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Merging Organizational Culture

Leadership and team building have been viewed as two entirely different concepts. However, they share one common element - vision. Kouzes and Posner (2003) wrote that: "Visions are about hopes, dreams, and aspirations. They're about our strong desire to achieve something great. . . . . Visions necessarily stretch us to imagine exciting possibilities, breakthrough technologies, or revolutionary social change" (p. 125). One of the largest problems with team building and leadership is conflict in the workplace and environment. In this question, you are to consider the role and function of leadership when two major organizations are merged together into a new entity. For example, please consider the impact of a merger between Chrysler and Fiat to take place next month. In this question, you are to examine the leadership styles and roles of management as they address the merging of two different organizational cultures, as well as their different ways of conducting business. You should review the current literature on these companies, as well as economic, cultural, and managerial perspectives of the two entities as they proceed with the merging of their companies to form a new competitor in the auto industry. Finally, please examine the issue of team building and how this could help or hinder the merger activities. You will need to include in-text citations and a references list for external references used in supporting your points for this question. You should have no fewer than 7 references for your response to this particular question.

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When two organizations are merging together to form a new entity, numerous challenges and issues are faced by the leadership in the organization that needs to be handled in an effective and sensitive manner to ensure the success of the merger. One of the most important role of leadership is to minimize the conflict that can arise between the employees of erstwhile independent entities by bridging the gap in terms of working styles and practices, corporate culture, vision, goals and objectives. In order to make a merger successful, one of the foremost tasks for leadership is to ensure that the employees in the merged entity developed shared goals, objectives, vision and collaborate/coordinate with each other in an effective and efficient manner. The employees of individual entities need to bridge their differences in culture, working style and practices and resolve their differences quickly to develop a shared vision, mission and philosophy in the merged entity. Effective leadership ensures that such differences are handled efficiently, conflicts are resolved in a constructive manner and shared goals, objectives and mission/vision is established as quickly as possible. In the absence of these elements, the potential or desired benefits of the merger such as synergies will not be obtained and merger will become a failure.

Let us take the case of FIAT and Chrysler. These are two distinct organizations of large size and come from two distinct nations with huge differences in culture, customs, working styles and even management approach. Italians at FIAT come from a relationship oriented culture where relationships dominate tasks and are pre-requisite for the accomplishment of a transaction whereas Americans at Chrysler are from transactional culture that puts forth more ...