Merger and Unit Integration

Merger and Unit Integration

Opportunities and Challenges

Mergers and unit integration usually introduce various opportunities. One of these opportunities is increased innovativeness (Phillips, 2008). The merger would bring employees from two different units together. These employees will introduce new ways of working and fresh way of thinking. The introduction of diversity into the unit is likely to lead to generation of creative ideas. Mergers and unit integration will also introduce various challenges.

One of these challenges is the emergence of conflicts between functional groups (Phillips, 2008). The merger would bring members of units that were previously autonomous together. Conflict may arise concerning the duties and responsibilities of employees if the manager fails to design an elaborate merger plan. The merger will also lead to conflict interest, values and identities. Employees from the two merging units bring their premerger values, identities and interest into the new unit. Employees from each unit may push to preserve their own values and interest.


The organization will need an elaborate merger plan in order to enable the organization to make optimal use of the opportunities presented by the merger and curtail the unpleasant effects of the merger. The plan seeks to introduce structures, policies and standards for the new unit (Phillips, 2008). This will ensure that there will be no functional conflict once the two units merge. The plan will define the roles and responsibilities of each employee within the new business unit (Smeal, 2012).

This plan also seeks to introduce new relationships among the employees from the merging unit. The plan will focus on activities that will promote cohesion between members of the merging unit. The plan will also seek to retain functional identities of employees from the merging unit. This will help create a strong sense of belonging within the newly created unit.


Phillips K. (2008). “Diversity and Groups”. USA. Emerald Group Publishing
Smeal (2012). “Employee Integration after Merger”. November 17, 2012.

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