47-81.
Ismail, M., & Bebenroth, R. (2016). Organizational justice and organizational identification of millennials in mergers and acquisitions: a conceptual framework. Eur J Soc Sci, 51(4), 397-409.
McShane, S. L., & Von Glinow, M. A. (2013). Organizational behavior: Emerging knowledge, global reality (6th ed.). New York, NY: McGraw-Hill/Irwin.
Wells, J. E., & Walker, N. A. (2016). Organizational change and justice: The impact of transparent and ethical leaders. Journal of Intercollegiate Sport, 9(2), 179-199.
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