What happens to cross-cultural sensitivity in M&A
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Isn’t the lack of organizational cross-cultural sensitivity a major cause of cultural issues surfacing in a merger and preventing a successful cooperation?
Yes, I do think the lack of organizational cross-cultural sensitivity is indeed a significant factor that can lead to cultural issues during a merger, often hindering successful cooperation. When organizations fail to recognize and address cultural differences, it can result in misunderstandings, conflicts, and a lack of cohesion among employees.
There are differences in organizational cultures, such as decision-making styles, communication practices…but also employee resistance because they may resist changes if they feel their cultural norms and values are being overlooked or disrespected. Leader with different cultural background can also face challenges to aligh their management styles.
Basically, without a clear strategy for cultural integration, merging companies may face challenges in creating a unified organizational culture.To achive a successful cooperation we must have a proactive approach, including cultural assessments, effective communication, and involving employees in the integration process.
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