《MANAGING ORGANISATIONAL BEHABIOURThe Analysis of AOL & Time Warner merger》由会员分享，可在线阅读，更多相关《MANAGING ORGANISATIONAL BEHABIOURThe Analysis of AOL & Time Warner merger（11页珍藏版）》请在金锄头文库上搜索。
1、MANAGING ORGANISATIONAL BEHABIOURThe Analysis of AOL & Time Warner mergerThe University of Queensland 【Executive summaryWith】the massive job loss in the intervening year of the newly merged company and being desperation on falling stock prize. More important， as a frequent top manager turnover and a
2、 continuing dramatic capital and shareholder value loss （Klein，2003）. Finally， in December 2009， Time Warner spin-off AOL entirely （Time Warner， 2009） ， the mega-merge between Time Warner and AOL announced their failure. To counter this severe situation， the AOL Time Warner indeed took a lot of meas
3、ures， such as shipped off its co-chief operating officer and reduced its valuable assets （Peers & Angwin， 2003）. However， with the manifestation of continuing and irretrievable loss， the fortune of the merger was doomed to end. As the universal statement for the main reason of this historic catastro
4、phe， the merger was due to synergistic failure （Arango， 2010） ， which mainly due to inappropriate leadership approaches and lack of value congruence. The inappropriate leadership approaches can be classified into two categories- competencies perspective of leadership and contingency perspective of l
5、eadership. The value incongruence can be understanded in terms of organisational conflicts. This report will primarily focus on the fundamental organisational contributions that how the executives of this newly merged company moving forward in a different direction and the culture conflicts within t
6、wo firms result in this unprecedented stumble. 【Key words】merger；organisational behaviour；organisational culture；leadership1.Identification of leading causes of merger failure 1.1 Inappropriate leadership approaches 1.1.1Lack of competencies perspective of leadership As the definition of leadership
7、competencies， that is the abilities， skills， knowledge， intelligence and personal traits that a leader required to lead prominent performance across their organisation （McShane， Travaglione & Olekalns，2012）. Precisely， according to Simonet and Tett （2013） described the core competencies include the
8、high level of extroverted and conscientious personal characteristics， clear self-concept， high need for achievement， integrated words and actions， leadership motivation， substantial business knowledge， cognitive intelligence and emotional intelligence. Similarly， respect to AOL & Time Warner case， w
9、ithin the rapid changing business arena， to actually adapt the challenging environment， fulfill the obligation of guide right direction and make good decisions to achieve common goals. It is imperative to the top executives notice which competencies they have to obtain （Gentry， & Sparks， 2012）. Unfo
10、rtunately， the AOL & Time Warner top managers obviously did not aware of the skills that they request can lead successful merger. Especially， regarding personality and integrity. Poor personality As many scholars indicated， the personality of a CEO can be a vital predictor of corporation success （Ka
11、tz & Kahn， 1978； Colbert， Barrick & Bradley， 2014）. Moreover， as the different personalities perceive things differently， it can enormously influence on firm strategy， firm decision and business direction （Hambrick， 2007）. Also， as McShane， Travaglione and Olekalns （2012） mentioned a real leadership
12、 personality always scored on high extroversion and high conscientiousness. However， when it comes to AOL & Time Warner case， according to Klein （2003） ， not too long after the merger， Levin isolated Case and further he made decisions without consideration of Case. Overtly， it adequately showed the
13、poor leadership personality of Levin； he made a decision without discreetness. No surprisingly， his unconscientiousness exacerbated the server situation. Poor integrity Except imprudent personality trait， the absence of integrity also showed by the executives of AOL & Time Warner-they made to much p
14、romise to the Wall Street （Klein， 2003） ， even though that was not achievable at that circumstance. As many scholars indicated that integrity can be seen as a comprehension of core value and ethics （Goldman Schuyler，2010； McShane， Travaglione & Olekalns， 2012）. What is more important is that as McCa
15、nn& Holt （2013） asserted that leadership integrity as a basic contribution of organisational success， it requires a leader keeping promise， trustworthiness and consistency with words and actions. However， obviously， the executives did not show the consistency between their promise and effort. 1.1.2
16、Lack of contingency leadership perception The scholar described the contingency theory of leadership as an effective leadership approach， which the determination of leadership style based on business context， and the theory suggest effective leaders should be both insightful and flexible （Tannenbaum & Schmidt， 2008）. Thus， primarily to diagnose the particular situation and accordingly match their leadership style， it requires leaders have high emotional intellige
