Thursday, July 12, 2012

Leadership Communication During a Merger/Acquisition

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Communication serves four major functions with a group or organization control, motivation, emotional expression and information. During a merger/acquisition, communication acts to control employee behavior in several ways. When newly acquired employees are required to follow the corporate policies and guidelines of their new employer, communication is performing a control function. Transformational leaders can motivate employees from both companies by clarifying employee roles during the merger and providing feedback on their performance along the way. Leaders should also develop outlets for employees to display expressions of emotions throughout the process, fulfilling a higher social need to vent frustrations. Finally, leaders must provide ongoing information about the status of the merger/acquisition in order to facilitate the decision-making process that will take place in the lower chain of command (Stephens, 001, p. 06).

Leadership Empowerment During a Merger/Acquisition

With a transformational leader at its helm, an organization has communication taking place in every direction. Unlike other leadership styles that operate on a “need to know” basis, few secrets exist within an organization led by a transformational leader. During a merger or acquisition, it is imperative that employees at all levels of the organization communicate with each other. Only when this interaction is occurring will employees be truly motivated and empowered.

According to leadership consultant Eileen Brown, empowerment is a much more productive way to run an organization. Brown writes in her article, Empowerment, The Key To Exceptional Service

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Employees who are empowered benefit the organization, the customer and themselves. They become an asset. People come to work excited and motivated to complete the tasks at hand within an empowered organization. Although the process of becoming to an empowered organization will take planning and work, the end results for employees and the new organizational structure are worth the effort. (000, p. 1) Brownell, E. (000, August). Empowerment, the key to exceptional service. The American Salesman, 45(8), 0-4.

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