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Homework answers / question archive / LO 1
LO 1. Demonstrate a knowledge and understanding of the importance of developing collaborative relationships through development of both individuals and teams in order to achieve organizational goals and objectives (Reflection, Knowledge and Understanding, Application, Analysis) (Organizational culture and performance) Developing collaborative relationships plays a key role in the organisation to reach the target. Specifically in the case of Disney's acquisition of 21st Century Fox, the most important reason is that collaborative working relationships help to avoid the organizational culture clashes that come with mergers, and then improve company performance. Conflict in organization culture is usually inevitable in the process of merging two organisations (Nahavandi and Malekzadeh,1993). Organisational culture includes values and behaviours (Mullins,2010). In this case, Disney and 21st Century Fox employees clearly have different values and different ways of working. According to Andreeva(2018), Disney and 21st Century Fox have extreme conservative and open organisational cultures respectively. Disney is the acquirer and Disney employees will try to force out their organizational culture, while 21st Century Fox employees will try to retain their original culture(Deloitte,2009). when employees form two groups work together with such a philosophy, conflicts will inevitably arise, which will lead to resentment and even departures. These can slow down the pace at which the organisation achieves its goals.As an example, decency is an important part of Disney's organisational culture, and most of their choices are family-friendly subjects. Whereas most of the films produced by 21 World Fox are edgy and adult-oriented. And one of Disney's goals was to take control of Hulu, an adult-oriented channel (Andreeva,2018). The employees of the original 21st Century Fox would be more experienced when carrying out this project. But since this project is controlled by Disney, the integration process must have been a bumpy one. If the organisational culture does not integrate well it will lead to the failure of the Hulu project. Developing collaborative relationships is the basis for promoting a harmonious integration of organizational cultures. Lodorfos and Boateng (2006) claim that developing collaborative relationships especially with one-to-one colleagues are more conducive to organizational culture integration to reduce conflict. Through harmonious communication, employees of both organisations can gain a deeper understanding of each other's culture and thus identify and gradually adapt to each other's behaviour and values. Goldsmith and Clutterbuc (1998) conducted a study of eight successful companies and showed that organizational culture makes an excellent contribution to good organizational performance. Ashkanasy and Jackson (2001) also suggested that organisational culture is a key factor in achieving organisational goals and is associated with many key organisational outcomes. In particular, differences in organisational culture in merging companies may have a significant impact on these work outcomes. Another point is that developing collaborative relationships brings individuals and teams closer together and enhances communication between teams, thereby improving organisational performance and achieving organisational goals. For Fox employees in the 21st century, they will be entering a completely different work environment. In this change, they may feel stressed or emotionally upset because they don't know how to get their work done, or they may have difficulty integrating into the organization (Deloitte,2009). This is one of the negative outcomes that can reduce the performance of the organisation (Mullins,2010). And developing cooperative relationships at this point turns these negative results into positive ones. For example, by enhancing communication between colleagues and thus relaxing these employees. In this case, employees will quickly find their social identity in the organisation. The employees will then be more productive and the overall performance will increase.
Andreeva, N.(2018).Disney-Fox TV Exec Structure: Big Titles Galore, Studio Merger Put Off Amid Challenges Blending Corporate Cultures.Available at? https://deadline.com/2018/10/disney-fox-deal-tv-executives-analysis-culture-clash-1202473873/
Ashkanasy, N. M. & Jackson, C. R.A. (2001). Organizational Culture and Climate. London:Sage Publications
Deloitte.(2009).Cultural issues in mergers and acquisitions. Available at: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/mergers-acqisitions/us-ma-consulting-cultural-issues-in-ma-010710.pdf
Goldsmith, W. and Clutterbuck, D.(1998). The Winning Streak. Mark II, Orion Business Books. London:Orion Pub Co
Nahavandi A. & Malekzadeh M. (1993). Organizational culture in the management of mergers. Quorum Books, Westport
Lodorfos, G. & Boateng, A. (2006). The role of culture in the merger and acquisition process. Evidence from the European chemical industry. Management Decision, 44, 1405-1421
Mullins,L.J.(2010)Management & Organisational Behaviour. Ninth edition. Edinburgh: Pearson Education Limited.
