Problem
Bicultural audit identifies cultural relations between companies and determines the cultural clashes and the extent to which it will likely to occur. First, it identifies the cultural differences between the merging companies. It can be done by surveying employees through meeting and determine the differences between the two firms that might cause conflict. It also identifies cultural values and common ground which will be helpful in merging organization. The final stage determines strategies and making action plans to bridge the two organization's cultures. There are four strategies for merging different organizational cultures. These are assimilation, deculturation, integration and separation.
Assimilation: this strategy works perfect when the acquired company has a weak culture and the acquiring company has a strong culture. Therefore, the employees at the acquired company willingly embrace the cultural values of the acquiring organization.
Deculturation: employees usually resist to change when the corporate values are significantly different. Some acquiring company apply a deculturation to impose the new culture. Employee might loss their job if they cannot adopt the new culture.
Integration: this strategy is to combine the best features of the two companies. Though it is slow and risky still it should be considered if the companies have weak cultures or overlapping values.
Separation: it occurs when the merging company agree to remain distinct with minimal exchange of culture or organizational practices. This strategy is appropriate for merging two unrelated industries. However, separation strategy firms usually finds it difficult to keep their hands off the acquiring firm.
These four strategies for merging two companies depends on the environment in which they are being applied to. In some cases. the bicultural audit results in to end merging as thee two cultures are too different to merge effectively.
• Suppose an acquiring company wants to reinforce their culture and business practices to the acquired company and the acquired company has a strong organizational culture. Which strategy or strategies will be appropriate for reinforcing new organizational cultures? why?
• Do you think merging two completely organizational cultures will be beneficial for an organization? why? why not?