Merger Transition
...d that these changes are in their best interest. Leadership behaviors such as directive and achievement-oriented described by the PGT may cause employee empowerment issues during the merger/acquisition. Directive leadership encompasses assigning responsibilities, setting expectations, and giving specific guidance. Consequently, the freedom of employees deciding their own fate with the company, action plans, and directives is taken away. Achievement-oriented leadership sets the challenge of the goals, further depriving employees of the freedom to determine their own challenges. These leadership behaviors prohibit the employees¹ ability to take ownership of their responsibilities to influence their destiny during the merger/acquisition. Needs Assessment & Performance Expectations During the acquisition/merger, the group needs reassurance that their job is important. Based on the PGT of leadership, leaders need to be directive and supportive in the acquisition/merger environment. At the highest level, a merger usually has nothing to do with employees directly. Rather, mergers are strategic organizational decisions. Therefore, leaders need to let the group know exactly what is expected of them. The merger usually creates a stressful and ambiguous environment. Directive leadership has been proven to lead to greater satisfaction in such conditions. Supportive leaders are friendly and show concern for the needs of the group. This type of leadership is necessary during the merger process because employees may perceive that their jobs will become less important as a result of the acquisition. Individually, each group member is expected to stay productive during the merger process. The organization and management in particular, is expected to take strategic measures to ensure continuous productivity. The dynamic environment tends to facilitate a lack of interest in normal everyday tasks. As a result, the group can lose motivation. Management’s job is to keep employees productive through sound leadership. Potential Communication Issues There are several communication issues related to the PGT of leadership. A merger brings managers and employees together who have never worked with one another. Managers may not have a clear understanding of ...