In a recent deal proposed by CEOs from AT&T and T-Mobile there could be a possible merger between these two companies. The fact that there are currently two separate CEOs that will merge into one organization, could present multiple problems for the new company. Before we continue to exam this issue at hand, it is critical to understand that this deal is awaiting approval by Federal Communications Commission (FCC). Two authors from The Wall Street Journal, Ante and Schatz explain in detail some of the complications this deal could be faced with (Ante & Schatz, 2011) . The basis of this post is not to examine every possible barrier these two companies could face. This post’s purpose is to examine leadership barriers that may arise from this merger/acquisition.
As discussed in class the complexity leadership theory proposes an idea that “when organizations move away from stability and into a “region of complexity”, adaptive tensions give rise to emergent self-organizations.” This definition and theory is not a simplistic model but it does provide some important indications about how two companies merging into one may respond to change. We can assume that AT&T and T-Mobile are two independent organizations prior to this merger however, after merging the organizational structure may change in a dynamic manner. This will put pressure on the top leaders from both companies so that the newly formed organization can remain profitable. If the leaders from T-Mobile and AT&T fail to guide this change emergent leaders may arise to the challenge. This theory present the idea that when there is any sort of change the expected leaders are not always the “playmakers” that it is the first line support that can actually make the change happen successfully.
So, my question everyone that reads this, if we can examin any major merger within the United States how do you think change actually happens in the leadership change? Is it top down or bottom up? What is the ideal situation baring this deal gets approved by the FCC?
Works Cited
Ante, S. E., & Schatz, A. (2011, March 21). T-Mobile Deal Faces Antitrust Barriers. Retrieved March 21, 2011, from The Wall Street Journal: http://online.wsj.com/article/SB10001424052748703292304576213050651047200.html?mod=WSJ_newsreel_business
Penned by: Drew Alfrey
I believe that it will be very difficult to have two equal leaders. They may have the same job authority, but I believe it is almost impossible to not have a more dominant leader or CEO. One may emerge to be higher up than the other. Also, the employees need to mesh well in order to have a successful merge. The ideal situation for this newly merged company would consist of two compatible leaders. They would need to develop a strong relationship including trust, liking, and respect prior to making any major decisions together. If they do not develop this relationship before hand, I can see them both butting heads in the near future.
ReplyDeletePosted by: Genise Logston