Organization Culture

Merger and acquisition (M&A) is renowned for the challenges of integrating organizational resources and processes, often referred to as organizational fit. Cultural incompatibility is recognized as one of the main reasons why organizations fail to meet their preintegration objectives. In this chapter, I consider the relationship between the strength of an organization’s culture and the challenges of aligning its espoused values (which provide a common direction and guidance for employee behavior), and the enacted values of its members. The alignment of personal and organizational values means an experience of culture congruence and shared identity for the employees of both merging organizations. I discuss the importance of symbolic communication systems that are used to effectively transmit values, such as the practice of organizational rites and rituals, and the challenges imposed by introducing change that interferes with their deliverance. Often accompanied by forms of ceremonial enactment, these symbolic practices offer a method of expressing meaning to the organization’s internal and external environments. I discuss the implications for staff at the premerger management college where shared meaning and ritualization of values were attached to brand identity, social interaction, and the networking ethos. This formed a common bond between the employees and their organization that was of primary importance to the individual and was to form a barrier toward the transference of their identification to the newly-merged entity. I then go on to consider the significance of impact on social structure and further consideration of outcomes for organization behavior.