Question
Respond to: A primary concern as an ethical leader during all M&A events, but particularly with ones that involve two well-established companies, is the concern
Respond to:
A primary concern as an ethical leader during all M&A events, but particularly with ones that involve two well-established companies, is the concern of a culture combination. In this scenario, Microsoft apparently was allowing Nuance to continue operating in its current capacity, maintaining current leadership teams (Choi, 2022). However, there is an evitable meeting of the cultures and organizational policies that will have been discussed, and compromise may have to be achieved to maintain the existing Nuance staff and leadership teams. Since both organizations are well-established, some employees may have been excited by the fact of joining forces with an industry leader, such as Microsoft; however, some may have also been concerned about the changes that may be pushed on them, especially considering the size difference between the two organizations (Microsoft at 200,000+ and Nuance at 6,000+).
Additionally, there is effectively a guarantee of position overlap, which Microsoft may have been interested in minimizing to maintain profitability of both companies. This is especially in true, in retrospect, as Microsoft recently laid off employees from Nuance barely two years later (Pressman, 2023). With that said, an additional concern would be if post-M&A, the organization can maintain position overlap, and what options are available to those employees that might be in an overlap position (especially administration, such as human resources, finance, etc.). If overlap employees can be transferred or offered a replacement, position, that is most ideal due to the perceived mutual obligation of best interests.
As a management professional, I would investigate the staffing, risk, and financial perspectives of the merge and acquisition. For example, what will happen to staff levels, work locations, or if there will be a substantial change in compensation systems for staff. Additionally, in identifying areas of additional risk or liability that may be taken on, how that could be mitigated or ensure that there is a level of additional protection.
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