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Asked by Triss Ward on Apr. 17, 2020
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This post was made with the help of the author: Triss Ward is a bachelor in English philology and literature at California University. Triss is currently working as one of the best writers at the https://elitewritings.com/ She also studies feminine psychology
Globalization has a considerable impact on business, especially on the international one. In particular, cultural peculiarities of different nationalities always reflect in the rules existing within the company, attitudes of the employees to one another, to the employers, and to work. In addition, the leadership style that is appropriate for the Asian company is absolutely inappropriate for the American one due to strong differences related to working process and community perception. Therefore, a merge between American Auto and Asian Auto can create a number of difficulties because of the social responsibility, working process, and leadership styles that will need to be culturally adopted.
American Auto is a supplier and developer of vehicle safety products and powertrain components. The company has over 8000 team members. There are some features that are different from those at the Asian company culture, namely quick decision-making, individualized company’s roles, high focus on the end result, spending less time on the establishing a process, taking risks calmly. The company is multicultural; therefore, it witnesses various ways of thinking and taking decisions. Communication with clients by phone or mail is very natural in building business relations. Personal time and family are the priority in this organization, similarly to numerous other American companies.
Asian Auto is one of the premium filter manufacturers and interior systems suppliers. It develops and produces interior powertrain components and filtration. The company has over 5000 team members. In contrast to the American Auto, the company makes conservative decisions, does it slowly and according to their corporate hierarchy. The individual contribution is important to the group, but the result must be positive; otherwise, the contribution is worthless. The company takes risks carefully and only if the team is sure in the positive result. Otherwise, a project will not be undertaken. Generally, this company, as well as other that are organized by Japanese, hires employees with a particularly similar background, so they have a high level of the interaction. Personal meetings are preferable to an e-mail or phone communication. For the employees of this organization, work is the central part of the life.
Thus, there are two companies with different points of view on their businesses, traditions, and ways of leadership. Hence, it is important to realize how to unify their cultures. It is highly recommended to create a checklist of steps how to merge the companies’ cultures.
1. Firstly, it is necessary to identify the diversity of two national cultures and understand, which elements of standardization should be promoted, and integrate the diversity aspects into the strategy, recruitment, partnerships, and global HRM planning. This will help to avoid a number of conflicts and ensure the ability of the workers to communicate effectively.
2. The companies have to merge the similar offices and leave autonomy for the differing departments. This strategy will lead to the low level of potential sources of a conflict.
3. To some extent, the responsibility should be devolved from the company’s center to the local divisions with the aim of better identification of the diversity aspects that are most substantial to them and their operation.
4. It is important to develop the program for the gradual equalization of wages and social packages. This strategy has to provide the financial interest in the merge of the companies among the staff.
5. The companies should focus on the joint working groups. The groups have to be formed in such areas as sales, marketing and PR, production, technical support. The group should include managers and key specialists of the merging companies. By solving common problems together, the staff has a chance to get acquainted with each other, gain the experience of interaction, and study the style of work colleagues. In particular, the work in joint teams might promote a rapprochement of the organizational cultures of both companies.
6. The merged companies should encourage cross-border discussion and interaction as well as focused training. Considering specific kinds of international experience, the managers will ensure the ability to assign tasks to the employees more appropriately. At the same time, such training will contribute to the effective remote servicing and efficient usage of the technologies.
7. With the aim to match the geographic and cultural diversity, the companies’ authorities have to show an example and create a culturally mixed senior management group. In such a way, a good illustration of the unbiased relations will appear together with the possibility to discuss the cultural peculiarities on the managerial level.
8. Also, a celebration and promotion behavior that are in balance with cultural values play a huge role. Because of quite different cultures, it is important to understand and respect values and features of both companies’ employees.
In conclusion, one can see that unification of two different companies is a quite complicated process that demands considerable effort from the workers and leaders. Hence, technological, informational resources, and appropriate HRM approaches would become helpful to ensure the effective work of the merged company.




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